Tag: regional investment

The 8th President of Indonesia, Prabowo Subianto visited the Chinese President Xi Jinping on 8-10 November 2024. Prabowo’s visit to Beijing produced several important points that increasingly tightened Indonesia’s relations with China.

For example, Indonesia and China agreed to hold the first meeting of the 2+2 dialogue mechanism for the Foreign Minister and the Minister of Defense in 2025. This functions as the main platform to expand high -level strategic communication and political, security and defense cooperation between the two countries .

Previously, in August 2024, Indonesia and China held a meeting of the 2+2 dialogue mechanism to build regional stability. During the meeting, China stated a clear establishment and proposal regarding issues concerning Chinese core interests and concerns such as the issue of the Taiwan Strait and the South China Sea. In response, Indonesia expressed its commitment to the principle of one China and proposed an appropriate dispute through peaceful negotiations, in order to maintain peace and stability in the South China Sea. In addition, Indonesia reiterated its consistent compliance with the principle of one China, in accordance with the resolution of the UN General Assembly 2758. This recognition refers to the Government of the People’s Republic of China is the only legal government representing all China and that Taiwan is a part that cannot be revoked from China and support peaceful national reunification.

Furthermore, Indonesia and China also officially signed an agreement worth US $ 10 billion or IDR156  trillion at the Indonesia-China Business Forum in Beijing on Sunday (11/10/2024). This cooperation will cover various sectors including food, new energy, technology, and biotechnology.

Launching Reuters on Monday (11/11/2024), the manufacturer of China battery materials GEM signed an agreement with PT Vale Indonesia to build a high-pressure acid pelindian factory in Central Sulawesi. According to the submission in Shenzhen, this cooperation is partly to secure nickel resources. The nickel industry in Indonesia, the largest metal producer in the world, is dominated by Chinese companies including Tsingshan Holding Group and Zhejiang Huayou Cobalt.

In a joint statement after the leaders’ meetings, the two countries agreed to increase collaboration in various sectors such as new energy vehicles, lithium batteries, photovoltaic, and digital economy. They also promised to strengthen partnerships in global energy transitions and jointly ensure the security of global mineral supply and industrial chains. Prabowo, through a separate statement, said he was optimistic that the close cooperation between the two countries would increase regional stability.

According to him, this meeting was an opportunity to strengthen Indonesia-China relations which had been running for several centuries. Prabowo also underlined that China was not only seen as a great force, but also as a large civilization that had long been established with Indonesia.

The cooperation agreement between Indonesia and China signed is:

1. Phytosanitari requirements protocol for fresh coconut exports from Indonesia to China;

2. Technical Work Guidelines for promoting sustainable capture fisheries;

3. Memorandum Understanding about the strengthening of blue economic cooperation;

4. Memorandum Understanding each other about cooperation between mineral resources;

5. Memorandum Understanding each other about the collaboration of green minerals;

6. Memorandum Understanding mutual cooperation in the field of water resources; and

7. Memorandum Understanding mutual cooperation of conformity assessment.

November 11, 2024, CNBC Indonesia(https://www.cnbcindonesia.com/news/20241111114345-4-587224/deal-prabowo-temui-xi-jinping-ri-china-kantongi-kesepakatan-rp156-t)

PT Aviation Tourism Indonesia (Persero) or Injourney again presents the People’s Party and Aquabike Jet Ski World Championship on Lake Toba on November 13-17, 2024. This event is the second year of the world-level jet ski championship series held at the world’s largest volcanic lake. A total of 73 racers from 30 countries will compete in this event. Not only international racers, but this event will also be attended by 10 Jetski racers proud of Indonesia.

Aquabike Jetski World Championship 2024 which was enlivened by the People’s Lake Toba Party was held in four major districts around Lake Toba namely Karo, Dairi, Simalungun, and Samosir Regency. By combining the beauty of Jetski’s sport with the beauty of the natural panorama of Lake Toba, it is believed to provide its own attraction to this international scale sports event.

