Tag: Indonesia and China business

Minister of Transportation Dudy Purwagandhi met with the Japanese Ambassador to Indonesia Yasushi Masaki to discuss the continuation of cooperation between the two countries in the transportation sector. Japan itself has made significant contributions to transportation projects in Indonesia, such as the development of railway systems, human resource development and training programs, and the exchange of knowledge in the field of technology.

Dudy said that the cooperation between the Ministry of Transportation and the Japan Ministry of Land, Infrastructure, Transport and Tourism (MLIT) was strengthened through the signing of a Memorandum of Cooperation (MoC) in the transportation sector on January 19, 2024. He also said that this cooperation has become more intensive, especially in the development of the Jakarta MRT project, Patimban Port, and the Bekasi Proving Ground

“We hope to increase more intensive cooperation with Japan, especially in the development of the Jakarta MRT project, Patimban Port, and the Bekasi Proving Ground,” said Dudy in his statement, quoted Tuesday (3/12/2024).

Regarding the Jakarta MRT project, Dudy hopes that with the support of the Japanese Ambassador, the MRT project can run smoothly and according to plan, so that it can improve the connectivity of the Jabodetabek area.

“I hope that with the support of the Japanese Ambassador, the Jakarta MRT project can run smoothly and according to the targets that we have agreed upon together. In addition to the construction of the MRT, I also hope that the connectivity of the Jabodetabek area can be improved through the integration of the main line with feeder services,” he added.

In addition to a number of infrastructure project developments, Dudy also conveyed the potential for future cooperation between the two countries, such as in terms of developing human resources (HR) in transportation through internship program cooperation.

“Among them are student and teacher exchanges from schools or polytechnics under the Ministry of Transportation, or guest lecturer programs from Japanese experts in the field of transportation. This aims to provide international experience that can enrich their skills and insights in the field of transportation,” explained Dudy.

December 3, 2024, detikFinance

(https://finance.detik.com/infrastruktur/d-7668244/ri-jepang-bakal-kerja-sama-infrastruktur-transportasi)

Minister of Energy and Mineral Resources, Bahlil Lahadalia together with the Canadian government established bilateral cooperation through a Memorandum of Understanding (MoU) regarding critical minerals to the energy transition in Indonesia. The cooperation was carried out between Bahlil and the Minister of Export Promotion, International Trade, and Development of Canada Mary Ng.

The memorandum of understanding covers several programs, ranging from the implementation of environmental, social, and governance (ESG) standards, reducing greenhouse gas (GHG) emissions through clean technology, to strengthening trade and investment in the mining sector.

Bahlil said that the bilateral cooperation is expected to support energy transition projects in Indonesia and encourage economic growth in Indonesia and Canada. Furthermore, Bahlil said that the cooperation will also encourage the fulfillment of energy needs in Indonesia which are considered to continue to increase. This is also said to be in line with the projected growth in domestic electricity needs reaching 61 Giga Watts (GW).

“Our current electricity is 91 GW with economic growth below 6%. President Prabowo’s target for future economic growth is 8%, so we need an additional 61 GW to support that target,” Bahlil explained in the Energy Transition Roundtable (ETR) session, quoted from an official statement, Tuesday (3/12/2024).

In addition, cooperation between Indonesia and Canada is also considered in line with the energy transition program in Indonesia which is currently being drafted through the revision of the 2025-2033 Electricity Supply Business Plan.

“We designed the 2025-2033 Electricity Supply Business Plan with a target of 60% new renewable energy. We are committed to achieving net zero emissions by 2060, even pushing for it to be faster in 2050,” he added.

Bahlil also expressed his optimism about the potential for cooperation with Canada in the field of nuclear energy. Nuclear energy itself, said Bahlil, will begin to be implemented in Indonesia in 2032.

“We know that Canada is one of the leading countries in nuclear development. The House of Representatives has approved the use of nuclear power, and we are targeting the regulation to be completed in 2025. Its implementation will begin gradually in 2032,” said Bahlil. In addition, Bahlil also emphasized the importance of this cooperation to maintain a balance between advanced technology and affordable prices.

