Month: January 2023

Minister of Finance Sri Mulyani Indrawati stated that Indonesia’s economy is stepping on the gas again in 2022. According to her, economic recovery will occur very quickly in 2022 after two years of the COVID-19 pandemic raging throughout the country. Indonesia’s economic growth is experiencing acceleration momentum around the third quarter of 2022. He is confident that economic growth for the full year 2022 which will be announced later this month will be at the level of 5.2-5.3%. All economic indicators grew very well, starting from investment flows, increased commodity exports, to imports to support manufacturing industry production.
“Economic growth has recovered supported by strong momentum in the third quarter, fourth quarter will still be 5%, so that total economic growth in 2022 as stated by the President will be at 5.2-5.3%,” said Sri Mulyani in a virtual press statement after held a plenary meeting on the 2023 state budget, Monday (16/1/2023).
Several business sectors that had plummeted during the pandemic are now stepping on the gas for growth. For example, the transportation sector, which had contracted by up to 15%, has now returned to grow by 21%. There is also the accommodation and food and beverage sector which had contracted by up to 10%, now it has grown at the level of 11.3%.
Regionally all islands and regions in Indonesia, according to Sri Mulyani, have experienced rapid economic recovery in 2022. Sumatra grew 4.71%, Kalimantan grew 5.67%, Sulawesi grew 8.24%, Maluku grew 7.51%, Java grew 5.76%, and Bali and Nusa Tenggara 6.69%. It is this kind of thing that boosts the Indonesian economy to grow rapidly. In fact, Sri Mulyani said that Indonesia’s economy had grown bigger than before the pandemic.
“This is why Indonesia’s GDP level is 6.6% above pre-pandemic, above our achievements in 2019. This is a very good achievement,” said Sri Mulyani.

January 16, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6518414/ekonomi-ri-ngegas-lagi-setelah-pandemi-sri-mulyani-2022-tumbuh-53.)

President Joko Widodo inaugurated the 30.9 kilometer Pekanbaru-Bangkinang toll road. This toll road is part of the Pekanbaru-Padang Trans Sumatra Toll Road network. Jokowi explained that this toll road would spend a budget of up to IDR 4.8 trillion. Starting today, the toll road can be tested in full, having previously opened it functionally during the Christmas and New Year holiday season.
“From Pekanbaru to Bangkinang, we will also inaugurate 30.9 kilometers which cost a budget of IDR 4.8 trillion today. Then, later it will be connected to the Pekanbaru circle, so that Dumai Pekanbaru Bangkinang will be connected.” Jokowi said during the inauguration at the Bangkinang Toll Gate which was broadcast virtually, Wednesday (4/1/2023).
According to him, this toll road will have quite large traffic. Previous experience is that there is already a Pekanbaru-Dumai toll road with quite high traffic, more than 8,000 vehicles per day. So when will this toll road be connected from Pekanbaru to Padang? Jokowi said it seemed that it would still take a long time. “Continue towards Padang, when will it finish? I can’t talk. Because it’s still long,” said Jokowi.
Jokowi hopes that with the Pekanbaru-Bangkinang toll road, the speed of mobility of people, goods and services will improve, thereby increasing the competitiveness of existing products in Riau province. He also hopes that this toll road will be able to grow new economic centers and ultimately open jobs and provide welfare to the community.

January 4, 2023, detikFinance
(https://finance.detik.com/infrastruktur/d-6498277/jokowi-resmikan-tol-pekanbaru-bangkinang-30-km-habiskan-rp-48-t)

Indonesia coal-tycoon Low Tuck Kwong has emerged as the country’s richest individual, coinciding with a boom in his business amid the surge of commodity prices, partly due to geopolitical conflict, energy crisis and supply disruption in many parts of the globe. Low Tuck Kwong has a net worth of US$31 billion as of Dec. 27, according to Forbes’ Real-Time Billionaires rankings, which tracks the daily ups and downs of the world’s richest people.

The same data also show that Low now tops the billionaires ranking, overthrowing R. Budi Hartono and Michael Budi Hartono, who hold $22.4 billion and $21.5 billion in net worth respectively. For many years, each of the Hartono brothers topped the list with their combined tobacco and banking businesses. Low is a controlling shareholders of Indonesia’s third-largest coal miner PT Bayan Resources, also known by the stock ticker of BYAN, with ownership of more than 60 percent of the company’s shares.

According to the company’s profile, BYAN has 12 direct subsidiaries that are engaged in the coal mining and tire industries. In the third quarter this year alone, it booked a IDR 24.8 trillion (US$1.55 billion) of net profit, which saw almost a twofold increase from the same period last year. Low’s wealth is said to have increased significantly partly due to a jump in BYAN share price in the Indonesia Stock Exchange (IDX) that surged by more than sevenfold as of Dec. 27 year-to-date to IDR 22,500 apiece. This December, BYAN saw its market capitalization amount to IDR 745 trillion, becoming the second-largest publicly listed company by market cap, exceeding state-owned lender BRI that previously held the position. In December last year, BYAN’s market cap was only IDR 90 trillion.

Analysts have attributed the significant increase of the share price to soaring coal prices with the commodity in high demand among countries in the northern hemisphere, which were experiencing winter season and facing energy shortages such as natural gas due to war in Ukraine. Furthermore, BYAN’s stock split with 1:10 ratio was said to propel its share price even further.

However, M. Nafan Aji Gusta, from senior investment information at Mirae Asset Securities Indonesia, told Kontan on Sunday that BYAN’s share price would be closely related to the movement of coal price, which might be susceptible to a potential downward trend in commodity price. Next year, Nafan said that the coal price might decline as the world faces recession, while the current high-price trend would likely only stay as long as the winter.

