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August
Indonesia and Taiwan Cooperate to Accelerate Economic Recovery
Written by MaryatiIndonesia and Taiwan have agreed to increase their economic cooperation in facing the pressure caused by the Covid-19 pandemic. Both countries have great potential and bright prospects in the future so that cooperation between the two countries must be increased, especially in economic recovery. This was stated by Deputy Representative of the Taipei Economic and Trade Office (TETO) in Indonesia, Peter Lan in a web seminar with the theme "Prospects for Taiwan and Indonesia Economic and Trade Cooperation in the Covid-19 Era and in the Future". The webinar was organized by the Taipei Economic and Trade Office and the Indonesian Chamber of Commerce and Industry (Kadin), Thursday (27/8). According to Peter Lan, the Covid-19 pandemic is a global problem that cannot be solved by one country. Thereby, the international community must cooperate to restore the world economy.
Peter further emphasized that Taiwan's commitment under the New Southbound Policy is to cooperate with Indonesia in fighting the pandemic. In addition, industrial cooperation between the two countries is also opened to restore the economy and help people restore their livelihoods as early as possible. According to Peter Lan, promoting international economic, trade and industrial cooperation is an important part of Taiwan President, Tsai Ing Wen's New Southward Policy.
Meanwhile, Deputy Head of the Investment Coordinating Board (BKPM), Ikmal Lukman said that around 59 Taiwanese companies are possible to move their factories from abroad to Indonesia amid the Covid-19 pandemic. Of the 119 foreign companies that have the potential to relocate to Indonesia, 59 of them are from Taiwan. Of the total 119 companies, the potential investment value that can be gained by Indonesia reaches US$41.39 billion dollars or around Rp608 trillion. If the hundreds of companies move their business to Indonesia, the workforce that has the potential to be absorbed will reach 162,000 people. According to Ikmal, so far, seven foreign companies have decided to move their factories from China to Indonesia during the Covid-19 pandemic. Of the seven companies, two are from Taiwan: Kenda and Meiloon. Currently, Meiloon has started his business in Indonesia, precisely in Subang Regency, West Java.
July
The Indonesian government is targeting Saudi Arabia to spur food and beverage exports. One of the efforts was through a recently held webinar on "Enhancing Indonesian Food Export to Saudi Arabia". Indonesian Consul General in Jeddah, Eko Hartono in the webinar said that Saudi Arabia is a potential market for Indonesian products. Business players are expected to actively seek export market opportunities by continuing to communicate with Indonesian representatives in Saudi Arabia. Eko Hartono hopes that this webinar will not only add insight into business actors regarding trade opportunities and regulation in Saudi Arabia, but also become a bridge to explore agreements.
Director General of National Export Development, Kasan who was also present at this webinar said that Saudi Arabia is one of the entrances for Indonesian products to explore the market in the bay area. With a population of more than 30 million people, and more than 10 million hajj and umrah pilgrims who are almost certain each year, Saudi Arabia is a special market segment that Indonesian entrepreneurs need to pay attention to. According to Kasan, another thing that made Saudi Arabia a potential market for Indonesia is the consumption pattern of its people. Consumption of Saudi Arabian society which is now quite high and increasing makes it one of the promising markets for various food products from Indonesia.
On the same occasion, Indonesian Trade Attaché in Riyadh, Erwansyah said that the current regulation on food imports in Saudi Arabia is experiencing dynamic changes. Every food company, especially those related to chicken, meat and fish needs to be registered and conducts a self assessment. In addition, the company must coordinate with the Food and Drug Supervisory Agency that has cooperated with the Saudi Food and Drug Authority. However, according to Erwansyah, the dynamics of changing the rules are a positive challenge for entrepreneurs in Indonesia. If Indonesian entrepreneurs can penetrate the Saudi Arabian market, it will certainly be easier to penetrate into other neighboring countries in the region. The webinar was attended by 252 participants consisting of business actors and government elements of the two countries.
July
Deputy IV (Four) of the President's Staff Office, Juri Ardiantoro stated that the government continues to encourage collaborative efforts by various parties to drive the economic sector, especially Micro, Small and Medium Enterprises (MSMEs)which are currently affected by Covid-19 pandemic. He also underlined that the key to emerging from the difficulties faced together is being discipline and mutual cooperation among the government, the private sectors and SMEs. He was speaking when opening a virtual webinar on Program Implementation for MSMEs in the Framework of National Economic Recovery in Jakarta on Friday (10/7).
Juri Ardiantoro further stated that the government has the same spirit as the SMEs. Thereby, it provides various facilities, schemes and incentives to restore the economic sector. He also explained that in handling the various impacts of the Covid-19 pandemic, the government has implemented policies that focus on the not only health sector, but also immediate economic recovery. Moreover, people can get food, including schemes such as the Social Safety Net (JPS).
