Month: October 2022

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The First Health and Tourism SEZ in Indonesia is Being Built in Bali

PT Aviasi Wisata Indonesia (Persero), known as Injourney, through its subsidiary PT Hotel Indonesia Natour (HIN), in collaboration with PT Pertamina Bina Medika-Indonesia Healthcare Corporation (IHC) is building the first Special Economic Zone (SEZ) for Health and Tourism in Indonesia. Indonesia, located in Sanur, Bali.
The government’s decision to build the Sanur SEZ that integrates the health sector with the tourism sector is in line with the focus of the G20 Presidency of Indonesia, namely inclusive health services, digital-based economic transformation, and the transition to sustainable energy. Bali was chosen as the location of the Health and Tourism SEZ to provide opportunities for patients to get world-class health services while taking advantage of the beauty of Bali as a tourist choice. The island of Bali has great potential to become the center of medical tourism in Southeast Asia.
As the first SEZ in Indonesia that combines the health and tourism sectors, the government hopes that the Sanur SEZ can contribute to national economic growth. The Sanur SEZ is also encouraged to become a new investment location, as well as to absorb workers. It is expected that after fully operating, the Sanur SEZ can absorb around 43 thousand workers. By 2045, the Sanur SEZ is expected to be able to increase its total foreign exchange earnings of up to US$ 1.28 billion.
The development of the Sanur SEZ is projected to be able to absorb around 4% to 8% of Indonesian people who seek treatment abroad. Thus, it is expected that by 2030, the number of patients seeking treatment at the Sanur SEZ will reach 123,000 to 240,000 people. Data shows that the Indonesian population is a major contributor to medical tourism in the region with more than 2 million citizens traveling abroad in 2019 for health services worth US$ 6 billion.
Minister of SOEs, Erick Thohir believes the development of the Sanur Health and Tourism SEZ will boost the economy both nationally and locally. “The potential is big enough so that it can become a priority to revive tourism activities in Bali,” Erick said in a written statement, Saturday (15/10/2022).

October 15, 2022, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6350190/kek-kesehatan–pariwisata-pertama-di-ri-lagi-dibangun-di-bali)

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Indonesia’s Economy Still Strong, Capital Market Still Promising

Danareksa Investment Management’s chief investment officer, Herman Tjahjadi, said that the Indonesian capital market is still promising with foreign investors who have entered the JCI stock market of Rp70 trillion since the beginning of the year. This means that global investors still view positively the Indonesian economy which continues to have the potential to grow.
“Towards entering the new year (the end of the year), it is likely that Indonesia’s GDP growth will still be positive, which is around 5.20%, this is good compared to other countries,” he said at the 2022 CNBC Indonesia Awards ‘The Best Asset Management’, Friday (14/10/2022).
He added, for 2023 it is estimated that Indonesia’s GDP will grow at the level of 5-5.1%. Even though there is an indication of a decline compared to this year, this figure is still very good compared to other countries. When global investors see that Indonesia’s economic growth is still positive, investment interest will not disappear.
Another factor that becomes the criteria for global and domestic investors to enter the country’s capital market, one of which is currency. As is known, the Rupiah depreciated by 7%, but according to him, when compared to other developing country currencies, Indonesia is still considered to be better. Furthermore, another factor is Indonesia’s inflation rate, which according to him is better than other countries, which is only around 5.59%.
“Even the United States is now 8.2%. These three factors (GDP, Currency, and Inflation) are relatively better than other countries,” said Herman.

October 14, 2022, CNBC Indonesia
(https://www.cnbcindonesia.com/market/20221014202250-17-379916/ekonomi-ri-masih-kuat-pasar-modal-masih-menjanjikan

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Minister of Trade, Zulkifli Hasan Says Indonesia
Could Become a Global Smartphone Production Base

