Tag: investment landing

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Indonesian Online Transactions of IDR 401 Trillion, Ministry of Trade Wants to Digitize 250 Thousand MSMEs

Minister of Trade Zulkifli Hasan (Zulhas) is targeting 250,000 small, micro and medium enterprises (MSMEs) to be digitized through electronic/e-commerce (e-commerce) platforms. To that end, the Ministry of Trade is strengthening collaboration with GoTo (Gojek and Tokopedia). It was noted that throughout 2021, online shopping was able to generate transactions of up to IDR 401 trillion. He hopes that with the digitization of MSMEs, especially people’s market traders, the number of transactions can continue to increase.

“To achieve the target of 250,000 digitized MSMEs, we are ready to continue to work with PT GoTo. I believe GoTo can play an important role as a digital platform that integrates on-demand services through entities within the company,” Zulhas said in a written statement, Thursday ( 27/10/2022). He conveyed this at the Advanced Digital Conference: Market Digitization Via the GoTo Ecosystem today, Thursday (27/10) in Jakarta. This event was held by Gojek, Tokopedia, and Goto Financial.

Digitizing the people’s market is one of the tasks given by President Joko Widodo to the Ministry of Trade. Because, this encourages people’s market traders to compete with traders who sell online.

Zulhas explained that his party is collaborating with various market locations/ride hailing to help the merchants’ onboarding process into the application. One of the things that has been done is collaborating with Tokopedia to push the market into the application. It is known, currently the program has been running in 10 markets throughout Indonesia.

Due to the COVID-19 pandemic, people’s spending patterns in the era of e-commerce development have changed. These changes increase the increase in consumers who shop through e-commerce. In 2021, consumers who shopped through e-commerce were recorded at 25% from the previous year which was only 11%.

October 27, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6373272/transaksi-online-ri-rp-401-t-kemendag-mau-digitalkan-250-ribu-umkm)

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Instant Noodles to Indonesian Coffee ‘Fly’ to Poland

The government is boosting exports to various countries. Central and Eastern Europe can be a potential market for Indonesian export products, with Poland being the main entry point. Poland has great potential to channel export products from Indonesia to the European Union, Western and Southern Europe, and Central Asia. Throughout 2021, Indonesia’s export value will reach US$ 1.78 billion to the region, with Poland being the highest export destination.

This data is contained in the book Road to Poland which was launched at the Indonesia Central and Eastern Europe (INACEE) Business Forum 2022 event on October 19, 2022, with the theme ‘Connecting Businesses’. This forum facilitates the signing of business agreements between Indonesian business actors and partners in several Central and Eastern European countries.

The book Road to Poland reviews the opportunities, developments and projections of the Polish economy amidst the dynamics of global trade developments, including with Indonesia. This book reviews the competitiveness of Indonesia’s leading export products to Poland, including the potential for export development and cooperation or business opportunities that can be increased between the two countries.

“This is a form of adaptation in finding solutions to overcome today’s world challenges, in an effort to increase cooperation and collaboration in the economy, trade, investment and other fields between Indonesia and partner countries, especially in the Central and Eastern Europe region,” said the Head of the Division. Indonesia Eximbank Institute (IEB Institute) LPEI Rini Satriani, written Thursday (27/10/2022).

Poland is Indonesia’s largest export destination for Central and Eastern Europe with a total export value of US$ 654.6 million in 2021, up 48.40% (YoY) and January-August 2022 of US$ 662.30, up 54.13% (YoY). Some Indonesian products that are in demand in Poland include instant noodles, coffee candy, batik, furniture, coffee and palm oil. Entering new markets is a challenge for exporters.

October 27, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6371540/mi-instan-sampai-kopi-asal-ri-terbang-ke-polandia)

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Indonesia to Rank Fourth for Airline Passengers in 2040

Airports Council International (ACI) Asia-Pacific says Indonesia is poised to become one of the fastest-growing markets for the airline industry despite the current global economic slowdown and relatively slow growth in the Asia-Pacific region. ACI director general Stefano Baronci said that, according to an ACI projection, Indonesia would rank fourth in the world in terms of passenger traffic by 2040.

“Indonesia is seen to be in a better position than other countries in the region to see its passenger traffic bounce back to the pre-pandemic levels,” Baronci told on Tuesday.

He said he expected Indonesia to grow much faster than other countries in the region at approximately 11 percent annually up to 2040, given the archipelagic nation’s geography and its economic growth forecast. ACI forecasts indicate that close to 19.7 billion passengers are expected to traverse the world’s airports in 2040, more than double the 9 billion passengers recorded in 2019. The Asia-Pacific region is expected to have approximately 8.9 billion passengers by 2040.

