Tag: international business

Indonesia’s economy grew last year at the fastest pace since 2013, marking the highest economic output since President Joko “Jokowi” Widodo took office. The country’s gross domestic product (GDP) rose by 5.31 percent in 2022, handily beating the preceding year’s 3.71 percent but failing to match the 2013 figure of 5.56 percent, Statistics Indonesia (BPS) reported on Monday. Economic output in the fourth quarter of last year increased by 5.01 percent from the equivalent period of 2021, much lower than the year-on-year (YoY) increase of 5.72 percent seen in the third quarter. The statistics agency attributed the slowdown to weaker purchasing power as a result of increased inflation in last year’s final quarter.

“Indonesia experienced solid economic growth in 2022,” BPS head Margo Yuwono told reporters in a press conference called to publish the latest GDP report.

The World Bank and the International Monetary Fund had expected Indonesia’s 2022 GDP growth to come in at 5.2 and 5.3 percent, respectively, while the Asian Development Bank had a bullish forecast of 5.4 percent. Household spending, long the backbone of the domestic economy, remains the main source of growth, contributing 2.61 percentage points (ppt) to the overall GDP growth rate.

This growth was driven by the improvement of community mobility along with the high rates of COVID-19 infections and removal of PPKM. Gross Domestic Product (GDP) based on valid prices reached Rp 5,114.0 trillion or based on constant 2010 prices reached Rp 2,988.6 trillion. Meanwhile, economic growth in the IV-2022 quarter was recorded at 5.01 percent or grew 0.36 percent.

The Head of the Central Statistics Agency (BPS) said that the Indonesian economy had returned to the Prapandemi level. This was supported by the purchasing power of the people last year which was well maintained and was also supported by the activities and mobility of the people who had recovered.

“The annual economic growth trend still grows 5% despite slowing down from the third quarter of 2022. This shows that the Indonesian economy grew solidly,” he said in a press conference on the BPS release, Monday (2/6/2023).

Indonesia’s economic growth is in accordance with the estimates of President Joko Widodo or Jokowi. The Head of State is optimistic that Indonesia’s economic growth in 2022 will reach 5.3% on an annual basis (year on year/yoy). The projection of Indonesia’s economic growth which reached 5.3% will place the Indonesian economy in the 1st rank among other G20 countries. For the record, the Indonesian economy grew 5.72 (yoy) in the third quarter of 2022 and 5.45% (yoy) in the second quarter of 2022. Meanwhile, the Indonesian market consensus of 12 institutions also estimated economic growth to reach 5.03% (yoy) and grew 0.49% compared to the previous quarter (Quarter to Quarter/QTQ).

February 6, 2023, The Jakarta Post, CNBC Indonesia

(https://www.thejakartapost.com/business/2023/02/06/indonesias-gdp-growth-reaches-decade-high.html)

(https://www.cnbcindonesia.com/news/20230206104809-4-411262/breaking-news-ekonomi-ri-2022-tumbuh-531)

The Chinese contractor will build a 700 meter long bridge in Pontianak. The construction of this bridge was initiated by a local company PT Kapuas Berkah Divine in collaboration with the Shanghai China State Construction Development Development Contractor. Director of Kapuas Berkah Divine Karsono said that this project would be worked on by the government’s cooperation scheme with a business entity alias PPP. The construction is claimed without using the APBN and APBD. He himself prepared an investment fund of up to Rp 1 trillion more to build a bridge that would be named the Garuda Bridge. The bridge connects Jalan Bardan and Siantan.

This bridge was built with a total stretch of 700 meters including the arrangement of the road on the land side, the main span itself along 365 meters. The width of the bridge will be made as long as 30 meters. In addition, this bridge is also claimed to have advantages in the form of hydroelectric power plant features. It will utilize the Kapuas River flow under the bridge to generate the electricity needed for the bridge. According to him, this was the first time done in Indonesia.

“The advantage is to use hydropower technology. Using a tidal water generating technology, this will be the first bridge with independent power in Indonesia, not using PLN electricity but river currents. For example for lights and so forth,” said Karsono.

