Category: Goverment

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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)

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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)

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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)

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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)

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Jokowi Directly Reviewing Mandalika 2022 MotoGP Preparations

            President Joko Widodo visited Lombok, West Nusa Tenggara on Thursday (13/1). One of Jokowi’s agendas there is to directly review the preparations for the 2022 Mandalika MotoGP. Jokowi and First Lady Iriana departed from Jakarta at around 07.00 WIB. They used the Indonesia-1 Presidential Aircraft from the Halim Perdanakusuma Air Force Base.

            “Arrived at Lombok International Airport Zainuddin Abdul Madjid, Central Lombok Regency, President Jokowi is scheduled to review a number of airport facilities that will be used by MotoGP 2022 participants and spectators,” quoted from a written statement by the Presidential Secretariat. After that, Jokowi will visit the Mandalika Special Economic Zone (SEZ), Central Lombok Regency. He will review the readiness of the bypass route and supporting facilities in the area where the 2022 MotoGP will be held.

The former mayor of Solo will also inaugurate the launch of In journey Holding BUMN for Tourism and Support. The event was held at Kuta Mandalika Beach, Central Lombok Regency. This is Jokowi’s second working visit to Mandalika in the last three months. On November 12, 2021, Jokowi visited Mandalika to review the preparations for the Superbike World Championship (WSBK). At that time, Jokowi tested the circuit that would be used in WSBK. He rode a motorbike accompanied by a number of officials, such as PUPR Minister Basuki Hadimuljono and MPR Chairman Bambang Soesatyo.

Dorna CEO: MotoGP Mandalika in Indonesia is Important

            CEO of Dorna Sports, Carmelo Ezpeleta, revealed how important the MotoGP Mandalika 2022 in Indonesia is for the future of Grand Prix racing. Indonesia for the first time since 1997 will hold a MotoGP race. The Mandalika Circuit, Central Lombok, will hold the Mandalika MotoGP race on March 18-20, 2022.

            Ezpeleta at the EFE Forum Sports Business Days event in Spain, Thursday (13/1), revealed how important the Mandalika MotoGP race is in Indonesia. For Ezpeleta, the Southeast Asian region is very important for the MotoGP event, that’s why holding a race in Indonesia is very necessary. “Universality is very important for MotoGP, especially above all, when it is the Southeast Asian region,” said Ezpeleta as quoted by Mundo Deportivo.

            There are a total of 21 races in MotoGP 2022, including the Mandalika MotoGP in Indonesia. Ezpeleta said one of the conditions for a country to be able to hold a MotoGP race is that there is no long quarantine regulation. “The truth is, if they tell us that we have to be quarantined for 14 days, the answer is clear: No, I’m not coming! That’s the limit.” Said Ezpeleta. Currently, the Indonesian government is still implementing quarantine rules for 14 days, to prevent the new variant of Covid-19, Omicron. We’ll just see the regulations related to quarantine rules in the future.

January 13, 2022, CNN Indonesia

(https://www.cnnindonesia.com/nasional/20220113075441-20-745976/jokowi-tinjau-langsung-persiapan-motogp-mandalika-2022)

January 14, 2022, CNN Indonesia

(https://www.cnnindonesia.com/olahraga/20220114114159-156-746592/ceo-dorna-motogp-mandalika-di-indonesia-sangat-penting)

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G20 Economic Benefits Twice as Big as IMF Annual Meetings

            The Coordinating Ministry for Economic Affairs predicts that the economic benefits of the G20 2022 Presidency for Indonesia will be 1.5 to 2 times greater than the IMF World Bank Group Annual Meetings in 2018. Head of the Bureau of Communications, Information Services, and Sessions, Haryo Limanseto, said that a physical meeting in the series of G20 Presidents will boost domestic consumption. In addition, many MSMEs will be involved during the G20 Presidency.

“If the meeting is held physically, there will be an increase in domestic consumption of up to Rp. 1.7 trillion,” said Haryo on the official website of kemenkeu.go.id. In addition, physical meetings will also increase the national Gross Domestic Product (GDP) up to Rp7.4 trillion. Then, Haryo predicts that there will be a workforce absorbtion of 33.000 in various sectors. Another benefit of the G20 Presidency for Indonesia is international branding.

The G20 forum will also encourage investment from G20 members and international organizations in Indonesia. Then, the international event will also broaden the public’s knowledge, especially the younger generation. The G20 presidency will discuss various matters, such as the financial pathway and sherpa pathway.

The sherpa pathway is part of the engagement group represented by civil society organizations, so that the discussion results from the sherpa pathway are not limited to top-down interests, but also open up opportunities for various stakeholders. The sherpa pathway will also focus on empowering MSMEs, such as encouraging the digitization of MSMEs, training in the context of upskilling MSMEs, and encouraging various pro MSME policies. “Thus, the output of this forum could have an impact on the community,” said Haryo.

