Focus

Focus (25)

20
April

Exports of Indonesian automotive products will return to Vietnam, after export market access of Indonesian automotive products to the country had temporary stopped. Press release from the Ministry of Foreign Affairs in Jakarta, Tuesday (17/4) stated that this is one of the issues discussed in the 3rd Session of the Joint Commission of Indonesia-Vietnam. The Joint Commission Meeting, held in Hanoi, Vietnam, led by Indonesian Foreign Minister Retno Marsudi and Vietnam Foreign Minister Pham Bihn Mihn. Automative products is one of Indonesia's largest exports to Vietnam, reached about 293 million US dollars in 2017. Previously, at the end of 2017, the Government of Vietnam issued a regulation restricting the automotive import in the country. Retno Marsudi said that as one of Indonesia's close neighbors, the bilateral cooperation between Indonesia and Vietnam continues to grow rapidly year on year, especially after the two countries agreed on strategic partnership agreement in 2013. In the economic field, the trade value of both countries continued to increase to 6.8 billion US dollars in 2017, or 8.64 percent compared to 2016. In addition, there is an increase in the value of two-way investment between the two countries. In 2017 Vietnam's investment to Indonesia increased by about 300 percent, while Indonesian investment to Vietnam increased by about 36 percent in 2017. Various achievements in the field of economic cooperation are in line with the targets of the strategic action plan of the two countries, for the 2014-2018 period. In the meeting, the two Foreign Ministers agreed the positive momentum of economic cooperation between the two countries should be kept on guard. Therefore, the two Ministers agreed to immediately develop a new action plan for the 2019-2023 period, as a guide and the target of cooperation between the two countries, within the next five years. The Action Plan will be completed by November 2018. Several new sectors proposed by the Foreign Minister to enter in the new action plan including strategic defense industry, cultivation of crops and marine animals, marine tourism, renewable energy and creative industries. Minister Retno Marsudi expects that the new action plans can be completed by 2018 by admiting new opportunities. The two Foreign Affairs Ministers will encourage wider interaction with various business communities to explore innovative steps to make use various opportunities. Minister Retno Marsudi has said, some identified sectors remain opened for businessmen of Indonesia and Vietnam, such as downstream sector of oil and gas, hotel and property.

18
April

Ministry of Industry keeps trying to introduce the beauty of Indonesian culture in the world through the exhibition of small and medium industry’s products. The exhibition with the theme 'Indonesia Kain Party 2018' is held at Meguro accessorries Museum and Flagship Store Tokyo, Japan in April until July 2018. Director General of Small and Medium Industry, of Industry Ministry, Gati Wibawaningsih said in Jakarta on Sunday (15/4) that the event becomes one of momentums of the 60th anniversary of diplomatic relations between Indonesia and Japan. According to Gati Wibawaningsih, this year, Indonesia Kain Party 2018 raises the theme, Indonesian fashion from traditional until modern. The participation of small and medium industry in the exhibition is hoped to increase export market of Indonesian products in Japan, especially produced by national small and medium industry. In addition, the exhibition also aims to empower Indonesian women, set Indonesia as tourism destination of international people, especially Japan, and develop Indonesian cultural products. In the exhibition which is held through the cooperation of the two governments, the Ministry facilitates 8 small and medium industries of national fashion, namely Wignyo Rahadi who displays woven fabrics with non-machine that produce innovation, such as woven spots, freckles, and broken threads. Various kinds of Wignyo woven are exhibited in the form of clothes, saroong, shawl until ready-made clothing. Furthermore, Boroko Batik exhibits ethnic batik with a natural coloring technique that has a "fish" icon as a characteristic of this cloth.Another industry, namely Batik Pohon shows batik clothes which was made by using natural coloring techniqueswhich is taken from various kinds of trees or plants so that it has friendly environment characteristic. Besides, it uses local content such as alum, limestone to tunjung or rust of iron as a material lock on the fabric. Then, Zie Batik Semarang, which produces batik with coloring technique by using waste and cultivation of natural color-producing plants.The other products which are exhibitedbelongs to GLAM, which produce bags from leather and also batik and weaving with writing technique and stamp as the material of manufacture. Then, Dyah Kuncoro Kumalasari, owner of contemporary batik painting Dyah Kuncoro Handmade using synthetic coloring technique. The last, small and medium industry which participates in the exhibition, is Sofie Design, which has received a number of awards in various events, such as Indonesia Fashion Competition and Bali Fashion Week. According to Gati Wibawaningsih, fashion industry is one of 16 groups of creative industry which is able to contribute on national gross domestic products worth 3.76 percent in 2017. In that period, export of fashion industry reached 13.29 billion US dollars, an increase of 8.7 percent from the previous year.

