Tag: invest in Indonesia

Indonesia continues to move forward in optimizing the potential of its natural resources as evidenced by the downstream mining industry program. Until 2024, this program has had a significant impact in building a national economy based on added value that focuses on copper, bauxite, and silica sand commodities. If carried out and realized in accordance with the existing investment plan, downstreaming will be a prerequisite for the processing industry sector to support the achievement of Indonesia Emas 2045. Downstreaming of the mining industry, especially copper, bauxite, and silica sand, was initially carried out through the construction of copper and bauxite smelters, as well as the development of products made from silica sand.

This statement was expressed in research by the Faculty of Economics and Business, University of Indonesia (FEB UI) entitled “Study of the Impact of Mining Industry Downstreaming on the Economy, Social, and Environment: Copper, Bauxite, and Silica Sand”.

Deputy Head of the Center for Sharia Economics and Business, Faculty of Economics and Business, University of Indonesia (PEBS FEB UI) Nur Kholis said that the requirement for the processing industry sector to be able to support the achievement of Indonesia Emas 2045 is the use of products from smelter processing. The product can be downstreamed again as input in the development of products that have higher added value domestically to the final product.

Downstreaming has enabled Indonesia to no longer just export raw materials. Value-added products such as copper cathodes, alumina, and silica sand-based products such as glass and ceramics, and in the future solar panels and semiconductors are now starting to be produced domestically. This is a strategic step to strengthen the national industrial structure and open up new economic opportunities. Indonesia cannot continue to rely on exports of raw materials and imports of intermediate goods from abroad. Downstreaming is Indonesia’s path to economic independence.

“By increasing investment in order to produce value-added products domestically, we create jobs, increase people’s income, and ensure that our natural resources truly provide maximum benefits for the nation,” said Nur Kholis in his official statement, Wednesday (15/1/2025).

In addition, Nur Kholis explained, the impact of the downstreaming of copper, bauxite, and silica sand has begun to be felt in areas such as Gresik Regency (East Java), Mempawah Regency (West Kalimantan), and Batang Regency (Central Java), where the construction of smelters has become the driving force of the local economy. In addition to increasing Gross Regional Domestic Product (GRDP) and regional income, this policy has also created thousands of jobs, both directly and indirectly.

However, downstreaming also faces challenges such as limited infrastructure and technology, limited skilled workers, fluctuating market demand, and negative impacts on the environment. According to him, the government needs to take a number of strategic steps to face these challenges. For example, human resource development, research and development of technology, application of environmentally friendly technology, product diversification, and strengthening international cooperation.

“Downstreaming of the mining industry, especially copper, bauxite, and silica sand also needs to continue to be encouraged to apply environmentally friendly technology in all mining mineral processing facilities. Effective waste management must be an integrated part of the implementation of downstreaming,” he said.

January 15, 2025, CNCB Indonesia(https://www.cnbcindonesia.com/news/20250115200002-4-603501/hilirisasi-jadi-prasyarat-sektor-industri-menuju-indonesia-emas-2045)

American technology giant Apple is investing in Indonesia by building an AirTag factory in Batam worth US$ 1 billion or IDR 16 trillion. The plan is for the factory to start operating in February 2026. This was conveyed by the Minister of Investment and Downstream/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani at the Semangat Awal Tahun 2025 event. Apple has purchased land to build the factory.

“On the investment side, we have succeeded in convincing them (Apple) to stay in Batam. The land has been purchased, shown to us, and cut and fill has been done to start construction. It is hoped that in early 2026, in February it will be ready for AirTag (production),” said Rosan at Menara Global, South Jakarta, Wednesday (15/1/2025).

AirTag is one of Apple’s products. Rosan emphasized that the steps to build the AirTag vendor factory are only the initial stages. He hopes that other vendors will also enter Indonesia.

“We want other vendors, like many vendors at Apple in other countries. As I said earlier, in Vietnam there are more than 35-36 vendors. In Malaysia, Thailand more than 25-26 vendors, so this is what we also want to do,” he said.

