Indonesia Economy Forum

[Kansel]

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[katarabhumi]

Indonesia, Japan Cooperate in Developing Electric Car
15 December 2019 16:14 WIB

Jakarta - Indonesia and Japan continue to forge cooperation in the development of automotive industry, including encouraging the accelerated development of environmentally friendly vehicles.

The strategic step will be realized through synergy between the Indonesian Industry Ministry and the Japanese Ministry of Economy, Trade and Industry (METI), Director General of Metal, Machinery, Transportation Means and Electronics Industry (ILMATE) of the Indonesian Industry Ministry Harjanto said in a written statement released on Saturday.

"They (METI) gave a picture of how to develop electric vehicle industry. We discussed the policy of developing automotive industry in the two countries, among others ," he said referring to the 2nd Indonesia-Japan Automotive Dialogue held in Bali.

At the dialogue the two sides also discussed the trend in the use of electric cars and the development lithium battery in the world.

Harjanto said the dialogue was aimed at sharing knowledge and experience about technical standardization and regulations implemented in the two countries, including the use of new and renewable energy (biofuel).

"We also got inputs from them particularly to implement the use of B30 (30 percent blended biodiesel). For instance, they gave us inputs on how to get fuel of better quality. For instance, the fatty acid methyl ester (FAME) mix still has to be processed to produce hydrogenated vegetable oil," he said.

The two sides also discussed investment and incentives in the development of electric vehicle industry. Moreover, Indonesia and Japan have long established strategic partnership in the economic field.

Japan is the largest investor in Indonesia's transportation means. with a total investment of Rp7.46 trillion until the third quarter of 2019.

In the automotive sector, Japan is also one of success stories in the eyes of investors wishing to continue to invest in the country. In fact, leading Japanese automotive manufacturers have made Indonesia their production base to meet demand from the domestic and overseas markets.

"We told them that the Indonesian government has issued Presidential Regulation No. 55 of 2019 and Government Regulation No. 73 of 2019 aimed at accelerating the development of electric vehicles," he said.

ANTARA

https://en.tempo.co/read/1283969/indonesia-japan-cooperate-in-developing-electric-car

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[Indos]

Our export and import report is not that impressive given our large size, there is still a lot of thing to be done, Jakarta still lacks of implemented CEPA and and trade concession with many friendly countries. Vietnam on other hand has secured preferrential trade agreement with US and European union, along with South korea and japan. We can trying to secured trade agreement with UE, australia, Canada, Japan, Sokor, USA first then moving to India, bangladesh, Brazillia and Nigeria.

I dont think market liberation is the answer. We have already liberated our market so far (ASEAN-China FTA) and we are still getting negative effect from it. Our trade balance with China has been 11 billion USD and it helps our trade balance starting to get deficit in 2012. We can make it positive again for several years but then suffer from 8 billion deficit in 2018. The figure is decreasing a lot this year but dont know whether it will be a trend for the following years.

I think we should focus to bring more investment for import substitution rather than liberating our market further as our businessman is not that aggressive and feel content with our own market. Those huge deficit with China should be narrowed and since it is difficult to penetrate Chinese market and our people is also not that ambitious, IMO we need to rethink again about our commitment in Asean China FTA.

 

[Nike]

I dont think market liberation is the answer. We have already liberated our market so far (ASEAN-China FTA) and we are still getting negative effect from it. Our trade balance with China has been 11 billion USD and it helps our trade balance starting to get deficit in 2012. We can make it positive again for several years but then suffer from 8 billion deficit in 2018. The figure is decreasing a lot this year but dont know whether it will be a trend for the following years.

I think we should focus to bring more investment for import substitution rather than liberating our market further as our businessman is not that aggressive and feel content with our own market. Those huge deficit with China should be narrowed and since it is difficult to penetrate Chinese market and our people is also not that ambitious, IMO we need to rethink again about our commitment in Asean China FTA.

Market liberation against countries who doesnt have strong competition against our industry should be priority, thats why i recommend ministry of foreign affairs open more diplomatic and economy channel in South America and Africa, along with Australia as Australia is actually doesnt need utility goods industry and simply imported them from China or Vietnam but with our close geography and CEPA agreement it will soon be more open to our industry goods. India and Bangladesh is too should be our priority in near future, but India hardcore protectionism is quite a hassle

 

[Nike]

Indonesia's biggest thermal power plant is operational
13 minutes ago

Jakarta (ANTARA) - Indonesia's biggest coal-based thermal power plant of the PLTU Jawa 7 Unit 1 with a total capacity of 2 X 1,000 megawatt (mw) of two stations is now officially operational. This PLTU Jawa 7 Unit 1 located in Terate Village, Serang, Banten Province, is the first coal-based thermal power plant that uses the boiler technology of Ultra Super Critical (USC), the Ministry of Energy and Mineral Resources spokesperson, Agung Pribadi, confirmed in Jakarta on Monday.