Minister of Trade Zulkifli Hasan (Zulhas) released the export of smartphones produced by PT Samsung Electronics Indonesia (PT SEIN) in North Cikarang, Bekasi Regency, West Java. PT SEIN succeeded in exporting 8 million units of smart phones from 2018 to the third quarter of 2022. Seeing this achievement, Zulhas said that Indonesia could become a production base for smart cellular phones to be exported to various countries.
“The release of PT SEIN’s exports is a tangible form of the role of Indonesian business actors who continue to encourage exports to various Indonesian trading partner countries. In addition, this export achievement can certainly encourage Indonesia to become a production base for electronic products, including cellular phones (smartphone),” said Zulhas in a written statement, Thursday (13/10/2022).
Zulhas explained that the electronics sector is a leading sector that is included in the Making Indonesia 4.0 priority. In fact, it is included in the 4th largest export component in Indonesia’s export structure. In the January-July 2022 period, he said, the value of Indonesia’s electronic exports reached US$ 9.43 billion. Or up 18.9% from the same period the previous year, amounting to US$ 7.93 billion.
Meanwhile, in 2021, the value of Indonesia’s electronic exports will reach US$ 14.1 billion with a positive five-year trend (2017-2021) of 6.54%. In the same year, the export value of Indonesian cellular phones (HS 851712) reached US$ 305.8 million.
To note, Making Indonesia 4.0 is a Government program in preparing Indonesia to face the digital industrial era 4.0 which is focused on 7 industrial sectors. Namely, food-beverage, textile, automotive, chemical, electronic, medical devices and pharmaceuticals, which account for 70% of industrial gross domestic product (GDP), 65% of industrial exports, and 60% of Indonesia’s industrial workforce.

October 13, 2022, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6346684/zulhas-sebut-ri-bisa-jadi-basis-produksi-smartphone-global)

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Jokowi Opens Up Why He Is Hard to Build Infrastructure in Indonesia

The government in the era of President Joko Widodo (Jokowi) continues to encourage domestic infrastructure development. Jokowi emphasized that the decision was one of the efforts to increase competitiveness with other countries. Jokowi explained that infrastructure is the most important fundamental foundation to make this happen.
“Without it (infrastructure), we shouldn’t dream of competing with other countries. So, why do we build roads, build ports, build dams massively, because in the future we will compete with other countries,” he said. Jokowi in his speech at Balai Sarbini Jakarta, Tuesday (11/10/2022).
Jokowi said that in the next 5-10 years, the benefits of the development carried out from today will be seen. Although in the beginning there was a bit of sacrifice required. “This is a fundamental thing, although it may hurt at first, but in the next 5-10 years the benefits will be seen from the development that we are doing today,” he said.
Furthermore, Jokowi also discussed the issue of downstream industrialization which is no less important. According to him, the export of goods which are dominated in raw form makes Indonesia lose the opportunity to obtain additional value.
“We have been independent for 77 years, we always export raw materials. We export raw nickel, we export raw copper, we export oil in unprocessed raw form. We export tin, we export CPO palm, but not in semi-products. finished goods or finished goods,” said Jokowi.
Therefore, he said the Indonesian government would gradually stop exports of raw materials. Like the stop nickel exports that have been carried out since 3 years ago.

October 11, 2022, detikFinance
(https://finance.detik.com/infrastruktur/d-6341608/jokowi-buka-bukaan-alasannya-getol-bangun-infrastruktur)

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Indonesia’s Manufacturing PMI at Eight-Month High

Indonesian factories are in good shape as a key forward-looking indicator that has reached the highest level in eight months thanks to strong order books. According to London-based data firm IHS Markit, part of S&P Global, Indonesia’s manufacturing purchasing managers’ index (PMI) rose to 53.7 in September. Up 2 points from August, that is the highest reading since January for the index, which measures factory activity based on a survey of 400 firms.
“Latest survey data was consistent with the strongest improvement in the health of Indonesia’s manufacturing sector since January,” S&P Global economist Laura Denman said in a press statement on Monday.
Indonesia’s manufacturing PMI has been on a steady upward trend since a low point in May, when it tanked to 50.8 points, though still signifying an expansion in activity by remaining above the threshold of 50 points. Indonesia’s performance was slightly above the ASEAN headline PMI of 53.5 points and the second-best among emerging economies of the region, trailing only behind Thailand’s 55.7 points. The Philippines and Vietnam followed Indonesia with 52.9 points and 52.5 points, respectively, while Malaysia’s manufacturing PMI fell into contraction territory with a reading of 49.1 points, down from 50.3 points in August and the lowest figure this year.
In response to the latest manufacturing PMI readings, Coordinating Economic Minister Airlangga Hartarto said average manufacturing utilization had increased since August, which included expansion in the motor-vehicle industry and the food-processing industry. “The expansion reflects a consistent recovery in the manufacturing industry, at least in the last few months, and a domestic economic recovery after the [COVID-19] pandemic,” Airlangga said on Monday.
Industry Minister Agus Gumiwang said that a production increase in September was visible in the electronics industry, which had seen significant laptop production due to government procurement, and in the non-metal mineral industry, with huge demand for cement, ceramics and glass due to public infrastructure and private-property construction. “Production activity played a key role in the higher readings in the index, which are supported by high domestic demand,” Agus said on Monday.

