Month: November 2022

Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan has reaffirmed Indonesia’s commitment to accelerating the energy transition in order to achieve the net-zero emissions target by 2060. Speaking at the BNEF Summit in Nusa Dua, Bali on Saturday, Luhut noted that the target was very likely to be achieved considering Indonesia’s new and renewable energy potential of 437 gigawatts (GW). The government, he continued, was ready to develop the national clean energy potential through state-owned electricity company PT PLN (Persero).

“Mr. Darmawan (PLN President Director) mentioned and reminded me that until 2060, the potential for renewable energy investment is around US$700 billion. This is a big cake, and that’s why I am very confident that Indonesia can accelerate the energy transition as there is so much potential that we can do in this country if we manage it well. You can see that Indonesia is committed to net-zero emissions by 2060 or faster. And again, I believe we can make it happen faster through technology and teamwork, and we are learning,” he said.

With Indonesia’s sizable potential for new and renewable energy, Luhut said this could serve as an opportunity for cooperation among countries around the world to jointly reduce carbon emissions. PLN President Director Darmawan Prasodjo noted that Indonesia’s energy transition must be carried out to guarantee the future of the nation’s children, as it is a value held by PLN in its commitment to the energy transition.

“PLN is fully committed to net-zero emissions. In the past, our main business was providing electricity to customers, but in the future PLN’s main task is to maintain a good environment, with electricity being one of the company’s business products,” Darmawan concluded.

November 15, 2022, The Jakarta Post

(https://www.thejakartapost.com/adv/2022/11/13/indonesia-ready-for-us700-billion-renewable-energy-investment.html.)

Indonesian businessmen and China have signed contracts to purchase crude palm oil (CPO) products and their derivatives. The export value of the signed CPO reached US$ 2.6 billion, equivalent to Rp. 40.3 trillion (exchange rate of Rp. 15,500). The memorandum of understanding on trade cooperation was signed by the China Chamber of Commerce for Import and Export for Foodstuffs, Native Produce and Animal By-Products (CFNA) with four Associations for Indonesian palm oil products and their derivatives.

 Minister of Trade Zulkifli Hasan alias Zulhas previously said that the agenda for signing a trade contract at the Ministry of Trade signed the purchase of 1 million tons of CPO products. Where the figure was previously planned during President Joko Widodo’s meeting with Chinese President Xi Jinping. However, not long ago the Ministry of Trade reported that the trade agreement that had been made suppressed the purchase contract of 2.5 million tons with a transaction value of US$ 2.6 billion. The transaction was carried out in the signing of 16 trade contracts by 9 Indonesian business actors with 13 Chinese buyers assisted by the China Chamber of Commerce for Import and Export for Foodstuffs, Native Produce and Animal By-Products (CFNA). Zulhas also expressed a request to make it easier for other Indonesian products to enter the Chinese market. In this way, it is hoped that the cooperation between the two countries will continue to be profitable.

For information, in January to August 2022 exports of Indonesian palm oil products and their derivatives to China reached US$ 3.6 billion. Based on data from the Central Statistics Agency processed by the Ministry of Trade, the export volume of palm oil products and their derivatives from Indonesia to China in 2021 will reach 6.6 million tons. That value increased 14.17% from the previous year. In 2021, the export value of Indonesian palm oil products to China reached US$ 6.06 billion, an increase of 82.87% from the previous year. This increase was due to the increase in world CPO commodity prices in the last year.

On the same occasion, Deputy Minister and Deputy Minister for International Trade of China Wang Shouwen, said he acknowledged that Indonesia had been a source of palm oil for China for 7 consecutive years. His party is committed to continuing to improve bilateral relations, both for CPO imports and others.

November 11, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6400751/china-borong-cpo-ri-nilainya-rp-40-t)

The Energy and Mineral Resources Ministry has extended its contract to supply gas to Singapore for five years from the initial expiry date of 2023. Energy and Mineral Resources Minister Arifin Tasrif told reporters that the government would continue supplying gas to the city-state until 2028, having considered domestic supply and demand.  He added that the volume exported under the extended contract would be lower than before to prioritize domestic demand.

“[Indonesia] still has [adequate] gas reserves, so we’re extending [gas exports to Singapore] for the next five years. We need to help each other,” he said on Friday.

