Category: Economy

Indonesia will participate in the World Expo 2025 Osaka. The event, attended by various countries around the world, will last for 6 months from April 13, 2025, to October 13, 2025. Indonesia is ready to present the charm of nature, culture, creativity and leading innovation. Carrying the theme “Thriving in Harmony: Nature, Culture, Future”, Indonesia confirms its commitment to sustainable development.

“This is the only expo in the world with a complete package, all here, tourism, trade, investment. Because people come to enjoy shopping and then investing. This is the driving force of the economy,” said the Director General of National Export Development, Fajarini Puntodewi, at the Kick Off Meeting of Indonesia’s Participation in the World Expo 2025 Osaka, Jakarta, Thursday (13/2/2025).

In its participation, Indonesia has prepared the Indonesian Pavilion with an area of ​​1,750 m², which combines tradition and modernity, inviting visitors to explore the diversity of the nation’s potential. Here, innovations and visions towards Indonesia Emas 2045 will be presented, becoming a source of inspiration in various fields and opening up opportunities for new business partnerships.

There are 8 programs of the Indonesian Pavilion: 1. Theme Weeks, Indonesian participants will fill various forms of activities according to 8 sub-themes that will be displayed at the Expo and Indonesian Pavilions; 2. National Day, held on April 25, 2025, at the Expo Hall/Event Hall 1. Carnival parade from the Expo Hall to the Indonesian Pavilion; 3. Best Practice, Team Expo Program, collaborating with various countries in displaying the best innovation works in achieving SDG’s; 4. Woman Pavilion, promoting gender equality initiatives, progress and empowerment of women globally; 5. Business Forum, a business forum attended by potential international partners in discussing issues and innovations regarding the achievement of SDGs; 6. 1on1 Meeting, an activity that provides opportunities for the government and private sector to explore cooperation agreements; 7. Cultural Performance, a cultural promotion event by presenting cultural arts performances on the stage area of ​​the Indonesian Pavilion; 8. Rolling Exhibition, displaying innovative products in achieving SDGs in the rolling exhibition area and Indonesia craft Indonesian Pavilion.

In addition, the Ministry of Trade will take advantage of the opportunity at the World Expo 2025 Osaka to increase export value. Indonesia’s participation in the World Expo 2020 Dubai was US$ 34.88 billion, consisting of investment with 19 business cooperation agreements and investment of US$ 32.7 billion and trade of US$ 2.18 billion.

“The trade target must be higher than the previous achievement. This is an opportunity that we must take advantage of,” said the Director General of National Export Development, Fajarini Puntodewi.

On the other hand, Japan is Indonesia’s main trading partner and currently occupies the fourth position as an export destination country. Punto believes that participation in the World Expo 2025 Osaka will further strengthen trade relations between the two countries. The trend of trade between Indonesia and Japan continues to show a positive increase of 10.27% annually in the last five years.

February 14, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250213142430-4-610406/world-expo-2025-osaka-ajang-ri-gaet-turis-investor-asing)

(https://www.cnbcindonesia.com/news/20250213122943-4-610345/world-expo-2025-osaka-peluang-besar-genjot-ekspor-indonesia)

Minister of Trade Budi Santoso revealed the trade agreement between Indonesia and Japan, the Indonesia-Japan Economic Partnership Agreement (IJEPA), since it was ratified through Presidential Regulation (Perpres) Number 36 of 2008 and has been in effect since July 1, 2008, IJEPA has provided many benefits for Indonesia.

He said the benefits obtained in the form of a trade surplus that has been maintained for more than 17 years, increased investment in the automotive sector and other industries, and increased human resource capacity in the nursing profession sector.

Even so, the Minister of Trade conveyed the urgency of change with the current conditions, including modernization by referring to the ASEAN-Japan CEPA and RCEP agreements, IJEPA needs to be updated to remain relevant.

“Apart from these benefits, there is an urgency to renew the IJEPA agreement with the aim of modernization and maintaining relevance to current challenges,” said the Minister of Trade in a working meeting with the Indonesian House of Representatives, Thursday (13/2/2025).

The Minister of Trade conveyed that the agreed IJEPA changes included adjustments to IJEPA taxes in several chapters, namely general provisions, trade in goods, movement of individuals, intellectual property, trade through electronic systems, government procurement of goods and services, and final provisions.

