Tag: invest in Indonesia

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Indonesia and Germany Want to Launch Digital Cooperation to Infrastructure, Here’s the Leak

The President of the Federal Republic of Germany Frank-Walter Steinmeier came to Indonesia to attend several agendas related to the development of industrial cooperation between Germany and Indonesia, including terms of eloping digitalization, infrastructure, and sustainability.
“President Steinmeier visited the Indonesian Digital Industry Center (PIDI 4.0) for two agendas. First, attending the German-Indonesia Business Round Table and reviewing PIDI 4.0, namely the development facility for the implementation of Industry 4.0 built by the Ministry of Industry,” Agus said in his statement, Thursday (16/6/2022).
The meeting discussed opportunities for cooperation, especially in the industrial sector. This is because the opportunities for cooperation in the manufacturing sector that can be developed by Indonesia and Germany include the semiconductor industry, vaccine production, and industrial 4.0 development.
In the semiconductor industry, investment opportunities are created because Indonesia is a market for electronics and finished electronics products. Furthermore, human resources, as well as natural resources in Indonesia, are grepotentialals for the development of the semiconductor industry. In the vaccine production industry, there are pharmaceutical companies, including PT Bio Farma (Persero) and PT Biotis Pharmaceutical Indonesia, which are vaccine manufacturers in Indonesia.
In terms of the development of industry 4.0, during the holding of the largest industrial exhibition Hannover Messe 2022 some time ago, an MoU was signed between the Ministry of Industry and the Deutsche Messe Technology Academy (DMTA) in the field of industrial HR development and industrial transformation 4.0.
In 2023, Indonesia will again become a partner country for the Hannover Messe 2023, after in 2021 it will also become a partner country: Digital Edition. The role of Indonesia as a partner country for the Hannover Messe 2023 is to increase cooperation between Indonesia and Germany, as well as Indonesia’s nation branding as one of the world’s economic powers and a global manufacturing player.

June 16, 2022, DetikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6131073/ri–jerman-mau-geber-kerja-sama-digital-hingga-infrastruktur-ini-bocorannya)

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LG Invests in Upstream to Downstream Electric Vehicles, Jokowi: First in the World

LG Energy Solution built an Electronic Vehicle (EV) battery factory in the Batang Integrated Industrial Estate (KIT), Central Java. The investment value is estimated at US$ 9.8 billion or Rp142 trillion. This investment is a form of cooperation between the LG consortium and the IBC BUMN consortium, which consists of LG Energy Solution, LG Chem, Huayou, LX International, Posco, Mind ID, Antam, Pertamina Power, and PLN. President Joko Widodo (Jokowi) said that this investment was the first upstream to downstream investment in the world.
“LG’s investment is the first investment in the world that integrates the production of electric vehicles from upstream to downstream,” said Jokowi at KIT Batang, Wednesday (8/6/2022).
Nickel as the main raw material for electric batteries is mined in Halmahera, Maluku. Meanwhile, the industrial location, purification, and cathode production are at KIT Batang. This is what he calls downstream, which is spread over the territory of Indonesia. President Joko Widodo appreciated LG’s investment in Indonesia. This is because it creates jobs for up to 20,000 people. This large-scale project can support the production of 3.5 million units of electric vehicle batteries with a potential of up to 200 GWh/year. He added that a battery factory is being built in Karawang and an electric car factory in Cikarang, West Java.
Minister of Investment/Investment Coordinating Agency (BKPM) Bahlil Lahadalia said the economic impact of this investment reached US$ 5.6 billion or Rp80.6 trillion (exchange rate of Rp14,400) annually. President of LG Energy Solutions Lee Bang Soo called this investment an important key to national development. He hopes this EV factory will become one of the most important in Southeast Asia in the future. LG is collaborating with the State Electricity Company (PLN) on the project. This project will contribute to the global secondary battery industry in the next 26 years.

