Category: Economy

Trade cooperation between Indonesia and the United Arab Emirates is getting stronger. This was conveyed by the President and CEO of the Dubai Chamber of Commerce, Mohammad Ali Rashed Lootah. Lootah said that the signing of the Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE-CEPA) last year had removed barriers to trade in various goods and services between the two countries.

“This is expected to increase annual non-oil bilateral trade between our countries to US$10 billion (IDR 160 trillion) in the next five years,” said Lootah at the New Horizons: Doing Business with Indonesia event in South Jakarta, Monday (6/5/ 2024).

According to him, this agreement opens up attractive opportunities for the business community and both countries and confirms Indonesia’s position as a very important and strategic market for the United Arab Emirates and Dubai.

Lootah himself said that the market between Indonesia and the United Arab Emirates had been strong for several decades. He explained that during 2023, non-oil and gas bilateral trade between the two countries will reach US$3.5 billion (IDR 56 trillion) or achieve solid growth of 7.7% compared to the previous year.

As relations improve, in June 2023, Dubai International Chamber, launched a new international representative office in Jakarta with the aim of further strengthening bilateral trade and investment relations.

“Our team in Jakarta is happy to work with the Indonesian business world to support the growth of bilateral trade and investment, taking advantage of the CEPA agreement between the United Arab Emirates and Indonesia to achieve significant export and import expansion between the two markets,” he explained.

He said that the international representative office in Jakarta has several missions and focuses, namely building strong relationships with key public and private sector stakeholders, supporting Dubai-based companies that want to expand to Indonesia, and helping the Indonesian business world to enter the US market. Arab Emirates.

“By the end of 2023, a total of 99 Indonesian companies have registered as members of the Dubai Chamber, as many as 15 more companies joined us in the first quarter of this year, bringing the total to 114,” he explained.

“Reflecting the growing interest in Dubai among the Indonesian business community, we are confident that our office in Jakarta will continue to support and enhance the strategic bilateral trade and investment relationship between the two countries.”

Apart from that, the President and CEO of the Dubai Chamber of Commerce, Mohammad Ali Rashed Lootah, said that there was a possibility that companies from the United Arab Emirates would be interested in investing in Indonesia’s Archipelago Capital (IKN).

“As soon as investment opportunities are presented to us through investment promotion agencies in Indonesia, we will work with them (IKN) to introduce the private sector from the United Arab Emirates,” he said.

“Such opportunities are open to our private sector in Dubai, and we hope to encourage our companies to play a very important and important role in these investment opportunities,” he added.

May 6, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20240506134425-4-536060/ri-uea-makin-mesra-targetkan-perdagangan-non-minyak-rp160-t)

(https://www.cnbcindonesia.com/news/20240506153950-4-536119/bisnis-uea-ri-makin-mesra-dubai-bakal-investasi-di-ikn)

PT Thorcon Power Indonesia, a nuclear reactor company from the United States, is targeting the construction of the first nuclear power plant in Indonesia which can operate in 2032 with an investment of IDR 17 trillion. This was as revealed by the Director of TPI Operations, Bob S. Effendi. He said that his party planned the construction of the first nuclear power plant in Indonesia with a capacity of 500 Mega Watt (MW) with an investment of IDR 17 trillion. He claimed, the PLTN development plan had been communicated by his party to the government in this case the Ministry of Energy and Mineral Resources to the Coordinating Ministry for Maritime Affairs and Investment.

“So, we plan to build a nuclear power plant which hopes to be the first and at this time we have also communicated to the ESDM National Energy Council and maybe there is also Mr. Rachmat Kaimuddin as well as the Marves Ministry. We will build this 500 MW of the Nuclear Power Plant with Investing around IDR 17 trillion, “Bob told CNBC Indonesia in the Energy Corner program, Tuesday (4/30/2024).

To be able to realize the plan, Bob said that his party was currently preparing a proposal that would later be submitted to the government to be able to support the development of the first domestic nuclear power plant. Bob said that his party planned the construction of a nuclear power plant with a trillion of rupiah investment value to be built in Bangka Belitung Province, which itself was targeting the project to be able to operate in 2030.

“We hope that we will place it in Bangka Belitung, in Bangka Belitung Province and in 2030 we can operate. And we are sure this can be a practical solution for energy transition, namely, to stop coal steam power plants,” he said.

