Tag: invest in Indonesia

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Indonesian Online Transactions of IDR 401 Trillion, Ministry of Trade Wants to Digitize 250 Thousand MSMEs

Minister of Trade Zulkifli Hasan (Zulhas) is targeting 250,000 small, micro and medium enterprises (MSMEs) to be digitized through electronic/e-commerce (e-commerce) platforms. To that end, the Ministry of Trade is strengthening collaboration with GoTo (Gojek and Tokopedia). It was noted that throughout 2021, online shopping was able to generate transactions of up to IDR 401 trillion. He hopes that with the digitization of MSMEs, especially people’s market traders, the number of transactions can continue to increase.

“To achieve the target of 250,000 digitized MSMEs, we are ready to continue to work with PT GoTo. I believe GoTo can play an important role as a digital platform that integrates on-demand services through entities within the company,” Zulhas said in a written statement, Thursday ( 27/10/2022). He conveyed this at the Advanced Digital Conference: Market Digitization Via the GoTo Ecosystem today, Thursday (27/10) in Jakarta. This event was held by Gojek, Tokopedia, and Goto Financial.

Digitizing the people’s market is one of the tasks given by President Joko Widodo to the Ministry of Trade. Because, this encourages people’s market traders to compete with traders who sell online.

Zulhas explained that his party is collaborating with various market locations/ride hailing to help the merchants’ onboarding process into the application. One of the things that has been done is collaborating with Tokopedia to push the market into the application. It is known, currently the program has been running in 10 markets throughout Indonesia.

Due to the COVID-19 pandemic, people’s spending patterns in the era of e-commerce development have changed. These changes increase the increase in consumers who shop through e-commerce. In 2021, consumers who shopped through e-commerce were recorded at 25% from the previous year which was only 11%.

October 27, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6373272/transaksi-online-ri-rp-401-t-kemendag-mau-digitalkan-250-ribu-umkm)

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Instant Noodles to Indonesian Coffee ‘Fly’ to Poland

The government is boosting exports to various countries. Central and Eastern Europe can be a potential market for Indonesian export products, with Poland being the main entry point. Poland has great potential to channel export products from Indonesia to the European Union, Western and Southern Europe, and Central Asia. Throughout 2021, Indonesia’s export value will reach US$ 1.78 billion to the region, with Poland being the highest export destination.

This data is contained in the book Road to Poland which was launched at the Indonesia Central and Eastern Europe (INACEE) Business Forum 2022 event on October 19, 2022, with the theme ‘Connecting Businesses’. This forum facilitates the signing of business agreements between Indonesian business actors and partners in several Central and Eastern European countries.

The book Road to Poland reviews the opportunities, developments and projections of the Polish economy amidst the dynamics of global trade developments, including with Indonesia. This book reviews the competitiveness of Indonesia’s leading export products to Poland, including the potential for export development and cooperation or business opportunities that can be increased between the two countries.

“This is a form of adaptation in finding solutions to overcome today’s world challenges, in an effort to increase cooperation and collaboration in the economy, trade, investment and other fields between Indonesia and partner countries, especially in the Central and Eastern Europe region,” said the Head of the Division. Indonesia Eximbank Institute (IEB Institute) LPEI Rini Satriani, written Thursday (27/10/2022).

Poland is Indonesia’s largest export destination for Central and Eastern Europe with a total export value of US$ 654.6 million in 2021, up 48.40% (YoY) and January-August 2022 of US$ 662.30, up 54.13% (YoY). Some Indonesian products that are in demand in Poland include instant noodles, coffee candy, batik, furniture, coffee and palm oil. Entering new markets is a challenge for exporters.

October 27, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6371540/mi-instan-sampai-kopi-asal-ri-terbang-ke-polandia)

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Indonesia to Rank Fourth for Airline Passengers in 2040

Airports Council International (ACI) Asia-Pacific says Indonesia is poised to become one of the fastest-growing markets for the airline industry despite the current global economic slowdown and relatively slow growth in the Asia-Pacific region. ACI director general Stefano Baronci said that, according to an ACI projection, Indonesia would rank fourth in the world in terms of passenger traffic by 2040.

“Indonesia is seen to be in a better position than other countries in the region to see its passenger traffic bounce back to the pre-pandemic levels,” Baronci told on Tuesday.

