Tag: investment landing

Indonesia officially conveyed the desire to join as a member of the Brits Block. This was conveyed by the Indonesian Minister of Foreign Affairs (Foreign Minister) Sugiono in the BRICS Plus High Level Conference (Summit) in Kazan, Russia. Through the announcement on Thursday (10/24/2024), the Indonesian process to join as a member of BRICS led by Russia has begun.

“The joining of Indonesia to BRICS is a manifestation of an active -free foreign policy. It does not mean that we join certain camps, but we actively participate in all forums,” Sugiono said, quoted Friday (10/25/2024).

“We also see the priority of BRICS in harmony with the Red and White Cabinet work program, among others related to food and energy security, eradication of poverty or the promotion of human resources,” he added.

In addition, Sugiono also proposed a few concrete steps to strengthen BRICS and Global South Cooperation. There are at least three points delivered.

First, uphold the right to sustainable development, where developing countries need policy space, while developed countries must meet their commitment. Second, supports the reform of multilateral systems to be more inclusive, representative, and in accordance with current reality. International institutions must be strengthened and have adequate resources to meet their mandate. Third, it becomes a force for unity and solidarity among the Global South countries. BRICS is felt to be able to function as an adhesive to strengthen cooperation among developing countries.

“We see BRICS can be the right vehicle to discuss and advance the shared interests of South Global,” said Sugiono. “But we also continue our involvement or engagement in other forums, as well as continuing discussions with developed countries.”

Indonesia has previously been recognized as one of the 13 BRICS countries. Besides Indonesia, 12 other countries are Algeria, Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.

BRICS itself is only allowed to be involved and participate selectively in BRICS matters. They remain participants in other international initiatives but without full commitment to the block. The new BRICS partner does have the potential to become a full member in the future. But they were not immediately inaugurated for certain reasons that were only known by the Block of the leadership of Vladimir Putin.

BRICS is an informal group that initially consists of Brazil, Russia, India, China and South Africa. This group was first initiated in 2006 to discuss the latest global issues. Its membership was expanded in 2023 with the joining of Ethiopia, Iran, Egypt, and the United Arab Emirates (UAE).

International Business and Trade Law Expert, Ariawan Gunadi assessed that by joining BRICS Indonesia could expand its export market. This decision, he said, could be an alternative when some of Indonesia’s superior products get export obstacles to Europe. Joining BRICS Indonesia can also get access to investment and funding infrastructure projects. According to him, access to funding can occur because BRICS has its own financial institution, namely New Development Bank (NDB). In addition, Indonesia can take advantage of its comparative advantage compared to other members. According to him, Indonesia can also rearrange its international trade policies and strengthen its diplomatic role.

October 25, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20241025141434-4-583071/untung-buntung-indonesia-masuk-geng-rusia-china)

(https://www.cnbcindonesia.com/news/20241025115442-4-583021/ri-resmi-daftar-keanggotaan-brics-satukan-kekuatan-dengan-rusia-china)

The Ministry of Industry (Kemenperin) records the export value of the pharmaceutical and natural drug industry through US $ 639.42 million or equivalent to IDR 9.9 trillion (exchange rate of IDR 15,503) during the January-September 2024 period. While in the second quarter of 2024, the industry recorded the industry growth of 8.01% and contributed to the non-oil and gas processing industry reached 18.52%.

Head of the Industrial Services Standardization and Policy Agency (BSKJI), Andi Rizaldi said the development of the industry this year also showed a passion. The Pharmacy and Natural Medicine Industry Group is one of five industrial subsectors who experienced the highest expansion in the release of the Industrial Trust Index in September 2024.

“The development of the pharmaceutical industry, chemical drugs and traditional medicines still has good prospects for the future. Thus, the development of the natural medicinal industry in Indonesia needs to continue to be supported and improved in order to be able to compete in the global market with a strong synergy between various stakeholders such as the government , industry, academics, and research institutions, “he said in a written statement, Friday (10/18/2024).

He explained that the Ministry of Industry also continued to play an active role in supporting the policy of developing natural drugs, especially in the production process and manufacturing technology. One of them, through the construction of the House of Wellness which is a natural drug production facility owned by the Ministry of Industry under the Work Unit of the Center for Standardization Center and Pharmaceutical Chemical and Packaging Industry Services (BBSPJIKFK).

At present, there are several types of natural medicinal industry companies in Indonesia, namely small traditional medicine (UKOT), Micro Medicine (UMOT), Natural Material Extract Industries (IEBA) and Traditional Medicine Industries (IoT), which produce 19 thousand Jamu products, 99 standardized herbal medicine products and 33 phytofarmaka products.

