Tag: international business

The Indonesian government held an Expo Indonesia En Mexico (EIM) exhibition which was held on August 3-6, 2023, at the World Trade Center, Mexico City, Mexico. In the exhibition, Indonesian products succeeded in capturing the hearts of investors in the country with a record of transactions reaching IDR 287 billion. The EIM exhibition is an Indonesian sole exhibition in Mexico which raised the trade, tourism, investment, and culture sectors. The EIM exhibition succeeded in attracting 5,238 visitors. At this event 83 trade matching (business matching) was carried out between exhibitors and buyers/potential investors.
Minister of Trade Zulkifli Hasan said that the exhibition could increase the effect not only in terms of exports, but also opportunities for cooperation between Indonesia and Mexico,
“The integrated exhibition of the trade, tourism, and investment sectors has a multiflier effect, not only on the increase in exports of non -oil and gas products but also provides opportunities for Indonesian investment cooperation and strengthening of the Branding (Branding) of Indonesia in Mexican countries that do not yet have bilateral trade cooperation with Indonesia, “said the man who is familiarly called Zulhas, quoted on Tuesday (8/15/2023).
The Director General of National Export Development Didi Sumedi said that during EIM 2023, four -wheeled vehicles with trademarks Suzuki Ertiga and Mitsubishi Expander attracted many visitors. In addition, many visitors come to directly see the design, features, and interior of the car.
This is in line with the performance of Indonesian non-oil and gas exports with automotive products including spare parts (spare parts) which are one of the 10 main products of Indonesian non -oil and gas exports to Mexico. Other products that are excellent include paper products, yarn, batik, eyelashes, coffee, and food and drinks.
“EIM transaction achievements prove that Indonesian products have strong competitiveness, so that they can be well received by the Mexican market and make this country an expansion of non -traditional markets. This activity is the first step to increase the contribution of Indonesia’s greater exports, especially added value products such as manufacturing industry products, “said Didi
Indonesian automotive products have good competitiveness considering the national automotive industry has implemented 4.0 technology in the production process that makes every production activity more efficient and competitive. The national automotive industry developed is an electric vehicle industry supported by the electric battery industry. The main market share of Indonesian motor vehicle products besides America, Latin is the Middle East, African, South Asia, Oceania, and Australia.
Director of Primary Product Export Development, Merry Maryati expressed his appreciation for good collaboration between all parties. The exhibition was fully supported by the Ministry of Trade and was attended by 51 participants, the Ministry of Tourism and Creative Economy; Ministry of Investment; Central Java Provincial Government, East Nusa Tenggara, West Papua and DKI Jakarta; Small and Medium Enterprises, as well as private companies.

August 15, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6876997/produk-ri-laris-manis-di-pameran-meksiko-bukukan-transaksi-rp-287-miliar)

Indonesia is pushing to join the Organisation for Economic Co-operation and Development (OECD) after President Joko Widodo welcomed an OECD delegation to the Presidential Palace on Thursday. The President emphasized his desire for a seamless and swift path to Indonesian OECD membership. Finance Minister Sri Mulyani Indrawati stated in a press conference on Thursday that Indonesia had officially expressed its interest in becoming a member of the Paris-based forum. She said OECD secretary-general Mathias Cormann had outlined the necessary procedures for membership during the meeting with the President.
“The benefits of membership are significant, as [OECD membership] brings the potential to improve policy and bureaucracy in Indonesia,” Sri Mulyani emphasized.
At the press conference, Foreign Minister Retno L.P. Marsudi told the media that Indonesia’s bid for OECD membership had garnered strong support from existing member countries and would be discussed at a forthcoming OECD council meeting in September.
“If we secure the necessary political agreement [from current member countries], the technical process will be set in motion,” Retno explained.
Highlighting the longstanding nature of Indonesia’s collaboration with the OECD, Retno pointed out that the country had been a key partner of the OECD since 2007. Notably, in 2015, the organization took a significant step by establishing its first Southeast Asian office in Jakarta.
Indonesia and the OECD have executed several cooperative programs, Sri Mulyani added, including economic surveys and policy assessments tailored to the country, all while adhering to OECD benchmarks akin to those used by existing member countries. These policy assessments covered various sectors, including state-owned enterprises (SOEs), taxation, capital movement, public procurement, anticorruption measures and environmental policies. These efforts, according to the finance minister, were found to be in alignment with OECD membership criteria.
“We aren’t starting from scratch,” she asserted. “There have been many [policy] reforms [in Indonesia] that are in line with the OECD’s policy framework.”
The OECD expressed its recognition of the President’s leadership in chairing the Group of Twenty (G20) forum and in implementing reforms for investment and economic development. These measures were deemed highly relevant for the needs of the people, according to secretary-general Cormann, and contributed to the nation’s economic strength.
Institute for Development of Economics and Finance (INDEF) executive director Tauhid Ahmad underscored that Indonesia’s membership in the OECD would give the country high-income status but would not yield any immediate benefits.
The OECD is an intergovernmental organization with 38 member countries founded in 1961 to address various global challenges by facilitating discussions, providing policy recommendations and fostering collaboration among governments and stakeholders. If Indonesia enters the organization, it will become the third Asian nation to do so after South Korea and Japan, and the first in Southeast Asia.

