Category: Economy

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2021 Data: Total Indonesia Population 273 Million People, More Men than Women

            The Directorate General of Dukcapil, Ministry of Home Affairs (Kemendagri) updated the population data for the second semester of 2021. The total population of Indonesia as of December 30, 2021, was 273,879,750 people. “There is an increase of 2,529,861 people compared to 2020,” said the Director-General of Dukcapil, Zudan Arif Fakrulloh, in a written statement, Wednesday (23/2/2022). Zudan said that of the total 273 million people, 138,303,472 people were men (50.5%). While the other 135,576,278 people are women (49.5%).

            The area with the largest population at the provincial level is West Java (Jabar) with a population of 48,220,094 people. Meanwhile, North Kalimantan Province is the province with the least population of 698,003 people. At the district/city level, Bogor Regency is the area with the largest population of 5,327,131 people.

Feb 24, 2022, DetikNews

(https://news.detik.com/berita/d-5957686/data-2021-total-penduduk-indonesia-273-juta-jiwa-laki-laki-lebih-banyak)

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How’s the IDX Movement in the Middle of the Russia-Ukraine War?

The Indonesia Stock Exchange (IDX) composite this week tends to be slightly corrected, amid the escalating conflict between Russia and Ukraine until this weekend. Throughout this week, the Indonesia’s benchmark stock market index fell slightly by 0.05% point-to-point. On Friday’s trade yesterday (25/2/2022), the Indonesia Stock Exchange (IDX) composite closed up 1.03% to 6,888.17.

Feb 26, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220226160216-20-318673/apa-kabar-pergerakan-ihsg-di-tengah-konflik-rusia-ukraina)

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Russia and Ukraine War, IDX Composite Direct Dropped 2,3%!

            IDX composite fell as a result of the Russian invasion of Ukraine. IDX continues to be in the red zone since this morning. The IDX composite this morning was observed to have weakened since pre-trade. In pre-trading, the JCI fell 7 points (0.11%) to 6,912. While the LQ45 index also fell 3 points to the level of 981. Then at 9:05, the IDX  was still declining today. JCI fell 22 points or 0.33% to a level of 6,817. Meanwhile, the LQ45 index was also at the level of 981 or down 4 points (0.41%). At the close of the first trading session, the JCI stopped at the level of 6,807 down to 112 points or 1.63%. The LQ45 index also fell 1.54% or fell 15 points to 969. When trading reopened, the JCI continued to fall. JCI even fell by 159 points or 2.31% to the level of 6,760. The LQ45 index fell 22 points, or 2.23%, to 963.

            However, based on Artha Sekuritas’ research, the IDX has the potential to penetrate the all-time high. Globally, there are still concerns about the tensions of Russia’s invasion of Ukraine. Meanwhile, there is a daily increase in Covid-19 cases within the country, although they are being neglected.

Feb 24, 2022, DetikFinance (https://finance.detik.com/bursa-dan-valas/d-5956842/rusia-serang-ukraina-ihsg-langsung-anjlok-23)

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Aquaculture Start-ups Make Waves in Indonesian Fisheries

A millennial-driven wave of digitalization has been sweeping across Indonesia’s aquaculture industry. In Yogyakarta, which is a major producer of tilapia and catfish, PT Banoo Inovasi Indonesia is helping fish farmers raise the output of the two freshwater species. Banoo produces an aquaculture system called MycroFish that uses aerators and sensors to ensure fish ponds maintain optimal levels of oxygen, acidity, and temperature. The company claims the system increases pond productivity by up to 42 percent. Banoo chief marketing officer Lakshita Aliva Zein said the company hoped to sell 100 devices this year. A total of 62,208 freshwater fish farmers were operating in the province in 2020.

“We hope we can get more fish farmers to benefit from our products moving forward,” said the fisheries science graduate from Gadjah Mada University on Feb. 10.

Tilapia and catfish are the country’s most widely produced aquaculture products after seaweed, according to 2017 statistics. The species made up 8.2 percent and 7.2 percent, respectively, of the 15.52 million tons of national aquaculture production in 2017, Statistics Indonesia (BPS) data show.