09
April

Indonesia and Singapore agreed to strengthen cooperation in three priority sectors, namely capital market, digital economy, and tourism and supporting infrastructure. This is one of the points of agreement in the 2nd Indonesia-Singapore Business Council -ISBC Meeting organized by the Investment Coordinating Board -BKPM along with Indonesian Chamber of Commerce and Industry -Kadin in cooperation with the Economic Development Board -EDB Singapore and the Singapore Business Federation -SBF at the Office of BKPM in Jakarta on last Thursday (5/4). The meeting was one of the follow-ups of the implementation of the ISBC’s Memorandum of Understanding -MoU signed on July 28, 2017. Based on the MoU, it was agreed that the ISBC members' meetings are held twice a year alternately in Jakarta and Singapore. Indonesia-Singapore Business Council -ISBC is a joint venture between Indonesian and Singaporean businesspeople. Its establishment is supported by BKPM and EDB. ISBC members are top 10 entrepreneurs from Indonesia and Singapore respectively.

Head of the Investment Coordinating Board, Thomas Lembong said that the three sectors agreed were chosen so that both countries could benefit and optimize the potential. He explained that Indonesia can take advantage of Singapore which has been known as a financial hub in Asia to get finance from investment projects in the tourism sector and the digital economy. He also explained that in the first ISBC closed-door meeting held on September 7, 2017 in Singapore, it was agreed that from six sectors that become excellent, only three sectors will be prioritized in the medium term, namely capital markets, digital economy, and tourism along with its supporting infrastructure. Thomas Lembong added that from these activities, the delegation is expected to get direct information about potential projects in the tourism and infrastructure sectors.

From the data owned by BKPM, the realization of investment from Singapore for the period 2012-2017 reached $39 billion dollars. This realization listed Singapore as the largest investor in Indonesia. The realization of investment figures from Singapore is quite volatile; the position of 2016 which reached $9.1 billion dollars decreased to $8.4 billion US dollars in 2017. Singapore investors invested mainly in the transportation sector, warehousing and telecommunications, plant and plantation and paper industry. In terms of location, the distribution of Singapore's investment is fairly evenly marked by 51 percent outside Java and 49 percent in Java.

