Tag: invest in Indonesia

President Prabowo Subianto held a meeting to discuss Special Economic Zones (KEK). It was recorded that until the third quarter of 2024, KEK had attracted investment of IDR 242.5 trillion. This was conveyed by the Coordinating Minister for the Economy Airlangga Hartarto after the meeting. According to Airlangga, KEK has created 151,260 jobs with 394 companies.

“The Special Economic Zone (KEK) which aims to attract investment and also to increase exports, the total achievement so far has reached IDR 242.5 trillion, the employment of 151,260 people with 394 companies,” said Airlangga at the Presidential Palace Complex, Central Jakarta, Tuesday (11/25/2024).

Arlangga also reported that the investment value in KEK reached IDR 68.43 trillion until the third quarter of 2024. This achievement has succeeded in employing 34,199 people.

“The direction of the President (Prabowo) for these economic areas is to continue to be encouraged, continued and also processed so that investment can come in. Especially the investment that the President made yesterday on a visit abroad,” he said.

Thus, Airlangga emphasized that his party will accelerate the investment process for a number of investor projects, one of which is a data center.

In addition, he also reported news about the continuation of the National Strategic Project (PSN). Under Prabowo’s direction, Agus Harimurti Yudhoyono as Coordinating Minister for Infrastructure & Regional Development will complete the PSN which is targeted to be completed in 2024-2025.

“It is planned that 18 projects will be completed this year while 30 more will be completed in 2025. Of course, the President directed this program to be continued and later if there are other investments, they will be discussed in more detail,” said Airlangga.

November 26, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7658278/airlangga-lapor-prabowo-investasi-di-kek-tembus-rp-242-triliun)

Indonesian President Prabowo Subianto is currently visiting several countries, such as China, the United States, Peru, Brazil, England, and the United Arab Emirates (UAE). Prabowo’s overseas visit also resulted in several agreements in the economic sector. So, what are the results of Prabowo’s visit? The following is a list of the results of Prabowo’s visit to China, the US, and Peru.

1. China

In China, Prabowo’s visit resulted in two quite important agreements, such as an investment worth US$ 10.07 billion or equivalent to IDR 157 trillion and Chinese financial assistance for the Free Nutritious Meals (MBG) program. The support is stated in an MoU entitled Food Supplementation and School Feeding Programme in Indonesia. However, the government did not specify how much funding China provided and the form of support.

Prabowo brought home an investment of US$ 10.07 billion or around IDR 160 trillion (assuming an exchange rate of IDR 15,900) from his visit to China. The investment is stated in a memorandum of understanding (MoU) between Indonesian and Chinese companies.

The cooperation was initiated by the Indonesian Chamber of Commerce and Industry (Kadin) and the China Committee (KIKT). The cooperation involves 20 companies from the two countries in the fields of manufacturing, health, downstreaming, food security, and finance.

2.  United States

In the US, Prabowo’s visit resulted in three important agreements, namely the US commitment to support Indonesian food security, Acceleration of clean energy transition through the Just Energy Transition Partnership (JETP), and development of the Mineral Supply Chain.

The US is committed to supporting Indonesian food security through sustainable agriculture. This commitment was agreed upon in Prabowo’s meeting with US President Joe Biden. Not only that, the US-RI are also committed to strengthening Indonesia’s food security through promoting sustainable management practices for fisheries and aquaculture, as well as increasing the effectiveness of management of Indonesia’s marine protected areas in line with applicable laws.

In addition, Prabowo’s visit to Uncle Sam’s country also resulted in a commitment from Indonesia and the US to expand collaboration to accelerate the clean energy transition, including through JETP. JETP is a promise from developed countries, aka the G7, to fund Indonesia’s energy transition. JETP funding of US$ 20 billion or equivalent to IDR 318 trillion was agreed upon at the G20 Summit in Bali in November 2022. Unfortunately, the funding was not in the form of a grant, but rather a loan, aka debt.

