Month: July 2024

In order to increase added value to the economy and maintain national economic resilience, the government has initiated a downstream industry policy. For this reason, the role of domestic off-takers and users of copper raw materials is considered very important in making it a success. The supply of copper downstream products that Indonesia currently needs still relies on imported products. One of them is copper tube, copper tape, copper evaporator, as well as components needed in Electric Vehicle (EV) production such as cables, inverters, and batteries. In order to meet these needs, the government continues to encourage processing industries in Special Economic Zones to carry out downstream processing.

“We applaud the extraordinary management. And what was built is an extraordinary, extraordinary factory. So, this is very timely, because currently renewable energy is becoming a trend. And the renewable energy trend requires critical minerals. And one of them is copper,” he said Coordinating Minister for Economic Affairs Airlangga Hartarto Airlangga in a written statement, Friday (28/6/2024). This was conveyed by Airlangga, at the Inauguration of PT Freeport Indonesia (PTFI) Smelter Operations in the Gresik Special Economic Zone.

The PTFI smelter is the largest single-line copper refining facility in the world with a refining capacity of 1.7 million tons of copper concentrate per year. The project, which occupies 100 hectares of land in the Java Integrated Industrial Ports Estate (JIIPE) KEK, Gresik, East Java, has a cumulative investment value of IDR 58 trillion or around US$ 3.7 billion.

This investment will not only provide benefits for domestic construction companies but will also create multiplier effects for the people of Gresik Regency.

Together with the smelter operated by PT Smelting, the two will refine 3 million tons of copper concentrate per year with a production of around 600,000 tons of copper cathode, 50 tons of gold and 200 tons of silver per year.

With the operation of this smelter, all copper concentrate produced by PTFI can be processed and refined domestically, as can the anode sludge from PT Smelting.

“And this is the first integration from the mine to the final product. And with this integration, the gold production of 50 tons will pay royalties. Because this is integrated from the mine to the downstream. Likewise for silver we also pay royalties. So, of course a lot of income will be obtained from thegovernment,” said Airlangga.

It is hoped that PTFI’s presence in the Gresik KEK can be an attraction in forming an area with an ecosystem that supports downstreaming, especially EVs. As of March 2024, the Gresik KEK has recorded an investment value of IDR 75.2 trillion and absorbed more than 35,000 workers.

“In the future Indonesia will be able to increase its exports. If our exports are strong, then our rupiah can be stable. For example, from nickel and from palm oil our exports are US$ 55 billion. So, oil imports are US$ 40 billion, it’s actually natural “hedging happened,” concluded Airlangga.

June 28, 2024, detikFinance

(https://finance.detik.com/industri/d-7414063/resmikan-smelter-freeport-di-gresik-airlangga-dorong-hilirisasi-industri)

Indonesia’s competitiveness has succeeded in occupying the highest ranking in its history. This is based on the International Institute for Management Development (IMD) through the release of the 2024 World Competitiveness Ranking (WCR) regarding the competitiveness of various countries.

Indonesia is ranked 27^th out of 67 countries, up 7 places from last year in 34^th position with a score of 71.52. Since 1997, this is the first time Indonesia has reached the top 20 rankings, only behind Singapore (rank 1) and Thailand (rank 25) in the Southeast Asia region.

The Ministry of Investment/Investment Coordinating Board (BKPM) considers the surge in Indonesia’s competitiveness ranking as a positive thing to increase investor confidence, especially foreign investors. Special Staff for Regional Relations at the Ministry of Investment/BKPM Tina Talisa assessed that the steps taken by the government under the leadership of President Joko Widodo were correct.

“It is proven by the efforts that have been made during the 2 periods of this government, Indonesia’s competitiveness shot to 27th position. The highest ranking in history. This is a positive thing that shows that we are truly ready to compete. Moreover, among ASEAN countries, we have entered the top three,” said Tina in her statement, Friday (28/6/2024).

He explained that previously Indonesia was ranked 34^th (2023), 44^th (2022), 37^th (2021) and 40^th(2020). IMD itself has carried out WCR assessments since 1989 and Indonesia has been recorded as having participated in assessments since 1997.

“It is proven by the efforts that have been made during the 2 periods of this government, Indonesia’s competitiveness shot to 27th position. The highest ranking in history. This is a positive thing that shows that we are truly ready to compete. Moreover, among ASEAN countries, we have entered the top three,” said Tina in her statement, Friday (28/6/2024).