He said he expected Indonesia to grow much faster than other countries in the region at approximately 11 percent annually up to 2040, given the archipelagic nation’s geography and its economic growth forecast. ACI forecasts indicate that close to 19.7 billion passengers are expected to traverse the world’s airports in 2040, more than double the 9 billion passengers recorded in 2019. The Asia-Pacific region is expected to have approximately 8.9 billion passengers by 2040.

“So, what [does this mean for] Indonesia? [Stakeholders need to] improve predictability and certainty,” he said, adding that every country had its own capacity and level of maturity to find a way to reach that objective.

In Indonesia’s case, he referred to the implementation of the airport collaborative decision-making (ACDM) process currently taking place in Jakarta as a way to coordinate ground operations and air traffic. The ACDM is a process in which the stakeholders of operations, such as airport operators and air traffic controllers share information to improve policies, planning, real-time coordination as well as decisions regarding operations.

October 21, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/10/21/indonesia-to-rank-fourth-for-airline-passengers-in-2040.html?)

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Indonesia’s Economy Still Strong, Capital Market Still Promising

Danareksa Investment Management’s chief investment officer, Herman Tjahjadi, said that the Indonesian capital market is still promising with foreign investors who have entered the JCI stock market of Rp70 trillion since the beginning of the year. This means that global investors still view positively the Indonesian economy which continues to have the potential to grow.
“Towards entering the new year (the end of the year), it is likely that Indonesia’s GDP growth will still be positive, which is around 5.20%, this is good compared to other countries,” he said at the 2022 CNBC Indonesia Awards ‘The Best Asset Management’, Friday (14/10/2022).
He added, for 2023 it is estimated that Indonesia’s GDP will grow at the level of 5-5.1%. Even though there is an indication of a decline compared to this year, this figure is still very good compared to other countries. When global investors see that Indonesia’s economic growth is still positive, investment interest will not disappear.
Another factor that becomes the criteria for global and domestic investors to enter the country’s capital market, one of which is currency. As is known, the Rupiah depreciated by 7%, but according to him, when compared to other developing country currencies, Indonesia is still considered to be better. Furthermore, another factor is Indonesia’s inflation rate, which according to him is better than other countries, which is only around 5.59%.
“Even the United States is now 8.2%. These three factors (GDP, Currency, and Inflation) are relatively better than other countries,” said Herman.

October 14, 2022, CNBC Indonesia
(https://www.cnbcindonesia.com/market/20221014202250-17-379916/ekonomi-ri-masih-kuat-pasar-modal-masih-menjanjikan

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Indonesia’s Manufacturing PMI at Eight-Month High

Indonesian factories are in good shape as a key forward-looking indicator that has reached the highest level in eight months thanks to strong order books. According to London-based data firm IHS Markit, part of S&P Global, Indonesia’s manufacturing purchasing managers’ index (PMI) rose to 53.7 in September. Up 2 points from August, that is the highest reading since January for the index, which measures factory activity based on a survey of 400 firms.
“Latest survey data was consistent with the strongest improvement in the health of Indonesia’s manufacturing sector since January,” S&P Global economist Laura Denman said in a press statement on Monday.
Indonesia’s manufacturing PMI has been on a steady upward trend since a low point in May, when it tanked to 50.8 points, though still signifying an expansion in activity by remaining above the threshold of 50 points. Indonesia’s performance was slightly above the ASEAN headline PMI of 53.5 points and the second-best among emerging economies of the region, trailing only behind Thailand’s 55.7 points. The Philippines and Vietnam followed Indonesia with 52.9 points and 52.5 points, respectively, while Malaysia’s manufacturing PMI fell into contraction territory with a reading of 49.1 points, down from 50.3 points in August and the lowest figure this year.
In response to the latest manufacturing PMI readings, Coordinating Economic Minister Airlangga Hartarto said average manufacturing utilization had increased since August, which included expansion in the motor-vehicle industry and the food-processing industry. “The expansion reflects a consistent recovery in the manufacturing industry, at least in the last few months, and a domestic economic recovery after the [COVID-19] pandemic,” Airlangga said on Monday.
Industry Minister Agus Gumiwang said that a production increase in September was visible in the electronics industry, which had seen significant laptop production due to government procurement, and in the non-metal mineral industry, with huge demand for cement, ceramics and glass due to public infrastructure and private-property construction. “Production activity played a key role in the higher readings in the index, which are supported by high domestic demand,” Agus said on Monday.

