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April
Indonesian Trade Ministry keeps encouraging the export of Indonesian small and medium businesses products into the global market. One of which was by using international trade agreement. That was stated by Deputy Minister of Trade Ministry, Jerry Sambuaga virtually during the 500k Eksportir Baru conference on Monday (19/4).
He said that President Joko Widodo instructed the Ministry of Trade to prioritize the finalization of international trade negotiations with potential countries. This is because Indonesia is transforming into a high-value products producer country which requires new markets outside of traditional countries or main trade partners.
Deputy Minister, Jerry Sambuaga added that Indonesia is finishing 23 international trade agreements. The small and medium business owners can use optimally various eases and facilities from the agreement in exporting their products. In addition, the small and medium businesses can also use the Free Trade Agreement (FTA) Centre in promoting their products abroad. Currently, the Ministry of Trade has five FTA Centres in some cities namely Jakarta, Medan, Bandung, Surabaya, and Makassar.
Also, the ministry has 46 trade representatives abroad such as Trade Attaché, Indonesian Trade Promotion Centre, Trade Consul, Trade and Economy Office, as well as ambassadors in the World Trade Organization -WTO. The business owners can then contact the trade representatives to promote the products. Those trade representatives are assigned to explore trade agreements with buyers abroad.
On the same occasion, Director General of National Export Development, Kasan said that currently the exported Indonesian small medium business products are furniture, fishery, knitwork, and fruits. He also said that by optimally using various policies including the international trade agreement, it is expected that their export market reach can expand and Indonesian exported products can have more variations.
April
The Transportation Minister Making Electric Vehicles a Public Need
Written by Maryati
Minister of Transportation, Budi Karya Sumadi is trying to make electric vehicles in Indonesia as a public need. That was stated by the minister when visiting an electric vehicle exhibition on Sunday (18/4).
In a press release, Minister Budi Karya Sumadi said that President Joko Widodo has issued presidential regulation No. 55/2019 on Battery-based Electric Vehicles for Land Transportation Program Acceleration. The Ministry of Transportation follows-up the regulation by making some regulations on electric vehicles through transportation ministerial regulations. The ministry regulates the electric vehicle physical type testing, certain vehicles with electric motor drive, and conversion of oil-based vehicles into battery-based.
The Transportation Ministry will also make a roadmap so that in 2030, the electric vehicles can be more significantly used by the people.
Minister Budi Karya Sumadi further said that some other efforts have been done, namely encouraging the use of electric vehicles through the service in some cities such as Bali, Surabaya, Bandung, and Medan. A program ‘Buy the service’ is a service purchasing system by the government which gives full subsidy for the operator with certain minimum service standards. As an early stage, the eco-friendly transportation will be used for Transjakarta and Damri for city transport.
Besides buses, the Transportation Ministry will also encourage the use of electric vehicles to taxi and motorcycle. It has also coordinated with the Minister of State-owned Enterprises, Erick Thohir and President Director of PT PLN, Zulkifli Zaini to build more charging stations.
Minister Budi Karya and first echelons in the Transportation Ministry have also used electric vehicles for their operation. He then encouraged other ministries and institutions to use electric vehicles. It is expected that electric vehicles will be an eco-friendly choice for the people and then improve the air quality in Indonesia.
April
President Joko Widodo encourages cooperation in various sectors with Germany
Written by Maryati
Indonesian President Joko Widodo held a virtual bilateral meeting with German Chancellor Angela Merkel from Bogor Palace, West Java on Tuesday (13/4). The meeting was held one day after both heads of state opened the Hannover Messe 2021.
In the bilateral meeting, both leaders discussed cooperation in health, human resources, investment, and climate change. In the health, President Joko Widodo and Chancellor Merkel exchanged views on Covid-19 handling in each country. They expressed worry about vaccine nationalism by some countries. That will badly disturb vaccine availability globally and equal vaccine access for all people.
In the investment, Chancellor Merkel saw a great potential in Indonesia to be an important partner for Germany in the future. Answering that, President Joko Widodo offered collaboration in developing industrial areas that will be filled by German companies. The German Industrial Quarter will be in Batang Integrated Industrial Area, Central Java.
President Joko Widodo further stated that Germany is one of Indonesia's most important partners in Europe. Both countries have had comprehensive partnership since 2012. Germany is Indonesia's biggest trade partner, 4th biggest investment partner, and 3rd biggest tourist source from Europe. The president also ensured that the investment climate in Indonesia has been better with the Job Creation Law.
About the climate change, both leaders shared a similar commitment for emission reduction. President Joko Widodo pointed out that Indonesia is strongly committed to carrying out green development. One of the ways is mangrove restoration and sustainable energy development.
