Author: admingentala

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Indonesia Secures IDR 120 Trillion Investment Commitment from China

Minister of Investment and Downstream/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani continued his meeting with 8 companies during his visit to the People’s Republic of China (PRC) on 18-20 December 2024. The meeting is claimed to have succeeded in recording new investment commitments of US$ 7.46 billion or IDR 120 trillion.

“Several meetings held in Hangzhou, Quzhou and Beijing have succeeded in recording a total new investment commitment of US$ 7.46 billion or equivalent to IDR 120 trillion,” said Rosan in a written statement, Monday (12/23/2024).

Meeting with Geely Auto Group: a meeting at the Geely Auto Group production facility discussed potential investments in the development of the automotive industry in Indonesia. One of the leading global automotive manufacturers is said to have committed to collaborating on the assembly of the electric car industry with Indonesian companies.

Meeting with Zhenshi Holding Group Co Ltd: The second company visited was Zhenshi Holding Group Co Ltd which has invested in several nickel smelting projects, including in North Maluku and Morowali. Its subsidiary, Jushi Group, is one of the largest fiberglass producers in the world. Jushi Group plans to make a new investment of US$ 1 billion (first phase) in the fiberglass industry, with an estimated workforce absorption of 4,500 people.

Meeting with Wankai New Materials (Zhink Group): The third meeting with Wankai New Materials which is part of Zhink Group. The meeting was to discuss investment interest in the petrochemical derivative industry sector. The total investment plan reaches US$ 1 billion which will be carried out in three stages. Zhink Group itself is the 3rd largest PET (Polyethylene Terephthalate) producer in China and the 5th largest in the world.

Meeting with Hongshi Holding Group: The fourth meeting with Hongshi Holding Group which plans to develop an industrial area that will produce silicon, polysilicon (raw material for solar panels), batteries and their components, and a 2 gigawatt Steam Power Plant (PLTU). The plan is that the construction of this new investment worth US$ 5 billion will be carried out in stages.

Meeting with Huayou Holding Group: Huayou’s investment development in Indonesia is said to be quite large with a total of 15 projects and a total of 20,000 employees. Huayou is working with several domestic partners including Antam, MIND ID, Merdeka Battery Materials and Vale Indonesia. Currently, Huayou’s project locations are spread across three main locations, namely Indonesia Morowali Industrial Park, Indonesia Weda Bay Industrial Park, and Indonesia Pomalaa Industry Park. In the future, it will be developed in Sorowako and Buli. Huayou’s total investment in Indonesia is said to have reached US$ 6.3 billion and has succeeded in integrating smelter mining, refining and precursors.

Meeting with CEEC, CITIC and Zhuhai Hongwan Ocean Fisheries: The first meeting with China Energy Engineering Corporation (CEEC) discussed investment potential in the new and renewable energy (EBT) sector, especially related to the utilization of offshore wind resources in Indonesia. The meeting with CITIC discussed potential cooperation in several government programs, including supporting the construction of 3 million houses per year, food security through increasing rice and corn productivity, and energy security through revitalizing oil wells. The meeting with Zhuhai Hongwan Ocean Fisheries, which stated that it would cooperate with local partners to develop investment in the fisheries sector in eastern Indonesia with a total investment of US$ 460 million.

December 23, 2024, detikFinance

(https://finance.detik.com/industri/d-7699270/ri-kantongi-komitmen-investasi-rp-120-t-dari-china-ada-pemilik-volvo)

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Indonesia Tourism Outlook 2025: Challenges Towards 8% GDP Target

Indonesia has set an ambitious economic growth target of 8% in the 2025-2029 period. In an effort to support this vision, the tourism sector is expected to become one of the main pillars. To what extent are the targets and steps currently formulated sufficient to ensure that tourism becomes a significant contributor to national economic growth?

