Indonesia-Malaysia Explores the Cooperation of the Development of KEK Batam Health

Head of Batam Administration (BP) Muhammad Rudi received a visit to the Consulate General of the Indonesian Consulate General in Johor Sigit Sigit S. Widiyanto who was present to Batam with the Kuala Lumpur Healthcare KPJ delegation. This meeting is a continuation of the discussion on the potential of cooperation in the development of an international health economic area in Sekupang. After being able to explore the potential of cooperation with international hospitals several times such as Dubai and India and experienced a number of obstacles. Now, BP Batam feels optimistic that the possibility of cooperation with KJP Johor Bahru can be seriously followed up.
“Requirements from the government, so that we can develop health is to work together with at least one international hospital brand that occupies the top 10 of the world ranking and hospitals that are the main destination for Indonesian people to seek treatment.” said Rudi in a written statement, Monday (7/31/2023).
According to Rusdi, this visit from Malaysia practically brought good news to his party who was developing international health.
“Of course, from BP Batam is very happy, because we are looking for international partners. And the advantages that we have, KEK can present medical personnel from abroad. So that people do not need to seek treatment abroad. The foreign exchange that has been out, is for our own region.” Said Rudi.
Furthermore, Rudi explained that Batam is a strategic area in Indonesia. Batam’s large potential, has been developed through infrastructure development in all lines ranging from roads, airports to ports.
“We are trying to change the face of Batam City. The next 5 to 10 years, Batam will be a very beautiful city, and more interesting for investment,” he said.
This also received a warm welcome from the Consulate General of Consulate General in Johor Bahru Sigit Sigit S. Widianto and OIC KPJ Healthcare Berhad, PN Norhaizam Mohammad.
“For BP Batam and KJP, both of them see a cooperation opportunity to improve health facilities for the people of Indonesia in Batam. Because we need to revitalize new ideas to increase connectivity so as to create mutual benefits of the two regions,” said Sigit.
He acknowledged Batam had developed rapidly. According to him, the strategic location and facilities offered in this KEK are interesting. Likewise, with KPJ Johor who already has international capabilities. Data shows that one million Indonesians regularly every year seeking treatment at KJP Johor. For Indonesia, Malaysia is still the largest country of health tourism visits compared to other countries. The woman who is also the President of Malaysian Society for Quality in Health, is impressed with Batam.
KPJ Healthcare Berhad is the largest private hospital in Malaysia experienced 42 years until now has opened 29 hospital health facilities in Malaysia, Thailand, Bangladesh, and Australia, including in Jakarta Indonesia.

July 31, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6851587/ri-malaysia-jajaki-kerja-sama-pengembangan-kek-kesehatan-batam)

Indonesia Champion of The 13th WorldSkills ASEAN 2023

Indonesia won the overall champion at The 13th WorldSkills ASEAN in 2023. This achievement was obtained after the Indonesian delegation won 27 medals consisting of 14 gold medals, 8 silver, 3 bronze, and 2 medallions.
“Thank God, the team from Indonesia succeeded in becoming the overall champion of The 13th WorldSkills ASEAN in Singapore,” Deputy Minister of Manpower (Wamenaker) Afriansyah Noor in Singapore, Thursday (7/27/2023) after attending the closing ceremony of the 13th Worldskills Singapore 2023, in written statement Friday (7/28/2023).
Wamenaker expressed his pride for the Indonesian delegation because his achievements had brought the fragrant name of the nation.
“I am very proud of the success achieved by the Indonesian team. This is a prize for President Joko Widodo, Mrs. Minister of Manpower, the Ministry of Manpower, and of course the Indonesian people,” he said.
He hoped that the success achieved in 2023 could be continued at the same event in 2025 which will be held in the Philippines.
“Hopefully in 2025 in the Philippines, we can also win the overall champion again with extraordinary skills and abilities from our children,” he said.

July 28, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6846638/bangga-ri-juara-umum-the-13th-worldskills-asean-2023)

The World’s Largest Glass Company Wants to Build a Factory in Batam IDR 172 Trillion

