Month: May 2025

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Indonesia Secures $60m for Floating Solar Project through JETP

Standard Chartered, Germany’s development finance institution DEG, and France’s Proparco on Tuesday announced a US$60 million investment to fund the construction and operation of a solar photovoltaic (PV) plant in Indonesia. The 92 megawatt-peak (MWp) Saguling floating solar photovoltaic plant, located in West Java, will be run by Saudi Arabia’s ACWA Power and state-owned electricity company PLN’s subsidiary PLN Indonesia Power.

The plant is slated to begin operations in 2026. Once operational, it is expected to offset more than 63,000 tonnes of carbon emissions annually, according to a statement issued on Tuesday by the Glasgow Financial Alliance for Net Zero (GFANZ), of which Standard Chartered is a member.

The project, part of Indonesia’s Just Energy Transition Partnership (JETP), marks the first project-level financing deal since the US formally withdrew from the initiative earlier this year. The US commitment in Indonesia is greater than $2 billion, made up of non-concessional loans, multilateral development bank (MDB) guarantees, and grants.

Coordinating Economic Minister Airlangga Hartarto said in the statement that the Saguling project symbolized global collaboration: “It represents our joint commitment to accelerate the clean energy transition and support inclusive, sustainable growth.”

French Ambassador to Indonesia, ASEAN, and Timor-Leste Fabien Penone said France had committed more than €450 million ($513 million) to support Indonesia’s energy transition under the JETP.

“The financing by the French development finance institution Proparco of the Saguling floating solar PV plant highlights our commitment to foster innovative renewable energies in Indonesia and to support its sustainable economic growth,” he said in the same statement.

Initially, Indonesia was banking on the $21.6 billion in JETP pledges to transition from coal to cleaner energy. Roughly half of that funding, or $11.6 billion, is supposed to be raised from the public sector, particularly from the International Partners Group (IPG) members as donor nations, namely Canada, Denmark, France, Germany, Italy, Japan, Norway, the United Kingdom, and the European Union. Washington had pledged to contribute over 20 percent of those public funds, the largest among all IPG members, but has since pulled out of JETP Indonesia. The rest of the JETP pledges are to be provided by the private sector under the coordination of GFANZ, consisting of Bank of America, Citi, Deutsche Bank, HSBC, Macquarie, MUFG, and Standard Chartered. Indonesia is pinning its hopes on Germany and Japan, the new JETP co-leaders, to revive the flailing initiative and accelerate the country’s shift from fossil fuels to renewable energy.

German Ambassador Ina Lepel, in the same statement on Tuesday, said the agreement highlighted growing collaboration between the International Partners Group and GFANZ, marking “a new phase” where JETP projects were mature enough to secure investment contracts. The coal-dependent nation requires large sums of funding, especially grants for non-bankable projects like the early retirement of coal-fired power plants and the development of a green electricity transmission network. With years having passed since the signing of the JETP initiative, but with little change on the ground, however, Jakarta has begun questioning the commitment of the JETP donor countries.

April 30, 2025, The Jakarta Post

(https://www.thejakartapost.com/business/2025/04/30/ri-secures-60m-for-floating-solar-project-through-jetp.html)

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Indonesia Exports 10,000 Tons of Zinc-Coated Steel to the United States Worth US$ 10 Million

PT AM/NS Indonesia, one of the iron and steel producers in Indonesia, exported 10,000 tons of Zinc-coated Steel (Galvanized) products to the United States (US) market. The export value of this shipment reached around US$ 10 million. President Director of PT AM/NS Indonesia, Murali Krishna Chunduru, said that this export activity was an important part of the company’s efforts to strengthen its business in the international market.

“This export is one of the strategic achievements for the company in expanding market reach and strengthening our position in the global market,” said Murali in an official statement, Wednesday (4/30/2025).

Currently, the United States and Canada are the main export markets for PT AM/NS Indonesia’s galvanized products. The company targets exports to the US of 5,000 – 6,000 tons per month, and exports to Canada of around 3,000-4,000 tons per quarter, depending on market dynamics.