Upstream Oil and Gas Regulatory Task Force (SKK Migas) head Dwi Soetjipto explained that declining gas export volumes were due to increased demand from the domestic fertilizer industry.  He estimated a 30 to 40 percent cut from the previous gas contract.

“We predict that [gas] prices will increase due to high demand,” Dwi said, also on Friday. He added that the government had yet to sign the five-year contract extension but expected it to be signed in November.

The energy minister announced in 2020 a plan to stop supplying gas to the city-state in the hope of creating added value for the nation’s natural gas and reducing its trade balance deficit.

Indonesia’s gas exports to Singapore come from several sources, including from the Corridor Block operated by ConocoPhillips (Grissik) Ltd., Repsol’s Talisman Corridor Ltd. and Pertamina upstream oil sector arm Pertamina Hulu Energi Corridor, which has a supply of 300 million standard cubic feet per day (mmscfd). Singapore’s natural gas consumption in 2020 was approximately 1.22 billion cubic feet per day (bcfd), according to a 2021 British Petroleum (BP) statistical review.

October 28, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/10/28/indonesia-extends-gas-exports-to-singapore-by-five-years.html?)

The government is boosting exports to various countries. Central and Eastern Europe can be a potential market for Indonesian export products, with Poland being the main entry point. Poland has great potential to channel export products from Indonesia to the European Union, Western and Southern Europe, and Central Asia. Throughout 2021, Indonesia’s export value will reach US$ 1.78 billion to the region, with Poland being the highest export destination.

This data is contained in the book Road to Poland which was launched at the Indonesia Central and Eastern Europe (INACEE) Business Forum 2022 event on October 19, 2022, with the theme ‘Connecting Businesses’. This forum facilitates the signing of business agreements between Indonesian business actors and partners in several Central and Eastern European countries.

The book Road to Poland reviews the opportunities, developments and projections of the Polish economy amidst the dynamics of global trade developments, including with Indonesia. This book reviews the competitiveness of Indonesia’s leading export products to Poland, including the potential for export development and cooperation or business opportunities that can be increased between the two countries.

“This is a form of adaptation in finding solutions to overcome today’s world challenges, in an effort to increase cooperation and collaboration in the economy, trade, investment and other fields between Indonesia and partner countries, especially in the Central and Eastern Europe region,” said the Head of the Division. Indonesia Eximbank Institute (IEB Institute) LPEI Rini Satriani, written Thursday (27/10/2022).

Poland is Indonesia’s largest export destination for Central and Eastern Europe with a total export value of US$ 654.6 million in 2021, up 48.40% (YoY) and January-August 2022 of US$ 662.30, up 54.13% (YoY). Some Indonesian products that are in demand in Poland include instant noodles, coffee candy, batik, furniture, coffee and palm oil. Entering new markets is a challenge for exporters.

October 27, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6371540/mi-instan-sampai-kopi-asal-ri-terbang-ke-polandia)

Airports Council International (ACI) Asia-Pacific says Indonesia is poised to become one of the fastest-growing markets for the airline industry despite the current global economic slowdown and relatively slow growth in the Asia-Pacific region. ACI director general Stefano Baronci said that, according to an ACI projection, Indonesia would rank fourth in the world in terms of passenger traffic by 2040.

“Indonesia is seen to be in a better position than other countries in the region to see its passenger traffic bounce back to the pre-pandemic levels,” Baronci told on Tuesday.

He said he expected Indonesia to grow much faster than other countries in the region at approximately 11 percent annually up to 2040, given the archipelagic nation’s geography and its economic growth forecast. ACI forecasts indicate that close to 19.7 billion passengers are expected to traverse the world’s airports in 2040, more than double the 9 billion passengers recorded in 2019. The Asia-Pacific region is expected to have approximately 8.9 billion passengers by 2040.

“So, what [does this mean for] Indonesia? [Stakeholders need to] improve predictability and certainty,” he said, adding that every country had its own capacity and level of maturity to find a way to reach that objective.

In Indonesia’s case, he referred to the implementation of the airport collaborative decision-making (ACDM) process currently taking place in Jakarta as a way to coordinate ground operations and air traffic. The ACDM is a process in which the stakeholders of operations, such as airport operators and air traffic controllers share information to improve policies, planning, real-time coordination as well as decisions regarding operations.

October 21, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/10/21/indonesia-to-rank-fourth-for-airline-passengers-in-2040.html?)