Indonesia Economy Forum

[Indos]

Good News for our currency strength in this crucial time.

Indonesian exports, imports contract slightly in ‘encouraging’ sign: BPS

• Adrian Wail Akhlas
  The Jakarta Post

Jakarta / Wed, April 15, 2020 / 02:36 pm

The loading and unloading facilities at the Jakarta International Container Terminal (JICT) in Tanjung Priok, North Jakarta. (Antara/Dhemas Reviyanto)

Indonesia booked a US$743 million trade surplus in March as export and import activities contracted slightly amid the COVID-19 pandemic, Statistics Indonesia (BPS) has announced.

Southeast Asia’s largest economy recorded $14.09 billion in exports in March, a 0.2 percent decrease year-on-year (yoy), while total imports fell 0.75 percent yoy to $13.35 billion driven by decreased imports of capital goods.

“This figure is encouraging amid the uncertain global situation,” BPS chairman Suhariyanto said at a media briefing on Wednesday.


Indonesia's manufacturing exports grew by 7.41 percent yoy to $11.12 billion, driven by a significant increase in the exports of machines and electric appliances, as well as of iron and steel. Agricultural exports rose 17.82 percent yoy to $320 million.

However, the country’s oil and gas exports declined by 40.91 percent yoy to $670 million as a result of falling oil prices, while exports of products of mining also fell by 16 percent yoy to $1.98 billion.

Imports of consumption goods rose 10.66 percent to $1.27 billion as a result of Indonesia’s recent, huge purchase of guns and ammunition. Imports of raw materials increased by 1.72 percent to $10.28 billion, while imports of capital goods shrank by 18 percent to $1.8 billion.

“We must, however, be aware of the decline in capital goods and raw materials, which may have a huge impact on trade and investment,” Suhariyanto added.

In the first quarter of the year, the country booked a total of $41.79 billion in exports, a 2.91 percent increase from last year’s figure, while imports were $39.17 billion from January to March, a 2.69 percent decrease from the same period last year.

Indonesia recorded a trade surplus of $2.62 billion during the first three months of the year, compared to a deficit of 62.8 million in the same period last year.

BPS recorded $2.98 billion in imports from China in March, an increase of $1 billion from February’s figure, as Indonesia’s largest trading partner had started to recover from the COVID-19 pandemic.

Exports to China, meanwhile, were $1.98 billion, up by $7 million compared to the same period last year. This made for a trade deficit of $1 billion with China in March, lower than the $1.24 billion deficit in March of last year.

The World Trade Organization (WTO) projected that global trade would shrink by between 13 and 32 percent as the economic impact of the health crisis remained uncertain.

The WTO forecasted a rebound in the 2021 global goods trade of between 21 and 24 percent, depending largely on the duration of the outbreak and the effectiveness of policy responses.


If you want to help in the fight against COVID-19, we have compiled an up-to-date list of community initiatives designed to aid medical workers and low-income people in this article. Link: [UPDATED] Anti-COVID-19 initiatives: Helping Indonesia fight the outbreak

 

[Indos]

Trans Sumatra High Way

Lampung-Palembang have been connected with High Way (Toll road)

 

[Indos]

Rupiah is still strengthening in the end of trading for this week. It means Rupiah has been in strengthening mode in the last two consecutive weeks. Stock Market is also performing better at this Friday and close in positive territory. AlhamduliLLAH.

Look like we will keep doing partial lock down in Jakarta and its surrounding cities until Idul Fitri comes to curb the infection rate. I think we just need to buy times until effective drugs are, inshaAllah, found. Some relaxing measure for Jakarta and its surrounding cities IMO can be done for a week to let business activity going if our death rate is still mild until next week.

 

[Indos]

Good Move by Central Bank.

BI requires banks to buy govt bonds using $6.5b in excess liquidity

• Adrian Wail Akhlas
  The Jakarta Post
  

Jakarta / Fri, April 17, 2020 / 07:15 pm
Bank Indonesia Governor Perry Warjiyo

Bank Indonesia (BI) is requiring banks to buy government bonds after cutting banks’ reserve ratio further, providing the financial system with Rp 102 trillion (US$6.54 billion) in liquidity in a move that is expected to help the state fund the coronavirus battle.

