Tag: Investment consulting

Posted on

Indonesian Company Ready to Export Electricity to Singapore

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)

Posted on

F1PowerBoat Proves Lake Toba Deserves to Hold an International Event

The Lake Toba PowerBoat Formula 1 Motorboat World Championship (F1H20) was successfully held in Balige, North Sumatra on 24-26 February 2023. Said the Menparekraf Sandiaga Uno, this is proof that this destination is suitable to be the location for various international events.
“The implementation of this event marks the readiness of Lake Toba. So if anyone doubts Lake Toba as the host of a world-class event, we can break this (assumption), said Menparekraf Sandiaga in a press conference after playing the F1PowerBoat race at the F1PowerBoat Media Center located at the Harbor His Majesty King Napitupulu, Balige, Sunday (26/2/2023).
Sandiaga said that the implementation of the F1PowerBoat on Lake Toba also proved that Lake Toba was able to put forward the concept of environmental sustainability. In addition, the implementation of the F1PowerBoat has also succeeded in driving the economy of the people around the Lake Toba area, especially in Balige. Based on the data he obtained, Sandiaga said the total economic impact from the implementation of the F1PowerBoat was estimated to reach IDR 300 billion with a target of visiting up to 25 thousand tourists. In the future, Sandiaga said that his party would increase the presence of international-class events on Lake Toba, starting from film festivals to world music festivals.
“So this event will trigger more activity and investment (in Lake Toba) so that we can revive the economy and open up business and employment opportunities,” said Sandiaga.
In addition, Deputy Minister of Tourism and Creative Economy Angela Tanoesoedibjo said the PowerBoat Formula 1 Motorboat World Championship (F1H20) was able to provide a multiplier effect for the surrounding community. F1 Powerboat itself is enjoyed by 180 million pairs of eyes through various media including social media, broadcasting, and so on. Through the most prestigious motorboat racing event in the world, Lake Toba is expected to become an international conversation.
In this racing series, a racer from Stromoy Racing, Bartek Marszalek won first place after bulldozing the 2.2 km circuit for 18 laps. With this result, Marszalek is entitled to 20 points which is an important capital to wade through the next seven rounds in the 2023 F1 Powerboat season.

February 27, 2023, detikTravel
(https://travel.detik.com/travel-news/d-6590888/f1powerboat-jadi-bukti-danau-toba-layak-gelar-event-internasional)
(https://travel.detik.com/travel-news/d-6591338/ini-multi-efek-f1h2o-bagi-masyarakat-danau-toba)

Posted on

Indonesia Exports 1,502 Tons of Swallow’s Nest Throughout 2022 Value Translucent IDR 23 Trillion

Swallow’s nest (SBW) is one of the commodities exported by Indonesia. Throughout 2022, Indonesia has exported 1,502 tons of swallow’s nest to various countries. Head of the Center for Animal Quarantine and Animal Biosafety, Wisnu Wasesa Putra, said that throughout 2022, the export value of swallow’s nests will reach around IDR 23 trillion.
“We are in the range of IDR 23 trillion. Maybe a clarification, yes. At that time, the Minister of Trade said that the SBW (export value) was up to IDR 500 trillion, that was huge,” he said after a press conference at the Ministry of Agriculture Building, South Jakarta, Wednesday (23 /2/2023).
For information, China is one of the biggest export destinations for swallow’s nests (SBW) for Indonesia. As of December 2022, Indonesia exported 19% or around 288 thousand kilograms (kg) of swiftlet nests to China. However, it is not only China that is the export destination for swallow nests. There are 23 other export destination countries.
“Currently besides China there are 23 destination countries for SBW. And indeed our challenge at this time is to convince ethnic Chinese even though they are in America, in Australia. For Asian markets, the highest exports are to Hong Kong, Vietnam, Malaysia. (Swallow’s nest) some are consumed in that country and some are exported back to China,” said Wisnu.
The ten largest SBW export destinations as of October 2022, namely: Hong Kong: 596,994 kg, China: 223,285 kg, Vietnam: 193,038 kg, Malaysia: 39,593 kg, Singapore: 36,741 kg, United States: 24,168 kg, Taiwan: 7,430 kg, Australia: 2106 kg, Canada: 1655 kg, France: 217 kg.

