Author: admingentala

Indonesia and Malaysia continue their agreement to abandon the United States (US) dollar and switch to the use of local currencies in trade and investment transactions. This agreement was marked by the renewal of the local currency bilateral swap agreement (LCBSA) by Bank Indonesia (BI) and Bank Negara Malaysia (BNM), Friday (27/9/2024). The meeting was held in Jakarta. Bank Indonesia was represented by Governor Perry Warjiyo and BNM was represented by Dato’ Seri Abdul Rasheed Ghaffour and his staff.

“Bank Indonesia views the increased cooperation in the local currency bilateral swap agreement (LCBSA) with BNM as representing an important role of international cooperation as part of Bank Indonesia’s policy mix that supports key policies in the fields of monetary, macroprudential, and payment systems, while at the same time contributing to the development of local currency-based transactions in both countries,” Perry said in a press release.

The renewal of the LCBSA allows for the exchange of local currencies between the two central banks up to RM24 billion or IDR82 trillion for the next five years. In the bilateral meeting, they also discussed policy directions covering macroeconomics, monetary and financial, payment systems and digitalization, and strategies to advance Islamic finance.

“As trade and financial interconnection between Malaysia and Indonesia increases, we welcome the agreement to continue cooperation with BI through the renewal of this LCBSA agreement. The LCBSA cooperation complements the ongoing local currency transaction (LCT) cooperation and is currently the main scheme in settling trade and investment transactions in each country’s currency,” explained BNM Governor Dato Seri’ Abdul Rasheed Ghaffour.

The renewal of the BI and BNM LBCSA cooperation is a shared aspiration of both parties after the LCBSA cooperation was first implemented in 2019 and extended in 2022 and is part of a continuous effort to strengthen the cooperation between the two central banks that has existed for a long time.

September 27, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7559165/pertamina-grand-prix-of-indonesia-jadi-ajang-kebanggaan-masyarakat-lombok)

The 2024 Pertamina Grand Prix of Indonesia organized by Pertamina together with the Indonesia Tourism Development Corporation (ITDC) and the Mandalika Grand Prix Association (MGPA) has succeeded in gaining an extraordinary place in the hearts of the people of Lombok, and the annual event is always awaited.

“The 2024 Pertamina Grand Prix of Indonesia event is one of the most awaited events by the people of Lombok, from all corners of Lombok Island they must watch this event, as evidenced by the special ticket sales for local people that have sold out,” said Harry, in a written statement, Wednesday (25/9/2024), in a written statement, Thursday (26/9/2024).

He hopes that in the future the Pertamina Grand Prix of Indonesia will continue to be held because according to him this event has become a source of pride for the people of Lombok.

“It can be said that the Pertamina Grand Prix of Indonesia has become an icon for the people of Lombok that must be held every year. This means that collaboration between parties must be maintained properly. Because if this event is lost, the pride of the people of Lombok will also be lost,” said Harry.

“This international event also has a multiplier effect for Lombok, and other tourist cities in Indonesia which are then visited by tourists watching the Grand Prix of Indonesia,” he continued.

Around dozens of tourists from various countries gathered at the Circuit Sport Bar, Grill & Resto. The restaurant, which is located close to the Pertamina Mandalika International Circuit, was crowded with foreign tourists who chatted and watched the MotoGP qualifying session together while enjoying snacks and fresh drinks.

“The restaurant’s income has increased quite a bit by 80 percent. For us in the MSME sector, an international event like this is very much needed, so Pertamina is extraordinary in being able to bring the Pertamina Grand Prix of Indonesia to Lombok Island,” said Adham.

The benefits of the international event are not only felt by restaurant entrepreneurs, but also by other types of businesses such as souvenir traders. Ria Anggraini, a salesperson from Natasya Collection, a souvenir shop in the Kuta Beach area, also admitted that there were quite a lot of buyers when the Pertamina Grand Prix of Indonesia was held.

Meanwhile, VP of Corporate Communication of Pertamina, Fadjar Djoko Santoso, stated that the 2024 Pertamina Grand Prix of Indonesia is expected to provide a positive multiplier effect for the people of Lombok. Hearing stories of economic growth from local entrepreneurs brings a sense of pride to Pertamina.

