Tag: Investment consulting

Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that the investment flow into the Kendal Special Economic Zone (SEZ) has reached IDR 205.2 trillion and the absorption of workers has reached 132,777 people.

“From the SEZ there are 12 industrial SEZs including the Kendal SEZ and yesterday the president’s direction was that we will create a SEZ in Batang,” said Airlangga, Wednesday (7/8/2024).

With the presence of the Kendal SEZ, Airlangga said that growth in Kendal has reached 42% and per capita income there has reached 52 million per year with a growth of 8%.

Today, Wednesday (7/7/2024), Indonesian President Joko Widodo (Jokowi) inaugurated the lithium battery anode material factory owned by PT Indonesia BTR New Energy Material, in Kendal, East Java.

The existence of this factory will make Indonesia the largest anode producer in the world. Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that the investment of PT Indonesia BTR New Energy material is able to make Indonesia the largest Anode producer in the world.

“The capacity of 80 thousand tons is capable, enough to produce 1.5 million electric cars, they will make phase II which is targeted to be completed in March 2025, so that the total production is 160 thousand tons,” he said.

“With this capacity, Indonesia will become the second largest (producer) in the world, the factory in Japan has a capacity of 10 thousand tons, South Korea 40 thousand tons, the largest in China 100 thousand tons, so we will pass China in the future,” said Luhut.

August 7, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20240807122432-4-561086/SEZ-kendal-serap-investasi-rp-205-triliun-di-semester-i-2024)

Minister of Trade Zulkifli Hasan alias Zulhas together with Secretary General of the Gulf Cooperation Council (GCC) Jasem Mohamed AI Budaiwi officially launched the Indonesia-Gulf Cooperation Council Free Trade Agreement (I-GCC FTA) Negotiations. The launch of these negotiations was marked by the signing of the Joint Statement on The Launching of The Negotiation on The Free Trade Agreement between The Republic of Indonesia and The Gulf Cooperation Council at the Ministry of Trade Office on Wednesday, (31/7/2024).

“I am very happy today, even though we have not succeeded (in completing the agreement) but we have started (negotiations). I once again express my highest appreciation for the arrival of His Excellency the Secretary General of the GCC,” said Zulhas in his remarks.

“From the bottom of my heart, I sincerely invite us together, there are Ambassadors (of GCC countries) and His Excellency (Secretary General of the GCC), to immediately complete one that can increase our trade in this agreement,” he explained again.

Zulhas said that so far Indonesia and the Arab countries that are members of the GCC have had a long historical relationship, but minimal cooperation. Therefore, this agreement is considered to be a new step for both parties to be closer.

“We have a long historical relationship, but the trade relationship is minimal. During my two years as Minister of Trade, I have been to Saudi Arabia 5-6 times, 5 times to the UAE, 2 times to Qatar, Oman and Bahrain have not, Kuwait has not. But I really want us to strengthen and expand our trade relations,” he said.

He said that this cooperation could later have a good impact on both parties, because both Indonesia and the GCC have very large economies.

In line with that, Jasem Mohamed AI Budaiwi said that the newly signed I-GCC FTA agreement could have a positive economic impact on both parties.

“This is a very historic day for Indonesia and the Gulf countries (GCC), where we have signed a trade agreement between the two countries. Your Excellency, the Minister, with this agreement, it can bring goodness to both countries, especially in the economic sector,” he said.

“(Through this negotiation agreement) We from the GCC and Indonesia will discuss important matters together. There are several things that we want to convey, including trade in goods, trade in services, customs, Islamic economics. We want to underline that this trade agreement emphasizes Islamic economics,” explained the GCC Secretary General again.

For information, the GCC is an economic and political cooperation alliance consisting of six countries, namely Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman, and Qatar.