February 22, 2023, detikFinance
(https://finance.detik.com/industri/d-6582400/ri-ekspor-sarang-burung-walet-1502-ton-sepanjang-2022-nilainya-tembus-rp-23-t)

Posted on

History! Indonesia Exports Electric Vehicles to International Markets

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)

Posted on

Jokowi Sets a Record for Passing the Achievements of 5 Indonesian Presidents

The current account set a new record this year. For the first time in 42 years, Indonesia’s current account recorded a surplus of US$ 13.22 billion. When compared with the Gross Domestic Product (GDP), the current account this year is equivalent to 1% of GDP. This record is the best since 2009 (1.97% of GDP). In the fourth quarter of 2022, the current account touched US$ 4.27 billion or 1.3% of GDP.
The impressive record for the current account was supported by a surge in exports. The Russo-Ukrainian war that erupted almost a year ago soared energy and food commodity prices. Indonesia also has a windfall due to the soaring prices of coal, crude palm oil (CPO), and nickel. Exports of goods were recorded at US$ 292.55 billion in 2022 while imports were recorded at US$ 229.87 billion. Thus, the goods export-import balance recorded a surplus of US$ 62.68 billion. The amount of this export makes the current account balance fattening.
The current account remained swollen even though the service import-export balance recorded a large deficit of US$ 20.04 billion. This value has increased dramatically compared to 2021 which was recorded at US$ 14.6 billion. The big record in the current account also reaffirms Indonesia’s heavy dependence on commodities.
In Indonesia’s history, only four times has Indonesia been able to record a current account surplus of more than US$ 10 billion, namely in 2006, 2007, 2010, and 2022. When compared to GDP, Indonesia’s current account also recorded a high surplus during the commodity boom (2005-2010). The current account in 2006 was recorded at 2.98% of GDP, in 2007 it was recorded at 2.43%, and in 2009 it was recorded at 1.97% of GDP.
These periods were the times when Indonesia experienced a windfall due to the commodity boom. Preferably, when commodities fall, the current account will fall or be in deficit. An example is from 2013-2019. The average current account has indeed penetrated 4.16% in the 1998-2003 period. However, the high current account is due more to the small imports. The uncertain economic situation after the collapse of the New Order and the beginning of the Reform Era meant that the pace of the economy was not moving fast enough and that imports slumped.

February 20, 2023, CNBC Indonesia
(https://www.cnbcindonesia.com/market/20230220154434-17-415335/soal-ini-jokowi-cetak-rekor-lewati-capaian-5-presiden-ri)

Posted on

Indonesia’s Digital Startup Gets an Injection of Rp 720 billion, Aimed at the Global Market

Digital startup from Indonesia, Privy Digital Identity develops its business wings to the international market. To support this, Privy has prepared a funding of US $ 48 million dollars. The equivalent funding value of Rp 720 billion (exchange rate: Rp. 15,000) was obtained from Privy’s partnership with Okta Ventures. Okta Ventures itself is currently participating in this C series investment round. The investment was led by the TRC, a global investment company.

Privy CEO, Marshall Pribadi said, cooperation was also carried out with Auth0. Privy which is a startup of digital signatures authentication is ready to improve the safety of the authentication of OKTA and Auth0 clients, and provide more perfect services.

“Digital identity and Privy digital signatures are certified with solutions from OKTA and Auth0 in managing safe and flawless digital identity authentication will be a powerful tool in providing trust to those who run their businesses digitally,” he said in a written statement, Monday (2/13/2023).

Meanwhile, Senior Director of Okta Ventures Austin Arensberg, said that his party welcomed and was enthusiastic about the cooperation carried out.

“We are very happy and support the Privy team because they continue to innovate in terms of client identity and utilizing the role of Okta which is growing in Asia.”

Previously reported, Privy, which is a new digital trust startup in developing his business in Australia. Privy reportedly opened a branch in the country of kangaroos. With this investment, Privy is ready to develop me wider to the international market.

February 13, 2023, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6566568/dapat-suntikan-rp-720-m-startup-tandatangan-digital-ri-bidik-pasar-global)

Posted on

5 Chinese Projects in Indonesia with Fantastic Value

China is involved in large projects in Indonesia. The large projects built generally use the Government Cooperation Scheme (G2G) or Business Cooperation (B2B). Even in January, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said that China successfully shifted Singapore’s position as the largest investor in Indonesia in the fourth quarter of 2022. The amount of China’s investment in Indonesia in that period was recorded at US $ 3 billion. Then it was followed by investments from Singapore with US $ 2.7 billion, Hong Kong US $ 1.6 billion, Malaysia US $ 1.1 billion, and the United States of US $ 0.9 billion. So, what are the projects in Indonesia financed by China? The following is a list of giant Indonesian projects financed by China.

