Tag: invest in Indonesia

Indonesia through the Coordinating Minister for the Economy Airlangga Hartarto visited CNGR integrated industrial facilities based in the Qinzhou area, southern China. The distance is approximately 90 km from the city of Nanning in southern China. Airlangga’s arrival was received directly by CNGR Chairman Deng Wei Ming.

Airlangga directly checks the OESBF technology facility for the resistance of mineral reserves, which can take nickel coverage with a wider grade. Then nickel electrolytic facilities that use centrifugation extraction technology. Furthermore, seeing technology for the production of lithium battery raw material precursors that are currently used by many leading industries such as Tesla, Samsung, LG, SK, Panasonic.

On the visit, Airlangga also encouraged CNGR to help the development of R&D material for new energy, which collaborates with universities. In this case with the Faculty of Engineering, Gadjah Mada University (FT UGM).

Through this collaboration, the establishment of metal energy R&D centers will be prepared or the Center for Research and Development of Energy Materials. While UGM will play a role in developing the Engineering Research Innovation Center at UGM, which is currently more research on recycling, Rare Earth Element, material deposit in Indonesia.

Airlangga hopes that CNGR’s support will focus more on material for new energy. On the other hand, Deng expressed his interest in collaboration with universities in Indonesia.

“CNGR is committed to cooperating with leading universities in Indonesia in the development of material industrial technology diversification for new energy in Indonesia,” he said in a written statement, Monday (5/27/2024).

It is known, CNGR is one of the large company groups from China engaged in the nickel processing industry, which leads the development and innovation in the field of material energy and is recognized as the world leader in new energy materials. CNGR conducts 4 industrial modernizations, namely technology diversification, development globalization, operational digitalization and making industrial ecologizes.

As an integrated industry in nickel processing, CNGR produces the synthesis of ternary precursors and electrolytic nickel. CNGR plans to make an investment of IDR 168.2 trillion in the next 20 years, and since 2021 has made an investment ofIDR 32.1 trillion in Indonesia. CNGR has built nickel processing industry facilities in Morowali, North Morowali, Weda Bay, and Batulicin.

At present CNGR is starting to develop integrated area facilities in North Konawe, called the Konasara Green Techno Industry (KITHK) area of ​​more than 5,000 ha, the construction will begin in the fourth quarter of 2024, and is estimated to absorb as many as 28 thousand local workers.

To maintain the sustainability of natural resources and the resistance of Indonesian mineral reserves, CNGR is processing nickel ore with OESBF (Oxygen Enriched Side Blow Furnace) technology innovation which is the first industry in the world to implement the use of nickel ore with broader grade scope, energy efficiency that minimizes Carbon emissions, and waste production that is environmentally friendly and can be utilized by other industries.

In addition, as a result of synergy with the downstream mineral policy in Indonesia, CNGR has succeeded in producing nickel electrolytic (nickel cathode) with a purity of 99.99%. As of May 23, 2024, CNGR has also brought Indonesian nickel into the metal supply chain in LME (London Metal Exchange).

May 27, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7359545/airlangga-dorong-perusahaan-cngr-di-china-kerja-sama-r-d-dengan-ugm)

Coordinating Minister for the Economy Airlangga Hartarto working visit to South Korea. In the series of visits, Airlangga met the Minister of Trade Minister, Industry and Energy (MOTIE) of South Korea, Ahn Duk Geun in Seoul, Wednesday (5/22/2024). Airlangga said that the relations between Indonesia and South Korea which had been closely established so far could be increased, especially in the industrial, trade and energy sectors.

“We believe our cooperation in the future will increase and develop. I hope that Minister AHN can help to further strengthen and deepen industrial cooperation, trade, and also in the field of energy transition between Indonesia and Korea,” Airlangga said in a written statement.

For information, in July 2023 the Joint Committee on Economic Cooperation (JCEC) was held in Seoul. In the meeting several important results were achieved, including the cooperation in the development of nickel derivatives for electric vehicle (EV) batteries, the market access to Indonesian fruit products to South Korea.

Then, the expansion of the Lotte petrochemical factory, the construction of the Krakatau Steel – Posco steel cluster, the expansion of the Indonesian UMKM market access (small, micro and medium businesses) through South Korean e-platform Carbon Capture and Storage (CCS) technology, hydrogen/ammonia energy production, and hydropower development.