On the other hand, the Minister of Export Promotion, International Trade, and Development of Canada Mary Ng explained that through this bilateral collaboration, her party would support the sustainable energy transition in Indonesia.

Mary revealed that the Canadian government had actually prepared funds of up to 5.3 billion Canadian dollars (CA$) equivalent to IDR 60.14 trillion (assuming an exchange rate of IDR 11,348 per CA$) to support the world’s energy transition program, including one for Indonesia.

“Our commitment to supporting Indonesia’s fair and sustainable energy transition is substantial. This includes our global climate funding of CA$ 5.3 billion, including Indonesia over the past five years,” said Mary on the same occasion.

Mary said that the funding provided by the Canadian government was partly to support key projects with the Asian Development Bank, such as the Sarulla geothermal power plant in North Sumatra and wind and solar power plants in South Sulawesi and Lombok. Mary also said that Canada is proud to be a partner in the Just Energy Transition Partnership (JETP), which aims to mobilize public and private financing of up to US$ 20 billion to support Indonesia’s energy transition.

December 3, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20241203122901-4-592960/ri-gandeng-kanada-garap-mineral-kritis-transisi-energi)

British Petroleum (BP) signed an Engineering, Procurement, Construction, and Installation (EPCI) onshore and offshore contract with two contractors worth US$ 3.6 billion or around IDR 56.5 trillion (exchange rate of IDR 15,700/US$). The first contractor is Saipem in a consortium with partner PT Meindo Elang Indah, and the second contractor is JGC Holdings Corporation, through its local subsidiary PT JGC Indonesia.

The contract signing was carried out today (26/11) by Procurement VP bp James Tehubijuluw, while the signatories from Saipem were Paolo Evangelista and Vincent Chan from Meindo. The signatories from JGC Indonesia were Soeryadi. Previously, the announcement of the final investment decision (FID) worth more than US$ 7 billion or around IDR 110 trillion for the Tangguh UCC Project was delivered by BP CEO Murray Auchincloss to President Prabowo Subianto in London on November 21, 2024.

The Indonesian government in meeting the increasing energy needs, achieving the national gas production target, and advancing decarbonization efforts to achieve national emission reduction goals. Djoko said that towards the end of 2024, the UCC Project had successfully achieved two important milestones in its development.

First. is the FID decision announced by BP management during a meeting with President Prabowo Subianto in London. Second, is the signing of the EPCI contract for onshore and offshore facilities. He asked BP to learn from the implementation of the Train 3 Project, so that BP must be proactive in addressing emerging problems and discussing them with SKK Migas to find efficient and effective solutions.

Meanwhile, Kathy Wu, BP regional president Asia Pacific, gas & low carbon energy said that the Tangguh Project has the potential to produce 3 trillion cubic feet of additional gas resources to meet the increasing energy needs in Indonesia and Asia, while supporting Indonesia’s decarbonization efforts through the reinjection of around 15 million tons of CO2 in the initial phase.

The Tangguh UCC (Ubadari, CCUS, Compression) project consists of the development of the Ubadari gas field, enhanced gas recovery through carbon capture, utilization and storage (CCUS), and onshore compression. This project also supports Indonesia’s decarbonization agenda by re-injecting around 15 million tons of CO₂ into the reservoir through one of the first CCUS technology applications developed on a large scale in Indonesia. It is projected to create around 6 thousand jobs during construction and provide a positive multiplier effect for the Papuan community. The Tangguh LNG workforce currently consists of 99% Indonesian citizens, 70% of whom are local Papuans.

November 26, 2024, detikFinance

(https://finance.detik.com/energi/d-7657807/raksasa-migas-inggris-teken-kontrak-proyek-tangguh-rp-56-5-triliun)

President Prabowo Subianto held a meeting to discuss Special Economic Zones (KEK). It was recorded that until the third quarter of 2024, KEK had attracted investment of IDR 242.5 trillion. This was conveyed by the Coordinating Minister for the Economy Airlangga Hartarto after the meeting. According to Airlangga, KEK has created 151,260 jobs with 394 companies.