Meanwhile, in the January-May 2024 period, total trade between Indonesia and the GCC had reached US$ 6.2 billion. Of that amount, Indonesia’s exports to the GCC were recorded at US$ 2.7 billion, while Indonesia’s imports from the GCC reached US$ 3.5 billion. In 2023, total trade between Indonesia and the GCC reached US$ 15.7 billion. Of that amount, Indonesia’s export value was recorded at US$ 6.1 billion, where Indonesia’s main export commodities include cars and motor vehicles, palm oil, jewelry, lightships, paper, and uncoated cardboard. Indonesia’s imports were recorded at US$ 9.6 billion, with the main non-oil and gas import commodities including semi-finished products from iron or non-alloy steel, acyclic alcohol, sulfur, polymers from ethylene, and unwrought aluminum.

July 31, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7466802/sah-ri-teken-perjanjian-kerja-sama-dagang-dengan-6-negara-arab)

The Ministry of Investment or the Investment Coordinating Board (BKPM) reported that investment realization throughout the first semester of 2024 had reached IDR 829.9 trillion or increased by 22.3% (yoy) from last year. According to BKPM, this realization has reached 67% of the total Renstra target of IDR 1,239.3 trillion and 50.3% of President Joko Widodo’s target of IDR 1,650 trillion. With this realization, the absorption of the workforce reached 1,225,042 people. Of the total realization of IDR 829.9 trillion, 50.8% or IDR 421.7 trillion was foreign capital participation (PMA) and the remaining IDR 408.2 trillion or 49.2% was domestic capital participation (PMDN).

In the first semester of 2024, PMA increased by 16.1% annually and PMDN also increased higher, namely 29.4%. Geographically, as much as IDR 413.7 trillion or 49.8% of investment in the first semester flowed to Java. The remaining IDR 416.2 trillion or 50.2% went outside Java. Both Java and outside Java experienced an increase in investment realization, by 27.8% and 17.3% respectively.

PMDN in the first semester was still dominated by the transportation, warehouse and telecommunications and mining sectors, which reached IDR 59.9 trillion and IDR 53.4 trillion respectively. Then followed by housing, industrial areas and offices of IDR 36.6 trillion and trade and repairs of IDR 35 trillion. The fifth position is the food industry of IDR 33 trillion.

Meanwhile, PMA flowed a lot into the basic metal industry sector, metal goods, not machinery and equipment of US$ 7.1 billion and mining of US$ 2.3 billion. The third position is transportation, warehouse and telecommunications and mining of US$ 2 billion and the fourth is the chemical and pharmaceutical industry of US$ 1.9 billion. The fifth position is occupied by the paper and printing industry with US$ 1.8 billion.

In terms of location, in the first semester of 2024, the largest PMDN entered DKI Jakarta and West Java, namely IDR 69.3 trillion and IDR 49.2 trillion respectively. Furthermore, the third position is East Java with IDR 44.1 trillion and the fourth, Riau with IDR 40.3 trillion. Finally, the fifth is East Kalimantan with IDR 24.4 trillion.

Then, the largest PMA in the first semester of 2024 flowed to West Java with US$ 5.3 billion and Central Sulawesi with US$ 3.9 billion. The third position is DKI Jakarta with US$ 3.4 billion and the fourth position, North Maluku with US$ 2.8 billion. The fifth position is occupied by Banten with US$ 2.4 billion.

In terms of investment country of origin, Singapore is in first position with US$ 8.9 billion, followed by China with US$ 3.9 billion and Hong Kong with 3.8 billion. Meanwhile, the United States is in fourth place with US$ 2 billion and fifth, Japan with US$ 1.8 billion.

July 29, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20240729104401-4-558379/bkpm-lapor-realisasi-investasi-tembus-rp830-t-di-semester-i-2024)

Indonesia has successfully risen two ranks to 12th place in the Top Manufacturing Countries by Value Added released by the World Bank. According to Minister of Industry Agus Gumiwang Kartasasmita, this shows that the domestic manufacturing sector is still growing positively.

“There is quite encouraging data released by the World Bank, namely that in 2023 Indonesia managed to enter the 12th position in the Top Manufacturing Countries by Value Added in the world, with a Manufacturing Value Added (MVA) value of US$ 255 billion,” he said in his statement written on Thursday (25/7/2024).

According to the Minister of Industry, Indonesia’s position is far superior to other ASEAN countries such as Thailand and Vietnam. The two countries’ MVA values ​​are only half of Indonesia’s MVA value.