On the same occasion, Director General of Small and Medium Industries of the Ministry of Industry, Gati Wibawaningsih explained that Small and Medium Industries areable to absorb 10.5 million workers, while the large ones can only employ 5.9 million people. According to Gati, amid the Covid-19 pandemic, the Small and Medium Industries must work closely with local governments to identify quickly, efficiently and effectively products that consumers need, as well as how the risks and market opportunities are.
The Ministry of Industry also supports the use of technology for Small and Medium Industries in a bid to overcome marketing constraints, especially amid this pandemic. The government as the Patron of Small and Medium Industries has provided digital training since 2017. In addition, e-learning has been conducted since 2018. After the theoretical training, various technical training videos are made so that the economy can really move again.
The government also encourages the National Movement “Proud of the Indonesian Products”. The Ministry of Industry is cooperating with one of the marketplaces so that local product sales data can be known. Meanwhile, Deputy Human Resources Development of the Ministry of Cooperatives and SMEs, Arif Rahman Hakim said that Micro, Small and Medium Enterprises becomes a mainstay in accelerating national economic recovery. In 2018 for instance, around 117 million workforces were absorbed through the Micro, Small and Medium Enterprises -MSMEs.
July
Indonesia's manufacturing policy is in a right line with the Purchasing Managers' Manufacturing Index Rises
Written by MaryatiLondon-based global information provider, IHS Markit has recently released a report that stated Indonesian manufacturing Purchasing Manager’s Index (PMI) of June 2020 was 39.1. The index increases compared to 28.6 level in the previous month. PMI uses 50 as the threshold.
Indonesian Industry Ministry Agus Gumiwang Kartasamita as reported on Industry Ministry’s official page on Saturday (July4) stated, Indonesian manufacturing PMI increased to 39.1 in June 2020 indicated that the national manufacturing industry is starting to recover. He said the index increase also encourages trust in the manufacturing industry sector towards various strategic measures done by the government in boosting the economy. This showed that the government's policy in the new normal has been right.
Based on data released by IHS Markit, the future output index, benchmark, and business sentiments have spiked into 73 percent in June. According to Agus Gumiwang, this was the highest in the last five months and this achievement became Indonesian government’s capital to keep issuing policies that can keep encouraging activities of manufacturing in the new normal.
Nevertheless, the Industry Minister affirmed the national economic growth anticipation in the third and fourth quarter of 2020, because that period decides national economic performance in 2021.
To maintain manufacturing performance, the Industry Ministry supported the industry to keep operating by issuing Industrial Operational and Mobility Permit (IOMKI) that still follows health protocol.
Until now, Industry Ministry has issued more than 17 thousand Industrial Operational and Mobility Permits. With industry operational, around five million workers can stay in their job.
Besides focusing on industry sector recovery from Covid-19 pandemic through various stimulus, the government had also prepared various incentives for investors who will invest in Indonesia, including super deductible tax around 300 percent for industry that develops research and development facility in Indonesia and 200 percent for industry that develops vocational education in the country.Furthermore, the government will build 27 new industrial areas across Indonesia until 2024.
July
Industry Ministry focuses on preparing integrated industrial estate to attract investors
Written by MaryatiThe Ministry of Industry focuses on preparing a number of Integrated Industrial Estates (KIT) which will be equipped with supporting infrastructure for new business activities. In the National Medium-Term Development Plan 2020-2024, the government proposes the construction of 27 new industrial zones.
Director General of Resilience, Regionalism and International Industrial Access, Ministry of Industry Dody Widodo said in Jakarta on Tuesday (July7) that currently there are around 12,500 hectares of land area ready to be offered to investors. Dody Widodo said, the Ministry of Industry is mapping out industrial estates managed by State-Owned Enterprises to be ready to accommodate relocation from China.
Industrial estates along the north coast of Java are considered to have interesting values to be offered to investors because they are superior in terms of export-import loading and unloading speed. In general, relocation can be directed to all areas in Central Java and East Java.
One of areas that is being accelerated of its development is the Batang Integrated Industrial Estate (KIT) in Central Java province, which has more than 4 thousand hectares land area. This area is intensively offered to investors who plan to relocate factories from China and a number of countries in Southeast Asia. Investment that will enter the Batang Integrated Industrial Zone in the first phase is estimated at 850 million US$ and has the potential to absorb 30 thousand workers. The development is prioritized to compete with industrial estates in countries around Southeast Asia such as Vietnam and Malaysia.
In addition to the Batang Integrated Industrial Estate, five other industrial estates developments have been proposed to be included in the list of National Strategic Projects for the 2020-2024 period. The five projects are the Brebes Industrial Estate in Central Java, the Takalar Industrial Estate in South Sulawesi, the Tanjung Enim Industrial Estate in South Sumatra, and the two potential industrial areas in North Maluku, namely Weda Bay and Obi Island.