“The Special Economic Zone (KEK) which aims to attract investment and also to increase exports, the total achievement so far has reached IDR 242.5 trillion, the employment of 151,260 people with 394 companies,” said Airlangga at the Presidential Palace Complex, Central Jakarta, Tuesday (11/25/2024).

Arlangga also reported that the investment value in KEK reached IDR 68.43 trillion until the third quarter of 2024. This achievement has succeeded in employing 34,199 people.

“The direction of the President (Prabowo) for these economic areas is to continue to be encouraged, continued and also processed so that investment can come in. Especially the investment that the President made yesterday on a visit abroad,” he said.

Thus, Airlangga emphasized that his party will accelerate the investment process for a number of investor projects, one of which is a data center.

In addition, he also reported news about the continuation of the National Strategic Project (PSN). Under Prabowo’s direction, Agus Harimurti Yudhoyono as Coordinating Minister for Infrastructure & Regional Development will complete the PSN which is targeted to be completed in 2024-2025.

“It is planned that 18 projects will be completed this year while 30 more will be completed in 2025. Of course, the President directed this program to be continued and later if there are other investments, they will be discussed in more detail,” said Airlangga.

November 26, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7658278/airlangga-lapor-prabowo-investasi-di-kek-tembus-rp-242-triliun)

Indonesian President Prabowo Subianto is currently visiting several countries, such as China, the United States, Peru, Brazil, England, and the United Arab Emirates (UAE). Prabowo’s overseas visit also resulted in several agreements in the economic sector. So, what are the results of Prabowo’s visit? The following is a list of the results of Prabowo’s visit to China, the US, and Peru.

1. China

In China, Prabowo’s visit resulted in two quite important agreements, such as an investment worth US$ 10.07 billion or equivalent to IDR 157 trillion and Chinese financial assistance for the Free Nutritious Meals (MBG) program. The support is stated in an MoU entitled Food Supplementation and School Feeding Programme in Indonesia. However, the government did not specify how much funding China provided and the form of support.

Prabowo brought home an investment of US$ 10.07 billion or around IDR 160 trillion (assuming an exchange rate of IDR 15,900) from his visit to China. The investment is stated in a memorandum of understanding (MoU) between Indonesian and Chinese companies.

The cooperation was initiated by the Indonesian Chamber of Commerce and Industry (Kadin) and the China Committee (KIKT). The cooperation involves 20 companies from the two countries in the fields of manufacturing, health, downstreaming, food security, and finance.

2.  United States

In the US, Prabowo’s visit resulted in three important agreements, namely the US commitment to support Indonesian food security, Acceleration of clean energy transition through the Just Energy Transition Partnership (JETP), and development of the Mineral Supply Chain.

The US is committed to supporting Indonesian food security through sustainable agriculture. This commitment was agreed upon in Prabowo’s meeting with US President Joe Biden. Not only that, the US-RI are also committed to strengthening Indonesia’s food security through promoting sustainable management practices for fisheries and aquaculture, as well as increasing the effectiveness of management of Indonesia’s marine protected areas in line with applicable laws.

In addition, Prabowo’s visit to Uncle Sam’s country also resulted in a commitment from Indonesia and the US to expand collaboration to accelerate the clean energy transition, including through JETP. JETP is a promise from developed countries, aka the G7, to fund Indonesia’s energy transition. JETP funding of US$ 20 billion or equivalent to IDR 318 trillion was agreed upon at the G20 Summit in Bali in November 2022. Unfortunately, the funding was not in the form of a grant, but rather a loan, aka debt.

3.  Peru

The two countries are committed to finalizing the Comprehensive Economic Partnership Agreement (CEPA) within the next six months. Prabowo is optimistic that the agreement can be signed during the visit of Peruvian President Dina Boluarte to Indonesia with her delegation.