BI Governor Perry Warjiyo said a recent central bank regulation to cut the rupiah reserve requirement ratio should be used by banks to buy new government bonds.

“This policy will fulfill three purposes simultaneously, including BI’s need to inject liquidity, while at the same time obliging banks to improve liquidity management by buying government bonds,” Perry told reporters. “This will help the government to finance the budget deficit.”


The government projects Indonesia’s state budget deficit to reach 5.07 percent this year, with an additional budget of Rp 405.1 trillion to be allocated for medical spending, the social safety net and business rescue packages.

BI decided on April 14 to lower the rupiah reserve requirement ratio by 200 basis points (bps) for conventional banks and 50 bps for sharia banks starting May 1. BI will also revoke the banks’ obligation to fulfill the intermediary macroprudential ratio (RIM). Both measures will boost bank liquidity by up to Rp 117.8 trillion.

“BI’s quantitative easing measures will boost liquidity by nearly Rp 420 trillion,” Perry said, citing the Rp 300 trillion in funds the central bank is injecting into financial markets and banks to mitigate the effects of COVID-19, including foreign investors’ selloff of Indonesian assets.

Perry said that, by requiring banks to buy new government debt papers, “this will reduce pressures to the bonds issuance”.

The government has nearly tripled its borrowing this year to Rp 1 quadrillion to finance the fight against COVID-19 through Presidential Regulation (Perpres) No. 54/2020 on the 2020 state budget revision, issued on April 3.

The government plans to offer sovereign debt papers worth Rp 549.6 trillion, an increase from the initial Rp 389.3 trillion, while also planning to raise Rp 450 trillion in “pandemic bonds”, given that demand for government bonds has significantly declined.

Under the new Perpres, the government allows the central bank to buy government debt papers directly during auction. The previous law only allowed BI to buy bonds in the secondary market.

Perry said BI would be prepared to buy government bonds in the primary market in two weeks, adding that it would buy bonds only as a last resort if the market could not fully absorb the bonds issuance.

“BI and the government are currently smoothing out the technicalities for the policy,” Perry said.

https://www.thejakartapost.com/news...ovt-bonds-using-6-5b-in-excess-liquidity.html

 

[Indos]

'No choice but to keep economy running': Ministry allows 11,000 companies operate during PSBB

• Mardika Parama
  The Jakarta Post

Jakarta / Wed, April 22, 2020 / 02:51 pm



The Industry Ministry has issued 11,172 operational and mobility permits (IOMKI) for companies nationwide that wish to operate during the government’s large-scale social restrictions (PSBB) amid the COVID-19 pandemic, Minister Agus Gumiwang Kartasasmita has said.

The chemical, pharmaceutical and textile industries account for the largest number of permits received, namely for 4,383 companies, followed by the metal, machinery, transportation and electronic industries with 3,518 companies, the ministry’s data show.

“The manufacturing sector is the largest contributor to Indonesia’s economy with a 19 percent share. There is no choice but to keep the economic engine running,” Agus said during an online press briefing on Tuesday.


The Health Ministry's large-scale social distancing (PSBB) regulation requires that all workplaces, except those in essential sectors such as the finance, fuel, food, medicine, retail, water, communications and logistics, be closed and implement work-from-home policies.

Read also: Indonesia to evaluate partial lockdown as companies, factories continue business as usual

However, the regulation also stipulates that manufacturing factories could continue their operation if they receive a license from Industrial Ministry and strictly implement health protocols.

“The company’s management must obey health protocols that are stipulated [under Industry Minister Letter No. 4/2020], which includes temperature checks and the provision of supplements and healthy meals for their workers. Employees must also keep a 1-meter distance between each other at all times,” Agus said.

He said the ministry and local administration would take strong measures against companies that did not adhere to the health protocol, including shutting down operations and revoking IOMKI permits.

“We have sent a letter to the governors, mayors and regents that authorizes local authorities to warn, supervise and even shut the companies down if the factories are found to have breached the health protocols,” he said.

He added that the ministry would not limit the number of companies and types of industries that wished to apply for the IOMKI permit.