Indeed, Indonesia is currently encouraging the energy transition program to switch to new renewable energy sources to rend the position of coal as primary energy in Indonesia. Bob rate, nuclear through nuclear power plants can replace this position with the characteristics of the availability of qualified energy such as coal.

According to his calculations, with the investment value of the first nuclear power plant which is also expected to be the first nuclear power plant in Indonesia, an investment of IDR 17 trillion can produce production and development calculations of up to US $ 1,000 per kilo Watt (KW). Later, the selling price of US $ 6 cents is considered to be profitable. That way, he considered that being able to produce ‘clean’ electricity could also be an option for the government and for PT PLN (Persero) to provide electricity sources from new renewable energy in Indonesia.

April 30, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20240430121325-4-534601/perusahaan-as-mau-bangun-nuklir-di-ri-senilai-rp-17-triliun)

The largest industrial trade exhibition in the world, Hannover Messe, will be held again in 2024, precisely in hall 4 at the Hannover Exhibition Center, Lower Saxony, Germany on April 22-26, 2024. Indonesia is not left behind in participating even though the pavilion built is much smaller than the previous year. Understandably, at the Hannover Messe 2023 event, Indonesia became the Official Partner Country, so that at last year’s event there was a lot of effort in bringing in local partners to showcase their products and technology, even President Joko Widodo participated.

Minister of Industry Agus Gumiwang Kartasasmita said that the investment target that will be pursued in Indonesia’s participation in Hannover 2024 is IDR 20 trillion. Meanwhile, with the pavilion area reaching 10 times the size in 2023, Indonesia’s investment target is ‘only’ IDR 30 trillion. So, it should be much more effective in comparison to the area of the pavilion and the targets set.

“Last year was special because we became the Official Partner Country, so last year’s target was IDR 30 trillion. However, this year, just opening the Indonesian pavilion, it is already approaching IDR 5 trillion because there was a signing of around US$ 350 million and in the future there will be business forums such as “matching business and introducing Indonesian needs and industrial products that we can display and sell at Hannover Messe,” explained Agus after opening the Indonesian pavilion in hall 4 of Hannover Messe 2024.

Also present at the event were Commission VII DPR RI Maman Abdurrahman and Dony Maryadi Oekon, Secretary General of the Ministry of Industry Eko S.A. Cahyanto, and Indonesian Ambassador to Germany Arief Havas Oegroseno.

“Most of the investment targets this year will focus on sustainability, both in the energy and industrial sectors, how technology will make industrial products more efficient. As long as the country is free from anywhere, the important thing is to bring funds to Indonesia, and we can also add value then opens up job opportunities,” continued Agus.

“Because if Indonesia is left behind in the industrial world, the impact will have other implications. So, Indonesia’s presence is not only investment, but also Indonesia’s involvement with the world of industrial technology. So, in the end, even though we agree in the end, namely investment. Our presence at Commission VII monitors “for these targets to be achieved. I think the key word is target (executed investment), not just how much cooperation MoUs are achieved,” he concluded.

April 23, 2024, detikInet

(https://finance.detik.com/industri/d-7305857/indonesia-bidik-investasi-rp-20-triliun-dari-hannover-messe-2024)

Although not yet built an assembly factory in Indonesia, Apple apparently has reached an investment of IDR 1.6 trillion to provide the Apple Developer Academy. Noted, currently the Apple Developer Academy which has been operating there are four spreads across Tangerang, Batam and Surabaya. Meanwhile, the arrival of Apple Tim Cook CEO to Indonesia to inaugurate the 4th Apple Developer Academy which is located in Bali.

“The investment value is IDR 1.2 trillion for three academies. If you add another one in Bali, it will be IDR 1.6 trillion,” said Minister of Communication and Information Budi Arie Setiadi in Jakarta, Wednesday (17/4/2024).

Apple Developer Academy is a program that was developed directly by Apple. This is to improve the skills for those who are interested in the world of coding and digital in a professional manner. Meanwhile, the first Apple Developer Academy was opened in Brazil, this HR talent development program has developed to more locations worldwide, including Korea, Indonesia, Saudi Arabia, Italy, and the United States.