3.  Peru

The two countries are committed to finalizing the Comprehensive Economic Partnership Agreement (CEPA) within the next six months. Prabowo is optimistic that the agreement can be signed during the visit of Peruvian President Dina Boluarte to Indonesia with her delegation.

CEPA is a comprehensive economic cooperation agreement that not only regulates tariff reductions, but also concerns market access, capacity building and trade facilitation, and investment. The objectives of each arrangement are to eliminate tariffs and address non-tariff barriers, maintain market access and ensure conducive conditions for service providers, and protect and encourage investment.

4.  Brazil

Indonesian and Brazilian business actors have agreed to cooperate in various sectors worth US$ 2.8 billion or around IDR 44.4 trillion. Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the signing of the Memorandum of Understanding between Indonesian and Brazilian business actors was carried out at the Indonesia-Brazil Business Forum initiated by the Indonesian Chamber of Commerce and Industry, the Indonesian Ministry of Foreign Affairs, and the Indonesian Embassy in Brazil. The sectors included in the cooperation include the financial sector, digital technology, mining, energy, livestock, and the aerospace industry.

5.  England

In England, Prabowo managed to bring in US$ 8.5 billion or around IDR 135.15 trillion worth of investment. The investment commitment was stated by a number of British company leaders when they met Prabowo at the CEO Roundtable Forum in London. They intend to invest in several areas, such as energy transition, infrastructure, education, and health.

November 22, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/research/20241122141243-128-590351/hasil-kunjungan-prabowo-ke-5-negara-bawa-investasi-triliunan-rupiah)

Indonesian Minister of Trade Budi Santoso with the Minister of Sustainability and the Environment and the Minister of Singapore’s Trade Relations, Grace Fu carried out a bilateral meeting on Thursday (11/14).

On that occasion, Budi conveyed Indonesia’s priority on the issue of micro, small and medium enterprises (MSMEs) in order to export their products. Responding to that, Singapore invited Indonesia to elaborate the ideas of MSMEs to develop digital cooperation and trade facilitation.

“We convey the priority of the issue of MSMEs to be able to export. Singapore responds well and invites Indonesia to be able to elaborate the ideas of MSMEs, especially in the development of digital cooperation and trade facilitation,” Budi said, in his statement, Saturday (11/16/2024).

The opportunity given by Singapore can support one of the Ministry of Trade’s priority programs, namely MSMEs can (dare to innovate, ready to adapt) exports.

Another issue discussed at the meeting, namely about the Annual Ministerial Dialogue (AMD) forum. AMD is a special dialogue forum at the ministerial level between the Indonesian Ministry of Trade and the Singapore Ministry of Trade and Industry.

The implementation of the AMD meeting is expected to be a means of promoting trade in goods and services including exploration of trade facilitation for MSMEs and business assessment; Discussion on the issue of trade in goods, electronic commerce/digital connectivity, halal industry, and the implementation of international trade agreements; and the search for solutions to other new issues that affect bilateral trade.

“Indonesia supports the activation of the AMD forum to promote and facilitate trade and explore new issues in international trade,” Budi said.

At the meeting, Indonesia also encouraged Singapore to invest in Indonesia, especially in the Batam and Bintan regions. The two countries also expressed their interest in cooperation in the energy and food sector.

Indonesian-Singapore Trade at a Glance: In January-September 2024, total trade between the two countries reached US $ 24.77 billion with. Indonesia’s exports to Singapore amounted to US $ 8.65 billion and Indonesia’s imports from Singapore were US $ 16.12 billion.

Thus, Indonesia’s trade deficit against Singapore is US $ 7.47 billion. In 2023, the total trade of the two countries was recorded at US $ 31.02 billion with Indonesia’s exports to Singapore of US $ 12.61 billion and Indonesia’s imports from Singapore of US $ 18.41 billion.

In 2023, Singapore ranked 6th as export destination and 2nd position as the origin of imports for Indonesia. Indonesia’s main export products are natural gas, petroleum oil,. metal jewelry, electric machines, and petroleum residues. While the main imported products of Indonesia are motorbike fuel (motor spirit), diesel fuel, petroleum bitumen, p-xylene (para-xylene), and lubricants.

