Tag: regional investment

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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)

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Indika, Foxconn Sign JV Agreement on EV Factory

Electric vehicle (EV) company PT Mitra Motor Group (MMG), a subsidiary of coalminer PT Indika Energy, created a joint venture (JV) with EV component producer Foxteq Singapore on Sept. 22. According to an information disclosure released on Friday, the JV will be called PT Foxconn Indika Motor (FIM), which is licensed to build EVs with four wheels or more, produce batteries and provide management consulting services.
“MMG’s participation in FIM is the company’s step toward expanding its business activities into the electric vehicle sector, especially four-wheeled electric vehicles, in Indonesia,” Indika Energy corporate secretary Adi Pramono said in the disclosure.
Focusing on manufacturing commercial electric cars and batteries, the JV was followed by an investment of Rp39 billion (US$2.5 million) from MMG, equivalent to 60 percent of the paid-up capital. An affiliation of Hon Hai Technology Group, known as Foxconn, Foxteq Singapore paid in capital of Rp 29 billion, the equivalent of 40 percent of the paid-up capital.
Indika Energy director and group chief investment officer Purbaja Pantja said that the company saw huge potential in EV development in Indonesia. “This collaboration will create a comprehensive electric vehicle ecosystem that aims to support Indonesia in becoming one of the leading electric vehicle and battery ecosystem developers,” Purbaja said.
Foxconn battery strategy head Troy Wu said that this JV showed the firm’s commitment to developing a sustained EV ecosystem in the country. “Indonesia is the largest economy in Southeast Asia and holds the current G20 presidency and the next ASEAN chairmanship, and has committed to an ambitious net-zero emission target,” Wu added.
Previously, another Indika Energy EV manufacturing arm PT Ilectra Motor Group (IMG) launched the indigenous fully electric Alva One Motorcycle, which will be manufactured in a factory in Cikarang, West Java. In order to develop the two-wheeler brand and its supporting ecosystem, IMG raised a total of US$7.5 million in May from Alpha JWC Ventures, Horizon Ventures, equal to 21.4 percent of the company’s shares, while Indika Energy added another $7.5 million.

September23, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/23/indika-foxconn-sign-jv-agreement-on-ev-factory.html?)

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Astra Invests $259m in BJJ to Form Digital Bank

Diversified conglomerate Astra International has completed a transaction to acquire a stake in private lender Bank Jasa Jakarta (BJJ) for Rp 3.88 trillion (US$259 million) with a view to forming its own digital bank. The transaction was done through Astra subsidiary PT Sedaya Multi Investama, also known as Astra Financial, alongside WeLab Sky, a consortium led by Hong Kong-based fintech platform WeLab, with each entity to own 49.56 percent of BJJ.
“BJJ as a digital bank will complement many financial products and services that we could offer to our customers,” Astra financial director in charge Suparno Djasmin said in a statement on Monday.
Astra’s acquisition comes after a wave of new digital banks in the country, like GoTo-backed Bank Jago, CT Corp-backed Allo Bank and Sea Group-backed Sea Bank. Digital banks have gained traction in Indonesia, where their investors look to capitalize on the country’s large market with consumers who are accepting of the fintech industry.
Simon Loong, founder and group CEO of WeLab, said the acquisition would allow the fintech firm to expand its digital bank services beyond Hong Kong. In 2018, WeLab partnered with Astra to form a fintech lending company, PT Astra WeLab Digital Arta.
“Our partnership with Astra will support our strategic focus to increase our cooperation and business with partners in expanding the scale and reach to strengthen our network in pan-Asia fintech platforms,” Simon said in the same statement.

September20, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/20/astra-invests-259m-in-bjj-to-form-digital-bank.html?)

