Tag: Indonesia and China business

President Joko “Jokowi” Widodo has reeled in investment commitments from Japanese organizations for the Nusantara Capital City (IKN) project during the Group of Seven (G7) Summit in Hiroshima. On the sidelines of the summit over the weekend, Jokowi met with 33 Japanese delegates comprising three government officials and representatives from 24 companies, four business associations, and two financial institutions.
“That meeting discussed investment cooperation in Indonesia’s priority sectors, mainly highlighting investments in IKN development,” Foreign Minister Retno L.P. Marsudi told an online press conference on Sunday.
The results of the President’s meeting included five memorandums of understanding (MoUs) the IKN Authority signed with the Japan International Cooperation Agency (JICA), the Japan Bank for International Cooperation (JBIC), the Japan International Association for the Industry of Building and Housing (JIBH), the Japan Conference on Overseas Development of Eco-Cities (J-CODE) and the Urban Renaissance Agency (UR). The meeting also resulted in 24 letters of intent (LoIs) between the IKN Authority and Japanese companies, though no details were disclosed at Sunday’s press conference. According to Investopedia, moUs contain broad outlines of an agreement between two or more parties, while LoIs are nonbinding documents that declare a preliminary commitment to do business together.
“And Mr. President called for the Japanese companies to invest in other priority sectors, such as the downstream industry and the energy transition. The President stated several times that he was happy to cooperate with Japan because it had good quality. In the meeting with CEOs, the President addressed several points, that amid global economic uncertainty, the Indonesian economy was one of the most resilient” Retno told reporters.
Jokowi also spoke about investment opportunities in the IKN project during his meeting with South Korean President Yoon Suk Yeol, in addition to electric vehicles, renewables, and the chemicals industry. Citing the International Monetary Fund (IMF), Retno said the Indonesian economy was projected to grow 5% this year and 5.1% in 2024.
On Saturday, Jokowi met with IMF managing director Kristalina Georgieva as a side event of the G7 Summit. During that meeting, the IMF presented its assessment of the condition of the Indonesian economy as good and stable, with growth exceeding the global average. Jokowi also met with French President Emmanuel Macron on the sidelines of the G7 Summit, during which the two leaders discussed France’s 500-million-euro (US$541 million) assistance via the French Development Agency (AFD) for Indonesia’s energy transition program. They also spoke about a plan to form a joint venture between Indonesia’s state-owned defense firm PT Len Industri and Paris-based manufacturer Thales. At the summit, Jokowi raised his concern about the sluggish progress of G7 countries in fulfilling their financing commitment to the Just Energy Transition Partnership (JETP) for Indonesia and the JETPs for South Africa and Vietnam.
On Monday, Yamada Junichi, executive senior vice president at JICA, said investors under the agency are ready to support investment in infrastructure for the new capital, such as renewing Balikpapan airport and power supply facilities. Tadashi Maeda, chairman of the board of JBIC, said in the same statement that the lender is committed to supporting the new capital development by focusing investment on renewable energy such as hydropower.

May 22, 2023, The Jakarta Post
(https://www.thejakartapost.com/business/2023/05/22/jokowi-bags-ikn-investment-commitments-from-japanese-firms.html)

The Indonesian Rupiah issued in 2022 managed to receive an award from the International Association of Currency Affairs (IACA). The Rupiah defeated the currency from dozens of other countries. Rupiah became
the Best New BankNote Series at the 17th Currency Award in 2023 in Mexico. IDR 100,000, IDR 50,000, IDR 20,000, IDR 10,000, IDR 5,000, IDR 2,000 and IDR 1,000, Head of the Department of Money Management of Bank Indonesia (BI) Marlison Hakim revealed that with this award means the Rupiah is recognized by the world.
“There are 11 countries, including Indonesia which are nominees. Then five finalist countries were chosen. Of the five finalist countries, Indonesia was named the winner,” he told AFP on Thursday (5/18/2023).
Marlison explained that the winner’s assessment element was determined through criteria that included innovation and unique security features, integration of historical elements with local content related to the publisher country, the effectiveness of integrating security features, and the aesthetics of the appearance and design of banknotes.
The achievement at the highest position of the Rupiah TE 2022 in the world-level award is one form of international affirmation of the quality of the Indonesian Rupiah. This success continues the previous achievement achieved by the 75 -year -old Independence Day of the Republic of Indonesia IDR 75,000 as the Best Commemorative finalist at the 2022 Currency Award.
Executive Director of the BI Communication Department Erwin Haryono explained that the Iaca Currency Awards were awards given to the achievements of the development and innovation in the cash payment sector, which was participated by 29 countries in 2023. The peak of this award was packaged in a conference held in Mexican City.
The Iaca Award began in 2007 to promote and recognize the quality of banknotes and coins, processes, management, distribution, and cash-related activities. Iaca, domiciled in Texas, USA, established in 2004, is an independent non-profit organization that drives the quality of the cash cycle, functioning as a forum for consultancy and collaboration for the perpetrators of the cash payment system whose members consist of the central bank, the money publishing authority, and industry Like money printing companies, suppliers of money printing materials.
“This Rupiah is equipped with various strengthening and innovations in the design aspects, safety elements, and money materials so that the Rupiah money is more beautiful, safer, and more durable,” he said.
Innovation and strengthening of the Rupiah make the Rupiah more easily recognized, challenging to falsify, and have a more extended distribution period so that the Rupiah money is increasingly qualified and trusted and becomes a legal means of payment and symbols of the sovereignty of the Unitary State of the Republic of Indonesia.