In addition, the Minister of Trade conveyed that Japan added a commitment of 112 tariff posts that Indonesia could utilize. Where products that received additional preference from Japan include processed tuna and other marine products, bananas and pineapples, food and beverage products, and cocoa powder.

Meanwhile, Indonesia provided an additional commitment for 25 tariff posts, including iron and steel products, rice flour, automotive products, and special rice. He also mentioned that there were 5 benefits from the IJEPA change protocol as follows:

1. Increasing Market Access for Goods and Competitiveness of Indonesian Products: Indonesian exports to Japan increased by US$ 363.4 million in the 5th year of implementation, especially the 112 new tariff posts committed by Japan, namely tuna, skipjack and processed marine products, bananas, pineapples, cocoa powder, organic chemicals, vegetable oils and other food and beverage products. Then Indonesia’s trade surplus with Japan is projected to grow 20.37% annually, with an increase in exports of more than US$ 300 million in the next 5 years.

2. Increasing Market Access: Indonesia’s e-commerce service trade exports increased to US$ 190.6 million in the 5th year of implementation and reached US$ 1.27 billion in the 10th year of implementation.

3. Absorption of Labor: The workforce absorbed includes air transportation, communications, transportation, warehousing, and supporting activities.

4. Increasing Investment: Japanese investment in Indonesia increased to US$ 10.7 billion in the 10th year of implementation. Increasing the competitiveness of domestic industry through technology transfer and capacity development programs.

5. Increasing Cooperation in the Field of Government Procurement of Goods and Services: This cooperation begins in the field of information exchange and development of market access, government procurement of goods and services.

February 13, 2025, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7777383/ada-perubahan-perjanjian-dagang-ri-jepang-mendag-beberkan-manfaatnya)

The Government of the Republic of Indonesia and the Government of the Republic of India have agreed to strengthen cooperation in various fields, from health to culture. The agreement was reached after a meeting between Indonesian President Prabowo Subianto and Indian Prime Minister Narendra Modi and was conveyed in a press statement at Hyderabad House, New Delhi, Saturday (25/1/2025). Starting the press statement, Prabowo greeted Modi with the greeting “My Good Brother”. He also thanked Modi for his extraordinary welcome to his first visit to India as President of the Republic of Indonesia.

“We discussed very intensively and very openly. We discussed many key sectors,” Prabowo said in English. Also present at the meeting were a number of ministers who are members of the cabinets of the two governments. As a follow-up to the cooperation between the two countries, Prabowo gave directions to the ranks of ministers to accelerate the process and cut regulations that could hinder.

“We must accelerate and accelerate economic cooperation with India. We will prioritize this cooperation in the context of the long-term relationship between the two countries,” said Prabowo.

On the same occasion, Prabowo admitted that he was proud to be the Chief Guest of the Republic Day Parade which will be held on Sunday (26/1/2025). Because the previous Chief Guest from Indonesia was President Sukarno at the Republic Day Parade in 1950.

“This is a source of pride for me,” said Prabowo.

Furthermore, Prabowo congratulated Modi and the Indian people on the 76th Republic Day. May prosperity and success always accompany India, a country that has long supported Indonesia.

“India is one of the biggest supporters of our independence. India provides a lot of financial assistance, health assistance, many Indian leaders support us in critical times. Indonesia will never forget this support,” said Prabowo.

Before delivering a press statement, Prabowo and Modi witnessed the exchange of memorandums of understanding (MoU) between the governments of the two countries.

“In our discussions in the fields of trade, investment, tourism, health, energy, security cooperation, AI (artificial intelligence), digital IT, energy, we agreed to strengthen this cooperation,” said Prabowo.

At that moment, there were five cooperation documents that had been agreed upon by the two countries. The cooperation that has been agreed by Indonesia and India includes: 1. MoU on Health Cooperation between the Indonesian Ministry of Health and the Ministry of Health and Family Welfare of the Republic of India; 2. MoU between the Food and Drug Administration of the Republic of Indonesia and the Pharmacopoeia Commission for Indian Medicines and Homoeopathy of the Ministry of Ayush of the Republic of India on Cooperation in the Field of Quality Assurance of Traditional Medicines; 3. MoU between the Ministry of Communication and Digital of the Republic of Indonesia and the Ministry of Electronics and Information Technology of the Republic of India on Cooperation in the field of Digital Development; 4. MoU between the Maritime Security Agency of the Republic of Indonesia and the Coast Guard on Cooperation in Maritime Safety and Security; and 5. Cultural Exchange Program between the Ministry of Culture of the Republic of Indonesia and the Ministry of Culture of the Republic of India for the Period 2025 – 2028.