January 14, 2022, CNN Indonesia

(https://www.cnnindonesia.com/ekonomi/20220114093505-532-746484/manfaat-ekonomi-g20-dua-kali-lebih-besar-dari-imf-annual-meetings)

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Because of Indonesia, Tin Price Breaks the Highest Record!

The world tin price set a new record high after the release of export data from Indonesia. On Tuesday (11/1/2021), the world tin price was recorded at US$ 40,125/ton, this figure rose 0.52% compared to yesterday’s position of US$ 39,918/ton. Indonesia’s refined tin exports in December reached 7,966.70 tons, according to data from the Ministry of Trade. This number grew 26.10% compared to the previous month. When compared to December 2020, Indonesia’s exports rose 24.94%. In accumulation, Indonesia’s refined tin exports in 2021 will reach 74,671.65 tons. An increase of 14.11% compared to 2020 of 65,435.95 tons.

Indonesia is the second-largest producer of refined tin in the world after China. The significant increase in refined tin exports from Indonesia is a signal that the demand for tin is still high. Exports were led by shipments to Singapore, the Netherlands, and India.

Tin is used in consumer electronics such as smartphones, laptops, and digital via soldering in semiconductors. Demand also comes from the new renewable energy (EBT) sector. Tin solder is a major part of photovoltaic cells, which are the main components that make up solar panels.

Jan 11, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220111150828-17-306420/harga-timah-tembus-rekor-tertinggi-gara-gara-indonesia)

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Indonesia Causes Coal Price Drops Almost 4%

          The price of coal on the Newcastle (Australia) ICE market closed at US$ 170/ton. A fall of 3.95% compared to the closing position of trading last weekend. In the previous trading, coal prices decreased by 1.67%. In two trading days, the price of this commodity fell 5.55%. This happened when the government of Indonesia, President Joko Widodo announced a policy that shocked the world. Indonesia banned coal exports for a month to ensure sufficient domestic demand, especially for power plants.

            Indonesia is the world’s largest coal exporter. Many countries depend on coal supplies from Indonesia, such as China 127.7 million tons, India 97.5 million tons, the Philippines 27.4 million tons, Japan 26.9 million tons, Malaysia 26.1 million tons, South Korea 24.7 million tons, Vietnam 17.8 million tons, Taiwan 17 million tons, Thailand 16.8 million tons, and Bangladesh 7.2 million tons. When the government announced the cessation of exports, coal prices rose three days in a row. During those three days, the increase was up to 18.85%. The absence of supply from Indonesia will make coal stocks in the world market run out.

            However, the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan said that the Indonesian government is ready to reopen the faucet for coal exports. Currently, the supply of coal for domestic power plants is sufficient (Managed by PT PLN (Persero). “Everything is good, we have gradually increased the number of days from 15 days to 25 days, for reserves,” Luhut said. As a result, prices are gradually falling.

Wow! Coal Price ‘Flying’ 9%!

Previously on January 11, 2022, the price of coal had fluctuated due to the floating policy of the Indonesian government. Currently, the price of coal has increased significantly again. The increase in coal prices was more than 9%. Yesterday, the price of coal on the Newcastle (Australia) ICE market closed at US$ 189.75/ton. Soared 9.56% from the previous day’s closing position. In the last two days, coal prices rose sharply. On January 12-13, 2022, the price of coal soared to 12.88%.

It seems that news from Indonesia is again the main cause of coal price driving. The Indonesian government confirmed that coal exports were still closed, the ban had not been lifted. “We will released it gradually. Anyway, if it meets the criteria, it will be released,” said Jodi Mahardi, Spokesperson for the Coordinating Ministry for Maritime Affairs and Investments. The government also provides conditions that must be met if the company wants to export.

  • First, companies that have fulfilled sales contracts to PT PLN (Persero) and are required to supply 100% of domestic needs (Domestic Market Obligation/DMO) in 2021 will be allowed to start exporting this year.
  • Second, coal companies that already have a contract with PT PLN (Persero) but have not fulfilled their contractual obligations and the DMO for 2021, must fulfill the obligation of fines in accordance with the Decree of the Minister of Energy and Mineral Resources Number 139 of 2021.
  • Third, for companies whose coal specifications do not meet PLN’s needs or do not have a contract with PLN in 2021, they will also be subject to a fine with the same mechanism according to the Decree of the Minister of Energy and Mineral Resources Number 139 of 2021, based on the volume of DMO allocation given to each company.

Indonesia’s policy regarding coal has indeed greatly influenced and moved prices. Understandably, Indonesia is the number one coal exporter in the world.