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June
Indonesia-China Strengthen Development and Maritime Cooperation
Written by Maryati
Indonesian Coordinating Minister for Maritime and Investment, Luhut Binsar Pandjaitan has visited China recently. In his visit, Minister Luhut met Chinese Foreign Minister Wang Yi in Guiyang on Saturday (05/06). In the meeting, both of them signed a MoU on forming High Level Dialogue and Cooperation Mechanism -HDCM. In this agreement, Indonesian Coordinating Ministry for Maritime and Investment and members of Chinese State Council were given authority by each government to act as HDCM leaders. Both sides also signed a MoU on Maritime Cooperation Strengthening.
The press statement of the Coordinating Ministry of Maritime and Investment on Monday (07/06) mentioned that Minister Luhut expressed his belief that both countries can keep strengthening the mutually beneficial relations to increase people's welfare now and tomorrow.
The meeting discussed some strategic topics of the two countries, starting from politics, security, health, synergy, and strategy for developing priority cooperation projects, trade and economy, investment, as well as maritime and aeronautics. There were also some thematic meeting sessions with Chinese government and private sector discussing some cooperation programs and projects to be done by the two sides.
Meanwhile, quoting China's Foreign Ministry official webpage on Saturday (06/06), Minister Wang Yi said that Indonesia is a main developing country and quite important. According to Wang Yi, China always sees the China-Indonesia relations from a strategic perspective and will develop the two countries' cooperation from the global perspective.
Wang Yi further said that more recently, China and Indonesia have been joining hands in handling Covid-19 pandemic. Then, both countries also cooperated in vaccination. They had further coordinated development strategies, promoted development cooperation, and contributed for regional economic recovery.
Some Indonesia-China projects, such as Jakarta-Bandung high-speed rail and Two Countries Twin Park are going smoothly. Also, China is Indonesia's top trade partner in the last 10 years and 2nd top investment source. Wang Yi said that both countries must take the High-Level Dialogue and Cooperation Mechanism as an opportunity to plan some better bilateral cooperation in various sectors, to collect more resources, and to form a greater synergy in a bid to bring the bilateral relations into a higher level.
June
Indonesia to become the largest producer of halal products in the world
Written by Maryati
Indonesian Vice President, Ma'ruf Amin opened the online Indonesia Industrial Moslem Exhibition (ii Motion) from Jakarta, Thursday (3/6). In his remarks, Vice President Ma'ruf Amin is optimistic that Indonesia will become the largest halal producing country in the world with various potentials and government support.
He also explained that the government is preparing the 2019-2024 Indonesian Sharia Economic Master plan with four main strategies that have been set. First, it is to strengthen the halal value chain consisting of the halal food and beverage industry, halal tourism, Muslim fashion, halal media and recreation, halal pharmacy and cosmetics, and renewable energy. Three other strategies set by the government in the Master plan are strengthening the Islamic finance sector, strengthening micro, small and medium enterprises, and utilizing and strengthening the digital economy.
Based on data from the World Population Review, the number of Muslims in the world reaches 1.9 billion people. Indonesia has the largest Muslim population. According to the Vice President, this shows that Indonesia has a large market potential for Muslim products. He emphasized that Indonesia also wants to become the largest producer and exporter of halal products in the world. Therefore, he asked the relevant ministers to encourage Indonesia to become a global halal producer in the food, beverage, fashion, pharmaceutical, cosmetic and tourism sectors. This exhibition aims to encourage the promotion and publication of Indonesian Muslim products to be increasingly known to the world.
On the same occasion, Minister of Industry, Agus Gumiwang Kartasasmita said that his ministry is also encouraging the growth of the Small and Medium Industry of Muslim products in an effort to make Indonesia the largest producer of halal products in the world.
Meanwhile, Director General of Small, Medium and Multifarious Industries of the Ministry of Industry, Gati Wibawaningsih said, the public's need for products and services labeled as halal is increasing. According to Gati, the large potential market for the global halal product industry is not only competed by countries with a Muslim majority, such as Indonesia and Malaysia. Companies from China, Thailand, the Philippines, Japan, South Korea and Australia, but also produce halal goods. However, she believes that Indonesia is able to take part in the halal product market, at least as a major player in Asia.
June
Indonesian Minister of Finance, Sri Mulyani Indrawati said that during the economic recovery trend from the Covid-19 pandemic, there are 2.61 million new jobs. She said the unemployment rate increased in August 2020 into 7.07 percent. However, it decreased into 6.26 percent in February 2021. This absorption is faster than the number of jobseekers that increased 1.59 million in the same period. That was stated by Minister Sri Mulyani in the House of Representatives' plenary session in Jakarta on Monday (31/05).