Furthermore, South Korea also conveyed the opportunity for cooperation related to the development of nuclear power plants (PLTN) through the Korea atomic Energy Research Institute (KAERI) which has developed Small Modular Technology

Reactor (SMR) which is designed is safe and produces lower carbon traces than conventional reactors. Small-scale modular nuclear reactors are an alternative solution to supply electrical energy, especially in remote or isolated areas.

“At the 3rd JCEC meeting this year is Indonesia’s turn to host, so on this occasion we invite Minister AHN to hold a JCEC meeting in July in Jakarta,” said Coordinating Minister Airlangga.

The two ministers also discussed the cooperation between the construction of the Electronic Vehicle ecosystem (EV/Electric Vehicles) through Hyundai and LG Energy Solution investments in Indonesia.

“I hope that the EV ecosystem can be deeper and of course later with Korea asking for help to talk to America so that the IRA law can open markets for products from cooperation between LG and Hyundai to enter the American market,” said Coordinating Minister Airlangga.

May 22, 2024, detikFinance

(https://finance.detik.com/energi/d-7353965/ri-korsel-jajaki-kerja-sama-nuklir-hingga-genjot-mobil-listrik)

President Joko Widodo opened the 10th World Water Forum Forum (WWF) this morning in Bali, Monday (5/20/2024). This international forum will discuss various important issues in the water sector. In this 10th World Water Forum, Indonesia had the opportunity to host. The event was attended by around 35 thousand delegates from 193 countries in the world. In addition to government officials from various parts of the world, on this occasion also attended the richest people on earth as well as SpaceX CEO, Elon Musk.

“Welcome to Bali. It is an honor for Indonesia to be trusted to host the 10th Dunai Water Forum to strengthen joint commitments and formulate concrete inclusive and sustainable water management,” Jokowi said, at the Bali International Convention Center (BICC) on Monday (5/20/2024).

Water resource management is a big homework for the world going forward. Jokowi said, of the 72% of the surface of the earth covered with water, only 1% can be accessed and used as drinking water and sanitation. Severe conditions are also projected to occur in 2050. 

Indonesia itself, as a country with a waters area reaching 60% has great potential. 

“Indonesia is rich in local wisdom of water management. Starting from along the coastline, riverbanks, to the edge of the lake. Our society has cultural values ​​to water. One of them is a subak irrigation system in Bali which was practiced since the 11th century and is recognized as a world cultural heritage , “he said.

In addition, he also exhibited culture in Balinese society where water is a glory that contains spiritual values ​​and culture that must be managed together. This is in line with this year’s WWF theme, water for joint prosperity. Jokowi explained, this theme can be interpreted into 3 basic principles, namely avoiding competition, prioritizing equity and inclusion cooperation, and supporting peace and prosperity together.

“All three can only be realized with a keyword, namely collaboration. In Indonesia Collaboration has become the key to success in the restoration of the Citarum River, as well as the development of green energy, solar panel floating in the Cirata Reservoir which is the largest in Southeast Asia and third in the world,” Jokowi said.

With the gathering of various stakeholders in Bali this time, Indonesia hopes that the world can join hands with continuity to be able to strengthen the commitment of collaboration in overcoming global challenges related to water.

In addition, the 10th World Water Forum, which was held on May 18-25, 2024, in Bali produced a new milestone. For the first time in its implementation, this forum produced a ministerial declaration to strengthen global water security. The ministerial declaration was passed at the end of the 10th WWF Ministerial Level meeting which was attended by 106 countries and 27 international organizations on Tuesday (5/21). The result was revealed by the Minister of Public Works and Public Housing (PUPR) who is also the 10th Daily Chairperson of the WWF Organizing Committee, Basuki Hadimuljono.

The first point is the establishment of a center of excellence for water and climate security in order to develop capacity, knowledge sharing & utilization of superior facilities. 

The second point of the Ministerial Declaration is to lift and encourage the issue of integrated water resource management on small islands. Although surrounded by broad waters, Indonesia is considered to still need a good management system to overcome the challenges of quality and availability of clean water. 

Third, the proposal for World Lake Day or World Lake Day which will then be brought to the United Nations (UN). The lake is a source of water supply that supports humans as well as having a social and economic function of the community so that the commemoration of World Lake Day is considered one of the main keys to preserve the lake throughout the world. 

