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November
President Joko Widodo's steps are to stop not only the export of raw materials such as nickel ore, but also bauxite. In Jakarta last Thursday (18/11), he emphasized that after the smelter or mining refining site in Gresik, East Java has been completed, bauxite exports will also be stopped. According to the President, this export cessation is intended so that the Indonesian people can gain added value and create the widest possible employment opportunities. President Joko Widodo said that during the recent G20 meeting, many countries have complained about Indonesia’s nickel export ban policy.
Although this policy will make a number of countries be unable to accept it and will report it to the World Trade Organization (WTO), President Joko Widodo did emphasize that he will continue the downstream process of the mining raw material industry, if any country sues, Indonesia will face it.
President Joko Widodo further stated that this is an opportunity for Indonesia to integrate major domestic industries. He does not want Indonesia to lose the opportunity to become a major player in the global industrial arena. He added that Indonesia must speak out loudly against all property rights that have been controlled by foreigners. Minerals and coal must be the foundation in order to advance the Indonesian nation.
Meanwhile, Deputy Minister of Trade, Jerry Sambuaga said that Indonesia has the right to regulate trade in its strategic resources. Moreover, it has something to do with the interests of the wider community and sustainable economic interests as well. Nickel is one of the materials to make batteries of various kinds, including for electric cars which are becoming a world trend. Indonesia is the main nickel producer in the world. So, it is not surprising that international markets are interested in Indonesian nickel. The government seeks to optimize the contribution of nickel to the economy and national interest. With efforts against the lawsuit against the restriction on nickel exports, Deputy Minister Jerry Sambuaga hopes that the nickel-based industry can also grow by taking advantage of this momentum. Thus, the nickel trade and industry will provide the highest added value as President Joko Widodo has affirmed.
Chairman of the Indonesian Regional Representatives Council, LaNyalla Mahmud Mattalitti fully supports President Joko Widodo's policy. He said that Indonesia does not need to be afraid of the threat from European countries that will bring this problem to the world trade organization (WTO). This is the right time to show Indonesia's sovereignty.
November
Indonesian Minister of Foreign Affairs, Retno Marsudi appreciated the health cooperation amid the Covid-19 pandemic between Indonesia and New Zealand. Until now, New Zealand has provided vaccines, ventilators, rapid test for Indonesia and support for Eijkman Institute. That was stated by Minister Retno Marsudi after a meeting with her New Zealand counterpart, Nanaia Mahuta at Indonesian Foreign Affairs Ministry office in Jakarta, Monday (15/11). Then, Minister Retno Marsudi said that health issues will be a priority of the Indonesian presidency in the G20. Indonesia shared a similar position on the importance of equal vaccine access for all countries.
In the meeting, both ministers discussed cooperation on post-pandemic economic recovery acceleration. Minister Retno Marsudi affirmed that trade and investment are always the key in an economy. In September, the bilateral trade trend rose by 37 percent year on year up to US$1.25 billion. Hard work is still needed to achieve US$ 2.8 billion in 2024.
Minister Retno further affirmed the importance of a more balanced bilateral trade. Therefore, she asked New Zealand to open market access for Indonesian tropical fruits and to strengthen investment and capacity building programs for agriculture and farming in Indonesia.
She also hoped that trade cooperation, such as ASEAN-Australia-New Zealand Free Trade Agreement and RCEP can be used to boost the two countries' trade and investment. Minister Retno Marsudi added that New Zealand can be a partner in energy transition. One of the cooporations that can be developed is geothermal. A partnership in this energy sector has been shown among many by Flores Geothermal Island in West Nusa Tenggara and pipeline development in Maluku in the framework of New Zealand-Maluku Access to Renewable Energy Support (NZMATES).
November
Indonesia Ready to Host ASEAN Transport Ministers Meeting -ATM
Written by Maryati
Indonesia is ready to lead and host the ASEAN Meeting on transportation for ministers, high officials, and ASEAN Working Group in 2022. That was stated by Minister of Transportation, Budi Karya Sumadi during a virtual ASEAN Transport Ministers Meeting -ATM and Associated Meetings 2021 on Friday (12/11).
Minister Budi Karya in a written statement said that the meeting is important for transportation development in ASEAN, through partnership in the transportation sector between ASEAN and other countries, such as Japan, South Korea, China, and U.S.A as well as other ASEAN dialog partners.
According to Minister Budi Karya, this year's ministers' joint statement became an important document. This document will be a reference framework for cooperation in ASEAN's land, sea, and air transportation.
MInister Budi Karya Sumadi hoped the Covid-19 pandemic will get better so that the ASEAN meetings on transportation in 2022 can be held face to face.
