Tag: Investment consulting

Taiwanese giant Hon Hai Precision Industry Co. Ltd (Foxconn) plans to invest in Indonesia. The chairman of Foxconn, Young Liu, and President Joko Widodo met on Saturday (25/6) at the Bogor Palace. The meeting discussed the follow-up to the previously agreed Memorandum of Understanding related to the investment plans of Foxconn, Gogoro, PT Industri Battery Indonesia (IBC), and PT Indika Energy Tbk in Indonesia on January 21, 2022. According to the records of the Investment Coordinating Board (BKPM), the investment plan is US$ 8 billion or Rp118.4 trillion (exchange rate of Rp14,800), with estimated employment of more than 10,000 people.

            Foxconn Chairman Young Liu expressed his appreciation for the support of President Joko Widodo and the Minister of Investment/Head of BKPM Bahli Lahadalia who will fully facilitate Foxconn’s investment. Foxconn offers a new business model, namely BOL (Build, Operate, Localize) for its investment in Indonesia. Regarding his interest in investing in IKN Nusantara, East Kalimantan, Foxconn also expressed his interest in developing smart cities through an electric bus (e-bus) infrastructure and IoT (Internet of Things) networks.

            Foxconn, Gogoro, IBC, and Indika’s investment plans cover the electric vehicle industry: four-wheeled, two-wheeled, and electric buses; electric vehicle battery industry; and supporting industries: energy storage system, battery exchange station, battery recycling industry, Research & Development (R&D) and training. The agreed collaboration includes the development of a new sustainable energy ecosystem through investment in electric batteries, electric vehicles, and various supporting industries through the BOL cooperation scheme in Indonesia.

June 27, 2022, DetikFinance

(https://finance.detik.com/properti/d-6149263/foxconn-kepincut-bikin-smart-city-di-ikn)

Indonesian President Joko Widodo (Jokowi) and Chinese President Xi Jinping will test the Jakarta-Bandung high-speed train. The trial is planned to be carried out in November 2022. President Director of PT Kereta Cepat Indonesia China (KCIC) Dwiyana Slamet Riyadi explained the electric multiple unit (EMU) circuit is planned to arrive in Indonesia in September. After that, the two heads of state will test the Jakarta-Bandung high-speed train in November.

“This November is a dynamic test, so we plan to test the EMU which has arrived in Indonesia in September. So we hope that later the two leaders of the country, Mr. President Jokowi, and President of China Xi Jinping, will try the EMU from casting yard 4 towards Tegalluar”, Dwiyana Slamet Riyadi said.

The investment progress of this project has reached 84%, the physical progress of 76% of the total. This project is still running on the target. The Jakarta-Bandung high-speed rail project is targeted for operation in June 2023.

June 21, 2022, DetikFinance

(https://finance.detik.com/infrastruktur/d-6138969/november-jokowi–xi-jinping-bakal-jajal-kereta-cepat-jakarta-bandung)

Fresh Factory, an Indonesian cold-chain fulfillment start-up, has secured US$4.5 million in seed funding to expand its business. The early funding round was led by Singapore-based East Ventures with involvement from Indonesian firms PT Saratoga Investama Sedaya, Indogen Capital, Prasetya Dwidarma and Number Capital, US-based Y Combinator, and Singapore’s Trihill Capital. Several angel investors also participated, according to a press release published by East Ventures on Monday. Fresh Factory, according to the release, aims to provide a network of hyperlocal cold-chain fulfillment centers and a fulfillment management system.

            “We are elated to have Fresh Factory as part of East Ventures’ portfolios. Seeing the huge gap in cold-chain solutions and how it has led to many issues of food loss in the supply chain, we believe Fresh Factory will serve as the solution to improve the cold chain logistics for perishable goods and benefit micro, small and medium enterprises [MSMEs],” said Avina Sugiarto, venture partner of East Ventures.

“This fund will accelerate our mission of supporting all the business players in Indonesia, especially SMEs, in driving growth and scaling their businesses,” said Fresh Factory founder and CEO Larry Ridwan.

