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January
Indonesia Determined to Restore a Sustainable Economy Through G20 Leadership
Written by Maryati
The Indonesia government will use its appointment as the G20 Presidency and Chair of the Forum High Level Task Force on Economic Integration and leadership at the ASEAN Forum in 2023/ as a form of sustainable economic recovery. For this important and strategic role a meeting was held between the G20 Co-Sherpa Edi Prio Pambudi High Level Task Force on Economic Integration Lead Indonesia Rizal Affandi Lukman and Deputy Secretary-General for ASEAN Economic Community (AEC) Satvinder Singh. They formulated various joint steps in the context of synergy and collaboration between the G20 and ASEAN.
The trust given by ASEAN member countries to assume the leadership role of High-Level Task Force on Economic Integration this year must be utilized by Indonesia to the fullest. For this reason, Indonesia needs to prepare carefully and play this important role. This was stated by the Special Staff of the Coordinating Minister for the Economy Rizal Affandi Lukman as HLTF-EI Lead Indonesia in his statement last Saturday.
Meanwhile, regarding the recovery of the COVID-19 pandemic as a top priority for the G20 and ASEAN, Co-Sherpa G20, Edi Prio Pambudi stated economic recovery must be felt equally by all countries in the region in line with the theme of this year's G20 Presidency "Recover Together Recover Stronger”.
According to Pambudi, synergies and collaborations from various international forums such as the G20 and ASEAN are becoming increasingly important, especially in accelerating vaccination programs, realizing smooth travel and mitigating future pandemics. He added as the most dynamic region in the world, ASEAN must be able to Respond well to various changes and emerging issues. For this reason, ASEAN continues to support digital transformation efforts in the region, One of them is through the ASEAN Agreement on E-commerce.
Pambudi also said ASEAN must be able to follow up on the concrete implementation plan of the industrial revolution in ASEAN. In this case it must be noted that the transition from conventional energy use to renewable energy by industry. Circular economy and sustainable development are also emerging issues that ASEAN has anticipated with the preparation of the Circular Economy Framework for ASEAN Economy Community. Dissemination of information to industry players and the general public is the key to implementing the adopted framework.
Regarding various initiatives carried out by Indonesia, Deputy Secretary-General for ASEAN Economic Community, Satvinder Singh conveyed his support for Indonesia as the G20 Presidency in 2022 and ASEAN Chair in 2023.
January
The Indonesian government through the Energy and Mineral Resources Ministry is temporarily banning coal export until January 31st, 2022 to guarantee coal supply for power plants. That was stated by Director General for Mineral and Coal at the ministry, Ridwan Jamaludin in a statement in Jakarta on Saturday (1/1).
Ridwan Jamaludin said, if export ban is not imposed, 20 coal power plants with 10,850 megawatt will shut down. He added that the coal shortage can affect more than 10 million customers of state-owned power company, PT PLN, from the people to the industries. This can disturb national economic stability. However, if the coal supply for the power plant is already fulfilled, the export ban will be lifted sooner. The government will evaluate after January 5th, 2022.
The government has several times reminded coal businesspeople to keep fulfilling their commitment in supplying coal to PT PLN. However, monthly coal supply for PLN is below the Domestic Market Obligation. That resulted in a coal shortage for PLN power plants at the end of the year.
According to Ridwan, a secure coal supply for a power plant is above 20 operational days. Until January 1st, 2022, from the 5.1 million metric ton government's obligation, only 35 thousand metric ton or less than 1,0 percent was fulfilled. This certainly could not fulfill the needs of every available coal power plant.
Ridwan further remarked that coal businesspeople understand and support the temporary coal export ban. He affirmed that if domestic coal obligation is followed, the national economy and investment climate will be maintained. At the same time, the ministry has asked PT PLN to do business efficiency and activities that support quality power for all Indonesians.
January
The Indonesian Ministry of Industry focuses on continuing to build a manufacturing industry sector that is sovereign, independent, competitive and inclusive.However, the Covid-19 pandemic has had an impact on efforts to achieve these national priority targets.Despite the turmoil and challenges caused by the pandemic, the Indonesian manufacturing industry sector has consistently played its important role as the main driver and support for the national economy. Minister of Industry Agus Gumiwang Kartasasmita stated this at the Ministry of Industry's 2021 End of Year Press Conference in Jakarta last Wednesday. He emphasized the manufacturing industry sector is the main driving sector for Indonesia to leave the recession.
Minister of Industry Agus Gumiwang said in 2021 the manufacturing industry sector began to bounce back. This can be seen from a number of brilliant performances, including investment realization, export achievements, tax contributions to gross domestic product (GDP) and the ranking of the Purchasing Managers Index (PMI). During January-September 2021, realization of investment in the manufacturing sector increased by 17.3 percent when compared to investment realization in the same period in 2020.