02
April

Indonesia and Bangladesh have excellent bilateral relations, especially in terms of strengthening cooperation in industrial sector. This is evident from the value of trade between the two countries. In 2014, the value reached $1.38 billion dollars and this increased to $1.65 billion dollars in 2017. Indonesia's main export commodities to Bangladesh include Crude Palm Oil (CPO), trains and its components, and paper. Meanwhile, the largest import of goods from Bangladesh is yarn. This was disclosed by Minister of Industry, Airlangga Hartarto at the 47th Independence Day celebration of Bangladesh in Jakarta on Monday (26/3). On that occasion, Minister Airlangga Hartarto representing the government of Indonesia expressed his appreciation for Bangladesh that has trusted PT Industri Kerata Api (PT INKA) to support the development of Bangladesh connectivity. The railway industry company gradually sends 400 train cars to Bangladesh. The cooperation between PT. INKA and Bangladesh Railway in the purchase of railway cars has been signed since 2017. This will be a milestone of various improvements in cooperation between the two sides in the future. In addition, Minister Airlangga also said that PT Japfa Comfeed Indonesia plans to establish a new factory in Bangladesh that will focus on producing animal feed products. This indicates the stretching of national industry that is able to invest and expand overseas, while also showing its competitiveness in global level. He said that in the future, such cooperation would be directed to establish joint ventures in machinery and maintenance components, as well as technical cooperation or capacity building of Bangladesh's employment. He believes that the opportunities for cooperation between the two countries are still very wide and promising, remembering that there is huge potential of economic growth in Indonesia and Bangladesh. Minister Airlangga Hartarto also said that Indonesia has a large market and a lot of workforce. The government of Indonesia also continues to create a conducive investment climate as well as provide convenience for industry players to run their business. Meanwhile, Bangladesh Ambassador to Indonesia, Azmal Kabir said that Bangladeshi government is very pleased to partner with Indonesia in a hope that the bilateral relationship will increase in the future. He expressed his appreciation to Indonesian President Joko Widodo who visited Bangladesh and met with Bangladeshi Prime Minister, Sheikh Hasina. Ambassador Azmal also stated that besides holding bilateral meeting, President Joko Widodo also visited Rohingya refugees. The arrival of President Joko Widodo to Cox's Bazar also coincided with the provision of assistance from Indonesia in the form of food and medicine.

26
March

Indonesia is targeting exports to Taiwan to grow by 7.8 percent in 2018. Director General of National Export Development (PEN) Arlinda in the Indonesia-Taiwan Business Forum in Taiwan on Friday (23/3/2018) said that Indonesia and Taiwan have very large potential to enhance trade cooperation. She is optimistic to achieve the target, as Indonesia and Taiwan recorded positive economic growth. According to Arlinda, Indonesia's total exports to Taiwan reached 1.89 percent of Taiwan's total imports. Meanwhile, Taiwan's total exports to Indonesia last year amounted to 2 percent of Indonesia's total imports worldwide. The main export products from Indonesia to Taiwan are coal, bituminous coal, tin, plywood, coffee, copper waste, and scrap. Meanwhile, five main products imported from Taiwan to Indonesia are woven and knitted fabric, generating set, other of electronic integrated circuits, and spare parts for electronic integrated circuits and micro-assemblies.Arlinda said coffee is one of Indonesia's potential export commodities especially to Taiwan. Indonesia is the fourth largest coffee producer in the world and ranked seventh as the world's largest coffee exporter. Arlinda said Indonesia's coffee exports last year increased by 17.71 percent compared to the previous year. Meanwhile, coffee export from Indonesia to Taiwan reached 2.89 million US dollars.To strengthen trade relations between Indonesia and Taiwan, since  2016 a Working Group on Trade meeting has been held within the framework of the Joint Committee of Trade and Investment (JCTI) . It is a bilateral meeting forum to discuss trade and investment increase between the two parties. The next JCTI meeting will be held in Bali on March 27, 2018.During the business forum, Arlinda invited Taiwanesebusinessmen to attend the 33rd Trade Expo Indonesia (TEI)which will be held from 24-28 October 2018 at IndonesiaConvention Exhibition (ICE) BSD City, Tangerang, Banten.Trade Expo Indonesia 2018 is targeted to be attended by more than 28,000 International buyers and followed by 1,110 participants. After the business forum she expects there will be more buyers from Taiwan.Meanwhile, Chief of the Indonesian Chamber of Commerce and Industry in Taiwan Robert James Bintaryo, said, during the last three years Taiwan's coffee imports from Indonesia have increased. The Indonesian Chamber of Commerce and Industry in Taiwan regularly invites Taiwanese businessmen to visit several locations listed as the best coffee producers in Indonesia such as East Java and Aceh. But until now Indonesia's coffee imports in Taiwan still occupy the third position. So Indonesia should try to continue to increase the number of sales and export of coffee to Taiwan.

