Tag: international business

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Pertamina and Chevron Sign Cooperation of Rp146 Trillion

Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed the investment value of the collaboration between PT Pertamina (Persero) and Chevron Corporation through its subsidiary, Chevron New Ventures Pte. Ltd. The total deal is worth US$ 10 billion or equivalent to Rp146 trillion (exchange rate of Rp14,600/US$). This investment is to encourage the optimization of Indonesia in promoting new and renewable energy.
“Geothermal is one of our mainstays that has been driven so far. Incidentally, Chevron and Pertamina have had good relations for decades. This will optimize the total investment of US$ 10 billion for the next 10 years,” he said at a press conference, quoted by Antara. from the Presidential Secretariat YouTube channel Friday (13/5/2022). Bahlil believes that if the agreement is carried out, then Indonesia’s goal to become the center of the downstream industry for new and renewable energy can be achieved.
For information, PT Pertamina (Persero) with its subsidiary Chevron Corporations, Chevron New Ventures Pte. Ltd. has signed a Memorandum of Understanding (MoU) to explore potential low-carbon business opportunities in Indonesia.

May 13, 2022, DetikFinance
(https://finance.detik.com/energi/d-6077075/bahlil-buka-bukaan-kerja-sama-pertamina–chevron-rp-146-triliun)

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Indonesia Ranks Third in ASEAN on Manufacturing PMI Uptick

The mood of the local manufacturing industry has improved slightly over the past month to rise above most other ASEAN countries, a report released on Thursday shows.
Indonesia’s manufacturing purchasing managers’ index (PMI) booked a monthly increase of 0.6 to 51.9 in April, while Thailand’s rose 0.1 to the same level, according to a report published by HIS Markit, a subsidiary of financial information firm S&P Global.
The two countries rank third among ASEAN states according to the latest manufacturing PMI. The report also shows that Indonesia’s rate of improvement was the fastest since January, which it attributes to increased economic activities as a result of relaxed COVID-19 restrictions. The report is based on a survey of manufacturing purchasing managers who were asked whether business conditions had improved or worsened over the past month on several indicators, including customer orders, supply deliveries, and employment levels.
Singapore and the Philippines top the list, with the former booking an astounding 3.1-point month-to-month (mtm) increase in its manufacturing PMI to 58.1, while the latter increased 1.1 points to 54.1. Meanwhile, Vietnam’s manufacturing PMI remained unchanged at 51.7 while Malaysia saw a 2- point mtm increase to 51.6. The overall manufacturing PMI for ASEAN grew 1.1 points to 52.8 in the seventh consecutive month of improving figures.

May 6, 2022, TheJakartaPost
(https://www.thejakartapost.com/business/2022/05/06/indonesia-ranks-third-in-asean-on-manufacturing-pmi-uptick.html)

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Palm Oil Board Confident Export Ban Could End in May

Indonesia should be able to tackle its cooking oil shortage in the next few weeks and lift an export ban on palm oil and its refined products in May, an industry body said on Thursday, a day after a last-minute policy U-turn sparked more alarm for markets. The world’s top palm oil producer expanded an export ban on raw materials for cooking oil to include shipments of crude palm oil and most of its refined products just hours before it took effect at midnight Wednesday, in an attempt to secure domestic supply and bring down soaring prices.

Sahat Sinaga, the senior official at the Indonesian Palm Oil Board, said that decision had shocked the industry, but that he was confident the supply issue could be resolved not long after the Muslim festival of Idul Fitri in early May. He added that a palm oil export target of 34 million tonnes in 2022 would be met. Asked about the timeline suggested by the palm oil board, Trade Ministry senior official Veri Anggrijono said “we are all hoping this can be solved quickly”.

A trade ministry regulation on Wednesday said the export policy would be reviewed monthly, or as often as needed, while Chief Economics Minister Airlangga Hartarto said it could be lifted when bulk cooking oil recedes to 14,000 rupiahs ($0.97) a liter nationwide. Previous measures to tame prices had failed due to distribution problems, not supply shortages at factories, Sinaga said. “It will be a great success. It won’t take long. After Eid, the market will be flooded,” he said.