June 08, 2022, DetikFinance
(https://finance.detik.com/industri/d-6116340/lg-investasi-kendaraan-listrik-hulu-ke-hilir-jokowi-pertama-di-dunia)
(https://finance.detik.com/industri/d-6122732/lg-dan-bumn-punya-proyek-raksasa-rp-142-triliun-ini-rinciannya)

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Kalbe Farma to Open Business Unit in the Philippines

Indonesian pharmaceutical producer PT Kalbe Farma said on Friday it would establish a business unit in the Philippines to expand its global market reach. Kalbe Farma, through subsidiary Kalbe International Pte. Ltd, signed on May 17 a deal with the Philippines’ Ecossential Foods Corp (ECO) to form a joint venture firm to market all products, apart from prescription drugs, in the country. ECO specializes in the distribution of fast-moving consumer goods. The two companies are still in the process of establishing the joint venture, publicly listed Kalbe said in a filing with the Indonesia Stock Exchange (IDX).
“The Philippines has strong market potential for Kalbe Farma,” said the company.
Kalbe Farma will own 60 percent of the joint venture firm and ECO the remaining 40 percent. The two firms plan to inject 130 million Philippine pesos (US$2.48 million) in initial capital. Kalbe will finance its share using cash. The joint venture is part of Kalbe’s plan to strengthen its foreign market presence this year, specifically in Myanmar, the Philippines, Sri Lanka, Nigeria, Malaysia, and Cambodia, as it seeks to raise the contribution of exports to between 5 and 6 percent of its total revenue, up from 4.8 percent last year.
The joint venture is part of Kalbe’s plan to strengthen its foreign market presence this year, specifically in Myanmar, the Philippines, Sri Lanka, Nigeria, Malaysia, and Cambodia, as it seeks to raise the contribution of exports to between 5 and 6 percent of its total revenue, up from 4.8 percent last year. Kalbe’s 2021 annual report showed that its most popular products in the Philippines included cereal bars of the Fitbar brand and the diabetic-friendly nutritional product line Diabetasol.
Kalbe is also in the process of establishing a subsidiary, Kalbe Philippines Inc. (KPI), that cost an advance fee of $200,000. The move was pending regulatory approval as of March 31, according to Kalbe’s latest financial report. Kalbe posted a 16.5 percent year-on-year increase in net profit to Rp835 billion in the first quarter of this year, as revenue rose 16.6 percent to Rp7.01 trillion.

May 30, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/05/30/kalbe-farma-to-open-business-unit-in-philippines.html)

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Forbes Releases List of Young Achievers in Asia, Indonesia Donates 30 Representatives

The Asia-Pacific region has had its challenges over the past year. From travel restrictions issues to supply chain disruptions. But this hasn’t stopped young entrepreneurs in the region from coming up with new ideas, building on success, and in some cases starting their own businesses. This year, the 30 Under 30 Asia Awards released by Forbes shows a lot.
Quoting Forbes, Saturday (28/5/2022), more than 4,000 nominations were submitted to enter this year’s list, a record for the list in Asia. 22 countries and territories are represented on the list. In detail, the ranking of countries based on the highest number of citizens on the list is India (61), followed by Singapore (34), Japan (33), Australia (32), Indonesia (30), and China (28). Collectively, 90 of the 300 entries on this year’s list are from Southeast Asia, a region where the startup ecosystem is on the rise and attracting global VC money.
Indonesia, however, can be considered a hotbed for startups in Southeast Asia. According to a report by Google, Temasek, and Bain, e-Conomy SEA 2021 published in November, US$ 4.7 billion or Rp68.3 trillion (exchange rate of Rp14,539) VC money entered Indonesian startups in the first half of 2021.
Forbes 30 Under 30 Asia notes that Indonesian entrepreneurs make up 10% of the entire list, most of them building businesses to serve an increasingly tech-savvy population of 274 million. Debeasinta Budiman and Garret Koeswandi did just that.

May 28, 2022, DetikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6099804/forbes-rilis-daftar-pemuda-berprestasi-di-asia-ri-sumbang-30-wakil)

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Indonesia Rises $3.25 bln in its Biggest Global Sukuk Sale

Indonesia has raised $3.25 billion by selling U.S. dollar-denominated Islamic bonds with 5-year and 10-year tenures, the country’s biggest global Sukuk issuance, the finance ministry said on Wednesday. The 5-year notes carry a coupon of 4.40%, while the 10-year notes have a 4.70% coupon, below the sovereign’s initial price guidance, it said in a statement. Total order books reached $10.8 billion.
“The issuance… is the biggest global Sukuk transaction by the government in history, an accomplishment achieved amid intraday (market) volatility,” the ministry said.
Indonesia usually taps the global Sukuk market once every year. Last year it sold $3 billion worth of Islamic bonds. Those bonds carried much lower coupons compared with notes with similar maturities offered on the most recent sale.
The 5-year and 10-year bonds sold in 2021 carried 1.5% and 2.55% coupon rates, respectively. Most of the buyers of the new issuance were from Asia and the Middle East. CIMB, Deutsche Bank, Dubai Islamic Bank, HSBC, and Standard Chartered Bank were the joint lead manager and joint book-runner for the transaction. HSBC and Standard Chartered Bank were also joint green structuring advisors. BRI Danareksa Sekuritas dan Trimegah Sekuritas Indonesia acted as co-managers.