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Indonesia Exports Refrigerators to Cambodia to Japan Rp 5 Trillion

Indonesia exports refrigerators to Cambodia through PT Panasonic Manufacturing Indonesia (PMI). This is related to the import substitution program and activities to increase exports of domestic products.
“I convey my highest appreciation to all ranks of Panasonic Manufacturing Indonesia for their support for the government’s efforts to encourage export activities of the electronics industry,” said Industry Minister Agus Gumiwang in a statement, Monday (26/9/2022).
According to Agus, this effort is a clear proof that the synergy between the government and industry players is going well. “The receipt of this Panasonic refrigerator product proves that the quality of electronic products made by Indonesian children has been recognized by the international market,” he added.
Refrigerator is one product that has a high export value in Indonesia. In 2021, the refrigerator export value will be US$ 374.4 million or Rp5.65 trillion (exchange rate of Rp15,014) of which 40% comes from the contribution of PT PMI which has exported refrigerators to Asian and Middle East markets.
Cambodia is the 8th country for PT PMI in terms of refrigerator export destinations besides Japan, Hong Kong, Malaysia, Myanmar, UAE, Kuwait and Oman. Apart from refrigerators, PT PMI has also exported other electronic products such as audio products, water pumps and washing machines.

September26, 2022, detikFinance
(https://finance.detik.com/industri/d-6312873/ri-ekspor-kulkas-ke-kamboja-hingga-jepang-rp-5-t)

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Jeju Air to Open Direct Manado-South Korea Flight in Tourism Bid

South Korea’s Jeju Air has inked a deal with the North Sulawesi administration to offer direct flights between Manado and South Korea. Jeju Air CEO Kim E-bae and North Sulawesi Governor Olly Dondokambey signed the agreement at the Indonesian ambassador’s residence in Seoul on Friday.
“I’m very grateful because we are sure that our company can help with Korean and Indonesian economic development. We will try our best to open direct flights to Manado, Bali, Lombok, Jakarta and Yogyakarta,” Kim said, noting that such flights were in the pipeline.
Olly said North Sulawesi was well situated for the deal, being only five hours by plane from South Korea, and he expressed hope that the flight route could boost tourism for both North Sulawesi and South Korea.
“What makes North Sulawesi ideal is how relatively close it is to South Korea. North Sulawesi’s location and geostrategy offer benefits for water transportation to and from Bitung Harbor, which is not far from Sam Ratulangi Airport. Manado people love to travel. So, this deal is beneficial to both parties. I hope Mr. Kim and the Busan Authority can come to North Sulawesi in the near future to see other potential projects we can work on together because Manado and South Korea have a lot of similarities. For example, you have a lot of ginseng plants, and liquors too,” said Olly.
Tourism and Creative Economy Minister Sandiaga Uno said the new route could increase international tourists’ awareness of attractions near Manado, particularly Likupang, a government “super priority” tourist destination. “The Tourism and Creative Economy Ministry fully supports the signing of this deal, as it can have a multiplier effect in the future for tourism and the creative economy in North Sulawesi. This route can serve as an opportunity for local creative industry players to showcase quality products and services to South Korean tourists,” Sandiaga said.

September20, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/20/jeju-air-to-open-direct-manado-south-korea-flight-in-tourism-bid.html?)

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Indonesia Foreign Trade Shows No Sign of Slowing Down

Indonesia’s import and export performance broke an all-time record in August due to the unprecedented volume of commodities sold, casting a positive outlook on the economy as the nation battles to subdue the effects of subsidized fuel price hikes.

Statistics Indonesia (BPS) reported on Thursday that August’s exports rose 30.15 percent year-on-year (YoY) to US$27.91 billion, topping the previous record of $27.32 billion in April. Crude palm oil (CPO), metals and electrical machinery mainly supported the export growth. Imports, meanwhile, were up 32.81 percent YoY to $22.15 billion, supported by mechanical and electrical machinery, signifying a robust manufacturing industry as the domestic purchasing managers’ index (PMI) hit 51.7 points in the same month.