Pertamina, as a leading company in the energy transition sector, is committed to supporting the 2060 Net Zero Emission target by continuing to encourage programs that have a direct impact on achieving the Sustainable Development Goals (SDGs). All of these efforts are in line with the implementation of Environmental, Social & Governance (ESG) across all of Pertamina’s business lines and operations.

For information, the winner of the 2024 Pertamina Grand Prix of Indonesia was Jorge Martin, who was able to maintain the leading starting position. He dominated the race for 27 laps with a time of 41 minutes 4.389 seconds.

September 26, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7559165/pertamina-grand-prix-of-indonesia-jadi-ajang-kebanggaan-masyarakat-lombok)

(https://finance.detik.com/berita-ekonomi-bisnis/d-7561991/pertamina-grand-prix-of-indonesia-2024-dongkrak-omzet-pengusaha-lokal)

President Joko Widodo today, Tuesday (24/09/2024), inaugurated the first bauxite injection for the Smelter Grade Alumina Refinery (SGAR) Phase 1 project of PT Borneo Alumina Indonesia (BAI) located in Mempawah Regency, West Kalimantan. This smelter is divided into two phases with a total investment of up to US$ 1.7 billion or around IDR 25.67 trillion (assuming an exchange rate of IDR 15,100 per US$), consisting of US$ 900 million for the first phase and US$ 800 million for the second phase. The first phase of the Mempawah SGAR was built with an alumina production capacity of up to 1 million tons per year.

SGAR Phase 1 is a national strategic project from the MIND ID Mining BUMN Holding or PT Mineral Industri Indonesia (Persero) and the group through subsidiaries of PT Indonesia Asahan Aluminum (Inalum) and PT Aneka Tambang Tbk (ANTM), namely PT Borneo Alumina Indonesia (BAI). With the operation of SGAR, this indicates that Indonesia has an integrated bauxite downstream project to downstream products in the form of aluminum.

MIND ID President Director Hendi Prio Santoso said that this is an important achievement in the metal mineral industry in the country. With the inauguration of the first bauxite injection of the SGAR project, this makes the project integrated from upstream to downstream, from bauxite mining to later being processed into alumina to then be sent as raw material for aluminum to be produced by Inalum.

After this phase 1, the company will continue to work on the second phase project with an alumina production capacity of 1 million tons per year. For this reason, his party also asked for support from the local government to facilitate investment in the next phase, both in terms of licensing, land acquisition, and so on.

“But with our vision of carrying out full bauxite downstreaming and also wanting to help the government ease the burden on foreign exchange, we will increase aluminum production to reach 900 thousand tons, so additional raw materials are needed, so we are ready to add another 1 million tons (alumina),” he explained.

Second, he continued, there will be the creation of economic output of more than IDR 150 trillion.

This Phase 1 SGAR will later connect the supply chain between bauxite ore minerals in West Kalimantan produced by PT Aneka Tambang Tak (ANTM) and the Inalum aluminum smelter in Kuala Tanjung, North Sumatra. Bauxite ore mineral injection is the first series in the alumina production process with the first alumina production target planned for November 2024. The commissioning or trial process will be carried out in stages with a gradual increase in production or ramp up production until December 2024.

The SGAR Phase 1 Project is planned to enter the full alumina production stage in the first quarter of 2025, with a target commercial operation date (COD) or commercial operation at the end of February 2025. The SGAR Phase 2 Project is an expansion of the SGAR Phase 1 Project which will also be located in Mempawah, West Kalimantan and will also have an alumina production capacity of up to 1 million tons per year with an operational target in 2028.

Through the operation of the SGAR Phase 1 and Phase 2 Projects, domestic alumina production will increase to 2 million tons per year with the absorption of bauxite ore minerals reaching 6 million tons per year.

This is in line with Inalum’s corporate action plan to increase its aluminum production capacity to 900,000 tons per year. In addition, Inalum’s aluminum smelter currently has an aluminum production capacity of up to 275,000 tons per year, all of which are prioritized to meet domestic aluminum needs.

