Author: admingentala

Posted on

Having Super Rare Treasures, Indonesia Becomes China’s Main Competitor

            Indonesia also keeps a super rare ‘treasure’ called Rare Earth Metals (LTJ) or Rare Earth Elements (REE). Based on data from the Ministry of Energy and Mineral Resources (ESDM) as of 2015, the total potential of rare earth metals in Indonesia is estimated at 1.5 billion tons. The potential of these rare earth metals is spread in several areas, especially in the Bangka Belitung Islands, West Kalimantan, Central Kalimantan, Sulawesi, to Papua.

            Citing “Study on Potential Associated Minerals in Tin Mining” released by the Energy and Mineral Resources Ministry of Energy and Mineral Resources Data and Information Center 2017, of the 17 rare earth elements, six elements are indispensable for the development of electric vehicles, namely lanthanum (La ), cerium (Ce), neodymium (Nd) for batteries, praseodymium (Pr), neodymium (Nd), terbium (Tb), and dysprosium (Dy) for generators and electric motors. It is known that obtaining the LTJ can be done in two approaches, namely obtaining from upstream tin mining with a higher grade and lower cost, and from processing tin slag with a relatively lower grade compared to the first one and the cost is relatively higher. In fact, if Indonesia works on and exploits this LTJ seriously, it is predicted that Indonesia will become China’s main competitor in meeting the world’s LTJ demand.

            China is the largest LTJ producer in the world today. This is because China has LTJ deposits in the primary form in the form of by-products from iron ore mining, and secondary in the form of alluvial deposits and lateritic deposits. “Recovery of LTJ will be much greater if it is carried out from upstream of tin mining, capable of reaching 74% by 2045, and Indonesia is predicted to become China’s main competitor in meeting world demand,” reads the executive summary of “The Study of Potential Associated Minerals in Tin Mining” which released by the Ministry of Energy and Mineral Resources in 2017.

            From slag processing, the six highest levels that can be recovered are cerium (16,400 parts per million, ppm), yttrium (13,900 ppm), lanthanum (7,470 ppm), neodymium (6,470 ppm), dysprosium (2,210 ppm), and praseodymium (1,810 ppm). ppm). If the smelter capacity for slag processing is increased to 3,000 tons per year, it will be able to meet world demand up to 1.13% in 2045 amounting to 360 thousand tons. The capacity of 10,000 tons per year can meet world demand around 4.23% in 2056 amounting to 437 thousand tons. 

It should be noted that until now the Government of Indonesia has not issued a special regulation regarding the management of rare earth metals. However, the Director-General of Mineral and Coal (Dirjen Minerba) of the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin, said that currently, the government has formed a team called the rare earth metal-based industry development team. In addition, the government is also preparing a Presidential Instruction (Inpres) to accelerate the development and downstream of rare earth metals.

Feb 08, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20220208112507-4-313699/punya-harta-karun-super-langka-ri-jadi-pesaing-utama-china)

Posted on

International Flights Return to Bali

            Indonesian, Singaporean and Australian airlines have set plans to resume international direct flights to Bali after the government further reopened the island’s borders, addressing a key challenge in efforts to boost economic recovery in the tourist-dependent province. Flagship carrier Garuda Indonesia initiated the opening by resuming its weekly flights from Narita International Airport in Japan to I Gusti Ngurah Rai International Airport in Bali on Feb, 3.

I Gusti Ngurah Rai Airport spokesperson Taufan Yudhistira said the Garuda flight was the first international regular flight to land on the island after nearly two years since Indonesia’s border closed due to the COVID-19 pandemic. “There are some other regular flights that have plans to land in Bali, including Garuda from Haneda Airport in Japan,” he said. He went on to say that Garuda would fly from Japan to Bali every Thursday.

The government has allowed Bali to receive international direct flights from 19 countries since October last year but demand has been lackluster, with Tourism and Creative Economy Minister Sandiaga Uno saying that not a single such flight had been scheduled to the island province until January this year. The absence of international flights was a major roadblock in Bali’s tourism recovery plans as foreign tourists generally spend more than domestic tourists and contribute more toward hotel occupancy rates. International travelers who wanted to go to Bali had to take the costly option of flying and quarantining in either Jakarta or Manado before taking a domestic flight to Bali.

Latest Statistics Indonesia (BPS) data show that Bali’s gross regional product contracted 2.91 percent annually in the third quarter of last year as foreign tourist arrivals plummeted from 36 individuals to zero over the same period. As such, the government announced that it would shorten the mandatory quarantine period to five days from seven starting Feb. 4 for travelers with two doses of COVID-19 vaccine. The government also reopened Bali to international travelers from all countries.