Minister of Investment/Head of Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed souvenirs from President Joko Widodo to Chengdu, China. One of them is the investment commitment of leading companies in the glass and solar panel industry, Xinyi Group. Bahlil said Xinyi Group was committed to building factories in the Industrial Estate of Rempang, Batam. This factory is predicted to be the largest after China.
“In the future, this company has committed to building its industry in the Batam area, Rempang. This is the number 2 largest factory in the world after China and the number 1 largest factory outside of China,” Bahlil said through the Youtube of the Presidential Secretariat, Friday (28/7 /2023).
The investment commitment was outlined in the signing of the cooperation agreement and a memorandum of understanding (MoU) between Indonesia and Xinyi Group which was also witnessed by Jokowi. This is part of downstreaming the government built from the quartz sand sector and several other raw materials in Indonesia.
“If we have succeeded in building the downstreaming ecosystem of nickel, now we begin to push quartz sand. The output, the product will be carried out almost 95% for exports because the market is foreign markets. This glass factory will also immediately build what is called solar panels , this is also the capacity of export products, “he said.
Bahlil said the total investment of the Xinyi Group was US $ 11.5 billion or IDR 172.5 trillion (exchange rate of IDR 15,000). This is the second development after previously the company invested in the Java Integrated Industrial and Port Estate (JIIPE) area in Gresik US $ 700 million.
“This happened due to the full trust of the investor to the Indonesian government under the government of Mr. Jokowi. US $ 700 million after they checked it turned out that what they felt was very good, and they wanted to develop their business,” Bahlil said.
Investment from the Xinyi Group is estimated to create 35,000 jobs. “And this will collaborate with national entrepreneurs,” he added.

July 28, 2023, detikFinance
(https://finance.detik.com/industri/d-6846762/perusahaan-kaca-terbesar-dunia-mau-bangun-pabrik-di-batam-rp-172-t)

Indonesian Agricultural Exports to China are Worth Trillions

Indonesian President Joko Widodo (Jokowi) Chinese President Xi Jinping held a bilateral meeting in Chengdu, China. The meeting was a series of President Jokowi’s trips to China which will take place on July 27-28, 2023. Foreign Minister Retno Marsudi revealed, President Jokowi’s journey to China was at the invitation of President Xi Jinping and the visit coincided with the 10 years of Indonesia-China Comprehensive Strategic Partnership Partnership. One of the points discussed by the two heads of state is a matter of trade.
Retno said efforts to increase Indonesia’s exports to China continue to be improved. Where China is Indonesia’s largest trading partner. In 2022 the value of Indonesia-China trade reached more than US $ 133 billion, with Indonesia’s position now a surplus. During the meeting, he said, President Jokowi requested more market access in bamboo curtain countries for Indonesian products.
“The president welcomes the signing of the import protocol. Imports in this case are China from Indonesia for porang flour, Tabasheer powder. Also encourages protocol updates and an increase in the import quota of swallow nests, as well as completing the import protocol of Indonesian marine products,” Retno said on Thursday (7/27/2023).
Swallow’s nest itself is one of Indonesia’s leading export commodities in the livestock sector, according to the book “Analysis of Export Commodities 2018-2022) released by the Central Statistics Agency (BPS). In the 2018-2022 period, this commodity has an average role of 86 , 36% of the total exports of the livestock sector. In 2022, the role of this commodity even reached 89.37%, the highest over the past five years. China became the main destination country of Indonesian swallow’s nest exports. In 2022, exports to China reached US $ 387,4 million or equivalent to IDR 5.8 trillion. The amount is equal to 65.56% of the total exports of swallow birds.
In addition to swallow’s nests, there are several Indonesian agricultural, fisheries and forestry products that are in great demand by China. For example, medicinal plants, aromatic and spices, Indonesian exports to China worth US $ 122 million or IDR 1.8 trillion in 2022. Then, China is also the main destination for Indonesian annual fruit exports. In 2022, the value of Indonesian annual fruit exports to China reached US $ 124.3 million or IDR 1.86 trillion.
From the fisheries sector, China is the largest shareholder of Indonesia’s seaweed and other algae exports, which is 84.57% in 2022 or US $ 336.8 million, equivalent to IDR 5.05 trillion. From the fisheries sector, exports of fresh/cold fish caught from Indonesia in 2022 to China reached US $ 3.8 million or IDR 57 billion. Then, the export of rubber latex and the like in 2022 addressed to China with a value of US $ 24.2 million or IDR 363 billion.

July 29, 2023, CNBC Indonesia
(https://www.cnbcindonesia.com/research/20230729154145-128-458377/top-ekspor-pertanian-ri-ke-china-triliunan-ada-sarang-walet)

