Tag: invest in Indonesia

Indonesia canceled to host the U-20 World Cup 2023. This was conveyed by FIFA through its official website on Wednesday (29/3) yesterday. This suddenly made football lovers in Indonesia disappointed. In fact, this is one of the international events that have been awaited since 2021 but was forced to be postponed to 2023 because of the Covid-19 Pandemic. Indonesia itself has also made all preparations for the event. The trillions of rupiah have been disbursed for the big event.

According to Yoyok Sukawi, PSSI Executive Committee, said that the Ministry of Youth and Sports (Kemenpora) requested a funding of around IDR 400 billion for the implementation of the 2021 World Cup U-20 which was postponed to the U-20 2023 World Cup. Then, in June 2022, additional Funds of IDR 3 trillion, which amounting to IDR 500 billion is used in preparation for the U-20 World Cup.

In addition, the Ministry of Public Works and Public Housing (PUPR) in 2020 said that the stadium renovation project for the U-20 World Cup requires funds of around IDR 400 billion with a scheme in the plural contract (MYC), so the allocation was carried out in 2020 and 2021. And this year, the Ministry of PUPR has disbursed funds of IDR 175 billion for the revitalization of the stadium that will be used for the U-20 2023 World Cup event. Spend around IDR 1.4 trillion.

National tourism observer, Taufan Rahmadi said in the tourism sector, Indonesia would lose 50 thousand tourists who watched the event. Indonesia suffered a big loss by failing to host the U-20 World Cup. Especially in terms of tourism, because it is certain that foreign tourists who will watch the event will not come to Indonesia.

With the cancellation of the U-20 World Cup in Indonesia, the potential loss will also be felt by the hospitality. The cancellation of the arrival of 50,000 foreign tourists will certainly make hotels in the city that became the U-20 World Cup venue did not get income. The potential loss from the failure of Indonesia to hold the U-20 World Cup will also spread and present domino effects to other industries such as culinary, MSMEs and transportation which will certainly lose the potential income from the world class event.

“With the failure to be the host of the U-20 World Cup, Indonesia will lose the potential of foreign exchange, both at the center or in the area of the number of spectators who are expected to reach more than 1.2 million people,” concluded Taufan.

March 30, 2023, detikFinance and detikTravel

(https://travel.detik.com/travel-news/d-6646926/gila-gagal-gelar-piala-dunia-u-20-indonesia-bakal-kehilangan-50-ribu-wisman)

(https://finance.detik.com/berita-ekonomi-bisnis/d-6647435/menghitung-boncosnya-ri-dari-batalnya-jadi-tuan-rumah-piala-dunia-u-20)

PT Freeport Indonesia is speeding up the construction of a purification facility (smelter) in Gresik, East Java. This smelter is planned to start operating in May 2024. The smelter project is located in the Java Integrated Industrial and Port Estate (JIIPE) industrial area. The Freeport smelter project occupies an area of 100 hectares (ha). The capital expenditure or capital expenditure for this project is US$ 3 billion or around IDR 45 trillion (exchange rate of IDR 15,000). The budget includes the construction of precious metal refinery (PMR) facilities. Some products will be produced from these facilities, among others, copper cathodes, gold and silver bars, and Platinum Group Metals (PGM). The following facts:

1. Production of 52 tons of gold bars per year

PT Freeport Indonesia’s Technical Affairs and Smelting Project Support Manager, Erika Silva said the smelter will produce 600,000 tons per year of copper cathodes. Then, the smelter will produce a side product in the form of 6,000 tons of anode mud per year. The anode mud is then purified through PMR which produces several products such as 52 tons of gold, 210 tons silver, 0.03 tons platinum, 0.375 tons paladium, 285 tons selenium, 220 tons bismut, and 2,200 tons of lead.

“The gold bar product is around 50 tons per year, the company is around 200 tons,” he said at Jiipe Gresik, East Java, Wednesday (3/29/2023).

2. Will be purchased by PT Aneka Tambang Tbk (Antam)

For gold, his party is conducting a discussion with PT Aneka Tambang Tbk (Antam) to absorb the product. Then, it will also conduct explorators for bullion banks or gold banks.

“For the gold that will be produced by the PMR, it is also being intense discussion with Antam to offer our gold take. “Then Bullion Bank, Bullion Bank, this plan will be planned from the Coordinating Ministry for Economic Affairs whether later we will cooperate with Bank Indonesia, we still do not know in detail, but this is also still being explored,” he explained.