Companies could apply for the permit by filling in a form on the National Industrial Information System (SIInas) online portal. Agus claimed that the permit could be issued within an hour of receiving the request.

Read also: ‘It’s too late’: Lawmakers criticize timing of Jokowi’s ‘mudik’ ban

During a limited Cabinet meeting on Monday, President Joko “Jokowi” Widodo said the government would evaluate the implementation of PSBB, as many nonessential workplaces were ignoring the policies and requiring their workers to come in for work.

National COVID-19 task force head Doni Monardo said that, according to his agency’s observation, the policy was effective to a degree but there were still companies neglecting the distancing rules.

“The policy has not been effective with regards to activities in offices and factories, leading to packed public transportation services,” he said after the meeting with Jokowi.

https://www.thejakartapost.com/news/2020/04/22/no-choice-but-to-keep-economy-
running-ministry-allows-11000-companies-operate-during-psbb.html

@UKBengali bro, do you apply similar measure during lock down ?

@Bungaterakhir Are you OK sis ? Not seen any of your post lately.

 

[UKBengali]

'No choice but to keep economy running': Ministry allows 11,000 companies operate during PSBB

• Mardika Parama
  The Jakarta Post

Jakarta / Wed, April 22, 2020 / 02:51 pm



The Industry Ministry has issued 11,172 operational and mobility permits (IOMKI) for companies nationwide that wish to operate during the government’s large-scale social restrictions (PSBB) amid the COVID-19 pandemic, Minister Agus Gumiwang Kartasasmita has said.

The chemical, pharmaceutical and textile industries account for the largest number of permits received, namely for 4,383 companies, followed by the metal, machinery, transportation and electronic industries with 3,518 companies, the ministry’s data show.

“The manufacturing sector is the largest contributor to Indonesia’s economy with a 19 percent share. There is no choice but to keep the economic engine running,” Agus said during an online press briefing on Tuesday.


The Health Ministry's large-scale social distancing (PSBB) regulation requires that all workplaces, except those in essential sectors such as the finance, fuel, food, medicine, retail, water, communications and logistics, be closed and implement work-from-home policies.

Read also: Indonesia to evaluate partial lockdown as companies, factories continue business as usual

However, the regulation also stipulates that manufacturing factories could continue their operation if they receive a license from Industrial Ministry and strictly implement health protocols.

“The company’s management must obey health protocols that are stipulated [under Industry Minister Letter No. 4/2020], which includes temperature checks and the provision of supplements and healthy meals for their workers. Employees must also keep a 1-meter distance between each other at all times,” Agus said.

He said the ministry and local administration would take strong measures against companies that did not adhere to the health protocol, including shutting down operations and revoking IOMKI permits.

“We have sent a letter to the governors, mayors and regents that authorizes local authorities to warn, supervise and even shut the companies down if the factories are found to have breached the health protocols,” he said.

He added that the ministry would not limit the number of companies and types of industries that wished to apply for the IOMKI permit.

Companies could apply for the permit by filling in a form on the National Industrial Information System (SIInas) online portal. Agus claimed that the permit could be issued within an hour of receiving the request.

Read also: ‘It’s too late’: Lawmakers criticize timing of Jokowi’s ‘mudik’ ban

During a limited Cabinet meeting on Monday, President Joko “Jokowi” Widodo said the government would evaluate the implementation of PSBB, as many nonessential workplaces were ignoring the policies and requiring their workers to come in for work.

National COVID-19 task force head Doni Monardo said that, according to his agency’s observation, the policy was effective to a degree but there were still companies neglecting the distancing rules.

“The policy has not been effective with regards to activities in offices and factories, leading to packed public transportation services,” he said after the meeting with Jokowi.

https://www.thejakartapost.com/news/2020/04/22/no-choice-but-to-keep-economy-
running-ministry-allows-11000-companies-operate-during-psbb.html

@UKBengali bro, do you apply similar measure during lock down ?

@Bungaterakhir Are you OK sis ? Not seen any of your post lately.

BD's Prime Minister Hasina is thinking of allowing some businesses like garments to open in the first week of May but with strict social distancing measures in place. As an example, the garment factories will have a workforce of roughly half and provisions must be made by the factory owners for safe accommodation for the workers.