In the draft document of the National Medium-Term Development Plan which is planned to be announced in 2025, the target contribution of the Gross Domestic Product (GDP) of the tourism sector to national GDP will gradually increase, from 4.6% in 2025 to 5% in 2029. On the other hand, the foreign exchange target from this sector is also set at USD 32 billion in 2029. Although it seems realistic, this challenge is still much lower compared to Indonesia’s neighboring countries such as Vietnam, for example, which has set the contribution of tourism to their National GDP to be above 15%, the Philippines 8.6%, and Thailand 7.24%. The latest data shows that the number of foreign tourists in Indonesia is at 13 million per year with an average expenditure of USD 1,200 per tourist, generating foreign exchange of around USD 15.6 billion. To reach USD 32 billion in 2029, an increase in visits of up to 20 million foreign tourists per year with an average expenditure of USD 1,600 is needed.

The figure of USD 32 billion in tourism foreign exchange in 2029 shows that this sector must move much more aggressively than its current performance. However, when compared to the foreign exchange needs of the tourism sector to support economic growth of 8%, which is around IDR 3,741 trillion (or around USD 250 billion) over five years, the contribution of tourism based on the target set by the Ministry of Tourism above still seems relatively small. The Main Challenges of Indonesian Tourism are as follows:

1. Recovery after the COVID-19 pandemic: Diversification of tourism products is the key to recovery, especially in increasing global competitiveness while continuing to focus on strengthening the domestic market.

2. Unequal Distribution of Tourists: Bali dominates with 45% of international visits, while Maluku and Papua only receive less than 3% of tourists. This imbalance exacerbates the potential risk of overtourism in Bali and hinders the development of alternative destinations. The government needs to improve infrastructure and promotion in other regions of Indonesia such as Sumatra, Kalimantan, Sulawesi, Maluku, and Papua.

3. Improving the Quality of Tourism Human Resources

As many as 60% of tourism workers have not been trained according to international standards. Lack of foreign language skills, such as Mandarin and English, is an obstacle in serving the global market. Investment in training and certification is an urgent strategic step.

4. Digitalization of Tourist Destinations

Digitalization has only covered 40% of tourism MSMEs, while Bali has reached 75%. Business actors in the regions need to be supported with technology training to improve operational efficiency and access to international markets.

5. Lack of Inter-Regional Connectivity

Only 35% of priority tourism areas have adequate transportation access. Eastern Indonesia, such as Sulawesi, Papua and Maluku, for example, still need improved connectivity to strengthen the development of new destinations.

6. Lack of Tourism Product Diversification

As many as 70% of foreign tourists only visit Bali. Culinary, health and event-based tourism have not been optimally developed. Product innovations such as ecotourism and historical tourism, religious tourism must be strengthened to attract a wider market.

7. Tourist Safety and Comfort

Indonesia is ranked 50th in the world tourism security index. Law enforcement and training of tourism police personnel are crucial steps to provide a sense of security in tourist destinations and reduce the risk of naughty tourists disturbing order.

8. Digital Transformation of MSMEs

Only 40% of MSMEs utilize digital platforms, while 80% of international tourists rely on technology for travel decisions. Digital transformation training needs to be prioritized.

December 23, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/opini/20241223070226-14-598032/outlook-pariwisata-indonesia-2025-25-tantangan-menuju-target-pdb-8)

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Indonesia Exports Fish Worth IDR 76.8 Trillion, America and China the Most

The Ministry of Marine Affairs and Fisheries (KKP) reported that the value of fishery exports from January to October 2024 reached US$ 4.8 billion or IDR76.8 trillion (exchange rate of IDR16,000). This value increased compared to the same period last year of US$ 4.61 billion.

The Director General of Strengthening the Competitiveness of Marine and Fishery Products (PDSPKP) of the Ministry of Marine Affairs and Fisheries, Budi Sulistyo, is targeting that by the end of 2024, the value of Indonesian fishery exports will reach US$ 5 billion.