According to the press release, Fresh Factory has more than 20 warehouses located in cities in Java, Sumatra, Sulawesi, and Bali and plans to use the new funds to expand further in Sumatra and Sulawesi as well as to secondary cities in Java. According to the release, Indonesia’s cold-chain infrastructure has big gaps as development so far has focused on central warehouses, leaving deficiencies in mid-and last-mile logistics, notwithstanding Indonesia’s potential in agriculture and aquaculture. For that reason, cold-chain infrastructure is expected to grow significantly in the near future.

Cold Storage Association (ARPI) chairman Hasanuddin Yasni told The Jakarta Post on Thursday that it expects 32,000 tons of cold storage to be installed this year, up 50 percent from last year’s capacity increase, as the industry expands to accommodate growing production in the marine products and fishery sector.

As information, a 2020 Food and Agriculture Organization (FAO) report ranked Indonesia the second-largest country in marine fishing, after China, with a total capture of 6.74 million tons in 2018. But Indonesia was not among the 10 largest exporters of fish and fish products, a list topped by China with $21.6 billion in 2018, followed by Norway, Vietnam, and India with $12 billion, $8.8 billion, and $7 billion, respectively.

Fresh Factory also has technological solutions integrated into its business, namely geotagging and geolocation for storage, artificial intelligence to forecast and manage warehouse stocks as well as internet-connected devices to monitor freezer and chiller temperatures.

June 28, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/06/28/indonesian-cold-chain-start-up-gets-4-5-million-in-seed-funding.html)

(https://www.thejakartapost.com/business/2022/06/27/cold-storage-to-grow-50-as-fishery-firms-push-for-export-markets.html)

Minister of Maritime Affairs and Fisheries Sakti Wahyu Trenggono held a meeting with a number of representatives of countries and world institutions participating in the 2022 United Nations Oceans Conference (UNOC) event. The meeting was organized by the United Nations and held in Lisbon, Portugal, from Monday (27/6) to Tuesday (28/6). UNOC 2022 in Lisbon raised the big theme ‘Scaling up ocean action based on science and innovation for the implementation of Goal 14: stocktaking, partnerships, and solutions’. Through this theme, conference participants are encouraged to come up with innovative, science-based solutions that are urgently needed in the world that aim to start a new chapter of global action.

During the event, Trenggono met the Assistant Secretary of the United States Department of State’s International and Scientific Affairs Bureau of Marine and Environmental Sciences Monica Medina, and the World Bank’s Managing Director of Development Policy and Partnerships Mari Elka Pangestu.

            “In the meeting, I conveyed what the Indonesian government had done in fulfilling its commitments at the first UNOC in 2017. I also conveyed the action plans and work programs of the Ministry of Maritime Affairs and Fisheries related to supporting marine health. Thank God they gave their appreciation and said they were amazed by the breakthroughs made by the Indonesian government,” said Minister Trenggono.

            Tranggono conveyed three important things related to the blue economy program in Indonesia. These three important things also invite the admiration of the UNOC participants.

First, is the successful expansion of conservation areas by the Indonesian government to support marine health. Indonesia was able to exceed the target of 20 million hectares of conservation areas. Meanwhile, in 2030, Indonesia commits to achieve the target of marine conservation areas covering an area of 32.5 million hectares. The plan is optimistic that it can be achieved because Indonesia has managed to reach an area of more than 28 million hectares, or 86.5% by 2021.

Second, the Indonesian government plans to implement a quota-based measurable fishing policy in all fisheries management areas of the Republic of Indonesia (WPPNRI) through the Ministry of Maritime Affairs and Fisheries. This policy aims to maintain the sustainability of fish populations and encourage equitable economic growth in coastal areas.

Third, I convey the Ocean Love Month (BCL) program, which we initiated to solve the sea’s waste problem. We are currently designing in more detail about this program, in which later in one month fishermen go to sea not to catch fish but to pick up trash in the sea, one of which is plastic.

June 28, 2022, DetikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6151942/di-konferensi-kelautan-dunia-trenggono-ungkap-3-jurus-ekonomi-biru-ri)

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)

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)