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Indonesia Exports Refrigerators to Cambodia to Japan Rp 5 Trillion

Indonesia exports refrigerators to Cambodia through PT Panasonic Manufacturing Indonesia (PMI). This is related to the import substitution program and activities to increase exports of domestic products.
“I convey my highest appreciation to all ranks of Panasonic Manufacturing Indonesia for their support for the government’s efforts to encourage export activities of the electronics industry,” said Industry Minister Agus Gumiwang in a statement, Monday (26/9/2022).
According to Agus, this effort is a clear proof that the synergy between the government and industry players is going well. “The receipt of this Panasonic refrigerator product proves that the quality of electronic products made by Indonesian children has been recognized by the international market,” he added.
Refrigerator is one product that has a high export value in Indonesia. In 2021, the refrigerator export value will be US$ 374.4 million or Rp5.65 trillion (exchange rate of Rp15,014) of which 40% comes from the contribution of PT PMI which has exported refrigerators to Asian and Middle East markets.
Cambodia is the 8th country for PT PMI in terms of refrigerator export destinations besides Japan, Hong Kong, Malaysia, Myanmar, UAE, Kuwait and Oman. Apart from refrigerators, PT PMI has also exported other electronic products such as audio products, water pumps and washing machines.

September26, 2022, detikFinance
(https://finance.detik.com/industri/d-6312873/ri-ekspor-kulkas-ke-kamboja-hingga-jepang-rp-5-t)

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Deal in Bali, South Korea Ready to Buy Indonesian Cassava Chips for Rp 105 Billion

The cooperation between Indonesia and South Korea resulted in a business agreement worth US$7 million or equivalent to Rp105 billion (exchange rate of Rp15.000). Through this agreement, Indonesia will export several food products to the Ginseng Country. Including sweet potato and cassava chips. The signing of the MoU by the two countries was carried out in Nusa Dua, Badung, Bali, Friday (23/9/2022). Witnessed directly by the Minister of Trade Zulkifli Hasan.
“I welcome the signing of the three MoUs that result in a potential transaction of US$ 7 million. Products that South Korea is interested in are cognac, as well as cassava chips and frozen processed sweet potatoes which are Indonesia’s flagship products,” said Zulkifli Hasan in a written statement, Saturday ( 24/9/2022).
The signing was carried out by three Indonesian business actors and two South Korean business actors. PT Satoria Konjac Industri with With Us Co., LTD signed an MoU for the purchase of cognac products with a potential transaction value of US$ 2 million, PT Indorasa Utama with With Us Co., LTD for cassava chips products with a potential transaction value of US$ 2 million, and PT Seed Origin International and Wellygo Inc for processed sweet potato products (frozen dried sweet potato stick/frozen sweet potato paste) with a potential transaction value of US$ 3 million.
For additional information, the trade value between Indonesia and South Korea for the January-July 2022 period is US$ 14.03 billion. In that period, Indonesia’s exports to South Korea amounted to US$ 7.27 billion and imports US$ 6.77 billion.
Meanwhile, in 2021, the total trade value between the two countries will be US$ 18.41 billion. The value of Indonesia’s exports to South Korea reached US$ 8.9 billion and imports US$ 9.4 billion. South Korea is the 7th home country of foreign direct investment (FDI) for Indonesia. Its investment in 2021 is US$ 1.64 billion with 2,511 projects.

September24, 2022, detikFinance
(https://www.detik.com/bali/bisnis/d-6309728/deal-di-bali-korsel-siap-borong-ubi-keripik-singkong-ri-rp-105-m)

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Indika, Foxconn Sign JV Agreement on EV Factory