January 25, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250125155631-4-605959/prabowo-indonesia-harus-percepat-kerja-sama-ekonomi-dengan-india)

Minister of Trade Budi Santoso revealed that Indonesia is the 19th largest supplier of furniture and crafts in the world. The export trend of furniture and crafts in January-November reached US$ 2.22 billion or equivalent to IDR 36 trillion. This was revealed at the launch of the International Furniture and Craft Fair Indonesia (IFFINA) 2025, at the Ministry of Trade, Thursday (1/23/2025).

“The export value of furniture and crafts in Indonesia from January to November 2024 reached US$ 2.22 billion with the main destination countries being the United States, Japan, the Netherlands, Germany, and Belgium,” said Budi.

The growth trend of Indonesian furniture and crafts in 2023 reached US$ 2.46 billion with an annual growth trend of 2.62% in the last 5 years. According to Budi, world demand for furniture and crafts is still quite promising, where the world demand trend continues to grow positively by 15.09%.

“Specifically for furniture products, the global market size reached US$ 770.42 billion in 2024 and is projected to reach US$ 925.46 billion in 2029,” he explained.

On the same occasion, the Indonesian Furniture and Craft Industry Association (ASMINDO) said that in 2024, the furniture industry again contributed positive value to the national economy, especially in the export sector, increasing by 4.7% compared to 2023.

Starting from this optimism, Asmindo will again hold an annual event for furniture and design industry players, namely IFFINA 2025. This year’s IFFINA event will be presented differently from before by raising the theme “A Showcase of Indonesia’s Finest Furniture and Homedecor”, which of course is expected to present the best products from the furniture, craft, design, and homedecor industries.

For this reason, IFFINA+ is here with the aim of meeting the needs of the domestic and international markets, supporting export growth, while opening up great opportunities for the project sector in Indonesia.

“The hope of business actors is that the government can provide incentives to attract investors to build factories that are able to produce mass products and supporting raw materials such as hinges and drawer rails in Indonesia, so that technology transfer can occur. Thus, together we can support the growth of the national furniture industry,” said Dedy.

January 23, 2025, detikFinance

(https://finance.detik.com/industri/d-7745991/mendag-ungkap-ekspor-mebel-ri-tembus-rp-36-t)

Indonesia continues to move forward in optimizing the potential of its natural resources as evidenced by the downstream mining industry program. Until 2024, this program has had a significant impact in building a national economy based on added value that focuses on copper, bauxite, and silica sand commodities. If carried out and realized in accordance with the existing investment plan, downstreaming will be a prerequisite for the processing industry sector to support the achievement of Indonesia Emas 2045. Downstreaming of the mining industry, especially copper, bauxite, and silica sand, was initially carried out through the construction of copper and bauxite smelters, as well as the development of products made from silica sand.

This statement was expressed in research by the Faculty of Economics and Business, University of Indonesia (FEB UI) entitled “Study of the Impact of Mining Industry Downstreaming on the Economy, Social, and Environment: Copper, Bauxite, and Silica Sand”.

Deputy Head of the Center for Sharia Economics and Business, Faculty of Economics and Business, University of Indonesia (PEBS FEB UI) Nur Kholis said that the requirement for the processing industry sector to be able to support the achievement of Indonesia Emas 2045 is the use of products from smelter processing. The product can be downstreamed again as input in the development of products that have higher added value domestically to the final product.

Downstreaming has enabled Indonesia to no longer just export raw materials. Value-added products such as copper cathodes, alumina, and silica sand-based products such as glass and ceramics, and in the future solar panels and semiconductors are now starting to be produced domestically. This is a strategic step to strengthen the national industrial structure and open up new economic opportunities. Indonesia cannot continue to rely on exports of raw materials and imports of intermediate goods from abroad. Downstreaming is Indonesia’s path to economic independence.

“By increasing investment in order to produce value-added products domestically, we create jobs, increase people’s income, and ensure that our natural resources truly provide maximum benefits for the nation,” said Nur Kholis in his official statement, Wednesday (15/1/2025).