“Regarding the strengthening of the marketing of fishery products that we get in 2024, the performance of Indonesian fishery exports for the period January to October 2024 is currently recorded as of October at US$ 4.81 billion. This (has experienced) an increase in the same period. We hope that by the end of the year, until December, it will reach more than US$ 5 billion,” said Budi in the 2024 KKP Year-End Achievement Press Conference at the Mina Bahari IV Building, Central Jakarta, Monday (16/12/2024).

Furthermore, Budi explained that there are five largest destination countries, including the United States (US) with an export value of US$ 1.56 billion, China with an export value of US$ 0.99 billion, ASEAN with an export value of US$ 0.65 billion, Japan with an export value of US$ 0.49 billion, and the European Union of US$ 0.35 billion. The most exported fishery commodities are shrimp, tuna, skipjack tuna, squid, cuttlefish, octopus, crab, and seaweed.

“Commodities are dominated by shrimp, followed by skipjack tuna, squid, crab and seaweed,” explained Budi.

To boost fisheries exports next year, his party has compiled and analyzed market performance and marketing, especially for skipjack tuna and tilapia commodities. This analysis was conducted to see potential export destination countries. Based on the results of the analysis, the demand for US tuna is predicted to increase by 300 thousand tons with the form of frozen whole superior products. Then in the European Union, the demand for tuna is estimated to reach 889 thousand tons with the form of canned tuna as the superior product.

“Tuna in Japan is positioned (Indonesia as a tuna exporting country in Japan) number 4. While the demand in 2025 is predicted to be 249 thousand tons or an increase of 4%. Well, we should be able to capture the market from this potential increase. So is tilapia. We will convey this kind of information to business actors. This is to improve export performance in the future, and we will always improve our capabilities,” explained Budi.

December 16, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7689116/ri-ekspor-ikan-rp-76-8-t-paling-banyak-ke-as-china)

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Indonesia Partners with Japanese Companies to Boost Geothermal Energy Potential

Indonesia is increasingly serious about developing geothermal energy potential to support national energy independence. In the Indonesia-Japan energy forum in Bali, PLN Indonesia Power collaborated with a Japanese company, INPEX Geothermal, to accelerate the development of this underutilized green energy resource. The agreement is a real step by the government in achieving the energy transition target while reducing dependence on fossil fuels. This collaboration was marked by the signing of a memorandum of understanding between PLN Indonesia Power which was signed directly by the President Director of PLN Indonesia Power Edwin Nugraha Putra and the Director of INPEX Geothermal, Ltd Yasutoshi Seki.

Secretary General of the Ministry of Energy and Mineral Resources Dadan Kusdiana who opened IJEF 2024 and witnessed the signing of the memorandum of understanding between PLN Indonesia Power and INPEX Geothermal said that the New Prabowo-Gibran Government has launched eight main missions called “Asta Cita”, which is designed to achieve the vision of “Together Towards a Golden Indonesia 2045”. One of these missions is energy self-sufficiency.

“Strong bilateral cooperation between Indonesia and Japan in the energy and mineral sector offers a path to a sustainable and resilient energy future. In addition, Indonesia is also trying to achieve energy self-sufficiency by utilizing its abundant natural resources, we collaborate with technological expertise from Japan,” said Dadan in an official statement, Friday (6/12/2024).

Dadan continued, at several international events such as APEC and the G20 Summit, President Prabowo Subianto emphasized the importance of green energy independence, by replacing fossil fuels with renewable energy and the importance of cooperation in the energy transition. Indonesia’s green energy potential is also quite large, such as geothermal energy with a potential of 23 GW, this country has only utilized 11% of its capacity.

“Likewise, although the potential for solar energy exceeds 3,000 GW, its application is still a challenge. We also have hydropower potential, especially in Eastern Indonesia and very large bioenergy potential,” added Dadan.

Meanwhile, on the same occasion, the President Director of PLN Indonesia Power said that as a subholding generation company, PLN Indonesia Power has a major role in developing green energy to accelerate the energy transition and achieve the Net Zero Emission target by 2060. One of the breakthroughs made by the corporation is to collaborate with parties that have competence and experience such as INPEX Geothermal.