Moreover, President Joko Widodo calls for Germany to join in hands to develop human resources through vocational schools and to increase German industrial investment in Southeast Asia.
April
President Joko Widodo opened the Indonesia International Motor Show (IIMS) Hybrid Automotive Exhibition 2021 at the State Palace in Jakarta last Thursday (15/4). In his remarks, the President said that the national automotive industry has risen. This can be seen from the increase in purchase orders for motor vehicle products, which reached 190 percent. He remarked that the increase in vehicle orders could not be separated from the various stimuli provided by the government, especially the relaxation policy on Sales Tax on Luxury Goods.
President Joko Widodo also mentioned the current purchasing manager index (PMI) figure, which has reached 53. In fact, before the pandemic, the Indonesian PMI figure reached 51 in normal times. He warned that this momentum must really be maintained. The President said this revival must not be disturbed again due to the Covid-19 pandemic.
Furthermore, he hopes that the production capacity of the domestic automotive industry can be increased by using higher local content. In addition, industrial players are targeting export markets. President Jokowi requested that the involvement of Micro, Small and Medium Enterprises be increased in the supply chain for the automotive industry, thereby bringing greater added value to the national economy.
President Joko Widodo also reminded the reform towards green technology and a green economy which will become the foundation, potential and strength in Indonesia. The use of renewable energy, such as B30 and B100, must also be continued. The development of electric cars must also be accelerated and it is hoped that it will become one of Indonesia's leading industries.
Meanwhile, Minister of Industry, Agus Gumiwang Kartasasmita is optimistic that the automotive industry can spur national economic recovery from the impact of the Covid-19 pandemic. This is because the automotive industry involves a lot of domestic business actors from upstream to downstream sectors.
Minister Agus Gumiwang added that in the Making Indonesia 4.0 program launched by President Joko Widodo in 2018, the national motor vehicle industry was targeted to become a global player. He reminded that despite being hit by the Covid-19 pandemic, the automotive industry was able to contribute 4.24 percent of non-oil and gas gross domestic product throughout 2020. Meanwhile, exports of automotive products for four-wheeled motorized vehicles or more, including their components, reached Rp65.99 trillion.
April
PT Bio Farma joined the Hannover Messe 2021, which is held virtually on April 12 until 16 2021. Company Secretary of PT Bio Farma, Bambang Heriyanto said on Tuesday (13/4) that by joining this exhibition, PT Bio Farma hopes to expand its market by targeting Eastern Europe and Asia, mainly Central Asia, Africa, and Latin America.
In the event initiated by the Industry Ministry and State-owned Enterprise Ministry, PT Bio Farma introduced its products such as vaccine, antiserum, and diagnostics kit. It also introduced its 4.0-based technology namely Bio Tracking, Bio Detect, and integrated packaging line. PT Bio Farma also explained its main role in international organizations such as the Organization of Islamic Cooperation.
Bambang Heriyanto further stated that PT Bio Farma also introduced its mBioCov-19, as an answer to the trend, which is predicted to shift into diagnostics-based products.
According to Bambang Heriyanto, this is a digital solution developed by PT Bio Farma, a part of the company's transformation strategy that began three years ago into a digital-based global healthcare company.
About the vaccines, PT Bio Farma applied 2D data matrix in its primary, secondary, and tertiary packaging to ensure product identification and authenticity since the production process is through an integrated packaging line.
Vaccine is a biopharmaceutical product that is sensitive to change in temperature. Therefore, PT Bio Farma uses internet of things technology by installing temperature sensors and GPS on its vaccine refrigerated transport vehicles so that the vaccine storage temperature and transport's location during the trip can be monitored any time at the command center at state-owned pharma holding.
Bambang ended his explanation by saying that PT Bio Farma hopes to expand to Europe, especially Eastern Europe by emphasizing previously made bilateral cooperation with UN bodies such as UNICEF.
March
Indonesia joining 10 countries leading in Covid-19 vaccination
Written by Maryati
Indonesian state-owned pharmaceutical company PT Bio Farma President Director Honesty Basyir said Indonesia is joining 10 countries leading in Covid-19 vaccination. Honesti Basyir said that in the Working Meeting with the House's Commission VI in Jakarta on Monday.
Honesti Basyir said, until March 27 2021, some 10.4 million doses had been injected to the people. Based on the explanation, Indonesia ranked 9th under the US, China, India, Brazil, Turkey, Germany, and Russia. Behind Indonesia, there are France, Israel, Italy, and the United Arab Emirates. Honesti Basyir said Indonesia's position is even better than some European countries.