Electric vehicle (EV) company PT Mitra Motor Group (MMG), a subsidiary of coalminer PT Indika Energy, created a joint venture (JV) with EV component producer Foxteq Singapore on Sept. 22. According to an information disclosure released on Friday, the JV will be called PT Foxconn Indika Motor (FIM), which is licensed to build EVs with four wheels or more, produce batteries and provide management consulting services.
“MMG’s participation in FIM is the company’s step toward expanding its business activities into the electric vehicle sector, especially four-wheeled electric vehicles, in Indonesia,” Indika Energy corporate secretary Adi Pramono said in the disclosure.
Focusing on manufacturing commercial electric cars and batteries, the JV was followed by an investment of Rp39 billion (US$2.5 million) from MMG, equivalent to 60 percent of the paid-up capital. An affiliation of Hon Hai Technology Group, known as Foxconn, Foxteq Singapore paid in capital of Rp 29 billion, the equivalent of 40 percent of the paid-up capital.
Indika Energy director and group chief investment officer Purbaja Pantja said that the company saw huge potential in EV development in Indonesia. “This collaboration will create a comprehensive electric vehicle ecosystem that aims to support Indonesia in becoming one of the leading electric vehicle and battery ecosystem developers,” Purbaja said.
Foxconn battery strategy head Troy Wu said that this JV showed the firm’s commitment to developing a sustained EV ecosystem in the country. “Indonesia is the largest economy in Southeast Asia and holds the current G20 presidency and the next ASEAN chairmanship, and has committed to an ambitious net-zero emission target,” Wu added.
Previously, another Indika Energy EV manufacturing arm PT Ilectra Motor Group (IMG) launched the indigenous fully electric Alva One Motorcycle, which will be manufactured in a factory in Cikarang, West Java. In order to develop the two-wheeler brand and its supporting ecosystem, IMG raised a total of US$7.5 million in May from Alpha JWC Ventures, Horizon Ventures, equal to 21.4 percent of the company’s shares, while Indika Energy added another $7.5 million.

September23, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/23/indika-foxconn-sign-jv-agreement-on-ev-factory.html?)

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Astra Invests $259m in BJJ to Form Digital Bank

Diversified conglomerate Astra International has completed a transaction to acquire a stake in private lender Bank Jasa Jakarta (BJJ) for Rp 3.88 trillion (US$259 million) with a view to forming its own digital bank. The transaction was done through Astra subsidiary PT Sedaya Multi Investama, also known as Astra Financial, alongside WeLab Sky, a consortium led by Hong Kong-based fintech platform WeLab, with each entity to own 49.56 percent of BJJ.
“BJJ as a digital bank will complement many financial products and services that we could offer to our customers,” Astra financial director in charge Suparno Djasmin said in a statement on Monday.
Astra’s acquisition comes after a wave of new digital banks in the country, like GoTo-backed Bank Jago, CT Corp-backed Allo Bank and Sea Group-backed Sea Bank. Digital banks have gained traction in Indonesia, where their investors look to capitalize on the country’s large market with consumers who are accepting of the fintech industry.
Simon Loong, founder and group CEO of WeLab, said the acquisition would allow the fintech firm to expand its digital bank services beyond Hong Kong. In 2018, WeLab partnered with Astra to form a fintech lending company, PT Astra WeLab Digital Arta.
“Our partnership with Astra will support our strategic focus to increase our cooperation and business with partners in expanding the scale and reach to strengthen our network in pan-Asia fintech platforms,” Simon said in the same statement.

September20, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/20/astra-invests-259m-in-bjj-to-form-digital-bank.html?)

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Jeju Air to Open Direct Manado-South Korea Flight in Tourism Bid

South Korea’s Jeju Air has inked a deal with the North Sulawesi administration to offer direct flights between Manado and South Korea. Jeju Air CEO Kim E-bae and North Sulawesi Governor Olly Dondokambey signed the agreement at the Indonesian ambassador’s residence in Seoul on Friday.
“I’m very grateful because we are sure that our company can help with Korean and Indonesian economic development. We will try our best to open direct flights to Manado, Bali, Lombok, Jakarta and Yogyakarta,” Kim said, noting that such flights were in the pipeline.
Olly said North Sulawesi was well situated for the deal, being only five hours by plane from South Korea, and he expressed hope that the flight route could boost tourism for both North Sulawesi and South Korea.
“What makes North Sulawesi ideal is how relatively close it is to South Korea. North Sulawesi’s location and geostrategy offer benefits for water transportation to and from Bitung Harbor, which is not far from Sam Ratulangi Airport. Manado people love to travel. So, this deal is beneficial to both parties. I hope Mr. Kim and the Busan Authority can come to North Sulawesi in the near future to see other potential projects we can work on together because Manado and South Korea have a lot of similarities. For example, you have a lot of ginseng plants, and liquors too,” said Olly.
Tourism and Creative Economy Minister Sandiaga Uno said the new route could increase international tourists’ awareness of attractions near Manado, particularly Likupang, a government “super priority” tourist destination. “The Tourism and Creative Economy Ministry fully supports the signing of this deal, as it can have a multiplier effect in the future for tourism and the creative economy in North Sulawesi. This route can serve as an opportunity for local creative industry players to showcase quality products and services to South Korean tourists,” Sandiaga said.

September20, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/20/jeju-air-to-open-direct-manado-south-korea-flight-in-tourism-bid.html?)