                                                                                         

19
March

During the ASEAN-Australia Special Summit 2018 that took place in Sydney, Australia, Indonesia and Australia signed a maritime cooperation agreement on Friday (16/3). The agreement contains in the Plan of Action on Maritime Cooperation which was signed after the 2 + 2 meeting between Minister of Foreign Affairs and the Defense Minister of both countries. Indonesian Foreign Minister Retno Marsudi and Australian Foreign Minister Julie Bishop witnessed the signing of the cooperation undertaken by the Director General for Asia Pacific and Africa at the Ministry of Foreign Affairs, Desra Percaya and Deputy Secretary of the Indo-Pacific Group of Foreign Affairs Ministry, Richard Maude. Maritime security in the Asia Pacific region is very important, because the world economy is currently still dependent on maritime routes, both as trade routes and lines of communication. This was stated by Indonesian Minister Defense, Ryamizard Ryacudu and Minister of Foreign Affairs, Retno Marsudi during a bilateral dialogue 2 + 2 Minister Meeting with Minister of Defense of Australia, Marise Payne and Australian Foreign Minister Julie Bishop. According to Minister Ryamizard, International Trade which is increasingly growing still relies on the marine domain so that the issue of maritime security guarantee becomes a very crucial thing. He acknowledges that to maintain maritime security, Indonesia cooperates not only with Australia but also with various neighboring countries such as Malaysia, Singapore and Thailand with cooperation in coordinated patrol (Corpat). Concrete evidence of such cooperation is that the crime rate in these waters drops dramatically even to zero incidents. The recent piracy action in the Sulu Sea, which has also directly impeded the economy and caused unrest for the users of the track has gradually been overcome by Indonesia along with the Philippines and Malaysia. The three countries have taken concrete cooperation measures through the trilateral cooperation platform in the Sulu Sea. Minister Ryamizard said that the dynamics of maritime security cannot be separated from the development of radical / terrorist groups affiliated with ISIS, so that Indonesia holds trilateral cooperation not only solely facing piracy or crime in the ocean, but also related steps to deal with terrorist / radical group. Thus, the signing between Indonesia and Australia is believed to be more in line with the concepts of cooperation of countries in the region that is currently reviewed and perfected by the Ministry of Foreign Affairs. Minister Ryamizard considers cooperation with Australia as a step towards ensuring stability of security throughout the Indian Ocean and Pacific Ocean and ensuring that the maritime sector is surrounded with peace, stability and prosperity. Meanwhile, in a bilateral meeting with Australian Prime Minister Malcolm Turnbull on the sidelines of the 2018 ASEAN-Australia Special Summit at the International Convention Center, Sydney, on Saturday (17/3), Indonesian President Joko Widodo hopes that the signed maritime cooperation action plan can be implemented immediately. Both Foreign Ministers have also exchanged ideas on the concept of Indo-Pacific region architecture. He also hopes that the consultation on Indo-Pacific will continue for the sake of stability, peace and prosperity in the Indo-Pacific region.

18
March

The Clean Trash inThree Months Movement (TBBS) was launched by the Ministry of Environment and Forestry-KLHK together with Palembang City Government, on 21 January 2018. The implementation of theMovement is until 21 April 2018, however, this massive garbage clean movement will not stop after the date.Director General of Waste Management, Waste and Hazardous Hazardous Materials, Ministry of Environment and Forestry, Rossa Vivien Ratnawati to RRI, in Palembang on Monday (12/3/2018) said TBBS agenda should be the trigger to spur awareness to always apply the three Rs lifestyle namely, reduce, reuse and recycle waste.According to Vivien, the activity is intended to invite the people of Palembang more concerned about waste management, as well as preparation and dissemination of “Less waste more games”campaign during the upcoming Asian Games. To date, approximately 1,500 TBBS activities in 20 Provinces have been conducted, involving more than 2 million people. The activity succeeded in collecting more than one million tons of processed waste, consisting of organic, and inorganic waste. While the residue sent to the Final Disposal was only less than 600 tons. This indicates that the waste management initiative which is a collaboration between community and local government has been well implemented and needs to be appreciated. In addition, Vivien adds, there will also be fostering waste management campaign to Boy Scouts. Meanwhile, ad interim Palembang Mayor, H. Akhmad Najib, stated that Palembang City is improving to host the 2018 Asian Games, and supporting the achievement of clean Indonesia 2020 garbage. Akhmad Najib revealed that the clean of garbage action in Palembang was also enlivened by some entertainers who are concerned with environmental issues along with seven Waste Patrol ambassadors. In addition, there was a dialogue with a number of communities, as a means of sharing the realization of "Palembang Clean from Waste. Along with the dialogue, a waste management training was also conducted to 100 members of Scout Saka Wanabakti, by LHK Expert Staff for Youth Generation Development, in the hope that Scouts can become agents of environmental change, especially waste management.Similar activities with the concept of "less waste event" have been held in Semarang, and will still take place in several cities, such as Makassar, Ambon, Yogyakarta, Jayapura and Banjarmasin, until 15 April.