In addition to strengthening the main market, PT AM/NS Indonesia also plans to expand access to newly targeted markets such as Europe, Malaysia, and Australia, along with the opportunities that arise due to trade protection policies from various countries. Murali said that amidst this export achievement, the national steel industry still faces structural challenges. One of them is the rampant import of non-standard steel that has not received maximum protection from domestic regulations.

“We need government intervention to stop the entry of non-standard steel, such as products with substandard thickness or lower protective coatings,” Murali added.

Regarding the steel import tariff policy to the US, Murali said that steel products are subject to a flat tariff of 25% under Section 232. However, this condition actually opens up opportunities for the company considering that several competing countries such as China, Vietnam, and India are subject to higher anti-dumping duties.

“We have a competitive advantage in terms of both quality and price, so we are able to meet the needs of the US market which is now looking for new suppliers,” he said.

The company is targeting sales this year of 300,000 tons, growing around 8-9% compared to the previous year. The company also continues to commit to improving product quality to meet domestic and international market demand. “We will continue to innovate and maintain world-class manufacturing standards across our product lines,” Murali said.

April 30, 2025, detikFinance

(https://finance.detik.com/industri/d-7893004/ri-ekspor-10-000-ton-baja-lapis-seng-ke-as-us-10-juta)

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BKPM: Growing 12.7%, Foreign Investment Realization Reaches IDR 230 Trillion in Q1

Minister of Investment and Downstream/Head of BKPM Rosan Roeslani noted that the investment that had been realized in the first quarter of 2025 reached IDR 465.2 trillion. This realization increased by 15.9% compared to the fourth quarter of 2024 and increased by 2.7% compared to the same period last year. Of this amount, foreign investment (PMA) amounted to IDR 230.4 trillion or 49.3% of the total investment realization. Meanwhile, investment in the form of domestic investment amounted to IDR 234.8 trillion or 50.5% of the total investment realization. Meanwhile, this PMA increased by 12.7% in the first quarter of 2025.

Meanwhile, the realization of this PMA came mostly from Singapore US$ 4.6 billion. The second position is Hong Kong US$ 2.2 billion and third, there is China US$ 1.8 billion. Then, the fourth position is occupied by Malaysia US$ 1 billion and Japan US$ 1 billion. Then the sectors with the most PMA realization are basic metals, metal goods, not machinery and equipment, mining, transportation, warehousing and telecommunications, other services and chemical and pharmaceutical industries.

BKPM noted that in terms of location, West Java is the favorite for PMA with a total investment realization of US$ 2.2 billion. Furthermore, the second position is occupied by Central Sulawesi with an investment realization of US$ 1.9 billion and third, there is Jakarta US$ 1.7 billion. Then, the fourth and fifth positions are North Maluku and Banten amounting to US$ 1.4 billion and US$ 1 billion.

April 29, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250429111045-4-629578/bkpm-tumbuh-127-realisasi-investasi-asing-capai-rp-230-t-di-q1)

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World Bank, IMF, and Bank Indonesia Predict Indonesian Economy to Grow 4.7% in 2025

The World Bank estimates that Indonesia’s economic growth will grow by 4.7% this year. This projection was released in the Regional Economic Update 2025 report, today, Friday (4/25/2025). This projection for Indonesia is lower than the projection at the beginning of this year, which was 5.1%. This projection is based on the uncertain global situation which has hampered investment and consumption in the East Asia and Pacific region. In addition, trade restrictions will also affect the economic growth of Indonesia and East Asian countries.

“Trade restrictions are expected to impact the level of East Asia and Pacific exports, while slowing global growth is likely to further reduce external demand,” wrote the World Bank.

The World Bank’s projection is the same as the projections of BI and the International Monetary Fund (IMF). Last Tuesday (22/4/2025), the IMF estimated that Indonesia’s economic growth would reach 4.7% in 2025. The IMF cut Indonesia’s economic growth quite sharply to 4.7% in 2025 and 2026. This projection is much lower than the forecast in January 2025. At that time, the IMF projected that Indonesia’s economy would grow by 5.1%. This projection reduction is similar to the global economic slowdown due to the high trade tariff war, which was first implemented by US President Donald Trump against its main trading partner countries, and China responded with high reciprocal tariffs.