Meanwhile, Singapore’s investment in Indonesia in 2023 was recorded at US $ 15.4 billion. This value increased by 15.62% compared to the previous year.

November 16, 2024, detikFinance(https://finance.detik.com/berita-ekonomi-bisnis/d-7641748/ri-dan-singapura-kerja-sama-geber-ekspor-umkm

President Prabowo Subianto held a bilateral meeting with Canadian Prime Minister (PM) Justin Trudeau on the sidelines of the APEC Summit which took place at the Five Convention Center (LCC), Peru, Friday (11/15/2024).

During the bilateral meeting, the two leaders confirmed the commitment to improve cooperation relations between the two countries, including through strengthening trade and collaboration in the strategic sector. At present, the two countries have also completed the Indonesia-Competitive Economic Partnership Agreement (ICA CEPA) negotiations.

“Canada has a very good relationship with Indonesia for decades. We want to strengthen this relationship. I think we have completed Cepa,” Prabowo said in his written statement, Saturday (11/16/2024).

President Prabowo also highlighted the fields of cooperation that could be further developed by the two countries. Starting from fisheries, manufacturing, to renewable energy.

“Indonesia is very ambitious. We have a lot of energy resources outside of fossil fuels,” said President Prabowo.

PM Trudeau also announced good news about the signing of a free trade agreement between Indonesia and Canada. According to PM Trudeau, the agreement will provide many benefits to Indonesia and Canada.

“This is good news for our economy, for growth, for prosperity, for workers, and for the business world,” said PM Trudeau.

In addition to strengthening trade relations, PM Trudeau also highlighted various potential collaboration, including in the critical mineral, education, energy, and digital technology sectors. He also announced plans to lead Canadian’s biggest trade mission to Indonesia in the near future.

“Many Canadian businesses are very enthusiastic about this opportunity,” said PM Trudeau.

November 16, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7641226/bertemu-trudeau-prabowo-teken-perjanjian-perdagangan-bebas-ri-kanada)

Tencent The Indonesian government through the special envoy of the President of the Republic of Indonesia, Hashim Djojohadikusumo succeeded in capturing a green funding of EUR 1.2 billion for the electricity sector from Kredit Astalt Für Wiederaufbau (KFW) at the Conference of the Parties (COP) 29 in Baku, Azerbaijan, Wednesday (13/ 11/2024).

The funding is used to develop a number of green electricity infrastructure towards sustainable national energy self -sufficiency. This agreement was marked by the signing of the Memorandum of Understanding (MoU) between PT PLN (Persero) and KFW for the development of a net energy project, namely the Pumped Storage Hydroelectric Power Plant (PLTA) and the transmission that connects to the green plant.

In addition, Hashim stressed that the government is committed to accelerating energy transitions. By raising collaboration to the global level, the transition to renewable energy is expected to be able to sustain energy self -sufficiency and encourage national economic growth.

“We have had a new strategy for the next five years by achieving an economic growth of at least 8% on an ongoing basis,” Hashim said in an official statement, Friday (11/15/20234).

Hashim said, the development of net energy sources played a crucial role in increasing industrial competitiveness. In the next 15 years, Indonesia’s renewable energy generation capacity is targeted to increase 75% of the total additional electricity capacity of 100 Gigawatt (GW).

“We will become a big country that will fulfill responsibility in maintaining the future of the environment. We greatly appreciate international cooperation that has been established as a form of joint effort to achieve the Net Zero Emission (NZE) target,” Hashim explained.

PLN President Director, Darmawan Prasodjo revealed, PLN fully supports the government’s steps to run energy transitions. Various collaboration and initiatives have been carried out by PLN to succeed sustainable electrical projects.

He added, KFW’s involvement in PLN green projects was expected to be able to attract more international partners to collaborate. So that, a strategy, technical and continuous investment collaboration will be created in global climate actions.

