Tag: investment landing

Indonesia will pursue greater production in downstream industries and take over the world market in green products, President Joko Widodo said on Tuesday. Jokowi noted that Indonesia’s commitment to strengthening its downstream industry had proved to be fruitful, as it allowed the country to gradually shift from selling raw materials to value-added goods.

In the case of nickel, for instance, Jokowi said the downstream project had increased Indonesia’s steel export value by 18 times compared with the last seven years, to Rp306 trillion (US$20.7 billion) last year.  This year, Jokowi expects the value to rise to Rp440 trillion, a more than 43 percent year-on-year (YoY) increase. The downstream sector has provided an opportunity for the country to become a part of the global supply chain in the electric vehicle (EV) industry, with EV-producer countries from Asia, Europe, and the US showing their interest in taking part in the development.

“The government will push for downstream [production] in bauxite, copper, and tin. We must keep on pushing downstream on our natural resources,” Jokowi said during his State of the Nation speech for the 77th anniversary of the country’s independence.

Downstream projects in Indonesia have been Jokowi’s solution to the country’s sluggish manufacturing contribution to the economy and to reducing its reliance on extractive industries. Jokowi went on to say that the country would not stop pursuing downstream projects, but would also ensure they would be “green” as well, hoping they would be more competitive in the global markets. Jokowi said the government would integrate the downstream projects with renewable energy-based power plants that would utilize solar, wind, geothermal, wave, and bioenergy sources.

“We need to build an integrated ecosystem for the industry in our country that will support the development of a global green economy ecosystem. I believe that we will become a competitive green product manufacturer in international trade,” Jokowi said.

August 16, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/08/16/jokowi-ri-must-boost-downstream-investment-take-over-global-green-market.html?)

The Ministry of Trade together with the Ministry of Villages, Development of Disadvantaged Regions and Transmigration, the Provincial Government of South Sulawesi, and PT Astra International Tbk released the export of a number of superior products of Desa Sejahtera Astra (DSA) in South Sulawesi and Southeast Sulawesi Provinces worth IDR 6.5 billion.

DSA’s flagship products exported were 27 tons of seaweed worth IDR 450 million to China and 14 tons of fishery products worth IDR 1.4 billion to the United States (US) from DSA Wakatobi, Southeast Sulawesi, and 12 tons of patchouli oil products IDR 4.7 billion to India and Pakistan from DSA Bone, South Sulawesi and DSA Bombana, Southeast Sulawesi.

The export release took place today, Friday (12/8) at the Garuda Warehouse, Makassar City, South Sulawesi. The release was attended by Governor of South Sulawesi Andi Sudirman Sulaiman, Chief of Corporate Affairs of PT Astra International Tbk Riza Deliansyah.

“It is hoped that in the future, the villages assisted by PT Astra International Tbk will be able to export independently and sustainably. This is in line with the direction of the Minister of Trade, Zulkifli Hasan, to continue to improve export performance,” said Didi Sumedi, Director General of National Export in a written statement, quoted on Saturday (13/8/2022).

According to Didi, this export release activity is one of the implementations of the Village Leading Product Export Development Cooperation between the Ministry of Trade and PT Astra International Tbk which aims to increase the export capacity of villages to the global market.

The Ministry of Trade continues to support the promotion of the export of superior village products such as fisheries, seaweed, and patchouli. One of them is through the 2022 Trade Expo Indonesia (TEI) exhibition which will be held on a hybrid basis, namely on 19-23 October 2022 for an offline event at ICE BSD, Tangerang, and on 19 October – 19 December 2022 for a virtual exhibition via www.tradexpoindonesia.com.

Based on data from the Central Statistics Agency (BPS), the export value of Indonesian seaweed products increased by 102.5% compared to the same period the previous year (YoY) with the main export markets being China, the US, South Korea, France, and Vietnam. For essential oils in 2021, essential oil exports increased 15.1 percent (YoY). The main export markets for these commodities are the United States, India, France, Singapore, and Spain. In the January-June 2022 period, the export value of Indonesian fishery products was recorded at US$ 2.18 billion, an increase of 19.9% (YoY). The main export markets for these commodities are the US, China, Japan, Vietnam, and Malaysia.

August 13, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6233255/top-produk-desa-ini-diekspor-ke-china-hingga-as-rp-65-m)

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the world’s largest electric car manufacturer, Tesla Inc. has signed contracts to buy nickel from two companies in Indonesia. The total value of the transaction is US$ 5 billion, equivalent to IDR 74.5 trillion. Tesla has recently become a hot topic of discussion about the company’s plans to invest in the Indonesian automotive industry.

“They have bought, now that’s good, two Indonesian products, one from Huayou, the other where. He has signed a contract for five years. So he has entered the first stage,” he said on the CNBC Economic Update: Investment Attractiveness in Post-pandemic Indonesia. , Monday (8/8/2022).

Tesla’s contract is for the needs of lithium batteries at the factory. The location of the nickel company contracted by Tesla is in Morowali Regency, Central Sulawesi. “The contract for lithium batteries in Morowali, there are a dozen industries. He’s already engaged there, the value is probably around US$ 5 billion,” Luhut explained.

As for the construction of an automotive factory by Tesla in Indonesia, Luhut said it was still in the negotiation stage. As for the construction of an automotive factory by Tesla in Indonesia, Luhut said it was still in the negotiation stage.

Luhut said negotiations with Starlink were getting closer to an agreement. Whereas with Tesla it still takes longer because of the large investment value. “I thought Starlink was in the final negotiations. Tesla is still negotiating. We’ll see because Tesla’s investment is large. So the negotiations with Tesla are still quite long,” said Luhut, Tuesday (7/6/2022).

