Tag: investment landing

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Indonesian cold-chain start-up gets $4.5 million in seed funding

Fresh Factory, an Indonesian cold-chain fulfillment start-up, has secured US$4.5 million in seed funding to expand its business. The early funding round was led by Singapore-based East Ventures with involvement from Indonesian firms PT Saratoga Investama Sedaya, Indogen Capital, Prasetya Dwidarma and Number Capital, US-based Y Combinator, and Singapore’s Trihill Capital. Several angel investors also participated, according to a press release published by East Ventures on Monday. Fresh Factory, according to the release, aims to provide a network of hyperlocal cold-chain fulfillment centers and a fulfillment management system.

            “We are elated to have Fresh Factory as part of East Ventures’ portfolios. Seeing the huge gap in cold-chain solutions and how it has led to many issues of food loss in the supply chain, we believe Fresh Factory will serve as the solution to improve the cold chain logistics for perishable goods and benefit micro, small and medium enterprises [MSMEs],” said Avina Sugiarto, venture partner of East Ventures.

“This fund will accelerate our mission of supporting all the business players in Indonesia, especially SMEs, in driving growth and scaling their businesses,” said Fresh Factory founder and CEO Larry Ridwan.

According to the press release, Fresh Factory has more than 20 warehouses located in cities in Java, Sumatra, Sulawesi, and Bali and plans to use the new funds to expand further in Sumatra and Sulawesi as well as to secondary cities in Java. According to the release, Indonesia’s cold-chain infrastructure has big gaps as development so far has focused on central warehouses, leaving deficiencies in mid-and last-mile logistics, notwithstanding Indonesia’s potential in agriculture and aquaculture. For that reason, cold-chain infrastructure is expected to grow significantly in the near future.

Cold Storage Association (ARPI) chairman Hasanuddin Yasni told The Jakarta Post on Thursday that it expects 32,000 tons of cold storage to be installed this year, up 50 percent from last year’s capacity increase, as the industry expands to accommodate growing production in the marine products and fishery sector.

As information, a 2020 Food and Agriculture Organization (FAO) report ranked Indonesia the second-largest country in marine fishing, after China, with a total capture of 6.74 million tons in 2018. But Indonesia was not among the 10 largest exporters of fish and fish products, a list topped by China with $21.6 billion in 2018, followed by Norway, Vietnam, and India with $12 billion, $8.8 billion, and $7 billion, respectively.

Fresh Factory also has technological solutions integrated into its business, namely geotagging and geolocation for storage, artificial intelligence to forecast and manage warehouse stocks as well as internet-connected devices to monitor freezer and chiller temperatures.

June 28, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/06/28/indonesian-cold-chain-start-up-gets-4-5-million-in-seed-funding.html)

(https://www.thejakartapost.com/business/2022/06/27/cold-storage-to-grow-50-as-fishery-firms-push-for-export-markets.html)

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3 Ways of Indonesia’s Blue Economy, at the World Ocean Conference

Minister of Maritime Affairs and Fisheries Sakti Wahyu Trenggono held a meeting with a number of representatives of countries and world institutions participating in the 2022 United Nations Oceans Conference (UNOC) event. The meeting was organized by the United Nations and held in Lisbon, Portugal, from Monday (27/6) to Tuesday (28/6). UNOC 2022 in Lisbon raised the big theme ‘Scaling up ocean action based on science and innovation for the implementation of Goal 14: stocktaking, partnerships, and solutions’. Through this theme, conference participants are encouraged to come up with innovative, science-based solutions that are urgently needed in the world that aim to start a new chapter of global action.

During the event, Trenggono met the Assistant Secretary of the United States Department of State’s International and Scientific Affairs Bureau of Marine and Environmental Sciences Monica Medina, and the World Bank’s Managing Director of Development Policy and Partnerships Mari Elka Pangestu.

            “In the meeting, I conveyed what the Indonesian government had done in fulfilling its commitments at the first UNOC in 2017. I also conveyed the action plans and work programs of the Ministry of Maritime Affairs and Fisheries related to supporting marine health. Thank God they gave their appreciation and said they were amazed by the breakthroughs made by the Indonesian government,” said Minister Trenggono.