CEPA is a comprehensive economic cooperation agreement that not only regulates tariff reductions, but also concerns market access, capacity building and trade facilitation, and investment. The objectives of each arrangement are to eliminate tariffs and address non-tariff barriers, maintain market access and ensure conducive conditions for service providers, and protect and encourage investment.

4.  Brazil

Indonesian and Brazilian business actors have agreed to cooperate in various sectors worth US$ 2.8 billion or around IDR 44.4 trillion. Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the signing of the Memorandum of Understanding between Indonesian and Brazilian business actors was carried out at the Indonesia-Brazil Business Forum initiated by the Indonesian Chamber of Commerce and Industry, the Indonesian Ministry of Foreign Affairs, and the Indonesian Embassy in Brazil. The sectors included in the cooperation include the financial sector, digital technology, mining, energy, livestock, and the aerospace industry.

5.  England

In England, Prabowo managed to bring in US$ 8.5 billion or around IDR 135.15 trillion worth of investment. The investment commitment was stated by a number of British company leaders when they met Prabowo at the CEO Roundtable Forum in London. They intend to invest in several areas, such as energy transition, infrastructure, education, and health.

November 22, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/research/20241122141243-128-590351/hasil-kunjungan-prabowo-ke-5-negara-bawa-investasi-triliunan-rupiah)

Indonesian Minister of Trade Budi Santoso with the Minister of Sustainability and the Environment and the Minister of Singapore’s Trade Relations, Grace Fu carried out a bilateral meeting on Thursday (11/14).

On that occasion, Budi conveyed Indonesia’s priority on the issue of micro, small and medium enterprises (MSMEs) in order to export their products. Responding to that, Singapore invited Indonesia to elaborate the ideas of MSMEs to develop digital cooperation and trade facilitation.

“We convey the priority of the issue of MSMEs to be able to export. Singapore responds well and invites Indonesia to be able to elaborate the ideas of MSMEs, especially in the development of digital cooperation and trade facilitation,” Budi said, in his statement, Saturday (11/16/2024).

The opportunity given by Singapore can support one of the Ministry of Trade’s priority programs, namely MSMEs can (dare to innovate, ready to adapt) exports.

Another issue discussed at the meeting, namely about the Annual Ministerial Dialogue (AMD) forum. AMD is a special dialogue forum at the ministerial level between the Indonesian Ministry of Trade and the Singapore Ministry of Trade and Industry.

The implementation of the AMD meeting is expected to be a means of promoting trade in goods and services including exploration of trade facilitation for MSMEs and business assessment; Discussion on the issue of trade in goods, electronic commerce/digital connectivity, halal industry, and the implementation of international trade agreements; and the search for solutions to other new issues that affect bilateral trade.

“Indonesia supports the activation of the AMD forum to promote and facilitate trade and explore new issues in international trade,” Budi said.

At the meeting, Indonesia also encouraged Singapore to invest in Indonesia, especially in the Batam and Bintan regions. The two countries also expressed their interest in cooperation in the energy and food sector.

Indonesian-Singapore Trade at a Glance: In January-September 2024, total trade between the two countries reached US $ 24.77 billion with. Indonesia’s exports to Singapore amounted to US $ 8.65 billion and Indonesia’s imports from Singapore were US $ 16.12 billion.

Thus, Indonesia’s trade deficit against Singapore is US $ 7.47 billion. In 2023, the total trade of the two countries was recorded at US $ 31.02 billion with Indonesia’s exports to Singapore of US $ 12.61 billion and Indonesia’s imports from Singapore of US $ 18.41 billion.

In 2023, Singapore ranked 6th as export destination and 2nd position as the origin of imports for Indonesia. Indonesia’s main export products are natural gas, petroleum oil,. metal jewelry, electric machines, and petroleum residues. While the main imported products of Indonesia are motorbike fuel (motor spirit), diesel fuel, petroleum bitumen, p-xylene (para-xylene), and lubricants.

