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October
Ministry of Industry Accelerates the Development of Halal Industrial Estates
Written by Maryati
The Indonesian government is determined to build sharia economy and finance, as a new source of economy in Indonesia. Referring to the Islamic Economics Masterplan 2019-2024 strengthening the halal value chain is part of the main strategy in realizing Indonesia, as a world producer of halal products by 2024. Minister of Industry, Agus Gumiwang Kartasasmita in his written statement, Thursday said, government support in realizing the strengthening of the halal value chain is carried out through strategic initiatives namely the establishment of halal industrial areas. This is realized by the Ministry of Industry together with the Halal Products Guarantee Agency and the Indonesian Ulema Council with the presence of three halal industrial areas namely Modern Halal Valley, Halal Industrial Park Sidoarjo and Bintan Inti Halal Hub.
As a tangible manifestation of the government's efforts to accelerate the development of halal industrial areas, Vice President Ma'ruf Amin accompanied by Minister of Industry Agus Gumiwang Kartasasmita, Minister of Cooperatives and Small and Medium enterprises Teten Masduki, Governor of East Java, Khofifah Indar Parawansa and Sidoarjo Regent Ahmad Muhdlor Ali reviewing the construction of halal industrial areas in Sidoarjo, East Java Last Thursday. During his visit, Vice President Ma'ruf Amin invited foreign investors not to hesitate to invest/ especially in the halal industrial estate sector. According to Ma'ruf Amin, as a country with a majority Muslim population, Indonesia is the largest market for halal products. In addition, Indonesia is developing halal industry in various industrial areas, which will encourage the development of the halal product industry.
Meanwhile, the Minister of Industry also explained to encourage considerable potential in the halal industry required collaboration with ministries and institutions in the region. Availability of complete and integrated facilities and infrastructure will increase investment interest in halal industrial areas because it competes with several neighboring countries. Therefore, The Ministry of Industry continues to make efforts to encourage the development of halal industrial areas and Halal Hubs in the regions in order to form a strong and equitable halal industrial ecosystem throughout Indonesia. Agus Gumiwang asserts the development of Industrial Estates, especially the Halal Industrial Estate, is not only limited to obtaining permits but how to bring tenants into the area. The development of halal industrial areas needs to get attention such as facilitation of incentives/ in order to strengthen the halal value chain ecosystem from global halal industry activities
October
Light-up Villages with Solar Power Plants, Energy Ministry and UNDP Send Energy Patriots
Written by Maryati
The Indonesian Ministry of Energy and Mineral Resources and UNDP had inaugurated 23 "Energy Patriots" who will help the people in lighting-up their villages with solar power plants. It was stated by the ministry's Director for Renewable Energy and Energy Conservation Infrastructure Planning and Development Hendra Iswahyudi in a press release on Sunday.
Hendra said these "energy patriots" have the experience in guiding the people. This includes supporting the people during the solar power plant construction, solar power plant asset handover from the Energy & Mineral Resources Ministry to village government, the selection, training, and certification of local operators, the forming of village power manager unit, and village economy potential mapping.
The patriots will work for 18 months as facilitators in 23 villages in East Nusa Tenggara, Southeast Sulawesi, West Sulawesi, and Central Kalimantan.
They are also part of the Accelerating Clean Energy to Reduce Inequality (ACCESS), a joint project between UNDP and Indonesian Energy & Mineral Resources Ministry supported by Korea International Cooperation Agency (Koica). The main goal of ACCESS is providing electricity from renewable energy, especially solar power, to remote villages in Indonesia and Timor Leste.
Meanwhile, UNDP Indonesia's Deputy Resident Representative Sophie Kemkhadze said ACCESS is a part of the effort in promoting renewable energy. This project is in line with Indonesia's target to increase the renewable energy in the national energy mix into 23 percent by 2025. Seven of these patriots are women and they also represent the young generation, who will bring an innovative and interesting process in their advocacy.
Previously, the ministry's Director for Renewable Energy Chrisnawan Anditya said there are three factors as the basis for the government in accelerating the solar power plant. The three factors are great potential, quick installation, and more competitive price compared to some times ago.
September
INKA and Maritime & Investment Coordinating Ministry Develop Reefer Container for Fish
Written by Maryati
Indonesian state-owned train company, PT Industri Kereta Api or PT INKA along with the Coordinating Ministry for Maritime and Investment developed the reefer container to maintain the freshness and quality of fish. An endurance test for the reefer container was held at Tamperan Seaport in East Java last Thursday (22/9).
President Director of PT INKA, Budi Noviantoro in a statement has said recently that there was a difficulty in shipping marine commodities. It needed a reefer container with an advanced technology system. He hopes the reefer container prototype is working.