May 18, 2023, detikFinance
(https://finance.detik.com/moneter/d-6726505/top-rupiah-menang-penghargaan-dunia-kalahkan-mata-uang-29-negara)

Indonesian Minister of Trade Zulkifli Hasan and Egyptian Minister of Trade and Industry Ahmed Samir Saleh signed a memorandum of understanding (MoU) to form a Joint Trade Committee (JTC). The cooperation aims to promote and increase trade cooperation between the two countries. This was revealed by Zulhas during a bilateral meeting between the two ministers in Cairo, Egypt, today. The signing of the MoU was included in the Minister of Trade Mission Zulkifli Hasan series to Egypt, May 14-16, 2023.
“Today, Minister Ahmed and I have signed an MoU for the formation of JTC Indonesia-Egypt,” Zulhas said in a written statement Monday (5/15/2023).
He said efforts to promote and improve trade cooperation between the two countries could be taken by JTC, among others, through the identification and application of steps to increase trade relations, solving problems and trading barriers, as well as the role of a medium of consultation and exchange of trade information. Both countries project JTC to become a medium that can accommodate aspirations and input from the community of business actors in each country.
“I hope that the JTC forum can be utilized optimally to identify the various potentials of increasing trade in the two countries as well as a forum for completing trading obstacles oriented to common interests,” he explained.
He added the formation of JTC based on the leaders’ joint statement of Indonesian President Joko Widodo and Egyptian President Abdel Fatah Al-Sisi during the visit of Egypt’s President to Jakarta on 4 September 2015.
Zulhas said that the total trade in Indonesia and Egypt in January-March 2023 was recorded at US $ 432.90 million, consisting of exports of USD 379.40 million and imports of US $ 53.50 million. Indonesia’s surplus of US $ 325.80 million. In the last five years (2018-2022), Indonesia consistently recorded a trading surplus against Egypt, with a trend of 9.82 percent.
Meanwhile 2022, the recorded total Indonesian and Egyptian trade reached US $ 1.56 billion. Indonesia’s exports to Egypt were recorded at US $ 1.43 billion, and Indonesia’s imports from Egypt were US $ 226 million. Indonesia’s surplus over Egypt of US $ 1.11 billion.
“Indonesia’s main export products to Egypt include palm oil, coffee, coconut, thread, and spare parts. Meanwhile, the main import commodity of Indonesia from Egypt is phosphate mineral fertilizer, dates, figs, pine, avocado, guava, mineral fertilizer, drops resulting from the extraction or purification of sugar, and natural calcium phosphate, “he concluded.
Meanwhile, Ahmed Samir Saleh also welcomed the cooperation. According to him, Indonesia is an important trading partner country for Egypt.
“Indonesia is an important partner country for Egypt. We agree that trade relations must be increased to a higher level,” concluded Ahmed.

May 15, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6722299/mendag-ri–mesir-jalin-kerja-sama-pembentukan-joint-trade-committee)