August 11, 2023, The Jakarta Post
(https://www.thejakartapost.com/business/2023/08/11/ri-first-asean-country-to-file-for-oecd-membership.html)

PT Pertamina (Persero) again strengthened itself as the only Indonesian company as well as the only SOE that was included in the list of Fortune Global 500 in 2023. This year Pertamina is ranked 141 rising 82 ranking in 2022 which is in the 223th position. Pertamina It even succeeded in jumping 146 ranking compared to 2021 which came in 287. This ranking increase was in line with Pertamina’s success in posing the highest net profit throughout the company. Pertamina posted a net profit of US $ 3.81 billion or IDR 56.6 trillion, up 86% compared to 2021 of US $ 2.05 billion or IDR 29.3 trillion. Pertamina’s revenue also skyrocketed reaching US $ 84.89 billion or around IDR 1,262 trillion up to 48% compared to the previous year of US $ 57.5 billion.
Pertamina President Director Nicke Widyawati said that what the company achieved was the fruit of the sturdy foundation of the company after the restructuring of the formation of holding subholding. So that all business lines contribute to the Company. Pertamina also increasingly established itself as a world-class energy company.
“Pertamina continues to strengthen its determination to pursue the aspirations of shareholders to become world-class energy companies. This achievement is in line with the target of the company after transformation of business and organizations,” Nicke said in a written statement, Wednesday (9/8/2023).
Nicke added that the company’s positive performance could not be separated from the support of all stakeholders including the government that supported Pertamina to become a world-class company.
“Thank you also to all Pertamina officers who work hard in increasing the competitiveness of the company to be able to take part in better on the international arena,” Nicke added.
Not only firmly perched in the global ranking in the Fortune 500, Pertamina also won the number 2 position globally in the Integrated Oil & Gas Sub-Industry by Sustainalytics with ESG scores of 22.1 in October 2022, which increased from the previous score of 28,1.
Pertamina as a leader company in the field of energy transition, is committed to supporting the Net Zero Emission 2060 target by continuing to encourage programs that have a direct impact on the achievements of Sustainable Development Goals (SDG’s). All of these efforts are in line with the application of Environmental, Social & Governance (ESG) throughout Pertamina’s business line and operations.

August 9, 2023, detikFinance
(https://finance.detik.com/energi/d-6867929/top-pertamina-wakili-indonesia-di-daftar-fortune-global-500)