“This collaboration marks PLN’s proactive steps in expanding international partnerships in improving sustainable national energy self -sufficiency in the direction of global climate actions,” Darmawan said.

KFW Group’s Sustainability Officer, Jürgen Kern explained KFW’s support for Indonesia was a form of Germany’s commitment in supporting international cooperation to achieve green transformation.

Moreover, according to Jürgen, PLN is the center of energy transition in Indonesia. PLN has a strong commitment to green the energy sector while ensuring reliable energy access.

“Therefore, we believe that Indonesia-German continues to strengthen partnerships in the energy sector. Especially in clean energy projects such as geothermal, water and also transmission. To achieve NZE targets, good collaboration and partnership are needed,” Jürgen said.

November 15, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20241115144010-4-588533/ri-sukses-pikat-pendanaan-hijau-eur-12-miliar-di-cop-29)

The 8th President of Indonesia, Prabowo Subianto visited the Chinese President Xi Jinping on 8-10 November 2024. Prabowo’s visit to Beijing produced several important points that increasingly tightened Indonesia’s relations with China.

For example, Indonesia and China agreed to hold the first meeting of the 2+2 dialogue mechanism for the Foreign Minister and the Minister of Defense in 2025. This functions as the main platform to expand high -level strategic communication and political, security and defense cooperation between the two countries .

Previously, in August 2024, Indonesia and China held a meeting of the 2+2 dialogue mechanism to build regional stability. During the meeting, China stated a clear establishment and proposal regarding issues concerning Chinese core interests and concerns such as the issue of the Taiwan Strait and the South China Sea. In response, Indonesia expressed its commitment to the principle of one China and proposed an appropriate dispute through peaceful negotiations, in order to maintain peace and stability in the South China Sea. In addition, Indonesia reiterated its consistent compliance with the principle of one China, in accordance with the resolution of the UN General Assembly 2758. This recognition refers to the Government of the People’s Republic of China is the only legal government representing all China and that Taiwan is a part that cannot be revoked from China and support peaceful national reunification.

Furthermore, Indonesia and China also officially signed an agreement worth US $ 10 billion or IDR156  trillion at the Indonesia-China Business Forum in Beijing on Sunday (11/10/2024). This cooperation will cover various sectors including food, new energy, technology, and biotechnology.

Launching Reuters on Monday (11/11/2024), the manufacturer of China battery materials GEM signed an agreement with PT Vale Indonesia to build a high-pressure acid pelindian factory in Central Sulawesi. According to the submission in Shenzhen, this cooperation is partly to secure nickel resources. The nickel industry in Indonesia, the largest metal producer in the world, is dominated by Chinese companies including Tsingshan Holding Group and Zhejiang Huayou Cobalt.

In a joint statement after the leaders’ meetings, the two countries agreed to increase collaboration in various sectors such as new energy vehicles, lithium batteries, photovoltaic, and digital economy. They also promised to strengthen partnerships in global energy transitions and jointly ensure the security of global mineral supply and industrial chains. Prabowo, through a separate statement, said he was optimistic that the close cooperation between the two countries would increase regional stability.

According to him, this meeting was an opportunity to strengthen Indonesia-China relations which had been running for several centuries. Prabowo also underlined that China was not only seen as a great force, but also as a large civilization that had long been established with Indonesia.

The cooperation agreement between Indonesia and China signed is:

1. Phytosanitari requirements protocol for fresh coconut exports from Indonesia to China;

2. Technical Work Guidelines for promoting sustainable capture fisheries;

3. Memorandum Understanding about the strengthening of blue economic cooperation;

4. Memorandum Understanding each other about cooperation between mineral resources;

5. Memorandum Understanding each other about the collaboration of green minerals;

6. Memorandum Understanding mutual cooperation in the field of water resources; and

7. Memorandum Understanding mutual cooperation of conformity assessment.

November 11, 2024, CNBC Indonesia(https://www.cnbcindonesia.com/news/20241111114345-4-587224/deal-prabowo-temui-xi-jinping-ri-china-kantongi-kesepakatan-rp156-t)

PT Aviation Tourism Indonesia (Persero) or Injourney again presents the People’s Party and Aquabike Jet Ski World Championship on Lake Toba on November 13-17, 2024. This event is the second year of the world-level jet ski championship series held at the world’s largest volcanic lake. A total of 73 racers from 30 countries will compete in this event. Not only international racers, but this event will also be attended by 10 Jetski racers proud of Indonesia.