            Tranggono conveyed three important things related to the blue economy program in Indonesia. These three important things also invite the admiration of the UNOC participants.

First, is the successful expansion of conservation areas by the Indonesian government to support marine health. Indonesia was able to exceed the target of 20 million hectares of conservation areas. Meanwhile, in 2030, Indonesia commits to achieve the target of marine conservation areas covering an area of 32.5 million hectares. The plan is optimistic that it can be achieved because Indonesia has managed to reach an area of more than 28 million hectares, or 86.5% by 2021.

Second, the Indonesian government plans to implement a quota-based measurable fishing policy in all fisheries management areas of the Republic of Indonesia (WPPNRI) through the Ministry of Maritime Affairs and Fisheries. This policy aims to maintain the sustainability of fish populations and encourage equitable economic growth in coastal areas.

Third, I convey the Ocean Love Month (BCL) program, which we initiated to solve the sea’s waste problem. We are currently designing in more detail about this program, in which later in one month fishermen go to sea not to catch fish but to pick up trash in the sea, one of which is plastic.

June 28, 2022, DetikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6151942/di-konferensi-kelautan-dunia-trenggono-ungkap-3-jurus-ekonomi-biru-ri)

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Indonesia is Getting More Stable Leaving the US Dollar, This is the Proof!

Bank Indonesia (BI) noted that currently, Local Currency Settlement (LCS) transactions continue to increase significantly. Proving today, more and more industry players and entrepreneurs are abandoning dollars in trading and investing. Bank Indonesia Senior Deputy Governor Destry Damayanti explained that the imposition of LCS transactions had begun in 2018, Then currently, transactions using LCS have increased to four countries. Apart from Thailand and Malaysia, Indonesia has collaborated with Japan and China.
Local Currency Settlement (LCS) is the settlement of bilateral transactions between two countries carried out in the currencies of each country where the transaction settlement is carried out within the jurisdiction of the respective countries.
“In the last two years, the development of LCS has been extraordinary. From 2020 to the end of 2021, LCS transactions have more than tripled, from US$ 797 million in 2020 to US$ 2.53 billion in 2021,” explained Destry Damayanti.
Prior to the imposition of the LCS, for export and import activities, the circulation of the US dollar currency in Indonesia reached 80-90%. This figure is too high because Indonesia’s trade with America is only 10% for exports and 5% for imports. Therefore, with the use of this LCS, entrepreneurs do not need to make transactions using US Dollars, but can use Rupiah or the currency of the destination country.
In order to continue to encourage LCS transactions, Bank Indonesia (BI) together with the government and other authorities such as the Deposit Insurance Corporation (LPS), the Financial Services Authority (OJK), the Indonesian Employers’ Association (Apindo), and the Indonesian Chamber of Commerce and Industry (Kadin) formed a group task or task force.

June 16, 2022, CNBC Indonesia
(https://www.cnbcindonesia.com/market/20220616101602-17-347555/ri-makin-mantap-tinggalkan-dolar-as-ini-buktinya)

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Pertamina’s 2021 net profit soars by 95%

Pertamina saw its net profit soar 95 percent last year amid surging oil prices, the state-owned energy holding company said on Friday. The oil and gas giant said in a statement that it booked a net profit of US$2.05 billion in 2021, almost double the $1.05 billion it recorded in 2020. It also recorded a 39 percent increase in last year’s revenue to $57.51 billion.
“The figures represented the combined profits of six sub-holding companies and their subsidiaries. Its upstream businesses contributed the most due to a windfall from a sharp rise in the Indonesian Crude Price (ICP), the national benchmark used for calculating the state budget. The growth to Pertamina’s integrated upstream to the downstream business model, which across-cross-subsidization between upstream and downstream businesses”, Heppy Wulansari said in the statement.
The prices of gas, oil, coal, electricity, and carbon all soared last year, in large part as a result of rising geopolitical tensions between producers and consumers. Crude oil prices also rallied in 2021, gaining more than 50 percent as demand recovered from easing pandemic restrictions across the world. Meanwhile, the downstream energy sector, especially the marketing and distribution of fuel oil and liquefied petroleum gas (LPG), was still operating at a loss because of higher crude prices, which put significant pressure on production costs.
“Nevertheless, Pertamina appreciates the government’s full support through the assigned fuel compensation and increased energy subsidies in the state budget. These were very significant to maintaining purchasing power and boosting economic recovery,” Heppy said.
Pertamina’s oil and gas production last year reached 897 thousand barrels of oil equivalent per day (boepd), up 3.9 percent from a year earlier, with 445,000 bopd in oil output and 2,614 million standard cubic feet per day (mmscfd) in gas output. The company said it did not import additional crude beyond the initial estimate, as its production output had achieved the year’s target. Indonesia’s overall oil and gas imports grew 9.21 percent YoY to $3.81 billion in April 2022, Statistics Indonesia (BPS) reported on May 17.

