Category: Goverment

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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.