Tag: investment landing

Indonesia’s poverty rate decreased in the period March 2022. The Central Statistics Agency (BPS) reported that the poverty rate has now reached 9.54% or 26.16 million people. Head of BPS Margo Yuwono in a press conference on Friday (15/7/2022) said that compared to March 2021, there was a decrease of 0.60 points or 1.38 million people. Meanwhile, compared to September 2021, the decline in the poverty rate reached 0.17 points or 0.34 million people.

Margo said that the reduction in poverty could not be separated from the economic recovery that took place last year. It is hoped that this will continue in the future. “The 2021 economic recovery will have an impact on reducing poverty in March 2022,” he said.

Meanwhile, the poverty line experienced an increase of 3.97% compared to September 2021 to IDR 505,469 in March 2022.

July 15, 2022, CNBC Indonesia(https://www.cnbcindonesia.com/news/20220715100753-4-355861/tingkat-kemiskinan-ri-turun-kini-tersisa-2616-juta-orang)

The Central Statistics Agency (BPS) again reported that Indonesia’s trade balance in June 2022 experienced a surplus of US$ 5 billion. The surplus occurs because the balance of exports is greater than imports. Head of BPS Margo Yuwono said exports in June 2022 were recorded at US$ 26.09 billion. Meanwhile, imports in June were valued at US$ 21 billion, up 12.87% compared to last month. Thus, Indonesia again experienced a trade surplus because exports were greater than imports. It is known that this month Indonesia experienced a trade surplus of US$ 5 billion.

June 2022 Exports Reach US$ 26.09 Billion, Up 40.68%

“Exports were recorded at US$ 26.09 billion. An increase of 21.30% compared to May 2022. Annually exports also rose 40.68% compared to last June 2021. The composition of exports was supported by oil and gas and non-oil and gas. Non-oil and gas rose 22.71% for oil and gas 2.45%. Meanwhile, exports in June compared to June last year increased by 40.68% and non-oil and gas were 41.89%, while oil and gas were 23.68%, forestry agriculture by 23.30%, processing industry by 29.21%, and other mining by 6.22%. When viewed per sector, the highest month to month in the manufacturing industry group was 29.21%. If you look at the drivers of increasing exports of the palm oil processing industry, garments made from textiles,” said Margo Yuwono.

July 15, 2022, DetikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6180209/lagi-dan-lagi-neraca-dagang-ri-surplus-26-bulan-beruntun-kini-us-5-miliar)

(https://finance.detik.com/berita-ekonomi-bisnis/d-6180181/ekspor-juni-2022-tembus-us-2609-miliar-naik-4068)

President Joko Widodo (Jokowi) has just received a delegation from the World Bank. During the meeting, the World Bank delegation praised Indonesia’s economic development. The delegates who attended were Axel van Trotsenburg as Managing Director of Operations, Manuela V Ferro as Regional Vice President of East Asia and Pacific, and Satu Kahkonen as Country Director of Indonesia and Timor-Leste. At the meeting, Jokowi was accompanied by the Minister of National Development Planning (PPN)/Head of Bappenas Suharso Monoarfa. Suharso said the World Bank congratulated Indonesia’s G20 presidency. The World Bank delegation also has high hopes for Indonesia in this G20 presidency.

            “The World Bank hopes that Indonesia can do something with this presidential opportunity. Then the President said that he hopes that later there will be a communique that can be produced at the next meeting in Bali,” said Suharso in his statement, Thursday (14/7/2022).

            The World Bank also gives a positive assessment of Indonesia’s current economic development. Among countries that are currently facing a difficult situation, Indonesia is relatively able to maintain economic stability by maintaining an economic growth rate of around 5%. The World Bank also advises Indonesia to boost its economic growth from other sources, such as exports. Regarding exports, the World Bank considers the need for a structural reform that can reduce tariffs. The World Bank also stated its commitment to support Indonesia in terms of food security and energy transition, including praising Indonesia for preparing a roadmap for a green economy going forward.

            “Indonesia has done it in stages and then has also stated the World Bank’s commitment to supporting financing in energy, blue economy, food security, mangroves, and climate change, approximately around US$ 1.6 billion,” Suharso Monoarfa said.

July 14, 2022, DetikFinance(https://finance.detik.com/berita-ekonomi-bisnis/d-6179119/bertemu-jokowi-delegasi-bank-dunia-puji-ekonomi-ri

The Indonesian government targets the rail network in the country to reach 10,524 kilometers (km) by 2030. The construction will cost up to Rp853 trillion. The target is already in the Decree of the Minister of Transportation Number 296 of 2020, in which there are several efforts to develop trains according to the National Railway Master Plan (RIPNAS).   