No country can afford to stay in "lockdown" for more than a few months and so staged reopening of the economy with stringent safeguards hopefully should be fine. If the rate of infection takes off then the measures can be reintroduced.

 

[Kansel]

Great news!

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[Indos]

Indonesia Has Enough Rice to Last Pandemic: Bulog
BY :TARA MARCHELIN

APRIL 20, 2020

Jakarta. The head of the Indonesian Bureau of Logistics, or Bulog, Budi Waseso, said on Monday that Indonesia has enough supply of rice to last during the coronavirus pandemic. As of April 17, Bulog still has 1.41 million tons of rice in its warehouses across the country.

"We have 1.35 million tons in government warehouses and 56,000 tons for commercial purposes. It should be enough to last during the pandemic," Budi said during a teleconference with the House of Representatives' Commission VI.

To maintain the rice supply and keep prices stable, Budi said the bureau plans to obtain 950,000 more tons of rice in 2020, around 69 percent of which will be bought directly from farmers throughout April–June.

"Dozens of regions all over the country will have their rice harvest season in April, May and June. We've set a target to buy 950,000 more tons [of rice], but we'll likely buy more, as much as we possibly could, since a prolonged pandemic might cause food scarcity," he said.

Bulog has also been buying more sago from farmers in the eastern parts of Indonesia. Budi said sago could be a substitute for rice in case supply of the latter becomes scarce.

The bureau has also been trying to keep enough sugar in reserve during the pandemic. According to Budi, as of April 17, Bulog still has a total of 9,674.81 tons of sugar in its warehouses.

Bulog has also bought 15,000 extra tons of sugar from Sugar Group Companies and proposed more raw sugar import to the government through its subsidiary Gendhis Multi Manis (GMM).

"The raw sugar import will be done in two phases. A total of 29,750 tons of raw sugar arrived in early April for the first phase. The tender process for the second phase of import has now been completed and 35,000 more tons of raw sugar should arrive here in early May," Budi said.

Bulog is also in the process of importing 50,000 tons of crystal sugar, 21,800 tons of which will arrive by the end of April. The rest will arrive by the end of May.

Budi said the bureau also has in its reserve a total of 97.41 tons of buffalo meat. Bulog was going to import 5,000 more tons of buffalo meat from India, but the country's strict lockdown policy has stopped the import for the time being.

"We were supposed to be importing buffalo meat from India from March to May, but it's been delayed by the lockdown in India until May 3. However, we've already obtained an import permit for 100,000 tons of buffalo meat," he said.

Bulog also has 1.1 million kiloliters of cooking oil, 644 tons of flour, 29.69 tons of garlic, 79.73 tons of eggs and 0.20 tons of shallots in its warehouses as part of its pandemic reserve.

https://jakartaglobe.id/news/indonesia-has-enough-rice-to-last-pandemic-bulog

InshaAllah

 

[Kansel]

Dahana Ekspor 20 Kontainer Bahan Peledak ke Australia
Oleh Arthur Gideon pada 23 Apr 2020, 14:30 WIB

Liputan6.com, Jakarta Usai sukses dalam dua kali pengiriman sebelumnya, perusahaan bahan peledak dalam negeri, PT Dahana (Persero) kembali mengirim produk bahan peledak ke perusahaan asal Negeri Kanguru Johnex Explosives Australia pada 23 April 2020.

BACA JUGA :

4 Platform Digital Siap Bergabung di Program Kartu Prakerja

Sebanyak 215 Ton Megadrive Cartridge Emulsion 32mm x 700mm dalam 20 kontainer diberangkatkan dari Kawasan Energetic Material Center (EMC) Dahana, Subang pada Kamis, 23 April 2020.

Pengiriman menggunakan truck trailer menuju pelabuhan Tanjung Priok Jakarta yang selanjutnya dikirim ke Australia dengan kapal. Setelah tiba di Pelabuhan tujuan, produk Dahana tersebut akan didistribusikan langsung ke gudang-gudang end user Johnex Explosives di Australia.

Direktur Operasi Dahana Bambang Agung menyebutkan, ekspor ini merupakan salah satu upaya perusahaan untuk terus mempertahankan kinerja positif perusahaan di tengah hantaman pandemi Covid-19 secara global.