12
March

US President Donald Trump announced last week that he would implement a 25 percent import tariff policy for steel and 10 percent for aluminum to US trading partner countries. The policy is Trump's attempt to protect the domestic industry of the United States.In response, Indonesian Vice President Jusuf Kalla said in Jakarta Thursday (8/3) as reported by Republika that so far, Indonesia has not been affected by the tariff policy of steel and aluminum. However, if the import tariff policy is extended to other sectors, Indonesia will react. VP Jusuf Kalla said that Indonesia has a bargaining power with the United States. So far, Indonesia has imported soybeans, maize, wheat and aircraft from America. He also  asserted, if President Trump extends its import tariff policy to palm oil commodity, Indonesia will not hesitate to reduce the import of soybean and wheat from America. He views that the import tariff policy adopted by America is a challenge in global trade. Therefore, food self-sufficiency remains a top priority. He added that food security can be maintained, if productivity is improved. However, the increase in productivity must also pay attention to environmental aspects. So, how to improve productivity with technology and system is that to preserve the environment. Meanwhile, Trade Minister Enggartiasto Lukita said in Jakarta on Friday that Indonesia wants trade partner countries, especially the United States to apply a free and fair trade. He expressed this in relation to the US President step which will apply high import tariffs for steel and aluminum products. MInister Enggartiasto Lukita also disclosed that President Trump's step will not directly bring about a serious impact on Indonesia because Indonesia’s export of steel and aluminum to America is small. However, he asked any country, particularly the United States and Europe to conduct free and fair trade. Minister Enggratiasto percieved that basically, starting a trade war would be disruptive and detrimental. He added that so far, only tariff of steel and aluminum goods are set. However, if later it is also applied on other goods, Indonesia is ready to do the same policy. Take for example the palm oil trade with the European Union. If Indonesia’s palm oil is prevented from entering the EU countries, Indonesia will also take action related to the incoming products, sucha s wine.On the other hand, Indonesian Minister of Finance, Sri Mulyani Indrawati warned the potential trade war, if the United States government really imposes tariffs on steel and aluminum imports. She asserted that the world history shows that when there is a trade war, definitely there is  bad impact on the world economy. MInister Sri Mulyani further said that all countries in the world are waiting for the certainty of the plan. Becasue, this has the potential to make countries that have established trade relations with the USA retaliate each other due to the tariff.