In addition, Nur Kholis explained, the impact of the downstreaming of copper, bauxite, and silica sand has begun to be felt in areas such as Gresik Regency (East Java), Mempawah Regency (West Kalimantan), and Batang Regency (Central Java), where the construction of smelters has become the driving force of the local economy. In addition to increasing Gross Regional Domestic Product (GRDP) and regional income, this policy has also created thousands of jobs, both directly and indirectly.

However, downstreaming also faces challenges such as limited infrastructure and technology, limited skilled workers, fluctuating market demand, and negative impacts on the environment. According to him, the government needs to take a number of strategic steps to face these challenges. For example, human resource development, research and development of technology, application of environmentally friendly technology, product diversification, and strengthening international cooperation.

“Downstreaming of the mining industry, especially copper, bauxite, and silica sand also needs to continue to be encouraged to apply environmentally friendly technology in all mining mineral processing facilities. Effective waste management must be an integrated part of the implementation of downstreaming,” he said.

January 15, 2025, CNCB Indonesia(https://www.cnbcindonesia.com/news/20250115200002-4-603501/hilirisasi-jadi-prasyarat-sektor-industri-menuju-indonesia-emas-2045)

American technology giant Apple is investing in Indonesia by building an AirTag factory in Batam worth US$ 1 billion or IDR 16 trillion. The plan is for the factory to start operating in February 2026. This was conveyed by the Minister of Investment and Downstream/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani at the Semangat Awal Tahun 2025 event. Apple has purchased land to build the factory.

“On the investment side, we have succeeded in convincing them (Apple) to stay in Batam. The land has been purchased, shown to us, and cut and fill has been done to start construction. It is hoped that in early 2026, in February it will be ready for AirTag (production),” said Rosan at Menara Global, South Jakarta, Wednesday (15/1/2025).

AirTag is one of Apple’s products. Rosan emphasized that the steps to build the AirTag vendor factory are only the initial stages. He hopes that other vendors will also enter Indonesia.

“We want other vendors, like many vendors at Apple in other countries. As I said earlier, in Vietnam there are more than 35-36 vendors. In Malaysia, Thailand more than 25-26 vendors, so this is what we also want to do,” he said.

The start of construction of the AirTag factory in Batam, according to Rosan, is a sign that Apple is investing in Indonesia. Construction is still ongoing to this day. The hope is that investment entering Indonesia can continue to increase. Because the value of this investment is actually still much smaller than the neighboring country, Vietnam, which reaches hundreds of trillions.

“So that the initial investment of US$ 1 billion then increases gradually to US$ 3 billion, US$ 5 billion, and the target of US$ 10 billion can be achieved,” he said.

Rosan added that this new factory will supply 65% ​​of Apple’s AirTag needs worldwide. This factory will also create jobs for up to 2,000 people.

January 15, 2025, detikFinance

(https://finance.detik.com/industri/d-7733697/apple-bangun-pabrik-airtag-di-batam-rp-16-t-beroperasi-februari-2026)

The General Chairperson of the Indonesian Tourism Intellectuals Association, Professor Azril Azhari, explained that Indonesia began to initiate the concept of disability-friendly tourism since 2021. Meanwhile, the world had previously known the term Accessible Tourism (AT) in 2019 through the United Nations Tourism Organization (UNWTO) and The ONCE Foundation. According to Azril, the term “disability-friendly tourism” is actually less popular globally because the term Accessible Tourism is more commonly used and has a meaning that is closely related to Tourism for All. WHO data (2023) states that 1.3 billion people or around 16% of the world’s population have significant disabilities.

“This means that accessibility for all tourism facilities, products, and services must be a major part of every sustainable tourism policy,” said Azril in a conversation with detikTravel, Wednesday (18/12/2024).

However, he admitted that in Indonesia, the implementation of disability-friendly tourism is still partial. Only in toilets, parking lots, or ramps, so it has not become a single destination. The Importance of Certification and Implementation of Inclusive Principles: Certification has two main types, namely business certification and professional certification for business actors. Both are very important to determine the feasibility of a destination and the competence of its business actors, especially in adopting the concept of Accessible Tourism. He also emphasized that the term “disability-friendly” tends to represent additional services (extended services). On the contrary, Accessible Tourism is a basic criterion that is a basic need for every tourist with special needs.

