Tag: investment landing

Electric vehicle (EV) company PT Mitra Motor Group (MMG), a subsidiary of coalminer PT Indika Energy, created a joint venture (JV) with EV component producer Foxteq Singapore on Sept. 22. According to an information disclosure released on Friday, the JV will be called PT Foxconn Indika Motor (FIM), which is licensed to build EVs with four wheels or more, produce batteries and provide management consulting services.
“MMG’s participation in FIM is the company’s step toward expanding its business activities into the electric vehicle sector, especially four-wheeled electric vehicles, in Indonesia,” Indika Energy corporate secretary Adi Pramono said in the disclosure.
Focusing on manufacturing commercial electric cars and batteries, the JV was followed by an investment of Rp39 billion (US$2.5 million) from MMG, equivalent to 60 percent of the paid-up capital. An affiliation of Hon Hai Technology Group, known as Foxconn, Foxteq Singapore paid in capital of Rp 29 billion, the equivalent of 40 percent of the paid-up capital.
Indika Energy director and group chief investment officer Purbaja Pantja said that the company saw huge potential in EV development in Indonesia. “This collaboration will create a comprehensive electric vehicle ecosystem that aims to support Indonesia in becoming one of the leading electric vehicle and battery ecosystem developers,” Purbaja said.
Foxconn battery strategy head Troy Wu said that this JV showed the firm’s commitment to developing a sustained EV ecosystem in the country. “Indonesia is the largest economy in Southeast Asia and holds the current G20 presidency and the next ASEAN chairmanship, and has committed to an ambitious net-zero emission target,” Wu added.
Previously, another Indika Energy EV manufacturing arm PT Ilectra Motor Group (IMG) launched the indigenous fully electric Alva One Motorcycle, which will be manufactured in a factory in Cikarang, West Java. In order to develop the two-wheeler brand and its supporting ecosystem, IMG raised a total of US$7.5 million in May from Alpha JWC Ventures, Horizon Ventures, equal to 21.4 percent of the company’s shares, while Indika Energy added another $7.5 million.

September23, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/23/indika-foxconn-sign-jv-agreement-on-ev-factory.html?)

Diversified conglomerate Astra International has completed a transaction to acquire a stake in private lender Bank Jasa Jakarta (BJJ) for Rp 3.88 trillion (US$259 million) with a view to forming its own digital bank. The transaction was done through Astra subsidiary PT Sedaya Multi Investama, also known as Astra Financial, alongside WeLab Sky, a consortium led by Hong Kong-based fintech platform WeLab, with each entity to own 49.56 percent of BJJ.
“BJJ as a digital bank will complement many financial products and services that we could offer to our customers,” Astra financial director in charge Suparno Djasmin said in a statement on Monday.
Astra’s acquisition comes after a wave of new digital banks in the country, like GoTo-backed Bank Jago, CT Corp-backed Allo Bank and Sea Group-backed Sea Bank. Digital banks have gained traction in Indonesia, where their investors look to capitalize on the country’s large market with consumers who are accepting of the fintech industry.
Simon Loong, founder and group CEO of WeLab, said the acquisition would allow the fintech firm to expand its digital bank services beyond Hong Kong. In 2018, WeLab partnered with Astra to form a fintech lending company, PT Astra WeLab Digital Arta.
“Our partnership with Astra will support our strategic focus to increase our cooperation and business with partners in expanding the scale and reach to strengthen our network in pan-Asia fintech platforms,” Simon said in the same statement.

September20, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/20/astra-invests-259m-in-bjj-to-form-digital-bank.html?)

South Korea’s Jeju Air has inked a deal with the North Sulawesi administration to offer direct flights between Manado and South Korea. Jeju Air CEO Kim E-bae and North Sulawesi Governor Olly Dondokambey signed the agreement at the Indonesian ambassador’s residence in Seoul on Friday.
“I’m very grateful because we are sure that our company can help with Korean and Indonesian economic development. We will try our best to open direct flights to Manado, Bali, Lombok, Jakarta and Yogyakarta,” Kim said, noting that such flights were in the pipeline.
Olly said North Sulawesi was well situated for the deal, being only five hours by plane from South Korea, and he expressed hope that the flight route could boost tourism for both North Sulawesi and South Korea.
“What makes North Sulawesi ideal is how relatively close it is to South Korea. North Sulawesi’s location and geostrategy offer benefits for water transportation to and from Bitung Harbor, which is not far from Sam Ratulangi Airport. Manado people love to travel. So, this deal is beneficial to both parties. I hope Mr. Kim and the Busan Authority can come to North Sulawesi in the near future to see other potential projects we can work on together because Manado and South Korea have a lot of similarities. For example, you have a lot of ginseng plants, and liquors too,” said Olly.
Tourism and Creative Economy Minister Sandiaga Uno said the new route could increase international tourists’ awareness of attractions near Manado, particularly Likupang, a government “super priority” tourist destination. “The Tourism and Creative Economy Ministry fully supports the signing of this deal, as it can have a multiplier effect in the future for tourism and the creative economy in North Sulawesi. This route can serve as an opportunity for local creative industry players to showcase quality products and services to South Korean tourists,” Sandiaga said.

September20, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/20/jeju-air-to-open-direct-manado-south-korea-flight-in-tourism-bid.html?)