Markets had shown relief when Indonesia’s chief economic minister said on Tuesday the ban would only cover refined, bleached, and deodorized (RBD) palm olein, but a day later authorities announced other products would be included. That had an immediate impact on global vegetable oil prices, sending palm oil futures in Malaysia up by 9.8 percent. The jitters spilled over into markets on Thursday as the ban took effect.

Trade Minister Muhammad Lutfi said the decision was taken after careful consideration and monitoring the cooking oil supply daily.  “I hope we all understand the urgency of this policy,” Lutfi said.

April 29, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/04/29/palm-oil-board-confident-export-ban-could-end-in-may.html)

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Best Stock Exchange in the Asia Pacific: IDX Composite

Indonesian financial market trading, including the stock market aka IDX Composite in April 2022 officially ended on Thursday (28/4/2022), wherefrom April 29 to May 6, 2022, JCI trading was closed due to Eid long holiday 1443 H. Throughout April this year, the IDX Composite recorded a fairly good performance, where the index of the country’s stock exchange rose to 2.23% point-to-point. In fact, the IDX Composite’s performance in April was the best in the Asia-Pacific region, where the majority recorded a correction. Only the IDX Composite and the Malaysian stock exchange (KLCI) recorded positive performances in April this year.   

            The IDX Composite’s bright streak in April this year was supported by net purchases by foreign investors, where foreigners continued to hunt for Indonesian stocks throughout this month, even though market sentiment continued to fluctuate. Throughout April this year, foreigners have been chasing Indonesian stocks up to Rp40.87 trillion in all markets, with details of Rp17.73 trillion in the regular market and Rp23.14 trillion in the cash market and negotiations.  

            Indeed, from its movement, the IDX Composite also tends to be volatile due to market sentiment which tends to fluctuate throughout April this year. However, the JCI has never touched the psychological level of 6,900 this month. Even in April this year, the IDX Composite still set a record high (all-time high/ATH), where the highest level of the IDX Composite is currently at 7,276.19, which was created on April 21.

April 29, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20220429153647-17-336097/bursa-saham-terbaik-di-asia-pasifik-ihsg)

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Jokowi’s Target in 2023: Economy Grows 5.9%, Poverty Becomes 7.5%

The government of President Joko Widodo (Jokowi) has compiled a government work plan (RKP) for 2023 which contains economic targets and targets to development plans for next year. The theme of the RKP is “Increasing Productivity for an Inclusive and Sustainable Economic Transformation”.

Minister of National Development Planning/Head of Bappenas Suharso Monoarfa said “The development target in the initial draft RKP 2023 was economic growth of 5.3% to 5.9%,” in the 2022 National Development Planning Consultation (Musrenbangnas), Thursday (28/4/2022).

Indonesia’s poverty rate, which had risen due to the COVID-19 pandemic, is expected to fall again next year. At least it can reach the 7.5% level. Not only poverty, but the government also hopes that the open unemployment rate can drop to the level of 5.3%-6% in 2023. Currently, Indonesia’s open unemployment rate until August 2021 is 6.49%.

Another development target is the Gini ratio, which is expected to drop to 0.375 next year. And the Human Development Index headed to the level of 73.31. The government also plans to reduce greenhouse gas emissions to 27.02%. Meanwhile, the exchange rate for farmers is 103-105 and the exchange rate for fishermen is 106-107.

April 28, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6055167/target-jokowi-di-2023-ekonomi-tumbuh-59-kemiskinan-jadi-75)

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Bali to Host UN Conference on Disaster Risk Reduction

This year Indonesia is lined up to host a number of prestigious international events, one of which is the Global Platform for Disaster Risk Reduction (GPDRR) 2022 which will be held at the Bali Nusa Dua Convention Center (BNDCC), Bali, on 23 – 28 May 2022.