“Institutionally, the government has made a lot of improvements. In 2020 the CK Law (Job Creation Law) was created, which will be perfected in 2023 through the CK Perppu. Here we also emphasize a more inclusive economy, empowering MSMEs. Not only in the Ministry of Investment, but all ministries also “Institutions consistently implement it,” added Tina.

June 28, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7412805/daya-saing-ri-naik-ke-posisi-27-bkpm-tertinggi-sepanjang-sejarah)

(https://finance.detik.com/berita-ekonomi-bisnis/d-7413812/daya-saing-ri-loncat-ke-posisi-tertinggi-sepanjang-sejarah-apa-dampaknya)

The Ministry of Industry (Kemenperin) notes that the food and beverage industry play an important role in supporting Indonesia’s economic growth. According to the Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, in the first quarter of 2024, exports in this sector will reach US$ 9.18 billion or IDR 149.63 trillion (exchange rate IDR 16,300).

“Apart from that, from the export side, in the first quarter of 2024 the food industry recorded a value of US$ 9.18 billion, with an import value of US$ 4.27 billion. Thus, the food industry sector still continued its positive trade balance in the first quarter in 2024 amounting to US$ 4.91 billion,” he said at the Seaweed Industry Business Matching event, Tuesday (25/6/2024).

The contribution of this sector in the first quarter of 2024 is 39.91% of Non-Oil and Gas Industry GDP, and 6.97% of national GDP. Food and beverage industry GDP increased to 5.87% in the first quarter of 2024 compared to the previous period of 5.33%.

According to Putu, the seaweed processing sector has promising business prospects. This is because Indonesia has abundant availability of raw materials for the development of seaweed derivative products.

“The seaweed processing industry has promising business prospects because it is supported by the abundant availability of raw materials and opportunities for the development of various derivative products with high added value. As the 2nd largest seaweed cultivation producing country in the world, Indonesia is a suitable place for the development of seaweed. “starting from the cultivation process to the downstream process,” he explained.

In the last 10 years, Indonesia still dominates exports of dried seaweed, both for consumption and industrial raw materials. However, significant growth has not been seen in exports of downstream products that have more added value.

66.61% of Indonesia’s seaweed export products are dominated by dried seaweed, while processed seaweed (carrageenan and gelatin) still accounts for 33.39%. In 2023, Indonesia will produce 10.7 million tons of wet seaweed.

“So far, the majority of processed seaweed is used for food and beverage products at 77%, while for pharmaceuticals, cosmetics and others it is only 23%. This industry needs to be more adaptive to changes and market developments,” he said.

Putu added that his party continues to synergize with Ministries/Institutions to increase competitiveness and optimize the downstreaming of the seaweed industry. Some of these derivative products include biostimulants, bioplastics, animal feed additives, nutraceuticals, alternative proteins, pharmaceuticals and textiles.

“The Global Seaweed New and Emerging Market Report 2023 has identified a new market share that will develop in 2030 for downstream seaweed products with a market potential of US$ 11.8 billion, namely biostimulant products, bioplastics, animal feed additives, nutraceuticals, protein alternatives, pharmaceuticals and textiles,” concluded Putu.

June 25, 2024, detikFinance

(https://finance.detik.com/industri/d-7407341/top-ekspor-sektor-makanan-dan-minuman-ri-tembus-rp-149-triliun)

(https://finance.detik.com/industri/d-7407549/potensi-industri-produk-turunan-rumput-laut-ri-tembus-rp-192-triliun)

The Directorate General of Sea Transportation of the Ministry of Transportation is again participating in the 2024 Marine Pollution Exercise (Marpolex). This time it will be held at the Port of Bacolod, Philippines.

Director of the Sea and Coast Guard Unit, Jon Kenedi said that on Monday (24/6) a ceremony was held to welcome the arrival of the Indonesian Sea and Coast Guard patrol vessel, namely KN.P. 111 Trident. The KPLP Patrol Ship has started its journey from Indonesia to the Philippines from Bitung Harbor since June 19, 2024.

“This welcoming ceremony was led by the Commander of Coast Guard District Western Visayas, Capt. Weniel Azcuna,” said Jon Kenedi in a press release written on Tuesday (25/6/2024).