ASEAN Transport Ministers Meeting agreed on a joint initiative resulting from this year's meeting, related to the continuation of partnership or cooperation in the transportation sector.
The meeting also agreed on the initiative for Covid-19 recovery, digital transformation increase in ASEAN, ASEAN single flight market strengthening, ASEAn land transport network increase, and cross-border goods transportation facility. They also agreed on the sustainable transportation integration, sea transport connectivity and integration increase, and transportation cooperation with some ASEAN dialog partners.
November
Indonesian Minister of Industry, Agus Gumiwang Kartasasmita officially opened the 2021 Gaikindo Indonesia International Motor Show (GIIAS) at ICE Bumi Serpong Damai, Tangerang, Banten Thursday (11/11). In his remarks, Minister Agus said that the automotive industry is one of the fastest growing industries. This was seen from the growth of the transportation equipment industry which reached 27.84 percent in the third quarter of 2021. This double-digit growth was printed by the transportation equipment industry for two consecutive quarters.
Minister Agus Gumiwang also said that sales figures from the automotive industry also increased. In the January-September 2021 period, retail sales reached 600 thousand 344 units, a sharp increase compared to the same period in the previous year of 407 thousand 390 units. This surge indicated an economic recovery on the right track.
Minister Agus Gumiwang further stated that the automotive industry is able to make a significant contribution to the national economy so that it becomes a priority sector for development according to the Making Indonesia 4.0 road map. The potential of the automotive industry is currently supported by 21 four-wheeled motor vehicle industry companies. The total production capacity is 2.35 million units per year, absorbing 38 thousand direct labors and more than 1.5 million people work along the value chain in the industrial sector. In addition, Indonesia is the largest market for automotive products in ASEAN. This is an opportunity for the development and industrialization of motor vehicles, including those that are energy efficient and environmentally friendly in accordance with the growing global trend. Export performance in the January-September 2021 period was recorded at 207 thousand Completely Built Up (CBU) vehicles.
On this occasion, Minister Agus Gumiwang Kartasasmita appreciated the granting of relaxation of sales tax on luxury goods borne by the government. It has a significant impact on the recovery of the automotive industry sector and increases the confidence of industry players. This can be seen from the value of Indonesia's manufacturing purchasing managers' index (PMI) in October 2021 which reached 57.2 or the highest since the Covid-19 pandemic. This is a strong indicator that the industrial sector has entered an expansive stage.
November
Public Works and Housing Minister Encourages Turkish Investors to Invest in Indonesian Infrastructure
Written by Maryati
Indonesian Public Works and Housing Minister Basuki Hadimuljono encouraged Turkish investors to invest in the Indonesian infrastructure sector. That was done by Minister Basukin in his third-day working visit in Ankara, Turkey last week.
In a bilateral meeting with Turkish Trade Minister Mehmet MUŞ on Saturday, Minister Basuki Hadimuljono was accompanied by Indonesian Ambassador for Turkey Lalu M. Iqbal.
In his official statement on Sunday (7/11), Minister Basuki said there is a lot of investment potential between Indonesia and Turkey. The meeting was a follow-up of the two country's previous virtual bilateral meeting in June 2020. The two sides also prepared a framework to be recommended as a meeting topic between Indonesian President Joko Widodo and Turkish President Recep Tayyip Erdoğan in early February 2022.
The meeting of Minister Basuki and Minister Mehmet MUŞ also aimed to explore the cooperation interests of Turkish businesspeople and contractors during the honorary visit of Indonesian Foreign Minister Retno Marsudi. In the visit on October 12-13 2021, Minister Retno marsudi met with Turkish Contractor Association (TCA), Turkish Contractor Consultant Union (ACTEA), as well as two Turkish big construction companies Nurol Construction and SUMMA.
After meeting with the Turkish Trade Minister, Minister Basuki had a bilateral meeting with Turkish Deputy Minister for Transportation and Infrastructure Adil Karaismailoğlu in Istanbul. In the meeting they agreed that Turkey is ready to support Indonesia in accelerating the infrastructure development in Indonesia. The Indonesian Public Works and Housing Ministry believes that infrastructure development still provides investment opportunities for foreign construction companies, especially from Turkey.
On the occasion, they also discussed additional Indonesia-Turkey flights, from 6 times to 10 times per week. This aimed to support the economy, especially in trade and services, investment, and people's mobility from the two countries.
The agreement will later be made more concrete in the Business Forum between Turkish Construction Association and Indonesian Construction Association. Another business forum will be held between the Turkish Contractor Consultant Union (ACTEA) and Indonesian Consultant Association in Jakarta early 2022.