“Alhamdulillah dalam kondisi pandemi covid-19 ini Dahana masih membuktikan untuk tetap eksis melaksanakan proses ekspor bahan peledak ke salah satu konsumen kita di Australia (Johnex). Ini membuktikan bahwa Dahana mampu menjawab kepercayaan yang diberikan konsumen di luar negeri dengan komitmen dan konsisten,” tutur Bambang Agung dalam keterangan tertulis, Kamis (23/4/2020).

Meski kondisi bisnis sedang lesu akibat pandemi covid-19, keberlanjutan ekspor bahan peledak ke Australia juga membuktikan bahwa industri bahan peledak dalam negeri mampu bersaing di pentas global.

Kualitas dan dan kemampuan Dahana akan semakin teruji untuk melakukan lompatan-lompatan bisnis dan akhirnya dapat diperhitungkan oleh pasar lebih luas, tak terbatas pada pasar Australia.

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Prosedur Ketat

PT Dahana (Persero) mengirim produk bahan peledak ke perusahaan asal Negeri Kanguru Johnex Explosives Australia pada 23 April 2020. (Dok Dahana)
Cargo ekspor Johnex ini sebelumnya telah melewati prosedur ketat. Hal ini disampaikan oleh Senior Manager Operasi Divisi Tambang Umum 2 PT Dahana (Persero) Dadan Munawar. Menurutnya, beberapa tahapan pengiriman ini meliputi pembuatan bahan peledak di pabrik, pengecekan quality control langsung oleh pihak Johnex Explosives, fumigasi dan Cleaning kontainer kargo, dan memberlakukan Protokol Pencegahan Covid-19 yang diterapkan Dahana kepada seluruh personil pihak angkutan yang akan mengangkut bahan peledak di dalam gudang Dahana, serta pengiriman sesuai standard requirement Australian Inspector.

“Selain itu sebagai salah satu syarat utama dalam pengiriman cargo sesuai standar australia juga, semua kontainer cargo Johnex ini sebelumnya sudah dilakukan proses fumigasi oleh fumigator yang sudah terstandarisasi dan diakui sertifikasinya oleh pihak otoritas di Australia. Sertifikasi fumigasi ini adalah syarat utama saat dilakukan pemeriksaan oleh pihak cargo inspector saat tiba di pelabuhan Australia, seperti diketahui bersama Australia memiliki standard yang tinggi dalam proses pengiriman ekspor-impor,” ujar Dadan Munawar.

Shipment ekspor ketiga ini dipercaya Dadan akan meningkatkan kerjasama dan kepercayaan antara Dahana dan pihak Johnex Australia, baik untuk suplai bahan peledak ke Australia, ataupun kemungkinan kerjasama services di underground blasting ke depannya yang sedang dijajaki oleh Dahana saat ini.



3 dari 3 halaman
BUMN

PT Dahana (Persero) mengirim produk bahan peledak ke perusahaan asal Negeri Kanguru Johnex Explosives Australia pada 23 April 2020. (Dok Dahana)
Sebagaimana diketahui, PT Dahana (Persero) merupakan BUMN yang bergerak di bidang bahan peledak untuk sektor pertambangan umum, kuari dan konstruksi, minyak dan gas serta pertahanan.

Produk-produk bahan peledaknya selain digunakan secara domestik juga telah diekspor ke mancanegara. Untuk ekspor bahan peledak ke Australia sendiri telah dimulai sejak Maret 2019 dengan 37,5 ton dalam 3 kontainer.

Ekspor kedua ke Australia dilaksanakan pada September 2019 dengan jumlah 86 Ton dalam 8 kontainer. Dan Ekspor ketiga ke Australia hari ini dengan jumlah 215 Ton dalam 20 kontainer.

https://m.liputan6.com/bisnis/read/...ile&utm_medium=copylink&utm_campaign=copylink

 

[Kansel]

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[Indos]

KoinWorks Closes Deal on $20m Funding Round Amid Covid-19 Pandemic
BY :JAKARTAGLOBE

APRIL 14, 2020

KoinWorks boasts of catering to around 400,000 individual and small-medium enterprise users on its platform. (Photo courtesy of KoinWorks)

Jakarta. Lunaria Annua Teknologi, the company behind one of Indonesia's largest peer-to-peer lending company KoinWorks, has secured a total of $20 million in new debt and equity capital to strengthen support for lenders and borrowers in the country during the coronavirus pandemic, the company announced on Monday.

