Focus (235)


Export-Import Bank of the United States (EXIM) is exploring potential funding of trade cooperation and investment in Indonesia, which is worth US$750 million dollars.  The cooperation funding will be written in Memorandum of Understanding -MoU to be signed soon.

In a written statement in Jakarta, Sunday (25/10), the commitment to increase bilateral relations and economic cooperation between the USA and Indonesia was revealed in a meeting between Chairman and President of EXIM, Kimberly A. Reed with Indonesian Coordinating Minister for Maritime and Investment, Luhut Binsar Pandjaitan in Jakarta on Sunday (25/10).

Reed in her statement said that the MoU will affirm the commitment of EXIM towards various project potentials in Indonesia, starting from energy, wireless communication technology (4G+/5G), health until broadcast with support of goods and services from the USA.

Reed added, EXIM wants to establish cooperation to boost chances for investment and business development in Indonesia. That was seen to give benefits for workers and businesspeople from the USA and Indonesia.

In the previous statement, Kimberly Reed said that Indonesia is the biggest economy in Southeast Asia and an important economic partner for the USA in Indo-Pacific. Meanwhile, Minister Luhut Panjaitan welcomed the proposed MoU and expected the US investment increase in some infrastructure, energy, transportation, and telecommunication projects. 

The agreement was part of the US delegation visit to Indonesia, Vietnam, and Myanmar, which was led by US DFC CEO, Adam Boehler as well as US high officials namely Chairman of EXIM and officials from US Departments of Finance, Trade, Energy, and Foreign Affairs.

EXIM is an independent federal agency which promotes and supports US employment by providing competitive export credit required to support US goods and services sales to international buyers.


Indonesian Minister of Agriculture, Syahrul Yasin Limpo encourages a long-term economic recovery framework for the ASEAN region and the world as a whole, especially in the food and forestry sectors. He emphasized that recovery needs to be carried out, considering the food sector is a major need that must be guarded together, especially in the situation of the Covid-19 pandemic. The move to formulate the ASEAN Comprehensive Recovery Framework is proof of Indonesia's seriousness in creating a healthy and productive ASEAN. This was stated by Secretary General of the Ministry of Agriculture, Momon Rusmono when representing the Minister of Agriculture Syahrul Yasin Limpo at the 42nd ASEAN Minister of Agriculture and Forestry virtual meeting hosted by Cambodia on Thursday (22/10).

Momon Rusmono further stated that so far, the Indonesian Ministry of Agriculture has played an active role in achieving regional and global food security, particularly in the framework of ASEAN cooperation. In fact, the government continues to encourage the important role of the agricultural sector in creating jobs in rural areas and increasing the income of farmer families. He emphasized that the role of farmers in fulfilling food for more than 273 million Indonesians is very vital. He also added that currently, the Ministry of Agriculture has also implemented a four-way policy in order to maintain food availability in the new normal era. One of them is by increasing production capacity and food reserves. There is also diversification of local food based on local wisdom and utilizing marginal land and yards as well as the development of modern agriculture. On the occasion, he asked for the participants to collaborate in tackling the pandemic and avoiding rivalry. The call is in line with President Joko Widodo's request at the 75th UN General Assembly. Momon Rusmono also emphasized that economic activity must gradually be carried out while still prioritizing health aspects. The virtual 42nd ASEAN Minister of Agriculture and Forestry meeting was preceded by a Senior Official Level meeting the day before.


Indonesian Finance Minister, Sri Mulyani Indrawati said that the government is preparing tax deductions for research or innovation by companies, including pharmacies which are currently focusing on inventing the Covid-19 vaccine. That was stated by Minister Sri Mulyani in an online press meeting on the October State Budget in Jakarta on Monday (19/10). She added that the government is expecting Indonesian pharmaceutical companies to use the moment of Covid-19 and various incentives from the government, including the super tax deduction.

She further remarked that pharmas which are conducting research on Covid-19 vaccine are included in the criteria to receive the tax incentive. With the tax stimulus, Indonesian pharmas are expected to increase the capacity and ability of Indonesian pharmaceutical industry.

The former Managing Director of the World Bank Group is optimistic that the national pharmaceutical industry has the potential to become a global player, because Indonesia is one of the countries with great size in economy and population. Minister Sri Mulyani also said that countries with strong pharmaceutical industry can obtain or keep finding solutions for pandemic and establish their leadership at global level.

Previously on October 9 2020, she issued Finance Minister Regulation (PMK) No. 153/2020 on Reduction in Gross Income for Particular Research and Development Activities in Indonesia.