The start of construction of the AirTag factory in Batam, according to Rosan, is a sign that Apple is investing in Indonesia. Construction is still ongoing to this day. The hope is that investment entering Indonesia can continue to increase. Because the value of this investment is actually still much smaller than the neighboring country, Vietnam, which reaches hundreds of trillions.

“So that the initial investment of US$ 1 billion then increases gradually to US$ 3 billion, US$ 5 billion, and the target of US$ 10 billion can be achieved,” he said.

Rosan added that this new factory will supply 65% ​​of Apple’s AirTag needs worldwide. This factory will also create jobs for up to 2,000 people.

January 15, 2025, detikFinance

(https://finance.detik.com/industri/d-7733697/apple-bangun-pabrik-airtag-di-batam-rp-16-t-beroperasi-februari-2026)

The General Chairperson of the Indonesian Tourism Intellectuals Association, Professor Azril Azhari, explained that Indonesia began to initiate the concept of disability-friendly tourism since 2021. Meanwhile, the world had previously known the term Accessible Tourism (AT) in 2019 through the United Nations Tourism Organization (UNWTO) and The ONCE Foundation. According to Azril, the term “disability-friendly tourism” is actually less popular globally because the term Accessible Tourism is more commonly used and has a meaning that is closely related to Tourism for All. WHO data (2023) states that 1.3 billion people or around 16% of the world’s population have significant disabilities.

“This means that accessibility for all tourism facilities, products, and services must be a major part of every sustainable tourism policy,” said Azril in a conversation with detikTravel, Wednesday (18/12/2024).

However, he admitted that in Indonesia, the implementation of disability-friendly tourism is still partial. Only in toilets, parking lots, or ramps, so it has not become a single destination. The Importance of Certification and Implementation of Inclusive Principles: Certification has two main types, namely business certification and professional certification for business actors. Both are very important to determine the feasibility of a destination and the competence of its business actors, especially in adopting the concept of Accessible Tourism. He also emphasized that the term “disability-friendly” tends to represent additional services (extended services). On the contrary, Accessible Tourism is a basic criterion that is a basic need for every tourist with special needs.

“To achieve inclusive tourism, Indonesia must adopt universal principles that are international standards. This includes physical accessibility such as ramps and lifts, sensory accessibility such as voice-based information, and cognitive accessibility that is easy for people with disabilities to understand,” said Azril.

Examples and Challenges in Implementation: Several destinations such as Bali and Yogyakarta have adopted universal design principles, such as wheelchair-accessible beaches or facilities at the Temple. Mentawai Island has even provided a surfing experience that can be enjoyed by people with disabilities. However, Azril highlighted that its implementation is still limited.

“We face a big challenge in the form of a lack of understanding from business actors and local governments and the absence of initiators or facilitators who are able to drive the concept of Accessible Tourism. In fact, the tourism market opportunity is very large, with an economic impact of $ 58.7 billion per year (PR Newswire, 2020),” he said.

The importance of developing inclusive destinations to support Indonesian tourism. He also added that the presence of skilled workers from among the disabled can be a unique attraction that enriches the sector.

“However, the main goal remains the development of destinations that adopt universal standard principles to serve tourists with special needs,” said Azril.

Indonesia has a great opportunity to become a pioneer in Accessible Tourism in Southeast Asia. With a deep understanding, adequate certification, adoption of technology, and community involvement, Indonesia can create inclusive destinations that not only have an economic impact but also strengthen human values.

January 09, 2025, detikTravel(https://travel.detik.com/travel-news/d-7724798/indonesia-dan-tantangan-mewujudkan-pariwisata-inklusif)

Deputy Minister of Agriculture (Wamentan) Sudaryono has set an ambitious target for Swallow Nest exports. The reason is that the potential for swallow nest production is very promising. For this reason, he appealed for swallow nest cultivation to be increasingly looked at. Thus, it can become an economic strength for farmer families and strengthen national exports.

He conveyed this when reviewing the Processing Bird House at PT Surya Aviesta, Surabaya, East Java, Tuesday, (7/1/2025). The government, he added, will provide support for farmers who want to develop Swallow Nest cultivation.