“INPEX Geothermal has quite a long experience in developing geothermal energy. With this collaboration, we can further improve our competence in developing geothermal energy,” said Edwin.

Indonesia’s efforts to reduce carbon emissions are also in line with the commitment of the Japanese Government. Deputy Commissioner for International Affairs of the Ministry of Economy, Trade and Industry (METI) Japan Masanori Tsuruda said that Prime Minister Shigeru Ishiba in October 2020 declared Japan’s Efforts to reduce greenhouse gas (GHG) emissions by 46 percent by 2030 and to zero by 2050.

“Japan will continue to strive hard in its challenge to meet the noble goal of reducing global emissions. To achieve the target of zero carbon emissions by 2050, Japan will accelerate the energy transition, reduce the use of fossil fuels and switch to new renewable energy. We will do this through various channels,” said Masanori.

December 6, 2024, detikFinance

(https://finance.detik.com/energi/d-7674582/ri-gandeng-perusahaan-jepang-genjot-potensi-energi-panas-bumi)

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Indonesia and Japan to Cooperate on Transportation Infrastructure

Minister of Transportation Dudy Purwagandhi met with the Japanese Ambassador to Indonesia Yasushi Masaki to discuss the continuation of cooperation between the two countries in the transportation sector. Japan itself has made significant contributions to transportation projects in Indonesia, such as the development of railway systems, human resource development and training programs, and the exchange of knowledge in the field of technology.

Dudy said that the cooperation between the Ministry of Transportation and the Japan Ministry of Land, Infrastructure, Transport and Tourism (MLIT) was strengthened through the signing of a Memorandum of Cooperation (MoC) in the transportation sector on January 19, 2024. He also said that this cooperation has become more intensive, especially in the development of the Jakarta MRT project, Patimban Port, and the Bekasi Proving Ground

“We hope to increase more intensive cooperation with Japan, especially in the development of the Jakarta MRT project, Patimban Port, and the Bekasi Proving Ground,” said Dudy in his statement, quoted Tuesday (3/12/2024).

Regarding the Jakarta MRT project, Dudy hopes that with the support of the Japanese Ambassador, the MRT project can run smoothly and according to plan, so that it can improve the connectivity of the Jabodetabek area.

“I hope that with the support of the Japanese Ambassador, the Jakarta MRT project can run smoothly and according to the targets that we have agreed upon together. In addition to the construction of the MRT, I also hope that the connectivity of the Jabodetabek area can be improved through the integration of the main line with feeder services,” he added.

In addition to a number of infrastructure project developments, Dudy also conveyed the potential for future cooperation between the two countries, such as in terms of developing human resources (HR) in transportation through internship program cooperation.

“Among them are student and teacher exchanges from schools or polytechnics under the Ministry of Transportation, or guest lecturer programs from Japanese experts in the field of transportation. This aims to provide international experience that can enrich their skills and insights in the field of transportation,” explained Dudy.

December 3, 2024, detikFinance

(https://finance.detik.com/infrastruktur/d-7668244/ri-jepang-bakal-kerja-sama-infrastruktur-transportasi)

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Indonesia and Canada Work on Critical Minerals and Energy Transition

Minister of Energy and Mineral Resources, Bahlil Lahadalia together with the Canadian government established bilateral cooperation through a Memorandum of Understanding (MoU) regarding critical minerals to the energy transition in Indonesia. The cooperation was carried out between Bahlil and the Minister of Export Promotion, International Trade, and Development of Canada Mary Ng.

The memorandum of understanding covers several programs, ranging from the implementation of environmental, social, and governance (ESG) standards, reducing greenhouse gas (GHG) emissions through clean technology, to strengthening trade and investment in the mining sector.

Bahlil said that the bilateral cooperation is expected to support energy transition projects in Indonesia and encourage economic growth in Indonesia and Canada. Furthermore, Bahlil said that the cooperation will also encourage the fulfillment of energy needs in Indonesia which are considered to continue to increase. This is also said to be in line with the projected growth in domestic electricity needs reaching 61 Giga Watts (GW).