3. Smelter progress 56%

The progress of the construction of copper and PMR smelters reached 56.5% as of February 2023. The project was targeted to be completed in December 2023.

“In terms of progress progress, our physical total progress is at 56.5% of the 56.5% plan means we match the target,” he said. Pre commissioning and commissioning were carried out until the end of May 2024. Then, the smelter was targeted to start operations at the end of May 2024.

“Starting in May we will be run up until hopefully it will be fully operational at the end of 2024 or early 2025,” he said.

March 30, 2023, detikFinance

(https://finance.detik.com/energi/d-6644642/freeport-kebut-proyek-smelter-rp-45-t-di-gresik-begini-penampakannya)

(https://finance.detik.com/energi/d-6645486/smelter-freeport-bakal-produksi-emas-batangan-52-tontahun-ini-3-faktanya)

PT Telkom Indonesia (Persero) Tbk managed to close the 2022 financial year with a satisfactory performance. The issuer with the ticker code TLKM succeeded in posting a net operating profit of IDR 25.86 trillion, a growth of 7.7% compared to the same period the previous year. The profit earned was supported by consolidated revenue, which was recorded at IDR 147.31 trillion and grew by 2.9% compared to the same period last year. Meanwhile, the company’s EBITDA was recorded at IDR 78.99 trillion, or 4.3% YoY. “Thank God, Telkom can close 2022 with quite satisfactory results, both from the aspect of financial and operational performance. The achievement of this performance is the output of the company Telkom, Ririek Adriansyah in a written statement, Saturday (3/26/2023).

In the mobile segment, Telkomsel, as a subsidiary of Telkom, managed to record revenue of IDR 89.04 trillion, growing 1.8% from the same period last year. Digital Business is a contributor to performance growth, with a contribution of 81.9% of total revenue. This segment grew positively by 6.9% YoY to IDR 72.93 trillion compared to the same period in 2021. Telkomsel served 156.8 million customers with payload data that grew positively up to 18.7% YoY to 16,426,853 TB and payload consumption touching 11,962 MB per data service user or growing 16.1% YoY. Telkomsel officially became the winner of the 2.1 GHz frequency auction from the Ministry of Communication and Informatics in November 2022.

            In the consumer segment, IndiHome’s revenue reached IDR 28.0 trillion, or 6.4% growth from the same period last year, with a contribution of 19.0% of the company’s total income and EBITDA, which was stable in the range of 50%. The 90% of Indihome’s revenue is contributed by its customers and the rest of the enterprise segment. IndiHome closed 2022 with customer growth of 7.1% from the end of last year to 9.2 million customers, 63% of whom were dual-play customers and 37% were triple-play customers.

            Meanwhile, the wholesale and international segment revenue grew 8.3% yoy to IDR 15.4 trillion, contributed growth in the international wholesale sound service business and digital infrastructure business. In the tower business, Mitratel, as a subsidiary of Telkom, also successfully confirmed its position as the largest tower company in Southeast Asia based on telecommunications tower ownership, through ownership of 35,418 tower units with a tenancy ratio of 1.47x. Mitratel posted an income of IDR 7.7 trillion, which grew 12.5% yoy, which was mainly driven by the acquisition of tower rental. EBITDA and company net profit throughout 2022 grew positively by 18.5% and 29.3%, respectively.

March 26, 2023, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20230326114700-17-424535/telkom-sukses-cetak-laba-bersih-operasi-rp-2586-t-di-2022)

A number of Indonesian energy companies are now planning to build a Solar Power Plant (PLTS), apart from contributing to encouraging new renewable energy (EBT) in the country, this is also an opportunity for companies to be able to export their electricity to Singapore. This is because the Government of Singapore has submitted a request for electricity from Indonesia. Singapore said that electricity that can be imported from Indonesia must come from new renewable energy sources, one of which is solar power plants. Not only are they planning to build PLTS, but a number of these Indonesian companies are even preparing to build a solar panel industry in the country. This is in accordance with the instructions of the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan. Luhut said that Indonesian companies could export electricity to Singapore, as long as the domestic solar panel industry was built first.

            “Regarding them (Singapore), there is a solar panel export from Indonesia, and Singapore. But we don’t want to be like that, we want to end to end. We must build a diesel panel here for the industry, then the battery, and so on. Then we export it to Singapore, so it’s win-win, “he said, quoted on Thursday (03/16/2023).