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Jeju Air to Open Direct Manado-South Korea Flight in Tourism Bid

South Korea’s Jeju Air has inked a deal with the North Sulawesi administration to offer direct flights between Manado and South Korea. Jeju Air CEO Kim E-bae and North Sulawesi Governor Olly Dondokambey signed the agreement at the Indonesian ambassador’s residence in Seoul on Friday.
“I’m very grateful because we are sure that our company can help with Korean and Indonesian economic development. We will try our best to open direct flights to Manado, Bali, Lombok, Jakarta and Yogyakarta,” Kim said, noting that such flights were in the pipeline.
Olly said North Sulawesi was well situated for the deal, being only five hours by plane from South Korea, and he expressed hope that the flight route could boost tourism for both North Sulawesi and South Korea.
“What makes North Sulawesi ideal is how relatively close it is to South Korea. North Sulawesi’s location and geostrategy offer benefits for water transportation to and from Bitung Harbor, which is not far from Sam Ratulangi Airport. Manado people love to travel. So, this deal is beneficial to both parties. I hope Mr. Kim and the Busan Authority can come to North Sulawesi in the near future to see other potential projects we can work on together because Manado and South Korea have a lot of similarities. For example, you have a lot of ginseng plants, and liquors too,” said Olly.
Tourism and Creative Economy Minister Sandiaga Uno said the new route could increase international tourists’ awareness of attractions near Manado, particularly Likupang, a government “super priority” tourist destination. “The Tourism and Creative Economy Ministry fully supports the signing of this deal, as it can have a multiplier effect in the future for tourism and the creative economy in North Sulawesi. This route can serve as an opportunity for local creative industry players to showcase quality products and services to South Korean tourists,” Sandiaga said.

September20, 2022, The Jakarta Post
(https://www.thejakartapost.com/business/2022/09/20/jeju-air-to-open-direct-manado-south-korea-flight-in-tourism-bid.html?)

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Indonesia Foreign Trade Shows No Sign of Slowing Down

Indonesia’s import and export performance broke an all-time record in August due to the unprecedented volume of commodities sold, casting a positive outlook on the economy as the nation battles to subdue the effects of subsidized fuel price hikes.

Statistics Indonesia (BPS) reported on Thursday that August’s exports rose 30.15 percent year-on-year (YoY) to US$27.91 billion, topping the previous record of $27.32 billion in April. Crude palm oil (CPO), metals and electrical machinery mainly supported the export growth. Imports, meanwhile, were up 32.81 percent YoY to $22.15 billion, supported by mechanical and electrical machinery, signifying a robust manufacturing industry as the domestic purchasing managers’ index (PMI) hit 51.7 points in the same month.

            “The export performance of key commodities is still in good condition due to an increase in the volume sold, even as commodity prices fall,” BPS deputy head of distribution statistics and services Setianto said in a press briefing.

            Consequently, Indonesia’s trade surplus in August managed to reach $5.76 billion, jumping 21 percent from the previous month’s $4.22 billion, while also marking 28 consecutive months of surplus. Economists had their estimates beaten, with state-owned Bank Mandiri and financial research firm Moody’s Analytics predicting a $3.69 billion and $4.4 billion surplus, respectively.

            BPS data also showed that the monthly export performance in August was boosted by CPO sales, which increased by 25.40 percent, followed by metals and electrical machinery by 14.38 percent and 21.16 percent, respectively. Although global commodity prices have been lower than the all-time high prices of the previous month, Setianto added, the export volume of some key commodities skyrocketed drastically in August.

            The volume of CPO exports jumped 55.77 percent month-to-month (mtm) to 3.6 million tons, the highest increase this year, although CPO prices fell by 10.15 percent yoy to $1,026 per ton.  Nominal-wise, CPO exports reached $3.7 billion in August, with demands mostly coming from India, China and Egypt.

September 15, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/09/15/ri-foreign-trade-shows-no-sign-of-slowing-down.html?)

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Indonesia Unicorn, Tokopedia Named the Best Workplace in Asia-Pacific

Tokopedia won the annual Best Places to Work Asia-Pacific 2022 award from PRWeek Asia and Campaign Asia-Pacific in the ‘Best Employee Support’ category. This category is given to organizations or companies that have offered support to employees during the global health crisis. This award is held to assist companies in developing the best work environment for their employees and as an inspiration to show a good workplace and initiative.