            “The implementation of the main program requires a large amount of funding, referring to the RIPNAS, there is a budget requirement of almost Rp. 853 trillion with a proportion of alternative financing of 68% and the State Budget of 32%,” said Director General of Railways of the Ministry of Transportation Zulfikri in a hearing (RDP) with Commission V DPR RI, Wednesday (6/7/2022).

            The priority trains to be built are the network in Sumatra and Sulawesi, the construction of double track and electrification of the Java main line, as well as the operation of high-speed trains on the island of Java. In addition, the financing also includes the availability of passenger train facilities, consisting of 2,839 locomotives and 34,178 train carriages. Furthermore, freight train facilities are 2,475 locomotives and 48,364 carriages.

            “This is an effort to create a competitive, integrated, and responsive railway to developments. Another target is for railways to become the backbone of inter-city, urban, and freight mass transportation,” Zulfikri said. Currently, the national strategic project (PSN) in the railway sector consists of 10 inter-city activities and 6 urban PSN activities. Of these4 PSNs haveve been completed, namely the Tebingtinggi-Kuala Tanjung Railway, the South Sumatra Province LRT (Metro Palembang), the Double Track and  Crossing South Java, and the Yogyakarta-Kulon Progo Airport Train. For the PSN trains that are in process, there are Rantau Prapat-Duri-Pekanbaru, Lahat-Muara Enim-Prabumulih-Tarahan and Prabumulih-Kertapati Logistics Trains, MRT Jakarta East-West Phase I, LRT crossing JIS-Kelapa Gading, MRT Jakarta North- South, Jabodebek LRT, Jakarta-Bandung fast train, increasing the speed of the Jakarta-Surabaya railway line, especially the segment for the Jakarta-Semarang and Makassar-Parepare trains, all of which are still in the progress stage,” he said.

July 06, 2022, DetikFinance

(https://finance.detik.com/infrastruktur/d-6165779/ri-kejar-target-10524-km-jaringan-jalur-kereta)

Indonesia and the United Arab Emirates on Friday signed a free trade agreement, strengthening economic ties between Southeast Asia’s largest economy and the major oil-producing Gulf state. The accord, reached during a visit by President Joko Widodo to Abu Dhabi, will remove or sharply reduce duties on most goods traded between the Muslim countries.

            The UAE economy ministry said palm oil, food products, fashion wear, and Emirati petrochemicals, rubber products, plastics, and steel would benefit from reduced or eliminated tariffs. The accord includes chapters on services, investments, intellectual property rights, and mutual recognition of each other’s halal certification, Indonesia’s trade ministry said.

            The text of the agreement was not released and still needs to be ratified by both countries, which is largely procedural in the autocratic UAE but could take months in democratic Indonesia.

Indonesia’s main exports to the UAE are palm oil, jewelry, and precious metals, while Emirati exports to Indonesia are mostly petroleum gases and non-crude oils, iron, and non-alloy steel, according to the Observatory of Economic Complexity Oil rich UAE has forged closer trade ties with Indonesia as part of an ambition to double its own economy to US$ 816 billion by the end of the decade, in part by signing free trade, agreements.

Emirati Economy Minister Abdullah bin Touq told reporters the deal with Indonesia could increase bilateral non-oil trade to US$ 10 billion within five years, up from around US$ 3 billion last year. Indonesian Trade Minister Zulkifli Hasan said that Jakarta expects more UAE investment in Indonesia following the pact, which he said would boost exports to the Middle East and elsewhere. The UAE, a country of about 10 million people, is a major trade hub for the Middle East and parts of Africa, Asia, and Europe. The UAE will benefit from greater access to the Indonesian market of over 270 million people at a time when it is diversifying its trade links and seeking to create jobs for its 1 million citizens.

Emirati Minister of State for Foreign Trade Thani Al Zeyoudi told Reuters the government estimated the trade pact would create 55,000 highly skilled jobs in the UAE by 2030. “It’s going to add about US$ 4.6 billion to our GDP by 2030. It’s going to increase the exports by $3.2 billion and increase the imports by US$ 2.6 billion by 2030,” he said in an interview.

July 04, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/07/04/indonesia-uae-trade-pact-to-create-55000-highly-skilled-jobs-by-2030.html)

President Joko Widodo visited Moscow, Russia. During his visit, Jokowi and Vladimir Putin held talks regarding the potential for cooperation in the Indonesian capital city (IKN). Putin offered Indonesia to build transportation at IKN Nusantara. Putin said Russia and Indonesia have the potential for business cooperation in the development of transportation and logistics infrastructure.