Singapore Airlines has announced that it would start regular direct flights to Bali starting Feb. 16. Meanwhile, Sandiaga said that Emirates and Qatar Airways were among the next batch of airlines that would fly passengers to Bali. Australian low-cost carrier Jetstar has scheduled to commence flights from Sydney and Melbourne to Bali from March 1, while Qantas Airways also plans to open the same route beginning March 28.

Feb 07, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/02/06/international-flights-return-to-bali.html)

Posted on

Indonesian Economy (GDP) Grows 3.69% in 2021

            The Indonesian economy succeeded in the fourth quarter of 2021 being able to grow above 5%. This makes the Gross Domestic Product (GDP) of the country throughout 2021 grow positively in 2021, after the previous year it grew negative (contracted). On Monday (7/2/2022), the Central Statistics Agency (BPS) announced Indonesia’s economic growth data for the fourth quarter of 2021. Throughout October-December 2021, Indonesia’s GDP grew 1.06% compared to the previous quarter (quarter-to-quarter/qtq). Compared to the fourth quarter of 2020 (year-on-year/yoy), the Indonesian economy grew by 5.02%. This brings economic growth throughout 2021 to 3.69%.

            For the record, the market consensus compiled by CNBC Indonesia estimates that the Gross Domestic Product (GDP) of the country in October-December 2021 will grow by 0.98% qtq. Meanwhile, YoY economic growth is estimated at 5.06%. Thus, economic growth throughout 2021 is estimated at 3.65%. Much better than 2020, which was minus 2.07%.

Feb 07, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20220207100733-4-313345/ekonomi-indonesia–pdb–tumbuh-369-di-2021)

Posted on

ARTO flies 5,900%, Jerry Ng is included in the list of the richest Indonesian citizens

            The soaring share price of digital bank PT Bank Jago Tbk (ARTO) has made veteran entrepreneur and banker Jerry Ng among the 50 richest people in Indonesia according to Forbes in 2021. According to Forbes, Jerry Ng is ranked as the 12th richest person in the country in 2021 with a net worth of US$3.2 billion or equivalent to Rp45.92 trillion (assuming an exchange rate of Rp14,350/US$).

            According to Forbes’ explanation, the 56-year-old man’s coffers of wealth came from ownership of shares in Bank Jago. Jerry Ng and his colleagues officially acquired Bank Jago (formerly Bank Artos Indonesia) from the Arto Hardy family on December 26, 2019. This acquisition was carried out by Jerry through PT Metamorfosis Ekosistem Indonesia (MEI). Apart from Jerry, his colleague, Patrick Walujo, also entered ARTO through Wealth Track Technology Ltd (WTT), an investment company based in Hong Kong.

            The ride-hailing giant, Gojek, through PT Dompet Karya Anak Bangsa, has also become part of ARTO’s shareholder with 21.404% ownership since December 2020. Since it was officially controlled by Jerry Ng et al, ARTO’s share price has skyrocketed 5,955.66% to Rp16,775/unit as of Friday (4/2/2022). With this fantastic price spike, ARTO shares are now in the top 5 stocks with the largest market cap, reaching Rp232.09 trillion. Practically, ARTO’s shares are currently one level above the conglomerate Astra group PT Astra International Tbk (ASII) with a market cap of Rp221.65 trillion.

Feb 04, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220204104358-17-312849/arto-terbang-5900-jerry-ng-masuk-daftar-wni-paling-tajir)

Posted on

Indonesia Now Export Biomass to Japan and the European Union

            The largest biomass energy provider in Indonesia, PT Internasional Green Energi, opened access to export its products to Japan and the European Union after the company won the Green Gold Label (GGL) Certificate. The certificate indicates that the production of palm kernel shells for biomass products from the company comes from sustainable sources. International Director of Green Energy (IGE) Dikki Akhmar said that the certificate opened up more access for companies to export biomass products to a number of major import countries, such as Japan and the European Union. So far, many countries and regions have given quite stringent requirements to receive biomass products.

            “We have met international standards regarding the need for sustainability certification for products sold or exported. IGE means that it is credible to export to countries that require sustainability certification,” he said in an official statement, Saturday (29/1/2022). The GGL certificate received by IGE is awarded by the Control Union, a certification body based in Zwolle, The Netherlands. GGL standardization is one of the pioneers of sustainable certification schemes for biomass products that have been recognized and applied worldwide.