The latest ASEAN Summit was held in Jakarta, Indonesia on 5-7 September 2023 ago. The 43rd ASEAN Summit was held at the Jakarta Convention Center (JCC) on 5-7 September 2023. This year Indonesia got the opportunity to host the ASEAN Summit again after the 42nd Summit in Labuan Bajo NTT in May 2023. President Jokowi officially opened the Summit on September 5, 2023, at the Plenary Hall, JCC. The theme of the ASEAN 2023 Summit is the ‘ASEAN Matters Epicentrum of Growth,’ which was attended by state leaders and representatives from 10 ASEAN member countries, as well as representatives from ASEAN Partners. The implementation of the Summit for three days held 12 summit meetings and produced 90 important agreement documents and several other agreements with ASEAN partner countries in the fields of security, humanity and economy. The following are the results of several main agreements:

ASEAN Concord IV, also called Jakarta Declaration on ASEAN Matters: Epicentrum of Growth (Jakarta Declaration in the Importance of ASEAN: Growth Center) was agreed upon by ASEAN member countries on September 5, 2023. ASEAN Concord IV became the main document in the 43rd ASEAN Summit Declars 16 points that emphasize the importance of ASEAN for all of its people and become the center of growth in ASEAN and the Indo-Pacific region and its surroundings, including implementing the vision of the ASEAN 2025 community towards the vision of the ASEAN 2045 community.

1. The agreement of the cooperation project between ASEAN members and other state partners.

A total of 93 projects valued at US $ 38.2 billion or equivalent to IDR 580.64 trillion (exchange rate of IDR 15,200). “I appreciate the support and contribution of ASEAN countries and ASEAN partners, so that 93 projects have been collected by US $ 38.2 billion,” said President Joko Widodo in the opening of AIPF 2023 at the Mulia Hotel, Jakarta, Tuesday (5/9/2023) .

2. ASEAN MATTERS

Contains 10 points that include security issues including: Strengthening cooperation to overcome the challenges of drugs in the region in order to build a safe, peaceful, and drug-free environment for the ASEAN community; Preserving the ASEAN region as a nuclear weapon-free zone and other mass destruction weapons as immortalized in the ASEAN Charter and the Seanwfz Agreement (South East Nuclear Weapon Free-Zone); Re -enforcing the International Sea Law (UNCLOS 1982) to maintain and maintain peace, security, stability, safety and freedom of navigation including flights, especially over the South China Sea.

3. Epicentrum of growth

Contains 31 points of the majority action programs including economic, industrial, environmental, education to migrant workers.

4. Implementation of the Asean Outlook on the Indo-Pacific (AOIP)

Contains 8 action program points about increasing the role of ASEAN in the Indo-Pacific region to maintain peace and security related to geopolitics and geostrategic.

5. ASEAN Secretariat Becomes ASEAN Headquarters

ASEAN state leaders agreed to change the status of ASEAN Secretary or the ASEAN Secretariat into the ASEAN Headquarters or ASEAN Headquarters.

6. Middle Eastern Problems

ASEAN leaders expressed concern over the war between Israel and Palestine. ASEAN expressed its support for Palestinian freedom through the realization of the two coexist.

September 5, 2023, detikFinance dan detikEdu

(https://finance.detik.com/berita-ekonomi-bisnis/d-6914376/jokowi-ungkap-buah-hasil-ktt-asean-93-proyek-senilai-rp-580-t)(https://www.detik.com/edu/detikpedia/d-6925505/hasil-ktt-asean-tahun-2023-di-jakarta-asean-concord-iv-myanmar-hingga-timteng)

PT Pepsico Indonesia Foods and Beverages (Pepsico Indonesia) inaugurated the laying of the first stone for its first snack manufacturing facilities in Indonesia worth US $ 200 million or around IDR 3 trillion. This is certainly good news, because previously Pepsi had left Indonesia.

The inauguration of the commencement of the Pepsi Factory was carried out by the Minister of Investment of the Republic of Indonesia/ Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, West Java Governor Ridwan Kamil, United States Trade Attache for Indonesia Melissa Marszalek, CEO of Asia Business Unit Pepso Kitjatan Para (Eric), and CEO of Pepsico Indonesia Asif Mobin.

The start of this manufacturing facility also symbolizes Pepsico’s commitment to ensure a positive contribution to Indonesia’s economic development. This facility also underlines a broader destination: priority to local workers, the use of local raw materials, and strengthening the domestic industrial chain.

The factory, which will be built on an area of 60,000 m² in Cikarang, West Java, will later produce a number of snack products. This dabel will also be a manufacturing facility that fully applies the principle of sustainability. This factory will implement environmental sustainability and human resource development in the core operation, ensuring its practice remains in harmony with global environmental standards while creating a positive social impact.

In its operation, the factory will use 100% source renewable electricity. Related to water management, Pepsico will implement 100% recycled water utilization and adopt the net water positive approach from the first day of operation, to support ESG initiatives at the regional level. Pepsi considers Indonesia to present unlimited opportunities, especially in the food and beverage industry sector because of dynamic demographic profiles, and the needs of consumers who continue to grow. In addition, the Indonesian government has also taken a policy to foster a dynamic investment climate. In line with this positive climate, Pepsico Indonesia has reiterated its long -term investment commitment in Indonesia.

“We appreciate Pepsico’s long -term commitment to Indonesia’s economic growth through investments that are estimated to reach US $ 200 million. We hope that this investment will bring transfer of knowledge and technology for the people of Indonesia, as well as benefit the community and cooperate with local entrepreneurs and micro businesses, Small and medium (MSMEs) around, “said Bahlil Lahadalia.

Pepsico’s investment not only provides economic benefits, but also opens the way for Indonesian farmers to implement better agricultural practices and technology. With global expertise guided by a positive pepsico strategy (PEP+), Pepsico is ready to empower Indonesian farmers with advanced knowledge of resilience and climate adaptation and sustainable agricultural engineering.

August 30, 2023, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20230830145244-4-467559/pepsi-bangun-pabrik-pertama-rp-3-triliun-di-bekasi)