Chairman of the Indonesian Industrial Estate Association (HKI) Sanny Iskandar acknowledged that industrial center in Java more attracted by investors than other regions because the infrastructures are better prepared. Of the total 96 industrial estates that are registered by Indonesian Industrial Estate Association, mostly are in Java. He explained, many locations are in West Java, reaching 27 areas. But nationally, there are 70 area managers within Industrial Estate Association who are ready to accommodate industrial relocation.
July
The Ministry of Industry along with the Coordinating Ministry for Maritime Affairs and Investment launched "#SemuanyaAdadiSini" or #Everythingishere” campaign through a virtual launch on Wednesday (1/7). The campaign is part of the “Proud of Made in Indonesia” National Movement, which is a mutual cooperation movement carried out by the government, the community, and businesses by shopping for products made in Indonesia, especially of Small and Medium Industries -SMI.
Minister of Industry, Agus Gumiwang Kartasasmita said that the "#SemuanyaAdadiSini" or #Everythingishere” runs from 1 to 15 July 2020. The target is 2 million Micro, Small and Medium Enterprises selling online.
In addition, the purpose of this campaign is to convey the message that Indonesian industry is able to meet the needs of the community with quality products, as well as a call for the public to buy Indonesian industrial products, especially small and medium industrial products.
Through this campaign, the government also wants to encourage SMEs to expand marketing access through online media. According to Minister Agus Gumiwang, since 2017, the Ministry of Industry has started a program to expand marketing access with digital technology through theSMI e-smart program as a step to implement the Making Indonesia 4.0 road map. The "#SemuanyaAdadiSini" or #Everythingishere” campaign is expected to strengthen the program with a series of coaching. It began on June 5, 2020, with the number of registrants reaching almost 3000 SMIs. Training and onboarding programs are carried out in collaboration with e-commerce like Lazada, Blibli.com, Tokopedia, Shopee and Bukalapak.
Sustainability programs are also strived to maintain the existence of SMIs in the online market by providing capacity building, mentoring, and other facilitation such as standardization, licensing, intellectual property, and packaging in collaboration with universities, Provincial and Regional Industry Offices, technology providers and IKM drivers. This program will run until December 2020.
The #EverythingAdaDisini campaign is also to strengthen the program to boost the use of domestic products and call for the people to defend Indonesian industry by shopping at Indonesian SMEs.
July
East Nusa Tenggara is Given Authority to Jointly Manage Komodo National Park
Written by MaryatiEast Nusa Tenggara Provincial Government had received concurrent policy from the central government to jointly manage the super-priority tourism destination area of Komodo National Park in West Manggarai. Tourism and Creative Economy Agency Head of East Nusa Tenggara Wayan Darmawa in his statement received by Antara on Sunday (June28) explained the concurrent policy means that Komodo National Park management is shared among central, provincial, and regency governments. Wayan Darmawa said this is a positive move and support from central government in East Nusa Tenggara tourism management.
Wayan Darmawa said, concurrent policy is a special move because it is not received by any other provinces of Indonesia, where regional government is involved in managing a national park. He appreciated this policy and hoped that with management involvement, benefits for the region will increase.
Previously, East Nusa Tenggara Provincial government urged Environment and Forestry Ministry to immediately handover management of Komodo National Park to provincial government. East Nusa Tenggara Public Relation Bureau Head Marius A Jelamu explained full Komodo National Park management handover to provincial government will enable them to increase monitoring and to prevent incidents that can harm national parks which previously had ever been occurred.
Jelamu said incidents such as the fire on Gili Lawa hill, komodo food theft, video clip shooting in national park area, and komodo theft, show that until now the monitoring at Komodo National Park is not conducted maximally.
June
Indonesia and Malaysia Jointly Develop Tourism Travel Corridor
Written by MaryatiIndonesia and Malaysia agreed to cooperate in rebuilding tourism and the creative economy which were impacted by Covid-19 pandemic. One of them is by building a joint tourism corridor. Marketing Deputy at Tourism and Creative Economy Ministry, Nia Niscaya in a written statement received by Antara News Agency on Saturday (20/6) said that Malaysia is an important partner for Indonesian tourism. Malaysia has been one of the biggest sources of foreign tourists to Indonesia.
In 2019, 2.09 million tourists from Malaysia visited Indonesia. That was stated by Nia Niscaya when being a guest speaker in Network Industry Travel Talkshow with Malaysian Tourism Arts and Culture Minister Dato’ Sri Nancy Shukri with the topic “Regional Tourism Collaborative Opportunities Post-Covid19” on Friday evening (19/6).
According to Nia Niscaya, Covid-19 had brought about fundamental changes for tourists who will travel. For international travel, tourists will prefer having shorter trips. Therefore, Malaysia becomes one of potential partners to re-grow international travel.