The Minister of Tourism of the Republic of Indonesia, Widiyanti Putri Wardhana, emphasized her support for the International Aquabike Jetski World Championship 2024 event. According to him, the implementation of events like this is not only to improve tourist visits but also to improve the welfare of the local community through the growth of the creative economy and the MSME sector.

“The implementation of this event encourages the creation of economic opportunities for the surrounding community, ranging from the transportation sector, lodging, to local culinary that will be enjoyed by visitors,” said Widiyanti, in a written statement, Thursday (10/31/2024).

Maya continued, the implementation of Aquabike Jetski World Championship 2024 in these four districts is an effort to revive tourism in the area around Lake Toba and strengthen its positioning as a water sport tourism. So, it is expected to have an extraordinary impact of economic equality for the people around Lake Toba which is holistic and integrated.

“We predict that this event will have an economic impact of IDR 1.7 trillion in the next few years,” Maya added.

Furthermore, Maya is optimistic that the number of tourist visits to Lake Toba, which is included in the list of the Top 52 Destination in The World, the New York Times version will continue to increase. This is inseparable from the presence of various international events held to increase the interest of the community to visit Lake Toba.

For information, the sporting event which is packed with the People’s Party Lake Toba offers a variety of activities and attractions. For the Aquabike Jetski World Championship itself will last for five days and the race will be divided into two categories namely Endurance World Championship (Endurance) and Circuit World Championship (Circuit).

October 31, 2024, detikTravel

(https://travel.detik.com/travel-news/d-7616423/injourney-gelar-event-jet-ski-internasional-diikuti-73-pembalap-30-negara)

(https://finance.detik.com/berita-ekonomi-bisnis/d-7616046/pemerintah-yakin-ri-dapat-durian-runtuh-dari-ajang-aquabike-jetski)

Indonesia officially conveyed the desire to join as a member of the Brits Block. This was conveyed by the Indonesian Minister of Foreign Affairs (Foreign Minister) Sugiono in the BRICS Plus High Level Conference (Summit) in Kazan, Russia. Through the announcement on Thursday (10/24/2024), the Indonesian process to join as a member of BRICS led by Russia has begun.

“The joining of Indonesia to BRICS is a manifestation of an active -free foreign policy. It does not mean that we join certain camps, but we actively participate in all forums,” Sugiono said, quoted Friday (10/25/2024).

“We also see the priority of BRICS in harmony with the Red and White Cabinet work program, among others related to food and energy security, eradication of poverty or the promotion of human resources,” he added.

In addition, Sugiono also proposed a few concrete steps to strengthen BRICS and Global South Cooperation. There are at least three points delivered.

First, uphold the right to sustainable development, where developing countries need policy space, while developed countries must meet their commitment. Second, supports the reform of multilateral systems to be more inclusive, representative, and in accordance with current reality. International institutions must be strengthened and have adequate resources to meet their mandate. Third, it becomes a force for unity and solidarity among the Global South countries. BRICS is felt to be able to function as an adhesive to strengthen cooperation among developing countries.

“We see BRICS can be the right vehicle to discuss and advance the shared interests of South Global,” said Sugiono. “But we also continue our involvement or engagement in other forums, as well as continuing discussions with developed countries.”

Indonesia has previously been recognized as one of the 13 BRICS countries. Besides Indonesia, 12 other countries are Algeria, Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.

BRICS itself is only allowed to be involved and participate selectively in BRICS matters. They remain participants in other international initiatives but without full commitment to the block. The new BRICS partner does have the potential to become a full member in the future. But they were not immediately inaugurated for certain reasons that were only known by the Block of the leadership of Vladimir Putin.

BRICS is an informal group that initially consists of Brazil, Russia, India, China and South Africa. This group was first initiated in 2006 to discuss the latest global issues. Its membership was expanded in 2023 with the joining of Ethiopia, Iran, Egypt, and the United Arab Emirates (UAE).

International Business and Trade Law Expert, Ariawan Gunadi assessed that by joining BRICS Indonesia could expand its export market. This decision, he said, could be an alternative when some of Indonesia’s superior products get export obstacles to Europe. Joining BRICS Indonesia can also get access to investment and funding infrastructure projects. According to him, access to funding can occur because BRICS has its own financial institution, namely New Development Bank (NDB). In addition, Indonesia can take advantage of its comparative advantage compared to other members. According to him, Indonesia can also rearrange its international trade policies and strengthen its diplomatic role.

