Tag: investment landing

The U-17 World Cup in Indonesia at the end of this year is considered to have a big impact on Indonesian tourism. Minister of Tourism and Creative Economy Sandiaga Uno predicts the World Cup event will attract hundreds of thousands of foreign tourists to Indonesia. The calculation targeted 20% of spectators in each match is foreign tourists. If there are around 20 thousand people per match, meaning that from a total of 52 matches it can bring in more than 200 thousand foreign tourists.
“We are counting again because that was said that there are about 52 matches and if we use the formula that 20% of the targeted total spectators are around 20 thousand, it means there are around 4 thousand more that we can aim. So, maybe if the total can add to Foreign tourists around 150 thousand-200 thousand foreign tourists, “explained Sandiaga in the Presidential Palace area, Central Jakarta, Thursday (7/13/2023).
In addition, Sandiaga was also asked to prepare a tour package to the creative economy exhibition in each stadium and match.
“Kemenparekraf is given the task of preparing tourism packages as well as creative economic exhibitions which will later be part of the offer of promotions for the audience and also the FIFA World Cup U-17 participants. Creative that has been curated, “said Sandiaga.
Furthermore, Sandiaga was also asked to prepare the same thing for other international sports. For example, the Fiba World Cup or Basketball World Cup.
“Surely we welcome and appreciate the event, events, world-class sports such as the Fiba World Cup basketball world championship which will take place in August,” said Sandiaga.

July 13, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6821240/sandiaga-prediksi-piala-dunia-u-17-tarik-200-ribu-wisman-ke-ri)

PT Hyundai Motor Manufacturing Indonesia stated that as many as 50% of its car products were exported to around 78 countries. The car in question is the factory output located in Bekasi, West Java. This was conveyed by President Hyundai Motor ASEAN HQ Young Tack Lee. Lee said, one of the export objectives was countries in the African continent. While for the total production from the factory it reaches 150 thousand units of cars per year.
“More than 50% of Indonesian factory production has been exported to 78 countries worldwide to contribute to Indonesian car exports,” Lee said at the factory, Bekasi, West Java, Tuesday (11/7/2023).
Hyundai itself has been working with Indonesia since November 2019. The construction of the first factory was completed in December 2021. Electric cars became one of the products that continued to be encouraged by production in Indonesia.
“Since last year, SUV (Sport Utility Vehicle) of the first mass production in Indonesia, Creta, and MP Stargazer was exclusively launched. Especially Loniq 5 which was launched in March last year, was the first electric car in Indonesia that localized, and was chosen as a vehicle The official G20 event in Bali last year, “he said.
Lee said, in 2022 yesterday the production of electric cars in his factory touched 250 units per month. This year, there has been an increase in production to 1,000 units per month. Thus, per year production can penetrate up to 12,000 thousand units. Thus, increased production penetrated up to 4 times compared to 2022 ago. In line with that, it targets that the sale of electric cars can penetrate up to 10,000 units in 2023.
Hyundai also contributed to the construction of two battery factories. These include a battery cell factory in Karawang and a battery pack factory in Cikarang. The investment value required for the two factories is around US$ 1.5 billion or the equivalent of IDR 22.8 trillion (exchange rate of IDR 15,200/US$). The battery cell factory itself is a battery cell production factory. This factory is a joint venture between Hyundai Motor Group and LG Energy Solution (LGES) Ltd. Apart from Hyundai and LG, there is also the Kia brand, as well as the Indonesian Battery Industry PT. Meanwhile, the battery pack factory is a battery system factory or a factory that assembles battery cells into a unified whole, so that they are ready to be ’embedded’ in an electric car. This factory is the result of a collaboration between Hyundai Motor Manufacturing Indonesia and Hyundai Mobis of Hyundai Motor Group.

July 12, 2023, detikFinance
(https://finance.detik.com/industri/d-6818158/top-mobil-hyundai-made-in-bekasi-diekspor-ke-78-negara)

Coordinating Minister for the Economy Airlangga Hartarto revealed that the domestic economy was still solid and was able to be an incentive in strengthening the output of the manufacturing sector. Purchasing Managers’ Index (PMI) Indonesian Manufacturing June 2023 is at an expansive level of 52.5.
According to him, domestic demand also increased. This increase supports the expectations of manufacturing companies to survive at a positive level. In addition, the increase in sales driven by domestic demand also became the main sentiment for the positive prospects of the national economy going forward.
“With the release of Pandemic status to endemic, economic activity has become normal. PMI (Purchasing Managers’ Index/PMI Manufacturing Indonesia) has increased to 52.5, and we have been 22 months in a row above 50, so this is expensive. Industrial Trust (IKI) in June 2023 reached 53.94 or an increase of 3.03 points compared to last month which amounted to 50.90, “Airlangga said at the CNBC Indonesia Economic Update, as in a written statement, Monday (10/7/2023).
The Ministry of Investment/BKPM data also revealed the contribution of the processing industry to the total investment of Indonesia in the first quarter of 2023 of 42.5% or reached IDR 328.9 trillion. This figure increased by 32.5% compared to the previous year. Meanwhile, in the first quarter of 2023, the contribution of the processing industry to the industrial sector as a whole reached 18.57%. This is the largest subsector of the contributor, the food and beverage industry of 6.47%.
Airlangga assessed that the government encouraged the national industry to be more open, it was because it had a long-term projection or more than the next 10 years. Indonesia has also shown resilience from the industrial sector, for example, the electronic and automotive industries. Last year, the automotive industry exported vehicles close to 400 thousand units to more than 80 countries.