“For example, Russian Railways can take part in implementing Indonesia’s large-scale initiative to move the nation’s capital to the island of Borneo. Moscow can also provide assistance for the IKN Nusantara project. Moscow has developed rapidly and rapidly and has succeeded in raising its high level of quality. IKN Nusantara is an ambitious project”, said Putin, quoted from the official website of the Russian Presidency, Friday (1/7/2022).

In his meeting with Jokowi, Putin expressed his interest in developing Indonesia’s nuclear industry. He said that many Russian energy companies were already operating in Indonesia. “Many of our companies, including energy companies, operate in Indonesia. There is interest in developing the national nuclear power industry. Including projects related to the non-energy use of nuclear technology, for example, in medicine and agriculture,” Putin said.

Putin claims Russian energy companies are quite competent and experienced. Putin also boasted that the technology owned by Russian companies is unmatched. Putin offered the name Rosatom State Corporation which is willing to take part in the development of the joint project. Rosatom is a leading nuclear energy company, with partners in 50 countries around the world.

            Putin really appreciates his meeting with Jokowi. He mentioned Indonesia as one of Russia’s main partners in the Asia-Pacific. Putin reminded Russia’s role and participation in the development in Indonesia.

June 30, 2022, DetikFinance

(https://finance.detik.com/infrastruktur/d-6156350/temui-jokowi-putin-tawarkan-bangun-proyek-kereta-di-ibu-kota-baru)(https://finance.detik.com/energi/d-6156392/putin-minat-bangun-industri-nuklir-di-indonesia)

Taiwanese giant Hon Hai Precision Industry Co. Ltd (Foxconn) plans to invest in Indonesia. The chairman of Foxconn, Young Liu, and President Joko Widodo met on Saturday (25/6) at the Bogor Palace. The meeting discussed the follow-up to the previously agreed Memorandum of Understanding related to the investment plans of Foxconn, Gogoro, PT Industri Battery Indonesia (IBC), and PT Indika Energy Tbk in Indonesia on January 21, 2022. According to the records of the Investment Coordinating Board (BKPM), the investment plan is US$ 8 billion or Rp118.4 trillion (exchange rate of Rp14,800), with estimated employment of more than 10,000 people.

            Foxconn Chairman Young Liu expressed his appreciation for the support of President Joko Widodo and the Minister of Investment/Head of BKPM Bahli Lahadalia who will fully facilitate Foxconn’s investment. Foxconn offers a new business model, namely BOL (Build, Operate, Localize) for its investment in Indonesia. Regarding his interest in investing in IKN Nusantara, East Kalimantan, Foxconn also expressed his interest in developing smart cities through an electric bus (e-bus) infrastructure and IoT (Internet of Things) networks.

            Foxconn, Gogoro, IBC, and Indika’s investment plans cover the electric vehicle industry: four-wheeled, two-wheeled, and electric buses; electric vehicle battery industry; and supporting industries: energy storage system, battery exchange station, battery recycling industry, Research & Development (R&D) and training. The agreed collaboration includes the development of a new sustainable energy ecosystem through investment in electric batteries, electric vehicles, and various supporting industries through the BOL cooperation scheme in Indonesia.

June 27, 2022, DetikFinance

(https://finance.detik.com/properti/d-6149263/foxconn-kepincut-bikin-smart-city-di-ikn)

Indonesian President Joko Widodo (Jokowi) and Chinese President Xi Jinping will test the Jakarta-Bandung high-speed train. The trial is planned to be carried out in November 2022. President Director of PT Kereta Cepat Indonesia China (KCIC) Dwiyana Slamet Riyadi explained the electric multiple unit (EMU) circuit is planned to arrive in Indonesia in September. After that, the two heads of state will test the Jakarta-Bandung high-speed train in November.

“This November is a dynamic test, so we plan to test the EMU which has arrived in Indonesia in September. So we hope that later the two leaders of the country, Mr. President Jokowi, and President of China Xi Jinping, will try the EMU from casting yard 4 towards Tegalluar”, Dwiyana Slamet Riyadi said.

The investment progress of this project has reached 84%, the physical progress of 76% of the total. This project is still running on the target. The Jakarta-Bandung high-speed rail project is targeted for operation in June 2023.

June 21, 2022, DetikFinance

(https://finance.detik.com/infrastruktur/d-6138969/november-jokowi–xi-jinping-bakal-jajal-kereta-cepat-jakarta-bandung)