October 25, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20241025141434-4-583071/untung-buntung-indonesia-masuk-geng-rusia-china)

(https://www.cnbcindonesia.com/news/20241025115442-4-583021/ri-resmi-daftar-keanggotaan-brics-satukan-kekuatan-dengan-rusia-china)

The Ministry of Industry (Kemenperin) records the export value of the pharmaceutical and natural drug industry through US $ 639.42 million or equivalent to IDR 9.9 trillion (exchange rate of IDR 15,503) during the January-September 2024 period. While in the second quarter of 2024, the industry recorded the industry growth of 8.01% and contributed to the non-oil and gas processing industry reached 18.52%.

Head of the Industrial Services Standardization and Policy Agency (BSKJI), Andi Rizaldi said the development of the industry this year also showed a passion. The Pharmacy and Natural Medicine Industry Group is one of five industrial subsectors who experienced the highest expansion in the release of the Industrial Trust Index in September 2024.

“The development of the pharmaceutical industry, chemical drugs and traditional medicines still has good prospects for the future. Thus, the development of the natural medicinal industry in Indonesia needs to continue to be supported and improved in order to be able to compete in the global market with a strong synergy between various stakeholders such as the government , industry, academics, and research institutions, “he said in a written statement, Friday (10/18/2024).

He explained that the Ministry of Industry also continued to play an active role in supporting the policy of developing natural drugs, especially in the production process and manufacturing technology. One of them, through the construction of the House of Wellness which is a natural drug production facility owned by the Ministry of Industry under the Work Unit of the Center for Standardization Center and Pharmaceutical Chemical and Packaging Industry Services (BBSPJIKFK).

At present, there are several types of natural medicinal industry companies in Indonesia, namely small traditional medicine (UKOT), Micro Medicine (UMOT), Natural Material Extract Industries (IEBA) and Traditional Medicine Industries (IoT), which produce 19 thousand Jamu products, 99 standardized herbal medicine products and 33 phytofarmaka products.

“The Ministry of Industry continues to encourage and provide guidance so that small industries can move up the class, so that the production of natural drugs can be increased in order to strengthen the pharmaceutical industry in Indonesia,” he added.

Meanwhile, Head of BBSPJIKFK Siti Rohmah Siregar said that his party was ready to facilitate the natural medicinal industry in Indonesia with the House of Wellness facility to encourage and accelerate the independence of the Indonesian Natural Medicine Industry Industry. According to him, the facility has been equipped with modern technology that is able to support the process of production of natural medicinal drugs ranging from processing simplicia, extraction, to formulations and packaging.

October 18, 2024, detikFinance

(https://finance.detik.com/industri/d-7593765/ekspor-industri-farmasi-dan-obat-bahan-alam-tembus-rp-9-9-t)

Elected President Prabowo Subianto – Gibran Rakabuming Raka spoke about his belief in achieving an economic growth target of 8 percent per year.

Senior Economist Indef Dradjad Wibowo, reported by the media, said that in history, Indonesia had indeed experienced economic growth five times by 8 percent or more. The high economic growth occurred in 1968 (10.92 percent), 1973 (8.10 percent), 1977 (8.76%), 1980 (9.88%), and in 1995 (8.22 percent) . From its analysis of the trend of Indonesia’s economic growth from 1961-2023, the average economic growth of our economic is 5.11 percent per year, although in general Indonesia always has an opportunity for economic growth which reaches 8 percent.

Why did this happen? The current industrialization does result in investment and good capital accumulation. This investment disbursement has encouraged the increase in fiscal space that can be used as government spending, raising the volume of our export commodities, and ultimately increasing the ability of public consumption.