In the Finance Minister Regulation, taxpayers who conduct particular research and development activities in Indonesia will be granted gross income reduction for 300 percent maximum. First, there is the gross income reduction amounting to 100 percent from total cost spent for research and development. Second, there is additional reduction up to 200 percent from cost accumulation spent for research and development in certain periods. The research and development activities include pharmaceutical ingredients, pharmaceutical for human, traditional medicine, phytopharmaceuticals industry, natural extract and ingredients industry, as well as health and lab equipment. 


Central Java Governor - Ganjar Pranowo                                                                                                                                                                                                                              VOI-NK


Governor of Central Java, Ganjar Pranowo said that the Central Java provincial government is preparing for a potential tsunami on the southern coast of Java with various contingency plans as well as outreach and education to the people in the area. This was done based on the earthquake activity recorded from various sources including the Meteorology, Climatology, Geophysics Agency, BMKG. The signs of a tsunami have been known to have potential in the Indian Ocean through research some time ago, which then raised questions regarding the megathrust in the Indian Ocean covering the central and southern parts of Java. So it is important to pay attention to these danger zone areas. This was said by Ganjar Pranowo, during a virtual discussion on Disaster Risk Reduction Month Commemoration, as reported by Antara in Jakarta, Monday (12/10)

Governor Ganjar Pranowo said that the readiness to face a tsunami on the south coast of Java was not sufficient only with contingency plans and socialization, but also preparation of evacuation routes and temporary shelters. These efforts are being prepared, including in areas that have been mapped, including Cilacap, Kebumen, Purworejo and Wonogiri. The Governor said there were more than 600 thousand people threatened by a tsunami in the four regions.

On the other hand, education for the local community is also an important point in disaster preparedness. Take for example in Japan, the damage caused by the tsunami can be minimized by the presence of many trees. This has been monitored in Kebumen where there are Sea Pine or Shrimp Pine trees that have grown lush and tall. According to Governor Ganjar, if the areas in the southern part are planted with lots of trees, this might be help prevent the worse impact of the tsunami. Furthermore, the Governor said, tsunami disaster mitigation also includes an alarm that functions when the system receives information or warnings.


Indonesia Increases Trade Cooperation with the United States                                                                                                                                                                            

Indonesia increases trade cooperation with the United States through the holding of the Indonesia-US Virtual Business Meeting carried out the Indonesian Ministry of Foreign Affairs and the Indonesian Chamber of Commerce and Industry of the United States Committee (09/10). The online business meeting was attended by 46 U.S. companies and 47 companies from Indonesia, which are doing business in 5 leading sectors, namely clothing, rubber, footwear, electronics and furniture. As quoted on the page (09/10), Deputy Minister of Foreign Affairs of the Republic of Indonesia, Mahendra Siregar, who was also present at the event, believed that the economic relations between Indonesia and the United States would strengthen. He perceived that Indonesia has completed the process of discussing the Generalized System of Preferences-GSP which is a country's trade policy that cuts import duties and hopes for a positive response from the government in the near future. In addition, Indonesia has also passed the Job Creation Act which is an amendment of 79 existing laws in Indonesia. The Job Creation Law is aimed at improving the national economic performance and enhancing the business climate through simplifying investment procedures, overcoming regulatory inconsistencies, and providing legal certainty.

Meanwhile, Indonesian Ambassador to the United States, Muhammad Lutfi explained that Indonesia and the United States have experineced unique trading condition amid the Covid-19 pandemic. As a consequence, Indonesia's trade to the United States grew by 7.7% in the first quarter of 2020. Positively, this shows that Indonesian products have a high potential to enter the U.S. market. 
Currently, the Ministry of Foreign Affairs, Ministry of Trade and several technical ministries under the coordination of the Coordinating Ministry for Economic Affairs are also conducting joint studies regarding the formation of the Indonesia-US Limited Trade Deal to further encourage trade between the two countries. The United States is one of Indonesia's main trading partners. The total value of bilateral trade between the two countries reached US$ 27.1 billion dollars in 2019, with Indonesia's export value to the U.S. amounting to US $ 17.8 billion dollars and an import value of US $ 9.3 billion dollars. Trade between Indonesia and the United States has also recorded a surplus over the last 5 years.


