Increasing Industrial Downstream, Freeport Smelter in Gresik Inaugurated

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

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

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

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

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

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

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

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

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

June 28, 2024, detikFinance


Indonesia’s Competitiveness Increases to 27th Position, What is the Impact?

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

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

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

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

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

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

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

June 28, 2024, detikFinance



Indonesia’s Food and Beverage Sector Exports Reach IDR 149 Trillion

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

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

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

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

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

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

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

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

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

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

June 25, 2024, detikFinance



Increasing Marine Environmental Protection, Indonesia and the Philipphines Hold Joint Exercises

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

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

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

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

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

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

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

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

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

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

June 25, 2024, detikFinance


Wuling Will Increase Electric Vehicle Investment in Indonesia

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

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

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

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

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

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

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

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

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

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

June 18, 2024, detikFinance


Forbes International: BRI as the Largest Company in Indonesia

Forbes International published a list of the world’s largest companies, Forbes Global 2000 in 2024 on Thursday (13/6/2024) in New York. The Global 2000 contains the 2000 largest companies in the world based on sales, profit, assets and market value with the four variables given the same weight. Referring to the official Forbes International website, of the 2000 companies worldwide included in the list, there are 9 companies from Indonesia, and PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) occupies the top ranking.

BRI was ranked 308, followed by Bank Mandiri ranked 373, BCA ranked 457, Telkom Indonesia ranked 912, BNI ranked 944, Bayan Resources ranked 1,194, Chandra Asri Petrochemical ranked 1,591, Amman Mineral ranked 1,605 and Adaro Energy ranked 1,738.

Forbes Staff Writer Hank Tucker explains that the annual Forbes The Global 2000 list reflects the largest global companies driving the market, as well as emerging and trending industries. According to him, this year’s list shows how global markets are integrated with each other and the continued trend of artificial intelligence as it develops is reflected in the rise in the ranking of semiconductor companies. When viewed in general, BRI recorded sales of $14.95 billion, profit of $3.6 billion, assets of $125.45 billion and market value of $46.5 billion. BRI’s success in ranking 308th was recorded as being better than other multinational companies such as Starbucks, Renault, Nissan Motor, Uber, Vodafone, HP and Softbank.

Meanwhile, this year’s list includes company performance data for the last 12 months up to May 17, 2024. The 2000 companies on the list collectively have a market value of $88 trillion, experienced an increase in market value of 19%, and posted record revenues of $51. 7 trillion, profits of $4.5 trillion and assets of $238 trillion. In addition, BRI President Director Sunarso expressed his appreciation and pride for the recognition from Forbes International, especially when the company faces global economic conditions which are full of challenges.

“Once again the international community recognizes BRI’s positive performance, and BRI’s work as a state-owned company is able to continue to have a global influence,” said Sunarso.

In terms of performance, BRI recorded positive profit growth of IDR 15.98 trillion in the first quarter of 2024. BRI was also recorded as disbursing credit of IDR 1,308.65 trillion or grew 10.89% yoy. Of the credit distribution, 83.25% or 1,089.41 trillion is a credit portfolio for the MSME segment. Meanwhile, BRI’s third party funds were recorded to have grown faster by 12.80% to IDR 1,416.21 trillion. The company’s total assets also increased 9.11% to IDR 1,989 trillion. In terms of capital, BRI is supported by a strong CAR or at the level of 23.97% with a loan to deposit ratio or LDR of 83.28%. The company also reserves NPL coverage of 214.26%.

Indonesia and Egypt Agree to Increase Trade Cooperation

Indonesia and Egypt agreed to increase bilateral trade cooperation. Apart from that, Zulhas also welcomed the planned Joint Trade Committee (JTC) meeting with Egypt which will be held next July in Bali. This was stated by Trade Minister Zulkifli Hasan when he met the Egyptian Minister of Trade and Industry, Ahmed Samir Saleh, in Istanbul, Turkey, on Monday (11/6). The meeting took place on the sidelines of the 3rd Ministerial Level Meeting of the Trade Negotiations Committee (TNC) Trade Preference System of the Organization of Islamic Cooperation (TPS-OIC) and the D-8 Informal Ministerial Level Meeting.

“I view that trade relations between Indonesia and Egypt can still be further improved. The two countries have long diplomatic relations and are a strong foundation for establishing closer trade cooperation,” said Zulhas in his statement, quoted Thursday (13/6/2024).

For Indonesia, Egypt is a strategic non-traditional trading partner in the African region. According to Zulhas, Egypt can take advantage of Indonesia’s potential as a gateway to the ASEAN market. Meanwhile, Indonesia can make Egypt a hub for African, European and Middle Eastern markets,” explained Zulhas. 

According to Zulhas, the Egyptian Minister of Trade stated that he wanted to learn more about the trade potential that could be explored with Indonesia. In addition, Egypt showed the same enthusiasm to increase bilateral trade by twofold.

Regarding cooperation within the D-8 framework, Egypt welcomes Indonesia’s commitment to starting the implementation of the D-8 PTA. “We conveyed to Egypt that Indonesia agrees and supports PTA cooperation between D-8 member countries,” continued Zulhas.