"The USC technology is projected to increase generator efficiency by 15 percent rather than non-USC while lowering the cost of fuel per kilo watt-hour. This simultaneously reduces greenhouse emissions," Pribadi noted.

Besides, this power plant is claimed to be more eco-friendly since it has Sea Water Fuel Gas Desulfurization (SWFGD), a system of coal distribution through a four-kilometer-long coal handling plant from the barge to make sure there is no scattered coal over the coal yard.

Related news: Farmers, fishermen rally to oppose thermal power plant construction

Related news: Adhi receives rp277 bln contract for thermal power construction

PLTU Jawa 7 Unit 1 has been fueled by low-rank coal which heats 4,000 to 4,600 kCal/kg, with a year’s operation needing seven tons of coal supply for its two stations for a year

Its operations will back an interconnected system in Java and Bali areas through the electric network of Suralaya-Balaraja 500 Kilo Volt.

"The power plant could support the main load of Java and Bali areas which keeps increasing every year. For example, it was 28,000 mw this year while last year it was 27,000 mw," Pribadi added.

The government is likely to urge more power plants to be operational to accelerate a 35,000 mw program.

"We are targeting two more units with the same capacity as PLTU Jawa 7 Unit 1 to be operated in 2020, to boost the economic activities," Pribadi said.

Related news: Poland invests to establish thermal power plant in East Lombok

Related news: W. Papua prepares to build thermal power plant

Translated by: Afut Syafril, Suwanti
Editor: Yuni Arisandy Sinaga


https://en.antaranews.com/news/138220/indonesias-biggest-thermal-power-plant-is-operational

 

[Indos]

Market liberation against countries who doesnt have strong competition against our industry should be priority, thats why i recommend ministry of foreign affairs open more diplomatic and economy channel in South America and Africa, along with Australia as Australia is actually doesnt need utility goods industry and simply imported them from China or Vietnam but with our close geography and CEPA agreement it will soon be more open to our industry goods. India and Bangladesh is too should be our priority in near future, but India hardcore protectionism is quite a hassle

Yup, I am agree on you. This strategy sadly is done in reverse by Indonesian. We were starting to make an FTA with China instead of with less industrialized countries or with advance countries like Australia, Britain, and others who have less competitive advantage in many labor intensive industries. We buy their advance product and they buy our less advance product, including food product. Win Win.

Large market like India is also a good choice for FTA deal with us. India maybe wants to make bilateral FTA with Indonesia. I think it will be better for both countries as India automotive will be cheaper in Indonesian market and Indonesia manufacturing goods and food will have advantage in India market. The penetration of Indian automotive also will make many automotive principal to invest in Indonesia to lower import tariff. Win Win. Thats why I prefer bilateral FTA than a regional FTA.

India trade deficit is huge, ours are peanut compared to them. This is why India is a quite protectionist in term of trade deal with other countries, particularly with China.

In term of boosting our export world wide we have some deficiency to achieve that, it will eventually grow inshaAllah but not with big pace IMO. Here is the problem, our export penetration is not quite aggressive since Indonesian diaspora are so little abroad. It is one of the reasons that why we are not an export lead economy. One thing that make China export become so huge is because the contribution of Chinese diaspora world wide that channeled Chinese businesses/industries into their home countries.

It is why making an FTA with China is a wrong thing according to my opinion, we are not going to penetrate Chinese market anyway because none in China want to import our products. We only become the supplier of raw materials and energy that just foster China industrialization further.

I prefer we start expanding our policy from banning raw material minerals into banning coal, and also scrapping ASEAN China FTA. We should rather save it for our future industrialization and make coal become more expensive world wide so that our own industry get more advantage with cheaper energy supply. It will then make Indonesia become more interesting for foreign investor to build or relocate their factory here.

If someone want to penetrate Chinese market, it is better to make their factory in Vietnam. Not only Vietnam labor cost is cheaper than us but also because of their geographic location which is much closer to China so less transportation cost. It is why the idea of somehow we are going to benefit from ASEAN China FTA is absurd.

 

[Kansel]

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[Logam42]

Market liberation against countries who doesnt have strong competition against our industry should be priority, thats why i recommend ministry of foreign affairs open more diplomatic and economy channel in South America and Africa, along with Australia as Australia is actually doesnt need utility goods industry and simply imported them from China or Vietnam but with our close geography and CEPA agreement it will soon be more open to our industry goods. India and Bangladesh is too should be our priority in near future, but India hardcore protectionism is quite a hassle

Agree with this. Africa, south asia, and maybe oceania should be our target.

