Tag: international business

Pertamina and Garuda Indonesia successfully conducted the first test flight of a commercial aircraft using environmentally friendly Sustainable Aviation Fuel (SAF). This collaboration is to realize the commitment to contribute to the carbon emission reduction program. The President Director of Garuda Indonesia, Irfaniaputra, said that the trial use of the Bioavtur J2.4 type SAF is part of Garuda Indonesia Group’s ongoing commitment and efforts to support various decarbonization initiatives, one of which is implemented through exploring the use of SAF on Garuda Indonesia’s flight operational lines.
“This is a milestone that we have been waiting for. This is certainly a matter of optimism for our collective steps to realize our big dream of realizing green energy in the national aviation ecosystem to support Indonesia’s commitment to achieving net zero emissions, which is projected to be realized in 2060. ,” said Irfan in a written statement, Tuesday (10/10/2023).
The first test flight was carried out for one hour on Wednesday (04/10) at hangar 4 of the Garuda Maintenance Facility AeroAsia, Soekarno Hatta International Airport area, Tangerang, Banten. The SAF testing was carried out in ground round and flight test stages on a Boeing 737-800 NG commercial aircraft with registration number PK-GFX belonging to Garuda Indonesia airline.
The PT LAPI ITB Research Team stated that the results were positive, namely that the aircraft’s response was good and controlled. With these results, Pertamina and Garuda Indonesia are ready to continue the BUMN synergy to the next stage, namely the plan to use SAF in Garuda Indonesia commercial flights.
“This is the first step which will hopefully become a sustainable mission for the aviation ecosystem to move more adaptively in making a contribution to environmental sustainability, by implementing SAF on Indonesian commercial flights,” said Irfan.
Pertamina President Director Nicke Widyawati said that Pertamina as an energy company continues to strive to develop green fuel, one of which is by producing SAF for the Indonesian aviation industry. SAF is produced at the Green Refinery facility of PT Kilang Pertamina Internasional, namely the Cilacap Refinery using the ester and fatty acid (HEFA) co-processing method. SAF has many advantages, including lower emissions compared to fossil fuel.
“Pertamina’s success in producing SAF is the first in the Southeast Asia region. It is hoped that SAF can soon be marketed by commercial flights as a major milestone in the development of green energy in Indonesia and contributing to the decarbonization program,” he continued.
Pertamina, as a leading company in the energy transition sector, is committed to supporting the 2060 Net Zero Emission target by continuing to encourage programs that have a direct impact on the achievement of Sustainable Development Goals (SDG’s). All of these efforts are in line with the implementation of Environmental, Social & Governance (ESG) in all Pertamina business lines and operations.

October 10, 2023, detikFinance
(https://finance.detik.com/energi/d-6974566/keren-pertamina–garuda-berhasil-uji-terbang-dengan-bioavtur)

The Jakarta-Bandung High-Speed Train was officially opened today by President Joko Widodo (Jokowi). After seven years of construction, finally, the High-Speed Train, a collaboration between Indonesia and China, was officially opened. Jokowi said the Jakarta Bandung high-speed train was the first high-speed train in Southeast Asia. Has a speed of up to 350 kilometers per hour.
“The Jakarta Bandung Fast Train is the first in Indonesia and the first in Southeast Asia, with a speed of 350 km per hour,” said Jokowi when inaugurating the Jakarta-Bandung Fast Train at Halim Station, East Jakarta, Monday (2/10/2023).
Jokowi also revealed that the Jakarta-Bandung high-speed train was called Whoosh because it was inspired by the sound of a fast train traveling at high speed.
“This fast train is called Whoosh, W H O O S H, this is inspired by the sound of a train traveling at high speed. Jokowi said Whoosh is also an abbreviation. The abbreviation is ‘Waktu Hemat Operasi Optimal Sistem Hebat’ / ’Great System Optimal Operation Saving Time’.” said Jokowi.
The Jakarta-Bandung Fast Train itself was built in 2016. It has a track length of up to 142 kilometers connecting Halim Station, Karawang Station, Padalarang Station, and Tegalluar Station. With an average speed of 350 kilometers per hour, the fast train only takes 30-45 minutes to connect Jakarta and Bandung. The construction of the high-speed train costs up to US$ 7.2 billion or around Rp. 18.58 trillion (exchange rate Rp. 15,490). This amount includes cost overruns for high-speed trains after the COVID-19 pandemic. Previously, since mid-September, this fast mode of transportation could be tried out by the public as a free trial.
PT Kereta Cepat Indonesia-China (KCIC) has officially set the ticket price for the Jakarta-Bandung Fast Train or Whoosh at IDR 300 thousand. This rate is still a promotional rate. PT KCIC Corporate Secretary Eva Chairunisa said that the public can now order tickets from October 18 onwards. These rates apply to all routes and are free Feeder Trains to and from Bandung Station.
“This promotion is given to introduce the Whoosh Fast Train service to the public so that people are interested and use Whoosh for their transportation needs,” said Eva, in a written statement, on Saturday (14/10/2023). For the public who are interested in ordering Whoosh Fast Train tickets, ordering can be done in a number of ways, including:

