Indonesia Now Export Biomass to Japan and the European Union

            The largest biomass energy provider in Indonesia, PT Internasional Green Energi, opened access to export its products to Japan and the European Union after the company won the Green Gold Label (GGL) Certificate. The certificate indicates that the production of palm kernel shells for biomass products from the company comes from sustainable sources. International Director of Green Energy (IGE) Dikki Akhmar said that the certificate opened up more access for companies to export biomass products to a number of major import countries, such as Japan and the European Union. So far, many countries and regions have given quite stringent requirements to receive biomass products.

            “We have met international standards regarding the need for sustainability certification for products sold or exported. IGE means that it is credible to export to countries that require sustainability certification,” he said in an official statement, Saturday (29/1/2022). The GGL certificate received by IGE is awarded by the Control Union, a certification body based in Zwolle, The Netherlands. GGL standardization is one of the pioneers of sustainable certification schemes for biomass products that have been recognized and applied worldwide.

            The GGL standardization audit process is carried out covering traceability of oil palm plantations from which shell supplies are supplied, energy producer utilities, including energy and carbon data that must be provided in the entire supply chain system.

Jan 29, 2022, DetikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-5920334/top-ri-kini-bisa-ekspor-biomassa-ke-jepang-dan-uni-eropa)

Indonesia Launches G20 Forum on Recovery and Innovation

            Indonesia will raise issues related to economic recovery, innovation, and inclusivity in the Business 20 (B20) forum, which is part of the Group of 20 (G20) agenda, as the country seeks to help facilitate the global exit from the coronavirus pandemic. Shinta Kamdani, who chairs the B20 Indonesia 2022 forum, said that, with those three themes, the discussions would focus on a collaborative recovery and economic growth, on boosting global innovation, and on working toward an inclusive and sustainable future.

            Following the global economic contraction and with millions of people have fallen into poverty due to the pandemic, Indonesia had to facilitate cross-border cooperation not just to revive the economy, but also to improve the global healthcare system, Shinta said. “The world needs to keep spurring collaboration, innovation, and inclusion as it transitions out of the pandemic,” Shinta said during the B20 Indonesia inception meeting on Thursday. “This represents the main foundation for B20 Indonesia this year.”

            Shinta said the B20 Indonesia forum was expected to host about 2.000 members, 37% of whom would be female leaders. Indonesia has formed several task forces to make policy recommendations on issues ranging from energy, sustainability, and climate change to finance, trade, investment, and infrastructure, as well as to digitalization, the future of work and education, integrity and compliance, and to women in business.

Jan 29, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/01/28/indonesia-launches-g20-forum-on-recovery-innovation.html)

IMF Prediction: The Indonesian economy grew 5.6% in 2022

            The International Monetary Fund (IMF) issued the latest forecast on the Indonesian economy this year and in 2023. The IMF estimates that the Indonesian economy is able to grow 5.6% and 6% respectively. The IMF said the Indonesian economy was supported by the still-high price of global commodities, easing of mobility and sustainable policies, and acceleration of vaccination.

            “Indonesia continues to respond with brave, comprehensive, and well-coordinated policy measures to protect the lives and livelihoods of the impact of the covid pandemic,” the IMF wrote. Even though the risk of uncertainty is still high. Among other things, the presence of the latest Covid-19 variant, Omicron was able to reprimand the mobility and economic recovery. Then there is also a risk of changes in developed countries that become more stringent, so they are able to make the financial market shake.

            Even though there is a positive side, the price of commodities is still at a high level and helps state revenue. Especially next year is the last for the deficit of the State Revenue and Expenditure Budget (APBN) above 3% of GDP. In terms of inflation, the IMF estimates to be maintained at a low level. There is an increase but will take place gradually this year.

Jan 26, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20220126105848-4-310528/ramalan-imf-ekonomi-ri-tumbuh-56-pada-2022)

Foxconn, other firms look to enter Indonesia’s EV market

            Taiwan-based companies and local firms have inked an US$8 billion (Rp114 trillion) investment deal to develop Indonesia’s electric vehicle ecosystem. Foxconn, a contract manufacturer known for Apple’s iPhone, and Gogoro, an electric scooter, and battery swap technology company, represent the Taiwan side in the deal, while coal giant Indika Energy and state-owned Indonesia Battery Corporation are the Indonesian side.