“So, what [does this mean for] Indonesia? [Stakeholders need to] improve predictability and certainty,” he said, adding that every country had its own capacity and level of maturity to find a way to reach that objective.

In Indonesia’s case, he referred to the implementation of the airport collaborative decision-making (ACDM) process currently taking place in Jakarta as a way to coordinate ground operations and air traffic. The ACDM is a process in which the stakeholders of operations, such as airport operators and air traffic controllers share information to improve policies, planning, real-time coordination as well as decisions regarding operations.

October 21, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/10/21/indonesia-to-rank-fourth-for-airline-passengers-in-2040.html?)

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The First Health and Tourism SEZ in Indonesia is Being Built in Bali

PT Aviasi Wisata Indonesia (Persero), known as Injourney, through its subsidiary PT Hotel Indonesia Natour (HIN), in collaboration with PT Pertamina Bina Medika-Indonesia Healthcare Corporation (IHC) is building the first Special Economic Zone (SEZ) for Health and Tourism in Indonesia. Indonesia, located in Sanur, Bali.
The government’s decision to build the Sanur SEZ that integrates the health sector with the tourism sector is in line with the focus of the G20 Presidency of Indonesia, namely inclusive health services, digital-based economic transformation, and the transition to sustainable energy. Bali was chosen as the location of the Health and Tourism SEZ to provide opportunities for patients to get world-class health services while taking advantage of the beauty of Bali as a tourist choice. The island of Bali has great potential to become the center of medical tourism in Southeast Asia.
As the first SEZ in Indonesia that combines the health and tourism sectors, the government hopes that the Sanur SEZ can contribute to national economic growth. The Sanur SEZ is also encouraged to become a new investment location, as well as to absorb workers. It is expected that after fully operating, the Sanur SEZ can absorb around 43 thousand workers. By 2045, the Sanur SEZ is expected to be able to increase its total foreign exchange earnings of up to US$ 1.28 billion.
The development of the Sanur SEZ is projected to be able to absorb around 4% to 8% of Indonesian people who seek treatment abroad. Thus, it is expected that by 2030, the number of patients seeking treatment at the Sanur SEZ will reach 123,000 to 240,000 people. Data shows that the Indonesian population is a major contributor to medical tourism in the region with more than 2 million citizens traveling abroad in 2019 for health services worth US$ 6 billion.
Minister of SOEs, Erick Thohir believes the development of the Sanur Health and Tourism SEZ will boost the economy both nationally and locally. “The potential is big enough so that it can become a priority to revive tourism activities in Bali,” Erick said in a written statement, Saturday (15/10/2022).

October 15, 2022, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6350190/kek-kesehatan–pariwisata-pertama-di-ri-lagi-dibangun-di-bali)

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Indonesia’s Economy Still Strong, Capital Market Still Promising

Danareksa Investment Management’s chief investment officer, Herman Tjahjadi, said that the Indonesian capital market is still promising with foreign investors who have entered the JCI stock market of Rp70 trillion since the beginning of the year. This means that global investors still view positively the Indonesian economy which continues to have the potential to grow.
“Towards entering the new year (the end of the year), it is likely that Indonesia’s GDP growth will still be positive, which is around 5.20%, this is good compared to other countries,” he said at the 2022 CNBC Indonesia Awards ‘The Best Asset Management’, Friday (14/10/2022).
He added, for 2023 it is estimated that Indonesia’s GDP will grow at the level of 5-5.1%. Even though there is an indication of a decline compared to this year, this figure is still very good compared to other countries. When global investors see that Indonesia’s economic growth is still positive, investment interest will not disappear.
Another factor that becomes the criteria for global and domestic investors to enter the country’s capital market, one of which is currency. As is known, the Rupiah depreciated by 7%, but according to him, when compared to other developing country currencies, Indonesia is still considered to be better. Furthermore, another factor is Indonesia’s inflation rate, which according to him is better than other countries, which is only around 5.59%.
“Even the United States is now 8.2%. These three factors (GDP, Currency, and Inflation) are relatively better than other countries,” said Herman.