August 9, 2022, detikFinance

(https://finance.detik.com/industri/d-6223949/tesla-beli-nikel-dari-morowali-rp-74-t-kapan-bangun-pabrik-di-ri)

PT Pertamina (Persero) has again listed its name as the only Indonesian company to be included in the 2022 Fortune Global 500 list. Pertamina is ranked 223, up 64 places compared to 2021 which is in position 287. In 2022, the Fortune Global 500 places 30 world oil and gas companies in the Petroleum Refining category. Pertamina is at number 21 above Idemitsu & Repsol.

The Minister of State-Owned Enterprises, Erick Thohir, appreciated Pertamina’s success in re-entering the Fortune Global 500 with a significant increase in ranking. The increase provides evidence that State-Owned Enterprises can compete with global companies.

“I highly appreciate the directors, commissioners, and all Pertamina personnel who work hard in increasing the company’s competitiveness in the international arena. The transformation through holding and sub-holding makes Pertamina’s operations more effective and efficient because it focuses on core business. This is in line with our target that Pertamina must become a Global Energy Champion company and have a valuation of US$ 100 billion,” Erick said in a written statement, Tuesday (9/8/2022).

Erick said Pertamina’s success shows that State-Owned Enterprises are not only able to survive in the face of a pandemic, but can also improve performance with various innovations. This achievement is said to be inseparable from the steps of transformation and restructuring through the formation of holdings and sub-holdings.

Erick hopes that this achievement can be an inspiration for other State-Owned Enterprises to be able to speak more on the world stage. He believes that other state-owned companies can also imitate Pertamina’s footsteps as long as they are able to optimally implement the transformation and core values of morality.

“The better the performance of State-Owned Enterprises, especially until they are recognized by the world, will certainly have a significant impact on the community. Positive performance will certainly provide a large space for State-Owned Enterprises to contribute more to increasing economic growth, maintaining market balance, to economic programs. people,” said Erick.

August 9, 2022, detikFinance

(https://finance.detik.com/energi/d-6224398/pertamina-masuk-daftar-fortune-global-500-lagi-naik-64-peringkat)

The Central Statistics Agency (BPS) announced Indonesia’s economic growth data for the second quarter of 2022. The result is in line with expectations, and the country’s economy is growing high. In the midst of global inflationary pressures and economic recession, Indonesia grew impressively by 5.44% in the second quarter of 2022, which indicates that the trend of economic recovery is continuing and strengthening. Indonesia’s Gross Domestic Product (GDP) grew 3.72% compared to the previous quarter (QoQ), Gross Domestic Product (GDP) at the current price of IDR 4,919.9 Trillion.

GDP growth by business sector (YoY), still led by Transportation and Warehousing with 21.27%, ETC 5.79%, Trade and Repair 4.42%, Mining and Processing industry with 4.01 and Agriculture 1.37 respectively %. Meanwhile, Gross Domestic Product (GDP) by Expenditure (YoY), led by exports at 19.74%, imports at 12.34%, household consumption at 5.51%, LNPRT consumption on 5.04%, PMTB at 3.07%, and government consumption down to -5.24%.

GRDP growth was still led by Java Island at 56.55%, followed by Sumatra at 22.03%, Bali and Nusa Tenggara at 9.09%, and Kalimantan at 9.09%. The contribution of GRDP by region is led by Maluku and Papua 13.1%, Sulawesi 6.47%, Java 5.66%, and Sumatra 4.95%.

August 5, 2022, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20220805190813-16-361543/jauh-dari-resesi-ekonomi-indonesia-tumbuh-544)

Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said Japanese companies would invest in Indonesia amounting to IDR 75.4 trillion next year. This is the result of a meeting of President Joko Widodo who was accompanied by ministers with the bosses of Japan’s top companies. Investments vary, ranging from methanol development, and car factory expansion, to the development of new and renewable energy.

            “Thank God we can make a business deal and it can be realized next year at IDR 75.4 trillion, US$ 5.2 billion. New investments, especially in the field of methanol development, car expansion, then NRE. The President explicitly stated that please take care of the investment, if there is a problem, please go to the Minister of Investment, if it is not finished, the President himself will help him,” said Bahlil in a virtual press conference, Wednesday ( 27/7/2022).

            Japanese entrepreneurs have appreciated the reform of business regulations in Indonesia through Law Number 11 of 2020 concerning Job Creation. In addition, Bahlil also stated that the government would provide support in the form of accelerated business licensing services, providing incentives, and various other facilities as well as escorting investment realization.

            In a written statement from the Ministry of Investment, several companies that expressed interest in investing include Toyota Motor Corp in the field of hybrid-based vehicles, Sojitz Corp in the methanol project in collaboration with PT Pupuk Indonesia, and Mitsubishi Corp in the automotive industry and polyester film.

Then, Mitsubishi Motors Corp. wants to invest in the automotive industry, Mitsubishi Chemical Corp. is interested in investing in the polyester film industry, and Denso Corp. wants to relocate its business from America to the auto parts industry. Mitsubishi Chemical Group Corporation has plans to expand its investment through its subsidiary, PT MC PET Film Indonesia (MFI) worth US$ 156 million.

Toyota Shusho in the field of Patimban Port management, Sharp Corp in the field of air conditioning factories, Inpex Corp in the oil and gas industry, and Kansai Electric Power in the power plant construction industry.

Sojitz Corporation Masayoshi conveyed the investment plan for a methanol project in collaboration with PT Pupuk Indonesia in West Papua with an investment plan value of US$ 1 billion. They are currently conducting a feasibility study which is planned to be completed by the end of 2022.

July 27, 2022, detikFinance(https://finance.detik.com/berita-ekonomi-bisnis/d-6202677/jokowi-bertemu-bos-bos-perusahaan-jepang-investasi-rp-75-t-bakal-masuk-ri)