“Tokopedia has a goal to become ‘the most admired technology company’ for workers and prospective workers in Indonesia. Through this award, Tokopedia is closer to fulfilling this mission,” said VP of People and Culture Tokopedia Nanang Chalid in a written statement, Thursday (15/9/2022).

Tokopedia is the only company in Indonesia to win this award. Has 6 health pillars; Mental Wellness, Physical Wellness, Emotional Wellness, Social Wellness, Purpose Wellness, and Financial Wellness. Employees can consult a psychologist to help increase motivation, while maintaining health – both physically and mentally – in the midst of a pandemic.

Tokopedia also created the Work Fun Home program, which is a program that encourages employees to have a more enjoyable and productive work experience from home through a series of virtual activities. In addition, Tokopedia has also provided video call facilities with company doctors.

September 15, 2022, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-6292561/tokopedia-dinobatkan-jadi-tempat-kerja-terbaik-di-asia-pasifik)

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There Will be a Bridge Connecting Indonesia-Malaysia via Sumatra

Indonesia will be directly connected to Malaysia via Sumatra. This is because a line will be built connecting Telok Gong at the Tanah Mosque, Malaysia with Dumai, Sumatra in Indonesia along a length of 120 km. The construction is in collaboration with the private sector.

Quoted from Bernama, Friday (9/9/2022), the Chairman of the Melaka Investment, Industry, Entrepreneur Development and Cooperatives Committee, Datuk Seri Ab Rauf Yusoh said, the proposed construction involves the construction of a tunnel or bridge. The construction will take 20 years and when completed will have a major impact on the economic development of both countries.

“The project proposal has been submitted by the private sector and the two countries have agreed in principle a detailed study of the matter. From the state government side, we have brought all government agencies to visit the area where the proposed new route will be built yesterday,” Bernama said.

Ab Rauf said the project to be built uses the ‘One Belt One Road’ concept. This project will become a new icon for Malaysia and Indonesia. The project will also involve the construction of various infrastructures, including traffic deployment areas and the Immigration, Custom, Quarantine and Security (ICQS) Complex.

Ab Rauf added. the new industrial area which will accommodate various industrial activities will be developed in stages in the Tanah Mosque covering an area of about 2,023 hectares. The development of the area will be carried out by the Melaka Corporation and is expected to also contribute to the opening of a new city at the Tanah Mosque.

September 9, 2022, detikFinance

(https://finance.detik.com/infrastruktur/d-6281142/gokil-bakal-ada-jembatan-sambungkan-ri-malaysia-lewat-sumatera)

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AWS to Invest $5b in Indonesia’s Digital Transformation

Amazon Web Services (AWS), one of the biggest global players in internet technology, says it is ready to help Indonesia embrace the digital transformation. The US-based company set up its Jakarta infrastructure “region” in December 2021 and has committed to investing US$5 billion in the country over a period of 15 years. AWS ASEAN managing director Conor McNamara spoke to The Jakarta Post’s Deni Ghifari about the company’s philosophy, its views on Indonesia and the digital transformation.

AWS has plans in Indonesia, AWS is easily a billion-dollar run rate business globally and growing at 33 percent year-on-year. In Indonesia, the region announcement was a really big statement for us. We made a commitment to invest $5 billion in the country over the next 15 years. So that’s a forward-looking commitment to the country, and that investment will be broken into multiple different categories.

The first one, obviously, is the infrastructure. We have a three-availability-zone region. An availability zone is one or more data centers, separate power grids, separate floodplains, physically separated. It gives customers a level of resiliency and redundancy for how they run their workloads. And how we operate and run that infrastructure also requires big investment.

The second one is our extended team. We will also allocate a sum of that investment to all of our team in Indonesia over that 15-year period in terms of our support organization, official services organization, our public policy, and legal and marketing departments, etc.