            The GGL standardization audit process is carried out covering traceability of oil palm plantations from which shell supplies are supplied, energy producer utilities, including energy and carbon data that must be provided in the entire supply chain system.

Jan 29, 2022, DetikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-5920334/top-ri-kini-bisa-ekspor-biomassa-ke-jepang-dan-uni-eropa)

Posted on

Indonesia Launches G20 Forum on Recovery and Innovation

            Indonesia will raise issues related to economic recovery, innovation, and inclusivity in the Business 20 (B20) forum, which is part of the Group of 20 (G20) agenda, as the country seeks to help facilitate the global exit from the coronavirus pandemic. Shinta Kamdani, who chairs the B20 Indonesia 2022 forum, said that, with those three themes, the discussions would focus on a collaborative recovery and economic growth, on boosting global innovation, and on working toward an inclusive and sustainable future.

            Following the global economic contraction and with millions of people have fallen into poverty due to the pandemic, Indonesia had to facilitate cross-border cooperation not just to revive the economy, but also to improve the global healthcare system, Shinta said. “The world needs to keep spurring collaboration, innovation, and inclusion as it transitions out of the pandemic,” Shinta said during the B20 Indonesia inception meeting on Thursday. “This represents the main foundation for B20 Indonesia this year.”

            Shinta said the B20 Indonesia forum was expected to host about 2.000 members, 37% of whom would be female leaders. Indonesia has formed several task forces to make policy recommendations on issues ranging from energy, sustainability, and climate change to finance, trade, investment, and infrastructure, as well as to digitalization, the future of work and education, integrity and compliance, and to women in business.

Jan 29, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/01/28/indonesia-launches-g20-forum-on-recovery-innovation.html)

Posted on

IMF Prediction: The Indonesian economy grew 5.6% in 2022

            The International Monetary Fund (IMF) issued the latest forecast on the Indonesian economy this year and in 2023. The IMF estimates that the Indonesian economy is able to grow 5.6% and 6% respectively. The IMF said the Indonesian economy was supported by the still-high price of global commodities, easing of mobility and sustainable policies, and acceleration of vaccination.

            “Indonesia continues to respond with brave, comprehensive, and well-coordinated policy measures to protect the lives and livelihoods of the impact of the covid pandemic,” the IMF wrote. Even though the risk of uncertainty is still high. Among other things, the presence of the latest Covid-19 variant, Omicron was able to reprimand the mobility and economic recovery. Then there is also a risk of changes in developed countries that become more stringent, so they are able to make the financial market shake.

            Even though there is a positive side, the price of commodities is still at a high level and helps state revenue. Especially next year is the last for the deficit of the State Revenue and Expenditure Budget (APBN) above 3% of GDP. In terms of inflation, the IMF estimates to be maintained at a low level. There is an increase but will take place gradually this year.

Jan 26, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20220126105848-4-310528/ramalan-imf-ekonomi-ri-tumbuh-56-pada-2022)

Posted on

Foxconn, other firms look to enter Indonesia’s EV market

            Taiwan-based companies and local firms have inked an US$8 billion (Rp114 trillion) investment deal to develop Indonesia’s electric vehicle ecosystem. Foxconn, a contract manufacturer known for Apple’s iPhone, and Gogoro, an electric scooter, and battery swap technology company, represent the Taiwan side in the deal, while coal giant Indika Energy and state-owned Indonesia Battery Corporation are the Indonesian side.

These companies will develop a wide range of EV segments, from cars, two-wheelers, and buses to battery production and supporting industries, namely energy storage systems, battery exchange or swap stations, battery recycling as well as research and development. “Under President Joko Widodo’s second term, Indonesia is focusing on encouraging sustainable investment in green energy and industry,” Investment Minister Bahlil Lahadalia said in a statement on Friday, adding that the government would take care of all of the required permits. The deal brings Indonesia – which holds almost a quarter of the global nickel reserves – a step closer to becoming a key player in the battery industry. The government has been defending its nickel ore export ban as it seeks to protect its reserves of the metal to attract EV investment, among other purposes.

State-Owned Enterprises (SOEs) Minister Erick Thohir said in a statement that the investment would help Indonesia achieve its net-zero emissions target by 2060, while also creating a multiplier effect for the benefit of local companies and paving the way for EV technology transfer. Foxconn chairman Liu Young-Way said they wanted to contribute to developing the local EV ecosystem and related energy market in Indonesia. “We hope that by sharing our technology and experience, we can help create more opportunities for local companies in the new energy and EV market,” Young-Way said in a statement on Friday.