“The Ministry of Industry continues to encourage and provide guidance so that small industries can move up the class, so that the production of natural drugs can be increased in order to strengthen the pharmaceutical industry in Indonesia,” he added.

Meanwhile, Head of BBSPJIKFK Siti Rohmah Siregar said that his party was ready to facilitate the natural medicinal industry in Indonesia with the House of Wellness facility to encourage and accelerate the independence of the Indonesian Natural Medicine Industry Industry. According to him, the facility has been equipped with modern technology that is able to support the process of production of natural medicinal drugs ranging from processing simplicia, extraction, to formulations and packaging.

October 18, 2024, detikFinance

(https://finance.detik.com/industri/d-7593765/ekspor-industri-farmasi-dan-obat-bahan-alam-tembus-rp-9-9-t)

Elected President Prabowo Subianto – Gibran Rakabuming Raka spoke about his belief in achieving an economic growth target of 8 percent per year.

Senior Economist Indef Dradjad Wibowo, reported by the media, said that in history, Indonesia had indeed experienced economic growth five times by 8 percent or more. The high economic growth occurred in 1968 (10.92 percent), 1973 (8.10 percent), 1977 (8.76%), 1980 (9.88%), and in 1995 (8.22 percent) . From its analysis of the trend of Indonesia’s economic growth from 1961-2023, the average economic growth of our economic is 5.11 percent per year, although in general Indonesia always has an opportunity for economic growth which reaches 8 percent.

Why did this happen? The current industrialization does result in investment and good capital accumulation. This investment disbursement has encouraged the increase in fiscal space that can be used as government spending, raising the volume of our export commodities, and ultimately increasing the ability of public consumption.

But on the other hand, opportunities for large economic growth and cannot be maximized are also formed by several problems. Indonesia still has a long, complicated bureaucratic chain, and also tends to be corrupt. The quality of the workforce produced by the world of education is often not absorbed because of skills that are not suitable for industrial needs. State intervention through economic policy, often too complicated in implementation, causes microeconomic actors who prefer the informal sector as a source of their livelihood. Practically in this perspective, we are waiting for at the same time warning the Prabowo-Gibran government with the Asta Cita that they are carrying, can cut the structural obstacles that exist.

Economic growth of 8 percent every year is indeed important because with this achievement Indonesia can be separated from the middle income trap (MIDDLE INCOME TRAP/MIT) and towards developed countries. Among the G20 countries, Indonesia is included in the early rows of countries with economic growth trends above 5 percent, under China and India.

What can be achieved to achieve 8%economic growth?

Real social justice. Prabowo-Gibran economic instruments in the upcoming policy package must remain prudent (careful) and focus on the inclusive economic path that empowering all sectors. This is important because the risk of miscalculation in translating high economic growth targets will cause social division that threatens the integration of our nation.

Inclined Economic Urgency. Chasing economic growth with a fair and equitable inclusive economy must be followed by the persuasive ability of the upcoming government to invite all components of the nation to be involved more in this project. Form a concise, clean, and agile bureaucracy. Third, the creation of economic added value through downstreaming and manufacturing investment must also produce new jobs. Creating a strong entrepreneurship climate, with adequate policy support to reduce unemployment.

October 18, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/opini/20241018113127-14-580767/target-pertumbuhan-ekonomi-8-prabowo-gibran-ilusi-atau-realistis)

PT Aneka Tambang Tbk together with companies from China and South Korea will build an electric vehicle (EV) battery factory. The investment value is around IDR 80 trillion. Minister of Investment/Head of Investment Coordinating Board (BKPM) Rosan Roeslani said talks with Korean and Chinese companies were underway.

“We encourage the (factory) EV battery. We have talks with two even at this time at this time we are final stage but maybe I don’t say it first, but this is a Korean and Chinese company,” said Rosan, at the Ministry of Investment/BKPM office , South Jakarta, Tuesday (10/15/2024).

Rosan said, within 1-2 months the government will complete the agreement with the two companies. Thus, policy implementation can be implemented immediately.

“The investment is almost IDR 80 trillion, more or less yes US $ 5.5 billion. So that is also a very significant investment and there are actually two. That is cooperation with our BUMN, cooperation with PT Aneka Tambang so that God willing can be completed, “He said.

In addition to information, previously the Deputy for Investment and Mining Coordinating Ministry for Coordinating Ministry of Maritime Affairs and Investment Septian Hario Seto revealed the potential for large investment can enter Indonesia for the construction of nickel -based electric vehicle battery ecosystems. The investment value is estimated at US $ 20 billion- US $ 25 billion or equivalent to IDR 312 trillion – IDR 390 trillion (exchange rate of IDR 15,600).