The third pillar is our partners. We really think about our partners as an extension of our own team. We’re focused on building local partners in Indonesia who can help our customers leverage the cloud. We make a lot of investments, upskilling those partners, giving them credits and incentive programs to drive workload adoption. In addition, we also look to get partners who have international businesses to invest in the nation, like GSI, Accenture, Deloitte or TCS and so on, to further invest in building practices with us here.

Then, the fourth big pillar is skills. We’ve already trained 300,000 Indonesians on the AWS cloud, and we plan to train hundreds of thousands more over the years. We look at that through various vectors; we look at how we’re training customers who are currently using us. And then we also look at how we’re training the next generation of builders.

In terms of second-level education, third-level education, we have Laptops for Builders, where we provide laptops for students across Indonesia, because we believe that’s kind of the barrier for them to access cloud technologies. That’s a big area of focus for us as well.

September 9, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/09/09/executive-column-aws-to-invest-5b-in-indonesias-digital-transformation.html?)

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Indonesia’s Manufacturing PMI Rises to 51.7 in August 2022

Indonesia’s manufacturing industry has improved at the fastest pace in four months on the back of rising demand. The latest report by IHS Markit, now part of S&P Global, shows that Indonesia’s manufacturing purchasing manager’s index (PMI) reached 51.7 in August, a slight increase from 51.3 in July.

PMI readings above 50 indicate overall expansion in the manufacturing sector, while figures below that threshold denote contraction. The PMI has been in expansionary territory for each of the past twelve months. S&P Global Market Intelligence economist Laura Denman explained that more pronounced growth in both output and total new orders was an “encouraging sign for the future health of the Indonesian economy”, with firms frequently mentioning firmer underlying demand.

“The continued easing of inflationary pressure was another positive aspect of August’s survey, which saw both input and output cost inflation moderate to a 14-month low. We can hope to see a sustained easing of price pressures as the impacts of COVID-19 continue to recede,” she said in the report released on Thursday.

Furthermore, the report highlighted that manufacturing production in the country surged for a third consecutive month in August and at the quickest rate in seven months, reflecting a steady post-pandemic economic recovery. In line with that, the new orders subindex also rose at the fastest pace in six months in August on the back of firmer domestic demand, while new export orders contracted for the third month in a row.

Indonesian Chamber of Commerce and Industry (Kadin) deputy chairman Bobby Gafur Umar admitted that industrialists were still experiencing challenges in expanding their businesses due to logistical problems and global production chain disruption, as a residual result of the massive efficiency measures carried out by many manufacturers throughout the pandemic in the past two years.

He added that Indonesia’s manufacturing expansion had also been boosted by the government’s efforts to push the domestic content obligation (TKDN) above 45 percent, which encouraged local manufacturers to rely on domestic demand.

September1, 2022, The Jakarta Post

(https://www.thejakartapost.com/business/2022/09/01/indonesias-manufacturing-pmi-rises-to-51-7-in-august.html?)

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Practical! QRIS Can Be Used in Thailand, Malaysia-Singapore Next

QRIS or QR Indonesia Standard made by Bank Indonesia can now be used in Thailand. Governor of Bank Indonesia (BI) Perry Warjiyo stated that it would be easier for Indonesians to make shopping transactions in Thailand. No need to exchange money, only mobile phone capital to scan the QRIS barcode, transactions can already be done.

This is because BI and the Bank of Thailand have collaborated to form a cross-border payment system via QR. Perry said all Indonesian transactions in Thailand could use QRIS. For example, for tourism and other trade transactions.

In addition to Thailand, currently QRIS can also be used in Malaysia, but its nature is still a trial and has not yet been fully implemented. “We have tested Malaysia since January. QRIS is also being prepared to be tested in Singapore. Currently, the central banks of the two countries are preparing to sign a cooperation,” Perry said.

August 29, 2022, detikFinance

(https://finance.detik.com/moneter/d-6259762/praktis-belanja-di-thailand-bayarnya-tinggal-scan-malaysia-singapura-nyusul)