The Ministry of Trade (Kemendag) again held the 'Good Design Indonesia 2021' event which was launched virtually from the Ministry of Trade Office in Jakarta on Tuesday (6/10). The event, which is a collaboration among the Ministry of Trade, the Japan Institute of Design Promotion (JDP) and the Japan External Trade Organization (JETRO), aims to improve the design of Indonesian export products. Minister of Trade, Agus Suparmanto said that his side continues to be committed to encouraging and supporting business people to be able to develop their products. One of them is through design / packaging / product development amid the Covid-19 pandemic and exploring export market opportunities. Thereby, the Ministry of Trade calls for Indoensian business people to continue to make various innovative breakthroughs in improving the economy and trade amid the Covid-19 pandemic.

Minister Agus further stated that his side appreciated JDP and JETRO for the cooperation that ha
s existed during the implementation of the 2020 GDI and the three previous GDIs. This collaboration is expected to increase the quality and value of Indonesian local products so that they can be accepted in the global market. It is hoped that all people, especially business people, producers / exporters, designers, and academics will create a valuable and quality export product, and be able to compete in GDI 2021. These products and designs are expected to contribute to increasing exports and the national economy and benefit the community and environment.

Director General of National Export Development, Kasan said
that registration for GDI 2021 can be accessed on the page starting January 7, 2021. All registered products will be screened by a jury who is competent in their field. It is hoped that the 2021 GDI event will provide benefits to various parties, especially in increasing non-oil and gas exports which in turn will increase the trade balance.

Meanwhile, President Director of JETRO -Keishi Suzuki, who was also present at the event, revealed that his
side has supported the development of GDI since 2017 and will continue to collaborate with the Ministry of Trade. He also emphasized that design development is an important aspect to increase Indonesia's exports.


Indonesian Cocoa Processing Industry the Third Largest in the World                                                                                                                                                                   gbgindonesia

Indonesian Minister of Industry Agus Gumiwang Kartasasmita said that the cocoa processing industry contributed significantly to foreign exchange amid the pandemic. The export value of Indonesian cocoa reached 549 million US dollars in January-June 2020, an increase of 5.13 percent compared to the same period last year. At the inauguration of the Pasuruan Cocoa Technical Center Mondelez International which was carried out virtually on Wednesday (7/10), the Minister of Industry said, eighty percent of Indonesia's cocoa production is intended for the export market.

The Minister of Industry said that currently the cocoa processing industry has been able to produce various variants, such as cocoa liquor, cocoa cake, cocoa butter and cocoa powder with the main export in the form of cocoa butter which has spread to countries such as the United States, Netherlands, India, Estonia, Germany and China. He is optimistic that the cocoa processing industry can develop well because it is supported by Indonesia's potential with a total installed capacity of 800 thousand tons per year from 13 companies. Agus Gumiwang revealed that Indonesia's cocoa processing industry is ranked 3rd in the world after the Netherlands and Ivory Coast.

Another potential, according to the 2018/2019 report by the International Cocoa Organization (ICCO), is that Indonesia's cocoa bean production of 220 thousand tons places Indonesia in the 6th position as the largest producing country after Ivory Coast, Ghana, Ecuador, Nigeria and Cameroon.

With the characteristics of Indonesian cocoa beans which have a high melting point and are rich in fat content, the cocoa processing industry can produce high quality products in terms of taste, aroma, and even health benefits.

The Minister of Industry welcomed the establishment of the Cocoa Technical Center by Mondelez International in Pasuruan, East Java, with an area of ​​5 hectares and an investment of US $ 13 million. Executive Vice President and President of Asia, Middle East and Africa of Mondelēz International, Maurizio Brusadelli said that the sustainability of cocoa supply is the key to long-term growth for Mondelez International in Asia and throughout the world. Brusadelli said that people want delicious snacks and the comfort of consuming them by knowing where the raw materials are obtained and produced in a way that has a better impact on the environment and community.


The Job Creation Omnibus Bill or Omnibus Law Ciptaker was officially passed into law at the Indonesian House of Representatives -DPR plenary session on Monday, Oct 5. Deputy Chairman of the Chamber of Commerce and Industry for International Relations, Shinta Widjaja Kamdani said that the business community welcomes and appreciates the government and the DPR for agreeing the ratification of the omnibus law on Job Creation to become Law. She believes that the Job Creation Omnibus Law is able to answer problems that have been an obstacle in the business world, especially related to overlapping regulations and permits. Therefore, it can increase investment which is expected to boost the economy and investment through the creation and expansion of employment opportunities