The GPDRR is a multi-stakeholder conference organized by the United Nations (UN) Agency. This conference is a very valuable momentum for the Indonesian government to show its leadership in encouraging global partners to strengthen collaboration to recover together from the crisis, especially in the context of climate change to handling the COVID-19 pandemic. In other words, GPDRR will be a space to review progress, share knowledge, and discuss the latest developments and trends in disaster risk reduction efforts.

The Minister of Tourism and Creative Economy/Head of the Tourism and Creative Economy Agency, Sandiaga Salahuddin Uno, in his statement, said that the recovery of the tourism and creative economy sector after the COVID-19 pandemic is a top priority for the Ministry of Tourism and Creative Economy based on the pillars of innovation, adaptation, and collaboration to deliver policies that are right on target, with the right benefits, and on time. The appointment of Indonesia as the host of the Global Platform for Disaster Risk Reduction shows the world that Indonesia is increasingly resilient and strong in dealing with disasters. Indonesia itself is one of the countries that implement best practices for pandemic control in the world.

In addition, President Joko Widodo advised that this international forum is not only to show Indonesia’s role and practice in reducing disaster risk but also to become a momentum in promoting Indonesia’s tourism and creative economy to the 2022 GPDRR delegates who are projected to be attended by more than 5,000 participants from 193 countries.

April 27, 2022, detikTravel

(https://travel.detik.com/travel-news/d-6053467/bali-jadi-tuan-rumah-konferensi-pbb-soal-pengurangan-risiko-bencana)

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Luhut-Led Delegation Meets Elon Musk to Talk Investing in RI, EVs

Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan led an Indonesian delegation to a meeting with Tesla CEO Elon Musk in the United States to talk about potential investments in Indonesia’s electric vehicle (EV) industry. Leading business figures Anindya Bakrie and Pandu Sjahrir, who were part of the delegation, took to Instagram on Tuesday to post updates about the meeting at Tesla’s new factory in Austin, Texas. 

            “We aim to convince Tesla to explore partnerships with Indonesia in the procurement and development of nickel [as a] raw material for battery cells based on ESG,” Anindya wrote, referring to the environmental, social, and governance (ESG) standards of doing business.

            Musk said in July 2020 that Tesla would grant a “giant contract for a long period of time” to nickel miners that operated “efficiently and in an environmentally sensitive way” as part of the carmaker’s ESG commitment. The meeting aimed to woo Tesla to invest in Indonesia amid the government’s efforts to pursue President Joko Widodo’s goal of developing the downstream mining sector.

            Indonesia made global headlines in 2020 when it banned nickel ore exports in a bid to force miners to develop their downstream nickel businesses, particularly for manufacturing stainless steel and electric vehicle batteries (EVBs). The following year in March, the government launched the Indonesia Battery Corporation (IBC), a state-owned EVB company.

            The delegation also extended a formal invitation to Musk to join the Business 20 (B20) International Advocacy Caucus under Indonesia’s G20 presidency, added Anindnya, who also chairs the advisory board of the Indonesian Chamber of Commerce and Industry (Kadin).

Meanwhile, Pandu said in his Instagram post that the meeting discussed EVs, renewable energy, and the B20 policy, adding that Musk was “very excited” to talk about developing Indonesia’s nickel and EV industries. Pandu, who is Luhut’s nephew, wears several hats, including chairman of the Indonesian Coal Association (APBI) and a board member of on-demand and payment services super-app Gojek.

“Hopefully this meeting will bring in more [high-tech investment] and Indonesia can be an important part of the global electric vehicle industry,” he wrote in his post.

April 26, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/04/26/luhut-led-delegation-meets-musk-to-talk-investing-in-ri-evs.html)

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PT Pindad Ready to Produce Advanced Bombs for French Fighter Jets

State-owned weapons manufacturer PT Pindad will produce sophisticated bombs for the Rafale fighter aircraft. Pindad plans to cooperate with the French company Safran Electronics and Defense. The cooperation was carried out for the production of the MK-82 bomb which supports the Highly Agile Modular Munition Extended Range (HAMMER) Smart Bomb. This sophisticated bomb will later be used in Rafale fighter aircraft. Pindad plays a role in producing the bodies and contents of explosives for bombs.

