21
February

The draft government regulation on e-commerce will prioritize domestic products, Director General of Domestic Trade of the Trade Ministry Tjahya Widayanti stated.

"The draft regulation on e-commerce has yet to be finalized. However, it will prioritize domestic products," Widayanti noted here on Wednesday.

The draft regulation on electronic-based national trade system (SPNBE) has been discussed since 2015. Widayanti remarked that despite its priority on domestic products, the regulation will not explicitly mention the required percentage of domestic products that should be offered in online trading.

"However, we will prioritize domestic products to be sold on the e-commerce platform," she stated.

She admitted that the number of domestic products offered in e-commerce are limited, so the government has continued its efforts to increase online selling of domestic products.

"During the `Harbolnas` (national online buying day) recently, we have set a certain time to sell only domestic products," she added.

Widayanti could not as yet confirm whether the government would provide incentive for online platforms that sell domestic products, saying that they had yet to conclude the discussion on the draft regulation.(ant)

20
February

Indonesian Trade Minister, Enggartiasto Lukita and South Korea Trade Minister, Hyun Chong Kim met in Jakarta on February 19 to discuss the way to enhance trade and economy relations between the two countries. During the meeting the two ministers agreed to reactivate Indonesia - Korea comprehensive economic partnership agreement (IK-CEPA). When met during the Indonesia - Korea business forum in Shangrilla Hotel, Jakarta on Tuesday (Feb19), Minister Enggartiasto mentioned that the initiation is targeted to reach 30 billion US Dollar.

“The relaunch of the agreement is also continued with Bisnis Forum which bring together Indonesian and Korean entrepreneurs. Therefore the target set by the two heads of states worth 30 billion US dollar in the next three years can be achieved. We agreed that the agreement will be signed in November at the meeting of the two heads of states, meaning that it must substantially be completed before November,” said Airlangga.

Minister Enggartiasto added that this negotiation aims to reach both countries bilateral economy target that is expected will increase bilateral trade and investment relations to the highest level. (VOI/NK/DP)

20
February

The Minister of Trade of the Republic of Indonesia, H.E Enggartiasto Lukita and the Trade Minister of the Republic of Korea, H.E Hyun Chong Kim met on 19 February 2019 in Jakarta, Indonesia. The two Ministers discussed ways to enhance trade and economic relations between the Republic of Indonesia and the Republic of Korea. The two Ministers agreed to reactivate negotiations on the Indonesia - Korea Comprehensive Economic Partnership Agreement (IK-CEPA). Both Ministers believed that a successful negotiation toward an economically meaningful agreement would serve as a new platform toward a modern and dynamic economic partnership that reflects the strong bond between the two countries. This initiative signals the strong determination of both governments to create a favorable environment that is conducive to expanding two-way trade and investment and to maximizing the potential of the economic partnership. Reflecting the shared vision of both sides, it is agreed that the reactivation of the IK-CEPA negotiation will proceed on the basis of the following core principles:  striving to ensure the final agreement is of high quality, mutually beneficial, and as comprehensive as possible, covering trade in goods and services, investment, economic cooperation, and other areas to be agreed upon; and  building upon the existing multilateral and regional agreements as well as the outcomes of negotiations between the Republic of Indonesia and the Republic of Korea. The negotiations will aim to reach the economic goals set by governments of the two countries by substantially increasing the volume of bilateral trade and investment to the highest possible level. Both sides intend that the IK-CEPA will be a living agreement that can be improved over time. Both Ministers will instruct officials to commence work immediately and make swift progress on the IK-CEPA with the aim of reaching a conclusion as soon as possible by the end of this year. (rel-Kemendag)

20
February

IFC Investment Projects in Indonesia

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World Bank Group member IFC and PT CT Corpora (CT Corp) announced their first investment transaction together, wherein IFC is providing $275 million loan to PT Trans Corpora (Trans Corp), CT Corp`s wholly-owned subsidiary.

The aim is to support the growth of its retail, tourism, and property operations across the country, based on a statement received here on Tuesday.

IFC`s investment will help Trans Corp add new retail stores across 25 cities by 2025. This will subsequently boost the growth of modern retail infrastructure across the country and improve consumers` access to a range of quality products.

It will further develop local supply chains, involving a larger base of local suppliers and Small and Medium Enterprises (SMEs).

Trans Corp`s expansion of its retail operations is expected to create over 30 thousand new jobs in Indonesia.

In addition, working with over six thousand suppliers -- nearly 70 percent being SMEs -- will create some 23 thousand indirect jobs in areas, such as farming and distribution.

"We are honored to partner with a global player, such as IFC, with extensive global experiences, extensive networks, and knowledge. IFC`s support will help us expand and serve a growing number of customers with innovative products and services while also investing in their future by adopting more sustainable business practices," CT Corp Chairman Chairul Tanjung stated.

In line with the Government of Indonesia`s strategic priority to develop the country`s tourism sector, supported by a World Bank loan of $300 million, IFC`s investment will also help Trans Corp expand its tourism operations.

In addition to its existing properties, the Group has an agreement with Accor, a global hospitality company, to develop 30 new hotels, adding nearly six thousand new rooms across the country.

Furthermore, addressing the needs of the middle-income population as well as the country`s housing deficit, Trans Corp is developing more than 10 thousand affordable apartments across multiple locations.

Trans Corp is also committed to promoting resource-efficient buildings -- worth at least $275 million -- that meet IFC`s EDGE (Excellence in Design for Greater Efficiencies) Green Building standard.

The building sector is Indonesia`s third-largest final energy consumer and accounts for approximately 27 percent of the total final energy consumption. If left unmitigated, buildings are likely to consume nearly 39 percent of the total energy by 2030.

"IFC is delighted to engage with a leading Indonesian Group like CT Corp. This financing package aims to maximize Indonesia`s private sector-led development and support one of its key goals of creating jobs," IFC`s Regional Vice President for Asia & Pacific Nena Stoiljkovic stated.

"By embracing innovation and inviting private sector investment, Indonesia can boost economic growth through a pipeline of sustainable and diverse projects," IFC`s partnership with CT Corp began with a memorandum of understanding signed by Philippe Le Houerou, CEO of IFC, and Chairul Tanjung in October 2018. (ant)

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