Shinta Widjaja Kamdani also said that the presence of the Job Creation Omnibus Law is important and necessary to support Indonesia's economic growth through economic recovery and transformation programs, especially in the midst of the Covid-19 pandemic conditions which have weakened the entire world economy. The dynamics of global economic change need to be responded quickly and accurately. Because, without structural reforms, economic growth will continue to slow down. The Covid-19 pandemic has a broad impact not only on health, but also a contraction in the economy, including the provision of jobs. Currently, many have lost their jobs. The Job Creation Omnibus Law is important and necessary to support economic growth

Meanwhile, Coordinating Minister for the Economy Airlangga Hartarto said the Job Creation Law was needed to increase the effectiveness of the bureaucracy and increase employment. Minister Airlangga Hartato added, this law will provide benefits to society and the government. Indonesia needs simplification, synchronization and trimming of regulations. For this reason, a Job Creation Omnibus Law is needed which revises several laws that hinder the achievement of goals and job creation. The law also acts as an instrument and simplifies and increases the effectiveness of the bureaucracy.



world habitat day 2020                                                                                                                                                                                                                                                          BPMI


Indonesian President Joko Widodo reminded the importance of a new urban agenda at the opening ceremony of the World Habitat Day which was held at the Surabaya City Hall, on Monday (Oct5). President Joko Widodo in his speech which was broadcast virtually said, the World Habitat Day assures the world that the new urban agenda could not be delayed any longer. According to the President, 55 percent of the world's population live in cities and by 2050 the number of people living in cities is estimated to increase to 68 percent. The highest rate of increase occurred in the continents of Asia and Africa. According to the President, Indonesia is predicted to have a population of around 300 million in 2030 and 63 percent live in urban areas

President Joko Widodo considered the new urban agenda can be very important. If not prepared seriously, this rapid growth can trigger problems, ranging from population density and poverty, the environment, the availability of public space, the availability of basic infrastructure, especially clean water and sanitation, including housing problems and urban problems. However, if handled properly, the President believes that urbanization can be an opportunity for the nation to progress, become a center of creativity and innovation, spuring economic growth and improving the quality of life of its citizens.

Meanwhile, Mayor of Surabaya Tri Rismaharini said that settlements in the village are one of the keys in resolving the handling of COVID-19 in Surabaya. By not changing the culture of the village located in the middle of the city, the community can be more responsible in efforts to deal with COVID-19 in their environment.

With the theme “Housing for All: A Better Urban Future”, the commemoration of World Habitat Day 2020 was held in collaboration with UN-Habitat, the United Nations agency engaged in the field of housing and sustainable urban development. One of the factors for choosing Surabaya to host this event was due to the achievements obtained by Mayor Tri Rismaharini in the urban and residential sectors, on the commemoration of World Habitat Day 2018. Mayor Risma was awarded the Scroll of Honor Award from UN-Habitat at the UN headquarters in Nairobi, Kenya, for her policy towards inclusive planning of Surabaya city, so that none of its residents feel neglected.


Indonesian through synergy among ministries or institutions and regional governments is accelerating electric vehicle infrastructure. This aims to guarantee energy availability for the users. Quoted from Antara on Sunday (4/10), Director for Electric Technical and Environment at the Energy and Mineral Resources Ministry, Wanhar had created policies, especially for electric vehicle charging infrastructure. He hoped businesspeople could participate through the existing incentives. 

Wanhar also said that the Ministry of Energy and Mineral Resources,  issued Ministerial Regulation No. 13/2020 on Power Charging Infrastructure Procurement for Battery-based Electric Vehicles. In that regulation, it describes the Power Charging Station (SPKLU) and Battery Swap Station (SPBKLU) for electric vehicles which include charging stations and private chargers such as at showroom, private companies, and households.

Wanhar further said that in the General Planning for National Energy (RUEN), the government targets 2,200 units of electric cars and 2.13 million units of electric motorbikes to be produced in 2025. This number will increase upto 4.2 million electric cars and 13.3 million electric cars in 2050. In the General Planning, the power station is also targeted to be 1,000 units in 2025 and 10,000 units in 2050.

According to Wanhar, the government has a roadmap with state-owned power company PT PLN, namely fulfilling the target of 189 charging stations across Indonesia in 2020, both charging stations and battery swap stations. The government also has planned that in 2025, there will be 2.465 power charging stations. Until now, there have been 62 units of charging stations owned by PT PLN, Agency for Assessment and Application of Technology, PT Pertamina, and private companies.

Wanhar reminded that electric vehicles are eco-friendly. So, he asked Indoiensian people to move on to electric vehicles for cleaner air with lower cost.

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