Indonesia’s trade balance in April 2023 experienced a US $3.94 billion surplus. The surplus was triggered by a decrease in oil and gas imports. The Central Statistics Agency (BPS) reports that this trade balance surplus is a 36-month-up surplus in a row. The surplus was much higher than in March 2023, which reached US $ 2.91 billion.
Deputy for BPS Statistics and Statistical Information Imam Machdi revealed a surplus due to a lower decrease in imports of exports. Non-oil and gas imports have decreased throughout April 2023 by 22.27% on an annual basis. The development of imports in April 2023, the import value of IDR 15.35 billion or down 25.45% when compared to March 2023. If detailed, oil and gas imports are worth US $2.96 billion or down 1.98% compared to March 2023.
“In the last three years, the changes in April imports have always fallen, the decline in non-oil and gas imports by 29.48% in April because there was a war from several commodities,” said Imam.
This surplus position is higher than the market consensus compiled by the CNBC Indonesia Research Team. A total of 12 institutions estimate that the trade balance surplus in April 2023 will reach US $3.34 billion. Consensus also shows that exports will still be contracted by 19.31% (year on year/yoy) while imports have dropped 7%. For the record, the export value of March 2023 plummeted 11.33% (yoy) but increased 9.89% (month to month/mtm). Imports contracted 6.62% (yoy) but jumped 29.33% (mtm).

May 15, 2023, CNBC Indonesia
(https://www.cnbcindonesia.com/news/20230515103347-4-437319/mantap-neraca-perdagangan-ri-surplus-us-394-m-di-april-2023)

Director General of National Export Development (PEN) of the Ministry of Trade, Didi Sumedi, said that the export target of Indonesian spices could reach US $2 billion or IDR 29.60 trillion (exchange rate of IDR 14.800) in 2024. This target is carried out through the Spice Up The World program according to the mandate of President Joko Widodo (Jokowi).
“This is also an important part of the government program, the mandate of the President, Spice Up the World. This is launched in 2024 we can increase the spices and various kinds of spices to US $2 billion. While we export US $1.03 billion,” He said in the release of spice export products and fast food to Saudi Arabia at PT Pangansari Utama Head Office, Jakarta, Friday (12/5/2023).
For information, Indonesia Spice Up The World is one of the government programs that involve across ministries/institutions in an effort to increase the marketing of Indonesian spices or food products and spices. Through this program, the government also wants to build an Indonesian culinary business in foreign countries. The target in 2024 Indonesia will have 4.000 restaurants abroad. At present, there are already around 1.700 restaurants abroad.
Indonesia is now competing with Thailand in business in the culinary sector. Yet according to Didi, Indonesia is seeded with the presence of more significant natural resources. He also encouraged increased trade with Saudi Arabia. It is planned that billionaires from Saudi Arabia will meet Indonesian representatives on 30-31 May.
“We convey to increase the intensity of trade with Saudi Arabia. On May 30-31, we will do business forums by inviting some big brothers from Saudi. What can be done,” he concluded.

May 12, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6717516/pepet-thailand-ri-incar-ekspor-bumbu-masak-tembus-rp-296-t)

Indonesia hosted the 42nd ASEAN Summit this year. Foreign Minister, Retno Marsudi revealed the peak activities of the 42nd ASEAN Summit in Labuan Bajo, West Manggarai, East Nusa Tenggara (NTT), on May 10-11 will be made in the format of plenary and retreat.
The leaders of ASEAN countries will hold eight meetings at the Summit. Seven of the agenda of the meeting was led by President Joko Widodo (Jokowi). One other agenda was led by the Prime Minister of Malaysia.
“Seven of them were led by the President,” Retno said after accompanying President Jokowi to check the final Waringin Puncak readiness as a Spot Spouse Program at the ASEAN Summit, Tuesday (4/25/2023).
Retno explained several meetings of the ASEAN state leadership that would be led by Jokowi at the Summit, namely a meeting with parliament, a meeting with youth. Then, a meeting with businessmen, and a meeting with a high level task force that will prepare the vision of ASEAN 2045. Then, the IMT-GT Summit, namely the Indonesia-Malaysia-Thailand Growth Treangle meeting.
The meeting led by the Prime Minister of Malaysia was Bimp-Eaga Summit, namely the meeting of Brunei Darussalam, Indonesia, Malaysia, and the Philippines in the East Asean Growth area. “Led by the Prime Minister of Malaysia because the leader of the meeting was carried out rotating and this year it was Malaysia’s turn to lead the meeting,” Retno said.
Retno said the ASEAN Summit in Labuan Bajo was not only attended by the leaders of ASEAN countries, but also business people to parliament members. At the peak of the ASEAN Summit there is also a Forestry Spouse Program for the wife of the Head of State who attended the ASEAN Summit. In the spouse program, First Lady Iriana Jokowi will invite the wives of ASEAN heads to visit Puncak Waringin.
“For two days (ASEAN Summit) there will be a ladies program that had been checked by Mr. President and First Lady with several directions for organizing a spouse program,” Retno said.
She added two days before the summit of the Summit there was also a meeting of ministers and other meetings. On May 8 a senior official meeting will be held, and on May 9 there will be a meeting of the Foreign Minister of ASEAN State Meeting.
“The summit was held May 10-11, but the series of events had a senior official meeting meeting, there was a meeting of the Foreign Minister. 10-11 May of the Summit, namely ASEAN leaders,” said Retno.