“At the global level, Thailand’s MVA is in 22nd position with a value of US$ 128 billion, while Vietnam is in 24th position with a value of US$ 102 billion,” he said.

Indonesia’s MVA value in 2023 increased by 36.4 percent (or US$ 68 billion) from 2022 which reached US$ 187 billion. “This raises Indonesia’s ranking from 14th in the world in 2022 to 12th in 2023,” he added.

The Minister of Industry stated that the manufacturing structure that has been owned in the country is much deeper and more evenly distributed so that it has greater added value than other competing countries in ASEAN or the world.

“To maintain or improve this achievement, there is only one key, namely the manufacturing industry must continuously strive to strengthen competitiveness,” he said.

The Minister of Industry added that based on the results of his working visit to attend the Hannover Messe 2024 event in Germany some time ago, the German Chancellor and the President of the European Union on that occasion conveyed the importance for a country to be able to create value (value creation).

“So, they both said that only countries that are able to create value will win in global manufacturing competition, including global economic competition. For that, we must quickly explore existing opportunities, one of which is by strengthening the role and exploring the potential for developing industrial services for the manufacturing sector in Indonesia,” he explained.

Based on Government Regulation (PP) Number 14 of 2015 concerning the National Industrial Development Master Plan (RIPIN) for 2015-2035, industrial services are one of the supporting sectors in building the national industry. So far, industrial services have played a strategic role as an enabler for industrial development effectively, efficiently, integrators, and comprehensively, and are able to support the activities of the processing industry sector and other sectors to contribute to the National GDP.

Economist from Brawijaya University Wildan Syafitri said that this achievement deserves to be appreciated because it is a positive achievement considering that in a crisis situation, Indonesia can actually increase the efficiency of the manufacturing industry. The latest data on the performance of the manufacturing industry sector also shows positive figures. The non-oil and gas processing industry sector in the first quarter of 2024 became the largest contributor to the national Gross Domestic Product (GDP), namely 17.47 percent with a growth of 4.64 percent and providing the largest tax revenue of up to 26%. On the export side, the value of shipments of non-oil and gas processing industry products in the first semester of 2024 reached 91.65 billion US dollars or equivalent to 73.27% of total national exports, with the absorption of 18.82 million workers. In addition, the realization of investment in the manufacturing industry sector in the same period reached 38.73%, with a value of IDR 155.5 trillion.

July 25, 2024, detikFinance

(https://finance.detik.com/industri/d-7456753/top-nilai-tambah-manufaktur-ri-kalahkan-thailand-dan-vietnam)

President of the Republic of Indonesia Joko Widodo launched the Indonesian Golden Visa in a ceremony at The Ritz-Carlton Hotel, Jakarta, Thursday (25/7/2024). In his remarks, Jokowi said that currently there are not many countries that have good economic growth, maintained political stability, as well as demographic bonuses and abundant natural resources.

“This means that Indonesia should be able to become a promising investment destination, a destination for global talents to work. All of that will provide a big multiplier effect for the country. Starting from capital gains, job opportunities, technology transfer, improving the quality of human resources, and so on,” he said.

Therefore, according to Jokowi, today the government is launching the Golden Visa service. The goal is to make it easier for foreigners to invest and work in Indonesia. Jokowi warned that the Golden Visa should only be given to good quality travelers. So, it must be truly selective, truly selected, and its contribution must be truly seen.

The head of state also hopes that the Indonesian Golden Visa facility will be immediately disseminated and socialized. Do it massively through various channels so that it can reach more top investors and top global talents.

“In addition, I also hope that the ambassadors of friendly countries can convey information about this policy to the people in their respective countries to increase economic cooperation and become a glue for friendship between countries,” said Jokowi.

For the record, the Golden Visa service is stated in the Regulation of the Minister of Law and Human Rights (Permenkumham) Number 22 of 2023 concerning Visas and Residence Permits and the Regulation of the Minister of Finance Number 82 of 2023 which was promulgated on August 30, 2023. This visa classification is intended for qualified foreigners who will benefit the development of the country’s economy, one of which is investors, both corporate and individual.