She also explained, the cooperation is how to get the world's trust that the two countries have successfully controlled corona-virus spread and agreed to create a travel corridor.
Indonesian Tourism and Creative Economy Ministry had prepared a handbook that refers to global standards as a manual for businesspeople in tourism and creative economy. This handbook is a more detailed derivative from protocol under development by the Health Ministry based on recommendations from the Tourism and Creative Economy Ministry for tourism and creative economy.
Nia Niscaya further states that good implementation of the protocol is expected to enhance tourists’ trust. This is important because trust is a key in recovery acceleration.
Similarly, Malaysian Minister for Tourism Arts and Culture, Dato’ Sri Nancy Shukri said that Malaysia really enjoys cooperation with Indonesia. According to her, Indonesia and Malaysia must be able to increase cooperation to develop tourism. Tourism must be able to adapt well to re-grow tourists’ trust to travel and stay longer to many destinations.
June
9 sectors of the economy open with healthcare protocols prioritizing
Written by MaryatiThe Indonesian government prepares the opening of nine economic sectors in the new normal era. The nine sectors are mining, petroleum, industrial, construction, plantation, agriculture, livestock, fisheries, logistics and transportation of goods.
Expert staff at the Coordinating Ministry of Economic Affairs, Raden Edi Prio Pambudi in a discussion themed "Precondition of opening 9 economic sector" in Jakarta, Thursday (18/6) said, the handling policy of Covid-19 and economic recovery is like two sides of the coin, this means it must be effective and go together. Pandemic Covid-19 has made business stops as well as impacting socio-economic, and now the government must also return the economy wheels back. He said, the economic business sector has been determined, with emphasis on health factors. He also calculates risks by collecting data and seeing social and health aspects. In health there are provisions that should be enforced such as maintaining hygiene, wearing masks to prevent transmission.
While from the socio-economic side, he continues to figure out how to contribute significantly to the economy. For example, which absorbs labor, or has a broad association with other sectors. Furthermore, the opening of these sectors depends on the opening of the region not impacted or has a low risk of the Covid 19 cases (green Zone) so as not to cause new problems due to transmission. He also said the process of re-opening the economic sector is a preferred middle road decision. One side of this will keep the spread of this virus not increasing, but on the other hand also quickly restore the national economic conditions.
Meanwhile, in the same discussion an economist who is also rector of Atma Jaya University, Augustine Prasetyantoko said, Indonesia is currently entering a new phase. This phase requires not only technical matters but thorough awareness and discipline. So this becomes the task of all parties, not only the government but all elements of society. On the other hand, he also recalls behavioral change in this normal new period to create a potential economic opportunity. For example, the health sector needs personal protective equipment (PPE) or create medicines and vaccines with natural resources in Indonesia. It can also encourage other domestic products to the global market.
June
Gov. Prepares Additional Stimulus for Industries affected by Covid-19 Pandemic
Written by MaryatiThe Indonesian government is preparing additional incentives or stimuli for the industrial sector affected by Covid-19 pandemic to revive the enthusiasm of businesses and to drive the wheels of the national economy by applying the set health protocols. Minister of Industry, Agus Gumiwang Kartasasmita in his statement in Jakarta, Thursday (June 11) said that the additional incentives included relief payments or electricity subsidies for industries affected by the Covid-19 pandemic. In these regards, he has sent a proposal to the State Electricity Company -PLN.
The proposal is related to eliminating the minimum cost for using 40 hours of electricity consumption, including for premium industrial customers who use 233 hours of electricity consumption. This policy is proposed for the subscription period from 1 April to 31 December 2020. It is expected that the industry can pay according to the amount of electricity usage. The amount of stimulus needed is Rp1.85 trillion over nine months. Another incentive is to postpone payment of 50 percent of PLN's bills for six months, from April to September 2020 with guaranteed installments in the form of demand deposits backwards for 12 months. It is also proposed that the late payment penalty be eliminated.
Furthermore, Minister Agus said, the government was reviewing incentives in the form of eliminating value-added tax (VAT) for local raw materials for export, postponing VAT payments for 90 days without fines, as well as temporary release of income tax installments (PPh). The granting of additional tax breaks for the industrial sector will complement other incentives previously released by the government. He has also proposed credit restructuring and working capital stimulus. This incentive will be provided with a number of criteria, such as a track record of taxes and credit installments, having good business prospects, employment, heavy impact of Covid-19, and maximizing the use of domestic raw materials. With these efforts, it is hoped that the industry will continue to grow and the national economy will continue to be maintained on a positive trend. In addition, the government seeks to encourage domestic market consumption by increasing utilization through the implementation of the Domestic Component Level both in the ministries and institutions, including the State-Owned Enterprises.