Meanwhile, Singapore’s investment in Indonesia in 2023 was recorded at US $ 15.4 billion. This value increased by 15.62% compared to the previous year.

November 16, 2024, detikFinance(https://finance.detik.com/berita-ekonomi-bisnis/d-7641748/ri-dan-singapura-kerja-sama-geber-ekspor-umkm

President Prabowo Subianto held a bilateral meeting with Canadian Prime Minister (PM) Justin Trudeau on the sidelines of the APEC Summit which took place at the Five Convention Center (LCC), Peru, Friday (11/15/2024).

During the bilateral meeting, the two leaders confirmed the commitment to improve cooperation relations between the two countries, including through strengthening trade and collaboration in the strategic sector. At present, the two countries have also completed the Indonesia-Competitive Economic Partnership Agreement (ICA CEPA) negotiations.

“Canada has a very good relationship with Indonesia for decades. We want to strengthen this relationship. I think we have completed Cepa,” Prabowo said in his written statement, Saturday (11/16/2024).

President Prabowo also highlighted the fields of cooperation that could be further developed by the two countries. Starting from fisheries, manufacturing, to renewable energy.

“Indonesia is very ambitious. We have a lot of energy resources outside of fossil fuels,” said President Prabowo.

PM Trudeau also announced good news about the signing of a free trade agreement between Indonesia and Canada. According to PM Trudeau, the agreement will provide many benefits to Indonesia and Canada.

“This is good news for our economy, for growth, for prosperity, for workers, and for the business world,” said PM Trudeau.

In addition to strengthening trade relations, PM Trudeau also highlighted various potential collaboration, including in the critical mineral, education, energy, and digital technology sectors. He also announced plans to lead Canadian’s biggest trade mission to Indonesia in the near future.

“Many Canadian businesses are very enthusiastic about this opportunity,” said PM Trudeau.

November 16, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7641226/bertemu-trudeau-prabowo-teken-perjanjian-perdagangan-bebas-ri-kanada)

Tencent The Indonesian government through the special envoy of the President of the Republic of Indonesia, Hashim Djojohadikusumo succeeded in capturing a green funding of EUR 1.2 billion for the electricity sector from Kredit Astalt Für Wiederaufbau (KFW) at the Conference of the Parties (COP) 29 in Baku, Azerbaijan, Wednesday (13/ 11/2024).

The funding is used to develop a number of green electricity infrastructure towards sustainable national energy self -sufficiency. This agreement was marked by the signing of the Memorandum of Understanding (MoU) between PT PLN (Persero) and KFW for the development of a net energy project, namely the Pumped Storage Hydroelectric Power Plant (PLTA) and the transmission that connects to the green plant.

In addition, Hashim stressed that the government is committed to accelerating energy transitions. By raising collaboration to the global level, the transition to renewable energy is expected to be able to sustain energy self -sufficiency and encourage national economic growth.

“We have had a new strategy for the next five years by achieving an economic growth of at least 8% on an ongoing basis,” Hashim said in an official statement, Friday (11/15/20234).

Hashim said, the development of net energy sources played a crucial role in increasing industrial competitiveness. In the next 15 years, Indonesia’s renewable energy generation capacity is targeted to increase 75% of the total additional electricity capacity of 100 Gigawatt (GW).

“We will become a big country that will fulfill responsibility in maintaining the future of the environment. We greatly appreciate international cooperation that has been established as a form of joint effort to achieve the Net Zero Emission (NZE) target,” Hashim explained.

PLN President Director, Darmawan Prasodjo revealed, PLN fully supports the government’s steps to run energy transitions. Various collaboration and initiatives have been carried out by PLN to succeed sustainable electrical projects.

He added, KFW’s involvement in PLN green projects was expected to be able to attract more international partners to collaborate. So that, a strategy, technical and continuous investment collaboration will be created in global climate actions.

“This collaboration marks PLN’s proactive steps in expanding international partnerships in improving sustainable national energy self -sufficiency in the direction of global climate actions,” Darmawan said.