July 10, 2023, detikFinance
(https://finance.detik.com/industri/d-6816052/indeks-manufaktur-ri-meningkat-ke-525-airlangga-ini-ekspansif)

Indonesian Minister of Trade Zulkifli Hasan and Egyptian Minister of Trade and Industry Ahmed Samir Saleh signed a memorandum of understanding (MoU) to form a Joint Trade Committee (JTC). The cooperation aims to promote and increase trade cooperation between the two countries. This was revealed by Zulhas during a bilateral meeting between the two ministers in Cairo, Egypt, today. The signing of the MoU was included in the Minister of Trade Mission Zulkifli Hasan series to Egypt, May 14-16, 2023.
“Today, Minister Ahmed and I have signed an MoU for the formation of JTC Indonesia-Egypt,” Zulhas said in a written statement Monday (5/15/2023).
He said efforts to promote and improve trade cooperation between the two countries could be taken by JTC, among others, through the identification and application of steps to increase trade relations, solving problems and trading barriers, as well as the role of a medium of consultation and exchange of trade information. Both countries project JTC to become a medium that can accommodate aspirations and input from the community of business actors in each country.
“I hope that the JTC forum can be utilized optimally to identify the various potentials of increasing trade in the two countries as well as a forum for completing trading obstacles oriented to common interests,” he explained.
He added the formation of JTC based on the leaders’ joint statement of Indonesian President Joko Widodo and Egyptian President Abdel Fatah Al-Sisi during the visit of Egypt’s President to Jakarta on 4 September 2015.
Zulhas said that the total trade in Indonesia and Egypt in January-March 2023 was recorded at US $ 432.90 million, consisting of exports of USD 379.40 million and imports of US $ 53.50 million. Indonesia’s surplus of US $ 325.80 million. In the last five years (2018-2022), Indonesia consistently recorded a trading surplus against Egypt, with a trend of 9.82 percent.
Meanwhile 2022, the recorded total Indonesian and Egyptian trade reached US $ 1.56 billion. Indonesia’s exports to Egypt were recorded at US $ 1.43 billion, and Indonesia’s imports from Egypt were US $ 226 million. Indonesia’s surplus over Egypt of US $ 1.11 billion.
“Indonesia’s main export products to Egypt include palm oil, coffee, coconut, thread, and spare parts. Meanwhile, the main import commodity of Indonesia from Egypt is phosphate mineral fertilizer, dates, figs, pine, avocado, guava, mineral fertilizer, drops resulting from the extraction or purification of sugar, and natural calcium phosphate, “he concluded.
Meanwhile, Ahmed Samir Saleh also welcomed the cooperation. According to him, Indonesia is an important trading partner country for Egypt.
“Indonesia is an important partner country for Egypt. We agree that trade relations must be increased to a higher level,” concluded Ahmed.

May 15, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6722299/mendag-ri–mesir-jalin-kerja-sama-pembentukan-joint-trade-committee)