She further stated that new jobs and less unemployment are some of many indicators of improving people's welfare. She also said that previously, the people's welfare improvement and human resource quality increase were hampered, especially in 2020 because of the Covid-19 pandemic.
The people’s improving welfare indicators were also seen from Indonesian Human Development Index in 2020 that rose 71.92 in 2019 into 71.94. The Gini ratio also increased in 2020 into 0.385. Farmers and fishermen welfare also experienced similar changes.
Farmers Exchange Value that decreased into under 100 in May until June 2020 had climbed up again into above 103 until April 2021. Fishermen Exchange value also rose into 103.70 in April 2021.
Minister Sri Mulyani then hoped people's welfare could improve further in 2021 and 2022 through various policies in the Covid-19 handling programs. She also affirmed that the National Economic Recovery until now has succeeded in holding pandemic's negative impacts in 2020 and 2021. Therefore, this moment should be used to increase the household income, especially the underprivileged and vulnerable groups. The poverty is also hoped to return into a single digit.
May
Ministry of Industry Spurs Exports of Industrial Products through Free Trade
Written by Maryati
The Indonesian Ministry of Industry continues to actively encourage international access and cooperation development in the industrial sector. The goal is to spur the national economy through synergies with strategic partner countries, particularly in the framework of free trade agreements (FTA). Director General of Resilience, Territory and International Industrial Access at the Ministry of Industry, Eko S.A. Cahyanto said in Jakarta, Friday (28/5) that Indonesia's participation in the FTA had some influence on Indonesia's trade performance, particularly exports. As the backbone of Indonesia's exports, the contribution of the industrial sector has reached US $ 131.13 billion or 80.30 percent of total national exports. In 2020, the total national export exceeded US $ 163.30 billion. Indonesia also recorded a surplus of US $ 14.17 billion for trade performance in the industrial sector. According to Eko Cahyanto, this is the largest surplus in the Indonesian industrial sector in the last 10 years.
He added, the opportunity for market access in the FTA should be handled together and maximally utilized because the access to trade liberalization that has been obtained by Indonesia is very large. On average, Indonesia's FTA partners have liberalized the majority of their import duties for Indonesian products. More than 90 percent of the total tariff posts of partner countries are zero. This extraordinary market access must be utilized maximally in order to boost export performance.
Eko Cahyanto also explained that since 2002, Indonesia has signed 18 free trade agreements, namely eight within the framework of the ASEAN Economic Community, and the Regional Comprehensive Economic Partnership. There are eight agreements in the bilateral framework, including with Japan, Pakistan, Chile, Australia, Mozambique and South Korea.
Indonesia is also exploring free trade negotiations with around 20 other partner countries, including the Southern African Customs Union, consisting of South Africa, Botswana, Lesotho, Namibia, and Swaziland.
May
Indonesia-Australia join hands in Gannet 5 Operation to Eradicate IUU Fishing
Written by Maryati
Indonesia and Australia inaugurated the maritime operation Gannet 5, a coordinated patrol to maintain the security and safety in the borders. This operation aims to eradicate illegal practices that cause loss for the two countries, including the illegal fishing. The coordinated patrol was written in the MoU signing held on Monday (24/5). This cooperation involves Indonesian Maritime Security Board (Bakamla), Indonesian Ministry of Maritime Affairs and Fisheries, Australian Border Force (ABF), and Australian Fisheries Management Authority (AFMA).
Despite the pandemic, Indonesia and Australia keeps being committed to cooperating in creating regional stability, especially at the two countries' border. That was stated by Acting Director General for Marine Resources and Fisheries Monitoring, Antam Novambar. He added that with Gannet 5 coordinated patrol, both countries keep showing their commitment in eradicating illegal practices that affect the two countries' prosperity, including illegal fishing. According to Antam, Gannet 5 is also a concrete commitment of both countries in implementing the Indonesia-Australia Joint Declaration on Maritime Cooperation signed in 2017.
Australian Maritime Border Command (MBC) Commander Rear Admiral Mark Hill said that Australia and Indonesia have the longest border area in the world, which comes with great risk against maritime security and safety. He also said that as sovereign countries, Indonesia and Australia have challenges in jurisdiction to information sharing. The issues vary starting from natural resources exploitation, drugs smuggling, to terrorism; all that cannot be done by one agency or one country only.
Meanwhile, Bakamla's Deputy for Policy and Strategy, Tatit Eko Witjaksono explained, coordinated patrol between Indonesia and Australia has been done since 2013 under the code Operation Shearwater. In 2018, the code changed into Operation Gannet. He explained, in the beginning of Covid-19 pandemic in early 2020, both nations agreed to postpone the Operation Gannet to avoid virus infection. However, it was proven successfully that the pandemic did not reduce the commitment in maintaining the border security and safety of both countries.