Minister of Agriculture Syahrul Yasin Limpo released 96 tons of shallots to Thailand with a transaction value of approximately IDR 3.4 billion. The overall export contract value reached 75 containers or equivalent to IDR 73.5 billion. Syahrul said he was grateful because Indonesia could meet domestic needs and exports of shallots when all countries face extreme weather. So far, shallots are called Indonesian mainstay commodities.
“I always say that shallots are our strengths as Indonesian nations, but we must also remember that we are currently facing El Nino who can interfere with the production of production,” Syahrul said at one of the Brebes Brebes Private Exporting Companies on Wednesday (9 /8/2023).
To anticipate these challenges, Syahrul invited all regional leaders both regents and governors to immediately intervene to help farmers who produce. He wants, agriculture continue to advance and become the main line in strengthening the nation’s economy.
“The threat of El Nino is everywhere but we have to intervene to plant various agricultural commodities. We know that the threat of this heat will make the water lack and disrupt productivity. But the initiative of the regents who struggle to accompany farmers can make us able to pass all the challenges that exist, “he said.
Acting Regent of Brebes, Urip Sihabudin expressed his gratitude for the attention of the Ministry of Agriculture who routinely continued to assist Brebes in increasing production through superior seeds, mechanization technology and access to the capital credit credit (KUR) of Agriculture.
“In fact, we were also helped to carry out the shallots festival as the first festival in Indonesia. With this festival the Brebes people began to realize that shallots could be realized through a high -scale form of high economic scale activities,” he said.
Urip added that the production of shallots in 2022 reached 385 thousand tons. While production in July 2023 reached 195 thousand tons. It is estimated, production at the end of this year can reach 388 thousand tons or increase when compared to 2022.
“And of course, it is all part of the joint endeavor, as well as guidance from the Minister and the whole ranks. We are very grateful for what the Ministry of Agriculture is doing to Brebes shallots farmers,” he said.

August 9, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6868044/bawang-merah-ri-tembus-pasar-thailand-total-transaksi-rp-73-miliar)

Head of Batam Administration (BP) Muhammad Rudi received a visit to the Consulate General of the Indonesian Consulate General in Johor Sigit Sigit S. Widiyanto who was present to Batam with the Kuala Lumpur Healthcare KPJ delegation. This meeting is a continuation of the discussion on the potential of cooperation in the development of an international health economic area in Sekupang. After being able to explore the potential of cooperation with international hospitals several times such as Dubai and India and experienced a number of obstacles. Now, BP Batam feels optimistic that the possibility of cooperation with KJP Johor Bahru can be seriously followed up.
“Requirements from the government, so that we can develop health is to work together with at least one international hospital brand that occupies the top 10 of the world ranking and hospitals that are the main destination for Indonesian people to seek treatment.” said Rudi in a written statement, Monday (7/31/2023).
According to Rusdi, this visit from Malaysia practically brought good news to his party who was developing international health.
“Of course, from BP Batam is very happy, because we are looking for international partners. And the advantages that we have, KEK can present medical personnel from abroad. So that people do not need to seek treatment abroad. The foreign exchange that has been out, is for our own region.” Said Rudi.
Furthermore, Rudi explained that Batam is a strategic area in Indonesia. Batam’s large potential, has been developed through infrastructure development in all lines ranging from roads, airports to ports.
“We are trying to change the face of Batam City. The next 5 to 10 years, Batam will be a very beautiful city, and more interesting for investment,” he said.
This also received a warm welcome from the Consulate General of Consulate General in Johor Bahru Sigit Sigit S. Widianto and OIC KPJ Healthcare Berhad, PN Norhaizam Mohammad.
“For BP Batam and KJP, both of them see a cooperation opportunity to improve health facilities for the people of Indonesia in Batam. Because we need to revitalize new ideas to increase connectivity so as to create mutual benefits of the two regions,” said Sigit.
He acknowledged Batam had developed rapidly. According to him, the strategic location and facilities offered in this KEK are interesting. Likewise, with KPJ Johor who already has international capabilities. Data shows that one million Indonesians regularly every year seeking treatment at KJP Johor. For Indonesia, Malaysia is still the largest country of health tourism visits compared to other countries. The woman who is also the President of Malaysian Society for Quality in Health, is impressed with Batam.
KPJ Healthcare Berhad is the largest private hospital in Malaysia experienced 42 years until now has opened 29 hospital health facilities in Malaysia, Thailand, Bangladesh, and Australia, including in Jakarta Indonesia.