A neighboring country, Singapore, is now getting a supply of live chickens from Indonesia. This was marked by the first export of 23 thousand live chickens to Singapore conducted by the Japfa Group. The export of live chickens by sea. The chicken results from the cultivation of PT Ciomas Adisatwa in Bintan Regency, Riau Islands, a subsidiary of PT Japfa Comfeed Indonesia Tbk. This export is an important milestone for new shipping options to supply fresh chickens to Singapore by sending live chickens by sea and slaughtered in the destination country.
“With strict requirements from the country, Japfa succeeded in meeting Singapore’s requests and standards. A total of 1,500 tons or around 900,000 live chickens are targeted to be exported to Singapore in 2023. The first delivery of live chickens in the first history is a collaboration between Japfa, the government of Indonesia, Singapore, and other stakeholders, “said the Director of Japfa, Harwanto in a written statement, quoted Sunday (5/14/2023).
Now Japfa plays an essential role in providing food ingredients for people in the Asian region. By promoting high-quality standards, food safety, and corporate governance, Japfa has the capacity to meet Singapore’s food security strategies.
“We are happy to be able to contribute to Singapore’s food security strategies by providing fresh chicken for local consumers,” said the Tan Yong Nang JAPFA Group (Ltd), Chief Executive Officer.
On the other hand, the Director General of Animal Husbandry and Animal Health at the Ministry of Agriculture, Nasrullah, said that this export proves that Indonesian livestock products have good quality and can meet food security guarantees in accordance with international standards.
“As we also know, the potential for the production of national chicken meat in 2022 was recorded as many as 3.67 million tons. This shows that Indonesia is a country that is able to supply the needs of poultry and its derivative products not only for the people of Indonesia but are ready to supply global food needs,” he explained.
He said export feasibility standards were proven by some local and international certifications, such as Avian Influenza (AI) free compartment certificates, veterinary control number certificates (NKV), halal product certificates, and the application of ISO 2200 Quality Issue Management, Hazard Analysis Critical Control Point (HACCP), and Food Safety System Certification (FSSC) 22000. Meanwhile, the Indonesian Ambassador in Singapore, Suryo Pratomo said the export of chickens lived to Singapore as a sign of increasing trade cooperation.
“This export is a milestone that marks an increase in more cohesive trade cooperation between Indonesia and Singapore. This export is also a concrete follow-up of the meeting between the two leaders in the Leaders Retreats last May in Singapore. Previously Indonesia succeeded in exporting frozen chickens and Processed chicken products since June last year, “he said.
Meanwhile, in the Indonesian Trade Attaché in Singapore, Billy Anugrah, in 2022, Indonesia is expected to import 228,000 tons of chicken, both live chickens, chilled or frozen chicken, and processed chicken products. The majority of chickens come from Brazil (51%), Malaysia (24%), the United States (11%), and other countries (14%).

May 15, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6720391/ri-kini-pasok-ayam-hidup-ke-singapura)

Indonesia’s trade balance in April 2023 experienced a US $3.94 billion surplus. The surplus was triggered by a decrease in oil and gas imports. The Central Statistics Agency (BPS) reports that this trade balance surplus is a 36-month-up surplus in a row. The surplus was much higher than in March 2023, which reached US $ 2.91 billion.
Deputy for BPS Statistics and Statistical Information Imam Machdi revealed a surplus due to a lower decrease in imports of exports. Non-oil and gas imports have decreased throughout April 2023 by 22.27% on an annual basis. The development of imports in April 2023, the import value of IDR 15.35 billion or down 25.45% when compared to March 2023. If detailed, oil and gas imports are worth US $2.96 billion or down 1.98% compared to March 2023.
“In the last three years, the changes in April imports have always fallen, the decline in non-oil and gas imports by 29.48% in April because there was a war from several commodities,” said Imam.
This surplus position is higher than the market consensus compiled by the CNBC Indonesia Research Team. A total of 12 institutions estimate that the trade balance surplus in April 2023 will reach US $3.34 billion. Consensus also shows that exports will still be contracted by 19.31% (year on year/yoy) while imports have dropped 7%. For the record, the export value of March 2023 plummeted 11.33% (yoy) but increased 9.89% (month to month/mtm). Imports contracted 6.62% (yoy) but jumped 29.33% (mtm).

May 15, 2023, CNBC Indonesia
(https://www.cnbcindonesia.com/news/20230515103347-4-437319/mantap-neraca-perdagangan-ri-surplus-us-394-m-di-april-2023)

Director General of National Export Development (PEN) of the Ministry of Trade, Didi Sumedi, said that the export target of Indonesian spices could reach US $2 billion or IDR 29.60 trillion (exchange rate of IDR 14.800) in 2024. This target is carried out through the Spice Up The World program according to the mandate of President Joko Widodo (Jokowi).
“This is also an important part of the government program, the mandate of the President, Spice Up the World. This is launched in 2024 we can increase the spices and various kinds of spices to US $2 billion. While we export US $1.03 billion,” He said in the release of spice export products and fast food to Saudi Arabia at PT Pangansari Utama Head Office, Jakarta, Friday (12/5/2023).
For information, Indonesia Spice Up The World is one of the government programs that involve across ministries/institutions in an effort to increase the marketing of Indonesian spices or food products and spices. Through this program, the government also wants to build an Indonesian culinary business in foreign countries. The target in 2024 Indonesia will have 4.000 restaurants abroad. At present, there are already around 1.700 restaurants abroad.
Indonesia is now competing with Thailand in business in the culinary sector. Yet according to Didi, Indonesia is seeded with the presence of more significant natural resources. He also encouraged increased trade with Saudi Arabia. It is planned that billionaires from Saudi Arabia will meet Indonesian representatives on 30-31 May.
“We convey to increase the intensity of trade with Saudi Arabia. On May 30-31, we will do business forums by inviting some big brothers from Saudi. What can be done,” he concluded.