September 24, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20240924114314-4-574152/sah-ri-punya-proyek-hilirisasi-bauksit-aluminium-terintegrasi-pertama)

Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed the important role of maintaining relations with other countries in efforts to build the Indonesian economy. Including with the People’s Republic of China (China). According to him, the Indonesian economy is resilient in facing various global challenges to date, inseparable from the strategic partnership established with China.

“Supported by the rapid digital transformation globally, Indonesia and China have strengthened the economic development path of both countries. In addition to large investment projects, Chinese institutions have also long supported efforts to strengthen human resource development strategies in Indonesia, especially in developing skills that are in accordance with the needs of the new economy, namely the green and digital economy,” he said in a written statement, Friday (20/9/2024).

He conveyed this at the 75th Anniversary of the Founding of the People’s Republic of China, which was held in Jakarta, Thursday (19/9).

Airlangga said that China has become Indonesia’s partner in trade and investment. It is known that the total bilateral trade between China and Indonesia in 2023 was recorded at US$ 127.8 billion (excluding Hong Kong). In terms of regional cooperation mechanisms, he said, ASEAN and China are at the peak of their highest trade relations. Based on ASEAN statistics, in 2023, trade volume with China reached a new record of US$ 702 billion. This amount makes China ASEAN’s largest trading partner for 15 consecutive years.

Airlangga said the potential for growth in collaboration between Indonesia and China still has great potential. New opportunities emerge in the technology, environmentally friendly energy, digital economy, and innovation sectors. In addition to the Whoosh High-Speed ​​Train which also drives economic growth by increasing connectivity, cooperation between the two countries in building Special Economic Zones is also worth considering. In addition, Airlangga also mentioned the progress of the Tsinghua Southeast Asia Center located in the Kura-Kura Special Economic Zone in Bali, which has been fully operational since its inauguration on November 16, 2022.

At the end of this month, The Tsinghua Southeast Asia Center together with the National Council of Special Economic Zones, the Bali Kura-Kura Special Economic Zone, and the Indonesian Institute of Engineers (PII), will hold a knowledge sharing and networking event in the artificial intelligence and semiconductor sectors. The event is considered to be able to facilitate and foster close collaboration between scholars and industry players from Indonesia and China.

“The partnership between Indonesia and China is complementary and mutually beneficial. I am sure that the next Indonesian government will be able to continue the achievements that have been achieved so as to further strengthen and revitalize the economies of each country,” said Coordinating Minister Airlangga.

Airlangga further said that Indonesia is the same as China, namely open to partnerships with all global countries and supports multilateralism. By strengthening cooperation, he believes that the two countries can build a beneficial partnership. Not only for each country, but also contributing to the global economy.

“On this good occasion, allow me on behalf of the Government and people of Indonesia to convey my deepest congratulations to the Government and people of China on the 75th anniversary of the founding of the People’s Republic of China,” concluded Airlangga.

September 20, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7549102/airlangga-sebut-kerja-sama-ri-china-perkuat-ekonomi-kedua-negara)

PT Gaya Makmur Tractors (GM Tractors) inaugurated its new office building in Kendari City. GMTractors also launched the environmentally friendly and energy-efficient XCMG EV (electric vehicle) product with the 5-ton class 968 Wheel Loader Model with a 3 cubic bucket capacity. GM Tractors President Director Rachmansyah admitted that he was very enthusiastic because GM Tractors had inaugurated its new office building in Kendari City which had existed since 2013.

“With the inauguration of the new GM Tractors building, it is hoped that the team’s performance will be improved to be more enthusiastic and professional and can meet the needs of customers in the Sulawesi region, especially Kendari City,” said Rachmansyah in a written statement, Thursday (12/9/2024).

The Kendari Branch Office is equipped with parts and service facilities. GM Tractors also sells heavy equipment with after-sales service in one unit. On that occasion, continued Rachmansyah, his party also presented the XCMG EV product as an environmentally friendly and energy-efficient electric heavy equipment vehicle. GM Tractors sees Kendari as the largest nickel mining contributor in Indonesia whose growth is increasing rapidly.