He added that Indonesia must maintain this position and keep increasing the vaccination speed because all is racing against the mutation development from the virus. Honesti said that Covid-19 vaccination speed achievement in Indonesia is supported by vaccine supply availability.
Besides making commitment for a long time with some vaccine developers, Indonesia also becomes a country that performs Covid-19 vaccine clinical tests. Honesti Basyir said the speed will decide whether Indonesia can achieve herd immunity less than 15 months or even faster.
According to Honesti Basyir, Indonesia's achievement on vaccination so far was coming from the government’s commitment in procuring Covid-19 vaccine supply. Honesti said, many contributed to this including the Health Ministry, Food and Drugs Monitoring Agency (BPOM), Foreign Ministry, and State-Owned Enterprises Ministry.
Honesti further explained that in 2021, Indonesia had secured most of the vaccination needs as many as 426 million doses. Indonesian government through Bio Farma had made a contract for procuring 329.5 million doses of finished and half-finished vaccine with some vaccine developers. Honesti is optimistic that the vaccine need can be fulfilled. Most of it will be done in 2021. It is expected to finish in the first quarter 2022.
March
President Joko Widodo Requires Government Projects to Use Local Products
Written by Maryati
President Joko Widodo has prohibited regents across Indonesia from buying foreign products in order to meet the needs of government projects. It is mandatory for the government project procurement to use local products. This was affirmed when he opened the Fifth National Conference of the Association of Indonesian Regency Governments at the State Palace in Jakarta last Friday (26/3). He emphasized that every existing project must use local products instead of foreign ones. He also explained that this is meant so that the government projects increase demand for the local products. Moreover, the government projects are usually of great value and require the procurement of large quantities of products.
According to President Joko Widodo, if the demand for the local products increases, consumption will also surge and the industries will inevitably boost the speed of their production at the factory. This will increase industrial productivity. Likewise, the labour will be used up and even more able to be absorbed, so there will be no layoffs.
Previously, President Joko Widodo had also made calls of rejecting foreign products. The goal is that import floods do not occur in Indonesia. On the occasion, he also asked regents throughout Indonesia to provide good services for exports and investment because these two things are the key to economic growth in Indonesia. He reminded that the Investment Coordinating Board provides a license to be integrated electronically or online single submission, which is very fast. The Head of State asked that once the investment reaches the region, the process must also be done quickly. Given their importance, President Joko Widodo asked that exports and investment be paid close attention. He added that currently, the Job Creation Law and the supporting regulations have been promulgated. This makes it very easy for entrepreneurs to open up investment and jobs.
March
Indonesian and Singaporean governments continued bilateral economic cooperation strengthening through the three “bridges" cooperation. It includes digital bridge, infrastructure bridge, and travel bubble bridge. The travel bubble is opening the boundary zone to allow citizens to cross borders as long as not going beyond certain limits.
Aside from tightening bilateral relations, the cooperation also strengthened the two countries' existence in ASEAN and beyond. That was stated by Economic Coordinating Minister Airlangga Hartarto in an official statement on Friday.
Minister Hartarto said the Indonesia-Singapore digital bridge was expected to realize with Batam as the center for Indonesian data center and digital industry development.
Previously on March 2, 2021, the Indonesian government had inaugurated the Special Economic Zone Nongsa Digital Park in Batam. The Nongsa Digital Park is expected to be an entry point for international IT companies from Singapore and many other countries as well as to save Indonesian foreign exchange in digital business for around 20 to 30 trillion annually with the biggest contribution from data center and international education.
Then, the infrastructure bridge will begin with the development of Batam-Bintan bridge across 6.4 km in 2022. Later, Batam-Bintan bridge will be divided into three plans namely Batam Island, Tanjungsauh Island, and Bintan Island.
Airlangga said the bridge will ease the business people in Bintan to send their agricultural products to Batam, which will be exported to Singapore or other countries. Also, the Batam-Bintan bridge is expected to increase connectivity from Bintan and Batam to Singapore and vice versa.
Meanwhile, the travel bubble bridge aims to boost the tourism sector with Bintan as a tourism destination for Singaporean visitors. About this, Indonesia and Singapore agreed to form a team discussing the travel bubble between Singapore and Indonesia. The travel bubble will begin with a travel arrangement agreement between Singapore and Batam-Bintan-Karimun areas for business people and tourists. Airlangga Hartarto added, with the travel arrangement, the business people and tourists will be allowed to travel freely around Batam-Bintan-Karimun-Singapore and vice versa by complying with the tight health protocol.
The cooperation was discussed in a virtual meeting of Minister Airlangga Hartarto, Singaporean Deputy Prime Minister Heng Swee Keat, Singaporean Ambassador for Indonesia Anil Kumar Nayar, and Indonesian Ambassador for Singapore Suryopratomo on Friday.