May 12, 2023, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6717516/pepet-thailand-ri-incar-ekspor-bumbu-masak-tembus-rp-296-t)

The Multi Lane Free Flow (MLFF) project worth US$300 million or IDR 4.5 trillion will be implemented in Indonesia. MLFF is said to be able to provide many benefits for Indonesia. Attila Keszeg, Main Director of PT Roatex Indonesia Toll System (RITS) said, Indonesia does not need to spend money on this project. The project financing scheme is obtained from tariff levies from toll road users when the MLFF is already in operation.
“The project financing scheme uses tariff fees paid by toll road users as a project settlement tool, so it does not use any party’s money in Indonesia when the project is implemented,” said Attila at a meeting with a number of national media editors in Jakarta, Thursday (15/6/223) .
MLFF, which uses the Design-Build-Finance-Operate-Transfer (DBFOT) scheme has a nine-year concession period. RITS, which is part of Roatex Zrt, a company from Hungary, is the business entity implementing the MLFF Indonesia project.
MLFF is the latest toll payment technology based on Global Navigation Satellite System (GNSS) technology which enables non-stop toll payment transactions through an application on a smartphone and read via satellite. This GNSS-based MLFF does not require readers everywhere on the highway, thus providing a more cost-effective solution.
Attila further explained, various advantages and benefits will be obtained by Indonesia from the implementation of the MLFF, such as the absence of queues at toll gates which have been the source of traffic jams on toll roads. World Bank data shows that traffic jams cause Indonesia to suffer economic losses of more than US$ 4 billion every year.
“The implementation of the MLFF is also beneficial from an environmental point of view, because reduced congestion will reduce air pollution and environmental burden because there are no queues and accumulation of vehicles at toll booths,” he added.
According to him, the implementation of the MLFF will make it easier for toll road users and increase the profitability of toll road operators because it reduces toll collection costs on a large scale. In addition, the implementation of the MLFF will accelerate Indonesia’s digital transformation through digitalization of toll payments.
“In addition to increasing GDP growth with the smooth flow of people and goods, MLFF also provides operational transparency which has implications for higher tax revenues for Indonesia,” he continued.

June 14, 2023, detikFinance
(https://www.thejakartapost.com/business/2023/06/14/indonesia-set-to-launch-satellite-this-month-from-cape-canaveral.html)

Indonesia is scheduled to launch its SATRIA-1 satellite on June 19, with its operational deployment expected by early 2024, according to a senior minister.
“The Indonesian government will launch the first Republic of Indonesia satellite, or SATRIA-1 for short, in an effort to equalize development and include people in the digital economy by providing internet access in every area of the country,” Mahfud MD, speaking in his capacity as the interim communications and information minister, said on Tuesday at his office.
The SATRIA-1 satellite is to be launched into space using SpaceX’s Falcon 9 rocket from Cape Canaveral in Florida, the United States.
Speaking at a press briefing on Tuesday, Adi Rahman Adiwoso, managing director of satellite service provider PT Satelit Nusantara Tiga (SNT), told reporters that the satellite would be ready to serve the public in early 2024 because “it takes 145 days from the launch date for the satellite to reach orbit”.
“The launch is in June and the satellite will reach orbit in November. We will test the entire satellite system by the end of December and have it ready for service in January,” he said.
In line with its designation as a state-owned multifunctional satellite project (SMP), SATRIA-1 would facilitate public services, according to Ismail, the communications ministry’s director general of post and information resources and devices, who spoke at the same briefing on Tuesday. He added that SATRIA-1’s services would be free of charge and would complement the existing telecommunication infrastructure by providing a direct connection to internet terminals without base transceiver stations (BTS). In this way, the satellite would “cover blind spot areas that are not connected by other technologies”.
The satellite is to function primarily in provide internet access for delivery of public services, with a specific focus on education, health care, local administrations as well as military and police personnel in remote areas. While the service duration was initially set for 15 years, Adi noted a “possibility of extending it by an additional five years” as long as the satellite remained operational. Adi said the total costs of the SATRIA-1 project amounted to US$540 million, $90 million more than the original estimate.
Nevertheless, he said that “SATRIA-1 remained cost-effective as a regional satellite”, considering that “its cost basis is relatively low despite delays and other factors involved in catering to remote areas”.
The SATRIA-1 project is funded through a public-private partnership and managed by the Telecommunications and Information Accessibility Agency (BAKTI) of the communications ministry. SATRIA-1 is poised to be the most powerful satellite in Asia with a capacity of 150 gigabits per second (Gbps) to enable high-speed internet connections. The ministry has established 11 ground stations across the country to provide operational support.

June 14, 2023, The Jakarta Post
(https://www.thejakartapost.com/business/2023/06/14/indonesia-set-to-launch-satellite-this-month-from-cape-canaveral.html)