Egypt is the 27th export destination country and the 56th source of Indonesian imports in the world. In January-April 2024, trade between the two countries will reach US$ 474.3 million. In that period, Indonesia’s export value was recorded at US$ 408.5 million and imports at US$ 65.9 million. Meanwhile, in 2023, total trade between the two countries will be recorded at US$ 1.51 billion, with Indonesia’s exports to Egypt amounting to US$ 1.31 billion, and Indonesia’s imports from Egypt amounting to US$ 201.4 million. Thus, Indonesia experienced a trade surplus against Egypt of US$ 1.11 billion. Meanwhile, in the last five years (2019-2023), Indonesia’s trade with Egypt showed positive growth of 8.65 percent.

In 2023, Indonesia’s main export commodities to Egypt are palm oil (US$ 798.5 million), coffee (US$ 84.5 million), thread other than sewing thread (US$ 48.2 million), wood fiber board ( US$ 37.4 million), as well as copra (US$ 32.2 million). 

Meanwhile, Indonesia’s largest imports from Egypt are natural calcium phosphate (US$ 47.4 million), fertilizer containing phosphate (US$ 43.2 million), dates (US$ 23 million), fertilizer containing nitrogen (US$ 16 million), and molasses resulting from the extraction or refining of sugar (US$ 13.1 million). In 2023, the value of Egypt’s investment in Indonesia will reach US$ 1.25 million with a total of 114 investment projects. This value increased by 244% compared to 2022 which was recorded at US$ 364.8 thousand with 19 projects. 

June 13, 2024, detikFinance


Indonesia Discusses CPO-Cosmetics Export Potential with Nigeria

Minister of Trade Zulkifli Hasan held a bilateral meeting during a working visit on the sidelines of a meeting of trade and investment ministers of the Trade Organization of Islamic Cooperation/OIC (Trade Preferential System-Organization of Islamic Cooperation/TPS-OIC) countries in Turkey. Zulhas held a meeting with Nigerian Trade Minister Doris Uzoka-Anite. A number of important issues regarding trade between the two countries, one of which is the potential for exporting a number of Indonesian products to Nigeria and vice versa.

“Nigeria needs a lot of Indonesia’s export potential, such as palm oil (Crude Palm Oil/CPO), motor vehicle spare parts, wood products and beauty/cosmetic products. Apart from that, Indonesia also needs Nigerian products such as cocoa beans, agricultural products, gold , and metal products such as aluminum,” explained Zulhas in his statement, quoted Wednesday (12/6/2024).

Apart from that, the two also discussed developments in economic growth and the potential for strengthening trade cooperation between the two countries. If we look at the trade trend figures between the two countries over the last five years (2019-2023), they tend to show quite good results, although not yet optimal. According to records from the Ministry of Trade (Kemendag), trade figures between the two countries experienced growth of 30% with a total trade value reaching US$ 4.4 billion.

“Bilateral trade growth increased by 30% but can still be increased because Nigeria is the largest country in the region with rich natural resources,” he said.

Therefore, Zulhas said that cooperative relations between Indonesia and Nigeria could continue to be improved. This step is considered important so that both countries can experience the same benefits.

“Indonesia hopes that the bilateral PTA (Preferential Trade Agreement) with Nigeria can soon be realized where Indonesia already has a lot of experience in trade agreements with a number of countries in other regions. So, with the PTA we hope to accelerate trade between the two countries. If this cooperation goes well in the future can be improved,” he said.

“Indonesia and Nigeria are the main economic powers in their respective regions. Nigeria is the economic power on the African continent, Indonesia is the main economy in Southeast Asia,” he continued.

Zulhas also reported that the Nigerian government welcomed the meeting positively. Moreover, many Indonesian companies have currently invested in Nigeria.

“Nigeria welcomes this meeting. Indofood and Kalbe Farma are already present in Nigeria. Indofood is one of Nigeria’s largest exporters and KADIN is also very active in promoting Indonesian companies in Nigeria. Nigeria’s population of 250 million, similar to Indonesia, has potential for Indonesian motor vehicle exports “Nigeria has several products that can be explored,” he said.

Finally, seeing the great potential of Nigeria, which is rich in natural resources, and ready to invite investors from Indonesia, Zulhas will invite KADIN and Indonesian entrepreneurs to carry out trade and business matching missions in Nigeria.

“My plan is to invite KADIN colleagues and a number of Indonesian entrepreneurs for business matching in Nigeria in the near future. If possible in July 2024. KADIN of the two countries is very active in communicating,” he concluded.

June 12, 2024, detikFinance


Indonesia Establishes Whale Shark Center to Support Sustainable Development Goals

The collaboration between PT Pertamina International Shipping (PIS), together with the Pertamina Foundation and the Ministry of Environment and Forestry (KLHK) succeeded in finding a new individual whale shark in the Cendrawasih Bay National Park (TNTC) area, Kwatisore – Nabire Regency, Central Papua. With this addition, the number of whale sharks recorded at TNTC has now reached 203 individuals. This finding is the result of joint monitoring carried out since November 2023 at the Whale Shark Center (WSC) Kwatisore, which is now jointly managed by PIS and the Ministry of Environment and Forestry. This finding is also a special gift for marine sustainability which coincides with World Ocean Day on June 8.