December 27, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/12/27/reigning-tycoon-coal-money-brings-low-tuck-kwong-as-ris-new-richest-person.html)

Construction of the first five-star hotel on Lake Toba, Labersa Kaldera Resort, which is located in The Kaldera, North Sumatra.  The commencement of the construction was marked by the laying of the first stone (groundbreaking).  The groundbreaking was held on Wednesday (21/12) and was attended by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Tourism and Creative Economy Sandiaga Uno, Minister of  National Development Planning/Head of Bappenas Suharso Monoarfa, and PAN-RB Minister Abdullah Azwar Anas. The construction of the first five-star hotel in the Lake Toba super priority destination area is targeted to be completed in July 2024. It is hoped that its presence will become a new tourist attraction in the region.

Sandiaga said the Ministry of Tourism and Creative Economy would form a small team led by the Deputy for Destination and Infrastructure Development of the Ministry of Tourism and Creative Economy, Vincent Jemadu, to monitor the smooth running of the Labersa Kaldera Resort development process. Sandiaga advised that this development be carried out according to good planning and an adequate number of workers.  That way the construction of the resort can be completed quickly.  The presence of Labersa Kaldera Resort is believed to be able to increase the number of visits by domestic and foreign tourists to the Lake Toba area as well as open the widest possible employment opportunities for the surrounding community.

“This will later become a world-class resort and waterpark on Lake Toba. I am very confident that the target of creating 4.4 million jobs in 2024 can be achieved,” he said.

December 22, 2022, detikFinance

(https://finance.detik.com/properti/d-6474763/hotel-bintang-lima-pertama-di-danau-toba-dibangun-target-rampung-2024)

President Joko Widodo  announced that he will ban the export of bauxite ore in June 2023. The government will also encourage its downstream. “Starting June 2023, the government will impose a ban on bauxite ore exports and encourage the domestic bauxite processing and refining industry,” Jokowi said in a video on the Presidential Secretariat’s YouTube, Wednesday (21/12/2022).

Jokowi continued, downstream bauxite is expected to boost state revenue to IDR 62 trillion.  The government will also continue to carry out domestic downstreaming for the welfare of the people. “We estimate the industrialization of bauxite in the country will increase state revenue from IDR 21 trillion to around IDR 62 trillion. The government will continue to consistently carry out domestic downstreaming so that added value is enjoyed domestically for the progress and welfare of the people,” said Jokowi.

At this press conference, Jokowi was accompanied by the Coordinating Minister for the Economy Airlangga Hartarto and the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.

No Wonder Jokowi Stopped Exports, Indonesia’s 6th Largest Bauxite in the World!

Indonesia’s President Joko Widodo officially banned export activities of Indonesia’s ‘treasures’ which are among the six largest in the world.  The treasure is bauxite, which is prohibited from being exported starting June 2023. The cessation of exports of bauxite ore ‘treasures’ abroad has actually been implemented in Law Number 3 of 2020 concerning Mineral and Coal Mining (Minerba).

In the Decree of the Minister of Energy and Mineral Resources (Kepmen ESDM) Number 301.K/MB.01/MEM.B/2022 concerning the National Mineral and Coal Management Plan for 2022 – 2027 it states: That the bauxite commodity is ranked 6th in the world or equivalent to 4% of world reserves.  It is recorded that total bauxite resources reach 6.6 billion tons of ore and 1.1 billion tons of metal, with reserves of 3.2 billion tons of ore and 520 million tons of metal.

In fact, this bauxite ‘treasure’ also has areas that have not been explored or greenfields. As for the power of the Minerba storefront, including the bauxite greenfield area in the Riau Islands Province and West Kalimantan (West Kalimantan).

December 21, 2022, detikFinance

(https://finance.detik.com/energi/d-6473118/jokowi-setop-ekspor-bauksit-juni-2023)

December 23, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20221223142214-4-399612/pantas-ekspornya-disetop-jokowi-bauskit-ri-terbesar-6-dunia)

The Coordinating Minister for the Economy Airlangga Hartarto said the Environmental Fund Management Agency (BPDLH) had pocketed IDR 14.52 trillion in funds. The funds will be used to manage the environment and waste management.

“The existing funds reach US$968.6 million or IDR 14.52 trillion. Those are sourced from the Forestry Reforestation Fund, the Global Environmental Facility, from the World Bank, the Ford Foundation, and so on,” he said at the 2009 National Environmental Fund Management Working Meeting.  2022, Wednesday (21/12/2022).

Airlangga explained that since 2018 Indonesia has established an Environmental Fund Management Agency (BPDLH), whose function is to fund activities that focus on sectors such as forestry, energy, mineral resources, forestry, carbon trading, environmental services.

“Waste or waste industry, transportation, agriculture, marine, fisheries,” continued Airlangga.

These funds can be used by various parties in the government, Ministries/Institutions.  This is in accordance with President Joko Widodo’s directives (Jokowi). In Airlangga’s presentation it was written that environmental management had been discussed at the BPDLH National Work Meeting which was held December 21-22, 2022. There were three discussions at the meeting.

The first is the dissemination of global and national commitments in environmental protection and management, including climate change control and the role of local governments in supporting the achievement of these commitments.  The second is the coordination mechanism and working relationship between the central government and regional governments in managing environmental funds.  The third is the identification of the potential for cooperation between the government and local governments in mobilizing global and national funding through the BPDLH vehicle.

Airlangga asked for Jokowi’s direction so that this BPDLH should focus on managing waste or garbage in the regions.  Second, the development of mangrove plants.

“Earlier in the initial conversation, the President asked to focus on waste or waste management areas, and secondly for the center for the development of mangrove plants. That was the direction of the President,” he concluded.

December 21, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6473878/atasi-masalah-sampah-ri-gelontorkan-dana -rp-145-t.)