March
Today's My Indonesia is about Indonesia welcomes Switzerland's referendum on IE-CEPA
Written by MaryatiIndonesia welcomes the result of Switzerland's referendum on Indonesia-European Free Trade Association Comprehensive Economic Partnership (IE-CEPA). Some 51.6 percent of Swiss supported the implementation of IE-CEPA and agreed to ratify the trade agreement in a referendum on Sunday (7/3).
IE-CEPA is a comprehensive economic partnership between Indonesia and European Free Trade Association (EFTA) member countries, such as Switzerland, Norway, Iceland, and Liechtenstein. The agreement was signed in 2018 after going through 15 negotiations.
After the signing, each country needs to ratify the agreement. Two countries had finished the ratification namely Norway and Iceland.
Previously, the ratification in Switzerland faced rejection in form of a petition from a Swiss NGOs because Indonesian palm oil commodity was accused of harming the environment. According to the Swiss law, the agreement ratification needed public agreement through a referendum.
IE-CEPA includes trade of goods, services, investment as well as capacity building so that Indonesian products can gain market access in form of tariff exemption and reduction concession. Therefore, Indonesian products will be more competitive in EFTA markets.
Indonesia will receive the exemption of 7,042 tariff posts in Switzerland and Liechtenstein, 6,388 in Norway, and 8,100 in Iceland. Indonesia's total export to EFTA in 2020 was 3.4 billion USD with US$1.6 billion surplus for the country.
Responding to the Swiss referendum, Indonesian Trade Minister, Muhammad Lutfi in a statement on Monday (8/3) stated that his sdie is ready to cooperate in trade and investment under IE-CEPA. The agreement recognizes the spirit of cooperation, mutual respect, and mutual benefits for Indonesia's top products, the palm oil and its derivatives.
Minister Lutfi also emphasized that the referendum has a special meaning for the strive of Indonesia and Switzerland in ensuring an open and just trade that become the pillar in the trade agreement. He also remarked that Switzerland is an important trade and economic partner for Indonesia and vice-versa. Thereby, both countries' trade will increase. The minister also explained that with the IE-CEPA ratification by Switzerland, Indonesia will quicken the ratification at the parliament so that it can be implemented soon.
Meanwhile, Coordinating Minister for Economy, Airlangga Hartarto said, the negative campaign against palm oil commodities lacked support from Swiss' public during the IE-CEPA ratification. He also remarked that therefore the Swiss referendum showed international recognition for Indonesia's consistency and commitment in implementing sustainable development principles.
March
The Indonesian government is trying to increase the interest of European entrepreneurs to invest in the country, along with the economic recovery from the COVID-19 pandemic and the enactment of the Job Creation Act. Coordinating Minister for Economic Affairs Airlangga Hartarto said it in a virtual seminar themed, "Investing in Indonesia: Opportunities in Asia's Economic Powerhouse", held by the Ministry of Foreign Affairs, last Thursday, February 25.
During the seminar Airlangga Hartarto said Indonesia's economy was gradually recovering due to ongoing efforts to mitigate the impact of COVID-19, including the procurement and distribution of vaccines. According to him, Indonesia has secured vaccines for 182 million people out of a total population of 270 million.
Hartato added that Indonesia is also carrying out structural reforms, especially by implementing the Job Creation Law to boost competitiveness and create a more friendly business climate. The law, which came into effect in November 2020, includes cross-sectoral policies including environmental conservation, investment ecosystem, business licensing and ease of doing business, labor standards, taxation, and support for Micro, Small and Medium Enterprises.
Airlangga Hartarto claims that the enactment of the law and its derivative regulations can support Indonesia's economic growth as well as pay attention to environmental sustainability and workers' rights. He emphasized that as the largest economy in Southeast Asia, Indonesia has a target of doubling the percentage of investment from Europe which currently only covers 10 percent of total investment to ASEAN countries, based on data from the Indonesian Ministry of Foreign Affairs.
On the same occasion, the Director General of America and Europe at the Ministry of Foreign Affairs, Ngurah Swajaya, said the strategy that will be carried out is to directly target potential sectors, to intensify marketing and assistance. The government is aware of this. Therefore, the Ministry of Foreign Affairs together with the Investment Coordinating Board took the initiative to collaborate with all stakeholders to systematically target potential sectors to be promoted throughout 2021 in Europe.
Six priority sectors that will be targeted and have the potential to increase investment in Indonesia are chemicals, e-commerce, electronics, pharmaceuticals, infrastructure, food and beverages, and garments. The Investing in Indonesia Seminar was attended by more than 400 investors and potential investors from Europe.