May 26, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/05/26/indonesia-raises-325-bln-in-its-biggest-global-sukuk-sale.html

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Energy Industry Leaders Push for Indonesia’s Energy Transition

Indonesia needs to tap into renewable energy sources, particularly geothermal and solar energy sources, as one of the world’s most populous country and a major global emitter is decarbonizing its economy. “Demand and potential for renewable energy in Indonesia are soaring, it is expected that the Indonesian energy demand will increase considerably,” Coordinating Economic Affairs Minister Airlangga Hartarto said during a JakPost UpClose webinar on Tuesday.
“By the end of 2060, we will put all kinds of renewable energy, including geothermal power and hydropower, in the system. If we still need more, it will come from wind and solar,” Edwin Nugraha Putra, executive vice president of electricity system planning at PLN.
PLN is currently developing a geothermal power plant with an installed capacity of 590 megawatts (MW), consisting of 360 MW generated by PLN and 230 MW generated in collaboration with state-owned geothermal company PT Geo Dipa Energi and state-owned Pertamina Geothermal Energy.
Indonesia, which has the world’s largest geothermal reserves, aims to achieve a geothermal power capacity of 3.35 gigawatts (GW) by 2030, as outlined in its 2021-2030 Electricity Procurement Plan (RUPTL). Data from the Energy and Mineral Resources Ministry data show that only 9.2 percent of the country’s 23.7 GW geothermal potential, or 2.18 GW, has been harnessed to date, while 1.33 GW has been allocated for expansion plans through to 2035.
Low offtake tariffs remain the unaddressed challenge to developing geothermal power plants in Indonesia, experts say, after the recent launch of a state-funded well-drilling program addressed the issue of high production costs, experts say.
Jiro Tominaga, Indonesia’s country director at the Asian Development Bank (ADB), said changing certain policies was key to pushing Indonesia’s energy transition to achieve a 23 percent renewable energy mix by 2025. These included cutting fossil fuel subsidies, setting electricity tariffs that supported renewables, and encouraging private sector investments. The ADB has been supporting Indonesia’s energy transition since 2012, contributing over $3 billion in funding.

May 25, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/05/25/energy-industry-leaders-push-for-indonesias-energy-transition.html)

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Jokowi Meets Elon Musk After Nickel Talks

President Joko “Jokowi” Widodo met Tesla Inc Chief Executive Elon Musk on Saturday in Texas to discuss potential investments and technology, Indonesia’s government said in a statement. The meeting between Musk and Jokowi came after a round of working-level discussions on a potential investment in Indonesia’s nickel industry and supply of batteries for electric vehicles, Indonesian officials told Reuters.
Representatives from Tesla were in Indonesia last week for meetings regarding a potential battery-related investment, Indonesian officials and two people familiar with the talks have said. Indonesia for years has been trying to secure a deal with Tesla on battery investment and potentially for Musk’s SpaceX aerospace company. Indonesia for years has been trying to secure a deal with Tesla on battery investment and potentially for Musk’s SpaceX aerospace company.
“There could be room for partnerships in many things because Indonesia has a lot of potentials”, Elon Musk said.
Indonesia has the world’s biggest nickel reserves, and Jokowi is keen to develop a nickel-based EV industry at home – from making nickel metal to producing battery components and assembling electric vehicles. In the past, he has also urged Musk to consider a rocket launch site in Indonesia. Two deals over the past month have given new momentum to Jokowi’s push to develop an EV-related industry at a time when global automakers have been scrambling to secure supplies of battery materials and reduce their reliance on China.
A consortium led by South Korea’s LG Energy Solution Ltd, the global No. 2 maker of EV batteries, announced plans last month to invest $9 billion in Indonesia as part of a deal that would include everything from nickel refining to producing battery cells in Indonesia. LG’s larger rival, China-based Contemporary Amperex Technology, a Tesla supplier, announced a $9 billion Indonesia investment in April.