“Our current electricity is 91 GW with economic growth below 6%. President Prabowo’s target for future economic growth is 8%, so we need an additional 61 GW to support that target,” Bahlil explained in the Energy Transition Roundtable (ETR) session, quoted from an official statement, Tuesday (3/12/2024).

In addition, cooperation between Indonesia and Canada is also considered in line with the energy transition program in Indonesia which is currently being drafted through the revision of the 2025-2033 Electricity Supply Business Plan.

“We designed the 2025-2033 Electricity Supply Business Plan with a target of 60% new renewable energy. We are committed to achieving net zero emissions by 2060, even pushing for it to be faster in 2050,” he added.

Bahlil also expressed his optimism about the potential for cooperation with Canada in the field of nuclear energy. Nuclear energy itself, said Bahlil, will begin to be implemented in Indonesia in 2032.

“We know that Canada is one of the leading countries in nuclear development. The House of Representatives has approved the use of nuclear power, and we are targeting the regulation to be completed in 2025. Its implementation will begin gradually in 2032,” said Bahlil. In addition, Bahlil also emphasized the importance of this cooperation to maintain a balance between advanced technology and affordable prices.

On the other hand, the Minister of Export Promotion, International Trade, and Development of Canada Mary Ng explained that through this bilateral collaboration, her party would support the sustainable energy transition in Indonesia.

Mary revealed that the Canadian government had actually prepared funds of up to 5.3 billion Canadian dollars (CA$) equivalent to IDR 60.14 trillion (assuming an exchange rate of IDR 11,348 per CA$) to support the world’s energy transition program, including one for Indonesia.

“Our commitment to supporting Indonesia’s fair and sustainable energy transition is substantial. This includes our global climate funding of CA$ 5.3 billion, including Indonesia over the past five years,” said Mary on the same occasion.

Mary said that the funding provided by the Canadian government was partly to support key projects with the Asian Development Bank, such as the Sarulla geothermal power plant in North Sumatra and wind and solar power plants in South Sulawesi and Lombok. Mary also said that Canada is proud to be a partner in the Just Energy Transition Partnership (JETP), which aims to mobilize public and private financing of up to US$ 20 billion to support Indonesia’s energy transition.

December 3, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20241203122901-4-592960/ri-gandeng-kanada-garap-mineral-kritis-transisi-energi)

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Indonesia-Canada Finalize ICA-CEPA Trade Agreement

Indonesia and Canada have substantially completed the Comprehensive Economic Partnership Agreement (CEPA) trade agreement. This agreement is expected to increase bilateral trade between the two countries.

The signing of the declaration of completion of the CEPA negotiations between Indonesia and Canada was carried out by the Indonesian Minister of Trade (Mendag) Budi Santoso and the Canadian Minister of Export Promotion, International Trade, and Economic Development Mary Ng.

“Today marks two important events, namely the signing of a joint declaration on the completion of the Canada-Indonesia Comprehensive Partnership Agreement negotiations, and the start of Team Canada’s largest trade mission,” said Mary at a press conference in Senayan, Central Jakarta, Monday (2/12/2024).

“This important moment reflects the strong and broad relationship between Canada and Indonesia, which was strengthened by last month’s productive meeting between Prime Minister Justin Trudeau and President Prabowo Subianto. Their discussions highlighted shared priorities, particularly in addressing food and energy security, and encouraged collaboration that benefits both countries,” she said.

Mary then said that Canada is committed to providing technical assistance and capacity building to facilitate the implementation of CEPA in Indonesia.

“In this agreement there is a commitment of US$25 million over five years, and this really reflects our commitment and belief that your (Indonesia’s) success is our success,” he added.

Mary said that they were very pleased that the support and investment mechanism would be created to support the effective implementation of the special trade agreement in Indonesia.