November
President Joko Widodo's Visit to UEA Generates US$32.7 billion in Business and Investment Commitment
Written by Maryati
President Joko Widodo's visit to the United Arab Emirates last Wednesday and Thursday resulted in business commitments and investments worth US$32.7 billion. Indonesian Minister of Foreign Affairs, Retno Marsudi in her statement in Abu Dhabi said that both the Indonesian and Emirate leaders discussed the progress of investment cooperation between the two countries. The business and investment commitments came from 19 cooperation agreements exchanged in Dubai Thursday (4/11). Minister Retno Marsudi explained that these were among the topics discussed when President Joko Widodo met Crown Prince Abu Dhabi, Sheikh Mohammed Bin Zayed Al Nahyan (MBZ) at Al-Shatie Palace in Abu Dhabi.
Minister Retno Marsudi further detailed the business and investment commitments, including cooperation between the Indonesia Investment Authority (INA) and the Abu Dhabi Growth Fund (ADG), INA and DB World "floating solar panels" between Masdar and Pertamina "refinery" Balikpapan, manufacturing and distribution of vaccines and "bio products." In addition, various agreements made by technology companies from Abu Dhabi G42 with partners in Indonesia are in the fields of "smart cities", telecommunications and development of "genomic" laboratories.
On the same occasion, Indonesian Minister of Investment / Head of the Investment Coordinating Board, Bahlil Lahadalia explained that Indonesia provides an opportunity for all countries to make investment realization in Indonesia and not only leaning on one country. He hopes the US$32.7 billion investment can be increased again to at least above US#35 billion.
Previously, when President Joko Widodo met investors in Glasgow on the sidelines of the COP26 World Leaders Summit, Indonesia also received an investment commitment worth US$9.2 billion. So, the total investment commitments obtained by Indonesia reached US$41.99 billion.
In addition to investment, President Joko Widodo and Prince Mohammed Bin Zayed also discussed issues in the trade sector. Both leaders agreed to a comprehensive economic partnership agreement (CEPA) between the two countries to be finalized sooner.
November
The 2nd Pacific Exposition, a trade, investment, and economic exhibition of the Pacific, earned a transaction worth US$104 million. This exhibition was held on October 27-30 2021 virtually. Indonesian Trade Deputy Minister, Jerry Sambuaga in a press conference on Saturday (30/10) said that the transaction in the 2nd Pacific Exposition resulted from international business interaction. The transaction and business commitment potentials mainly came from Australia, Indonesia, New Zealand, and New Caledonia.
The 2nd Pacific Exposition was joined by 18 Pacific countries. The business showcased included agriculture, coffee, construction, distributor, entertainment, food and beverage, home furniture, health and beauty, industry, producer, multi-industry, service, technology, textile and fashion, tourism, and trade.Indonesian Ambassador to New Zealand, Tantowi Yahya said that there are three products which give the greatest transaction for Indonesian trade from export. They were based on technology, agriculture, and coffee. Even, North Sumatran coffee successfully achieved a transaction worth more than US$11 million. Meanwhile, from import, the greatest contribution for trade value for Indonesia is given by onion. He said that Indonesia imports a lot of onions from New Zealand.
The 2nd Pacific Exposition was attended by 10,825 visitors. This was twice bigger than the 1st Pacific Exposition 2019. The visitors were limited not only from Pacific countries but also from other countries, such as Canada, Malaysia, China, Colombia, Spain, and many others.
Besides trade exhibitions and business meetings, the Pacific Exposition also held seminars on various issues. Ambassador Tantowi Yahya believed the Pacific Exposition will encourage economic recovery and increase regional solidarity and cooperation.
The Indonesian government plans to hold the 3rd Pacific Exposition in 2023. This biannual trade and investment exhibition is expected to be held physically.
November
Indonesia, as one of the best spice-producing countries in the world, seeks to increase people's prosperity through international trade. One of them is with India, the third main destination country for Indonesian spice exports. Indonesian Director General of National Export Development, Didi Sumedi said in a webinar last Wednesday (27/100 that India is now a strategic trade partner of Indonesia.
The webinar was a series of activities at the Trade Expo Indonesia-Digital Edition 2021 that has taken place from 21 October to 4 November 2021 online interactively and until 20 December 2021 with a showcase. This webinar was joined by Consul General of the Republic of Indonesia in Mumbai Agus Saptono, Deputy for Tourism and Creative Economy Coordination at the Coordinating Ministry for Maritime Affairs and Investment, Odo RM Manuhutu and Regional Director of Food Safety and Standards Authority of India at the Ministry of Health and Family Welfare of India, Pritee Chaudhary.