In terms of the achievement of export value, the contribution of the manufacturing industry sector continues to increase. The export value in January-November 2021 reached 160 billion US dollars or contributed 76.51 percent of total national exports. This figure has exceeded the achievement of manufacturing exports throughout 2020. Agus Gumiwang emphasized, when compared to January-November 2020/ then the export performance of the manufacturing industry in January-November 2021 increased by 35.36 percent, while maintaining the trade balance surplus that was printed in May 2020.
He added the achievements of the manufacturing industry sector in terms of investment and exports accompany the contribution to state revenue and to the formation of national GDP which continues to increase. For the manufacturing industry sector tax throughout the year, on average it contributes 29 percent, while excise revenue from the industrial sector contributes 95 percent of total national excise revenue. As for the contribution aspect in GDP, the contribution of the manufacturing industry in the third quarter of 2021 amounted to 17.33 percent. This figure is the highest among other economic sectors
December
President Joko Widodo in Denpasar, Bali on Monday laid the first stone of construction of Bali international hospital. In his remarks, President Joko Widodo hopes that Bali will become a health tourism destination. He also hopes if Bali International Hospital starts operating, there will not be another Indonesian who would look for treatment abroad, since health services in the country are complete enough.
He further stated that every year, some 2 million Indonesians seek health treatment in Singapore, Malaysia, Japan, USA, and other countries. Therefore, the president said, Indonesia lost Rp 97 trillion potential.
On the same occasion, Minister of State-owned Enterprises, Erick Thohir said that the international standard hospital project will finish in May 2023. He explained that the hospital construction uses the state-owned enterprises’ fund and a government bank.
Minister Erick Thohir further remarked that his side is attempting to consolidate hospitals to have a high service standard. This international hospital will also help Bali through health tourism.
December
Indonesia and Russia agree to increase cooperation in various fields
Written by Maryati
Indonesia and Russia agreed to keep increasing concrete cooperation in various fields in a bid to encourage economic recovery efforts. This commitment was revealed in a meeting of the Indonesian Coordinating Minister for the Economy, Airlangga Hartarto along with Ambassador of the Russian Federation to the Republic of Indonesia, Lyudmila Georgievna Vorobieva at the Office of the Coordinating Ministry for the Economy in Jakarta last Thursday (23/12).
During the meeting, they discussed several issues of strategic cooperation between the two countries, including the plan to hold the 13th Joint Commission Session between Indonesia and Russia in the fields of trade, economy and engineering. They also discussed the plans for the INNOPROM Industry Exhibition: Industrial Exposition and Business Dialogue, which for the first time will be held in Jakarta from 10 to 12 March 2022. In addition to presenting industry players from both countries, the exhibition is planned to also present those from the Eurasian and Central Asian region as well as several companies from other Southeast Asia regions.
Minister Airlangga Hartarto said that these two activities will play an important role as a platform of collaboration to improve relations and concrete cooperation in the economy, trade, investment and industrial fields between Indonesia and Russia. Moreover, the activities will take place during the Indonesian Presidency at the G20.
In addition to the joint event that is being finalized by the two countries, Minister Airlangga Hartarto and Ambassador Lyudmila Georgievna also discussed cooperation in the aerospace and space industry. Other fields that were being discussed are energy, transportation and rail infrastructure, shipping industry, animal husbandry products and digital economic platforms in particular. Meanwhile, efforts in handling the Covid-19 pandemic have been discussed as well. Ambassador Lyudmila Georgievna expressed Russia's readiness to encourage cooperation in the development of the Covid-19 vaccine in Indonesia through Sputnik-V and other therapeutic drugs.
According to Minister Airlangga Hartarto, there is still a lot of potential for trade and investment cooperation that can be further explored by both countries. Currently, one of which is underway is the construction of an oil refinery in Tuban, East Java and the Natuna Block. Both countries agreed to further encourage cooperation in the field of new and renewable energy, such as hydro and hydrogen energy and the construction of a floating power plant as a joint step in reducing carbon emissions.
December
Indonesian Maritime and Fisheries Ministry and FAO Continue Sustainable Freshwater Eel Management
Written by Maryati
Unagi or freshwater eel is one of the most wanted dishes in Japanese restaurants across the globe. Currently, some 80 percent consumption of Unagi comes from cultivation, but the eel larvae still come from natural capture. Besides, the survival rate of eel larvae is very low. So, commercial use can reduce the eel population stability in nature. This condition certainly can threaten the Unagi population in Indonesia, as happened in Japan and Europe.
In a press release on Sunday (19/12), Minister of Maritime and Fishery, Sakti Wahyu Trenggono said that fish resources in Indonesia, including the diverse Unagi, needs to be managed responsibly to keep it long-lasting and to bring welfare for the Unagi fishermen. Conservation principles application and all involvement in managing the unagi are expected to bring a guarantee for the sustainability of Unagi in Indonesia.