May
Maritime and Fishery Ministry Opens #PasarLautIndonesia Gallery, Offering Processed Fish Products and Cosmetics
Written by Maryati
Indonesian Ministry of Maritime and Fishery prepared the #PasarLautIndonesia or in English #IndonesianSeaMarket gallery in three locations. The first is at the Terminal 3 arrival gate of Soekarno-Hatta's International Airport. The second and the third will be at the rest area of the Trans Java toll road, namely at the Km 260 B Brebes and Km 456 Salatiga.
The galleries are a support from the Maritime and Fishery Ministry for the Proud of Indonesian Product movement. That was stated by Director General for Maritime and Fishery Product Competitiveness Strengthening, Artati Widiarti as quoted from the ministry's website on Monday (24/5).
Artati said that the galleries were also part of the initial launching of "Indonesian Sea Market". At the #PasarLautIndonesia gallery, there will be top sea and fish products of micro, small, medium enterprises (MSMEs). The gallery was launched at Terminal 3 of Soekarno-Hatta International Airport.
At the gallery, visitors can buy various processed products such as fish cereal, fish floss, crab floss, fish sauce, fish noodle, milkfish nut, fish skin, and shrimp paste. There are also skin care products such as facial wash, facial mask, shampoo, serum, spa salt, as well as sea-based handicrafts.
Artati further stated that specially for the galleries at KM 260 B and 456 Trans Java Toll Road rest area, there will be more products of local micro-small-medium business. Therefore, the Proud of Indonesian Product can move the national economy and a realization of Indonesian people's mutual cooperation. She added that by purchasing MSMEs products, one supports the people's economy and at the same time is proud of national products.
Similarly, President Director of state-owned airport operator, PT Angkasa Pura II, Muhammad Awaluddin said that a collective action in various sector is needed in supporting MSMEs. He also ensured his support for various MSMEs as initiated by the Maritime and Fishery Ministry along with Indonesian Sea Market. One of which is providing an activity area around the airport.
He said choosing Soekarno-Hatta as one of the gallery locations is a right choice because it is the busiest airport in Indonesia. Soekarno-Hatta is also the main entrance to Indonesia and the main hub for domestic air connectivity.
May
Micro, Small and Medium Enterprises are Important Pillars of Indonesia's Economic Awakening
Written by Maryati
President Joko Widodo emphasized that the role of Micro, Small and Medium Enterprises (MSMEs) is important for Indonesia's economic growth. Therefore, he appealed to all parties to continue to support them. He made his remarks at the Proud of “Made in Indonesia” National Movement Festival in Yogyakarta-Solo-Semarang, held virtually on Thursday (20/5).
President Joko Widodo also stated that the Micro, Small and Medium Enterprises businesses are spread throughout Indonesia. The types of businesses and their products are very diverse, involving many local communities, as well as creating new jobs and they are able to absorb a lot of employees. The government also wants to fill the momentum of National Awakening Day on May 20 by accelerating the revival of Indonesian-made products. The resurgence of Indonesian Micro, Small and Medium Enterprises products, he said, is marked by the ability to produce high-quality products, dominating the domestic market, and more competitive in the global market.
To support the MSMEs’ progress, President Joko Widodo hopes that all parties will be involved and they take part in action by providing the best places for them to introduce and market their products. He also hopes that the products of the MSMEs can be placed in the storefronts of shopping centers, filling many airports, rest areas, tourism attractions, and other strategic places.
President Joko Widodo instructed the related stakeholders to prepare more space and interesting virtual events so that Indonesian Micro, Small and Medium Enterprises products are increasingly recognized and desirable so that people will love and be proud of Indonesian products.
On the same occasion, Coordinating Minister for Maritime Affairs and Investment, Luhut Binsa Pandjaitan said that as many as 5.7 million units of Micro, Small and Medium Enterprises have entered the digital ecosystem. This number has been achieved since the commencement of the Proud of “Made in Indonesia” National Movement in May 2020 up to April 2021. According to Minister Luhut, the government will continue to encourage local artisans to graduate, enter e-commerce and increase their sales. He is also optimistic that the target of 30 million onboarding Micro, Small and Medium Enterprises by 2023 can be achieved with the cooperation of all parties.
May
National economic growth is already on the right track and is heading towards a positive growth. Deputy Chairman of the Indonesian Chamber of Commerce and Industry for National Entrepreneur Development, Arsjad Rasjid in his statement in Jakarta, Wednesday (12/59() said that the growth of gross domestic product (GDP) in the first quarter of 2021 was something to be grateful, because it took place amid the Covid-19 pandemic that is till hitting Indonesia. He perceived that the smaller contraction in the first quarter of 2021 shows signs of increasingly real economic recovery and is believed to be heading in a positive direction.