Trade cooperation between Indonesia and the United Arab Emirates is getting stronger. This was conveyed by the President and CEO of the Dubai Chamber of Commerce, Mohammad Ali Rashed Lootah. Lootah said that the signing of the Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE-CEPA) last year had removed barriers to trade in various goods and services between the two countries.

“This is expected to increase annual non-oil bilateral trade between our countries to US$10 billion (IDR 160 trillion) in the next five years,” said Lootah at the New Horizons: Doing Business with Indonesia event in South Jakarta, Monday (6/5/ 2024).

According to him, this agreement opens up attractive opportunities for the business community and both countries and confirms Indonesia’s position as a very important and strategic market for the United Arab Emirates and Dubai.

Lootah himself said that the market between Indonesia and the United Arab Emirates had been strong for several decades. He explained that during 2023, non-oil and gas bilateral trade between the two countries will reach US$3.5 billion (IDR 56 trillion) or achieve solid growth of 7.7% compared to the previous year.

As relations improve, in June 2023, Dubai International Chamber, launched a new international representative office in Jakarta with the aim of further strengthening bilateral trade and investment relations.

“Our team in Jakarta is happy to work with the Indonesian business world to support the growth of bilateral trade and investment, taking advantage of the CEPA agreement between the United Arab Emirates and Indonesia to achieve significant export and import expansion between the two markets,” he explained.

He said that the international representative office in Jakarta has several missions and focuses, namely building strong relationships with key public and private sector stakeholders, supporting Dubai-based companies that want to expand to Indonesia, and helping the Indonesian business world to enter the US market. Arab Emirates.

“By the end of 2023, a total of 99 Indonesian companies have registered as members of the Dubai Chamber, as many as 15 more companies joined us in the first quarter of this year, bringing the total to 114,” he explained.

“Reflecting the growing interest in Dubai among the Indonesian business community, we are confident that our office in Jakarta will continue to support and enhance the strategic bilateral trade and investment relationship between the two countries.”

Apart from that, the President and CEO of the Dubai Chamber of Commerce, Mohammad Ali Rashed Lootah, said that there was a possibility that companies from the United Arab Emirates would be interested in investing in Indonesia’s Archipelago Capital (IKN).

“As soon as investment opportunities are presented to us through investment promotion agencies in Indonesia, we will work with them (IKN) to introduce the private sector from the United Arab Emirates,” he said.

“Such opportunities are open to our private sector in Dubai, and we hope to encourage our companies to play a very important and important role in these investment opportunities,” he added.

May 6, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20240506134425-4-536060/ri-uea-makin-mesra-targetkan-perdagangan-non-minyak-rp160-t)

(https://www.cnbcindonesia.com/news/20240506153950-4-536119/bisnis-uea-ri-makin-mesra-dubai-bakal-investasi-di-ikn)

PT Thorcon Power Indonesia, a nuclear reactor company from the United States, is targeting the construction of the first nuclear power plant in Indonesia which can operate in 2032 with an investment of IDR 17 trillion. This was as revealed by the Director of TPI Operations, Bob S. Effendi. He said that his party planned the construction of the first nuclear power plant in Indonesia with a capacity of 500 Mega Watt (MW) with an investment of IDR 17 trillion. He claimed, the PLTN development plan had been communicated by his party to the government in this case the Ministry of Energy and Mineral Resources to the Coordinating Ministry for Maritime Affairs and Investment.

“So, we plan to build a nuclear power plant which hopes to be the first and at this time we have also communicated to the ESDM National Energy Council and maybe there is also Mr. Rachmat Kaimuddin as well as the Marves Ministry. We will build this 500 MW of the Nuclear Power Plant with Investing around IDR 17 trillion, “Bob told CNBC Indonesia in the Energy Corner program, Tuesday (4/30/2024).

To be able to realize the plan, Bob said that his party was currently preparing a proposal that would later be submitted to the government to be able to support the development of the first domestic nuclear power plant. Bob said that his party planned the construction of a nuclear power plant with a trillion of rupiah investment value to be built in Bangka Belitung Province, which itself was targeting the project to be able to operate in 2030.

“We hope that we will place it in Bangka Belitung, in Bangka Belitung Province and in 2030 we can operate. And we are sure this can be a practical solution for energy transition, namely, to stop coal steam power plants,” he said.

