Tag: invest in Indonesia

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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)

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Indonesia’s Manufacturing PMI Rises to 51.7 in August 2022

Indonesia’s manufacturing industry has improved at the fastest pace in four months on the back of rising demand. The latest report by IHS Markit, now part of S&P Global, shows that Indonesia’s manufacturing purchasing manager’s index (PMI) reached 51.7 in August, a slight increase from 51.3 in July.

PMI readings above 50 indicate overall expansion in the manufacturing sector, while figures below that threshold denote contraction. The PMI has been in expansionary territory for each of the past twelve months. S&P Global Market Intelligence economist Laura Denman explained that more pronounced growth in both output and total new orders was an “encouraging sign for the future health of the Indonesian economy”, with firms frequently mentioning firmer underlying demand.

“The continued easing of inflationary pressure was another positive aspect of August’s survey, which saw both input and output cost inflation moderate to a 14-month low. We can hope to see a sustained easing of price pressures as the impacts of COVID-19 continue to recede,” she said in the report released on Thursday.

Furthermore, the report highlighted that manufacturing production in the country surged for a third consecutive month in August and at the quickest rate in seven months, reflecting a steady post-pandemic economic recovery. In line with that, the new orders subindex also rose at the fastest pace in six months in August on the back of firmer domestic demand, while new export orders contracted for the third month in a row.

Indonesian Chamber of Commerce and Industry (Kadin) deputy chairman Bobby Gafur Umar admitted that industrialists were still experiencing challenges in expanding their businesses due to logistical problems and global production chain disruption, as a residual result of the massive efficiency measures carried out by many manufacturers throughout the pandemic in the past two years.

He added that Indonesia’s manufacturing expansion had also been boosted by the government’s efforts to push the domestic content obligation (TKDN) above 45 percent, which encouraged local manufacturers to rely on domestic demand.

September1, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/09/01/indonesias-manufacturing-pmi-rises-to-51-7-in-august.html?)

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Practical! QRIS Can Be Used in Thailand, Malaysia-Singapore Next

QRIS or QR Indonesia Standard made by Bank Indonesia can now be used in Thailand. Governor of Bank Indonesia (BI) Perry Warjiyo stated that it would be easier for Indonesians to make shopping transactions in Thailand. No need to exchange money, only mobile phone capital to scan the QRIS barcode, transactions can already be done.

This is because BI and the Bank of Thailand have collaborated to form a cross-border payment system via QR. Perry said all Indonesian transactions in Thailand could use QRIS. For example, for tourism and other trade transactions.

In addition to Thailand, currently QRIS can also be used in Malaysia, but its nature is still a trial and has not yet been fully implemented. “We have tested Malaysia since January. QRIS is also being prepared to be tested in Singapore. Currently, the central banks of the two countries are preparing to sign a cooperation,” Perry said.

August 29, 2022, detikFinance

(https://finance.detik.com/moneter/d-6259762/praktis-belanja-di-thailand-bayarnya-tinggal-scan-malaysia-singapura-nyusul)

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142,000 Cars Exported from Tanjung Priok, Indonesia

In recent years, Indonesia has grown and is known as an exporter of vehicles to various countries in the world. What a very prestigious achievement! Now, don’t be surprised if we are in various countries such as Saudi Arabia, the UAE, the Philippines, and even Latin American countries, seeing cars milling about similar to a number of cars passing by in Indonesia. Even though these cars were originally produced in Indonesia.

Data from the IPCC Vehicle Terminal in Tanjung Priok – the main port of export and import of cars in Indonesia – data shows the rate of increase in car exports continues to increase from year to year. For the first semester of 2022 (January-June 2022) there were more than 142,155 CBU cars of various brands and models which were exported to various countries through the Tanjung Priok Vehicle Terminal IPCC dock.

Toyota produced by Indonesia still dominates the highest number of car exports from Indonesia in the first half of 2022. Followed by Suzuki, Mitsubishi, Hyundai, Isuzu, Honda, Daihatsu, Nissan, Mazda, VW and Geely. While last year, the order of car exports from the largest Indonesian manufacturers was Toyota, Mitsubishi, Suzuki, Daihatsu, Honda, Isuzu, Hyundai, KIA, and various other brands.

The export surge occurred in Hyundai brand cars from PT Hyundai Motor Indonesia, which rose very significantly compared to last year. The famous car brand from South Korea, in the first half of 2021, exported only 214 CBU cars, but in the first half of 2022 it jumped up by exporting 11,385 cars to various countries.