  1. Jatigede Reservoir

The project, which was initiated since the era of President Soekarno, began with water in 2015. The watering event was inaugurated by the Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono. The construction of the Jatigede Reservoir project has an investment value of Rp 4 trillion through APBN funds and Exim China Bank loans of 90%.

  • Medan-Kualanamu toll road

The 17.8 km toll road cost Rp 1,347 trillion. Of the total construction of Rp 1,347 trillion, 90% of them came from China loans through Exim China Bank and 10% of the State Budget. The construction of this toll road began in 2012. The toll road construction was inaugurated by the Minister of Public Works Djoko Kirmanto.

  • Jakarta Bandung Fast Train

China is interested and offers advantages from Japan from the dimensions of development, speed, to financing. The Indonesian government finally chose China to work on the Jakarta-Bandung fast train project. Then China Development Bank will continue loans to a company formed on the joint venture of China and Indonesia. In 2017 the CDB signed a loan agreement worth US $ 3.96 billion with PT Railroad Indonesia China (KCIC) which was 60% shares owned by Indonesia and 40% of China to work on this fast train project.

  • Morowali Industrial Estate

Chinese investment that enters Indonesia with a significant value is the Morowali Industrial Estate. China recorded investing in Indonesia worth US $ 1.63 billion, to develop industrial estates there. This synergy commitment was realized through the signing of the MoU between Tsingshan Group and Delong Group with PT Indonesia Morowali Industrial Park.

  • PT Gunbuster Nickel Industri (GNI)

PT GNI is a nickel ore processing company that has been operating in North Morowali, Central Sulawesi (Central Sulawesi). This smelting company was established in 2019. PT GNI implemented the Rotary Kiln Electric Furnace (RKEF) technology process by developing 25 production lines. Produces 1.9 million Nickel Pig Iron (NPI) per year.

February 13, 2023, detikFinance(https://finance.detik.com/infrastruktur/d-6566159/5-proyek-china-di-indonesia-dengan-nilai-fantastis)

Posted on

BRI’s profit rose 67% to IDR 51 trillion in 2022

PT Bank Rakyat Indonesia Tbk. (BBRI) managed to record impressive performance in 2022 by scoring a profit of Rp 51.5 trillion. The profit was recorded at a height of 67.15% compared to the achievement of 2021. BRI President Director Sunarso said, one of which was not separated from the strategic response by the company. Cost of Fund efficiency is reflected in an increase in cheap funds or CASA which rose to 66.76% in 2022 from the previous year 63%.

“This incision is the success of various efficiency programs, especially the emphasis of cost of funds. This is what reduces the cost of funds to 1.87%,” he said, Wednesday (8/2/2023).

In 2022 the total BRI credit distribution reached Rp 1,139, 08 trillion, while third party funds (DPK) grew 14.85 percent to 1,307.88 trillion. BRI total assets reached Rp 1,865.64 trillion, up 11.18 percent. BRI recorded interest income of Rp 151.8 trillion, up 5.8 percent on an annual basis. Of this amount, BRI net interest income (Net Interest/NII) increased from Rp114.1 trillion in the previous year which was Rp124.6 trillion or an increase of 9.2 percent yoy. From the additional opinion of the clean premium, BRI has improved the increase in operational obstruction to Rp126.2 trillion.

Based on the company’s important ratio, BRI also recorded an impressive Bottom Line performance throughout 2022. Noted, the rate of return on assets (ROA) rose 104 basis points (BPS) to 3.76%. Then, the rate of return on equity (ROE) grows faster, which is 406 bps to 20.93%. ROE is a yield printed by the company for shareholders. ROE is determined by the company’s ability to produce profitability or profit margins, asset productivity to generate income, as well as managing the use of debt optimally by the company.

February 8, 2023, detikFinance

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

Posted on

Indonesia’s GDP Growth Reaches Nine-Year High

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)

Posted on

Indonesia Cooperated China Working on a Bridge Worth Rp 1 Trillion

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)