There are over 700 start-ups in the country’s aquaculture industry, according to aquaculture start-up group Digifish Network, which has 30 members itself. These start-ups are competing to tap into a market that the Marine Affairs and Fisheries Ministry expects will be worth US$17.47 billion by 2024. Industry incumbents include eFishery, which bagged $90 million in its series C funding round on Jan. 10, and Aruna, which took in $30 million in its series A round on Jan 26.

Aquaculture has been gaining traction around the world. Its contribution to the total production and capture of aquatic animals has risen steadily from 25.7 percent in 2000 to 46 percent in 2018, FAO data shows.

Feb 21, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/02/20/aquaculture-start-ups-make-waves-in-indonesian-fisheries.html)

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Indonesia and South Korea Central Banks Ink Partnership Deal

Bank Indonesia (BI) and Bank of Korea signed on Wednesday a memorandum of understanding (MoU) to work closer together on monetary-related issues. The MoU covers policy dialogue, technical discussions, capacity building, joint research, and other relevant forms of cooperation in the area of monetary and macroprudential policy, financial system stability, and payment and settlement systems, among other things. The latter issue includes jointly developing cross-border and digital payment infrastructure.

“Going forward, the cooperation also provides a strong framework for partnership in responding to the future challenges and in embarking on various innovations,” BI communication head Erwin Haryono in a statement.

The announcement of the MoU came just a day before the Group of 20 (G20) Finance Ministers and Central Bank Governors Meeting. The MoU adds to the central bank’s long list of cooperation with other central banks and is the second to be signed during Indonesia’s G20 presidency that started on Nov. 1 last year.

“The MoU is expected to serve as an opportunity to substantially strengthen future cooperation with Indonesia, the largest economy in the ASEAN region and one with high growth potential,” said the Bank of Korea in a statement.

On Nov. 8 last year, BI signed a similar MoU with the Central Bank of the United Arab Emirates (CBUAE) to cooperate in developing cross-border payment systems, securing transactions, addressing money laundering, and combatting terrorism financing. In the statement, BI pledged to continue expanding partnerships with many other international partners.

“Such cooperation is an integral part of BI’s contribution to the national economy while also serving as an important development in line with the spirit of the 2022 Indonesia G20 Presidency,” Erwin said.

Feb 17, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/02/17/indonesia-s-korea-central-banks-ink-partnership-deal.html)

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DX Composite (IHSG) 3 Times Prints the Highest Record!

            IDX Composite  (IHSG) has successfully recorded a strengthening this week, even setting an all-time high 3 times. The large inflow of foreign capital into the country became one of the factors that boosted the IDX Composite performance, as well as domestic economic data. According to data from Refinitiv, the JCI rose 1.25% this week to 6,815.607. The stock of the pride of the country for the first time set an all-time high of 6,806.730 on Monday (7/2), then rose again the day after at 6,860,750. Then it rose again last Thursday at 6,874.351 before finally being corrected.

            Throughout this week, foreign investors recorded a net buy of Rp7.05 trillion in the regular market, and when added to the cash and negotiable market, the total amounted to more than Rp7.6 trillion. The transaction value was recorded at more than Rp68 trillion. IDX composite is even still able to strengthen even though the United States central bank (The Fed) is expected to raise interest rates by 50 basis points next month after the release of inflation data which shot up to 7.5% year-on-year (YoY).

            Domestically, Bank Indonesia (BI) indicated that it would not raise interest rates this year, which had a positive impact on the JCI. “Bank Indonesia will continue to maintain the interest rate at 3.5% until there are signs of a fundamental increase in inflation, our prediction will occur in 2023, and for that, we will review the stand of monetary policy, especially interest rates in the third quarter of 2015. this,” said Perry. Perry added that the policies taken by BI will depend on inflation data, economic growth, and various macro, monetary and other financial system indicators.

            In addition, BI also reported an increasingly optimistic level of consumer confidence earlier this year. The Consumer Confidence Index (IKK) survey released by BI showed 119.6 in January, higher than the previous month’s 118.3. IKK uses the number 100 as the total measure. Below it is pessimistic, above it is optimistic. When consumers are more optimistic, spending will increase and ultimately spur economic growth.