“To achieve inclusive tourism, Indonesia must adopt universal principles that are international standards. This includes physical accessibility such as ramps and lifts, sensory accessibility such as voice-based information, and cognitive accessibility that is easy for people with disabilities to understand,” said Azril.

Examples and Challenges in Implementation: Several destinations such as Bali and Yogyakarta have adopted universal design principles, such as wheelchair-accessible beaches or facilities at the Temple. Mentawai Island has even provided a surfing experience that can be enjoyed by people with disabilities. However, Azril highlighted that its implementation is still limited.

“We face a big challenge in the form of a lack of understanding from business actors and local governments and the absence of initiators or facilitators who are able to drive the concept of Accessible Tourism. In fact, the tourism market opportunity is very large, with an economic impact of $ 58.7 billion per year (PR Newswire, 2020),” he said.

The importance of developing inclusive destinations to support Indonesian tourism. He also added that the presence of skilled workers from among the disabled can be a unique attraction that enriches the sector.

“However, the main goal remains the development of destinations that adopt universal standard principles to serve tourists with special needs,” said Azril.

Indonesia has a great opportunity to become a pioneer in Accessible Tourism in Southeast Asia. With a deep understanding, adequate certification, adoption of technology, and community involvement, Indonesia can create inclusive destinations that not only have an economic impact but also strengthen human values.

January 09, 2025, detikTravel(https://travel.detik.com/travel-news/d-7724798/indonesia-dan-tantangan-mewujudkan-pariwisata-inklusif)

Deputy Minister of Agriculture (Wamentan) Sudaryono has set an ambitious target for Swallow Nest exports. The reason is that the potential for swallow nest production is very promising. For this reason, he appealed for swallow nest cultivation to be increasingly looked at. Thus, it can become an economic strength for farmer families and strengthen national exports.

He conveyed this when reviewing the Processing Bird House at PT Surya Aviesta, Surabaya, East Java, Tuesday, (7/1/2025). The government, he added, will provide support for farmers who want to develop Swallow Nest cultivation.

“Of course, this is an extraordinary potential that can be utilized by our community, and I think it’s worth a try. Why? Because of the 100 percent of the world’s Swallow Nest supply, 60 percent of it comes from Indonesia. The export value is almost IDR 10 trillion per year,” said Sudaryono in an official statement, Wednesday (8/1/2025).

He also targeted that Indonesia’s export contribution to the world’s Swallow Nest market could increase by more than 60 percent, with a target of reaching 63 to 65 percent.

“The Swallow’s Nest industry has great potential. Because if Indonesia has supplied 60 percent of the world’s supply, we are sure it can increase further. So that Indonesian swallow’s nests can dominate the world’s export market. Just by preparing a place for swallows to nest, farmers can earn quite a large income. The price of swallow’s nests reaching tens of millions of rupiah per kilogram can strengthen the family economy,” he said.

For information, the Indonesian Minister of Trade Muhammad Luthfi in 2021 once said that Indonesia is one of the largest Swallow’s Nest producing countries in the world. Swallow’s Nest is known as a luxury commodity that has various health benefits, including increasing immunity, improving organ function, and preventing aging.

In CNBC Indonesia’s records, the export value of Indonesian Swallow’s Nest continues to show a significant upward trend. In 2020, exports of swallow’s nest reached US$540.4 million, an increase of 48.5% compared to 2019. The volume of Indonesian bird’s nest exports in 2023 reached 1,335 tons with a value of US$633.25 million or equivalent to IDR 9.81 trillion (US$1 = IDR 15,945, October 2024). Using this exchange rate, 1 kg of Indonesian bird’s nest is valued at IDR 7.35 million. China, Hong Kong, and Singapore are the main markets for Indonesian Swallow’s Nest. For example, in 2023, exports to Hong Kong were recorded at 630.9 tons with a value of US$77.137 million, while exports to Singapore reached 36 tons with a value of US$17.588 million.

Sudaryono promised that if there are regulations that hinder, including for the export of Swallow’s Nest, the government is ready to accelerate and simplify the process.

“From the government’s side, we want to increase export volume, simplify regulations so that entrepreneurs and the public are more enthusiastic. The President’s determination is clear, we want food self-sufficiency, reduce imports, and increase exports,” said Sudaryono.

January 08, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250108163957-4-601707/sarang-burung-walet-ri-laku-keras-di-dunia-begini-ambisi-wamentan)