The plan, this bridge is targeted to be ground breaking in March 2023. His party is still waiting for the Ministry of Public Works and Public Works’ recommendations to carry out development. If all according to plan, if in March the ground breaking can be carried out, it will carry out the construction of a bridge for 14 months.

“If March can already ground breaking, maybe in mid 2024, in June, the construction can be completed,” concluded Karsono.

Pontianak Mayor Edi Rusdi Kamtono explained that this bridge was very much needed to support the accessibility of the Pontianak city center towards the northern region. So far, mobility still relies on a ferry that takes a long time.

February 2, 2023, detikFinance

(https://finance.detik.com/infrastruktur/d-6547423/china-garap-jembatan-di-ri-nilainya-rp-1-t-ini-lokasinya)

The volume of value and exports of Indonesia’s coal to the European Union shot in 2022. The surge in exports was supported by high demand and price after the Russian-Ukraine war erupted. The Central Statistics Agency (BPS) reported that Indonesia’s coal export volume to the European Union touched 5, 85 million tons in January-December 2022. The volume jumped 1,373% compared to 2021 which only recorded 396,582 tons. In terms of value, Indonesia’s coal exports to the European Union broke through US $ 1,055 billion throughout 2022. This value shot 4.114% compared to 2021 which reached US $ 25,044 million.

Italy, Spain, Germany, to Poland are several countries that increase Indonesian coal ordering in very large numbers. Italy imported Indonesia’s coal worth US $ 418.14 million in January-December 2022. This achievement was extraordinary considering Italy was not recorded importing Indonesian coal in 2021. Meanwhile, based on BPS records until October 2022, the largest export volume of exports to the European Union is to Poland. The volume of coal exports to Poland reaches 1.9 million tons. The second order is Italy at 1.13 million tons and the Netherlands with 1.04 million tons.

Other European Union countries that recorded a large volume of exports in January-October were Slovenia (143 thousand tons), Switzerland (111 thousand tons), and Croatia (139 thousand tons). Except Slovenia, almost all European Union countries did not import Indonesia’s coal in 2021. Previously, the Ministry of Energy and Mineral Resources had estimated coal exports to Europe, including the European Union and Britain, would record a record in 2022. Exports to all European regions were estimated to reach 6.6 million tons. The previous biggest achievement was 6.2 million tons in 2012.

January 19, 2023, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20230119051620-17-406618/sejarah-ekspor-batu-bara-ri-ke-uni-eropa-melonjak-1300)

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan said Indonesia no longer imported fossil fuels in 2045. This he explained based on the research he had done. According to him, commodities that will replace or alternative fossil fuels are palm oil. Luhut said that in 2045, Indonesia could produce around 100 million tons of palm oil.

“We are researching about palm oil, because we believe that in 2045 we can produce around 100 million tons of palm oil. 30 percent will be directed to food and the remaining 70 percent, we can do research and we can make ethanol. So we don’t need to import Fossil oil at the time, “Luhut said in” Indonesia Zero Pathway: Opportunity & Challenges “held at the Indonesian Pavilion, the World Economic Forum Annual Meeting 2023, quoted from Antara on Wednesday (1/18/2023).

Luhut explained, the development of alternative fuels was one of the five green economy pillars being intensified by Indonesia. He mentioned the other four pillars, namely the decarbonization of the electricity sector, low carbon transportation, one of which in the form of adoption of electric vehicles, green industries, and carbon sinks which included Carbon Capture and Carbon Offset Market. Luhut said the role of palm oil in the future would be very large. Especially in the acceleration of the achievement of net zero emission 2060 which will be encouraged by the transition of energy from fossil energy to renewable energy.

The Indonesian government is said to be a moratorium on oil palm plantation permits so that the level of productivity can increase from 2.3 tons per hectare to 8 to 10 tons per ha. The increase is the target in the next 10 to 15 years. The moratorium policy itself is also carried out to reduce deforestation due to the expansion of oil palm plantations. As the largest CPO and Biodiesel producer in the world, Indonesia has implemented a mandatory program for the use of CPO -based biodiesel since 2008. The mandatory program is carried out with the aim of reducing the import of fossil fuels, especially diesel fuel, increasing the use of renewable energy and reducing emissions from the use of fossil fuels .