October 14, 2022, CNBC Indonesia
(https://www.cnbcindonesia.com/market/20221014202250-17-379916/ekonomi-ri-masih-kuat-pasar-modal-masih-menjanjikan

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Minister of Trade, Zulkifli Hasan Says Indonesia
Could Become a Global Smartphone Production Base

Minister of Trade Zulkifli Hasan (Zulhas) released the export of smartphones produced by PT Samsung Electronics Indonesia (PT SEIN) in North Cikarang, Bekasi Regency, West Java. PT SEIN succeeded in exporting 8 million units of smart phones from 2018 to the third quarter of 2022. Seeing this achievement, Zulhas said that Indonesia could become a production base for smart cellular phones to be exported to various countries.
“The release of PT SEIN’s exports is a tangible form of the role of Indonesian business actors who continue to encourage exports to various Indonesian trading partner countries. In addition, this export achievement can certainly encourage Indonesia to become a production base for electronic products, including cellular phones (smartphone),” said Zulhas in a written statement, Thursday (13/10/2022).
Zulhas explained that the electronics sector is a leading sector that is included in the Making Indonesia 4.0 priority. In fact, it is included in the 4th largest export component in Indonesia’s export structure. In the January-July 2022 period, he said, the value of Indonesia’s electronic exports reached US$ 9.43 billion. Or up 18.9% from the same period the previous year, amounting to US$ 7.93 billion.
Meanwhile, in 2021, the value of Indonesia’s electronic exports will reach US$ 14.1 billion with a positive five-year trend (2017-2021) of 6.54%. In the same year, the export value of Indonesian cellular phones (HS 851712) reached US$ 305.8 million.
To note, Making Indonesia 4.0 is a Government program in preparing Indonesia to face the digital industrial era 4.0 which is focused on 7 industrial sectors. Namely, food-beverage, textile, automotive, chemical, electronic, medical devices and pharmaceuticals, which account for 70% of industrial gross domestic product (GDP), 65% of industrial exports, and 60% of Indonesia’s industrial workforce.

October 13, 2022, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6346684/zulhas-sebut-ri-bisa-jadi-basis-produksi-smartphone-global)

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Jokowi Opens Up Why He Is Hard to Build Infrastructure in Indonesia

The government in the era of President Joko Widodo (Jokowi) continues to encourage domestic infrastructure development. Jokowi emphasized that the decision was one of the efforts to increase competitiveness with other countries. Jokowi explained that infrastructure is the most important fundamental foundation to make this happen.
“Without it (infrastructure), we shouldn’t dream of competing with other countries. So, why do we build roads, build ports, build dams massively, because in the future we will compete with other countries,” he said. Jokowi in his speech at Balai Sarbini Jakarta, Tuesday (11/10/2022).
Jokowi said that in the next 5-10 years, the benefits of the development carried out from today will be seen. Although in the beginning there was a bit of sacrifice required. “This is a fundamental thing, although it may hurt at first, but in the next 5-10 years the benefits will be seen from the development that we are doing today,” he said.
Furthermore, Jokowi also discussed the issue of downstream industrialization which is no less important. According to him, the export of goods which are dominated in raw form makes Indonesia lose the opportunity to obtain additional value.
“We have been independent for 77 years, we always export raw materials. We export raw nickel, we export raw copper, we export oil in unprocessed raw form. We export tin, we export CPO palm, but not in semi-products. finished goods or finished goods,” said Jokowi.
Therefore, he said the Indonesian government would gradually stop exports of raw materials. Like the stop nickel exports that have been carried out since 3 years ago.

October 11, 2022, detikFinance
(https://finance.detik.com/infrastruktur/d-6341608/jokowi-buka-bukaan-alasannya-getol-bangun-infrastruktur)

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Indonesia’s Manufacturing PMI at Eight-Month High