According to Agus Hendrianto, there are many advantages offered by the IPCC Tanjung Priok Vehicle Terminal, North Jakarta, making it the mainstay terminal for car manufacturers in Indonesia for managing their product exports. In addition to facilities and services, the location of the Terminal is also relatively strategic and close to the location of car factories which are usually located around Sunter, Bekasi, Karawang, and Tangerang; and the Tanjung Priok IPCC Vehicle Terminal is also directly connected to the inner city toll road.

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Indonesia Will Have the Largest Hydropower Plant in Southeast Asia, Here’s the Progress

The construction of the Kayan Hydro Power Plant (PLTA) project by PT Kayan Hydro Energy (KHE) is currently in the road construction stage. Director of Operations of PT KHE Khaerony said that later this PLTA will become the largest power plant in Southeast Asia. He said that the hydropower plant will have an integrated power source and become the main power source for the Tanah Kuning-Mangkupadi Industrial and International Port (KIPI) Zone, North Kalimantan. Meanwhile, PT Indonesia Strategic Industries (ISI) is the manager of the industrial area and PT Pelabuhan Internasional Indonesia (PII) which is the developer of international ports to support industrial areas.

With an investment value of more than US$ 17 billion or equivalent to Rp252.49 trillion, assuming an exchange rate of Rp14,852. PT KHE also cooperates with foreign partners. Many mentioned, the foreign partner who entered was Sumitomo from Japan.

The Kayan Cascade hydropower plant which was built by PT KHE utilizes the area along the Kayan river and consists of 5 dams with 5-6 units of generating turbines per dam. The first stage of the Kayan Cascade hydropower plant has a capacity of 900 Megawatts (MW), the second stage is 1,200 MW, the third and fourth stages are 1,800 MW each, and the fifth stage is 3,300 MW.

The development of this hydropower plant has good prospects, and creates jobs for residents around the location, residents of Tanjung Selor and the people of North Kalimantan in general, many parties provide support. In working on this project, KHE deliberately involved local contractors and workers. The empowerment of local contractors and workers is not without reason. This is done so that the surrounding community can also benefit from this project.

Kayan Cascade 1 hydropower plant is targeted for completion in 2026. For Cascade 2-5, parallel work is also being carried out. While Cascade 2-5 each takes 2-3 years from Cascade 1.

August 27, 2022, detikFinance

(https://finance.detik.com/energi/d-6257538/ri-mau-punya-plta-terbesar-se-asia-tenggara-loh-begini-progresnya.)

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Indonesian State-Owned Enterprises Build Roads in Timor Leste

PT Waskita Karya (Persero) Tbk won the tender for the Noefefan – Oenuno Road project in Oé-Cusse, Timor Leste worth US$ 22.1 million or around Rp322 billion. This is the pride of state-owned companies because they continue to contribute to the country. This project is not Waskita’s first project in Timor Leste. Previously, Waskita had completed several large infrastructure projects such as Suai Airport and Jalan Sakato – Noefefan which were completed in 2020.

Waskita Karya I & QSHE Director of Operation I Ketut Pasek Senjaya explained that the work that Waskita was doing included improvement/rehabilitation and maintenance. This project is expected to support the connectivity of road infrastructure which will also connect with the Indonesian border. Thus providing benefits to the people of Oé-Cusse, Timor Leste.

“We are targeting this project to be faster than the planned completion in the 18-month contract, and to be able to complete this project on time even faster than the contract, we sent the best team as a form of responsibility and gratitude to the Special Economic Social Zone no. Merkadu (ZEESM Timor 4 Leste) for trusting Waskita Karya as the implementing contractor,” explained Pasek in his statement, Sunday (21/8/2022).

Pasek hopes that the company can contribute further to the development of infrastructure and other public infrastructure facilities in Timor Leste.

Waskita Karya SVP Corporate Secretary Novianto Ari Nugroho added that until July 2022 the company had obtained a new contract value (NKB) of Rp9.90 trillion, an increase of 130.98% compared to last year’s Rp4.29 trillion.

NKB revenue comes from government projects by 75.21%, private projects by 10.95%, business development of the company’s subsidiaries by 9.80%, and projects by State-Owned Enterprises and Regional-Owned Enterprises by 4.05%.

August 21, 2022, detikFinance

(https://finance.detik.com/infrastruktur/d-6246170/top-bumn-ri-bangun-jalan-di-timor-leste)