Tag: invest in Indonesia

Minister of Agriculture Amran Sulaiman received a visit from Madam Thai Huong, Chairman of TH Group. The arrival of the Vietnamese company’s top brass was in order to explore investment opportunities in the Indonesian dairy farming sector.

The meeting, which took place on Thursday (13/2/2025) afternoon in Jakarta, was the first step for strategic cooperation between TH Group Vietnam and Indonesia in the future.

Amran said that Indonesia has a fairly large need for milk and beef. Currently, domestic fresh milk production is only able to meet around 20% of national needs, with a deficit of 4.9 million tons.

This figure has increased with the free nutritious food program from the new government, which increases the need by 3.6 million tons of fresh milk.

“Indonesia must be able to increase its milk and beef production capacity, which is around 4.9 million tons for fresh milk and 0.83 million tons for beef. With the additional needs of the free nutritious meal program, the production shortfall becomes 8.5 million tons for fresh milk and 0.88 million tons for beef,” said Amran in a written statement, Friday (2/14/2025).

In response to this condition, the government is open if there are foreign investors entering to work on the Indonesian dairy industry. According to Amran, the government is ready to provide various policy incentives, ranging from exemption from import duties for livestock and dairy industry equipment, to funding schemes with competitive interest rates and livestock business insurance.

As a form of facilitation, the Ministry of Agriculture has prepared three strategic locations that can be used for large-scale dairy farming investments, namely Wajo-Sidrap, South Sulawesi; North Barito-South Barito, Central Kalimantan, and Poso (Napu Valley), Central Sulawesi.

In addition to providing land, the government also ensures supporting infrastructure such as road access, electricity, clean water, and health and education services for workers in livestock areas.

“The success of dairy industry investment does not only depend on land, but also on adequate infrastructure. Therefore, the government is committed to building better road access, ensuring a stable electricity supply, and providing health and education facilities for workers in this sector,” Amran explained.

The government is currently continuing to encourage foreign investment in cattle farming. This effort is carried out as one of the strategic steps in realizing food self-sufficiency. This year, the Ministry of Agriculture is targeting to bring in 200 thousand dairy cows and 200 thousand beef cattle. With this meeting, it is hoped that investment cooperation between Indonesia and TH Group Vietnam can be realized soon, so as to increase domestic milk production and strengthen national food security.

February 14, 2025, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7779255/vietnam-bidik-bisnis-peternakan-sapi-susu-ri-pemerintah-janjikan-insentif)

The Indonesian President Prabowo Subianto revealed the results of his meeting with Turkish President Reccep Tayyib Erdogan at the Bogor Presidential Palace, West Java, Wednesday (12/2/2025). There were several discussions ranging from economic partnerships to international relations.

“The meeting was very intensive and productive. We have the same commitment to strengthen the partnership,” said Prabowo, while giving a press statement with Erdogan.

Prabowo explained that the partnership between the two countries was carried out for the prosperity of the people in the two countries. In addition, working together for a better new world order leading to world peace and stability. Such as in the fields of economics and trade, Prabowo said the two countries are committed to increasing mutually beneficial trade. Also accelerating the finalization of the Comprehensive Economic Partnership Agreement (CEPA).

“We agreed to expand market access for products from both countries,” said Prabowo.

In addition, RI-Turkey will also strengthen cooperation in the fields of defense and security. Such as education and training for armed forces personnel, intelligence, and counterterrorism.

“We agreed to also increase joint production and cooperation in the defense industry, in the health sector we also want to increase cooperation,” said Prabowo.