KoinWorks' first convertible note has secured backing from the company's existing investors, which include Quona Capital, Sinar Mas-backed EV Growth and Saison Capital.

"As an institution with the protection of our lenders' capital at our core, being well-capitalized is always a top priority," Willy Arifin, KoinWorks's executive chairman and co-founder, said in a statement on Monday.

"KoinWorks continues to stand together with many major financial institutions and hundreds of thousands of retail lenders to support digital SMEs during the Covid-19 pandemic," Willy said.

The company boasts of catering to around 400,000 individual and small-medium enterprise users on its platform.

Before the pandemic began, it had expected to increase loan disbursement on the platform to Rp 3 trillion ($192 billion) per month this year from Rp 650 million per month last year.

Aside from the convertible note, KoinWorks has also struck a deal with Dutch lender Triodos Bank for new credit facilities.

Under the agreement, Triodos Bank would underwrite loans disbursed on the KoinWorks platform.

"These investments, especially during these turbulent times, show tremendous confidence in our abilities as best-in-class loan originators in the fintech space in Indonesia," Benedicto Haryono, KoinWorks's chief executive officer, said in the statement.

"We are very pleased to have new and internationally respected multiple institutions joining the existing investors behind us as we move forward," Benedicto said.

The chief executive officer said KoinWorks was confident in combining digital data and traditional, proven banking techniques to maintain its lending quality during the pandemic.

The platform reported less than 1 percent bad loans, far below the average of 2.5 percent among conventional banks in Indonesia.

"We feel confident we can support Indonesia as it makes its way through an economy transformed by Covid-19," Benedicto said.

KoinWorks was also part of Indonesia Pasti Bisa, a fundraising program initiated by Jakarta-based venture capital firm East Venture to produce 100,000 Covid-19 testing kits and support genetic research to make vaccine for the disease.

https://jakartaglobe.id/business/koinworks-closes-deal-on-20m-funding-round-amid-covid19-pandemic

 

[Indos]

Rupiah strengthens to below Rp 15,000 per US dollar for first time since mid-March

• Adrian Wail Akhlas
  The Jakarta Post

Jakarta / Thu, April 30, 2020 / 06:52 pm

US dollar banknotes are arranged at a money changer in Jakarta on March 19. (Antara/Indrianto Eko Suwarso)

The rupiah has reached its strongest level since mid-March, appreciating nearly 3 percent on Thursday against the United States dollar amid hopes that a vaccine for COVID-19 is developed and central banks’ pledges to hold interest rates to support battered economies.

Indonesia’s currency stood at Rp 14,881, appreciating 2.7 percent against the greenback at 4:46 p.m. Jakarta time to emerge from this year’s low of Rp 16,625 amid global recession risks. The rupiah once depreciated by as much as 18 percent this year before appreciating to the current level.

Bank Indonesia’s (BI) Jakarta Interbank Spot Dollar Rate (JISDOR) showed the currency strengthening to Rp 15,157 per dollar from Rp 15,415 on Wednesday.


“We decided to hold [the interest rate] in the near term to prioritize maintaining the currency level,” BI Governor Perry Warjiyo told the House of Representatives Commission XI overseeing financial affairs on Thursday. “We are confident that the rupiah will further strengthen.”

The central bank decided to hold its benchmark interest rate this month at 4.5 percent after a 50 basis points (bps) cut in total in February and March.

“The rupiah appreciation is related to the US Federal Reserve’s policy on Wednesday to hold its interest rate at the zero percent to 0.25 percent range,” Bank Permata economist Josua Pardede told The Jakarta Post on Thursday. “In addition, biotechnology company Gilead said the development of its proposed COVID-19 vaccine was running well and that the drug was proven to cure at least 50 percent of the patients [who tested it].”

A top US infectious diseases official said Gilead Sciences’ experimental antiviral drug remdesivir would become the standard of care for COVID-19 after early clinical trials showed it helped patients recover more quickly from the illness, Reuters reported on Wednesday.