Feb 12, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220211211626-17-314866/ri-ketiban-duit-rp-76-t-ihsg-3-kali-cetak-rekor-tertinggi)

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BBRI’s Market Cap Could Reach Rp1,000 Trillion in the Next Several Years

            The slick performance of PT Bank Rakyat Indonesia Tbk (BBRI) during the pandemic seems to have made the Ministry of State-Owned Enterprises (BUMN) optimistic that Indonesia’s largest bank, in terms of assets, will reach a market capitalization of Rp1,000 trillion in the next few years. Deputy Minister of State-Owned Enterprises, Kartika Wirjoatmodjo in the BRI Microfinance Outlook 2022 Webinar entitled “Boosting Economic Growth Through Ultra Micro Empowerment”, Thursday (10/2/2022) said “Currently this state-owned bank that focuses on the ultra-micro segment still has a market cap in the range of Rp670 trillion. However, it is believed that over time, the economic value of this company will continue to increase. We also believe that from an economic point of view, BRI is a very unique bank. Currently, BRI’s market cap reaches Rp. 670 trillion and we have a target for the next few years. in the future it could approach Rp 1,000 trillion,” said Kartika.

            Kartika’s optimism is not without foundation. During 2021, BRI managed to record a net profit of Rp32.21 trillion as of December 2021 from the previous year of Rp18.35 trillion, or an increase of 75.53%. The increase in the company’s net profit is in line with the increase in interest income to Rp143.52 trillion at the end of 2021 from Rp135.76 trillion in the previous year. Meanwhile, interest expense was recorded at Rp29.43 trillion from the previous year of Rp42.18 trillion. So, on a consolidated basis, the net interest income of the issuer bank codenamed BBRI is Rp114.09 trillion, an increase of 21.91% from the previous Rp93.58 trillion.

            Throughout 2021, the company disbursed loans on a consolidated basis of Rp994.41 trillion, up 5.36% from the same period in the previous year of Rp943.79 trillion. This increase is in line with the increase in the company’s total assets to Rp1,678 trillion as of the end of December 2021 from the previous year’s Rp1,610 trillion. In terms of the ratio of non-performing loans or gross non-performing loans (NPL), the company recorded an increase from the position of December 31, 2021, at the level of 2.98 percent to 3.08%. Meanwhile, net NPL slightly improved from 0.80% to 0.70%. Meanwhile, BBRI’s net interest margin (NIM) grew 6.89% in December 2021 from 6% in the previous year with a loan to deposit ratio (LDR) at the level of 83.67% in December 2021, not much different from the previous year at the level of 83.66%.

Feb 11, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220211082239-17-314582/sobat-cuan-kode-keras-nih-market-cap-bbri-bisa-rp-1000-t)

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Erick Thohir Says Telkom the Biggest Digital-Telco in ASEAN

            I Minister of State-Owned Enterprises (BUMN) Erick Thohir is optimistic that in the next three years, PT Telkom Indonesia Tbk (TLKM) can become the largest digital telecommunications company in Southeast Asia. Based on the development of tower construction carried out by the company’s subsidiary, PT PT Dayamitra Telekomunikasi Tbk (MTEL) or Mitratel in the last three years.

            “I am optimistic with the planning and implementation of this tower infrastructure development, in the last three years. Telkom can become the largest digital telco company in Southeast Asia,” Erick said in a short video received by CNBC Indonesia, Friday (11/2/2022). Telkom’s task, continued Erick, through the construction of this telecommunication tower is to capture new values that support the company’s income. “New value capture,” said Erick.

            Mitratel development, said Erick, is in line with the agenda of building a 5G ecosystem. This project has started with the 5G Mining Project in collaboration between Freeport and Telkom. “In addition, we have also carried out other initiative programs to support digitalization, including in the financial sector (using artificial intelligence), health (via telemedicine), logistics (integrated logistics system), and transportation (ecosystem for autonomous vehicles),” said Erick.