            As a follow-up to the Coordinating Minister for Luhut’s order, a number of Indonesian energy companies agreed to sign a memorandum of understanding (MoU) for the development of new, renewable energy (EBT), and the supply chain for solar panels or Solar Photovoltaic (PV) and Battery Energy Storage Systems ( SPEB) in Indonesia. The signing of this MoU also involved several PV and battery manufacturers (Original Equipment Manufacturer/OEM).

The Indonesian energy companies that signed the MoU include PT Adaro Clean Energy Indonesia (Adaro Green), PT Medco Power Indonesia (Medco Power), and PT Energi Baru TBS (New Energi). The three Indonesian energy companies also signed an MoU with PV and Battery Manufacturing manufacturers (OEMs) from home and abroad, including PT Utomo Juragan Road Surya Indonesia, Longi Solar Technology Co. Ltd., Sungrow Power Supply Co. Ltd., PT Huawei Tech Investment, and Rect Battero Energy Co. Ltd.

This cooperation is part of the company’s commitment to support the government in achieving the Net Zero Emission target through the acceleration of the development of the National Solar Panel Industry for the development of EBT in Indonesia.

Previously, Singapore Prime Minister Lee Hsien Loong, in the Joint Press Statement with President Joko Widodo (Jokowi) in Jakarta on Thursday (03/16/2023), conveyed the issue of sustainability, where there was a lot of potential in the green economy sector. Thus, Indonesia and Singapore signed a collaboration on renewable energy. It will also strengthen energy infrastructure, energy transitions, and energy security for Singapore, including supporting regional initiatives such as ASEAN electricity networks.

March 17, 2023, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20230317121023-4-422553/dikawal-luhut-perusahaan-ri-siap-ekspor-listrik-ke-singapura)

PT Toyota Motor Manufacturing Indonesia (TMMIN) made history by conducting the first export of hybrid cars. Not only that, when it comes to electrification vehicles, TMMIN is also the first to export. Previously, cars exported by TMMIN and other manufacturers to foreign countries still carried conventional fuel. The Toyota Kijang Innova Zenix hybrid adds to the long list of Toyota cars ‘made’ in Indonesia that has penetrated foreign countries. The electrified car made in Karawang has finally penetrated the international market.
“Electrified vehicles are part of Toyota Indonesia’s export expansion target going forward, starting with exports of locally produced hybrid vehicles. Today, the first export shipment of hybrid vehicles of the Innova Zenix type was realized,” said Minister of Industry Agus Gumiwang Kartasasmita in his official statement.
For the first phase, the Kijang Innova Zenix ‘made’ in Karawang will penetrate the Middle East and South America. In 2023, TMMIN targets to export more than 8,000 Kijang Innova Zenix with a composition of 30% HEV type and 70% internal combustion engine (ICE) type to countries in Asia, Africa, Latin America, and the Middle East. It is hoped that Innova Zenix’s exports will continue to increase from year to year with a target of 17,000 units in 2025 for hybrid and conventional types.
“The first export of the Kijang Innova Zenix would not have been possible without the full support of the Government of Indonesia, strong partnerships from our entire supply chain including small and medium industries (IKM), and community support. Hopefully, we can contribute even more so that we can together grow and increase global competitiveness to meet the development of the Indonesian and global automotive industry,” said TMMIN President Director Warih Andang Tjahjono.
Jokowi appreciates that manufacturers can increase sales of cars and motorcycles in the country. However, according to Jokowi, the increase in sales has exacerbated the congestion. Reflecting on this fact, Jokowi encouraged car and motorcycle manufacturers in Indonesia to strengthen the national export market. Because, by doing so, sales will remain large, but will not have an impact on traffic jams.
“Therefore, the automotive industry will be encouraged to enter the export market. The export market will also add value to foreign exchange and continue to be driven by a large ecosystem from upstream to downstream for electric cars,” Jokowi said.

February 21, 2023, detikOto
(https://oto.detik.com/mobil/d-6580441/sejarah-ri-ekspor-kendaraan-listrik-kirim-innova-zenix-hybrid-ke-pasar-internasional)

Indonesia’s economy grew last year at the fastest pace since 2013, marking the highest economic output since President Joko “Jokowi” Widodo took office. The country’s gross domestic product (GDP) rose by 5.31 percent in 2022, handily beating the preceding year’s 3.71 percent but failing to match the 2013 figure of 5.56 percent, Statistics Indonesia (BPS) reported on Monday. Economic output in the fourth quarter of last year increased by 5.01 percent from the equivalent period of 2021, much lower than the year-on-year (YoY) increase of 5.72 percent seen in the third quarter. The statistics agency attributed the slowdown to weaker purchasing power as a result of increased inflation in last year’s final quarter.