Jon Kenedi expressed his appreciation for the welcome given by the Bacolod City Government and the Philippine Coast Guard. “On behalf of the Indonesian Government, allow me to express my gratitude to the Bacolod Regional Government for its warm welcome and willingness to host this exercise,” said Kenedi.

The Marpolex 2024 exercise aims to test and evaluate the ability to respond to cross-border oil spills between Indonesia and the Philippines based on the Sulu Sulawesi Oil Spill Response Network Plan 1981. This activity is expected to strengthen cooperation and communication between participating countries, including Japan as an observer.

“This exercise primarily aims to test and evaluate capabilities in responding to tier 3 scale oil spills in the Indonesia-Philippine border waters,” added Kenedi.

Commander KN. Trident, Capt. Satria Aji Yudha also expressed his gratitude for the warm welcome received. “We are very happy to be able to join the training with the Regional Marpolex in Bacolod City. We really hope that this training will be successful, and we can strengthen our relationship with all the participants,” he said.

The main Marpolex 2024 exercise will be conducted on Wednesday with several scenarios, including oil spill response, search and rescue, and fire-fighting operations. “It is hoped that we can all show good cooperation and communication efforts during the training, so that this Regional Marpolex activity can be carried out safely and successfully,” explained Jon Kenedi.

In addition, Jon Kenedi emphasized the importance of long-term cooperation between the Philippine Coast Guard, the Indonesian Directorate General of Maritime Transportation, and the Japan Coast Guard. “It is hoped that this collaboration can be expanded to involve other countries, especially in the Southeast Asia region,” he added.

The Marpolex exercise has become clear evidence of the three countries’ commitment to maintaining and improving the protection of the marine environment. “Marpolex has become clear evidence of our commitment and active involvement in maintaining and improving the protection of the marine environment,” concluded Kenedi.

June 25, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7408275/ri-dan-filipina-latihan-bareng-buat-tingkatkan-perlindungan-lingkungan-laut)

Minister of Industry, Agus Gumiwang Kartasasmita met with SAIC-GM-Wuling Automobile Co., Ltd officials in Beijing. Agus encouraged Wuling to increase its production in Indonesia and make Indonesia a production hub for exports.

“We give our appreciation to Wuling which is one of the first companies to fill EV (electric vehicle) cars in Indonesia. Moreover, Wuling has made Indonesia the only EV manufacturing facility outside China,” said Agus Gumiwang in his official statement, Tuesday (18/ 6/2024).

With the rapid development of Wuling’s EV production in Indonesia, he said, so far Wuling has also provided important input in the development of the EV industry in Indonesia. The Minister of Industry conveyed two things related to business development to Wuling. First, to be able to increase and optimize production capacity in Indonesia.

Agus encouraged Wuling to make Indonesia a hub for exporting Wuling products throughout the world, of course outside of Wuling products from China, especially to answer overall market demand.

During the meeting, President Director of PT SGMW Motor Indonesia, Mr. Shi Guoyong said that during the seven years of the company’s operations in Indonesia, Wuling’s investment in Indonesia reached more than US$ 700 million. Wuling has also reached around 130,000 buyers and exported to Thailand.

“Wuling is also the first factory that can produce electric cars and achieves the first 40% Domestic Component Level in Indonesia,” explained Mr. Shi.

He added that the support and incentives provided by the Indonesian government have enabled the company to invest smoothly and can currently produce three types of EV products. Wuling Indonesia also reported that one of Wuling’s stakeholders, namely SAIC Co., is a producer of MG vehicles.

Currently, the company is taking the initiative to increase investment by adding the MG brand to the range of EVs produced by Wuling. Regarding the industrial activities carried out, Mr. Shi conveyed the future plans that Wuling Indonesia will carry out, including exploring the markets of Australia, New Zealand, Malaysia and South Africa.

Then, there are also plans to produce a 7-seater MPV type EV. No less important, Wuling is trying to improve the EV supply system by embracing several Chinese companies to invest in Indonesia.

“We are prioritizing EV development, especially by launching quality products with high technology for both the Wuling and MG brands,” he concluded.

June 18, 2024, detikFinance

(https://finance.detik.com/industri/d-7396580/bertemu-menperin-wuling-mau-geber-investasi-kendaraan-listrik-di-ri)