Regarding international relations, Prabowo said the two heads of state agreed that a solution for peace and independence for Palestine could be achieved with a two-state solution. In addition, they also support peace in Syria and Ukraine. According to Prabowo, Indonesia already has a special spiritual and emotional relationship with Turkey. The relationship has lasted for hundreds of years since Turkey was called the Ottoman Empire. The following 13 agreements were signed:

1. Memorandum of Understanding Between the Ministry of Religion and the Head of the Religious Affairs Division of the Republic of Turkey Regarding Cooperation in the Field of Religious Services and Religious Education.
2. Memorandum of Cooperation Between the Ministry of Energy and Mineral Resources and the Ministry of Energy and Mineral Resources of Turkey in the field of Energy and Mineral Resources.
3. Memorandum of Understanding on Cooperation in the Field of Higher Education Between the Ministry of Higher Education, Science, and Technology of the Republic of Indonesia and the Council of Higher Education of the Republic of Turkey.
4. Agreement between the Government of the Republic of Indonesia and the Government of the Republic of Turkey on Cooperation in the Field of Health and Medical Sciences.
5. Memorandum of Understanding on Strategic Cooperation in the Field of Defense Industry Between the Ministry of Defense of the Republic of Indonesia and the Secretariat of Defense Industries of the Presidency of the Republic of Turkey.
6. Memorandum of Understanding between the Ministry of Trade of the Republic of Indonesia and the Ministry of Trade of the Republic of Turkey on Increasing Cooperation in the Field of Trade.
7. Memorandum of Understanding between the Government of the Republic of Indonesia and the Government of the Republic of Turkey on Cooperation in the Field of Agriculture.
8. Statement of Intent Between the Government of the Republic of Indonesia and the Government of the Republic of Turkey on Investment Promotion and Facilitation.
9. Memorandum of Understanding Between the Ministry of Industry of the Republic of Indonesia and the Ministry of Industry and Technology of the Republic of Turkey on the Establishment of a Joint Committee for Industrial Cooperation.
10. Joint Venture Agreement Between Republikorp and Baykar for the Manufacture of Drone Factories in Indonesia.
11. Cooperation Protocol Between Turkish Radio Television Corporation (TRT) and Public Broadcasting Institution of Indonesian Television (LPP TVRI) in the Field of Television.
12. Memorandum of Understanding Between Turkish Radio Television Corporation (TRT) and Public Broadcasting Institution of Indonesian Radio (LPP RRI) in the Field of Radio.
13. Cooperation Agreement Between Anadolu Agency (AA) and Antara Indonesia News Agency.

February 12, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250212154109-4-610108/prabowo-erdogan-saksikan-13-mou-ada-pembangunan-pabrik-drone-di-ri)

The Indonesian government is trying to strengthen the digital economy sector with strategic cooperation. One of them is the signing of a Memorandum of Understanding (MoU) between the Coordinating Ministry for Economic Affairs of the Republic of Indonesia and the Royal Melbourne Institute of Technology (RMIT). This memorandum of understanding aims to develop knowledge related to cybersecurity in Indonesia.

Deputy for Coordination of Economic Cooperation and Investment of the Coordinating Ministry for Economic Affairs Edi Prio Pambudi explained that this initiative can create a safe and sustainable digital economy.

“Our best priority is to create a safe and secure digital economy. This MoU is also a significant step to meet the needs of the industry in creating a competitive and quality workforce in Indonesia,” said Edi in a press conference at the Coordinating Ministry for Economic Affairs Office, Wednesday (12/2/2025).

Edi emphasized that currently the main focus is on cybersecurity, in the future this cooperation will be expanded to the development of the semiconductor sector. This is done to anticipate increasingly tight global competition in the technology sector, especially in the Asian region.

“We must prepare superior, practical human resources with capacities that can be directly applied in their fields, especially in dealing with the dynamics of cybersecurity,” he explained.

He also highlighted the many cyber attacks that occurred in Indonesia last year. Therefore, awareness of the importance of a safe digital space is also a major focus.

“We will also start building awareness about how to create a safe and accurate information-based digital economic space. Therefore, we are developing new training methods that are more practical, interactive, and adaptive, so that all participants can gain relevant knowledge,” he added.