“If it continues, the sudden increase in tariffs and the uncertainty that accompanies it will slow global growth significantly,” said IMF Chief Economist Pierre-Olivier Gourinchas at a press conference on Tuesday night (22/4/2025) Indonesian time.

In line with the IMF, Bank Indonesia (BI) estimates that Indonesia’s economic growth has the potential to weaken this year, due to the tariff war between the main trading partners of the United States and China. BI Governor Perry Warjiyo said that the trade war that hampers international trade activities and investment will cause the economy to move in the lower range of the midpoint of 4.7%-5.5%.

“Slightly below the midpoint of the 4.7%-5.5% range is influenced by US tariffs that reduce Indonesian exports to the US and a decrease in export demand from other countries,” Perry emphasized during a press conference on the results of the Bank Indonesia Board of Governors (RDG) Meeting, quoted on Thursday (24/4/2025).

BI’s economic growth projection for the lower point of 4.7% is similar to the IMF’s projection of the potential slowdown in the Indonesian economy this year to 2026, which is also in the range of 4.7%.

April 25, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250425113522-4-628699/bank-dunia-imf-dan-bi-kompak-ramal-ekonomi-ri-tumbuh-47-di-2025)

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Boost Tourism, Two More Indonesian Geoparks Get UNESCO Recognition

The United Nations cultural body has recognized two geoparks in Central Java and South Kalimantan, namely Kebumen and Meratus, as UNESCO global geoparks, the Foreign Ministry said on Tuesday. They are among the 16 new global geoparks that have just been approved by the UNESCO executive board in a session in Paris, France, the ministry said in the press release. This followed their nominations by the Global Geoparks Council late last year.

“The UNESCO recognition is evidence of Indonesia’s contribution to preserving Earth heritage,” Mohamad Oemar, Indonesia permanent delegation to UNESCO, said in the press release from the Foreign Ministry on Tuesday.

“At the same time, it signifies a responsibility to preserve, manage sustainably and promote our geological sites and culture,” said Oemar, who is also the ambassador to France.

Located in the southern part of Central Java, Kebumen geopark stretches across an area of about 1,100 square kilometers. According to a UNESCO document, the geopark has conical hills to the southwest and flat alluvial plains to the southeast. The highlight of the geopark is its records of plate tectonic activities that date back as far as 119 million years ago.

The Meratus geopark, meanwhile, covers an area of about 3,600 sq km at the southern tip of South Kalimantan. The landscape has many valleys, waterfalls, rivers, lakes and karst landforms. It is home to Banjar and Dayak people.The geopark features the Meratus Mountains, which are characterized by ophiolite, an exposed oceanic crust that is globally rare. According to the UNESCO document, although ophiolites are found elsewhere in Indonesia, the Meratus Mountains preserve the most complete ophiolite sequence and the oldest in the country.

A UNESCO global geopark is an area that features landscapes of international geological significance. A geopark must be managed with a concept that combines conservation, public outreach and sustainable development.

The inclusion of Kebumen and Meratus brings the number of Indonesian geoparks in the UNESCO list of global geoparks to 12. They include famous tourist destinations Raja Ampat in Papua, which is known for its underwater beauty, and Rinjani-Lombok geopark in West Nusa Tenggara that features Mount Rinjani, known for its breathtaking peak and crescent-shaped crater lake named Segara Anak.

Other geoparks are Toba caldera in North Sumatra, Batur in Bali, Ciletuh in West Java, Ijen in East Java, Belitung in Bangka Belitung Islands, Merangin in Jambi, Maros Pangkep in South Sulawesi and Mount Sewu, which is located along the borders of three provinces in Java.

Holding the status of UNESCO global geopark can help local communities boost tourism. Apart from Indonesia, several other countries had their geoparks recognized this year, such as Norway with its Fjord Coast, Vietnam with Lang Son, South Korea with Danyang and Gyeongbuk Donghaean, North Korea with Mount Paektu and Ecuador with Tungurahua Volcano and Napo Sumaco.

April 16, 2025, The Jakarta Post

(https://www.thejakartapost.com/indonesia/2025/04/16/two-more-indonesian-geoparks-get-unesco-recognition.html)