Seto said, the value of the investment is a potential that Indonesia can get in the next 5 years. This investment is instilled from a consortium of companies involving many countries such as China to Europe.

“But for nickel for the battery, this room is still there. We see that there may still be around, our estimates are around US $ 20-25 billion more investments that can enter this battery sector in the next 5 years,” explained Seto in the forum Discussion at Le Meridien Hotel, Jakarta, Wednesday (9/10/2024).

October 15, 2024, detikFinance(https://finance.detik.com/industri/d-7589639/ri-gandeng-china-korea-mau-bangun-pabrik-baterai-mobil-listrik-rp-80-t)

The Central Statistics Agency (BPS) noted that Indonesia’s trade balance in September was again in surplus by US$ 3.26 billion. This achievement is a surplus for 53 consecutive months since May 2020.

Previously, the national trade balance in August was in surplus on a monthly basis of US$ 2.40 billion. BPS reported that the export value in September was recorded at US$ 22.08 billion, down 5.80%, while for imports, BPS noted that in September 2024, the total import value reached US$ 18.82 billion or down 8.91% from August 2024.

“In September 2024, the goods trade balance was recorded in surplus of US$ 3.26 billion or up US$ 0.48 billion on a monthly basis, thus Indonesia’s trade balance has recorded a surplus for 53 consecutive months since May 2020,” said Acting Head of BPS Amalia A. Widyasari at her office, Tuesday (15/10/2024).

“The monthly decline in import value was driven by a decline in the value of non-oil and gas imports and also a decline in the value of oil and gas imports,” said Amalia.

Amalia added that the trade balance surplus in September 2024 was higher compared to the previous month but lower compared to the same month last year.

“The surplus condition in September 2024 was supported by a surplus in non-oil and gas commodities of US$ 4.62 billion and the commodities that contributed the first surplus were mineral fuels hs27 animal and vegetable fats and oils HS 15 and iron and steel or hs72,” concluded Amalia.

October 15, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7588617/neraca-perdagangan-ri-surplus-53-bulan-beruntun)

(https://finance.detik.com/berita-ekonomi-bisnis/d-7588753/impor-ri-september-turun-8-91-jadi-us-18-82-miliar)

Indonesia has the 5^th largest airport operator in the world after the birth of PT Angkasa Pura Indonesia or InJourney Airports. InJourney Airports is a merger of PT Angkasa Pura I or AP I and PT Angkasa Pura II or AP II. President Director of PT Angkasa Pura Indonesia Faik Fahmi said that this step was a major breakthrough in the aviation and airport industry sector in Indonesia and would be a solution to solve problems in the aviation industry in Indonesia.

“Through this merger, InJourney Airports now manages 37 airports spread across the western, central, and eastern regions of Indonesia, and makes InJourney Airports the 5th largest airport management company in the world with more than 170 million passengers per year,” he told CNBC Indonesia, quoted Thursday (10/9/2024).

The formation of InJourney Airports, which is also a form of transformation in the airport management sector, aims to optimize the national airport system, increase the potential of the economic and tourism sectors, and logistics in Indonesia. He explained that in preparing for the integration of this airport operator, his party had completed the alignment and harmonization of regulations and standard operating procedures (SOP) through the omnibus regulation strategy, IT system governance, finance, and airport operations, thus creating an efficient and synergistic aviation ecosystem.

This optimism is supported by 3 pillars and 1 enabler, namely Premises (prime quality airport infrastructure and facilities), Process (close collaboration between InJourney Airports and the aviation ecosystem), People (HR in the service sector that is of high quality and meets global standards), and supported by the implementation of various technological innovations and digitalization as Enablers.

This merger is based on the basis that Indonesia has the main potential to become an aviation and tourism market. There are a number of factors that have the potential to make Indonesia a major market for aviation and tourism, including Indonesia’s condition as the largest archipelagic country in the world with the largest population in Southeast Asia and a growing consumer class, strategic geographical position, diverse natural and cultural beauty, and abundant natural resources. These factors affect the number of tourism contributions, domestic and international passengers, foreign tourists, and air freight cargo that exist and are managed in Indonesia. This step is also in line with the government’s vision to improve domestic connectivity and accessibility, which is expected to support overall economic growth and increase the competitiveness of the tourism sector in Indonesia.

“There are a number of factors that have the potential to make Indonesia a major market for aviation and tourism, including Indonesia’s condition as the largest archipelagic country in the world with the largest population in Southeast Asia and a growing consumer class, strategic geographical position, diverse natural and cultural beauty, and abundant natural resources,” wrote management. These factors affect the number of tourism contributions, domestic and international passengers, foreign tourists, and air freight cargo that exist and are managed in Indonesia.