April 25, 2023, detikBali
(https://www.detik.com/bali/nusra/d-6689441/jokowi-bakal-pimpin-7-pertemuan-di-ktt-asean-pm-malaysia-1-agenda)

PT. TransNusa Aviation Mandiri (TransNusa) officially operates its new fleet comac (Commercial Aircraft Manufacturing) ARJ21-700 which is the first in Indonesia. The new fleet made in China has a PK-TJA registration code and 8B flight code. The operation of the COMAC ARJ21-700 is one of TransNusa’s steps in presenting the rejuvenation of the fleet which also supports the expansion of the low-cost carrier (LCC) flight business brought by the airline.
“Until now, TransNusa has been known to operate using Airbus A320-NEO and A320-CEO. As of April 19, the first COMAC ARJ21-700 aircraft will help strengthen the TransNusa fleet in Indonesia and as a beginning will enliven the Jakarta-Bali sky,” said the President Director TransNusa, Bayu Sutanto in his statement, Friday (4/21/2023).
“We greatly appreciate and thank the government, regulators, airport managers, as well as all parties and institutions that have been involved so that the presence and operation of the first COMAC ARJ21-700 aircraft in Indonesia from TransNusa can be realized and enjoyed by each of our services,” he continued.
COMAC ARJ21-700 TransNusa has a 3-2 single aisle configuration with a capacity of 95 seats. Bayu further explained that the specifications of the COMAC ARJ21-700 aircraft were the best choice of the airline today.COMAC ARJ21-700 presents excellence in its class such as modern devices and the level of reliability with good high-flying skills. This can be seen from the wing curve (sharklets) from the COMAC ARJ21-700 which has a range of up to 27 meters and is supported by two General Electric (GE) CF34-10A machines.
Director and Stakeholder TransNusa Leo Budiman said, the aviation business is a sector that is closely related to the tourism industry. Therefore, it fully supports the program launched by the Indonesian Ministry of Tourism which aims to increase the number of tourists visiting Indonesia, while supporting the economic growth of the tourism sector.
“As part of our support for this initiative, we introduce COMAC ARJ21-700 aircraft with extraordinary technology, which is also suitable for the current market, and geographical conditions in Indonesia,” he said.

April 21, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6684875/TransNusa-resmi-operasikan-pesawat-buatan-china)

Deputy Minister of Tourism and Creative Economy Angela Tanoesoedibjo conveyed that Indonesia’s active participation in ‘Hainan Expo 2023’ is a form of commitment to strengthen relations with China. Especially, in developing tourism through connectivity and the creative economy.
“The relationship between Indonesia and China in trade and tourism over the past few years has shown a big progress. Where in 2021 alone, we exported goods worth US $ 53.78 billion to China,” she said in a written statement on Thursday, (13/4 /2023).
The ‘Hainan Expo 2023’ itself is one of the largest Consumer Goods product trading products in China which was attended by 65 countries. Indonesia itself became one of the main participants in the exhibition, which took place from April 11–15, 2023. Brands such as Kapal Api and Good Day became one of a number of products that were in the 198 m2 booth.
Angela hopes that Indonesia’s participation can open more opportunities for market expansion and further cooperation between the two countries. Because the contribution of Indonesia’s creative economy to national GDP is the third largest in the world, which is almost 8%, with the main driving force of the culinary, fashion, and craft subsectors.
“Realizing this potential, Indonesia focuses on developing tourism products and innovative, high-quality, high-quality and high-quality creative economy products. And in line with our vision to carry out sustainable economic development,” she said.
Angela explained that during the pandemic there was a paradigm shift, where the perpetrators of Ekraf could reach a wider market with technology. To fulfill this request, business actors must continue to innovate to remain competitive and competitive. Therefore, she continued, since 2020 the Indonesian government has empowered the creative economy’s MSMEs to adapt. Through the proud national movement made in Indonesia, which involves various stakeholders in training, assistance, marketing, and digitalization to support MSMEs.
“As a result, the value of Indonesia’s creative economy exports increased from US $ 18.8 billion in 2020 to US $ 25 billion in 2022,” she added.
Angela also added that at this time Indonesia’s creative economy was focused on the game industry and events through the program to accelerate the development of the game industry, as well as ease of regulation in the licensing of the event.

April 13, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6671354/partisipasi-ri-di-hainan-expo-2023-pererat-hubungan-dengan-china)