Indonesia's biggest thermal power plant is operational
13 minutes ago

Jakarta (ANTARA) - Indonesia's biggest coal-based thermal power plant of the PLTU Jawa 7 Unit 1 with a total capacity of 2 X 1,000 megawatt (mw) of two stations is now officially operational. This PLTU Jawa 7 Unit 1 located in Terate Village, Serang, Banten Province, is the first coal-based thermal power plant that uses the boiler technology of Ultra Super Critical (USC), the Ministry of Energy and Mineral Resources spokesperson, Agung Pribadi, confirmed in Jakarta on Monday.

"The USC technology is projected to increase generator efficiency by 15 percent rather than non-USC while lowering the cost of fuel per kilo watt-hour. This simultaneously reduces greenhouse emissions," Pribadi noted.

Besides, this power plant is claimed to be more eco-friendly since it has Sea Water Fuel Gas Desulfurization (SWFGD), a system of coal distribution through a four-kilometer-long coal handling plant from the barge to make sure there is no scattered coal over the coal yard.

Related news: Farmers, fishermen rally to oppose thermal power plant construction

Related news: Adhi receives rp277 bln contract for thermal power construction

PLTU Jawa 7 Unit 1 has been fueled by low-rank coal which heats 4,000 to 4,600 kCal/kg, with a year’s operation needing seven tons of coal supply for its two stations for a year

Its operations will back an interconnected system in Java and Bali areas through the electric network of Suralaya-Balaraja 500 Kilo Volt.

"The power plant could support the main load of Java and Bali areas which keeps increasing every year. For example, it was 28,000 mw this year while last year it was 27,000 mw," Pribadi added.

The government is likely to urge more power plants to be operational to accelerate a 35,000 mw program.

"We are targeting two more units with the same capacity as PLTU Jawa 7 Unit 1 to be operated in 2020, to boost the economic activities," Pribadi said.

Related news: Poland invests to establish thermal power plant in East Lombok

Related news: W. Papua prepares to build thermal power plant

Translated by: Afut Syafril, Suwanti
Editor: Yuni Arisandy Sinaga


https://en.antaranews.com/news/138220/indonesias-biggest-thermal-power-plant-is-operational

Only 7 tons of coal a year? That doesn't make sense.

Yup, I am agree on you. This strategy sadly is done in reverse by Indonesian. We were starting to make an FTA with China instead of with less industrialized countries or with advance countries like Australia, Britain, and others who have less competitive advantage in many labor intensive industries. We buy their advance product and they buy our less advance product, including food product. Win Win.

Large market like India is also a good choice for FTA deal with us. India maybe wants to make bilateral FTA with Indonesia. I think it will be better for both countries as India automotive will be cheaper in Indonesian market and Indonesia manufacturing goods and food will have advantage in India market. The penetration of Indian automotive also will make many automotive principal to invest in Indonesia to lower import tariff. Win Win. Thats why I prefer bilateral FTA than a regional FTA.

India trade deficit is huge, ours are peanut compared to them. This is why India is a quite protectionist in term of trade deal with other countries, particularly with China.

In term of boosting our export world wide we have some deficiency to achieve that, it will eventually grow inshaAllah but not with big pace IMO. Here is the problem, our export penetration is not quite aggressive since Indonesian diaspora are so little abroad. It is one of the reasons that why we are not an export lead economy. One thing that make China export become so huge is because the contribution of Chinese diaspora world wide that channeled Chinese businesses/industries into their home countries.

It is why making an FTA with China is a wrong thing according to my opinion, we are not going to penetrate Chinese market anyway because none in China want to import our products. We only become the supplier of raw materials and energy that just foster China industrialization further.

I prefer we start expanding our policy from banning raw material minerals into banning coal, and also scrapping ASEAN China FTA. We should rather save it for our future industrialization and make coal become more expensive world wide so that our own industry get more advantage with cheaper energy supply. It will then make Indonesia become more interesting for foreign investor to build or relocate their factory here.

If someone want to penetrate Chinese market, it is better to make their factory in Vietnam. Not only Vietnam labor cost is cheaper than us but also because of their geographic location which is much closer to China so less transportation cost. It is why the idea of somehow we are going to benefit from ASEAN China FTA is absurd.

Entire reason we grew so fast and manage to really push down our government debt was because of the commodities boom.

China caused that.

Yes raw materials and mining goods are not as useful to the wider economy than manufacturing, but we still benefited greatly during that time. If we had no FTA with china, jokowi would not have so much financial freedom today.

 

[Indos]

Entire reason we grew so fast and manage to really push down our government debt was because of the commodities boom.

China caused that.

Yes raw materials and mining goods are not as useful to the wider economy than manufacturing, but we still benefited greatly during that time. If we had no FTA with china, jokowi would not have so much financial freedom today.