“We see that the high demand for nickel supply requires fast, effective and efficient mining activities in its operations, this can certainly be implemented with the support of strong and skilled human resources in the mining sector and also the support of reliable and quality heavy equipment. GM Tractor, which has the motto Serve With Heart, is always committed to providing maximum heavy equipment in several sectors. GM Tractors is optimistic that the market potential for this EV product will be increasingly needed in the future,” he added.

In the Indonesian market, XCMG mining equipment has been gradually shipped to mining projects in Sumatra and West Kalimantan Island, South Kalimantan, East Kalimantan and other mining areas.

At the same time, XCMG has also launched electric mining equipment, electric mining vehicles and electric loaders have been shipped for use in low-carbon nickel mining projects in Sulawesi, Indonesia. XCMG has also launched electric-based products in stages, for example, electric-based mining trucks and wheel loaders that have been used in the Low Carbon Nickel Mining Project in Sulawesi, Indonesia.

For information, GM Tractors is the only distributor of Chinese heavy equipment products in Indonesia, namely XCMG with various types of products, including; Excavator, Wheel loader, Motor grader, Mobile Crane, Crawler Crane, Mounted Crane, and so on. Until 2024, GM Tractors branch offices and representatives have been spread across 20 cities in Indonesia, from the islands of Sumatra, Java, Bali, NTT, Kalimantan and Sulawesi.

September 12, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7537564/gm-tractors-resmikan-gedung-kantor-baru-di-kendari-luncurkan-produk-ev)

PT Bank Negara Indonesia (Persero) Tbk or BNI is committed to expanding its banking service reach globally. With a focus on markets that have close ties with Indonesia and significant growth potential, the company inaugurated the BNI Representative Office in Sydney, Australia, and is also the first bank representative from Indonesia to open an office in Australia. Deputy Minister of Foreign Affairs of the Republic of Indonesia, Pahala Mansury stated that the presence of the BNI representative office in Sydney will facilitate increased trade between Indonesia and Australia.

“Moreover, currently Indonesia and Australia are comprehensive strategic partners, both in trade and investment, especially in strategic sectors,” said Pahala, in a written statement, Thursday (5/9/2024).

Meanwhile, BNI President Director, Royke Tumilaar said that BNI does have an internationalization plan that aims to expand the reach of banking services and strengthen its global presence. In order to achieve this goal, BNI has established several overseas offices in various strategic countries and will continue to expand to potential countries that are Indonesia’s trading partners.

“Today is a historic moment for us, Bank Negara Indonesia, because with the inauguration of the Representative Office in Sydney, BNI is further strengthening its presence in the international arena,” said Royke.

There are several strategic reasons why BNI chose Sydney as the location for its new office for operations. First, Sydney is one of the main financial centers in the Asia-Pacific region, so by operating in Sydney, BNI can strengthen its presence in the international financial market and more easily access various global finances.

Second, Sydney is the business and economic center in Australia which offers many opportunities for business collaboration and investment. In addition, there are many potential business transactions carried out by Indonesian companies expanding their businesses in Australia and vice versa.

Third, the Indonesian diaspora community in Sydney is quite strong, around 42% of the Indonesian diaspora live in Sydney. Thus, BNI’s presence allows the company to better serve the banking needs of this community and strengthen relations with the Indonesian community in Australia.

The fourth reason, Australia offers access to new and different markets from those previously worked on by BNI, allowing BNI to more effectively map and explore in the region.

Royke believes that with the inauguration of this representative office, BNI will be increasingly able to provide the best service and strengthen bilateral relations between Indonesia and Australia. BNI Sydney can help facilitate or provide advisory related to investment between the two countries by providing market information, introducing potential investors, and offering banking solutions that support direct investment in strategic sectors.

BNI Sydney can also function as an information center for Indonesian and Australian entrepreneurs who want to explore new business opportunities. By holding seminars, workshops, and networking sessions, BNI can bring together business actors from both countries to establish mutually beneficial cooperation.