In Indonesia, one of the Unagi cultivations is located in Sukabumi, West Java. The Unagi larvae from Sukabumi does support not only local cultivation, but also cultivation business across Indonesian.
Unagi cultivation development by improving the survival rate of the eels during the critical phase from larvae into elver is part of the cooperation among FAO, Maritime & Fisheries Ministry, and Sukabumi Regency Government through IFish Project. This project received funding from the Global Environment Fund. Also, Tonjong Fish Seeds Agency in Sukabumi became a demo location for elver cultivation.
Head of the Fish Research Center,Yayan Hikmayani said that the IFish project with FAO and Sukabumi regency has been ongoing since 2018. The previous effort successfully increased the larvae to level survival rate up to 60 percent. The main focus of the cooperation is land waters biodiversity conservation principles mainstreaming in the policy through demo and sustainable use, especially for the Unagi.
Meanwhile, Manager of FAO-IFish National Project, Sudarsono said that the IFish project will be continued in 2022 to arrange some strategic policies, such as regional regulation on Land Fish Management and Unagi Cultivation Management Master Plan in Sukabumi.
December
The Ministry of Transportation has officially handed over the management of the Patimban Port to PT Pelabuhan Patimban International (PPI) after previously being temporarily operated by the government through an assignment to PT Pelindo. The transfer of the management of the Patimban Port vehicle terminal was carried out directly by Minister of Transportation, Budi Karya Sumadi at the Patimban Port in Subang, West Java Friday (17/12). In the operation of this Port, PT Pelabuhan Patimban International cooperates with a Japanese consortium, Toyota Tsusho Corporation.
During the handover ceremony for the management of the Patimban Port, Minister Budi Karya said that the management of this port is carried out with a government and business entity cooperation scheme. According to Minister Budi Karya, the handing over of port management to the private sector aims to improve the competitiveness of national logistics. He also explained that the construction of the Patimban Port was carried out to increase the national logistics index and collaborate with the Tanjung Priok Port to become a new 'hub' that has high competitiveness in the Southeast Asia region. Minister Budi Karya hopes that the presence of the Patimban Port can make Indonesia one of the export bases for vehicles which can improve the national automotive industry. He also invited all automotive industry players, both motor vehicle manufacturers/component and spare parts manufacturers to the raw material industry to take advantage of the Patimban Port.
After it was officially handed over, Patimban Port which began to be built in 2018 immediately served the initial export of 1,209 vehicles to the Philippines. This port is one of the National Strategic Projects, which is expected to become the forerunner of a new industrial and urban area in West Java called Rebana which stands for Cirebon/ Subang/ Patimban/ and Kertajati Metropolitan/ covering six regencies and the Cirebon City.
Minister Budi Karya Sumadi also remarked that in addition to serving export-import activities of vehicles, Patimban Port is also expected to be able to move the economy of the Micro, Small and Medium Enterprises sector, agricultural sector, creative industry and other sectors so that local products can compete in the global market.
December
Coordinating Minister for Economy, Airlangga Hartarto said that the government's effort through the National Economic Recovery Program in 2021 has been on the track as intended and will be continued in 2022. Minister Airlangga in an official statement in Jakarta on Tuesday (14/12) said that the government countercyclical budget policy, especially through the National Economic Recovery Program had protected the vulnerable people and stimulated the business sector to grow positively. Indonesia is one of few countries whose output has returned to the pre-pandemic level.
The National Economic Recovery realization until December 10, 2021 had reached 69.8 percent. It includes health with 66.7 percent, social security 81.5 percent, priority programs 70.9 percent, business incentive 100 percent, and micro small medium enterprises (MSMEs) and corporation 47.9 percent. Meanwhile, the new program is job loss insurance - derivative of the Job Creation Law.
Allocation changes for the National Economic Recovery Programs included extreme poverty handling, labor intensive programs, and job loss insurance. Minister Airlangga Hartarto also remarked that some parts of the tourism and retail sectors were very much helped by wage subsidies. The government created some safety nets in case any sector faces difficulties in their operations and administration.
Furthermore, Minister Airlangga Hartarto said that the government's program in 2021 focused on extreme poverty handling in 35 regencies/cities in 7 provinces with two programs namely groceries card for 3 months and village aid for 3 months. In line with that, there will be a National Socio-Economic Survey in 2022 to handle 212 regencies/cities. Minister Airlangga added that the government targets to reduce extreme poverty rate in 2022 to 3-3.5 percent and poverty between 9.2-9.17 percent.
