Tag: investment landing

Construction of the first five-star hotel on Lake Toba, Labersa Kaldera Resort, which is located in The Kaldera, North Sumatra.  The commencement of the construction was marked by the laying of the first stone (groundbreaking).  The groundbreaking was held on Wednesday (21/12) and was attended by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Tourism and Creative Economy Sandiaga Uno, Minister of  National Development Planning/Head of Bappenas Suharso Monoarfa, and PAN-RB Minister Abdullah Azwar Anas. The construction of the first five-star hotel in the Lake Toba super priority destination area is targeted to be completed in July 2024. It is hoped that its presence will become a new tourist attraction in the region.

Sandiaga said the Ministry of Tourism and Creative Economy would form a small team led by the Deputy for Destination and Infrastructure Development of the Ministry of Tourism and Creative Economy, Vincent Jemadu, to monitor the smooth running of the Labersa Kaldera Resort development process. Sandiaga advised that this development be carried out according to good planning and an adequate number of workers.  That way the construction of the resort can be completed quickly.  The presence of Labersa Kaldera Resort is believed to be able to increase the number of visits by domestic and foreign tourists to the Lake Toba area as well as open the widest possible employment opportunities for the surrounding community.

“This will later become a world-class resort and waterpark on Lake Toba. I am very confident that the target of creating 4.4 million jobs in 2024 can be achieved,” he said.

December 22, 2022, detikFinance

(https://finance.detik.com/properti/d-6474763/hotel-bintang-lima-pertama-di-danau-toba-dibangun-target-rampung-2024)

President Joko Widodo  announced that he will ban the export of bauxite ore in June 2023. The government will also encourage its downstream. “Starting June 2023, the government will impose a ban on bauxite ore exports and encourage the domestic bauxite processing and refining industry,” Jokowi said in a video on the Presidential Secretariat’s YouTube, Wednesday (21/12/2022).

Jokowi continued, downstream bauxite is expected to boost state revenue to IDR 62 trillion.  The government will also continue to carry out domestic downstreaming for the welfare of the people. “We estimate the industrialization of bauxite in the country will increase state revenue from IDR 21 trillion to around IDR 62 trillion. The government will continue to consistently carry out domestic downstreaming so that added value is enjoyed domestically for the progress and welfare of the people,” said Jokowi.

At this press conference, Jokowi was accompanied by the Coordinating Minister for the Economy Airlangga Hartarto and the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif.

No Wonder Jokowi Stopped Exports, Indonesia’s 6th Largest Bauxite in the World!

Indonesia’s President Joko Widodo officially banned export activities of Indonesia’s ‘treasures’ which are among the six largest in the world.  The treasure is bauxite, which is prohibited from being exported starting June 2023. The cessation of exports of bauxite ore ‘treasures’ abroad has actually been implemented in Law Number 3 of 2020 concerning Mineral and Coal Mining (Minerba).

In the Decree of the Minister of Energy and Mineral Resources (Kepmen ESDM) Number 301.K/MB.01/MEM.B/2022 concerning the National Mineral and Coal Management Plan for 2022 – 2027 it states: That the bauxite commodity is ranked 6th in the world or equivalent to 4% of world reserves.  It is recorded that total bauxite resources reach 6.6 billion tons of ore and 1.1 billion tons of metal, with reserves of 3.2 billion tons of ore and 520 million tons of metal.

In fact, this bauxite ‘treasure’ also has areas that have not been explored or greenfields. As for the power of the Minerba storefront, including the bauxite greenfield area in the Riau Islands Province and West Kalimantan (West Kalimantan).

December 21, 2022, detikFinance

(https://finance.detik.com/energi/d-6473118/jokowi-setop-ekspor-bauksit-juni-2023)

December 23, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20221223142214-4-399612/pantas-ekspornya-disetop-jokowi-bauskit-ri-terbesar-6-dunia)

The Coordinating Minister for the Economy Airlangga Hartarto said the Environmental Fund Management Agency (BPDLH) had pocketed IDR 14.52 trillion in funds. The funds will be used to manage the environment and waste management.

“The existing funds reach US$968.6 million or IDR 14.52 trillion. Those are sourced from the Forestry Reforestation Fund, the Global Environmental Facility, from the World Bank, the Ford Foundation, and so on,” he said at the 2009 National Environmental Fund Management Working Meeting.  2022, Wednesday (21/12/2022).

Airlangga explained that since 2018 Indonesia has established an Environmental Fund Management Agency (BPDLH), whose function is to fund activities that focus on sectors such as forestry, energy, mineral resources, forestry, carbon trading, environmental services.

“Waste or waste industry, transportation, agriculture, marine, fisheries,” continued Airlangga.

These funds can be used by various parties in the government, Ministries/Institutions.  This is in accordance with President Joko Widodo’s directives (Jokowi). In Airlangga’s presentation it was written that environmental management had been discussed at the BPDLH National Work Meeting which was held December 21-22, 2022. There were three discussions at the meeting.