“Indonesia experienced solid economic growth in 2022,” BPS head Margo Yuwono told reporters in a press conference called to publish the latest GDP report.

The World Bank and the International Monetary Fund had expected Indonesia’s 2022 GDP growth to come in at 5.2 and 5.3 percent, respectively, while the Asian Development Bank had a bullish forecast of 5.4 percent. Household spending, long the backbone of the domestic economy, remains the main source of growth, contributing 2.61 percentage points (ppt) to the overall GDP growth rate.

This growth was driven by the improvement of community mobility along with the high rates of COVID-19 infections and removal of PPKM. Gross Domestic Product (GDP) based on valid prices reached Rp 5,114.0 trillion or based on constant 2010 prices reached Rp 2,988.6 trillion. Meanwhile, economic growth in the IV-2022 quarter was recorded at 5.01 percent or grew 0.36 percent.

The Head of the Central Statistics Agency (BPS) said that the Indonesian economy had returned to the Prapandemi level. This was supported by the purchasing power of the people last year which was well maintained and was also supported by the activities and mobility of the people who had recovered.

“The annual economic growth trend still grows 5% despite slowing down from the third quarter of 2022. This shows that the Indonesian economy grew solidly,” he said in a press conference on the BPS release, Monday (2/6/2023).

Indonesia’s economic growth is in accordance with the estimates of President Joko Widodo or Jokowi. The Head of State is optimistic that Indonesia’s economic growth in 2022 will reach 5.3% on an annual basis (year on year/yoy). The projection of Indonesia’s economic growth which reached 5.3% will place the Indonesian economy in the 1st rank among other G20 countries. For the record, the Indonesian economy grew 5.72 (yoy) in the third quarter of 2022 and 5.45% (yoy) in the second quarter of 2022. Meanwhile, the Indonesian market consensus of 12 institutions also estimated economic growth to reach 5.03% (yoy) and grew 0.49% compared to the previous quarter (Quarter to Quarter/QTQ).

February 6, 2023, The Jakarta Post, CNBC Indonesia

(https://www.thejakartapost.com/business/2023/02/06/indonesias-gdp-growth-reaches-decade-high.html)

(https://www.cnbcindonesia.com/news/20230206104809-4-411262/breaking-news-ekonomi-ri-2022-tumbuh-531)

The Chinese contractor will build a 700 meter long bridge in Pontianak. The construction of this bridge was initiated by a local company PT Kapuas Berkah Divine in collaboration with the Shanghai China State Construction Development Development Contractor. Director of Kapuas Berkah Divine Karsono said that this project would be worked on by the government’s cooperation scheme with a business entity alias PPP. The construction is claimed without using the APBN and APBD. He himself prepared an investment fund of up to Rp 1 trillion more to build a bridge that would be named the Garuda Bridge. The bridge connects Jalan Bardan and Siantan.

This bridge was built with a total stretch of 700 meters including the arrangement of the road on the land side, the main span itself along 365 meters. The width of the bridge will be made as long as 30 meters. In addition, this bridge is also claimed to have advantages in the form of hydroelectric power plant features. It will utilize the Kapuas River flow under the bridge to generate the electricity needed for the bridge. According to him, this was the first time done in Indonesia.

“The advantage is to use hydropower technology. Using a tidal water generating technology, this will be the first bridge with independent power in Indonesia, not using PLN electricity but river currents. For example for lights and so forth,” said Karsono.

The plan, this bridge is targeted to be ground breaking in March 2023. His party is still waiting for the Ministry of Public Works and Public Works’ recommendations to carry out development. If all according to plan, if in March the ground breaking can be carried out, it will carry out the construction of a bridge for 14 months.

“If March can already ground breaking, maybe in mid 2024, in June, the construction can be completed,” concluded Karsono.

Pontianak Mayor Edi Rusdi Kamtono explained that this bridge was very much needed to support the accessibility of the Pontianak city center towards the northern region. So far, mobility still relies on a ferry that takes a long time.

February 2, 2023, detikFinance

(https://finance.detik.com/infrastruktur/d-6547423/china-garap-jembatan-di-ri-nilainya-rp-1-t-ini-lokasinya)