September 5, 2024, detikFinance

(https://finance.detik.com/moneter/d-7526153/bni-resmikan-kantor-perwakilan-sydney-jadi-bank-ri-pertama-di-australia)

Indonesia is currently still pushing various policies to make the vision of “Golden Indonesia 2045” a success. The idea, discourse, and concept of the Golden Generation 2045 emerged considering that in 2045 Indonesia will be exactly 100 years old, aka one century of Indonesia. Overall, the Vision of Indonesia 2045 is to realize a better and more equitable level of public welfare with higher human quality, as well as an economy that has increased to become a developed country and part of the 5 largest economic powers in the world. This vision also includes equitable distribution in all areas of development, within the framework of the Unitary State of the Republic of Indonesia which is sovereign and democratic, Indonesia’s investment climate is improved to become one of the best in the Asian region and the world. In achieving these ideals, Indonesia is equipped with various strengths that must be considered.

First, the population with the 4th largest workforce in the world, at 146.6 million. Second, optimizing demographic bonus opportunities. Currently, Indonesia is in the period of the lowest Population Dependency Ratio (Demographic Bonus Peak), which occurs only once in the history of a country’s civilization, so it must be optimized.

UOB Senior Economist Enrico Tanuwidjaja said that Indonesia is the country with the largest economy in Southeast Asia that has the most promising demographic bonus. Indonesia is also a strategic gateway to unlock the region’s economic potential.

“This is due to the advantages of the investment climate in the country. Indonesia is a competitive alternative manufacturing base and at the same time has strong domestic consumption, infrastructure optimization, technology utilization, and the development of a new capital city,” said Enrico.

Third, Indonesia’s strategic location in international trade. In addition, the influence of the season makes Indonesia an agricultural country. Fourth, the abundance of natural resources with large mineral reserves. Where Indonesia is ranked first in Nickel reserves (21 million MT), Bauxite ranked 6th (1 billion MT), Copper ranked 7th (24 million MT), Tin ranked 1st (0.8 million MT).

In terms of economic growth, Indonesia has been able to grow an average of 5.7% per year since 2016 by continuing to carry out structural reforms, utilizing the demographic bonus and technological advances, and increasing economic competitiveness.

Enrico also projected that the Indonesian economy would remain stable until the end of 2024. Bank Indonesia (BI) even projected that the Indonesian economy could grow positively this year in the range of 4.7% to 5.5% amid global uncertainty. The positive growth of the national economy is partly driven by high domestic consumption, especially in seasonal periods such as Ramadan and Eid al-Fitr 2024.

“We remain optimistic that Indonesia will be able to grow slightly from 2023. Our assumption remains the same, at 5.2%, supported by government consumption, higher government spending, and net exports that are still positive, and hopefully this will provide positive returns from household consumption,” he said.

In 2036, Indonesia is estimated to become a high-income country and the 5th largest gross domestic product in 2045. High and inclusive economic growth will increase the number of middle-income class to around 70% of Indonesia’s population in 2045.

Another strength that Indonesia has is driven by investment and trade. In 2045, the ratio of Foreign Direct Investment (FDI) Inflows to GDP is estimated to increase to 4.5% with an average investment growth estimated at 6.4% per year and the role of investment in GDP increasing to 38.1%.

September 4, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20240903083718-4-568619/pesawat-made-in-indonesia-n-219-diborong-kongo)

Congo made an agreement to purchase 5 N-219 aircraft at the 2nd Indonesia-Africa Forum (IAF) and the High-Level Forum on Multi-Stakeholder Partnerships (HLF-MSP) 2024 in Bali. The purchase value of the 5 aircraft made by PT Dirgantara Indonesia reached US$ 66.2 million or equivalent to IDR1.029 trillion (IDR15,556/US$).

“This is one form of how Indonesia is committed to developing the aerospace industry,” said Deputy for Economic Affairs of the National Development Planning Agency (Bappenas)/Ministry of PPN Amalia Adininggar Widyasanti, in Nusa Dua, Bali, quoted on Wednesday, (4/9/2024).

Amalia said the purchase of this aircraft is also one of the significances of the implementation of the IAF and HLF-MSP. According to her, the forum is able to strengthen economic cooperation between developing countries.

“In the HLF-MSP forum, Indonesia has the opportunity to sell products made by the nation’s children,” he said.