But on the other hand, opportunities for large economic growth and cannot be maximized are also formed by several problems. Indonesia still has a long, complicated bureaucratic chain, and also tends to be corrupt. The quality of the workforce produced by the world of education is often not absorbed because of skills that are not suitable for industrial needs. State intervention through economic policy, often too complicated in implementation, causes microeconomic actors who prefer the informal sector as a source of their livelihood. Practically in this perspective, we are waiting for at the same time warning the Prabowo-Gibran government with the Asta Cita that they are carrying, can cut the structural obstacles that exist.

Economic growth of 8 percent every year is indeed important because with this achievement Indonesia can be separated from the middle income trap (MIDDLE INCOME TRAP/MIT) and towards developed countries. Among the G20 countries, Indonesia is included in the early rows of countries with economic growth trends above 5 percent, under China and India.

What can be achieved to achieve 8%economic growth?

Real social justice. Prabowo-Gibran economic instruments in the upcoming policy package must remain prudent (careful) and focus on the inclusive economic path that empowering all sectors. This is important because the risk of miscalculation in translating high economic growth targets will cause social division that threatens the integration of our nation.

Inclined Economic Urgency. Chasing economic growth with a fair and equitable inclusive economy must be followed by the persuasive ability of the upcoming government to invite all components of the nation to be involved more in this project. Form a concise, clean, and agile bureaucracy. Third, the creation of economic added value through downstreaming and manufacturing investment must also produce new jobs. Creating a strong entrepreneurship climate, with adequate policy support to reduce unemployment.

October 18, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/opini/20241018113127-14-580767/target-pertumbuhan-ekonomi-8-prabowo-gibran-ilusi-atau-realistis)

PT Aneka Tambang Tbk together with companies from China and South Korea will build an electric vehicle (EV) battery factory. The investment value is around IDR 80 trillion. Minister of Investment/Head of Investment Coordinating Board (BKPM) Rosan Roeslani said talks with Korean and Chinese companies were underway.

“We encourage the (factory) EV battery. We have talks with two even at this time at this time we are final stage but maybe I don’t say it first, but this is a Korean and Chinese company,” said Rosan, at the Ministry of Investment/BKPM office , South Jakarta, Tuesday (10/15/2024).

Rosan said, within 1-2 months the government will complete the agreement with the two companies. Thus, policy implementation can be implemented immediately.

“The investment is almost IDR 80 trillion, more or less yes US $ 5.5 billion. So that is also a very significant investment and there are actually two. That is cooperation with our BUMN, cooperation with PT Aneka Tambang so that God willing can be completed, “He said.

In addition to information, previously the Deputy for Investment and Mining Coordinating Ministry for Coordinating Ministry of Maritime Affairs and Investment Septian Hario Seto revealed the potential for large investment can enter Indonesia for the construction of nickel -based electric vehicle battery ecosystems. The investment value is estimated at US $ 20 billion- US $ 25 billion or equivalent to IDR 312 trillion – IDR 390 trillion (exchange rate of IDR 15,600).

Seto said, the value of the investment is a potential that Indonesia can get in the next 5 years. This investment is instilled from a consortium of companies involving many countries such as China to Europe.

“But for nickel for the battery, this room is still there. We see that there may still be around, our estimates are around US $ 20-25 billion more investments that can enter this battery sector in the next 5 years,” explained Seto in the forum Discussion at Le Meridien Hotel, Jakarta, Wednesday (9/10/2024).

October 15, 2024, detikFinance(https://finance.detik.com/industri/d-7589639/ri-gandeng-china-korea-mau-bangun-pabrik-baterai-mobil-listrik-rp-80-t)

The Central Statistics Agency (BPS) noted that Indonesia’s trade balance in September was again in surplus by US$ 3.26 billion. This achievement is a surplus for 53 consecutive months since May 2020.

Previously, the national trade balance in August was in surplus on a monthly basis of US$ 2.40 billion. BPS reported that the export value in September was recorded at US$ 22.08 billion, down 5.80%, while for imports, BPS noted that in September 2024, the total import value reached US$ 18.82 billion or down 8.91% from August 2024.