Didi Sumedi hopes that this activity will be used to expand the spice market in both countries. He also said that Indonesia has abundant spices and exports from January to August 2021 were recorded at more than US$500 million, an increase of almost 13 percent compared to the same period last year. Indonesia's main export products for spices are nutmeg, cloves, white pepper, cinnamon and cardamom.
Meanwhile, Consul General Agus Saptono in his speech said that this webinar aims to provide information and literacy regarding market access for spices and spice products which have been the main trade between the two countries since hundreds of years ago. Spices have also a significant role in the history of public relations between the two countries. According to him, this webinar is also a means of information on strategic approaches for stakeholders, small and medium enterprises that can be a catalyst for the added value of spice products.
Agus Saptono added that the demand for Indonesian spices from the Indian market is increasing rapidly even amid the Covid-19 pandemic. India with a population of around 1.4 billion is a nation that has a habit of consuming food and drink containing spices in their daily lives. This means that India is a market for spices and processed products of extraordinary Indonesian spices.
October
President Joko Widodo Promotes Indonesian Digital Economy to ASEAN
Written by Maryati
Indonesian President, Joko Widodo promoted investment opportunities in the Indonesian digital economy to ASEAN countries during the ASEAN Business and Investment Summit on Monday (25/10). In his remark, as seen on the presidential secretariat's official YouTube Channel, President Joko Widodo said that Indonesia opens as wide as possible the investment opportunities in the digital economy sector.
He further said that Indonesian digital economic value is very promising. It is predicted to reach US$124 billion in 2025, or equal to 40 percent of Southeast Asian total digital economic value. Currently, there are 2,229 start-ups in Indonesia, making it the 5th biggest in the world. There are also one decacorn and six unicorns.
The president further remarked that regional economic activity's adaptation towards the digital economy must be accelerated in all ASEAN member countries. He emphasized that digital technology is the most effective solution during activity restrictions in the people's economic activities.
According to him, as a region with the fastest internet growth in the world, ASEAN's digital economic potential is colossal. Amid the Covid-19 pandemic, the digital economy grew up to US$100 billion in 2020. According to Joko Widodo, this is a milestone for economic progress of the region.
President Joko Widodo also affirmed that Indonesia supports ASEAN as a digitally connected community. The Indonesian government even has made the Indonesian Digital Roadmap 2021-2024, as a strategic guidance for the nation's digital transformation.
The Indonesian president also remarked that ASEAN regional economy will not only recover, but also can jump further and grow together justly and sustainably. Therefore, he affirmed that a jointly quick movement in handling the health sector, reactivating the safe travel and accelerating the just digital economy will become the gate for a common recovery and advancement.
October
Indonesia and Malaysia Discuss Mutual Recognition for COVID-19 Vaccine Certificate
Written by Maryati
The Indonesian and Malaysian Governments discussed Covid-19 vaccine certificate of mutual recognition to strengthen the cooperation between the two in fighting the pandemic. Indonesian Minister of Foreign Affairs, Retno LP Marsudi in a joint press conference with her Malaysian counterpart, Saifuddin Abdullah at the Foreign Affairs Ministry Office, in Jakarta on Monday (18/10) said that both of them agreed that all vaccines with WHO's Emergency Use Listing must be treated equally without discrimination.
The mutual recognition can be supported by using the apps namely PeduliLindungi from Indonesia and MySejahtera from Malaysia.
Meanwhile, Malaysian Minister of Foreign Affairs, Saifuddin Abdullah said that the technical staff of both countries should discuss how the system can accelerate mutual recognition. The recognition is important since both countries intend to reopen economic cooperation, which needs to be supported by mutual visit and cooperation, without neglecting the health protocols. In that respect, Minister Saifuddin Abdullah recommended Indonesia and Malaysia to open cross-border travel gradually by prioritizing the important sector, namely trade. A travel facility for trade, education, and followed by tourism is expected to be prepared in detail by the two nations.
Indonesia welcomed Malaysia's suggestion by encouraging an agreement to regulate travel corridors for essential business people of the two nations.
This regulation aims to facilitate the mobility of business people safely, and is expected to encourage the acceleration of economic recovery. The agreement framework will complement the ASEAN Travel Corridor Arrangement Framework (ATCAF) implementation that will apply soon.
Based on Indonesian government's data, the trade value of Indonesia-Malaysia in January-August 2021 reached US$13 billion. The bilateral trade value rose by 44 percent compared to the same period in 2020, namely US$9 billion.