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13
October

Indonesia Increases Trade Cooperation with the United States                                                                                                                                                                                      kemlu.go.id

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 kemlu.go.id 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.

12
October

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 iddc.kemendag.go.id 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.

10
October

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.

09
October

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.

 

08
October

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.

07
October

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.

06
October

photo : yorkshire cnd

Minister of Foreign Affairs of the Republic of Indonesia, Retno Marsudi said that since the establishment of the UN 75 years ago, and since the signing of the Nuclear Non-Proliferation Treaty (NPT) 50 years ago, the world is still far from a complete elimination of nuclear weapons. In the High Level Meeting of Commemoration and Promotion of the International Day for the Total Elimination of Nuclear Weapons which was held virtually on October 2, 2020, Minister Retno Marsudi explained that the absence of progress in efforts to eliminate nuclear arsenal had resulted in a decline in trust among countries in the world.

As quoted on the kemlu.go.id page (03/10), Minister Retno Marsudi also underlined three important points to achieve the total elimination of nuclear weapons: First, there must be the implementation and enforcement of the Nuclear Non-Proliferation Treaty. In this regard, she said that full participation and commitment from all countries, including countries with nuclear weapons, is essentially needed. The second point is to strengthen the mechanism and architecture of global disarmament. Several disarmament mechanisms such as the Conference of Disarmament, the prohibition of comprehensive nuclear testing and other mechanisms must be pursued in order to achieve the goal of total elimination of nuclear weapons. Meanwhile, the third is to ensure that nuclear disarmament provides tangible benefits to global prosperity.

In addition, Minister Retno emphasized that the Covid-19 pandemic is a reminder of the world's nations that human and humanitarian protection can only be achieved through global solidarity and not through nuclear weapons.Minister Retno in her closing speech said that on the one hand, maintaining the existence of nuclear weapons does not provide benefits to the world (zero-sum). On the other hand, the complete elimination of nuclear weapons will precisely ensure the survival of mankind. The High Level Meeting for Commemoration and Promotion of the International Day for the Total Elimination of Nuclear Weapons is part of the 75th UN General Assembly (SMU) High Level Meeting which is taking place from 21 September 2020 up to now.

23
September

Indonesian Trade Minister, Agus Suparmanto explained the marketing strategy so that businesspeople can survive and penetrate the export market amid Covid-19 pandemic in the 8th Annual Jakarta Marketing Week 2020 virtually on Sunday (Sept/20).

In the short-term, the Trade Ministry focuses on export development for products which experienced positive growth during the pandemic namely processed food and beverages, medical equipment, agricultural products, fishery, and agroindustry. Besides that, they also focus on new product development that emerged during pandemic such as pharmaceutical and new export products resulting from industry relocation from some countries to Indonesia.

Meanwhile, for market approach, Indonesian Trade Ministry will implement export market development strategy which is adjusted to each export destination country's condition during Covid-19 handling. Minister Agus Suparmanto said, for now and until one year ahead, Indonesia will focus on countries that had or beginning to recover such as Australia, New Zealand, England, Germany, Italy, United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Algeria, Canada, and Mexico.

For medium-term, the Trade Ministry is studying products with market power in accreditation countries of the trade representatives and classifying them in three categories. Firstly is excellent products, namely products with market power in export destination countries. Secondly is emerging products, those with increasing export trends in the last five years. Then, thirdly is losing products, namely products with decreasing export trends in the last five years.

The Trade Minister also explained that Indonesia will join one of the biggest exhibitions in the world namely Dubai Expo 2020 in the United Arab Emirates with the theme "Connecting Minds, Creating the Future." Indonesia's participation was also an attempt to increase Indonesia's image in the world. This event was initially scheduled on October 20, 2020 to April 10, 2021. However, because of the pandemic, it changed into October 1 2021 - March 31 2021. He said that the Indonesian Pavilion will present the concept of Golden Indonesia 2045.

In his explanation, the Trade Minister also invited the businesspeople to join the Trade Expo Indonesia - Virtual Exhibition 2020 (TEI-VE) 2020. This event will be held on November 10-16, 2020. TEI-VE is an effort of the Trade Ministry to boost Indonesian export and to answer the Covid-19 challenges. TEI-VE 2020 also aimed to restore Indonesian economy through export promotion amid Covid-19 pandemic. It was expected that 200-300 participants, including from the export-oriented small medium enterprises will join the TEI-VE 2020.