“A golden visa is a visa that is given as a basis for granting a residence permit for a period of 5 to 10 years in order to support the national economy,” said the Director General of Immigration of the Ministry of Law and Human Rights, Silmy Karim in his press statement, Sunday (3/09/2023), as reported by detik.com.

To be able to live in Indonesia for 5 years, foreign individual investors who will establish a company in Indonesia are required to invest US$ 2.5 million (around IDR 38 billion). Meanwhile, for a 10-year stay, the required investment value is US$ 5 million (around IDR 76 billion).

Meanwhile, corporate investors who form a company in Indonesia and invest US$ 25 million or around IDR 380 billion will receive a Golden Visa with a 5-year stay for their directors and commissioners. For an investment value of US$ 50 million, a 10-year stay will be given.

“Different provisions apply to individual foreign investors who do not intend to establish a company in Indonesia,” he said.

For a 5-year Golden Visa, applicants are required to place funds worth US$ 350 thousand (around IDR 5.3 billion) which can be used to buy Indonesian government bonds, shares of public companies or savings/deposits. While for a 10-year Golden Visa, the funds that must be placed are US$ 700 thousand (around IDR 10.6 billion).

“Because we are targeting quality travelers, the requirements are more stringent. The longer you stay in Indonesia, the higher the value of the guarantee, especially for investment activities which can be up to around IDR 760 billion,” he added.

July 25, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/lifestyle/20240725112403-33-557512/jokowi-luncurkan-golden-visa-beri-kemudahan-wna-berinvestasi-di-ri)

In order to increase added value to the economy and maintain national economic resilience, the government has initiated a downstream industry policy. For this reason, the role of domestic off-takers and users of copper raw materials is considered very important in making it a success. The supply of copper downstream products that Indonesia currently needs still relies on imported products. One of them is copper tube, copper tape, copper evaporator, as well as components needed in Electric Vehicle (EV) production such as cables, inverters, and batteries. In order to meet these needs, the government continues to encourage processing industries in Special Economic Zones to carry out downstream processing.

“We applaud the extraordinary management. And what was built is an extraordinary, extraordinary factory. So, this is very timely, because currently renewable energy is becoming a trend. And the renewable energy trend requires critical minerals. And one of them is copper,” he said Coordinating Minister for Economic Affairs Airlangga Hartarto Airlangga in a written statement, Friday (28/6/2024). This was conveyed by Airlangga, at the Inauguration of PT Freeport Indonesia (PTFI) Smelter Operations in the Gresik Special Economic Zone.

The PTFI smelter is the largest single-line copper refining facility in the world with a refining capacity of 1.7 million tons of copper concentrate per year. The project, which occupies 100 hectares of land in the Java Integrated Industrial Ports Estate (JIIPE) KEK, Gresik, East Java, has a cumulative investment value of IDR 58 trillion or around US$ 3.7 billion.

This investment will not only provide benefits for domestic construction companies but will also create multiplier effects for the people of Gresik Regency.

Together with the smelter operated by PT Smelting, the two will refine 3 million tons of copper concentrate per year with a production of around 600,000 tons of copper cathode, 50 tons of gold and 200 tons of silver per year.

With the operation of this smelter, all copper concentrate produced by PTFI can be processed and refined domestically, as can the anode sludge from PT Smelting.

“And this is the first integration from the mine to the final product. And with this integration, the gold production of 50 tons will pay royalties. Because this is integrated from the mine to the downstream. Likewise for silver we also pay royalties. So, of course a lot of income will be obtained from thegovernment,” said Airlangga.

It is hoped that PTFI’s presence in the Gresik KEK can be an attraction in forming an area with an ecosystem that supports downstreaming, especially EVs. As of March 2024, the Gresik KEK has recorded an investment value of IDR 75.2 trillion and absorbed more than 35,000 workers.

“In the future Indonesia will be able to increase its exports. If our exports are strong, then our rupiah can be stable. For example, from nickel and from palm oil our exports are US$ 55 billion. So, oil imports are US$ 40 billion, it’s actually natural “hedging happened,” concluded Airlangga.