“From the monitoring results, it was found that there were new individuals of whale sharks in the TNTC area so that the population increased. Of course, this is good news from the good efforts that have been taking place in the last few months, and clear evidence of the company’s commitment to supporting the sustainability of the marine ecosystem, especially in the area Eastern Indonesian waters,” said PIS Corporate Secretary Muh. Aryomekka Firdaus, Sunday (9/6/2024).

“Being SEAnergi for the Sea” to support the sustainability of marine ecosystems, increase literacy and the welfare of coastal communities. This collaboration in managing the Whale Shark Center in Kwatisore includes several programs, including; Whale Shark conservation and tagging, Pertamina Ocean Warrior (Endangered Species Monitoring).

Then Diving Training, and Independent Energy Village. This whale shark conservation program begins with direct monitoring of the whale shark population at TNTC, namely recording the appearance of whale sharks by the community. Meanwhile, indirectly using tools such as underwater cameras (Photo-ID Method), Radio Frequency Identification (RFID) markers and Pop-Up Satellite Archival Tag (PSAT) markers.

This monitoring is useful for developing knowledge and understanding of the biological, ecological and behavioral aspects of whale sharks so that programs can run effectively, and fauna populations can increase. Monitoring activities that have been taking place have proven to have produced results by recording the emergence of new individuals in the TNTC area.

“Initially, the whale shark population in TNTC had 195 whale sharks. Since joint monitoring was carried out in November 2023, we have been able to monitor and record new individuals so that the number reached 203 whale sharks as of May 2024. Hopefully in the future, this number can continue to increase for “monitoring the population and movements of whale sharks in the TNTC area,” said the Habitat Ecosystem Controller for the TNTC Region 1 Kwatisore Management Section, Sumaryono.

Apart from monitoring, conservation efforts at TNTC also continue with the process of tagging whale sharks to record and process data on whale shark behavior. One of the uses of data is to study the migration routes of whale sharks in Papuan waters. We will adjust this data to the PIS shipping area in Papua. So that PIS ships can sail on routes that will not interfere with the whale shark’s path.

Based on the International Union for Conservation of Nature (IUCN) report, the whale shark is one of the animals that has been on the red list of endangered animals since 2016. Since then, efforts to conserve whale sharks have continued to be promoted by various parties, including PIS as a moving and industrial company. maritime and has great attention to the sustainability of Indonesia’s marine ecosystem.

“This collaboration is also proof of PIS’ commitment to supporting the Sustainable Development Goals (SDG) program, especially point 14 regarding life below water. As the largest maritime industry player in Indonesia, it is our obligation to run our business with sustainable principles in order to maintain the beauty of the environment, which “We will pass it on to future generations,” said Aryomekka.

June 9, 2024, CNBC Indonesia


South Korea and Indonesia Agree to Cooperate on Reducing Carbon Emissions

Indonesia and South Korea have agreed to collaborate to reduce carbon emissions. This was marked by the signing of a memorandum of understanding on the implementation of Article 6 of the Paris Agreement. Coordinating Minister for Economic Affairs Airlangga Hartarto welcomed the initiative of the South Korean Ministry of Trade, Industry and Energy (MOTIE) in establishing bilateral cooperation with Indonesia to implement Article 6 of the Paris Agreement. This is in line with Indonesia’s efforts to continue exploring cooperation both bilaterally and multilaterally.

Airlangga said this event was one way to strengthen the achievement of the commitment as stated in the Enhanced Nationally Determined Contribution (ENDC) to reduce carbon emissions by up to 31.89% with his own efforts and up to 43.20% with international support. In addition, the two countries will also obtain carbon credits through Internationally Transferred Mitigation Outcomes (ITMO) from selected projects that receive subsidies from MOTIE.

“MOTIE has contacted the Coordinating Ministry for the Economy since last year. We agreed to this cooperation and signed the MoU today. The form of cooperation in this MoU also has many similarities with the implementation of JCM that has been carried out by Indonesia. After this, we hope that companies from both countries can immediately collaborate to realize a reduction in carbon emissions,” said Airlangga in a written statement, Thursday (6/6/2024).

Airlangga said that his party had experience in coordinating similar cooperation through the Joint Crediting Mechanism (JCM) scheme between Indonesia and Japan since 2013. Currently there are 55 JCM projects spread across various regions in Indonesia and have contributed significantly to supporting low-carbon development in Indonesia.

He also hopes that the collaboration with South Korea can contribute a lot in encouraging Indonesia’s efforts to achieve the target of Enhanced Nationally Determined Contribution (ENDC) in 2030 and Net-Zero Emission (NZE) in 2060 or sooner.

“This collaboration can support sustainable development in Indonesia through increasing green investment and creating green jobs,” he explained.

June 6, 2024, detikFinance