June 13, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/06/13/pertaminas-2021-net-profit-soars-95.html)

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Profit of State-Owned Enterprises in 2021 Reaches Rp126 Trillion, BRI Becomes the Biggest Contributor

PT Bank Rakyat Indonesia (Persero) Tbk will be the biggest profit contributor for the Ministry of State-Owned Enterprises (BUMN) in 2021. It is recorded that in 2021 the SOE’s profit will reach Rp126 trillion or an increase of Rp13 trillion from 2020. BRI President Director, Sunarso said BRI became a BUMN that recorded the highest profit of Rp32.22 trillion in 2021, or equivalent to 25.5% of the total profit of all SOEs in 2021. This growth was due to the state-owned company carrying out a number of transformations.
One of the pillars of BRI’s 2021 profit, namely credit performance and the collection of Third Party Funds (DPK) grew positively accompanied by a significant decrease in interest costs. At the same time, the company is able to manage portfolio mix and asset quality so as to increase asset yields. From 2019 to 2021 BRI has paid taxes and dividends to the state with a total amount of Rp82.03 trillion.
For 2022, Sunarso explained that his party already has four strategies so that BRI’s growth can continue to be positive. One of them is selective growth, BRI focuses on sectors that have high potential with minimum exposure to external shocks, namely the agricultural sector, chemical industry, and food and beverage.
Focus on quality and be selective in determining the feasibility of restructuring customers by carrying out a number of considerations. BRI will implement a soft landing strategy by establishing sufficient reserves to anticipate a deterioration in the credit quality of restructuring customers. Meanwhile, to maintain profitability, BRI will focus on high-yield loans, namely the micro and consumer loan segments as well as increasing efficiency through increasing low-cost funds (CASA).

June 11, 2022, DetikFinance
(https://finance.detik.com/moneter/d-6122233/laba-bumn-di-2021-tembus-rp-126-triliun-bri-jadi-penyumbang-terbesar)

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LG Invests in Upstream to Downstream Electric Vehicles, Jokowi: First in the World

LG Energy Solution built an Electronic Vehicle (EV) battery factory in the Batang Integrated Industrial Estate (KIT), Central Java. The investment value is estimated at US$ 9.8 billion or Rp142 trillion. This investment is a form of cooperation between the LG consortium and the IBC BUMN consortium, which consists of LG Energy Solution, LG Chem, Huayou, LX International, Posco, Mind ID, Antam, Pertamina Power, and PLN. President Joko Widodo (Jokowi) said that this investment was the first upstream to downstream investment in the world.
“LG’s investment is the first investment in the world that integrates the production of electric vehicles from upstream to downstream,” said Jokowi at KIT Batang, Wednesday (8/6/2022).
Nickel as the main raw material for electric batteries is mined in Halmahera, Maluku. Meanwhile, the industrial location, purification, and cathode production are at KIT Batang. This is what he calls downstream, which is spread over the territory of Indonesia. President Joko Widodo appreciated LG’s investment in Indonesia. This is because it creates jobs for up to 20,000 people. This large-scale project can support the production of 3.5 million units of electric vehicle batteries with a potential of up to 200 GWh/year. He added that a battery factory is being built in Karawang and an electric car factory in Cikarang, West Java.
Minister of Investment/Investment Coordinating Agency (BKPM) Bahlil Lahadalia said the economic impact of this investment reached US$ 5.6 billion or Rp80.6 trillion (exchange rate of Rp14,400) annually. President of LG Energy Solutions Lee Bang Soo called this investment an important key to national development. He hopes this EV factory will become one of the most important in Southeast Asia in the future. LG is collaborating with the State Electricity Company (PLN) on the project. This project will contribute to the global secondary battery industry in the next 26 years.