This airport integration will also make PT Angkasa Pura Indonesia, previously known as PT Angkasa Pura II, the recipient company of the merger as the 5th largest airport manager in the world with 36 airports throughout Indonesia which are estimated to serve 550 million-700 million passengers by 2045. The management said that airport integration also has the potential to increase domestic and international air connectivity supported by an integrated planning system including coordination in opening new flight routes.

October 14, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20241014190834-17-579588/indonesia-punya-operator-bandara-terbesar-nomor-lima-di-dunia)

Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan inaugurated the start of the first phase of production and expansion plans for the production facility for cathode materials for electric vehicles (EV) batteries based on Lithium Iron Phosphate (LFP) by PT LBM Energi Baru Indonesia, in the Kendal Industrial Area, Central Java. This is the result of a strategic investment partnership between the Indonesia Investment Authority (INA) Consortium and Changzhou Liyuan New Energy Technology Co., Ltd., one of the world’s largest LFP producers. The investment is expected to play an important role in meeting global demand for LFP batteries, which is driven by the increasing penetration of electric vehicles (EVs) worldwide.

“We must create added value in our own country, build a strong downstream industry, and position ourselves as a key player in the global supply chain,” said Luhut, quoted from the official statement of the Coordinating Ministry for Marves, Tuesday (8/10/2024).

The planned joint investment is US$200 million to increase production capacity from 30,000 tonnes in phase I to 90,000 tonnes in phase II, which is expected to start in 2025. LFP is one of two key chemistries in lithium-ion batteries, alongside Nickel Cobalt Manganese (NCM). Known for its cost-effectiveness, LFP is well-suited for electric vehicles and energy storage systems.

Bain’s EV Battery Ecosystem study1 shows that global battery demand is expected to grow about four-fold between 2023 and 2030, driven by increasing EV adoption, positioning LFP to play a key role in meeting that demand. By 2030, NCM is projected to account for about 50% of lithium-ion battery demand, while LFP is expected to account for about 35%, with both expected to remain central to future battery industry growth.

The strategic partnership focuses on LFP cathode materials that represent the highest added value in the battery value chain, allowing the facility to capitalize on the opportunities presented by this growing market. By 2030, Indonesia is expected to serve a market worth around US$10 billion in LFP cathode active materials, making a significant contribution to the global transition to clean energy. This investment is also a testament to Indonesia’s attractiveness as a country for supply chain downstreaming.

Meanwhile, Changzhou Liyuan CEO Shi Junfeng stated that PT LBM Energi Baru Indonesia is the first cathode producer outside of China, whose initial operation is of great significance to enhancing the security of supply of the global new energy supply chain.

In addition, this cooperation is also another important achievement of the comprehensive strategic cooperation between China and Indonesia. The proposed strategic investment in LBM New Energy (AP) Ptd. Ltd. also fully demonstrates INA’s forward-looking vision and long-term commitment to the global new energy industry.

“This project will enable Changzhou Liyuan and INA to achieve closer strategic cooperation. In the future, Changzhou Liyuan will make meaningful contributions to the development of Indonesia and the global new energy industry,” he said.

October 8, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20241008133849-4-577871/ri-china-makin-akrab-garap-baterai-litium-bukti-terbaru-dari-kendal)

The Ministry of Public Works and Public Housing (PUPR) has completed a series of infrastructure developments during the 10-year term of President Joko Widodo. The infrastructure varies from irrigation to toll roads.

PUPR Minister Basuki Hadimuljono said that there are two main roles of infrastructure. First, infrastructure as a means of production and supporting economic growth, such as roads, toll roads, energy, and dams. The second role is to fulfill basic services, such as the provision of drinking water, roads and bridges, housing, sanitation, and irrigation.

“Basic infrastructure itself is an important capital to support economic infrastructure,” said Basuki, in a written statement, Thursday (3/10/2024).

1. Dams to Irrigation

In the field of water resources, the PUPR Ministry through the Directorate General of Water Resources has successfully completed the construction of 53 dams out of 61 dams built. The dams that have been completed include the Sepaku Semoi Dam, Ameroro Dam, Leuwikeris Dam, Way Sekampung Dam and Kuningan Dam. In line with that, in the 2014-2024 period, the PUPR Ministry built 1,228,440 ha of irrigation networks and rehabilitated 4,647,547 ha of irrigation networks. In addition, the PUPR Ministry also completed 1,371 reservoirs, 493 sediment and lava controllers, 2,154 km of flood controllers and coastal protection.