The first is the dissemination of global and national commitments in environmental protection and management, including climate change control and the role of local governments in supporting the achievement of these commitments.  The second is the coordination mechanism and working relationship between the central government and regional governments in managing environmental funds.  The third is the identification of the potential for cooperation between the government and local governments in mobilizing global and national funding through the BPDLH vehicle.

Airlangga asked for Jokowi’s direction so that this BPDLH should focus on managing waste or garbage in the regions.  Second, the development of mangrove plants.

“Earlier in the initial conversation, the President asked to focus on waste or waste management areas, and secondly for the center for the development of mangrove plants. That was the direction of the President,” he concluded.

December 21, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6473878/atasi-masalah-sampah-ri-gelontorkan-dana -rp-145-t.)

Indonesia’s exports increased by 5.58% year on year (YoY) to US$ 24.12 billion. While on a monthly basis there was a decrease of 2.46%. “November’s export value reached US$ 24.12 billion,” said BPS Deputy for Production Statistics M. Habibullah in a press conference, Thursday (12/15/2022).

Export developments were influenced by changes in international commodity prices which tended to decline compared to last year and the rupiah exchange rate which continued to depreciate. The market consensus compiled by CNBC Indonesia from 11 institutions estimates a trade balance surplus in November 2022 of US$ 4.4 billion. The surplus is lower compared to October 2022 which reached US$ 5.67 billion. The consensus also shows that exports will grow 8.98% (YoY) while imports will increase 5.04%.

If the trade balance returns to print a surplus, then Indonesia will have recorded a surplus for 31 consecutive months. For the record, the export value in October 2022 reached US$ 24.81 billion or jumped 12.30% (YoY). Imports were recorded at US$ 19.13 billion or shot up 17.44% (YoY).

December 15, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20221215104016-4-397143/ekspor-ri-tumbuh-55-tembus-us–2412-m-di-november-2022)

GoTo Financial (GTF) won 2 awards at an event titled Excellence and Strongest Banks in Asia Awards 2022. It is known that GTF is a digital financial service provider company that has services to support the financial activities of the community and business people, part of the GoTo Group. Organized by The Asian Banker, a banking and financial services industry platform based in Singapore, this award was given to the 22 strongest banks in 2022 after analyzing data from 500 banks from Asia, the Middle East and Africa.

The first award received was Best Digital Wallet in Indonesia (Best Digital Wallet in Indonesia) for GoPay. As an e-wallet platform in Indonesia, GoPay provides a one-click payment system, easy transfers, and payment solutions within the GoTo ecosystem as well as other providers. This is one of the main factors in the evaluation of awards at this event.

More than just a payment tool, GoPay helps users manage their finances through transaction history, paylater, and investment features. According to research from InsightAsia conducted in October 2022, GoPay is the leader in the e-wallet market in Indonesia with more than 71 percent of users who have been loyal to it for more than the last 5 years. Through consistency in providing the best service for users, GoPay has won the highest trust from consumers with a satisfaction level of 84% of users.

The next award was won by Midtrans, a business solution from GoTo Financial, as Best Merchant Service in Indonesia (Best Business Service in Indonesia). As a payment gateway service that is licensed and supervised by Bank Indonesia, Midtrans always supports business people to develop their business. With access to 25 payment methods, including GoPay and other electronic money, bank transfers, debit cards, credit cards, virtual accounts, QRIS, and payments at convenience stores, Midtrans is here to help businesses process transactions easily and facilitate the payment verification process. so merchants can focus on expanding their business.

December 13, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6459480/goto-financial-raih-2-penghargaan-di-ajang-the-asian-banker-2022)

Peruri is a state-owned enterprise that has a currency printing business unit. Perum Peruri does not only print rupiah currency to meet domestic needs. However, this state-owned company also prints money for foreign needs. Finally, Peruri managed to get an order to print money from Peru. Now, this State-Owned Enterprise is conducting assessments with Argentina.

Peruri’s Director of Finance and Risk Management, Winarsih Budiriani explained, Peru is the most recent market that Peruri has successfully penetrated. He said Peruvian money (Sol) was one of the most complicated that Peruri had printed.

“In fact, we can be proud of it, in fact we are from several countries, the last one being Peru. If we talk about Peruvian money, it’s the most complicated money, right? The money is the most complicated and of the best quality. One of the reasons for this complexity is the detailed design. “The design is very detailed, the quality is also very prime, indeed there are countries that have very complicated money designs,” he said at the Peruri Headquarters , Jakarta, Tuesday (13/12/2022).

Prior to Peru, he said, Peruri received orders to print money from Nepal and Sri Lanka. He said Peruri itself did not only print money, but also important documents such as passports. “That shows that we (Peruri) are trusted by countries that really print it in Peruri. Apart from Peru, previously we printed it to Nepal, Sri Lanka. And not only money, passports, excise actually we are not only local, but also we one of them has also been exported,” he said.

Currently, he admits that he is conducting assessments with Argentina. If successful, Peruri will start printing Argentine money next year.