Pertamina, Petronas Secure Shells’s Masela Stake for $650 M

State-owned oil and gas giant Pertamina and Malaysia’s Petronas have officially acquired Shell’s 35 percent participating interest in the Masela oil and gas block in Maluku, which also includes the Abadi gas project, for US$650 million. The parties signed a sales and purchase agreement on the transaction on Tuesday.
According to a press release published by Shell on the same day, the base consideration for the block’s sale is $325 million in cash along with an additional contingent amount of $325 million to be paid upon the final investment decision (FID) on the Abadi gas project. The transaction took effect on Jan. 1 this year, as per Shell’s statement, and is expected to be completed by October 2023. The conclusion of the deal is subject to certain conditions, including regulatory approval from the Energy and Mineral Resources Ministry.
Pertamina is collaborating in the deal with its Malaysian counterpart Petronas according to a press release published on Tuesday by Pertamina. Pertamina Hulu Energi (PHE), Pertamina’s upstream unit is to manage 20 percent of the block, while Petronas Masela will hold 15 percent, the release adds. The other 65 percent of the block remains under the control of Japanese oil and gas firm Inpex. PHE president director Wiko Migantoro said Pertamina aimed to swiftly capitalize on the energy resources in Masela, as reported by Kontan.
“Our focus is on conducting front-end engineering design immediately, completing the final investment decision and then carrying out construction and going onstream as soon as possible,” Wiko said on Tuesday, as quoted by Kontan.
Pertamina CEO Nicke Widyawati said the acquisition was a strategic move to develop new fields, meet national energy needs, maintain oil and gas supply and directly impact economic development in the eastern part of Indonesia. With the potential to employ up to 10,000 workers, she added, Pertamina hoped that the development of the Masela Block could accelerate regional development by creating new jobs for locals.
The agreement was signed at the Indonesia Petroleum Association (IPA) Convention on Tuesday in a ceremony witnessed by Energy and Mineral Resources Minister Arifin Tasrif, MIGAS director general Tutuka Ariadji, Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) head Dwi Soetjipto, and Pertamina’s Nicke and Petronas president and CEO Tan Sri Tengku Muhammad Taufik. Alongside the sales and purchase agreement, Pertamina signed a memorandum of understanding (MoU) with Japan’s Inpex.
According to Inpex’s press release, the MoU outlines a strategic collaboration to implement the Abadi LNG project through a new partnership involving the transfer of joint venture partner Shell’s participating interest in the Abadi project to PHE and Petronas.
Based on the MoU, the firms will explore opportunities for collaboration in areas such as the offtake and transportation of LNG and other products, the production of hydrogen and ammonia and meeting the needs of local stakeholders.

July 25, 2023, The Jakarta Post
(https://www.thejakartapost.com/business/2023/07/25/pertamina-petronas-secure-shells-masela-stake-for-650m.html)

Pertamina Export 15,000 Tons of Fuel Oil from Palm Oil to Europe

Natural fuel oil from vegetable oil from Indonesia sells well. President Director of PT Kilang Pertamina Internasional (KPI) Taufik Aditiyawarman said that at least Pertamina had exported 15,000 metric tons of biodiesel to Europe in 2022. This proved that the government’s efforts to encourage new renewable energy were on the right track.
“Some of it we export to Europe 15,000 metric tons,” said Taufik at the “11 Years of Indonesia EBTKE Conex”, at ICE BSD, Friday (14/7/2023).
Taufik said, Pertamina itself will continue to boost bio-fuel production in order to support the 2060 net zero emission target. The development of green fuels from Pertamina’s Green Refinery shows Pertamina’s Refinery’s commitment to achieving the Sustainable Development Goals (SDGs) Number 7, namely ‘Clean and Affordable Energy’.
“Pertamina’s Green Refinery is Pertamina’s Refinery’s commitment to producing quality and environmentally friendly fuel,” said Taufik in a press release, quoted Friday (17/6/2023)
For the Cilacap refinery, he has so far succeeded in producing 3,000 barrels per day. The production results in Cilacap, said Taufik, have been used in various international events, such as for Generators in the G20 to Formula-E.
“The Cilacap biodiesel plant is 100% green and has been used for the first generator in the G20. Because diesel generator fuel must be green,” added Taufik.
In the future, KPI also plans to increase the production of the biodiesel plant in Cilacap to reach 6,000 barrels per day or double the current production. Apart from Cilacap, Taufik continued, his party will also increase the supply of CPO-based diesel or green diesel from Dumai and Plaju. so that it can ensure the sustainability of the biodiesel program and consistently reduce imports of fuel oil.
According to Taufik, the Pertamina Refinery development roadmap currently refers to the National Energy General Plan (RUEN) in which the demand for fuel products is expected to increase until 2040. Based on RUEN, Pertamina’s refinery development roadmap is composed of a processing capacity from 1.05 million BPD to 1.4 million BPD. million BPD, fuel production from 700 KBPD to 1.2 million BPD, and Petrochemical production from 1.6 million tonnes per anum to 7.4 million tonnes per annum.
With the Pertamina refinery renewal roadmap, he said, the development had considered an environmentally oriented strategy and environmentally friendly fuel production equivalent to EURO V. In addition, increasing the Nelson Complexity Index (NCI) or refinery complexity would increase to get more producing valuable products.