2. Toll Roads

In the field of connectivity, the PUPR Ministry together with the Toll Road Business Entity (BUJT) have completed 2,432 km of toll road construction. One of which was recently inaugurated by President Joko Widodo is the Stabat-Tanjung Pura Toll Road and the 72 km Tebing Tinggi-Serbelawan-Sinaksak Toll Road which is part of the Trans Sumatra Toll Road.

“The presence of toll roads connected to productive areas such as industrial areas, tourism, airports, and ports will be able to reduce logistics costs and increase the competitiveness of domestic products,” he said.

3. Roads and Bridges

Furthermore, the PUPR Ministry through the Directorate General of Highways has also completed 5,999 km of new road construction, 125,904 m of bridge construction, 583 suspension bridges and 27,673 m of flyover/underpass construction.

4. Drinking Water and Sanitation

In the field of settlements, the PUPR Ministry through the Directorate General of Human Settlements has completed the Drinking Water Supply System (SPAM) of 36,380 ltr/sec, so that access to clean drinking water reaches 93% of the total population. Then, handling of 94,321 ha of residential areas, handling of waste and sanitation of 13.7 million families, so that access to clean sanitation reaches 82% of the total population.

5. State Border Crossing Posts

In addition, the construction of Integrated State Border Crossing Posts has also been carried out in 15 areas, as well as the construction, rehabilitation or renovation of 5,939 educational, sports and market facilities. On Wednesday (2/10), President Jokowi inaugurated 7 PLBNs, namely the Napan PLBN in NTT at a cost of IDR 128 billion, the Serasan PLBN in Natuna Kepri at a cost of IDR 145 billion, the Jagoi Babang PLBN in West Kalimantan at IDR 226 billion, the Sei Nyamuk PLBN in North Kalimantan at IDR 248 billion, the Labang PLBN in North Kalimantan at IDR 210 billion, the Long Nawang PLBN in North Kalimantan at IDR 243 billion, and the Yetetkun PLBN in South Papua at IDR 146 billion.

6. Housing

Next, in the housing sector, the PUPR Ministry through the Directorate General of Housing has built 10.2 million housing units with APBN contributions through the One Million Houses Program. Then there are 1.49 million housing units through the Self-Help Housing/Self-Help Housing Stimulus Assistance (BSPS) program, 40,347 special housing units and 71,731 flats.

October 1, 2024, detikFinance

(https://finance.detik.com/infrastruktur/d-7570961/daftar-infrastruktur-yang-dibangun-dalam-10-tahun-pemerintahan-jokowi)

(https://finance.detik.com/infrastruktur/d-7567279/10-tahun-jokowi-jadi-presiden-521-infrastruktur-transportasi-sudah-terbangun)

Indonesia and Malaysia continue their agreement to abandon the United States (US) dollar and switch to the use of local currencies in trade and investment transactions. This agreement was marked by the renewal of the local currency bilateral swap agreement (LCBSA) by Bank Indonesia (BI) and Bank Negara Malaysia (BNM), Friday (27/9/2024). The meeting was held in Jakarta. Bank Indonesia was represented by Governor Perry Warjiyo and BNM was represented by Dato’ Seri Abdul Rasheed Ghaffour and his staff.

“Bank Indonesia views the increased cooperation in the local currency bilateral swap agreement (LCBSA) with BNM as representing an important role of international cooperation as part of Bank Indonesia’s policy mix that supports key policies in the fields of monetary, macroprudential, and payment systems, while at the same time contributing to the development of local currency-based transactions in both countries,” Perry said in a press release.

The renewal of the LCBSA allows for the exchange of local currencies between the two central banks up to RM24 billion or IDR82 trillion for the next five years. In the bilateral meeting, they also discussed policy directions covering macroeconomics, monetary and financial, payment systems and digitalization, and strategies to advance Islamic finance.

“As trade and financial interconnection between Malaysia and Indonesia increases, we welcome the agreement to continue cooperation with BI through the renewal of this LCBSA agreement. The LCBSA cooperation complements the ongoing local currency transaction (LCT) cooperation and is currently the main scheme in settling trade and investment transactions in each country’s currency,” explained BNM Governor Dato Seri’ Abdul Rasheed Ghaffour.

The renewal of the BI and BNM LBCSA cooperation is a shared aspiration of both parties after the LCBSA cooperation was first implemented in 2019 and extended in 2022 and is part of a continuous effort to strengthen the cooperation between the two central banks that has existed for a long time.

September 27, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7559165/pertamina-grand-prix-of-indonesia-jadi-ajang-kebanggaan-masyarakat-lombok)