07
March

The national manufacturing industry showed an increasingly aggressive performance in expanding its business and employment. This achievement is supported by the government by creating a conducive investment climate and providing business facilities for businesspeople in Indonesia. This was stated by Minister of Industry, Airlangga Hartarto in his written statement on Friday (2/3). Minister Airlangga said the government had launched several packages of economic policy, deregulation policy, and debottlenecking accompanied with simplifying requirements and business licensing. Based on a report by Purchasing Manager Index released by Nikkei and Markit, Purchasing Manager Index of Indonesia's manufacturing rose from 49.9 in January to 51.4 in February 2018. The Purchasing Manager Index above 50 was again achieved, since previously in December 2017 and January 2018, it was below of neutral point. While the Purchasing Manager Index above 50 indicated that manufacturing is expansive. Moreover, the achievement of Indonesia's Purchasing Managers Index in February 2018 also showed the highest position in operational condition since June 2016 or 20 months ago. Minister Airlangga Hartarto further said, the rise in the Purchasing Managers Index showed confidence in the industrial sector. Moreover, it's supported by the significant increase of doing business, from 106th rank in 2015 to the 72th rank in 2017. The Ministry of Industry recorded that polls of some purchasing managers at Indonesian manufacturing firms conducted by Nikkei. The results showed that the industry is experiencing the addition of new workers because usually related to an increase in domestic demand. With the increase of production, the company is able to raise the payroll for the first time in 17 months. The employment growth rate is the second highest level recorded during the survey. Referring to the data from the Ministry of Industry, during the period of 2015-2017, the number of medium industrial enterprises has increased significantly, reaching more than 4,000 business units until the second quarter of 2017, compared to 2014 about 1,200 business units. The increase is targeted to continue in the next two years, reaching more than 8,000 business units by the end of 2019.Meanwhile, the number of workers absorbed by industry in the 2015-2017 period has increased, from 15.390.000 (fifteen million three hundred and nine thousand) people in 2014 to 16,570,000 (sixteen million five hundred seventy thousand) people until the second quarter of 2017. It was targeted to continue to grow until the end of 2019 up to 17.1 million (seventeen million one hundred thousand) employees to be absorbed by the national industry.

05
March

Ministry of Industry (Kemenperin) establishes Task Force –Satgas of  Acceleration of Business Implementation at industrial sector. The task force is established as a follow-up to the issuance of Presidential Regulation No. 91/2017 on Acceleration of Business Implementation. Head of Industrial Research and Development Agency (BPPI) at the Ministry of Industry, Ngakan Timur Antara  in his official statement in Jakarta on Friday (2/3) said that this task force will perform escort and acceleration to handle business permit for investment in industrial sector. He further explained that to increase investment in the industrial sector, the Ministry of Industry have several strategies to be carried out by optimizing the utilization of fiscal facilities such as tax holiday, tax allowance, and import duty exemption of capital goods or raw materials. In addition, the Ministry of Industry has proposed a breakthrough of new facilities for investment activities in the form of super deduction for research and development activities and vocation as well as reduction of value-added tax for labor-intensive industries that can employ more than 1,000 people. In addition to investment, the government's ongoing effort is to boost exports. Ngakan views that as an initial strategy to increase exports, the Ministry of Industry has identified 15 export-oriented priority industries by 2018, covering the palm oil processing industry and its derivatives, food and beverage industry, paper and paper industry, crumb rubber industry, tires, and rubber gloves, as well as wood and wooden goods industries. Besides, there are also textile and textile products, footwear, cosmetics, soap and cleaning industries, automobile industry, electrical cable industry, pipe industry and iron pipe line, agricultural machine tool industry, electronics industry, jewelry industry, and craft industry. He also affirmed that his side has encouraged the expansion of exports to non-traditional markets, such as countries in Central and South America, the Caribbean, Central and Eastern Europe and regional organizations, Africa, Middle East and countries around the Indian Ocean with potential market to work with. Other strategies are through lobbying and negotiations within the framework of enhancing bilateral and multilateral cooperation by reducing tariff and non-tariff barriers to open ease of market penetration. Improved efforts are the facilitation of product promotion and business matching in new export destinations. Ngakan added, there are export financing facilities that need to be optimized in a bid to improve the competitiveness of the prices in export destination countries. Meanwhile, Minister of Industry, Airlangga Hartarto at Public Lecture at Syiah Kuala University (Unsyiah), Banda Aceh on last Sunday (25/2/2018) said that Indonesia's economic power is considered as one of the key players in encouraging global economic growth. Indonesia is able to contribute 2.5 percent to world growth. The achievements outperformed South Korea, Australia, Canada, England, Japan, Brazil and Russia. Based on the results of the World Economic Forum analysis, Asia was increasingly dominating world growth in 2017 and it is expected to be the same this year.

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