July 14, 2023, CNBC Indonesia
(https://www.cnbcindonesia.com/news/20230714134719-4-454367/wow-pertamina-ekspor-15000-ton-bbm-dari-sawit-ke-eropa)
(https://www.cnbcindonesia.com/news/20230714142535-4-454396/green-refinery-jadi-inisiatif-pertamina-kejar-nol-emisi)

Sandiaga Prediction of the U-17 World Cup withdraws 200 Thousand Tourists to Indonesia

The U-17 World Cup in Indonesia at the end of this year is considered to have a big impact on Indonesian tourism. Minister of Tourism and Creative Economy Sandiaga Uno predicts the World Cup event will attract hundreds of thousands of foreign tourists to Indonesia. The calculation targeted 20% of spectators in each match is foreign tourists. If there are around 20 thousand people per match, meaning that from a total of 52 matches it can bring in more than 200 thousand foreign tourists.
“We are counting again because that was said that there are about 52 matches and if we use the formula that 20% of the targeted total spectators are around 20 thousand, it means there are around 4 thousand more that we can aim. So, maybe if the total can add to Foreign tourists around 150 thousand-200 thousand foreign tourists, “explained Sandiaga in the Presidential Palace area, Central Jakarta, Thursday (7/13/2023).
In addition, Sandiaga was also asked to prepare a tour package to the creative economy exhibition in each stadium and match.
“Kemenparekraf is given the task of preparing tourism packages as well as creative economic exhibitions which will later be part of the offer of promotions for the audience and also the FIFA World Cup U-17 participants. Creative that has been curated, “said Sandiaga.
Furthermore, Sandiaga was also asked to prepare the same thing for other international sports. For example, the Fiba World Cup or Basketball World Cup.
“Surely we welcome and appreciate the event, events, world-class sports such as the Fiba World Cup basketball world championship which will take place in August,” said Sandiaga.

July 13, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6821240/sandiaga-prediksi-piala-dunia-u-17-tarik-200-ribu-wisman-ke-ri)

Indonesia Looks to Import Cattle, Soy From South Africa

The government has unveiled a plan to import 50,000 cattle and 300,000 tonnes of soy from South Africa to expand bilateral trade in the agricultural sector.
“This is our attempt to deal with the high demand for both commodities,” Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan wrote in a post on his Instagram account on Wednesday, after his meeting with South African President Cyril Ramaphosa.
On his working trip to Johannesburg, South Africa, on Tuesday, Luhut expressed his expectation that the import deal could be finalized ahead of President Joko “Jokowi” Widodo’s visit to the 15th BRICS Summit, which will be held from Aug. 22 to 24. BRICS is an acronym denoting the forum’s members: Brazil, Russia, India, China, and South Africa.
In Johannesburg, Luhut discussed opportunities for joint ventures in trade, investment and agriculture with President Ramaphosa and members of South Africa’s Cabinet. The meeting also included Trade and Industry Minister Ebrahim Patel, African National Congress (ANC) Economic Transformation Committee chairman Mmamoloko Kubayi as well as Electricity Minister Ramokgopa.
“Hopefully the cattle and soy import plan will lead to an agreement,” Luhut said.
The deal was a boon for both countries, said Luhut, who claimed that imports of both commodities were “absolutely necessary” as domestic beef prices were continuing to rise and the country’s demand for soybeans needed to be met at 3 million tonnes.
According to the Statistics Indonesia (BPS) data, Indonesia imported 2.32 million tonnes of soybeans for US$1.63 billion in 2022. The quantity decreased 6.63 percent from the preceding year, when the country imported 2.49 million tonnes of soybeans valued at $1.48 billion.
Despite being an agricultural country, Indonesia has only 142,000 hectares of soy plantations, a fraction of its 10 million hectares of rice paddies. National soy production has declined over the past five years, in line with shrinking areas of soy cultivation nationwide. In 2021, just 200,000 tonnes of the commodity were produced, slightly above the 2020 output, with an average productivity of 1.56 tonnes per hectare.
Meanwhile, 211,430 tonnes of beef were imported in 2021, worth some $785.15 million. From 2017 to 2021, most of Indonesia’s cattle imports came from Australia, but last year, India surpassed Australia as the largest beef exporter to Indonesia.
Indonesia’s total imports in May amounted to $21.28 billion, the highest in the past five months, according to BPS data. Meanwhile, exports in the same month were recorded at $21.72 billion. The import value jumped 38.65 percent from the previous month and was up 14.35 percent from May of last year.