“Of course, this is an extraordinary potential that can be utilized by our community, and I think it’s worth a try. Why? Because of the 100 percent of the world’s Swallow Nest supply, 60 percent of it comes from Indonesia. The export value is almost IDR 10 trillion per year,” said Sudaryono in an official statement, Wednesday (8/1/2025).

He also targeted that Indonesia’s export contribution to the world’s Swallow Nest market could increase by more than 60 percent, with a target of reaching 63 to 65 percent.

“The Swallow’s Nest industry has great potential. Because if Indonesia has supplied 60 percent of the world’s supply, we are sure it can increase further. So that Indonesian swallow’s nests can dominate the world’s export market. Just by preparing a place for swallows to nest, farmers can earn quite a large income. The price of swallow’s nests reaching tens of millions of rupiah per kilogram can strengthen the family economy,” he said.

For information, the Indonesian Minister of Trade Muhammad Luthfi in 2021 once said that Indonesia is one of the largest Swallow’s Nest producing countries in the world. Swallow’s Nest is known as a luxury commodity that has various health benefits, including increasing immunity, improving organ function, and preventing aging.

In CNBC Indonesia’s records, the export value of Indonesian Swallow’s Nest continues to show a significant upward trend. In 2020, exports of swallow’s nest reached US$540.4 million, an increase of 48.5% compared to 2019. The volume of Indonesian bird’s nest exports in 2023 reached 1,335 tons with a value of US$633.25 million or equivalent to IDR 9.81 trillion (US$1 = IDR 15,945, October 2024). Using this exchange rate, 1 kg of Indonesian bird’s nest is valued at IDR 7.35 million. China, Hong Kong, and Singapore are the main markets for Indonesian Swallow’s Nest. For example, in 2023, exports to Hong Kong were recorded at 630.9 tons with a value of US$77.137 million, while exports to Singapore reached 36 tons with a value of US$17.588 million.

Sudaryono promised that if there are regulations that hinder, including for the export of Swallow’s Nest, the government is ready to accelerate and simplify the process.

“From the government’s side, we want to increase export volume, simplify regulations so that entrepreneurs and the public are more enthusiastic. The President’s determination is clear, we want food self-sufficiency, reduce imports, and increase exports,” said Sudaryono.

January 08, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20250108163957-4-601707/sarang-burung-walet-ri-laku-keras-di-dunia-begini-ambisi-wamentan)

The Ministry of Marine Affairs and Fisheries (KKP) reported that the value of fishery exports from January to October 2024 reached US$ 4.8 billion or IDR76.8 trillion (exchange rate of IDR16,000). This value increased compared to the same period last year of US$ 4.61 billion.

The Director General of Strengthening the Competitiveness of Marine and Fishery Products (PDSPKP) of the Ministry of Marine Affairs and Fisheries, Budi Sulistyo, is targeting that by the end of 2024, the value of Indonesian fishery exports will reach US$ 5 billion.

“Regarding the strengthening of the marketing of fishery products that we get in 2024, the performance of Indonesian fishery exports for the period January to October 2024 is currently recorded as of October at US$ 4.81 billion. This (has experienced) an increase in the same period. We hope that by the end of the year, until December, it will reach more than US$ 5 billion,” said Budi in the 2024 KKP Year-End Achievement Press Conference at the Mina Bahari IV Building, Central Jakarta, Monday (16/12/2024).

Furthermore, Budi explained that there are five largest destination countries, including the United States (US) with an export value of US$ 1.56 billion, China with an export value of US$ 0.99 billion, ASEAN with an export value of US$ 0.65 billion, Japan with an export value of US$ 0.49 billion, and the European Union of US$ 0.35 billion. The most exported fishery commodities are shrimp, tuna, skipjack tuna, squid, cuttlefish, octopus, crab, and seaweed.

“Commodities are dominated by shrimp, followed by skipjack tuna, squid, crab and seaweed,” explained Budi.

To boost fisheries exports next year, his party has compiled and analyzed market performance and marketing, especially for skipjack tuna and tilapia commodities. This analysis was conducted to see potential export destination countries. Based on the results of the analysis, the demand for US tuna is predicted to increase by 300 thousand tons with the form of frozen whole superior products. Then in the European Union, the demand for tuna is estimated to reach 889 thousand tons with the form of canned tuna as the superior product.