“This support will really drive economic growth for all of our businesses of all sizes and really make trade work for everyone in our economy. So, we are very excited about that,” he added.

Indonesia itself is Canada’s 22nd largest trading partner worldwide and the third largest among Southeast Asian countries.

In 2023, two-way trade in goods between Canada and Indonesia was worth 5.1 billion Canadian dollars (IDR57.6 trillion), while Canadian exports of goods to Indonesia were worth 2.3 billion Canadian dollars (IDR25.9 trillion). This makes Indonesia Canada’s largest export market that year among ASEAN members.

December 2, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20241202151947-4-592731/indonesia-kanada-rampungkan-perjanjian-dagang-ica-cepa-apa-untungnya)

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Indonesia in Talks with US and Russia for Nuclear Power Technology

Indonesia is in talks with the United States and Russia about acquiring technology to develop nuclear power plants, a deputy minister told Reuters on Friday.

Southeast Asia’s biggest economy is looking at operating nuclear power plants as early as 2036 to cut its dependence on fossil fuels, said Vivi Yulaswati, a deputy at the National Development Planning Ministry. The country is open to small modular reactors and conventional nuclear technology, she said in a video interview. When asked if orders had been placed, Vivi said it was too early for that to have happened. “We have to get a blessing from the president, and of course, we have to talk with international partners. I think, very long journey still,” she said.

Nuclear power plants have been controversial in Indonesia as the country is prone to earthquakes. Thirty countries, nine of which are in Asia, use nuclear power for electricity generation, data from energy think tank Ember shows.

Indonesia, a nation of over 275 million people, accounts for the lion’s share of increasing coal use for power generation in Southeast Asia. More than half of its current capacity is powered by coal and clean energy sources including hydropower account for less than 15 percent. The country, however, plans to offer international investors opportunities to build 75 gigawatts (GW) of renewable power over the next 15 years. But funding remains an issue.

Indonesia was promised US$20 billion as part of the G7’s Just Energy Transition Partnership (JETP) unveiled in 2022, but very little money has been disbursed and that slow progress has hampered its efforts to cut emissions. Vivi said JETP has so far approved grants for 33 decarbonization projects in Indonesia worth $217.8 million, including one that would increase the number of electric vehicles in Bali. Another six projects worth $78.4 million are currently under discussion, she said. Loans of up to $6.1 billion have been approved, mainly to upgrade the national grid and develop the renewable energy sector, she added.

The official said the interest rates for the loans have yet to be finalized. Rates on loans have been a contentious topic, with Indonesian officials blaming Western nations for not providing concessional funding under JETP. The JETP projects have yet to be implemented, she said, adding that funding will start next year which is when Indonesia’s next 5-year economic planning cycle will begin.

November 30, 2024, The Jakarta Post

(https://www.thejakartapost.com/business/2024/11/30/indonesia-in-talks-with-us-russia-for-nuclear-power-technology.html)

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Existing in Vietnam, Indonesian Cable Industry Ready to Penetrate Global Market

The Ministry of Industry is actively introducing the capabilities of the domestic industry at various international events. The goals include expanding market access, opening up opportunities for cooperation, and attracting investment. This effort, for example, is through facilitating six national wire and cable industries to participate in the 2024 Wire and Cable Show Vietnam exhibition in Hanoi, on November 20-22, 2024.

“This exhibition is an important event for Indonesia to promote the domestic wire and cable industry which already has a high Domestic Component Level (TKDN) so that it can open up opportunities for market access and involvement in the global supply chain,” said the Director of the Metal Industry, Directorate General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) of the Ministry of Industry, Rizky Aditya Wijaya in his official statement, written Wednesday (11/27/2024).

Based on records from the Indonesian Cable Manufacturers Association (Apkabel), the capabilities and capacity of the fiber optic cable industry in Indonesia are already qualified and have been able to produce all types of fiber optic cables from small to large sizes. Whether it is for indoor, air and ground use, or duct, as well as submarine cables.