Based on the data from the Central Statistics Agency, in the first quarter of 2021, national GDP was still minus 0.74 percent on an annual basis, yet, improving compared to the fourth quarter of 2020 which was minus 2.19 percent. Another positive factor was that a number of business sectors experienced a positive growth, namely information and communication, water supply, waste management, waste and recycling, and health services and social activities.
Arsjad is optimistic that in the second quarter of 2021, economic growth will be more expansive, with initial estimates in the range of 5-7 percent on an annual basis. This is in line with the increasingly massive implementation of the Covid-19 vaccination, both by the government and the Chamber of Commerce and Industry. He also explained that in May 2021, it is scheduled to start a mutual cooperation vaccination program for workers and their families.
Mutual cooperation vaccines are distinguished from vaccines used in the government programs. This is based on the Regulation of the Minister of Health concerning the Implementation of Vaccinations in the Context of the Covid-19 Pandemic. The vaccines that the Chamber will use in the program are the Sinopharm vaccine from China and the Moderna vaccine from the United States. Previously, on April 30, 2021, over 480,000 vaccines from Sinopharm arrived in Indonesia via Soekarno-Hatta Airport. Arsjad also described that the optimism for economic growth is supported by the Mutual Cooperation vaccination program as a game changer. Vaccination is a major factor in stimulating economic and social activity while still implementing strict health protocols.
May
Nusantara Indonesian Digital Cooperatives Store Officially Opens
Written by Maryati
Speaker of the Indonesian Regional Representative Council (DPD RI), AA La Nyalla Mahmud Mattalitti inaugurated the operational of Warung Koperasi Digital Indonesia (KDI) Nusantara or Nusantara Indonesian Digital Cooperatives Store in a bit to support the micro small medium businesses (MSMEs) and small medium industries (MSIs).
In an official statement in Jakarta on Monday (10/5), he said the Covid-19 pandemic has hit many levels of economic sectors, including the micro-small-medium businesses. This is very different from the 1998 crisis. At that time, the MSMEs survived because only one crisis happened.
La Nyalla further affirmed that moving the MSMEs sector is crucial. He also perceived that one way that can be taken in this condition is by utilizing digitalization. He said the world is experiencing the disruption era. All countries are forced to accelerate the use of technology, and to change the way of life, the way to interact, including the transaction process in businesses.
He affirmed, besides being initiated purely by Indonesians, the Nusantara KDI Store is oriented in boosting the MSMEs and MSI. The economic movement is marked by people's purchase that will affect the running of the production sector. Moreover, if the Nusantara KDI Store focuses on staple foods, agriculture will also move.
La Nyalla added that if the production sector is moving, the Gross Domestic Product –GDP will grow. This is identical to economic growth and equivalent to both regional and central government revenue. This will bring about regional fiscal increase.
Therefore, La Nyalla appreciated the Nusantara KDI Store that has hundreds of branches spread across some provinces of Indonesia with tens of thousands members. La Nyalla said the Nusantara KDI Store should be supported by the government through related ministries or institution
May
Indonesian Minister of Investment, Bahlil Lahadalia is optimistic that Lebak Regency in Banten Province can be a new economic growth area. He said that Lebak shares similar potential with Batang Integrated Industrial Area in Central Java. Another reason is that there is a toll road connecting Jakarta and Lebak with three segments. That was affirmed by Minister Bahlil Lahadalia when visiting Lebak last Saturday (8/5). He visited the Cileles Toll Gate plan of the Serang-Panimbang Toll Road as well as the potential area for an integrated industrial area in Lebak.
Lebak has 3,000 hectares in Cileles Industrial Area with clean and clear status, so it is ready for development to attract investors.
Minister Bahlil further stated that his ministry's duty is not only to facilitate investors in doing business in Indonesia, but also to develop investment-supporting infrastructures and facilities. He also remarked that many industrial areas in Indonesia will provide more choices for investors and increase the country's competitiveness.
Banten Province ranks 4th as the greatest investment destination in the first quarter of 2021 with investment value reaching Rp14.8 trillion. Meanwhile, during 2016 until the first quarter of 2021, the investment realization in Lebak was Rp7.5 trillion.
Minister Bahlil Lahadalia said the industrial area in Lebak will be developed with a master plan prepared by the Investment Ministry. In addition, his side will support in bringing more investors to Lebak. He added that one of the promising sectors in Lebak is fishery, especially fish cultivation. Therefore, he will cooperate with IPB University to support developing the fish cultivation business.
Meanwhile, Head of Banten Chamber of Commerce and Industry (KADIN), Mulyadi Jayabaya who accompanied Minister Bahlil Lahadalia's visit to Lebak said that he will guarantee cooperation with farmers in pangasius (large catfish) cultivation development. The Banten KADIN aims in two to three months, Lebak can be a pangasius cultivation business center and produce 700 ton of pangasius per month.