“Indonesia has built collaboration with Malaysia, I think 74 percent will come from these two countries,” concluded Luhut.

January 18, 2023, detikFinance

(https://finance.detik.com/energi/d-6522932/luhut-pede-ri-tidak-impor-bahan-bakar-fosil-2045)

Minister of Finance Sri Mulyani Indrawati stated that Indonesia’s economy is stepping on the gas again in 2022. According to her, economic recovery will occur very quickly in 2022 after two years of the COVID-19 pandemic raging throughout the country. Indonesia’s economic growth is experiencing acceleration momentum around the third quarter of 2022. He is confident that economic growth for the full year 2022 which will be announced later this month will be at the level of 5.2-5.3%. All economic indicators grew very well, starting from investment flows, increased commodity exports, to imports to support manufacturing industry production.
“Economic growth has recovered supported by strong momentum in the third quarter, fourth quarter will still be 5%, so that total economic growth in 2022 as stated by the President will be at 5.2-5.3%,” said Sri Mulyani in a virtual press statement after held a plenary meeting on the 2023 state budget, Monday (16/1/2023).
Several business sectors that had plummeted during the pandemic are now stepping on the gas for growth. For example, the transportation sector, which had contracted by up to 15%, has now returned to grow by 21%. There is also the accommodation and food and beverage sector which had contracted by up to 10%, now it has grown at the level of 11.3%.
Regionally all islands and regions in Indonesia, according to Sri Mulyani, have experienced rapid economic recovery in 2022. Sumatra grew 4.71%, Kalimantan grew 5.67%, Sulawesi grew 8.24%, Maluku grew 7.51%, Java grew 5.76%, and Bali and Nusa Tenggara 6.69%. It is this kind of thing that boosts the Indonesian economy to grow rapidly. In fact, Sri Mulyani said that Indonesia’s economy had grown bigger than before the pandemic.
“This is why Indonesia’s GDP level is 6.6% above pre-pandemic, above our achievements in 2019. This is a very good achievement,” said Sri Mulyani.

January 16, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6518414/ekonomi-ri-ngegas-lagi-setelah-pandemi-sri-mulyani-2022-tumbuh-53.)

President Joko Widodo inaugurated the 30.9 kilometer Pekanbaru-Bangkinang toll road. This toll road is part of the Pekanbaru-Padang Trans Sumatra Toll Road network. Jokowi explained that this toll road would spend a budget of up to IDR 4.8 trillion. Starting today, the toll road can be tested in full, having previously opened it functionally during the Christmas and New Year holiday season.
“From Pekanbaru to Bangkinang, we will also inaugurate 30.9 kilometers which cost a budget of IDR 4.8 trillion today. Then, later it will be connected to the Pekanbaru circle, so that Dumai Pekanbaru Bangkinang will be connected.” Jokowi said during the inauguration at the Bangkinang Toll Gate which was broadcast virtually, Wednesday (4/1/2023).
According to him, this toll road will have quite large traffic. Previous experience is that there is already a Pekanbaru-Dumai toll road with quite high traffic, more than 8,000 vehicles per day. So when will this toll road be connected from Pekanbaru to Padang? Jokowi said it seemed that it would still take a long time. “Continue towards Padang, when will it finish? I can’t talk. Because it’s still long,” said Jokowi.
Jokowi hopes that with the Pekanbaru-Bangkinang toll road, the speed of mobility of people, goods and services will improve, thereby increasing the competitiveness of existing products in Riau province. He also hopes that this toll road will be able to grow new economic centers and ultimately open jobs and provide welfare to the community.

January 4, 2023, detikFinance
(https://finance.detik.com/infrastruktur/d-6498277/jokowi-resmikan-tol-pekanbaru-bangkinang-30-km-habiskan-rp-48-t)