June 08, 2022, DetikFinance
(https://finance.detik.com/industri/d-6116340/lg-investasi-kendaraan-listrik-hulu-ke-hilir-jokowi-pertama-di-dunia)
(https://finance.detik.com/industri/d-6122732/lg-dan-bumn-punya-proyek-raksasa-rp-142-triliun-ini-rinciannya)

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Kalbe Farma to Open Business Unit in the Philippines

Indonesian pharmaceutical producer PT Kalbe Farma said on Friday it would establish a business unit in the Philippines to expand its global market reach. Kalbe Farma, through subsidiary Kalbe International Pte. Ltd, signed on May 17 a deal with the Philippines’ Ecossential Foods Corp (ECO) to form a joint venture firm to market all products, apart from prescription drugs, in the country. ECO specializes in the distribution of fast-moving consumer goods. The two companies are still in the process of establishing the joint venture, publicly listed Kalbe said in a filing with the Indonesia Stock Exchange (IDX).
“The Philippines has strong market potential for Kalbe Farma,” said the company.
Kalbe Farma will own 60 percent of the joint venture firm and ECO the remaining 40 percent. The two firms plan to inject 130 million Philippine pesos (US$2.48 million) in initial capital. Kalbe will finance its share using cash. The joint venture is part of Kalbe’s plan to strengthen its foreign market presence this year, specifically in Myanmar, the Philippines, Sri Lanka, Nigeria, Malaysia, and Cambodia, as it seeks to raise the contribution of exports to between 5 and 6 percent of its total revenue, up from 4.8 percent last year.
The joint venture is part of Kalbe’s plan to strengthen its foreign market presence this year, specifically in Myanmar, the Philippines, Sri Lanka, Nigeria, Malaysia, and Cambodia, as it seeks to raise the contribution of exports to between 5 and 6 percent of its total revenue, up from 4.8 percent last year. Kalbe’s 2021 annual report showed that its most popular products in the Philippines included cereal bars of the Fitbar brand and the diabetic-friendly nutritional product line Diabetasol.
Kalbe is also in the process of establishing a subsidiary, Kalbe Philippines Inc. (KPI), that cost an advance fee of $200,000. The move was pending regulatory approval as of March 31, according to Kalbe’s latest financial report. Kalbe posted a 16.5 percent year-on-year increase in net profit to Rp835 billion in the first quarter of this year, as revenue rose 16.6 percent to Rp7.01 trillion.

May 30, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/05/30/kalbe-farma-to-open-business-unit-in-philippines.html)

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Forbes Releases List of Young Achievers in Asia, Indonesia Donates 30 Representatives

The Asia-Pacific region has had its challenges over the past year. From travel restrictions issues to supply chain disruptions. But this hasn’t stopped young entrepreneurs in the region from coming up with new ideas, building on success, and in some cases starting their own businesses. This year, the 30 Under 30 Asia Awards released by Forbes shows a lot.
Quoting Forbes, Saturday (28/5/2022), more than 4,000 nominations were submitted to enter this year’s list, a record for the list in Asia. 22 countries and territories are represented on the list. In detail, the ranking of countries based on the highest number of citizens on the list is India (61), followed by Singapore (34), Japan (33), Australia (32), Indonesia (30), and China (28). Collectively, 90 of the 300 entries on this year’s list are from Southeast Asia, a region where the startup ecosystem is on the rise and attracting global VC money.
Indonesia, however, can be considered a hotbed for startups in Southeast Asia. According to a report by Google, Temasek, and Bain, e-Conomy SEA 2021 published in November, US$ 4.7 billion or Rp68.3 trillion (exchange rate of Rp14,539) VC money entered Indonesian startups in the first half of 2021.
Forbes 30 Under 30 Asia notes that Indonesian entrepreneurs make up 10% of the entire list, most of them building businesses to serve an increasingly tech-savvy population of 274 million. Debeasinta Budiman and Garret Koeswandi did just that.