On the same day, Fed officials said in a unanimous statement that it “will use its tools and act as appropriate to support the economy” and pledged to keep the interest rate near zero until the US economy returns to normal.

Perry said further appreciation of the rupiah would be supported by this year’s lower current account deficit (CAD). The central bank expects the first quarter CAD to be below 1.5 percent and stay below 2 percent throughout the year, down from BI’s earlier projection of 2.5 to 3 percent.

Furthermore, a yield differential in government debt papers between Indonesia and other countries was still attractive for foreign investors, Perry said.

“This will attract capital inflow into Indonesia,” he added.

By early May, BI will have injected a total of Rp 503.8 trillion in additional liquidity into the financial system to help cushion the economic impact of the pandemic and strengthen the rupiah as part of its quantitative easing measures. This includes BI’s bond buying worth Rp 166.2 trillion from foreign investors in the secondary market.

The Jakarta Composite Index (JCI) jumped Thursday by 3.26 percent, led by blue chip stocks such as those of state-owned Bank Mandiri, energy company PT Medco Energi and state-owned toll operator PT Jasa Marga. Foreign investors bought around Rp 431 billion (US$28.7 million) worth of stocks more than they sold.

As of April 23, however, foreign investors had sold Rp 159.6 trillion worth of Indonesian assets including bonds, stocks and BI certificates, according to Finance Ministry data.

The government had successfully raised Rp 221.4 trillion from government bonds by the end of March. This is in addition to a $4.3 billion dollar-denominated bond sales in the US and Rp 11.38 trillion in bond sales at a greenshoe option bond auction on Wednesday, among other debt papers.

It would sell Rp 856.8 trillion worth of bonds in the second quarter through to the end of the year to cover its widening budget deficit, Finance Minister Sri Mulyani Indrawati said.

The country’s financial markets have started to recover since a slump in March as foreign investors sold Indonesian assets over fears of COVID-19.


If you want to help in the fight against COVID-19, we have compiled an up-to-date list of community initiatives designed to aid medical workers and low-income people in this article. Link: [UPDATED] Anti-COVID-19 initiatives: Helping Indonesia fight the outbreak

https://www.thejakartapost.com/news/2020/04/30/rupiah-strengthens-to-below-rp-15000-per-us-dollar-for-first-time-since-mid-march.html jakarta post

 

[Indos]

FDI Drops in Q1, But No Project Cancellations From Pandemic Just Yet
BY :TRIYAN PANGASTUTI

APRIL 21, 2020

Jakarta. Foreign direct investment in Indonesia fell in the first quarter of this year, forcing the government to consider the possibility of missing its investment targets this year as projects are delayed by the coronavirus crisis, the government's top investment official said on Monday.

Foreign investors brought in only Rp 98 trillion ($6.3 billion) in investment from January to March, down 9.2 percent from Rp 108 trillion in the same period last year.

Domestic investors, on the other hand, forked out Rp 113 trillion in the same period, up 29 percent on an annual basis.

While none of the investors has canceled their investment, the Investment Coordinating Board (BKPM) expects investment realization to drop by 7.8 percent to Rp 817 trillion from its initial target of Rp 886 trillion if the pandemic continues beyond May.

"Investment in the second quarter will drop because the situation in April–May will be challenging," BKPM Head Bahlil Lahadalia said on Monday.

Greater Jakarta, which accounts for a lion's share of the country's economy, has implemented large-scale social restriction (PSBB) for almost two weeks.

Under the restriction, the provincial government forbids companies in non-essential sectors from opening up shops and ordered their workers to work from home.

Indonesia has also closed its borders to most foreigners, barring key workers in foreign investment projects from entering the country.

"If the pandemic continues beyond May, we have to be realistic and make corrections on our Rp 817 trillion investment realization target," Bahlil said.

The largest economy in Southeast Asia booked foreign and domestic investments of around Rp 810 trillion last year, data from the BKPM showed.

Foreign direct investment was at $28 billion last year, down 3.7 percent from $29 billion in 2018.

The BKPM figure excludes investments in oil and gas, finance and banking sectors.