These companies will develop a wide range of EV segments, from cars, two-wheelers, and buses to battery production and supporting industries, namely energy storage systems, battery exchange or swap stations, battery recycling as well as research and development. “Under President Joko Widodo’s second term, Indonesia is focusing on encouraging sustainable investment in green energy and industry,” Investment Minister Bahlil Lahadalia said in a statement on Friday, adding that the government would take care of all of the required permits. The deal brings Indonesia – which holds almost a quarter of the global nickel reserves – a step closer to becoming a key player in the battery industry. The government has been defending its nickel ore export ban as it seeks to protect its reserves of the metal to attract EV investment, among other purposes.

State-Owned Enterprises (SOEs) Minister Erick Thohir said in a statement that the investment would help Indonesia achieve its net-zero emissions target by 2060, while also creating a multiplier effect for the benefit of local companies and paving the way for EV technology transfer. Foxconn chairman Liu Young-Way said they wanted to contribute to developing the local EV ecosystem and related energy market in Indonesia. “We hope that by sharing our technology and experience, we can help create more opportunities for local companies in the new energy and EV market,” Young-Way said in a statement on Friday.

The deal marked a new era in Indonesia’s commitment to becoming a global leader in sustainability and supporting an open ecosystem providing Indonesia with better and cleaner transportation options.

Jan 26, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/01/25/foxconn-other-firms-look-to-enter-indonesias-ev-market.html)

The Boramae Fighter Jet Project Moves On!

            Minister of Defense, Prabowo Subianto could smile widely because the continuation of the South Korean-Indonesian KF-21 Boramae fighter jet project is increasingly showing progress. The latest, prototype aircraft numbers 03 and 04 are undergoing development at the Korea Aerospace Industries (KAI) production facility in the city of Sacheon. This fighter jet has a tandem-seat configuration, meaning that the rear seat is occupied by the navigator. This aircraft can be useful for combat training or reconnaissance.

            One of the visible improvements is that the fins of the two prototypes have been colored. Aircraft 03 gets a touch of blue dominant color with white and red designs, also written KF-21 003. Meanwhile, aircraft 04 has a touch of yellow domination with additional white and black stripes and written KF-21 004.

            South Korean authorities have not provided further statements regarding the latest developments of the fighter jet. However, reported by the Korea Joong Ang Daily, the KF-21 fighter jet project called KF-X (Korean Fighter eXperimental) and IF-X in Indonesia is said to be the most expensive military project in Korean history, with a price tag of around 8.5 trillion. won for development only.

            Indonesia plans to produce 48 KF-21 jets locally after receiving one prototype and technical data. During a state visit to Korea in September 2018, President Joko Widodo asked South Korean President Moon Jae-in to reduce 5% of payment obligations. Initially, Indonesia was required to pay 20% but there was a demand that it fell to 15%.    

Through renegotiations since October 2018, the two countries narrowed their differences over Indonesia’s current 20 percent contribution ratio, agreeing on payments in several other forms. However, according to the details of the renegotiated cost-sharing agreement announced by the Korean Defense Acquisition Program Administration (DAPA) last November 2021, the two countries decided to maintain a 20% cost-sharing ratio for Indonesia and a payment schedule from 2016 to 2026.

Jan 24, 2022, CNBC Indonesia

(https://www.thejakartapost.com/world/2022/01/25/indonesia-to-take-over-airspace-from-singapore-in-quid-pro-quo-deal.html)

Jokowi Has Inaugurated, Ready to Use LPG Substitutes

            President Joko Widodo on (24/01/2022), inaugurated the groundbreaking procession for the coal gasification project to become Dimethyl Ether (DME) in the Tanjung Enim Industrial Estate, Muara Enim Regency, South Sumatera. The President said the DME project is very important because it can act as a substitute for Liquefied Petroleum Gas (LPG), so that it can reduce LPG imports which so far have reached 6-7 million tons per year or around 80% of domestic LPG needs.

            “I have said many times about downstream, industrialization. The importance of reducing imports. I ordered this six years ago but thank God, today even though in the long term it has not been able to start, thank God we can start today, groundbreaking the coal downstream project has become DME,” he said.

            Jokowi said that so far, Indonesia’s LPG imports were huge, around Rp80 trillion from the Rp100 trillion needed. On the other hand, the government still provides subsidies of around Rp60-70 trillion per year. “My question is, do we want to continue to do this? Continue to import? The profit is in other countries, which also create job opportunities in other countries, even though we have the raw material, namely coal which is converted into DME,” he said.

            The DME project whose groundbreaking ceremony was inaugurated is a project worth Rp33 trillion which was jointly carried out by PT Bukit Asam Tbk (PTBA), PT Pertamina (Persero), and Air Products & Chemicals Inc (APCI), a petrochemical company from the United States. The investment for the construction of this project is entirely carried out by Air Products, while PTBA will play a role in supplying coal, and Pertamina as the buyer of DME products later.