The marine commodity was moved into the container with a hybrid system in the prototype. The power supply uses a solar panel, battery, and generator. The body uses polyurethane foam with a stainless steel frame that can keep the temperature up to 22 Celcius.
There are five reefer container prototypes to be developed by PT INKA and Brawijaya University. They are mini reefer containers with various capacities according to international shipping needs. The standardization and certification test for the product is targeted to finish by December 2021. So, it can be mass-produced in January 2022.
The Ministry's Deputy Assistant of Maritime Resources Downstreaming, Amalyos Chan affirmed the reefer container prototype will have Indonesian National Standard and local content rate is processed. This aims to support national products to compete with foreign products. Therefore, Indonesia will not depend on foreign products anymore.
September
Government continues to accelerate micro, small and medium enterprises recovery
Written by Maryati
The Indonesian government continues to accelerate the recovery of micro, small and medium enterprises from the impact of the Covid-19 pandemic. This was stated by Minister of Cooperatives and Small and Medium Enterprises, Teten Masduki in a webinar last Thursday, (23/9). He said that the recovery was through financing policies, assistance, institutional strengthening through cooperatives, access to marketing and digitalization technology, as well as multi-stakeholder cooperation with various institutions. According to Minister Teten Masduki, a financing stimulus has been provided for micro, small and medium enterprises. This includes those that are not yet bankable, meaning that they have not met the bank's requirements to obtain business loans, or those that are already bankable.
Minister Teten Masduki further explained that the stimulus included Presidential Assistance for Productive Micro Businesses, interest subsidies for people's business loans, and cooperative financing through the Revolving Fund Management Agency.
The Ministry of Cooperatives and Small and Medium Enterprises also encourages the enterprises to transform digital flatforms. According to Minister Teten Masduki, the digital transformation is key to the recovery and economy of the micro, small and medium enterprises sector during the pandemic and post-pandemic. He also explained that so far, the onboarding to the digital ecosystem has reached 15.9 million, an increase of 7.9 million during the pandemic.
Minister Teten Masduki added that the government also continues to encourage banks to increase their involvement in efforts to help the micro, small and medium enterprises sector continue to grow and develop. He admitted that financing from banks is only 20 percent of the total bank credit. This figure is much lower compared to neighboring countries. The government targets that by 2024, banking credit to the micro, small and medium enterprises sector can reach 30 percent. Banks need to continue to encourage lending for investment in the productive sectors which have the potential to further encourage economic movement.
The webinar was also attended by Coordinating Minister for Economic Affairs, Airlangga Hartarto. He said that the fiscal assistance that was rolled out for the sector through the National Economic Recovery Fund until September 23, 2021, has been enjoyed by 27.39 million micro, small and medium enterprises. The funds are channeled through several programs, such as interest subsidies, placement of government funds to banks and partners, to support the restructuring program and increase their working capital. In addition, it is also rolled out in the form of productive assistance for micro businesses, cash assistance and final income tax incentives.
September
World's Trust for Indonesia Keeps Improving, PMA Reaches 50.5 percent
Written by Maryati
Foreign investor's trust for Indonesia keeps improving along with the investment grew by 8.3 percent in the second quarter of 2021. That was stated by Minister of Investment / Head of Investment Coordinating Board, Bahlil Lahadalia during the Investment Dialog: "Post-Pandemic Economic Recovery: Attracting Investment via Structural Reformation. This discussion was held online by Eurocham and the Investment Minister / Investment Coordinating Board on Tuesday (21/9).
Minister Bahlil said that in 2021, the investment target was set at Rp 900 trillion and 49.6 percent of it has been realized. From the percentage, foreign direct investment (FDI) was 50.5 percent. It means that the world's trust for Indonesia gradually improves.
Minister Bahlil further remarked that the global improving trust was seen from the European investors in the list of Indonesia's top foreign inventors. Based on the data from the Investment Minister / Investment Coordinating Board, in the first quarter of 2021, Switzerland was one of the top 5 investors in Indonesia. Meanwhile in the second quarter, the Netherlands was the third top investor in Indonesia.
With that achievement, Minister Bahlil Lahadalia said that the government will try to make improvements in a bid to give certainty, ease, transparency, and efficiency for the investors. One of the strategies was the Job Creation Law and the Risk-based Online Single Submission for investment licensing.
On the same occasion, Chairman of Eurocham, Julien Steimer said that some European companies in Indonesia had confirmed their commitment to keep investing in Indonesia. Steimer, on behalf of European companies, also gave appreciation for the total reformation by the Indonesian government in facilitating business between Europe and Indonesia.