July 13, 2023, The Jakarta Post
(https://www.thejakartapost.com/business/2023/07/12/indonesia-looks-to-import-cattle-soy-from-south-africa.html)

Hyundai Made in Bekasi Cars, Indonesia Exported to 78 Countries

PT Hyundai Motor Manufacturing Indonesia stated that as many as 50% of its car products were exported to around 78 countries. The car in question is the factory output located in Bekasi, West Java. This was conveyed by President Hyundai Motor ASEAN HQ Young Tack Lee. Lee said, one of the export objectives was countries in the African continent. While for the total production from the factory it reaches 150 thousand units of cars per year.
“More than 50% of Indonesian factory production has been exported to 78 countries worldwide to contribute to Indonesian car exports,” Lee said at the factory, Bekasi, West Java, Tuesday (11/7/2023).
Hyundai itself has been working with Indonesia since November 2019. The construction of the first factory was completed in December 2021. Electric cars became one of the products that continued to be encouraged by production in Indonesia.
“Since last year, SUV (Sport Utility Vehicle) of the first mass production in Indonesia, Creta, and MP Stargazer was exclusively launched. Especially Loniq 5 which was launched in March last year, was the first electric car in Indonesia that localized, and was chosen as a vehicle The official G20 event in Bali last year, “he said.
Lee said, in 2022 yesterday the production of electric cars in his factory touched 250 units per month. This year, there has been an increase in production to 1,000 units per month. Thus, per year production can penetrate up to 12,000 thousand units. Thus, increased production penetrated up to 4 times compared to 2022 ago. In line with that, it targets that the sale of electric cars can penetrate up to 10,000 units in 2023.
Hyundai also contributed to the construction of two battery factories. These include a battery cell factory in Karawang and a battery pack factory in Cikarang. The investment value required for the two factories is around US$ 1.5 billion or the equivalent of IDR 22.8 trillion (exchange rate of IDR 15,200/US$). The battery cell factory itself is a battery cell production factory. This factory is a joint venture between Hyundai Motor Group and LG Energy Solution (LGES) Ltd. Apart from Hyundai and LG, there is also the Kia brand, as well as the Indonesian Battery Industry PT. Meanwhile, the battery pack factory is a battery system factory or a factory that assembles battery cells into a unified whole, so that they are ready to be ’embedded’ in an electric car. This factory is the result of a collaboration between Hyundai Motor Manufacturing Indonesia and Hyundai Mobis of Hyundai Motor Group.

July 12, 2023, detikFinance
(https://finance.detik.com/industri/d-6818158/top-mobil-hyundai-made-in-bekasi-diekspor-ke-78-negara)

Indonesia’s Manufacturing Index Increases to 52.5

Coordinating Minister for the Economy Airlangga Hartarto revealed that the domestic economy was still solid and was able to be an incentive in strengthening the output of the manufacturing sector. Purchasing Managers’ Index (PMI) Indonesian Manufacturing June 2023 is at an expansive level of 52.5.
According to him, domestic demand also increased. This increase supports the expectations of manufacturing companies to survive at a positive level. In addition, the increase in sales driven by domestic demand also became the main sentiment for the positive prospects of the national economy going forward.
“With the release of Pandemic status to endemic, economic activity has become normal. PMI (Purchasing Managers’ Index/PMI Manufacturing Indonesia) has increased to 52.5, and we have been 22 months in a row above 50, so this is expensive. Industrial Trust (IKI) in June 2023 reached 53.94 or an increase of 3.03 points compared to last month which amounted to 50.90, “Airlangga said at the CNBC Indonesia Economic Update, as in a written statement, Monday (10/7/2023).
The Ministry of Investment/BKPM data also revealed the contribution of the processing industry to the total investment of Indonesia in the first quarter of 2023 of 42.5% or reached IDR 328.9 trillion. This figure increased by 32.5% compared to the previous year. Meanwhile, in the first quarter of 2023, the contribution of the processing industry to the industrial sector as a whole reached 18.57%. This is the largest subsector of the contributor, the food and beverage industry of 6.47%.
Airlangga assessed that the government encouraged the national industry to be more open, it was because it had a long-term projection or more than the next 10 years. Indonesia has also shown resilience from the industrial sector, for example, the electronic and automotive industries. Last year, the automotive industry exported vehicles close to 400 thousand units to more than 80 countries.

July 10, 2023, detikFinance
(https://finance.detik.com/industri/d-6816052/indeks-manufaktur-ri-meningkat-ke-525-airlangga-ini-ekspansif)