Furthermore, he explained that the training pattern that is being designed will ensure that graduates have skills that are ready to be applied in the world of work. In this case, the teams from RMIT and Innov8 will collaborate to develop an effective curriculum and implement it immediately.

“Because this concerns the development of human resources who are ready to work, the RMIT team and Innov8 will work together to formulate an effective training pattern. We hope that this training can be implemented immediately so that it can provide real benefits for the development of digital talent in Indonesia,” he said.

February 12, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250212150512-4-610095/perkuat-keamanan-siber-indonesia-gandeng-rmit)

Skytrax World Airport Awards 2023-2024, released the 100 best airports in the world. The data contains two Indonesian airports that are included in the ranks of the best airports, namely Soekarno-Hatta Airport (Soetta) Jakarta and I Gusti Ngurah Rai Bali. Quoted from the official upload of the Instagram account of the Ministry of Transportation (Kemenhub) @kemenhub151 which was marked by the Ministry of  Tourism @kemenpar.ri, Soetta Airport is in the 28th best position from 2023 in 43rd place.

Meanwhile, I Gusti Ngurah Rai Bali is in 74th position in 2024 from the 80 best airports in the world in 2023. The entry of these two Indonesian airports is based on several factors given to customers.

“This warning is determined through voting by air travelers worldwide in the Skytrax World Airport Awards which assesses the passenger experience from check-in to departure,” wrote the Instagram account, @kemenpar.ri, quoted Sunday (2/2/2025).

The assessment factors include facilities, comfort, cleanliness, and customer service. In the upload, good service will invite foreign tourists to come to Indonesia.

“Good travel services will attract tourists to come and experience a safe, comfortable, and enjoyable tourist experience,” he concluded.

Meanwhile, in first place, the world’s best airport is occupied by Doha Hamad Qatar which in 2023 will be in 2nd place. While in 2nd place is Singapore Changi Airport which was previously in first place in 2023. Then in 3rd place is Seoul Incheon Airport, followed by Tokyo Haneda in 4th place, and Tokyo Narita in 5th place. This is a good development for the aviation and tourism sectors of Indonesia so that it can increase foreign tourist visits to Indonesia and increase state revenue.

February 2, 2025, detikFinance

(https://finance.detik.com/infrastruktur/d-7759242/top-dua-bandara-ri-masuk-100-terbaik-di-dunia)

Investment from Malaysia has increased drastically in the last five years, both in terms of the number of projects. Data from the Investment Coordinating Board (BKPM) shows that the realization of Foreign Investment (PMA) in 2024 reached IDR 900.2 trillion or equivalent to 52.5% of the total investment last year (IDR 1,714.2 trillion). Of the five countries with the largest PMA realization, Malaysia stole the attention with a significant spike compared to previous years. However, which sector received the most funds?

Data from the Ministry of Investment of the Investment Coordinating Board (BKPM) shows that Singapore still leads as the largest investor with an investment value of US$ 20.1 billion, followed by Hong Kong US$ 8.2 billion, China, Malaysia, and the United States. These five countries control the majority of foreign capital flows entering Indonesia throughout the year.

Sectorally, investment from these countries mostly flows into the basic metal industry, metal goods, not machinery and equipment, followed by the paper and printing industry, mining, food industry, and other services. This trend shows that downstreaming is still a favorite for global investors, along with government policies that encourage added value domestically.

Malaysia has experienced extraordinary investment growth in the past five years. In 2020, Malaysia’s investment realization in Indonesia was still at US$ 1.045 billion, then skyrocketed to US$ 1.36 billion in 2021, then doubled to US$ 3.3 billion in 2022. This trend continued to climb in 2023 with US$ 4.1 billion and reached US$ 4.2 billion in 2024. If using the 2024 APBN exchange rate as used by BKPM (US$ 1 = IDR 15,000), Malaysia’s investment in 2024 reached IDR 63 trillion. This figure is the highest ever recorded by BKPM. When compared to 2020 or five years ago, Malaysian investment in Indonesia jumped 302%.