June 28, 2024, detikFinance

(https://finance.detik.com/industri/d-7414063/resmikan-smelter-freeport-di-gresik-airlangga-dorong-hilirisasi-industri)

Indonesia’s competitiveness has succeeded in occupying the highest ranking in its history. This is based on the International Institute for Management Development (IMD) through the release of the 2024 World Competitiveness Ranking (WCR) regarding the competitiveness of various countries.

Indonesia is ranked 27^th out of 67 countries, up 7 places from last year in 34^th position with a score of 71.52. Since 1997, this is the first time Indonesia has reached the top 20 rankings, only behind Singapore (rank 1) and Thailand (rank 25) in the Southeast Asia region.

The Ministry of Investment/Investment Coordinating Board (BKPM) considers the surge in Indonesia’s competitiveness ranking as a positive thing to increase investor confidence, especially foreign investors. Special Staff for Regional Relations at the Ministry of Investment/BKPM Tina Talisa assessed that the steps taken by the government under the leadership of President Joko Widodo were correct.

“It is proven by the efforts that have been made during the 2 periods of this government, Indonesia’s competitiveness shot to 27th position. The highest ranking in history. This is a positive thing that shows that we are truly ready to compete. Moreover, among ASEAN countries, we have entered the top three,” said Tina in her statement, Friday (28/6/2024).

He explained that previously Indonesia was ranked 34^th (2023), 44^th (2022), 37^th (2021) and 40^th(2020). IMD itself has carried out WCR assessments since 1989 and Indonesia has been recorded as having participated in assessments since 1997.

“It is proven by the efforts that have been made during the 2 periods of this government, Indonesia’s competitiveness shot to 27th position. The highest ranking in history. This is a positive thing that shows that we are truly ready to compete. Moreover, among ASEAN countries, we have entered the top three,” said Tina in her statement, Friday (28/6/2024).

“Institutionally, the government has made a lot of improvements. In 2020 the CK Law (Job Creation Law) was created, which will be perfected in 2023 through the CK Perppu. Here we also emphasize a more inclusive economy, empowering MSMEs. Not only in the Ministry of Investment, but all ministries also “Institutions consistently implement it,” added Tina.

June 28, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7412805/daya-saing-ri-naik-ke-posisi-27-bkpm-tertinggi-sepanjang-sejarah)

(https://finance.detik.com/berita-ekonomi-bisnis/d-7413812/daya-saing-ri-loncat-ke-posisi-tertinggi-sepanjang-sejarah-apa-dampaknya)

The Ministry of Industry (Kemenperin) notes that the food and beverage industry play an important role in supporting Indonesia’s economic growth. According to the Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, in the first quarter of 2024, exports in this sector will reach US$ 9.18 billion or IDR 149.63 trillion (exchange rate IDR 16,300).

“Apart from that, from the export side, in the first quarter of 2024 the food industry recorded a value of US$ 9.18 billion, with an import value of US$ 4.27 billion. Thus, the food industry sector still continued its positive trade balance in the first quarter in 2024 amounting to US$ 4.91 billion,” he said at the Seaweed Industry Business Matching event, Tuesday (25/6/2024).

The contribution of this sector in the first quarter of 2024 is 39.91% of Non-Oil and Gas Industry GDP, and 6.97% of national GDP. Food and beverage industry GDP increased to 5.87% in the first quarter of 2024 compared to the previous period of 5.33%.

According to Putu, the seaweed processing sector has promising business prospects. This is because Indonesia has abundant availability of raw materials for the development of seaweed derivative products.

“The seaweed processing industry has promising business prospects because it is supported by the abundant availability of raw materials and opportunities for the development of various derivative products with high added value. As the 2nd largest seaweed cultivation producing country in the world, Indonesia is a suitable place for the development of seaweed. “starting from the cultivation process to the downstream process,” he explained.

In the last 10 years, Indonesia still dominates exports of dried seaweed, both for consumption and industrial raw materials. However, significant growth has not been seen in exports of downstream products that have more added value.