Aquabike Jetski World Championship 2024 which was enlivened by the People’s Lake Toba Party was held in four major districts around Lake Toba namely Karo, Dairi, Simalungun, and Samosir Regency. By combining the beauty of Jetski’s sport with the beauty of the natural panorama of Lake Toba, it is believed to provide its own attraction to this international scale sports event.

The Minister of Tourism of the Republic of Indonesia, Widiyanti Putri Wardhana, emphasized her support for the International Aquabike Jetski World Championship 2024 event. According to him, the implementation of events like this is not only to improve tourist visits but also to improve the welfare of the local community through the growth of the creative economy and the MSME sector.

“The implementation of this event encourages the creation of economic opportunities for the surrounding community, ranging from the transportation sector, lodging, to local culinary that will be enjoyed by visitors,” said Widiyanti, in a written statement, Thursday (10/31/2024).

Maya continued, the implementation of Aquabike Jetski World Championship 2024 in these four districts is an effort to revive tourism in the area around Lake Toba and strengthen its positioning as a water sport tourism. So, it is expected to have an extraordinary impact of economic equality for the people around Lake Toba which is holistic and integrated.

“We predict that this event will have an economic impact of IDR 1.7 trillion in the next few years,” Maya added.

Furthermore, Maya is optimistic that the number of tourist visits to Lake Toba, which is included in the list of the Top 52 Destination in The World, the New York Times version will continue to increase. This is inseparable from the presence of various international events held to increase the interest of the community to visit Lake Toba.

For information, the sporting event which is packed with the People’s Party Lake Toba offers a variety of activities and attractions. For the Aquabike Jetski World Championship itself will last for five days and the race will be divided into two categories namely Endurance World Championship (Endurance) and Circuit World Championship (Circuit).

October 31, 2024, detikTravel

(https://travel.detik.com/travel-news/d-7616423/injourney-gelar-event-jet-ski-internasional-diikuti-73-pembalap-30-negara)

(https://finance.detik.com/berita-ekonomi-bisnis/d-7616046/pemerintah-yakin-ri-dapat-durian-runtuh-dari-ajang-aquabike-jetski)

Indonesia officially conveyed the desire to join as a member of the Brits Block. This was conveyed by the Indonesian Minister of Foreign Affairs (Foreign Minister) Sugiono in the BRICS Plus High Level Conference (Summit) in Kazan, Russia. Through the announcement on Thursday (10/24/2024), the Indonesian process to join as a member of BRICS led by Russia has begun.

“The joining of Indonesia to BRICS is a manifestation of an active -free foreign policy. It does not mean that we join certain camps, but we actively participate in all forums,” Sugiono said, quoted Friday (10/25/2024).

“We also see the priority of BRICS in harmony with the Red and White Cabinet work program, among others related to food and energy security, eradication of poverty or the promotion of human resources,” he added.

In addition, Sugiono also proposed a few concrete steps to strengthen BRICS and Global South Cooperation. There are at least three points delivered.

First, uphold the right to sustainable development, where developing countries need policy space, while developed countries must meet their commitment. Second, supports the reform of multilateral systems to be more inclusive, representative, and in accordance with current reality. International institutions must be strengthened and have adequate resources to meet their mandate. Third, it becomes a force for unity and solidarity among the Global South countries. BRICS is felt to be able to function as an adhesive to strengthen cooperation among developing countries.

“We see BRICS can be the right vehicle to discuss and advance the shared interests of South Global,” said Sugiono. “But we also continue our involvement or engagement in other forums, as well as continuing discussions with developed countries.”