            The DME project in Tanjung Enim is planned to operate for 20 years. With the utilization of 6 million tons of coal per year, this project can generate 1.4 million DME per year to reduce LPG imports by 1 million tons per year, to improve the trade balance. This DME project can already be operational and will begin to be distributed as early as mid-2024.

Jan 24, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20220124120227-4-309864/sudah-diresmikan-jokowi-siap-siap-ya-bun-pakai-pengganti-lpg)

Market Capitalization of Allo Bank (BBHI) Enters the Top 10!

            Indonesia Composite Index (ICI) (well-known as IDX Composite) managed to record a positive performance last week and also managed to set a new record high in last weekend’s trading. Shares of PT Allo Bank Tbk (BBHI) managed to enter the top 10. According to data from the Indonesia Stock Exchange (IDX), last week, the ICI rose 0.49% point-to-point. In trading on Friday (21/1/2022) last weekend, the ICI closed up 1.5% to 6,726.37. During the week, the value of IDX Composite transactions tended to fall to Rp57.58 trillion. However, foreign investors still recorded a net buy of Rp1.24 trillion in the regular market. Of the total 10 largest market capitalizations (big-cap), as of Friday last weekend, it rose to Rp3,446 trillion, from the previous Rp3,402 trillion.

            Stocks that experienced a decline in market cap at the end of last week were PT Bank Rakyat Indonesia Tbk (BBRI) shares which fell to Rp626 trillion, PT Astra International Tbk (ASII) shares which also fell to Rp227 trillion, and shares in PT Unilever Indonesia Tbk (UNVR) to Rp158 trillion. Meanwhile, of the stocks that experienced an increase in market cap, PT Telkom Indonesia Tbk (TLKM) shares had the largest increase in market cap last week, which increased by Rp. 14 trillion to Rp429 trillion.

            Digital bank PT Allo Bank Tbk (BBHI) shares last weekend managed to occupy the top 10 big-cap stocks of over Rp100 trillion with a market cap of Rp132 trillion. Market capitalization or market cap is the market value of an issuer, the multiplication of the share price with the number of shares outstanding in the market, the greater the market cap value of the issuer, the greater the influence of the movement on the IDX composite movement.

Jan 24, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220124113005-17-309846/joss-market-cap-allo-bank–bbhi–masuk-jajaran-10-besar)

Wow! Singtel and Grab Join Emtek Enter Fama Bank

            Eddy Kusnadi Sariaatmadja’s technology issuer, PT Elang Mahkota Teknologi Tbk (EMTK) announced the entry of a strategic partner to accelerate the company’s digital ecosystem at PT Bank Fama International. Previously, Elang Mahkota Teknologi (EMTK) through its subsidiary, PT Elang Media Visitama (EMV) has acquired the mini bank and is now the largest shareholder with a portion of 99.99% in Fama Bank.

            The two strategic investors who entered were Singtel Alpha Investments, a wholly-owned subsidiary of Singtel Telecommunication Limited, and A5-DB Holdings Pte. Ltd. which is a subsidiary of Grab. Elang Mahkota Teknologi (EMTK) Corporate Secretary Titi Maria Rusli said that Grab and Singtel had taken part, each with 2.35 billion new shares of Fama Bank or equivalent to 16.26% of the company’s issued and paid-up capital which had been increased. After the issuance of new shares was completed, EMV’s ownership in Fama Bank became 62.76%. Then, PT Nusantara Berkat Agung with 4.72%, Grab with 16.26%, and finally Singtel with 16.26%. This acquisition is a concrete step from the Singtel-Grab consortium to develop digital financial services in Indonesia.

            For information, at the end of 2020, the Monetary Authority of Singapore (MAS) said it would grant a fully digital bank license to the Grab-Singtel consortium and the technology giant which is Shopee’s parent company, Sea Group. This is the first and is anticipated in the liberalization of the financial industry. Unlike traditional banks, digital bank players will provide services to retail customers such as account opening, deposits, and debit and credit card issuance. However, digital banks will not be physically present and all banking services will be carried out online. This is different from traditional banks, such as DBS, OCBC, and United Overseas Bank which offer several banking services via the internet or mobile applications. Digital banks can also serve corporate customers.