66.61% of Indonesia’s seaweed export products are dominated by dried seaweed, while processed seaweed (carrageenan and gelatin) still accounts for 33.39%. In 2023, Indonesia will produce 10.7 million tons of wet seaweed.

“So far, the majority of processed seaweed is used for food and beverage products at 77%, while for pharmaceuticals, cosmetics and others it is only 23%. This industry needs to be more adaptive to changes and market developments,” he said.

Putu added that his party continues to synergize with Ministries/Institutions to increase competitiveness and optimize the downstreaming of the seaweed industry. Some of these derivative products include biostimulants, bioplastics, animal feed additives, nutraceuticals, alternative proteins, pharmaceuticals and textiles.

“The Global Seaweed New and Emerging Market Report 2023 has identified a new market share that will develop in 2030 for downstream seaweed products with a market potential of US$ 11.8 billion, namely biostimulant products, bioplastics, animal feed additives, nutraceuticals, protein alternatives, pharmaceuticals and textiles,” concluded Putu.

June 25, 2024, detikFinance

(https://finance.detik.com/industri/d-7407341/top-ekspor-sektor-makanan-dan-minuman-ri-tembus-rp-149-triliun)

(https://finance.detik.com/industri/d-7407549/potensi-industri-produk-turunan-rumput-laut-ri-tembus-rp-192-triliun)

The Directorate General of Sea Transportation of the Ministry of Transportation is again participating in the 2024 Marine Pollution Exercise (Marpolex). This time it will be held at the Port of Bacolod, Philippines.

Director of the Sea and Coast Guard Unit, Jon Kenedi said that on Monday (24/6) a ceremony was held to welcome the arrival of the Indonesian Sea and Coast Guard patrol vessel, namely KN.P. 111 Trident. The KPLP Patrol Ship has started its journey from Indonesia to the Philippines from Bitung Harbor since June 19, 2024.

“This welcoming ceremony was led by the Commander of Coast Guard District Western Visayas, Capt. Weniel Azcuna,” said Jon Kenedi in a press release written on Tuesday (25/6/2024).

Jon Kenedi expressed his appreciation for the welcome given by the Bacolod City Government and the Philippine Coast Guard. “On behalf of the Indonesian Government, allow me to express my gratitude to the Bacolod Regional Government for its warm welcome and willingness to host this exercise,” said Kenedi.

The Marpolex 2024 exercise aims to test and evaluate the ability to respond to cross-border oil spills between Indonesia and the Philippines based on the Sulu Sulawesi Oil Spill Response Network Plan 1981. This activity is expected to strengthen cooperation and communication between participating countries, including Japan as an observer.

“This exercise primarily aims to test and evaluate capabilities in responding to tier 3 scale oil spills in the Indonesia-Philippine border waters,” added Kenedi.

Commander KN. Trident, Capt. Satria Aji Yudha also expressed his gratitude for the warm welcome received. “We are very happy to be able to join the training with the Regional Marpolex in Bacolod City. We really hope that this training will be successful, and we can strengthen our relationship with all the participants,” he said.

The main Marpolex 2024 exercise will be conducted on Wednesday with several scenarios, including oil spill response, search and rescue, and fire-fighting operations. “It is hoped that we can all show good cooperation and communication efforts during the training, so that this Regional Marpolex activity can be carried out safely and successfully,” explained Jon Kenedi.

In addition, Jon Kenedi emphasized the importance of long-term cooperation between the Philippine Coast Guard, the Indonesian Directorate General of Maritime Transportation, and the Japan Coast Guard. “It is hoped that this collaboration can be expanded to involve other countries, especially in the Southeast Asia region,” he added.

The Marpolex exercise has become clear evidence of the three countries’ commitment to maintaining and improving the protection of the marine environment. “Marpolex has become clear evidence of our commitment and active involvement in maintaining and improving the protection of the marine environment,” concluded Kenedi.

June 25, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7408275/ri-dan-filipina-latihan-bareng-buat-tingkatkan-perlindungan-lingkungan-laut)