In the same opportunity, Trade Minister Agus Suparmanto also explained about Indonesian export performance. In January-August 2020, Indonesian export was 103.15 billion US$.

The export performance was surplus 11.05 billion US$, or better than the same period last year which was deficit 2.06 billion US$. The export destinations were still dominated by China, the United States, European Union, Japan, India, Singapore, and Malaysia.

19
September

photo : JP

Coordinating Minister for the Economy Airlangga Hartarto said 143 foreign companies plan to relocate investment to Indonesia, including those from the United States, Taiwan, South Korea, Hong Kong, Japan and China. At the HSBC Economic Forum in Jakarta, Wednesday (16/9) Airlangga said that the investment relocation plan to Indonesia has the potential to absorb more than 300 thousand workers. He added that the relocation plan indicated that the COVID-19 pandemic had provided valuable lessons that supply chains of goods could not be centralized in one country.

Now many multinational companies are starting to relocate their industries from China to other Asian countries, especially ASEAN countries. Airlangga said this is an opportunity for Indonesia to replace China's position as an investment destination and a new global supply chain hub.

However, Airlangga is aware that the risk of uncertainty this year is still very high, so that the Indonesian economy is facing both external and internal pressures. He explained that the pressure from the external side was a global uncertainty that had its roots in the COVID-19 pandemic, which caused the global economy to be predicted to remain bad. Meanwhile, from the internal side, the pressure that occurred was in line with the global economic slowdown, namely that growth for Indonesia in the second quarter contracted or minus 5.32 percent.

Therefore, Airlangga confirmed that currently the Indonesian government is preparing various policies in order to overcome these external and internal pressures. He explained that the steps and policies that are being pursued by the government include immediately completing the discussion of the Job Creation Bill with the House of Representatives so that investment can increase.

In addition, the government has prepared the Investment Priority Listusing a "picking the winners" approach. This will cover the business fields that will be encouraged and provided with facilities, both taxation and non-taxation. Airlangga Hartarto hopes that this investment priority list will attract investment that is not only large, but also high quality and able to create jobs.

Meanwhile, the government is strengthening industrial development and transportation and logistics connectivity, by developing corridors along the northern part of Java Island. In addition, it has also formulated an initiative to build a Super Hub as a center for production, trade, technology and finance. Airlangga is optimistic that the Indonesian economy through concrete and appropriate policies will be able to overcome the challenges that are being faced in 2020.

17
September

PHOTO : NK-VOI

 

 

 

Deputy Minister of Environment and Forestry-LHK Alue Dohong encouraged that community’s roles will be more optimized in forest management, particularly in rehabilitation of watersheds (DAS). Alue Dohong said this when delivering a keynote speech at the Watershed Rehabilitation Webinar on Monday (Sept14). According to him, society should not only be used as an object, but must become a crowdsourcing with other forces, both from the central and local government sectors, academicians, researchers, environmental activists, and the business world who are then encouraged by the media to form a great force. In this activity, Alue Dohong had an opportunity to talk through video conference facilities with the community who were carrying out tree planting activities in watershed rehabilitation. He also expressed appreciation and admiration for the concern and enthusiasm of the community in welcoming the forest restoration program through watershed rehabilitation activities

Alue Dohong reminded parties who have an obligation to carry out land rehabilitation, to give greater role and trust to the community in implementing watershed rehabilitation, starting from preparing seeds, preparing land, planting, maintaining, as well as protecting plants from pests and Fire. Furthermore, Alue revealed, it is time for every business actor, especially the holders of Borrow and Use Forest Area Permits (IPPKH) to have a broader insight and perspective on efforts to improve the environment.

According to him, entrepreneurs should not just look at the location of their business, but also have to participate in improving the watershed area around their company. Currently, it is necessary to shift the value. If previously entrepreneurs only pursue the profit, it is time they have a moral responsibility towards improving the environment and improving the welfare of the community around the company's operations.

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