Indonesia has previously been recognized as one of the 13 BRICS countries. Besides Indonesia, 12 other countries are Algeria, Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.

BRICS itself is only allowed to be involved and participate selectively in BRICS matters. They remain participants in other international initiatives but without full commitment to the block. The new BRICS partner does have the potential to become a full member in the future. But they were not immediately inaugurated for certain reasons that were only known by the Block of the leadership of Vladimir Putin.

BRICS is an informal group that initially consists of Brazil, Russia, India, China and South Africa. This group was first initiated in 2006 to discuss the latest global issues. Its membership was expanded in 2023 with the joining of Ethiopia, Iran, Egypt, and the United Arab Emirates (UAE).

International Business and Trade Law Expert, Ariawan Gunadi assessed that by joining BRICS Indonesia could expand its export market. This decision, he said, could be an alternative when some of Indonesia’s superior products get export obstacles to Europe. Joining BRICS Indonesia can also get access to investment and funding infrastructure projects. According to him, access to funding can occur because BRICS has its own financial institution, namely New Development Bank (NDB). In addition, Indonesia can take advantage of its comparative advantage compared to other members. According to him, Indonesia can also rearrange its international trade policies and strengthen its diplomatic role.

October 25, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20241025141434-4-583071/untung-buntung-indonesia-masuk-geng-rusia-china)

(https://www.cnbcindonesia.com/news/20241025115442-4-583021/ri-resmi-daftar-keanggotaan-brics-satukan-kekuatan-dengan-rusia-china)

The Ministry of Industry (Kemenperin) records the export value of the pharmaceutical and natural drug industry through US $ 639.42 million or equivalent to IDR 9.9 trillion (exchange rate of IDR 15,503) during the January-September 2024 period. While in the second quarter of 2024, the industry recorded the industry growth of 8.01% and contributed to the non-oil and gas processing industry reached 18.52%.

Head of the Industrial Services Standardization and Policy Agency (BSKJI), Andi Rizaldi said the development of the industry this year also showed a passion. The Pharmacy and Natural Medicine Industry Group is one of five industrial subsectors who experienced the highest expansion in the release of the Industrial Trust Index in September 2024.

“The development of the pharmaceutical industry, chemical drugs and traditional medicines still has good prospects for the future. Thus, the development of the natural medicinal industry in Indonesia needs to continue to be supported and improved in order to be able to compete in the global market with a strong synergy between various stakeholders such as the government , industry, academics, and research institutions, “he said in a written statement, Friday (10/18/2024).

He explained that the Ministry of Industry also continued to play an active role in supporting the policy of developing natural drugs, especially in the production process and manufacturing technology. One of them, through the construction of the House of Wellness which is a natural drug production facility owned by the Ministry of Industry under the Work Unit of the Center for Standardization Center and Pharmaceutical Chemical and Packaging Industry Services (BBSPJIKFK).

At present, there are several types of natural medicinal industry companies in Indonesia, namely small traditional medicine (UKOT), Micro Medicine (UMOT), Natural Material Extract Industries (IEBA) and Traditional Medicine Industries (IoT), which produce 19 thousand Jamu products, 99 standardized herbal medicine products and 33 phytofarmaka products.

“The Ministry of Industry continues to encourage and provide guidance so that small industries can move up the class, so that the production of natural drugs can be increased in order to strengthen the pharmaceutical industry in Indonesia,” he added.

Meanwhile, Head of BBSPJIKFK Siti Rohmah Siregar said that his party was ready to facilitate the natural medicinal industry in Indonesia with the House of Wellness facility to encourage and accelerate the independence of the Indonesian Natural Medicine Industry Industry. According to him, the facility has been equipped with modern technology that is able to support the process of production of natural medicinal drugs ranging from processing simplicia, extraction, to formulations and packaging.

October 18, 2024, detikFinance

(https://finance.detik.com/industri/d-7593765/ekspor-industri-farmasi-dan-obat-bahan-alam-tembus-rp-9-9-t)