            “The export performance of key commodities is still in good condition due to an increase in the volume sold, even as commodity prices fall,” BPS deputy head of distribution statistics and services Setianto said in a press briefing.

            Consequently, Indonesia’s trade surplus in August managed to reach $5.76 billion, jumping 21 percent from the previous month’s $4.22 billion, while also marking 28 consecutive months of surplus. Economists had their estimates beaten, with state-owned Bank Mandiri and financial research firm Moody’s Analytics predicting a $3.69 billion and $4.4 billion surplus, respectively.

            BPS data also showed that the monthly export performance in August was boosted by CPO sales, which increased by 25.40 percent, followed by metals and electrical machinery by 14.38 percent and 21.16 percent, respectively. Although global commodity prices have been lower than the all-time high prices of the previous month, Setianto added, the export volume of some key commodities skyrocketed drastically in August.

            The volume of CPO exports jumped 55.77 percent month-to-month (mtm) to 3.6 million tons, the highest increase this year, although CPO prices fell by 10.15 percent yoy to $1,026 per ton.  Nominal-wise, CPO exports reached $3.7 billion in August, with demands mostly coming from India, China and Egypt.

September 15, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/09/15/ri-foreign-trade-shows-no-sign-of-slowing-down.html?)

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Indonesia Unicorn, Tokopedia Named the Best Workplace in Asia-Pacific

Tokopedia won the annual Best Places to Work Asia-Pacific 2022 award from PRWeek Asia and Campaign Asia-Pacific in the ‘Best Employee Support’ category. This category is given to organizations or companies that have offered support to employees during the global health crisis. This award is held to assist companies in developing the best work environment for their employees and as an inspiration to show a good workplace and initiative.

“Tokopedia has a goal to become ‘the most admired technology company’ for workers and prospective workers in Indonesia. Through this award, Tokopedia is closer to fulfilling this mission,” said VP of People and Culture Tokopedia Nanang Chalid in a written statement, Thursday (15/9/2022).

Tokopedia is the only company in Indonesia to win this award. Has 6 health pillars; Mental Wellness, Physical Wellness, Emotional Wellness, Social Wellness, Purpose Wellness, and Financial Wellness. Employees can consult a psychologist to help increase motivation, while maintaining health – both physically and mentally – in the midst of a pandemic.

Tokopedia also created the Work Fun Home program, which is a program that encourages employees to have a more enjoyable and productive work experience from home through a series of virtual activities. In addition, Tokopedia has also provided video call facilities with company doctors.

September 15, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6292561/tokopedia-dinobatkan-jadi-tempat-kerja-terbaik-di-asia-pasifik)

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There Will be a Bridge Connecting Indonesia-Malaysia via Sumatra

Indonesia will be directly connected to Malaysia via Sumatra. This is because a line will be built connecting Telok Gong at the Tanah Mosque, Malaysia with Dumai, Sumatra in Indonesia along a length of 120 km. The construction is in collaboration with the private sector.

Quoted from Bernama, Friday (9/9/2022), the Chairman of the Melaka Investment, Industry, Entrepreneur Development and Cooperatives Committee, Datuk Seri Ab Rauf Yusoh said, the proposed construction involves the construction of a tunnel or bridge. The construction will take 20 years and when completed will have a major impact on the economic development of both countries.

“The project proposal has been submitted by the private sector and the two countries have agreed in principle a detailed study of the matter. From the state government side, we have brought all government agencies to visit the area where the proposed new route will be built yesterday,” Bernama said.

Ab Rauf said the project to be built uses the ‘One Belt One Road’ concept. This project will become a new icon for Malaysia and Indonesia. The project will also involve the construction of various infrastructures, including traffic deployment areas and the Immigration, Custom, Quarantine and Security (ICQS) Complex.

Ab Rauf added. the new industrial area which will accommodate various industrial activities will be developed in stages in the Tanah Mosque covering an area of about 2,023 hectares. The development of the area will be carried out by the Melaka Corporation and is expected to also contribute to the opening of a new city at the Tanah Mosque.

September 9, 2022, detikFinance

(https://finance.detik.com/infrastruktur/d-6281142/gokil-bakal-ada-jembatan-sambungkan-ri-malaysia-lewat-sumatera)