July 31, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6851587/ri-malaysia-jajaki-kerja-sama-pengembangan-kek-kesehatan-batam)

Indonesia won the overall champion at The 13th WorldSkills ASEAN in 2023. This achievement was obtained after the Indonesian delegation won 27 medals consisting of 14 gold medals, 8 silver, 3 bronze, and 2 medallions.
“Thank God, the team from Indonesia succeeded in becoming the overall champion of The 13th WorldSkills ASEAN in Singapore,” Deputy Minister of Manpower (Wamenaker) Afriansyah Noor in Singapore, Thursday (7/27/2023) after attending the closing ceremony of the 13th Worldskills Singapore 2023, in written statement Friday (7/28/2023).
Wamenaker expressed his pride for the Indonesian delegation because his achievements had brought the fragrant name of the nation.
“I am very proud of the success achieved by the Indonesian team. This is a prize for President Joko Widodo, Mrs. Minister of Manpower, the Ministry of Manpower, and of course the Indonesian people,” he said.
He hoped that the success achieved in 2023 could be continued at the same event in 2025 which will be held in the Philippines.
“Hopefully in 2025 in the Philippines, we can also win the overall champion again with extraordinary skills and abilities from our children,” he said.

July 28, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6846638/bangga-ri-juara-umum-the-13th-worldskills-asean-2023)

Minister of Investment/Head of Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed souvenirs from President Joko Widodo to Chengdu, China. One of them is the investment commitment of leading companies in the glass and solar panel industry, Xinyi Group. Bahlil said Xinyi Group was committed to building factories in the Industrial Estate of Rempang, Batam. This factory is predicted to be the largest after China.
“In the future, this company has committed to building its industry in the Batam area, Rempang. This is the number 2 largest factory in the world after China and the number 1 largest factory outside of China,” Bahlil said through the Youtube of the Presidential Secretariat, Friday (28/7 /2023).
The investment commitment was outlined in the signing of the cooperation agreement and a memorandum of understanding (MoU) between Indonesia and Xinyi Group which was also witnessed by Jokowi. This is part of downstreaming the government built from the quartz sand sector and several other raw materials in Indonesia.
“If we have succeeded in building the downstreaming ecosystem of nickel, now we begin to push quartz sand. The output, the product will be carried out almost 95% for exports because the market is foreign markets. This glass factory will also immediately build what is called solar panels , this is also the capacity of export products, “he said.
Bahlil said the total investment of the Xinyi Group was US $ 11.5 billion or IDR 172.5 trillion (exchange rate of IDR 15,000). This is the second development after previously the company invested in the Java Integrated Industrial and Port Estate (JIIPE) area in Gresik US $ 700 million.
“This happened due to the full trust of the investor to the Indonesian government under the government of Mr. Jokowi. US $ 700 million after they checked it turned out that what they felt was very good, and they wanted to develop their business,” Bahlil said.
Investment from the Xinyi Group is estimated to create 35,000 jobs. “And this will collaborate with national entrepreneurs,” he added.

July 28, 2023, detikFinance
(https://finance.detik.com/industri/d-6846762/perusahaan-kaca-terbesar-dunia-mau-bangun-pabrik-di-batam-rp-172-t)

Indonesian President Joko Widodo (Jokowi) Chinese President Xi Jinping held a bilateral meeting in Chengdu, China. The meeting was a series of President Jokowi’s trips to China which will take place on July 27-28, 2023. Foreign Minister Retno Marsudi revealed, President Jokowi’s journey to China was at the invitation of President Xi Jinping and the visit coincided with the 10 years of Indonesia-China Comprehensive Strategic Partnership Partnership. One of the points discussed by the two heads of state is a matter of trade.
Retno said efforts to increase Indonesia’s exports to China continue to be improved. Where China is Indonesia’s largest trading partner. In 2022 the value of Indonesia-China trade reached more than US $ 133 billion, with Indonesia’s position now a surplus. During the meeting, he said, President Jokowi requested more market access in bamboo curtain countries for Indonesian products.
“The president welcomes the signing of the import protocol. Imports in this case are China from Indonesia for porang flour, Tabasheer powder. Also encourages protocol updates and an increase in the import quota of swallow nests, as well as completing the import protocol of Indonesian marine products,” Retno said on Thursday (7/27/2023).
Swallow’s nest itself is one of Indonesia’s leading export commodities in the livestock sector, according to the book “Analysis of Export Commodities 2018-2022) released by the Central Statistics Agency (BPS). In the 2018-2022 period, this commodity has an average role of 86 , 36% of the total exports of the livestock sector. In 2022, the role of this commodity even reached 89.37%, the highest over the past five years. China became the main destination country of Indonesian swallow’s nest exports. In 2022, exports to China reached US $ 387,4 million or equivalent to IDR 5.8 trillion. The amount is equal to 65.56% of the total exports of swallow birds.
In addition to swallow’s nests, there are several Indonesian agricultural, fisheries and forestry products that are in great demand by China. For example, medicinal plants, aromatic and spices, Indonesian exports to China worth US $ 122 million or IDR 1.8 trillion in 2022. Then, China is also the main destination for Indonesian annual fruit exports. In 2022, the value of Indonesian annual fruit exports to China reached US $ 124.3 million or IDR 1.86 trillion.
From the fisheries sector, China is the largest shareholder of Indonesia’s seaweed and other algae exports, which is 84.57% in 2022 or US $ 336.8 million, equivalent to IDR 5.05 trillion. From the fisheries sector, exports of fresh/cold fish caught from Indonesia in 2022 to China reached US $ 3.8 million or IDR 57 billion. Then, the export of rubber latex and the like in 2022 addressed to China with a value of US $ 24.2 million or IDR 363 billion.