He affirmed that Eurocham members are committed to continuing the dialogue and ensuring various European companies to be the right partners for Indonesia in increasing the country's business and economic security.
September
The Indonesian Central Statistics Agency recorded Indonesia's export value of US$21.42 billion in August 2021. This achievement is the highest record in Indonesia's history. Head of the Agency Margo Yuwono in a virtual press conference last Wednesday, September 15, explained that the positive export performance during the last month could not be separated from the increase in commodity prices in the global market. Price increases occurred in coal, palm oil (CPO), kernels, aluminum, tin, rubber and nickel. However, the highest increases in terms of prices and export volumes were CPO and coal. On a monthly basis, coal prices in August 2021 rose 11.04 percent compared to July 2021, as well as CPO prices which rose 6.85 percent.
Separately, Coordinating Minister for Economic Affairs Airlangga Hartarto said that the high rate of exports in August 2021 showed Indonesia's economic recovery, which was accompanied by an improvement in the level of Indonesian Manufacturing Purchasing Managers' Index (PMI). In a written statement, Thursday, September 16, Airlangga Hartarto revealed, Indonesia's Manufacturing PMI in August 2021 increased to 43.7 from the previous level of 40.1 in July 2021. Indonesia's PMI level is better than several countries in ASEAN, such as Myanmar, Vietnam, and Malaysia.
This achievement, according to Airlangga, indicates that Indonesia's economic recovery will continue in line with the recovery in global demand. This is indicated by the continued increase in export volume and prices for Indonesia's mainstay commodities such as coal and CPO. For information, the realization of the export value in August 2021 increased by 20.95 percent compared to the export rate in July 2021. Meanwhile, non-oil and gas export destinations that experienced the largest increase compared to the previous month included China, India and Japan.
September
Special Economic Zone Expected to Accelerate National Economy Recovery
Written by Maryati
Coordinating Minister for Economy, Airlangga Hartarto said that investment commitment at 19 Special Economic Zones (SEZ) reached 92.3 trillion rupiahs as of July 2021, and had been realized 32.76 trillion rupiahs.
Minister Airlangga, during a webinar on SEZ on Monday (13/9), said that the investment in SEZ has created jobs for more than 26 thousand people directly. Then, from January until July, the export from SEZ reached 3.66 trillion rupiahs.
Meanwhile, until August, 129 business entities had registered their profile into the special app system at the SEZ, in order to receive special facilities after operating in the SEZ. The facilities are exemptions for income tax, added-value tax, luxury goods tax, import duty, import tax, and customs.
Minister Airlangga also remarked that many facilities given by the government are meant not only to encourage SEZ competitiveness value, but also to increase the production of export-oriented goods that are connected with the global supply chain, so that investors are attracted to invest in the SEZ.
On the same occasion, Minister of Finance, Sri Mulyani hoped the SEZ could attract investment from the country and abroad. So, this can accelerate national economic recovery, which was affected by Covid-19 pandemic.
Minister Sri Mulyani also said, the government, through the National Single Window Agency (LNSW), Tax Directorate General, and Customs & Excises Directorate General, has developed a special app system for SEZ that is expected to improve SEZ value for the investors.
The SEZ app system developed and managed by LNSW has an efficiency function, so business people just need one system for various SEZ services. The system is also easy because it only requires one single document.
In addition, the system is also transparent, because business people, SEZ administrators, customs and excise officers, as well as tax officers can observe the SEZ operation in one system with similar standards.
Through this app, business people operating in SEZ are expected to receive many facilities with ease.
Minister Sri Mulyani also hopes that the IT development in SEZ can improve the 4.0 industry competitiveness value in Indonesia, namely an electronic and automation-based industry.
September
World Bank Approves 380 Million USD Loan for Cisokan Hydropower Plant
Written by Maryati
World Bank's Executive Directors on Saturday (11/9) approved the 380 million USD loan for the development of the first pumped storage hydropower plant in Indonesia. This 1,040 megawatt power plant is located in the upstream of Cisokan River between Jakarta and Bandung.
World Bank's Director for Indonesia and Timor Leste Satu Kahkonen in their official statement on Saturday said this project showed a turning point in the road to decarbonization in Indonesia. She added the World Bank will keep supporting Indonesia in achieving a resilient, sustainable, and inclusive development so that it benefits the Indonesian people in the present and in the future.
The hydropower plant development aims to increase the power plant capacity during the peak load, while supporting energy transition and achieving the decarbonisation target. Energy and Mineral Resources Minister Arifin Tasrif said, Indonesian government is committed to reducing greenhouse gas emission, among many through sustainable energy development, energy conservation effort, and clean energy technology use.