KFW Group’s Sustainability Officer, Jürgen Kern explained KFW’s support for Indonesia was a form of Germany’s commitment in supporting international cooperation to achieve green transformation.

Moreover, according to Jürgen, PLN is the center of energy transition in Indonesia. PLN has a strong commitment to green the energy sector while ensuring reliable energy access.

“Therefore, we believe that Indonesia-German continues to strengthen partnerships in the energy sector. Especially in clean energy projects such as geothermal, water and also transmission. To achieve NZE targets, good collaboration and partnership are needed,” Jürgen said.

November 15, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20241115144010-4-588533/ri-sukses-pikat-pendanaan-hijau-eur-12-miliar-di-cop-29)

The 8th President of Indonesia, Prabowo Subianto visited the Chinese President Xi Jinping on 8-10 November 2024. Prabowo’s visit to Beijing produced several important points that increasingly tightened Indonesia’s relations with China.

For example, Indonesia and China agreed to hold the first meeting of the 2+2 dialogue mechanism for the Foreign Minister and the Minister of Defense in 2025. This functions as the main platform to expand high -level strategic communication and political, security and defense cooperation between the two countries .

Previously, in August 2024, Indonesia and China held a meeting of the 2+2 dialogue mechanism to build regional stability. During the meeting, China stated a clear establishment and proposal regarding issues concerning Chinese core interests and concerns such as the issue of the Taiwan Strait and the South China Sea. In response, Indonesia expressed its commitment to the principle of one China and proposed an appropriate dispute through peaceful negotiations, in order to maintain peace and stability in the South China Sea. In addition, Indonesia reiterated its consistent compliance with the principle of one China, in accordance with the resolution of the UN General Assembly 2758. This recognition refers to the Government of the People’s Republic of China is the only legal government representing all China and that Taiwan is a part that cannot be revoked from China and support peaceful national reunification.

Furthermore, Indonesia and China also officially signed an agreement worth US $ 10 billion or IDR156  trillion at the Indonesia-China Business Forum in Beijing on Sunday (11/10/2024). This cooperation will cover various sectors including food, new energy, technology, and biotechnology.

Launching Reuters on Monday (11/11/2024), the manufacturer of China battery materials GEM signed an agreement with PT Vale Indonesia to build a high-pressure acid pelindian factory in Central Sulawesi. According to the submission in Shenzhen, this cooperation is partly to secure nickel resources. The nickel industry in Indonesia, the largest metal producer in the world, is dominated by Chinese companies including Tsingshan Holding Group and Zhejiang Huayou Cobalt.

In a joint statement after the leaders’ meetings, the two countries agreed to increase collaboration in various sectors such as new energy vehicles, lithium batteries, photovoltaic, and digital economy. They also promised to strengthen partnerships in global energy transitions and jointly ensure the security of global mineral supply and industrial chains. Prabowo, through a separate statement, said he was optimistic that the close cooperation between the two countries would increase regional stability.

According to him, this meeting was an opportunity to strengthen Indonesia-China relations which had been running for several centuries. Prabowo also underlined that China was not only seen as a great force, but also as a large civilization that had long been established with Indonesia.

The cooperation agreement between Indonesia and China signed is:

1. Phytosanitari requirements protocol for fresh coconut exports from Indonesia to China;

2. Technical Work Guidelines for promoting sustainable capture fisheries;

3. Memorandum Understanding about the strengthening of blue economic cooperation;

4. Memorandum Understanding each other about cooperation between mineral resources;

5. Memorandum Understanding each other about the collaboration of green minerals;

6. Memorandum Understanding mutual cooperation in the field of water resources; and

7. Memorandum Understanding mutual cooperation of conformity assessment.

November 11, 2024, CNBC Indonesia(https://www.cnbcindonesia.com/news/20241111114345-4-587224/deal-prabowo-temui-xi-jinping-ri-china-kantongi-kesepakatan-rp156-t)