“PT Pindad has the ability to develop products and also produce the MK-82 used in the Rafale, which is one of the factors that we collaborate with Safran, a manufacturer that has a high reputation in the defense sector with its smart guided bomb,” said the Director of Technology and Development of Pindad, Sigit Santosa in his statement, Thursday (14/4/2022).

Indonesia and France have established strong defense cooperation. On February 10, 2022, Indonesia officially purchased 42 units of French Rafale fighter aircraft. The signing of the acquisition contract for 42 new generation Rafale aircraft was carried out in the presence of the French Minister of the Armed Forces Florence Parly and the Minister of Defense of the Republic of Indonesia Prabowo Subianto.

April 14, 2022, detikFinance

(https://finance.detik.com/industri/d-6033604/top-banget-pindad-siap-produksi-bom-canggih-buat-jet-tempur-prancis)

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Indonesia Stock Exchange: GoTo Becomes the First Decacorn Listed on the Asian Exchange

PT GoTo Gojek Tokopedia Tbk is listed on the Indonesia Stock Exchange (IDX) today. GoTo became the first decacorn to be listed on the Asian exchange. IDX Director of Corporate Valuation, I Gede Nyoman Yetna said GoTo was also the 15th company listed on the IDX this year, and the 781st overall.

“GoTo will become the 15th listed company in 2022 and 781 on the stock exchange at this time. The listing of GoTo shares is highly anticipated, becoming an important milestone for both the company and the capital market industry. Indonesia’s largest digital market and able to raise IDR 13.7 trillion and market capitalization IDR 400 trillion. This makes GoTo a technology company with a decacorn valuation level and is the first decacorn to be successfully listed on Asian exchanges.” said Nyoman at a press conference, Monday (11/4/2022).

IDX hopes that GoTo can maintain transparency and accountability after becoming a public company. “The exchange hopes that GoTo will soon realize its strategy, always innovate and maintain transparency and accountability to the public,” he said.

April 11, 2022, detikFinance

(https://finance.detik.com/bursa-dan-valas/d-6026532/bei-goto-jadi-decacorn-pertama-tercatat-di-bursa-asia)

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The Jakarta-Bandung High-Speed Train has been Produced in China, This is the Sophistication

The entire series of Electric Multiple Units (EMU) or trains for the Jakarta-Bandung High Speed Rail (KCJB) project, totaling 11 units, have been completed in production at CRRC Sifang, Qingdao, Shandong Province, China in early April. Not only EMU, previously one unit of the Comprehensive Inspection Train (CIT) or inspection train has also been completed. The completion of the production process for the CR400AF type EMU series adds to the achievement of the KCJB (Kereta Cepat Jakarta-Bandung) throughout 2022.

The EMU and CIT series are targeted to arrive in Indonesia in the second semester of 2022. EMU is a series of high-speed trains with advanced specifications and is able to monitor hazards such as earthquakes, floods, to foreign object attacks, and is fire resistant.

The security system installed in the KCJB EMU series will be supported by various security instruments such as the Dispatching Monitoring Center, threat detection sensors along the KCJB route, and the Disaster Monitoring Terminal in Tegalluar as the center for disaster data management. In addition, there are also direct observation instruments in the field with CCTV connected to the KCJB command center to send visual information.

            KCJB’s operations are supported by CTSC 3/GSM-R network technology and fiber optics that have been proven globally in terms of rail safety, especially high-speed trains. Then, there are also Internal and External Lighting Protection Systems in KCJB construction.

“The KCJB security system is not only installed in the EMU circuit. Starting from Tegalluar, and along the KCJB route, we have prepared various high-level security systems so that KCJB can run well and optimally,” said the President Director of PT Kereta Cepat Indonesia China (KCIC) Dwiyana Slamet Riyadi.

April 8, 2022, detikFinance

(https://finance.detik.com/infrastruktur/d-6023019/kereta-cepat-jakarta-bandung-selesai-diproduksi-di-china-ini-kecanggihannya)