“Tuna in Japan is positioned (Indonesia as a tuna exporting country in Japan) number 4. While the demand in 2025 is predicted to be 249 thousand tons or an increase of 4%. Well, we should be able to capture the market from this potential increase. So is tilapia. We will convey this kind of information to business actors. This is to improve export performance in the future, and we will always improve our capabilities,” explained Budi.

December 16, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7689116/ri-ekspor-ikan-rp-76-8-t-paling-banyak-ke-as-china)

Minister of Transportation Dudy Purwagandhi met with the Japanese Ambassador to Indonesia Yasushi Masaki to discuss the continuation of cooperation between the two countries in the transportation sector. Japan itself has made significant contributions to transportation projects in Indonesia, such as the development of railway systems, human resource development and training programs, and the exchange of knowledge in the field of technology.

Dudy said that the cooperation between the Ministry of Transportation and the Japan Ministry of Land, Infrastructure, Transport and Tourism (MLIT) was strengthened through the signing of a Memorandum of Cooperation (MoC) in the transportation sector on January 19, 2024. He also said that this cooperation has become more intensive, especially in the development of the Jakarta MRT project, Patimban Port, and the Bekasi Proving Ground

“We hope to increase more intensive cooperation with Japan, especially in the development of the Jakarta MRT project, Patimban Port, and the Bekasi Proving Ground,” said Dudy in his statement, quoted Tuesday (3/12/2024).

Regarding the Jakarta MRT project, Dudy hopes that with the support of the Japanese Ambassador, the MRT project can run smoothly and according to plan, so that it can improve the connectivity of the Jabodetabek area.

“I hope that with the support of the Japanese Ambassador, the Jakarta MRT project can run smoothly and according to the targets that we have agreed upon together. In addition to the construction of the MRT, I also hope that the connectivity of the Jabodetabek area can be improved through the integration of the main line with feeder services,” he added.

In addition to a number of infrastructure project developments, Dudy also conveyed the potential for future cooperation between the two countries, such as in terms of developing human resources (HR) in transportation through internship program cooperation.

“Among them are student and teacher exchanges from schools or polytechnics under the Ministry of Transportation, or guest lecturer programs from Japanese experts in the field of transportation. This aims to provide international experience that can enrich their skills and insights in the field of transportation,” explained Dudy.

December 3, 2024, detikFinance

(https://finance.detik.com/infrastruktur/d-7668244/ri-jepang-bakal-kerja-sama-infrastruktur-transportasi)

Minister of Energy and Mineral Resources, Bahlil Lahadalia together with the Canadian government established bilateral cooperation through a Memorandum of Understanding (MoU) regarding critical minerals to the energy transition in Indonesia. The cooperation was carried out between Bahlil and the Minister of Export Promotion, International Trade, and Development of Canada Mary Ng.

The memorandum of understanding covers several programs, ranging from the implementation of environmental, social, and governance (ESG) standards, reducing greenhouse gas (GHG) emissions through clean technology, to strengthening trade and investment in the mining sector.

Bahlil said that the bilateral cooperation is expected to support energy transition projects in Indonesia and encourage economic growth in Indonesia and Canada. Furthermore, Bahlil said that the cooperation will also encourage the fulfillment of energy needs in Indonesia which are considered to continue to increase. This is also said to be in line with the projected growth in domestic electricity needs reaching 61 Giga Watts (GW).

“Our current electricity is 91 GW with economic growth below 6%. President Prabowo’s target for future economic growth is 8%, so we need an additional 61 GW to support that target,” Bahlil explained in the Energy Transition Roundtable (ETR) session, quoted from an official statement, Tuesday (3/12/2024).

In addition, cooperation between Indonesia and Canada is also considered in line with the energy transition program in Indonesia which is currently being drafted through the revision of the 2025-2033 Electricity Supply Business Plan.

“We designed the 2025-2033 Electricity Supply Business Plan with a target of 60% new renewable energy. We are committed to achieving net zero emissions by 2060, even pushing for it to be faster in 2050,” he added.