May 15, 2022, TheJakartaPost
(https://www.thejakartapost.com/business/2022/05/15/jokowi-meets-elon-musk-after-nickel-talks.html)

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Cianjur, Indonesia Saves World’s 2nd Largest Treasure, Only Used 9%

Survei Pendahuluan dan Eksplorasi known as WPSPE) in the Cipanas Region, Cianjur Regency, West Java Province. The following is the official statement from the Ministry of Energy and Mineral Resources regarding the offered Geothermal WPSPE:

  • WPSPE Name : Cipanas
  • Geothermal WPSPE Location : Cianjur Regency, West Java Province
  • WPSPE area : 3,180 Ha
  • Potential : 85 MWe (Reserve)

It is hoped that the development of geothermal energy into a source of electrIndonesia has a ‘treasure’ in this case new renewable energy resources (EBT) in the form of geothermal or geothermal in the Cipanas area, Cianjur Regency, West Java. Currently, the 2nd largest treasure in the world has only been worked on by Indonesia, reaching 9.5%. The Geological Agency of the Ministry of Energy and Mineral Resources (ESDM) noted that Indonesia’s geothermal resources as of December 2020 reached 23,965.5 Mega Watts (MW) or around 24 Giga Watts (GW). Meanwhile, the United States is ranked number one for geothermal resources, reaching 30,000 Mega Watts (MW).
The plan to work on geothermal energy sources in Cianjur is marked by the bidding of the Geothermal Preliminary and Exploration Survey Assignment Area (Wilayah Penugasan city in the country will increase. The reason is, until the end of 2021, the installed capacity of the Indonesian Geothermal Power Plant (PLTP) was recorded at only 2,276.9 Mega Watt (MW), only an increase of 146.2 MW from the total installed capacity in 2020 which was 2,130.7 MW.
This means that the total installed capacity of PLTP RI until the end of 2021 is only about 9.5% of the total existing resources. Thus, there is still a lot of geothermal potential in the country that has not been exploited.

May 14, 2022, CNBC Indonesia
(https://www.cnbcindonesia.com/news/20220514121424-4-339032/cianjur-pendam-harta-karun-terbesar-2-dunia-baru-dipakai-9)

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Jokowi Woos Investors in Meetings with US Congress, Businesses

President Joko Widodo met with United States officials and businesses ahead of the ASEAN-US Special Summit, trying to woo potential investors to Indonesia and the region while stressing the importance of ASEAN for peace and prosperity. Jokowi and several other ASEAN leaders met with US businesses at the Intercontinental Willard Hotel in Washington, DC.
The President told the business leaders that as the president of the Group of Twenty this year, Indonesia wanted to make sure that the upcoming G20 Summit could catalyze global economic recovery, especially for developing countries.
“This will need strong partnership between governments and business communities. I hope that CEOs of US companies can build concrete cooperation in the G20 with ASEAN, especially in Indonesia. Indonesia had potential in raw industries, green energy, as well as the digital economy, being one of the largest nickel-producing nations and the second-largest producer of stainless steel. Indonesia is also home to copper and bauxite as materials for aluminum, which could become the backbone for renewable energies such as lithium batteries and electric vehicles and other sources of green energy such as hydro, solar, and geothermal powers” Jokowi said.
“We are making sure to produce important commodities for environmentally friendly electricity generators. We invite American businesses to invest in Indonesia,” Jokowi said.

May 14, 2022, TheJakartaPost
(https://www.thejakartapost.com/indonesia/2022/05/14/jokowi-woos-investors-in-meetings-with-us-congress-businesses.html)

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Pertamina and Chevron Sign Cooperation of Rp146 Trillion

Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed the investment value of the collaboration between PT Pertamina (Persero) and Chevron Corporation through its subsidiary, Chevron New Ventures Pte. Ltd. The total deal is worth US$ 10 billion or equivalent to Rp146 trillion (exchange rate of Rp14,600/US$). This investment is to encourage the optimization of Indonesia in promoting new and renewable energy.
“Geothermal is one of our mainstays that has been driven so far. Incidentally, Chevron and Pertamina have had good relations for decades. This will optimize the total investment of US$ 10 billion for the next 10 years,” he said at a press conference, quoted by Antara. from the Presidential Secretariat YouTube channel Friday (13/5/2022). Bahlil believes that if the agreement is carried out, then Indonesia’s goal to become the center of the downstream industry for new and renewable energy can be achieved.
For information, PT Pertamina (Persero) with its subsidiary Chevron Corporations, Chevron New Ventures Pte. Ltd. has signed a Memorandum of Understanding (MoU) to explore potential low-carbon business opportunities in Indonesia.

May 13, 2022, DetikFinance
(https://finance.detik.com/energi/d-6077075/bahlil-buka-bukaan-kerja-sama-pertamina–chevron-rp-146-triliun)