Indonesian factories are in good shape as a key forward-looking indicator that has reached the highest level in eight months thanks to strong order books. According to London-based data firm IHS Markit, part of S&P Global, Indonesia’s manufacturing purchasing managers’ index (PMI) rose to 53.7 in September. Up 2 points from August, that is the highest reading since January for the index, which measures factory activity based on a survey of 400 firms.
“Latest survey data was consistent with the strongest improvement in the health of Indonesia’s manufacturing sector since January,” S&P Global economist Laura Denman said in a press statement on Monday.
Indonesia’s manufacturing PMI has been on a steady upward trend since a low point in May, when it tanked to 50.8 points, though still signifying an expansion in activity by remaining above the threshold of 50 points. Indonesia’s performance was slightly above the ASEAN headline PMI of 53.5 points and the second-best among emerging economies of the region, trailing only behind Thailand’s 55.7 points. The Philippines and Vietnam followed Indonesia with 52.9 points and 52.5 points, respectively, while Malaysia’s manufacturing PMI fell into contraction territory with a reading of 49.1 points, down from 50.3 points in August and the lowest figure this year.
In response to the latest manufacturing PMI readings, Coordinating Economic Minister Airlangga Hartarto said average manufacturing utilization had increased since August, which included expansion in the motor-vehicle industry and the food-processing industry. “The expansion reflects a consistent recovery in the manufacturing industry, at least in the last few months, and a domestic economic recovery after the [COVID-19] pandemic,” Airlangga said on Monday.
Industry Minister Agus Gumiwang said that a production increase in September was visible in the electronics industry, which had seen significant laptop production due to government procurement, and in the non-metal mineral industry, with huge demand for cement, ceramics and glass due to public infrastructure and private-property construction. “Production activity played a key role in the higher readings in the index, which are supported by high domestic demand,” Agus said on Monday.

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Indonesia Exports Refrigerators to Cambodia to Japan Rp 5 Trillion

Indonesia exports refrigerators to Cambodia through PT Panasonic Manufacturing Indonesia (PMI). This is related to the import substitution program and activities to increase exports of domestic products.
“I convey my highest appreciation to all ranks of Panasonic Manufacturing Indonesia for their support for the government’s efforts to encourage export activities of the electronics industry,” said Industry Minister Agus Gumiwang in a statement, Monday (26/9/2022).
According to Agus, this effort is a clear proof that the synergy between the government and industry players is going well. “The receipt of this Panasonic refrigerator product proves that the quality of electronic products made by Indonesian children has been recognized by the international market,” he added.
Refrigerator is one product that has a high export value in Indonesia. In 2021, the refrigerator export value will be US$ 374.4 million or Rp5.65 trillion (exchange rate of Rp15,014) of which 40% comes from the contribution of PT PMI which has exported refrigerators to Asian and Middle East markets.
Cambodia is the 8th country for PT PMI in terms of refrigerator export destinations besides Japan, Hong Kong, Malaysia, Myanmar, UAE, Kuwait and Oman. Apart from refrigerators, PT PMI has also exported other electronic products such as audio products, water pumps and washing machines.

September26, 2022, detikFinance
(https://finance.detik.com/industri/d-6312873/ri-ekspor-kulkas-ke-kamboja-hingga-jepang-rp-5-t)

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Deal in Bali, South Korea Ready to Buy Indonesian Cassava Chips for Rp 105 Billion

The cooperation between Indonesia and South Korea resulted in a business agreement worth US$7 million or equivalent to Rp105 billion (exchange rate of Rp15.000). Through this agreement, Indonesia will export several food products to the Ginseng Country. Including sweet potato and cassava chips. The signing of the MoU by the two countries was carried out in Nusa Dua, Badung, Bali, Friday (23/9/2022). Witnessed directly by the Minister of Trade Zulkifli Hasan.
“I welcome the signing of the three MoUs that result in a potential transaction of US$ 7 million. Products that South Korea is interested in are cognac, as well as cassava chips and frozen processed sweet potatoes which are Indonesia’s flagship products,” said Zulkifli Hasan in a written statement, Saturday ( 24/9/2022).
The signing was carried out by three Indonesian business actors and two South Korean business actors. PT Satoria Konjac Industri with With Us Co., LTD signed an MoU for the purchase of cognac products with a potential transaction value of US$ 2 million, PT Indorasa Utama with With Us Co., LTD for cassava chips products with a potential transaction value of US$ 2 million, and PT Seed Origin International and Wellygo Inc for processed sweet potato products (frozen dried sweet potato stick/frozen sweet potato paste) with a potential transaction value of US$ 3 million.
For additional information, the trade value between Indonesia and South Korea for the January-July 2022 period is US$ 14.03 billion. In that period, Indonesia’s exports to South Korea amounted to US$ 7.27 billion and imports US$ 6.77 billion.
Meanwhile, in 2021, the total trade value between the two countries will be US$ 18.41 billion. The value of Indonesia’s exports to South Korea reached US$ 8.9 billion and imports US$ 9.4 billion. South Korea is the 7th home country of foreign direct investment (FDI) for Indonesia. Its investment in 2021 is US$ 1.64 billion with 2,511 projects.

September24, 2022, detikFinance
(https://www.detik.com/bali/bisnis/d-6309728/deal-di-bali-korsel-siap-borong-ubi-keripik-singkong-ri-rp-105-m)