            Telkom President Director Ririek Adriansyah said “Telkom is currently continuing to accelerate the transformation and structuring of its portfolio for optimal value creation for TelkomGroup, stakeholders and the nation and state. Focus on increasing tower business, data center, infrastructure managed services, cloud computing, big retail data, and services will strengthen Telkom’s position as a business partner providing digital connectivity, digital platforms, and digital services for both domestic and regional”.

Feb 11, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220211145306-17-314759/wow-erick-sebut-telkom-jadi-digital-telco-terbesar-di-asean)

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This is the Official Name of the MotoGP Race in Indonesia

            The MotoGP race held at the Mandalika Circuit now has an official name. In collaboration with Pertamina as a sponsor, the king of the motor racing event is entitled Pertamina Grand Prix of Indonesia. The inauguration of the official name of Pertamina Grand Prix of Indonesia occurred after Pertamina signed a partnership with Dorna. The signing was carried out directly by the President Director of Pertamina, Nicke Widyawati, and the Managing Director of Dorna Sports, S.L, Carlos Ezpeleta (online). The Minister of Stated-Owned Enterprises, Erick Thohir, also witnessed the signing in Jakarta, Wednesday (9/2/2022).

            Pertamina has also become the main sponsor of the Mandalika Circuit. The agreement between the two parties made the name of the Mandalika Circuit officially changed to Pertamina Mandalika International Street Circuit. Pertamina Grand Prix of Indonesia” is expected to help the national economic recovery, increase tourism potential, and advance the motorsports ecosystem in Indonesia. “Hopefully the presence of this SOE synergy will provide a multiplier effect and become part of the national economic recovery, as well as an opportunity for broad global market penetration for Pertamina, BUMN, and SME products located in Mandalika and other areas,” said Nicke Widyawati.

Dorna Welcomes Pertamina

Carlos Ezpeleta positively welcomed the inclusion of Pertamina as the main supporter of the Grand Prix of Indonesia. Previously, Pertamina had been wara-wiri in the Grand Prix racing event by supporting the SAG Pertamina Mandalika team that competed in the Moto2 World Championship.”Dorna Sport is proud to announce a cooperation agreement for the Pertamina Grand Prix of Indonesia. And will ensure that Pertamina, Indonesia, and Lombok Island are at the forefront and become the center of attention on the international stage,” said Carlos.

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Hartono Family Receives Rp8.6 Trillion From BCA

            Throughout 2021, the big bank made an impressive financial performance. One of them is PT Bank Central Asia Tbk (BBCA). Based on the company’s financial statements, BBCA’s net profit reached Rp31.42 trillion or grew 15.8% year on year (YoY) compared to the previous year. For the record, this is the highest net profit ever recorded by BBCA in history. BBCA’s solid performance was supported by an increase in net interest income which rose by 3.5% YoY and a decrease in provision or provision expenses by 19.6% YoY. With such a smooth performance, shareholders will certainly benefit greatly, especially considering that the dividend distribution period is near.

Like one of the blue-chip stocks, BBCA consistently experiences profit growth every year. To note, in the 2015-2020 period, BBCA’s net profit increased by Rp18.02 trillion to Rp27.13 trillion. At the same time, BBCA’s Dividend Payout Ratio (DPR) continues to increase from only 21% in 2015 to 50% in 2020. With the growth in profits and the increase in the DPR, dividends received by shareholders BBCA is compounding up 29% per year. As is well known, the controlling shareholder of this big bank is the richest person in Indonesia, namely the Hartono brothers who own the Djarum Group.

The Hartono brothers’ income from the BBCA dividend in 2020 is even more fantastic. With a 50% DPR, the funds obtained by the brothers who own the Djarum Group reach almost Rp7.5 trillion. If the DPR assumes that the BBCA’s 2021 performance is the same as that of 2020 at around 50%, then the total cash dividends awarded will reach Rp15.71 trillion and Robert and Michael Hartono have the potential to pocket funds from dividends before tax of Rp8.6 trillion. This figure is also obtained only from BBCA dividends not to mention from other business lines such as cigarettes and other Djarum Group companies.

Feb 09, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220209000339-17-313889/gokil-keluarga-hartono-bisa-raup-rp-86-t-dari-bca)