Our government debt is not decreasing in term of its real figure, the decrease is in debt to GDP ratio percentage that is merely caused by our GDP increases. GDP increase of course is helped by commodities boom but it doesnt mean it has huge contribution on the increase. We had GDP growth around 6 percent at that time and after the boom period is over we still can grow at 5 %, just merely 1 percent different. Our commodities export is also not just taken by China. Oil and gas export also contribute a lot and most of the destination is not to China.

Whether we had FTA or not with China during the commodities boom, our commodities and oil and gas will still be absorbed by International market since the demand is large. And the fact that China is the one who cause the boom is an entirely different matter and also we still can sell our commodities to China despite not signing any FTA with them since they cannot produce enough inside their country.

 

[Kansel]

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[Indos]

 

[Kansel]

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Yes its its time for payback, that ungrateful b*stard (EU) always being selfish.

 

[Indos]

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Yes its its time for payback, that ungrateful b*stard (EU) always being selfish.

The thing that is weird is that we only export 2 percent of our nickel to European countries, which merely non significant countries like Swizerland and Lithuania. Most of our nickle is exported to China. Why EU allow that small countries to dictate EU agenda and risking having trade war with Indonesia ?

There is mining companies from Europe operating in Indonesia that is also effected but if they build smelter in Indonesia it means their profit will be doubled too. The policy to stop raw material export has already been made since 2009 by parliament but government keep delaying the law to be enforced so that they have 10 years additional preparation to build smelter. It is their fault if they dont want to build smelter here and keep thinking like a colonialist to exploit our raw material and export it to their country to supply their industry while we become the market of their industry product.

 

[Indos]

Pertamina’s strategic gas project in East Java almost 50 percent complete

• Norman Harsono
  The Jakarta Post
  

Bojonegoro, East Java / Wed, December 18, 2019 / 05:05 pm

Workers erect a drill rig to bore one of six wells in the Jembaran Tiung Biru gas field in the Cepu Block, East Java in October. The field's operator, Pertamina EP Cepu, expects to the field to begin commercial operations in July 2021. (Pertamina/Pertamina)

The development of the Jambaran Tiung Biru gas project in the Cepu Block, East Java, was 47.3 percent complete as of November, the project’s operator, Pertamina EP Cepu (PEPC), said.

Pertamina's subsidiary has acquired the needed land and built access roads. All that remains is to finish drilling six gas wells and constructing a gas processing facility, which was 43.5 percent complete as of last month.

“We expect commercial operations to begin in July 2021,” said PEPC president director Jamsaton Nababan while in East Java on Tuesday.

He said the company invested $331 million to develop the field this year and had plans to invest $591 million next year, mostly for drilling and construction.

PEPC currently expects the $1.6 billion project, financed by four domestic banks and eight international lenders, to produce 192 million standard cubic feet per day (mmscfd) of gas, up 11.6 percent from earlier estimates. Most of the gas (100 mmscfd) is slated for electricity generation, while the remainder would be for manufacturing industries in Central and East Java.

The Jambaran project was added into the national strategic projects list in 2016, as stipulated under Presidential Decree No. 3/2016, which authorizes public officials to revise rules deemed to hamper project development.

https://www.thejakartapost.com/news...-in-east-java-almost-50-percent-complete.html

 

[Nike]

Indonesia interested in establishing trade agreement with Tanzania
18th Dec 2019 20:51

Jakarta (ANTARA) - The Indonesian government has expressed interest in establishing a Preferential Trade Agreement (PTA) with Tanzania to increase the two countries' bilateral trade. The PTA would reduce barriers to tariff trade so that it was expected to encourage trade between the two countries, the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, said in a written statement in Jakarta Wednesday.

"If possible, Indonesia would like to propose to establish a bilateral PTA with Tanzania. I also note that Tanzania is a member of the East African Community (EAC)," he said during his working visit to Tanzania, East Africa, Tuesday, December 17.

During the visit, Luhut met with Tanzania's Minister of Public Works, Transportation and Communication Isack Mawelwe.

Related news: Indonesia to help Tanzania become middle-income country

There is still plenty of room to increase cooperation in trade between Indonesia and Tanzania, he revealed.

"Indonesia has 270 million people, so it is a big market for Tanzania if you want to invest," Luhut said.

Since 2017, Indonesia has proposed to make a Preferential Trade Agreement (PTA) between Indonesia and EAC.

Tanzania's support will be very meaningful, especially while assigning each official to hold a preliminary discussion on this issue.

This working visit also resulted in an agreement on a follow-up dialogue between Tanzania and Indonesia in February 2020 to strengthen cooperation in the economic field.

Trade between Indonesia and Tanzania recorded a positive trend with 11 percent growth between 2014 and 2018. However, there was a 22 percent decline in the January to September 2019 period year-on-year. (INE)

Translated by: Ade Irma, Azis Kurmala
Editor: Rahmad Nasution

https://en.antaranews.com/news/1383...in-establishing-trade-agreement-with-tanzania