Amalia said that efforts to commercialize ‘made in Indonesia’ products would certainly not stop at selling the aircraft. She said that Indonesia would continue to promote domestic products to be able to compete in the international arena.

“The aircraft is made in Indonesia, more than 40% of the components of the N-219 aircraft are domestic,” she said.

On the same occasion, Suharso added that the Congolese government also wanted to learn from Indonesia in preparing plans. The government certainly opens up space to share knowledge for future development.

“They want to learn how to prepare plans. How Indonesia got to where it is today and they are amazed,” said Suharso. Indonesia itself will also learn from Congo about managing Natural Resources.

September 4, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20240903083718-4-568619/pesawat-made-in-indonesia-n-219-diborong-kongo)

(https://www.cnbcindonesia.com/news/20240904081414-4-568926/kongo-borong-pesawat-n-219-buatan-ri-nilainya-rp-102-triliun)

Minister of Transportation Budi Karya Sumadi together with CEO of PT KAI (Persero) and Acting Governor of West Java Bey Triadi Machmudin opened the 44th ASEAN Railway CEO Conference in Bandung, Wednesday, Tuesday (3/9) which marked the start of the four-day activity (2-5 September 2024). The 8 CEOs came from Keretaapi Tanah Melayu Berhad (Malaysia), Vietnam Railways (Vietnam), Ministry of Public Works and Transport (Cambodia), Lao National Railways (Laos), Philippine National Railways (Philippines), Myanmar Railways (Myanmar), State Railway of Thailand (Thailand), and PT Kereta Api Indonesia (Persero) (Indonesia).

Budi appreciated PT KAI and all partners and stakeholders in ARCEO’s Conference 2024. He hopes that all participants who attend can provide very valuable input for the development of the ASEAN transportation sector, especially railways.

“It is an honor for me to join other distinguished speakers to share my views on this very timely and relevant topic for our beloved railway sector. We all hope to gain valuable input and hopefully we can share insights with each other today,” said Minister Budi at the Pullman Hotel, Bandung, as stated in a written statement, Tuesday (3/9/2024).

On that occasion, Budi said that currently Indonesia is experiencing very significant development in the railway sector with the operation of the Jakarta-Bandung Whoosh High-Speed ​​Train. Then in terms of urban railways, Indonesia is trying to expand our MRT network with ongoing construction plus the Jabodebek LRT, and the latest is the Autonomous Rail Transit in the Archipelago as the next National Capital. These lines, he said, will complement the existing urban railway network in Jakarta and are expected to be a very good solution for public mobility.

At the same location, CEO of PT KAI (Persero) Didiek Hartantyo revealed that the output of the 44th ARCEOs’ Conference was to strengthen relations and cooperation between railway operators and industry players in ASEAN. Didiek emphasized that together they can achieve something more and truly embody the spirit of ASEAN, namely mutual benefit, shared success, and shared resilience to various challenges that arise.

“This year, our theme is ‘Driving Sustainability with Digital Innovation’. We believe this theme stems from the global challenges we face, including the urgent need to address climate change, improve operational efficiency, and meet the increasing demand for more sustainable transportation options. Moreover, technological developments and changes in customer demand play an important role in shaping our focus,” said Didiek.

Southeast, with almost all ASEAN countries committed to net zero emissions covering 91% of carbon output in the region, which for railways, this translates into an urgency to align operations with these goals. During the four days of the 44th ARCEOs Conference, Didiek said they will engage in discussions on important topics, exchange ideas, and refine strategies for a sustainable future for the railway industry, with a special focus on ASEAN.

“We are also excited to offer attendees a cultural experience that showcases the beauty and traditions of Indonesia. Such as cultural performances and traditional dances with authentic Javanese cuisine. A tour of Mount Tangkuban Perahu, trying Whoosh which offers stunning views.

September 3, 2024, detikFinance

(https://news.detik.com/berita/d-7522466/menhub-buka-asean-railway-ceo-conference-ke-44-di-bandung)

(https://finance.detik.com/infrastruktur/d-7523818/8-ceo-operator-kereta-se-asean-jajal-kereta-cepat-whoosh)