“In September 2024, the goods trade balance was recorded in surplus of US$ 3.26 billion or up US$ 0.48 billion on a monthly basis, thus Indonesia’s trade balance has recorded a surplus for 53 consecutive months since May 2020,” said Acting Head of BPS Amalia A. Widyasari at her office, Tuesday (15/10/2024).

“The monthly decline in import value was driven by a decline in the value of non-oil and gas imports and also a decline in the value of oil and gas imports,” said Amalia.

Amalia added that the trade balance surplus in September 2024 was higher compared to the previous month but lower compared to the same month last year.

“The surplus condition in September 2024 was supported by a surplus in non-oil and gas commodities of US$ 4.62 billion and the commodities that contributed the first surplus were mineral fuels hs27 animal and vegetable fats and oils HS 15 and iron and steel or hs72,” concluded Amalia.

October 15, 2024, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-7588617/neraca-perdagangan-ri-surplus-53-bulan-beruntun)

(https://finance.detik.com/berita-ekonomi-bisnis/d-7588753/impor-ri-september-turun-8-91-jadi-us-18-82-miliar)

Indonesia has the 5^th largest airport operator in the world after the birth of PT Angkasa Pura Indonesia or InJourney Airports. InJourney Airports is a merger of PT Angkasa Pura I or AP I and PT Angkasa Pura II or AP II. President Director of PT Angkasa Pura Indonesia Faik Fahmi said that this step was a major breakthrough in the aviation and airport industry sector in Indonesia and would be a solution to solve problems in the aviation industry in Indonesia.

“Through this merger, InJourney Airports now manages 37 airports spread across the western, central, and eastern regions of Indonesia, and makes InJourney Airports the 5th largest airport management company in the world with more than 170 million passengers per year,” he told CNBC Indonesia, quoted Thursday (10/9/2024).

The formation of InJourney Airports, which is also a form of transformation in the airport management sector, aims to optimize the national airport system, increase the potential of the economic and tourism sectors, and logistics in Indonesia. He explained that in preparing for the integration of this airport operator, his party had completed the alignment and harmonization of regulations and standard operating procedures (SOP) through the omnibus regulation strategy, IT system governance, finance, and airport operations, thus creating an efficient and synergistic aviation ecosystem.

This optimism is supported by 3 pillars and 1 enabler, namely Premises (prime quality airport infrastructure and facilities), Process (close collaboration between InJourney Airports and the aviation ecosystem), People (HR in the service sector that is of high quality and meets global standards), and supported by the implementation of various technological innovations and digitalization as Enablers.

This merger is based on the basis that Indonesia has the main potential to become an aviation and tourism market. There are a number of factors that have the potential to make Indonesia a major market for aviation and tourism, including Indonesia’s condition as the largest archipelagic country in the world with the largest population in Southeast Asia and a growing consumer class, strategic geographical position, diverse natural and cultural beauty, and abundant natural resources. These factors affect the number of tourism contributions, domestic and international passengers, foreign tourists, and air freight cargo that exist and are managed in Indonesia. This step is also in line with the government’s vision to improve domestic connectivity and accessibility, which is expected to support overall economic growth and increase the competitiveness of the tourism sector in Indonesia.

“There are a number of factors that have the potential to make Indonesia a major market for aviation and tourism, including Indonesia’s condition as the largest archipelagic country in the world with the largest population in Southeast Asia and a growing consumer class, strategic geographical position, diverse natural and cultural beauty, and abundant natural resources,” wrote management. These factors affect the number of tourism contributions, domestic and international passengers, foreign tourists, and air freight cargo that exist and are managed in Indonesia.

This airport integration will also make PT Angkasa Pura Indonesia, previously known as PT Angkasa Pura II, the recipient company of the merger as the 5th largest airport manager in the world with 36 airports throughout Indonesia which are estimated to serve 550 million-700 million passengers by 2045. The management said that airport integration also has the potential to increase domestic and international air connectivity supported by an integrated planning system including coordination in opening new flight routes.

October 14, 2024, CNBC Indonesia

(https://www.cnbcindonesia.com/market/20241014190834-17-579588/indonesia-punya-operator-bandara-terbesar-nomor-lima-di-dunia)