For information, Tim Cook has met with President Joko Widodo at the Merdeka Palace, Jakarta, today. In the meeting that lasted for one hour, improving the quality of human resources was considered important, especially in the current digital era.

“So, this increase in human resources is also important for us, for our nation,” he said.

Unfortunately, Apple has not revealed the schedule for the opening of the academy in Bali. But it is certain that the Bali campus will receive registration not only from Indonesia, but from all over the world, regardless of the educational background or programming experience.

This technology giant from Cupertino has opened an academy in Surabaya and Batam. Apple Developer Academy which was attended by more than 2,000 prospective developers. As many as 90% of graduates have gotten jobs in various sectors ranging from education, e-commerce, transportation, sustainability, and more.

The nine-month program from this academy includes the basics of programming, as well as other topics such as project design, marketing, and management, which will equip participants with a series of capabilities needed to become entrepreneurs and world-class developers.

Apple Developer Academy in Indonesia receives participants from various personal and professional backgrounds. They come from more than 90 cities throughout Indonesia, with an age range between 18 to 50 years, each of which brought new ideas and involved their life experiences in designing applications and making business plans.

April 17, 2024, detikInet

(https://inet.detik.com/cyberlife/d-7296329/nilai-investasi-apple-di-indonesia-tembus-rp-1-6-triliun)

Central banks and finance ministries in ASEAN countries have agreed to continue the three priority agendas of Indonesia’s previous Chairmanship in ASEAN 2023. This agreement emerged at the ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM). The 11th AFMGM in Luang Prabang, Laos from April 2 to 5 is an important forum for high-level dialogue on cooperation between central banks and finance ministries in the region, in order to strengthen solidarity between ASEAN countries on the path to financial integration. The Bank of Lao PDR (BOL) and Lao PDR Ministry of Finance are the organizers of this meeting.

Representatives from 10 ASEAN member countries were present, namely Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. The Indonesian delegation was led by the Deputy Governor of Bank Indonesia, Filianingsih Hendarta. Timor Leste was also present as an observer.

According to the Head of the Communications Department of Bank Indonesia (BI), Erwin Haryono, Sunday (7/4/2024), the three agendas initiated by Indonesia in ASEAN in 2023 are continuing, namely:

1. Expansion of regional payment connectivity cooperation or Regional Payment Connectivity (RPC). The RPC initiated by Bank Indonesia to facilitate smooth and safe cross-border payments continues to develop under the 2024 ASEAN Laos Chairmanship. This is indicated by the continued increase in countries interested in joining regional payment connectivity cooperation. On April 3, 2024, the MoU signing of the RPC was carried out which marked the joining of Laos as the 8th country to become a member of the RPC cooperation. Currently, the countries that have joined the RPC collaboration are Indonesia, Singapore, the Philippines, Thailand, Malaysia, Vietnam, Brunei and Laos.

2. Use of local currency in cross-border transactions in ASEAN or ASEAN Local Currency Transaction (LCT). In the series of 11th AFMGM meetings, the ASEAN LCT framework, the formulation of which was initiated by Bank Indonesia, succeeded in getting full support from ASEAN countries. This is expected to encourage increased use of local currency in cross-border payment transactions so that it can be beneficial for business actors to reduce trade transaction costs, encourage financial market deepening in local currency, and reduce exposure to exchange rate risk.

3. Indonesia’s efforts to improve the mandate of the ASEAN Working Committee. This initiative aims to make the ASEAN working committee more relevant to developing economic conditions, encourage innovation, increase adaptability, strengthen regional cooperation, and achieve integration and financial stability.

At the 11th AFMGM, Ministers and the Governor of the Central Bank approved the High Level Guidelines and Terms of Reference for Adjusting the Mandate of the ASEAN Working Committee. Currently two working committees have completed adjustments to their mandate, namely the working committee that handles the development of the payment system (Working Committee-Payment and Settlement System/WC-PSS) and the development of capital account liberalization (Working Committee-Capital Account Liberalization/WC-CAL). Furthermore, other working committees related to strengthening financial inclusion, financial market development, trade liberalization and banking integration have started and will continue the process of refining their mandates.

April 7, 2024, detikFinance

(https://finance.detik.com/moneter/d-7283925/bi-dan-bank-sentral-se-asean-dorong-transaksi-mata-uang-lokal-lintas-kawasan)