1. Website ticket.kcic.co.id
2. Ticket Vending Machine at the Station
3. Counter

October 2, 2023, detikFinance
(https://finance.detik.com/infrastruktur/d-6960171/7-tahun-dibangun-kereta-cepat-pertama-di-asia-tenggara-akhirnya-diresmikan-jokowi)
(https://finance.detik.com/infrastruktur/d-6960203/jokowi-buka-bukaan-alasan-kereta-cepat-dinamakan-whoosh)
(https://finance.detik.com/infrastruktur/d-6982898/tiket-kereta-cepat-rp-300-ribu-cek-cara-pesan-hingga-jadwalnya)

Indonesia exports refrigerators to Cambodia through PT Panasonic Manufacturing Indonesia (PMI). This is related to the import substitution program and activities to increase exports of domestic products.
“I convey my highest appreciation to all ranks of Panasonic Manufacturing Indonesia for their support for the government’s efforts to encourage export activities of the electronics industry,” said Industry Minister Agus Gumiwang in a statement, Monday (26/9/2022).
According to Agus, this effort is a clear proof that the synergy between the government and industry players is going well. “The receipt of this Panasonic refrigerator product proves that the quality of electronic products made by Indonesian children has been recognized by the international market,” he added.
Refrigerator is one product that has a high export value in Indonesia. In 2021, the refrigerator export value will be US$ 374.4 million or Rp5.65 trillion (exchange rate of Rp15,014) of which 40% comes from the contribution of PT PMI which has exported refrigerators to Asian and Middle East markets.
Cambodia is the 8th country for PT PMI in terms of refrigerator export destinations besides Japan, Hong Kong, Malaysia, Myanmar, UAE, Kuwait and Oman. Apart from refrigerators, PT PMI has also exported other electronic products such as audio products, water pumps and washing machines.

September26, 2022, detikFinance
(https://finance.detik.com/industri/d-6312873/ri-ekspor-kulkas-ke-kamboja-hingga-jepang-rp-5-t)

The cooperation between Indonesia and South Korea resulted in a business agreement worth US$7 million or equivalent to Rp105 billion (exchange rate of Rp15.000). Through this agreement, Indonesia will export several food products to the Ginseng Country. Including sweet potato and cassava chips. The signing of the MoU by the two countries was carried out in Nusa Dua, Badung, Bali, Friday (23/9/2022). Witnessed directly by the Minister of Trade Zulkifli Hasan.
“I welcome the signing of the three MoUs that result in a potential transaction of US$ 7 million. Products that South Korea is interested in are cognac, as well as cassava chips and frozen processed sweet potatoes which are Indonesia’s flagship products,” said Zulkifli Hasan in a written statement, Saturday ( 24/9/2022).
The signing was carried out by three Indonesian business actors and two South Korean business actors. PT Satoria Konjac Industri with With Us Co., LTD signed an MoU for the purchase of cognac products with a potential transaction value of US$ 2 million, PT Indorasa Utama with With Us Co., LTD for cassava chips products with a potential transaction value of US$ 2 million, and PT Seed Origin International and Wellygo Inc for processed sweet potato products (frozen dried sweet potato stick/frozen sweet potato paste) with a potential transaction value of US$ 3 million.
For additional information, the trade value between Indonesia and South Korea for the January-July 2022 period is US$ 14.03 billion. In that period, Indonesia’s exports to South Korea amounted to US$ 7.27 billion and imports US$ 6.77 billion.
Meanwhile, in 2021, the total trade value between the two countries will be US$ 18.41 billion. The value of Indonesia’s exports to South Korea reached US$ 8.9 billion and imports US$ 9.4 billion. South Korea is the 7th home country of foreign direct investment (FDI) for Indonesia. Its investment in 2021 is US$ 1.64 billion with 2,511 projects.