The minister further explained that the reduced emission from the energy sector was supported by many actions such as power procurement from sustainable power plants, and energy efficiency. More than 80 percent of electric power produced for the Java-Bali network, which provides power for 70 percent of Indonesians, comes from fossil fuel.
Arifin Tasrif said, the important effort to support decarbonization is developing an energy storage facility which allows integrating renewable energy into the power network. The pumped storage hydropower plant plays a key role in this approach.
Therefore Arifin said the facility potentially gives a significant increase in power plant capacity to fulfill the needs during the peak load. The same facility will provide a great storage capacity that allows renewable energy absorption in a greater amount, while reducing the transmission networks load.
As a result, a more eco-friendly and reliable power plant can benefit the consumers in Java and Bali.
September
Indonesia's agricultural exports to China increased significantly
Written by Maryati
The export value of agricultural products from Indonesia to China continued to experience significant growth during the COVID-19 pandemic. Indonesian Ambassador to China Djauhari Oratmangun at the International Sustainable Agricultural Development Conference in Beijing, Thursday, September 9, said that during the January to July 2021 period, the value of Indonesia's agricultural exports to China reached US$542.73 million. According to Ambassador Djauhari Oratmangun, the export value has increased by 36.6 percent. He also explained, at the peak of COVID-19 cases in 2020, exports of Indonesian agricultural products to China reached 828.12 million US dollars. This figure increased by 86.95 percent compared to the value of agricultural exports throughout 2019. The increase in export value was triggered by the high demand for swallow nests and their derivative products during the COVID-19 pandemic.
In addition to swallow nests, the increase in exports to China was supported by other superior products such as palm oil, natural rubber and its derivatives, cocoa, coffee beans and packaged coffee, tea, tropical fruits, and spices. Ambassador Djauhari said he was confident that exports of these agricultural products would continue to increase in the coming years. Moreover, according to Djauhari Oratmangun,
Indonesia and China have just signed an agreement to settle local money payment transactions (LCS) using rupiah and yuan without going through the US dollar. The Ambassador believes that the rupiah-yuan payment scheme will restore the national economy. Therefore, this SCS must be optimized so that trade and investment transactions as well as tourism between Indonesia and China can be a source of post-pandemic economic recovery. According to him, the implementation of the SCS will be very beneficial for both countries.
Ambassador Djauhari Oratmangun added that the Indonesian Embassy in Beijing and the Indonesian Consulate General in Shanghai and Guangzhou often participated in various trade exhibition activities in several cities in China. He also stressed the importance of developing the agricultural industry in line with industry 4.0 to encourage value-added agricultural production, high productivity, and environmentally friendly.
September
Trade Ministry Seek to Increase Local Content Requirement in Cooperation Project with Japan
Written by Maryati
The Indonesian Ministry of Transportation sought to increase the local content requirement (TKDN) in a transportation infrastructure project cooperation with Japan. Minister of Transportation, Budi Karya Sumadi in an online press conference amid his visit in Japan on Tuesday (7/9) said that over the last three years, Japan's investment in Indonesia has risen significantly. The Ministry also lobbied so that the local content requirement in the cooperation with Japan keeps increasing.
Minister Budi Karya further explained that in a Government-to-Government (G- to-G) meeting with the Japanese government, both countries shared a similar outlook to accelerate the Government-to-Business (G-to-B) and Business-to-Business (B-to-B) cooperation in some transportation infrastructure development projects in Indonesia.
Minister Budi added that the Japanese government supported the Patimban Seaport optimization, by inviting automotive companies and seaport operators from Japan to use the seaport by forming a consortium with Indonesia.
Regarding the MRT Jakarta development project, the Transportation Ministry asked the development to be done faster. Minister Budi Karya also pointed out that the government wants the MRT to be a monumental project that gives off a meaning for the people, and for the two countries' relations.
Then, Indonesia welcomed Japan's interest to participate in the Government-to-Business-Cooperation (KPBU) project in developing a Proving Ground in Bekasi, West Java. Currently, the project is under auction. Two companies from Japan join the auction.
Minister Budi Karya further remarked that his side explained some potentials in the seaport sector. They include Ambon Seaport development in eastern Indonesia that has the potential for fishery and cargo; the Palembang Seaport with cargo, oil, and gas potentials; Natuna Seaport that will be a fishery industry center; Gorontalo which will be collaborated with agricultural products; and a plan to integrate some seaports in Batam.
He affirmed that the Indonesian government is committed to accelerating the national transportation development infrastructure despite the Covid-19 pandemic.