July 29, 2023, CNBC Indonesia
(https://www.cnbcindonesia.com/research/20230729154145-128-458377/top-ekspor-pertanian-ri-ke-china-triliunan-ada-sarang-walet)

State-owned oil and gas giant Pertamina and Malaysia’s Petronas have officially acquired Shell’s 35 percent participating interest in the Masela oil and gas block in Maluku, which also includes the Abadi gas project, for US$650 million. The parties signed a sales and purchase agreement on the transaction on Tuesday.
According to a press release published by Shell on the same day, the base consideration for the block’s sale is $325 million in cash along with an additional contingent amount of $325 million to be paid upon the final investment decision (FID) on the Abadi gas project. The transaction took effect on Jan. 1 this year, as per Shell’s statement, and is expected to be completed by October 2023. The conclusion of the deal is subject to certain conditions, including regulatory approval from the Energy and Mineral Resources Ministry.
Pertamina is collaborating in the deal with its Malaysian counterpart Petronas according to a press release published on Tuesday by Pertamina. Pertamina Hulu Energi (PHE), Pertamina’s upstream unit is to manage 20 percent of the block, while Petronas Masela will hold 15 percent, the release adds. The other 65 percent of the block remains under the control of Japanese oil and gas firm Inpex. PHE president director Wiko Migantoro said Pertamina aimed to swiftly capitalize on the energy resources in Masela, as reported by Kontan.
“Our focus is on conducting front-end engineering design immediately, completing the final investment decision and then carrying out construction and going onstream as soon as possible,” Wiko said on Tuesday, as quoted by Kontan.
Pertamina CEO Nicke Widyawati said the acquisition was a strategic move to develop new fields, meet national energy needs, maintain oil and gas supply and directly impact economic development in the eastern part of Indonesia. With the potential to employ up to 10,000 workers, she added, Pertamina hoped that the development of the Masela Block could accelerate regional development by creating new jobs for locals.
The agreement was signed at the Indonesia Petroleum Association (IPA) Convention on Tuesday in a ceremony witnessed by Energy and Mineral Resources Minister Arifin Tasrif, MIGAS director general Tutuka Ariadji, Upstream Oil and Gas Special Regulatory Task Force (SKK Migas) head Dwi Soetjipto, and Pertamina’s Nicke and Petronas president and CEO Tan Sri Tengku Muhammad Taufik. Alongside the sales and purchase agreement, Pertamina signed a memorandum of understanding (MoU) with Japan’s Inpex.
According to Inpex’s press release, the MoU outlines a strategic collaboration to implement the Abadi LNG project through a new partnership involving the transfer of joint venture partner Shell’s participating interest in the Abadi project to PHE and Petronas.
Based on the MoU, the firms will explore opportunities for collaboration in areas such as the offtake and transportation of LNG and other products, the production of hydrogen and ammonia and meeting the needs of local stakeholders.

July 25, 2023, The Jakarta Post
(https://www.thejakartapost.com/business/2023/07/25/pertamina-petronas-secure-shells-masela-stake-for-650m.html)