Still, Bahlil said so far no foreign investors has backed off from their investment commitment in Indonesia.

"We've video called them one by one. No one has canceled their investments in Indonesia. But there have been some slight project delays," Bahlil said.

For example, the groundbreaking $2.8 billion Tanjung Jati A power plant in West Java, backed by Bakrie Power and Malaysian YTL Corporation, has had to be postponed by two months to May, Bahlil said.

Bahlil said the BKPM would continue to work with local governments to find a way to allow investment projects – especially in the mining, infrastructure and plantation sectors – to continue running under strict social restrictions.

"The projects could continue by observing the PSBB restrictions, such as wearing masks at all times for the workers," Bahlil said.

https://jakartaglobe.id/business/fdi-drops-in-q1-but-no-project-cancellations-from-pandemic-just-yet

 

[Indos]

@UKBengali

Bro, I will try to give an answer about the question you have asked in other thread that now has been locked by Mod.

I think we will stop sending maid after we reach the year 2034 where Indonesia nominal GDP is projected to reach 3.2 trillion USD by many foreign institution. I can say think like that because I have witnessed that this matter is not something that is considered as important for our general public and elites. I can see it through the last 20 years of our democratic period. This issue has never been raised by either media or our respected civil society leaders during every campaign period.

Our policy so far is still focused on how we can give welfare to our people and improve our economic growth. There is no ambitious plan made by our leaders so far that is mean to propel Indonesia into a respected position in world stage. If there is any, they dont have full financial support. Except for N 250 and N 2130 aircraft program during Soeharto regime. Habibie actually has good plan but IMO still not get enough support although his legacy in building our 13 strategic state owned companies is crucial for our high tech industry future. Too bad his administration (1998-1999) suffered badly from Asian Financial Crisis and only run for less than 2 years that make him can not realize his plan for our high tech industry development.

This can also be seen on how research is not seen as something important by seeing on how small our research budget compared to state spending. It is quite ridiculous since our research agency like LAPAN itself has said they lack of researcher due to budgetary issue, and this problem arise in the condition where the salary of our researcher is no different with other civil servant working for administration job. My cousin is one of the researcher so I know the problem quite well. How can we even have many good university graduate who want to be researchers if they dont get paid enough.

We can see also how late is SBY administration in funding our N 219 aircraft project where the program is started in 2004 but the funding to make a prototype is only available in 2014. Current government also doesnt provide money for our state aerospace company plan to make modern factory for its N 219 program. Neither it give some money for N 245 plane project although it is just merely 200 million USD and even try to reduce its financial contribution in KFX/IFX program that can jeopardize our current and future strategic defense cooperation with South Korea.

For Indonesian members here, dont get fooled with big budget for Research Ministry since 90 percent of it is actually mean for high education spending, not research. As high education is once again put inside Education Ministry, so it is why 90 percent of Research Ministry budget is gone now (Jokowi second term).

But Jokowi doesnt seems to stingy when it comes to spending huge money for infrastructure, village development, new capital, and later unemployment benefit. This Covid 19 outbreak also has made his administration wipe out almost all research budget which is actually very small and keep the infrastructure and unemployment budget relatively untouch. He can actually use just 3-4 percent of the budget on those programs for our research. It is not huge by the way, so I think there is some problem within our leadership in term of their strategic planning. I am also pretty sure that our finance minister like Sri Mulyani doesnt deserve to be our next Presidential candidate since I believe she has some contribution to make such foolish policy. It is a fair judgement from Jokowi two times voter like me.

So in term of stopping to export maid oversea, just wait until 2034 where our economy is projected by foreign institutions to tripled into 3.2 trillion USD inshaAllah. At that period of time I can say the possibility it is become a big issue in our election is quite high.

 

[UKBengali]

@Indos - What you are saying is that it looks like as Indonesia develops to a high enough level, then maids will simply not be attracted enough to go overseas as salaries in Indonesia by then will not be much lower anyway and they get to stay in their home countries with their families.

As regards the cut in funding for R&D, that is a massive mistake as the money invested now will pay massive dividends down the line.

I do not know whether Jokowi's lack of interest may be due to his education but I think the best kind of leader is one that is educated in a technical field.