May 28, 2022, DetikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-6099804/forbes-rilis-daftar-pemuda-berprestasi-di-asia-ri-sumbang-30-wakil)

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Energy Industry Leaders Push for Indonesia’s Energy Transition

Indonesia needs to tap into renewable energy sources, particularly geothermal and solar energy sources, as one of the world’s most populous country and a major global emitter is decarbonizing its economy. “Demand and potential for renewable energy in Indonesia are soaring, it is expected that the Indonesian energy demand will increase considerably,” Coordinating Economic Affairs Minister Airlangga Hartarto said during a JakPost UpClose webinar on Tuesday.
“By the end of 2060, we will put all kinds of renewable energy, including geothermal power and hydropower, in the system. If we still need more, it will come from wind and solar,” Edwin Nugraha Putra, executive vice president of electricity system planning at PLN.
PLN is currently developing a geothermal power plant with an installed capacity of 590 megawatts (MW), consisting of 360 MW generated by PLN and 230 MW generated in collaboration with state-owned geothermal company PT Geo Dipa Energi and state-owned Pertamina Geothermal Energy.
Indonesia, which has the world’s largest geothermal reserves, aims to achieve a geothermal power capacity of 3.35 gigawatts (GW) by 2030, as outlined in its 2021-2030 Electricity Procurement Plan (RUPTL). Data from the Energy and Mineral Resources Ministry data show that only 9.2 percent of the country’s 23.7 GW geothermal potential, or 2.18 GW, has been harnessed to date, while 1.33 GW has been allocated for expansion plans through to 2035.
Low offtake tariffs remain the unaddressed challenge to developing geothermal power plants in Indonesia, experts say, after the recent launch of a state-funded well-drilling program addressed the issue of high production costs, experts say.
Jiro Tominaga, Indonesia’s country director at the Asian Development Bank (ADB), said changing certain policies was key to pushing Indonesia’s energy transition to achieve a 23 percent renewable energy mix by 2025. These included cutting fossil fuel subsidies, setting electricity tariffs that supported renewables, and encouraging private sector investments. The ADB has been supporting Indonesia’s energy transition since 2012, contributing over $3 billion in funding.

May 25, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/05/25/energy-industry-leaders-push-for-indonesias-energy-transition.html)

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Jokowi Meets Elon Musk After Nickel Talks

President Joko “Jokowi” Widodo met Tesla Inc Chief Executive Elon Musk on Saturday in Texas to discuss potential investments and technology, Indonesia’s government said in a statement. The meeting between Musk and Jokowi came after a round of working-level discussions on a potential investment in Indonesia’s nickel industry and supply of batteries for electric vehicles, Indonesian officials told Reuters.
Representatives from Tesla were in Indonesia last week for meetings regarding a potential battery-related investment, Indonesian officials and two people familiar with the talks have said. Indonesia for years has been trying to secure a deal with Tesla on battery investment and potentially for Musk’s SpaceX aerospace company. Indonesia for years has been trying to secure a deal with Tesla on battery investment and potentially for Musk’s SpaceX aerospace company.
“There could be room for partnerships in many things because Indonesia has a lot of potentials”, Elon Musk said.
Indonesia has the world’s biggest nickel reserves, and Jokowi is keen to develop a nickel-based EV industry at home – from making nickel metal to producing battery components and assembling electric vehicles. In the past, he has also urged Musk to consider a rocket launch site in Indonesia. Two deals over the past month have given new momentum to Jokowi’s push to develop an EV-related industry at a time when global automakers have been scrambling to secure supplies of battery materials and reduce their reliance on China.
A consortium led by South Korea’s LG Energy Solution Ltd, the global No. 2 maker of EV batteries, announced plans last month to invest $9 billion in Indonesia as part of a deal that would include everything from nickel refining to producing battery cells in Indonesia. LG’s larger rival, China-based Contemporary Amperex Technology, a Tesla supplier, announced a $9 billion Indonesia investment in April.

May 15, 2022, TheJakartaPost
(https://www.thejakartapost.com/business/2022/05/15/jokowi-meets-elon-musk-after-nickel-talks.html)