December 13, 2022, detikFinance

(https://finance.detik.com/moneter/d-6459445/top-ri-cetak-duit-buat-peru-hingga-nepal-kini-incar-argentina)

Bank Indonesia (BI) has announced that its roadmap for the country’s own central bank digital currency (CBDC) named the “digital rupiah” will start with a wholesale design, in a move that may bring the country closer to finally implementing the long-awaited digital currency. The roadmap was launched within a white paper named after the country’s mythical creature “Project Garuda,” with an aim to explore possible designs to implement the digital rupiah. Its development will be divided into three stages with the first two only involving banks and BI’s roles.

BI will start the CBDC development for wholesale digital rupiah, but the functions will be limited to issuance, redemption, and transfer of funds, which the central bank sees as the most feasible for the initial stage. For the next phase, the digital currency will be expanded to support financial market transactions and monetary operations. The last stage, meanwhile, will integrate wholesale and retail design with the latter involving functions of distribution and collection, as well as peer-to-peer transfers and payments, which will finally be available for the general public.

“At the end, we will integrate both wholesale and retail digital rupiah end-to-end with synergy and collaboration nationally and internationally,” BI Governor Perry Warjiyo told audiences in BI’s annual meeting on Wednesday.

The white paper also stated that only limited parties designated by BI could have access to the wholesale rupiah by converting their reserves at the central bank. These wholesalers could be the ones distributing digital rupiah to customers through retailers such as banks and digital payment system firms or distributing it directly to consumers by themselves.

BI, too, could interact with consumers without the need to be bridged by wholesalers or retailers as intermediaries. The white paper wrote that banks generally are those considered suitable for the wholesalers’ role, whereas involvement from non-bank financial institutions will further increase operational exposures and systemic risk.

December 3, 2022, The Jakarta Post

(https://www.thejakartapost.com/paper/2022/12/03/bi-to-develop-wholesale-cbdc-soon-experts-suggest-prioritizing-on-retail.html)

Indonesia has successfully held the G20 Summit in Bali on 15-16 November 2022. A number of compliments from world leaders were also expressed for Indonesia, which succeeded in holding this grand world-level event.

Indonesia has received funding commitments of up to US$ 929.4 billion for a number of infrastructure projects up to the energy transition. Indonesian President Joko Widodo also detailed the amount of the funding commitment, including at least 226 multilateral projects with a value of US$ 238 billion and 140 bilateral projects with a value of US$ 71.4 billion which need to be followed up immediately.

“This must be ensured that all of these projects, programs and initiatives can be executed quickly,” said Jokowi while chairing a limited meeting on evaluating the implementation of the G20 Summit which was held at the Presidential Office, Jakarta, Monday, November 28, 2022.

The President also asked his staff to oversee the acceleration of various investment commitments so that they can be realized in the field. A number of these investment commitments include commitments from the United States government through the Partnership for Global Infrastructure Investment scheme of US$ 600 billion. US$ 20 billion for the development of fossil-based electric vehicles through the Just Energy Transition Partnership. Investment commitments from Japan, UK and South Korea for the Jakarta MRT, as well as cooperation with Turkey for the construction of the Trans-Sumatra toll road and others.

November 29, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20221129145309-4-392154/fantastis-hasil-ktt-g20-ri-terima-janji-manis-us–1-triliun)

Indonesia is said to be one of the countries that will avoid dark clouds next year. Even with this year’s G20 Summit, many commitments that ensure investment next year in Indonesia remain convincing. A nickel trading company from China, Lygend Resources & Technology, will soon conduct an initial public offering on the Hong Kong exchange and place Indonesia at the central point of the company’s massive expansion.

Launching the IPO prospectus, Lygend has ambitions to raise up to US$ 594 million or the equivalent of IDR 9.21 trillion (assuming an exchange rate of IDR 15,500/US$) to finance business expansion in Indonesia. The company’s shares will begin trading on the Hong Kong Stock Exchange on December 1.

The company said it would use 56.4% of the IPO funds for the development and construction of a nickel production project on Indonesia’s Obi Island. Then 24% of the IPO funds will be used for additional capital in Contemporary Brunp Lygend (CBL), a joint venture with Contemporary Amperex Technology (CATL).

CBL will focus on projects in Indonesia across the entire new electric vehicle (NEV) industry value chain, from nickel mining exploration, production of nickel and NEV battery materials, to NEV battery manufacturing and recycling. CBL is currently planning to set up a joint venture with Indonesian partners, namely PT Aneka Tambang Tbk (ANTM) and PT Indonesia Battery Industry (IBI).

Approximately 9.6% of the IPO funds will be used to invest in potential nickel mines in Indonesia to secure the supply chain given the increasingly crowded landscape of the nickel downstream industry. Meanwhile, the remaining 10% will be used for working capital and general company activities.

This massive expansion has enabled the nickel trading company to significantly increase exports of the metal, for which demand for nickel is very high in China. For information, Lygend itself is the largest nickel product trader in the world and the largest in China with a market share of 26.8% in 2021.

November 26, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20221126141052-17-391449/korporasi-china-ini-ipo-rp-9-triliun-demi-garap-nikel-ri)