Currently, the total production capacity of the fiber optic cable industry reaches 15 million ScKm (Kmfiber). All fiber optic cable processes including coloring, tubing, stranding, armoring, and sheathing or jacketing can be done 100 percent domestically. The Director of Metal Industry explained that the cable industry sector as one of the downstream products of copper is a sector that must continue to be developed to support copper downstreaming. This is in line with the Asta Cita of President Prabowo Subianto’s Government, one of the points of which is to continue downstreaming and industrialization to increase domestic added value.

The 2024 Vietnam Wire and Cable Show as one of the largest wire and cable industry exhibitions in Vietnam provides an exhibition space of almost 3,500 m2 and displays around 132 booths with 92 exhibitors. Wire and Cable Show Vietnam 2024 is a combination of industry business exhibition and forum, R&D, manufacturing design, application development, and global supply chain connectivity.

During the exhibition, Indonesian industries also obtained several potential buyers in Vietnam for several products, such as flame retardant cables, photovoltaic cables, and fiber optic cables. Indonesia’s participation in the Wire and Cable Show Vietnam 2024 is also expected to attract new consumers for domestic manufacturers, especially the cable industry, so as to expand market access and penetrate the global supply chain.

November 27, 2024, detikFinance(https://finance.detik.com/industri/d-7658574/eksis-di-vietnam-industri-kabel-ri-siap-tembus-pasar-global)

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British Oil Giant Signs IDR 56.5 Trillion Tangguh Project Contract

British Petroleum (BP) signed an Engineering, Procurement, Construction, and Installation (EPCI) onshore and offshore contract with two contractors worth US$ 3.6 billion or around IDR 56.5 trillion (exchange rate of IDR 15,700/US$). The first contractor is Saipem in a consortium with partner PT Meindo Elang Indah, and the second contractor is JGC Holdings Corporation, through its local subsidiary PT JGC Indonesia.

The contract signing was carried out today (26/11) by Procurement VP bp James Tehubijuluw, while the signatories from Saipem were Paolo Evangelista and Vincent Chan from Meindo. The signatories from JGC Indonesia were Soeryadi. Previously, the announcement of the final investment decision (FID) worth more than US$ 7 billion or around IDR 110 trillion for the Tangguh UCC Project was delivered by BP CEO Murray Auchincloss to President Prabowo Subianto in London on November 21, 2024.

The Indonesian government in meeting the increasing energy needs, achieving the national gas production target, and advancing decarbonization efforts to achieve national emission reduction goals. Djoko said that towards the end of 2024, the UCC Project had successfully achieved two important milestones in its development.

First. is the FID decision announced by BP management during a meeting with President Prabowo Subianto in London. Second, is the signing of the EPCI contract for onshore and offshore facilities. He asked BP to learn from the implementation of the Train 3 Project, so that BP must be proactive in addressing emerging problems and discussing them with SKK Migas to find efficient and effective solutions.

Meanwhile, Kathy Wu, BP regional president Asia Pacific, gas & low carbon energy said that the Tangguh Project has the potential to produce 3 trillion cubic feet of additional gas resources to meet the increasing energy needs in Indonesia and Asia, while supporting Indonesia’s decarbonization efforts through the reinjection of around 15 million tons of CO2 in the initial phase.

The Tangguh UCC (Ubadari, CCUS, Compression) project consists of the development of the Ubadari gas field, enhanced gas recovery through carbon capture, utilization and storage (CCUS), and onshore compression. This project also supports Indonesia’s decarbonization agenda by re-injecting around 15 million tons of CO₂ into the reservoir through one of the first CCUS technology applications developed on a large scale in Indonesia. It is projected to create around 6 thousand jobs during construction and provide a positive multiplier effect for the Papuan community. The Tangguh LNG workforce currently consists of 99% Indonesian citizens, 70% of whom are local Papuans.

November 26, 2024, detikFinance

(https://finance.detik.com/energi/d-7657807/raksasa-migas-inggris-teken-kontrak-proyek-tangguh-rp-56-5-triliun)