September24, 2022, detikFinance
(https://www.detik.com/bali/bisnis/d-6309728/deal-di-bali-korsel-siap-borong-ubi-keripik-singkong-ri-rp-105-m)

Electric vehicle (EV) company PT Mitra Motor Group (MMG), a subsidiary of coalminer PT Indika Energy, created a joint venture (JV) with EV component producer Foxteq Singapore on Sept. 22. According to an information disclosure released on Friday, the JV will be called PT Foxconn Indika Motor (FIM), which is licensed to build EVs with four wheels or more, produce batteries and provide management consulting services.
“MMG’s participation in FIM is the company’s step toward expanding its business activities into the electric vehicle sector, especially four-wheeled electric vehicles, in Indonesia,” Indika Energy corporate secretary Adi Pramono said in the disclosure.
Focusing on manufacturing commercial electric cars and batteries, the JV was followed by an investment of Rp39 billion (US$2.5 million) from MMG, equivalent to 60 percent of the paid-up capital. An affiliation of Hon Hai Technology Group, known as Foxconn, Foxteq Singapore paid in capital of Rp 29 billion, the equivalent of 40 percent of the paid-up capital.
Indika Energy director and group chief investment officer Purbaja Pantja said that the company saw huge potential in EV development in Indonesia. “This collaboration will create a comprehensive electric vehicle ecosystem that aims to support Indonesia in becoming one of the leading electric vehicle and battery ecosystem developers,” Purbaja said.
Foxconn battery strategy head Troy Wu said that this JV showed the firm’s commitment to developing a sustained EV ecosystem in the country. “Indonesia is the largest economy in Southeast Asia and holds the current G20 presidency and the next ASEAN chairmanship, and has committed to an ambitious net-zero emission target,” Wu added.
Previously, another Indika Energy EV manufacturing arm PT Ilectra Motor Group (IMG) launched the indigenous fully electric Alva One Motorcycle, which will be manufactured in a factory in Cikarang, West Java. In order to develop the two-wheeler brand and its supporting ecosystem, IMG raised a total of US$7.5 million in May from Alpha JWC Ventures, Horizon Ventures, equal to 21.4 percent of the company’s shares, while Indika Energy added another $7.5 million.

September23, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/23/indika-foxconn-sign-jv-agreement-on-ev-factory.html?)

Diversified conglomerate Astra International has completed a transaction to acquire a stake in private lender Bank Jasa Jakarta (BJJ) for Rp 3.88 trillion (US$259 million) with a view to forming its own digital bank. The transaction was done through Astra subsidiary PT Sedaya Multi Investama, also known as Astra Financial, alongside WeLab Sky, a consortium led by Hong Kong-based fintech platform WeLab, with each entity to own 49.56 percent of BJJ.
“BJJ as a digital bank will complement many financial products and services that we could offer to our customers,” Astra financial director in charge Suparno Djasmin said in a statement on Monday.
Astra’s acquisition comes after a wave of new digital banks in the country, like GoTo-backed Bank Jago, CT Corp-backed Allo Bank and Sea Group-backed Sea Bank. Digital banks have gained traction in Indonesia, where their investors look to capitalize on the country’s large market with consumers who are accepting of the fintech industry.
Simon Loong, founder and group CEO of WeLab, said the acquisition would allow the fintech firm to expand its digital bank services beyond Hong Kong. In 2018, WeLab partnered with Astra to form a fintech lending company, PT Astra WeLab Digital Arta.
“Our partnership with Astra will support our strategic focus to increase our cooperation and business with partners in expanding the scale and reach to strengthen our network in pan-Asia fintech platforms,” Simon said in the same statement.

September20, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/20/astra-invests-259m-in-bjj-to-form-digital-bank.html?)

South Korea’s Jeju Air has inked a deal with the North Sulawesi administration to offer direct flights between Manado and South Korea. Jeju Air CEO Kim E-bae and North Sulawesi Governor Olly Dondokambey signed the agreement at the Indonesian ambassador’s residence in Seoul on Friday.
“I’m very grateful because we are sure that our company can help with Korean and Indonesian economic development. We will try our best to open direct flights to Manado, Bali, Lombok, Jakarta and Yogyakarta,” Kim said, noting that such flights were in the pipeline.
Olly said North Sulawesi was well situated for the deal, being only five hours by plane from South Korea, and he expressed hope that the flight route could boost tourism for both North Sulawesi and South Korea.
“What makes North Sulawesi ideal is how relatively close it is to South Korea. North Sulawesi’s location and geostrategy offer benefits for water transportation to and from Bitung Harbor, which is not far from Sam Ratulangi Airport. Manado people love to travel. So, this deal is beneficial to both parties. I hope Mr. Kim and the Busan Authority can come to North Sulawesi in the near future to see other potential projects we can work on together because Manado and South Korea have a lot of similarities. For example, you have a lot of ginseng plants, and liquors too,” said Olly.
Tourism and Creative Economy Minister Sandiaga Uno said the new route could increase international tourists’ awareness of attractions near Manado, particularly Likupang, a government “super priority” tourist destination. “The Tourism and Creative Economy Ministry fully supports the signing of this deal, as it can have a multiplier effect in the future for tourism and the creative economy in North Sulawesi. This route can serve as an opportunity for local creative industry players to showcase quality products and services to South Korean tourists,” Sandiaga said.

September20, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/20/jeju-air-to-open-direct-manado-south-korea-flight-in-tourism-bid.html?)