The deal marked a new era in Indonesia’s commitment to becoming a global leader in sustainability and supporting an open ecosystem providing Indonesia with better and cleaner transportation options.

Jan 26, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/01/25/foxconn-other-firms-look-to-enter-indonesias-ev-market.html)

Posted on

The Boramae Fighter Jet Project Moves On!

            Minister of Defense, Prabowo Subianto could smile widely because the continuation of the South Korean-Indonesian KF-21 Boramae fighter jet project is increasingly showing progress. The latest, prototype aircraft numbers 03 and 04 are undergoing development at the Korea Aerospace Industries (KAI) production facility in the city of Sacheon. This fighter jet has a tandem-seat configuration, meaning that the rear seat is occupied by the navigator. This aircraft can be useful for combat training or reconnaissance.

            One of the visible improvements is that the fins of the two prototypes have been colored. Aircraft 03 gets a touch of blue dominant color with white and red designs, also written KF-21 003. Meanwhile, aircraft 04 has a touch of yellow domination with additional white and black stripes and written KF-21 004.

            South Korean authorities have not provided further statements regarding the latest developments of the fighter jet. However, reported by the Korea Joong Ang Daily, the KF-21 fighter jet project called KF-X (Korean Fighter eXperimental) and IF-X in Indonesia is said to be the most expensive military project in Korean history, with a price tag of around 8.5 trillion. won for development only.

            Indonesia plans to produce 48 KF-21 jets locally after receiving one prototype and technical data. During a state visit to Korea in September 2018, President Joko Widodo asked South Korean President Moon Jae-in to reduce 5% of payment obligations. Initially, Indonesia was required to pay 20% but there was a demand that it fell to 15%.    

Through renegotiations since October 2018, the two countries narrowed their differences over Indonesia’s current 20 percent contribution ratio, agreeing on payments in several other forms. However, according to the details of the renegotiated cost-sharing agreement announced by the Korean Defense Acquisition Program Administration (DAPA) last November 2021, the two countries decided to maintain a 20% cost-sharing ratio for Indonesia and a payment schedule from 2016 to 2026.

Jan 24, 2022, CNBC Indonesia

(https://www.thejakartapost.com/world/2022/01/25/indonesia-to-take-over-airspace-from-singapore-in-quid-pro-quo-deal.html)

Posted on

Jokowi Has Inaugurated, Ready to Use LPG Substitutes

            President Joko Widodo on (24/01/2022), inaugurated the groundbreaking procession for the coal gasification project to become Dimethyl Ether (DME) in the Tanjung Enim Industrial Estate, Muara Enim Regency, South Sumatera. The President said the DME project is very important because it can act as a substitute for Liquefied Petroleum Gas (LPG), so that it can reduce LPG imports which so far have reached 6-7 million tons per year or around 80% of domestic LPG needs.

            “I have said many times about downstream, industrialization. The importance of reducing imports. I ordered this six years ago but thank God, today even though in the long term it has not been able to start, thank God we can start today, groundbreaking the coal downstream project has become DME,” he said.

            Jokowi said that so far, Indonesia’s LPG imports were huge, around Rp80 trillion from the Rp100 trillion needed. On the other hand, the government still provides subsidies of around Rp60-70 trillion per year. “My question is, do we want to continue to do this? Continue to import? The profit is in other countries, which also create job opportunities in other countries, even though we have the raw material, namely coal which is converted into DME,” he said.

            The DME project whose groundbreaking ceremony was inaugurated is a project worth Rp33 trillion which was jointly carried out by PT Bukit Asam Tbk (PTBA), PT Pertamina (Persero), and Air Products & Chemicals Inc (APCI), a petrochemical company from the United States. The investment for the construction of this project is entirely carried out by Air Products, while PTBA will play a role in supplying coal, and Pertamina as the buyer of DME products later.

            The DME project in Tanjung Enim is planned to operate for 20 years. With the utilization of 6 million tons of coal per year, this project can generate 1.4 million DME per year to reduce LPG imports by 1 million tons per year, to improve the trade balance. This DME project can already be operational and will begin to be distributed as early as mid-2024.

Jan 24, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20220124120227-4-309864/sudah-diresmikan-jokowi-siap-siap-ya-bun-pakai-pengganti-lpg)