By 2022, the government will have allocated the budget of Covid-19 Handling Program and National Economic Recovery Program worth Rp414 trillion to handle the Covid-19 pandemic in the health sector and people security. According to Minister Airlangga, the health sector budget is worth Rp117.9 trillion, people security Rp154.8 trillion, and economic recovery strengthening Rp141.4 trillion.
The 2022 State Budget will be focused on national economic recovery and structural reformation. Also, the 2022 State Budget will focus on handling the pandemic so that the State Budget becomes an instrument to maintain Indonesian economic recovery and support the continuity of the Covid-19 pandemic handling programs.
December
Public Works and Housing Ministry Invites Turkish Companies to Invest in Infrastructure
Written by Maryati
Indonesian Minister for Public Works and Housing, Basuki Hadimuljono received a visit from Indonesian Ambassador to Turkey, Lalu Muhammad Iqbal and representatives of Turkish companies at the Public Works and Housing Ministry Office in Jakarta on Monday (13/12). They discussed cooperation potential in infrastructure. The meeting was a follow-up for the bilateral meeting between Indonesia and Turkey in November 2021.
In the meeting, Minister Basuki also gave a good assessment for Turkey's success in building Ankara. This makes the Indonesian government believe that a sustainable cooperation between Indonesia and Turkey must be maintained and developed further. He also said that there are many investment potentials between Indonesia and Turkey.
Moreover, some Turkish construction companies are the best global contractors that have finished 10,725 projects in 128 countries with an investment value of US$42.5 million. Most of that investment was in housing and road, bridge, and investment construction in Europe, Asia, and the Middle East. Therefore, Minister Basuki encouraged Turkish investors to invest in various infrastructure sectors both from Government-to-Business Cooperation (KPBU) and Engineering Procurement Construction (EPC). He further remarked that he anticipated Turkey's participation in development programs in Indonesia. He hopes that the meeting and forum could strengthen Indonesia-Turkey bilateral relations. So, it could realize the expectations for infrastructure development in Indonesia.
In one hand, at a business forum with Indonesian state-owned enterprises and Public Works & Housing Ministry at the same day, the Public Works & Housing Ministry expressed the intention for a deeper discussion with Turkish delegates about prospective infrastructure investment and project in toll road and housing in Indonesia, as well as field visit to toll road projects in Pekanbaru.
On the other hand, Ambassador Lalu Muhammad Iqbal said that currently, there are two Turkish companies as a follow-up of the visit to Ankara. The first company focuses on toll road construction, while the second one is the world's second biggest company for prefabricated housing. The Turkish companies have communicated with the Infrastructure Funding Director General and will visit the toll road in Sumatra to support restructuring and to invite the investors.
December
North Sumatra Exports 25 Plantation Commodities to 34 Countries
Written by Maryati
Indonesian Vice President, Ma'ruf Amin accompanied by Minister of Agriculture, Syahrul Yasin Limpo released the export of 25 plantation commodities and spices from North Sumatra Province to 34 countries. The exports include cardamom, rubber, grated coconut and palm kernel oil. While the export destinations are Germany, Japan, Spain, The United States of America, South Korea and the Netherlands.
The symbolic release of exports was carried out at the opening ceremony of the commemoration of Plantation Day and the Launching of the National Spice Day in the Lake Toba, North Sumatra region last Friday (10/12).
On the occasion, Vice President Ma'ruf Amin said that the export activities in the commemoration of the Plantation Day are a momentum for Indonesia to move forward in order to realize a more resilient agricultural sector in increasing production and export volumes.
He also remarked that it is time for the development of plantation and spice commodities to be developed through increased productivity, production, development of the processing industry and competitiveness. In addition, in the future Indonesia must also export processed materials in a bid to increase the value of the product. Moreover, the Ministry of Agriculture and the Ministry of Trade must create various breakthrough steps, including an open international trade system, such as building various infrastructure and supporting facilities for the production, distribution and logistics processes to increase export activities and establish commercial governance that benefits producers and consumers, including improving the welfare of farmers and planters. With this open international trade system, Indonesia can overcome obstacles in the international trade arena.
Meanwhile, Minister of Agriculture, Syahrul Yasin Limpo said that he is optimistic that he could increase production, competitiveness and exports of plantation commodities and spices. This is based on the success of building advanced agriculture. During the Covid-19 pandemic, only the agricultural sector grew positively so that it became the savior of national economic growth.
The commemoration of the 64th Plantation Day along with the Launching of the Determination of the National Spice Day aims to encourage commitment, motivation, creativity and participation of all plantation stakeholders among the government, private sector and the community to play a major role in increasing plantation exports in the economic recovery.
Minister Syahrul Yasin Limpo also emphasized that this is a momentum to raise enthusiasm to triple Indonesia's exports of plantation and spice commodities. Indonesia's rank as a spice producer must increase from the current 10th to 3rd or 2nd largest in the world.