Jan 21, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220121141839-17-309405/wow-singtel-grab-ikut-emtek-masuk-ke-bank-fama)

Head of Bappenas: The National Capital is named ‘Nusantara’

            Indonesia’s state capital (IKN) will move to East Kalimantan (KalTim). The Minister of National Development Planning (PPN)/Head of Bappenas, Suharso Monoarfa, announced that the center of government is called Nusantara. “Regarding the name of the capital city, I originally wanted to include it at the time of writing the presidential decree but was later detained and I just received confirmation and direct orders from the President on Friday (14/1) and he said the capital city of this country is called Nusantara,” Suharso said.

            Suharso explained the reason behind naming Nusantara as Indonesia’s new state capital in East Kalimantan. “The reason is that Nusantara has been known for a long time and is iconic internationally, it is easy and describes our archipelago, all of us, the Republic of Indonesia, and I think we all agree with the term Nusantara,” he said.

            IKN Nusantara will become a special regional government unit at the provincial level whose territory is the seat of the state capital as stipulated and regulated by law. In the 2022-2024 period, major infrastructure developments such as the Presidential Palace, the DPR/MPR Building, and housing will be carried out. This includes the transfer of civil servants (PNS) of ministries and institutions in the early stages of 500.000. President Joko Widodo plans to celebrate the 79th Independence Day of the Republic of Indonesia in the IKN area on August 17, 2024.

Jan 17, 2022, DetikFinance

(https://finance.detik.com/properti/d-5901387/kepala-bappenas-ibu-kota-negara-namanya-nusantara)

Jokowi Directly Reviewing Mandalika 2022 MotoGP Preparations

            President Joko Widodo visited Lombok, West Nusa Tenggara on Thursday (13/1). One of Jokowi’s agendas there is to directly review the preparations for the 2022 Mandalika MotoGP. Jokowi and First Lady Iriana departed from Jakarta at around 07.00 WIB. They used the Indonesia-1 Presidential Aircraft from the Halim Perdanakusuma Air Force Base.

            “Arrived at Lombok International Airport Zainuddin Abdul Madjid, Central Lombok Regency, President Jokowi is scheduled to review a number of airport facilities that will be used by MotoGP 2022 participants and spectators,” quoted from a written statement by the Presidential Secretariat. After that, Jokowi will visit the Mandalika Special Economic Zone (SEZ), Central Lombok Regency. He will review the readiness of the bypass route and supporting facilities in the area where the 2022 MotoGP will be held.

The former mayor of Solo will also inaugurate the launch of In journey Holding BUMN for Tourism and Support. The event was held at Kuta Mandalika Beach, Central Lombok Regency. This is Jokowi’s second working visit to Mandalika in the last three months. On November 12, 2021, Jokowi visited Mandalika to review the preparations for the Superbike World Championship (WSBK). At that time, Jokowi tested the circuit that would be used in WSBK. He rode a motorbike accompanied by a number of officials, such as PUPR Minister Basuki Hadimuljono and MPR Chairman Bambang Soesatyo.

Dorna CEO: MotoGP Mandalika in Indonesia is Important

            CEO of Dorna Sports, Carmelo Ezpeleta, revealed how important the MotoGP Mandalika 2022 in Indonesia is for the future of Grand Prix racing. Indonesia for the first time since 1997 will hold a MotoGP race. The Mandalika Circuit, Central Lombok, will hold the Mandalika MotoGP race on March 18-20, 2022.

            Ezpeleta at the EFE Forum Sports Business Days event in Spain, Thursday (13/1), revealed how important the Mandalika MotoGP race is in Indonesia. For Ezpeleta, the Southeast Asian region is very important for the MotoGP event, that’s why holding a race in Indonesia is very necessary. “Universality is very important for MotoGP, especially above all, when it is the Southeast Asian region,” said Ezpeleta as quoted by Mundo Deportivo.

            There are a total of 21 races in MotoGP 2022, including the Mandalika MotoGP in Indonesia. Ezpeleta said one of the conditions for a country to be able to hold a MotoGP race is that there is no long quarantine regulation. “The truth is, if they tell us that we have to be quarantined for 14 days, the answer is clear: No, I’m not coming! That’s the limit.” Said Ezpeleta. Currently, the Indonesian government is still implementing quarantine rules for 14 days, to prevent the new variant of Covid-19, Omicron. We’ll just see the regulations related to quarantine rules in the future.

January 13, 2022, CNN Indonesia

(https://www.cnnindonesia.com/nasional/20220113075441-20-745976/jokowi-tinjau-langsung-persiapan-motogp-mandalika-2022)

January 14, 2022, CNN Indonesia

(https://www.cnnindonesia.com/olahraga/20220114114159-156-746592/ceo-dorna-motogp-mandalika-di-indonesia-sangat-penting)