In terms of the number of projects, Malaysia has also experienced a significant increase. If in 2020 the number of projects worked on was only 3,283 projects, in 2024 it will reach 6,554 projects. This means that in addition to increasing investment value, project distribution is also wider and involves more sectors. Malaysia focuses on the basic metal, mining, and paper and printing industries. This is in line with the needs of the industry in Malaysia which requires a stronger supply of raw materials and production infrastructure.

Malaysia has proven its commitment as one of the largest investors in Indonesia, with consistent growth in the past five years. With an investment value of US$ 4.2 billion and more than 6,500 projects in 2024, Malaysia’s presence is increasingly felt in various industrial sectors. The challenge now lies in Indonesia’s hands: how to maximize this capital flow so that it not only benefits investors but also encourages sustainable and highly competitive economic growth.

January 31, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/research/20250131121307-128-606953/malaysia-jadikan-ri-surga-investasi-guyuran-modal-tembus-rekor)

President Prabowo Subianto inaugurated the Java-1 Steam Gas Power Plant or PLTGU which is integrated with FSRU owned by Pertamina and strategic partners along with dozens of other strategic electricity projects in West Java, Monday (20/1/2025). On that occasion, Prabowo targeted energy independence in the next five years and was optimistic that Indonesia would not only become an independent country but also become one of the main players in the global energy transformation.

Vice President of Corporate Communication Pertamina Fadjar Djoko Santoso said that the Java 1 PLTGU which is managed by PT Jawa Satu Power, a consortium company of Pertamina New & Renewable Energy (Pertamina NRE) subholding together with Marubeni and Sojitz is a manifestation of downstreaming and energy transformation according to the Asta Cita of the Government of President Prabowo Subianto in the 100-day work program and the direction of the Ministry of SOEs.

“The Java-1 PLTGU has a capacity of 1,760 MW and is the largest in Southeast Asia, equipped with sophisticated technology that has added value in operational, financial, and environmental aspects to support energy security, especially in the Java-Bali area,” said Fadjar in his statement, Tuesday (1/28/2025).

Fadjar explained that this PLTGU is equipped with LNG storage and regasification facilities located on a floating ship or also called the Floating Storage Regasification Unit (FSRU). The Java-1 PLTGU also uses single-shaft combined cycle gas turbine (CCGT) technology, the latest generation that helps it operate more efficiently and save electricity production costs.

“The technology used has a faster power increase feature, playing an important role in supporting the electricity network located in Cilamaya, Karawang as a reliable frequency stabilizer, ensuring a stable electricity supply when there are power fluctuations on the network,” he added.

According to him, this also has a direct impact on the benefits of the community, especially in reducing the potential for electricity loss on transmission lines in the process of sending electricity to industrial areas and the community. Moreover, this power plant is strategically located, namely in the center of the Java-Bali electricity load area. In addition, this power plant also has black start capability technology that allows for self-start up, so that the waiting period for the synchronization process during recovery in the event of a power outage will be faster.

In line with efforts to reduce carbon emissions from the electricity sector, the Java-1 PLTGU is projected to reduce carbon emissions by 3.3 million tons of CO2 equivalent per year. The operation of the Java-1 PLTGU is an important achievement point as well as adding to the clean energy utilization portfolio in Pertamina’s business. Natural gas plays a very strategic role in the energy transition period and supports national energy security.

The Java-1 PLTGU is also one of the important milestones created by the synergy of BUMN and international partners, who have a high commitment to jointly realize the transition to clean energy in Indonesia. 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 achieving the Sustainable Development Goals (SDGs). All of these efforts are in line with the implementation of Environmental, Social & Governance (ESG) across all of Pertamina’s business lines and operations.

January 28, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250128092415-4-606260/prabowo-resmikan-pembangkit-gas-jawa-1-terbesar-di-asean)