Indeed, Indonesia is currently encouraging the energy transition program to switch to new renewable energy sources to rend the position of coal as primary energy in Indonesia. Bob rate, nuclear through nuclear power plants can replace this position with the characteristics of the availability of qualified energy such as coal.

According to his calculations, with the investment value of the first nuclear power plant which is also expected to be the first nuclear power plant in Indonesia, an investment of IDR 17 trillion can produce production and development calculations of up to US $ 1,000 per kilo Watt (KW). Later, the selling price of US $ 6 cents is considered to be profitable. That way, he considered that being able to produce ‘clean’ electricity could also be an option for the government and for PT PLN (Persero) to provide electricity sources from new renewable energy in Indonesia.

April 30, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20240430121325-4-534601/perusahaan-as-mau-bangun-nuklir-di-ri-senilai-rp-17-triliun)

The largest industrial trade exhibition in the world, Hannover Messe, will be held again in 2024, precisely in hall 4 at the Hannover Exhibition Center, Lower Saxony, Germany on April 22-26, 2024. Indonesia is not left behind in participating even though the pavilion built is much smaller than the previous year. Understandably, at the Hannover Messe 2023 event, Indonesia became the Official Partner Country, so that at last year’s event there was a lot of effort in bringing in local partners to showcase their products and technology, even President Joko Widodo participated.

Minister of Industry Agus Gumiwang Kartasasmita said that the investment target that will be pursued in Indonesia’s participation in Hannover 2024 is IDR 20 trillion. Meanwhile, with the pavilion area reaching 10 times the size in 2023, Indonesia’s investment target is ‘only’ IDR 30 trillion. So, it should be much more effective in comparison to the area of the pavilion and the targets set.

“Last year was special because we became the Official Partner Country, so last year’s target was IDR 30 trillion. However, this year, just opening the Indonesian pavilion, it is already approaching IDR 5 trillion because there was a signing of around US$ 350 million and in the future there will be business forums such as “matching business and introducing Indonesian needs and industrial products that we can display and sell at Hannover Messe,” explained Agus after opening the Indonesian pavilion in hall 4 of Hannover Messe 2024.

Also present at the event were Commission VII DPR RI Maman Abdurrahman and Dony Maryadi Oekon, Secretary General of the Ministry of Industry Eko S.A. Cahyanto, and Indonesian Ambassador to Germany Arief Havas Oegroseno.

“Most of the investment targets this year will focus on sustainability, both in the energy and industrial sectors, how technology will make industrial products more efficient. As long as the country is free from anywhere, the important thing is to bring funds to Indonesia, and we can also add value then opens up job opportunities,” continued Agus.

“Because if Indonesia is left behind in the industrial world, the impact will have other implications. So, Indonesia’s presence is not only investment, but also Indonesia’s involvement with the world of industrial technology. So, in the end, even though we agree in the end, namely investment. Our presence at Commission VII monitors “for these targets to be achieved. I think the key word is target (executed investment), not just how much cooperation MoUs are achieved,” he concluded.

April 23, 2024, detikInet

(https://finance.detik.com/industri/d-7305857/indonesia-bidik-investasi-rp-20-triliun-dari-hannover-messe-2024)

Although not yet built an assembly factory in Indonesia, Apple apparently has reached an investment of IDR 1.6 trillion to provide the Apple Developer Academy. Noted, currently the Apple Developer Academy which has been operating there are four spreads across Tangerang, Batam and Surabaya. Meanwhile, the arrival of Apple Tim Cook CEO to Indonesia to inaugurate the 4th Apple Developer Academy which is located in Bali.

“The investment value is IDR 1.2 trillion for three academies. If you add another one in Bali, it will be IDR 1.6 trillion,” said Minister of Communication and Information Budi Arie Setiadi in Jakarta, Wednesday (17/4/2024).

Apple Developer Academy is a program that was developed directly by Apple. This is to improve the skills for those who are interested in the world of coding and digital in a professional manner. Meanwhile, the first Apple Developer Academy was opened in Brazil, this HR talent development program has developed to more locations worldwide, including Korea, Indonesia, Saudi Arabia, Italy, and the United States.

For information, Tim Cook has met with President Joko Widodo at the Merdeka Palace, Jakarta, today. In the meeting that lasted for one hour, improving the quality of human resources was considered important, especially in the current digital era.