Bahlil also expressed his optimism about the potential for cooperation with Canada in the field of nuclear energy. Nuclear energy itself, said Bahlil, will begin to be implemented in Indonesia in 2032.

“We know that Canada is one of the leading countries in nuclear development. The House of Representatives has approved the use of nuclear power, and we are targeting the regulation to be completed in 2025. Its implementation will begin gradually in 2032,” said Bahlil. In addition, Bahlil also emphasized the importance of this cooperation to maintain a balance between advanced technology and affordable prices.

On the other hand, the Minister of Export Promotion, International Trade, and Development of Canada Mary Ng explained that through this bilateral collaboration, her party would support the sustainable energy transition in Indonesia.

Mary revealed that the Canadian government had actually prepared funds of up to 5.3 billion Canadian dollars (CA$) equivalent to IDR 60.14 trillion (assuming an exchange rate of IDR 11,348 per CA$) to support the world’s energy transition program, including one for Indonesia.

“Our commitment to supporting Indonesia’s fair and sustainable energy transition is substantial. This includes our global climate funding of CA$ 5.3 billion, including Indonesia over the past five years,” said Mary on the same occasion.

Mary said that the funding provided by the Canadian government was partly to support key projects with the Asian Development Bank, such as the Sarulla geothermal power plant in North Sumatra and wind and solar power plants in South Sulawesi and Lombok. Mary also said that Canada is proud to be a partner in the Just Energy Transition Partnership (JETP), which aims to mobilize public and private financing of up to US$ 20 billion to support Indonesia’s energy transition.

December 3, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20241203122901-4-592960/ri-gandeng-kanada-garap-mineral-kritis-transisi-energi)

British Petroleum (BP) signed an Engineering, Procurement, Construction, and Installation (EPCI) onshore and offshore contract with two contractors worth US$ 3.6 billion or around IDR 56.5 trillion (exchange rate of IDR 15,700/US$). The first contractor is Saipem in a consortium with partner PT Meindo Elang Indah, and the second contractor is JGC Holdings Corporation, through its local subsidiary PT JGC Indonesia.

The contract signing was carried out today (26/11) by Procurement VP bp James Tehubijuluw, while the signatories from Saipem were Paolo Evangelista and Vincent Chan from Meindo. The signatories from JGC Indonesia were Soeryadi. Previously, the announcement of the final investment decision (FID) worth more than US$ 7 billion or around IDR 110 trillion for the Tangguh UCC Project was delivered by BP CEO Murray Auchincloss to President Prabowo Subianto in London on November 21, 2024.

The Indonesian government in meeting the increasing energy needs, achieving the national gas production target, and advancing decarbonization efforts to achieve national emission reduction goals. Djoko said that towards the end of 2024, the UCC Project had successfully achieved two important milestones in its development.

First. is the FID decision announced by BP management during a meeting with President Prabowo Subianto in London. Second, is the signing of the EPCI contract for onshore and offshore facilities. He asked BP to learn from the implementation of the Train 3 Project, so that BP must be proactive in addressing emerging problems and discussing them with SKK Migas to find efficient and effective solutions.

Meanwhile, Kathy Wu, BP regional president Asia Pacific, gas & low carbon energy said that the Tangguh Project has the potential to produce 3 trillion cubic feet of additional gas resources to meet the increasing energy needs in Indonesia and Asia, while supporting Indonesia’s decarbonization efforts through the reinjection of around 15 million tons of CO2 in the initial phase.

The Tangguh UCC (Ubadari, CCUS, Compression) project consists of the development of the Ubadari gas field, enhanced gas recovery through carbon capture, utilization and storage (CCUS), and onshore compression. This project also supports Indonesia’s decarbonization agenda by re-injecting around 15 million tons of CO₂ into the reservoir through one of the first CCUS technology applications developed on a large scale in Indonesia. It is projected to create around 6 thousand jobs during construction and provide a positive multiplier effect for the Papuan community. The Tangguh LNG workforce currently consists of 99% Indonesian citizens, 70% of whom are local Papuans.

November 26, 2024, detikFinance

(https://finance.detik.com/energi/d-7657807/raksasa-migas-inggris-teken-kontrak-proyek-tangguh-rp-56-5-triliun)