“So, this increase in human resources is also important for us, for our nation,” he said.

Unfortunately, Apple has not revealed the schedule for the opening of the academy in Bali. But it is certain that the Bali campus will receive registration not only from Indonesia, but from all over the world, regardless of the educational background or programming experience.

This technology giant from Cupertino has opened an academy in Surabaya and Batam. Apple Developer Academy which was attended by more than 2,000 prospective developers. As many as 90% of graduates have gotten jobs in various sectors ranging from education, e-commerce, transportation, sustainability, and more.

The nine-month program from this academy includes the basics of programming, as well as other topics such as project design, marketing, and management, which will equip participants with a series of capabilities needed to become entrepreneurs and world-class developers.

Apple Developer Academy in Indonesia receives participants from various personal and professional backgrounds. They come from more than 90 cities throughout Indonesia, with an age range between 18 to 50 years, each of which brought new ideas and involved their life experiences in designing applications and making business plans.

April 17, 2024, detikInet

(https://inet.detik.com/cyberlife/d-7296329/nilai-investasi-apple-di-indonesia-tembus-rp-1-6-triliun)

Central banks and finance ministries in ASEAN countries have agreed to continue the three priority agendas of Indonesia’s previous Chairmanship in ASEAN 2023. This agreement emerged at the ASEAN Finance Ministers and Central Bank Governors Meeting (AFMGM). The 11th AFMGM in Luang Prabang, Laos from April 2 to 5 is an important forum for high-level dialogue on cooperation between central banks and finance ministries in the region, in order to strengthen solidarity between ASEAN countries on the path to financial integration. The Bank of Lao PDR (BOL) and Lao PDR Ministry of Finance are the organizers of this meeting.

Representatives from 10 ASEAN member countries were present, namely Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. The Indonesian delegation was led by the Deputy Governor of Bank Indonesia, Filianingsih Hendarta. Timor Leste was also present as an observer.

According to the Head of the Communications Department of Bank Indonesia (BI), Erwin Haryono, Sunday (7/4/2024), the three agendas initiated by Indonesia in ASEAN in 2023 are continuing, namely:

1. Expansion of regional payment connectivity cooperation or Regional Payment Connectivity (RPC). The RPC initiated by Bank Indonesia to facilitate smooth and safe cross-border payments continues to develop under the 2024 ASEAN Laos Chairmanship. This is indicated by the continued increase in countries interested in joining regional payment connectivity cooperation. On April 3, 2024, the MoU signing of the RPC was carried out which marked the joining of Laos as the 8th country to become a member of the RPC cooperation. Currently, the countries that have joined the RPC collaboration are Indonesia, Singapore, the Philippines, Thailand, Malaysia, Vietnam, Brunei and Laos.

2. Use of local currency in cross-border transactions in ASEAN or ASEAN Local Currency Transaction (LCT). In the series of 11th AFMGM meetings, the ASEAN LCT framework, the formulation of which was initiated by Bank Indonesia, succeeded in getting full support from ASEAN countries. This is expected to encourage increased use of local currency in cross-border payment transactions so that it can be beneficial for business actors to reduce trade transaction costs, encourage financial market deepening in local currency, and reduce exposure to exchange rate risk.

3. Indonesia’s efforts to improve the mandate of the ASEAN Working Committee. This initiative aims to make the ASEAN working committee more relevant to developing economic conditions, encourage innovation, increase adaptability, strengthen regional cooperation, and achieve integration and financial stability.

At the 11th AFMGM, Ministers and the Governor of the Central Bank approved the High Level Guidelines and Terms of Reference for Adjusting the Mandate of the ASEAN Working Committee. Currently two working committees have completed adjustments to their mandate, namely the working committee that handles the development of the payment system (Working Committee-Payment and Settlement System/WC-PSS) and the development of capital account liberalization (Working Committee-Capital Account Liberalization/WC-CAL). Furthermore, other working committees related to strengthening financial inclusion, financial market development, trade liberalization and banking integration have started and will continue the process of refining their mandates.

April 7, 2024, detikFinance

(https://finance.detik.com/moneter/d-7283925/bi-dan-bank-sentral-se-asean-dorong-transaksi-mata-uang-lokal-lintas-kawasan)