jamahir
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Yes, that and she should not use that suit and instead wear a frock or a shirt.
Indonesia Economy Forum
- Thread starter Pirupiru
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Yes, that and she should not use that suit and instead wear a frock or a shirt.
Indos
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With this Covid 19 outbreak, I hope my country can still reach 3,2 trillion USD nominal GDP in 2034. Insha Allah.
Vietnamese economy will likely make them a middle power in ASEAN in 2034 if the projection is true.
Vietnamese economy will likely make them a middle power in ASEAN in 2034 if the projection is true.
Indos
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Indonesia park to spearhead bid to lure China supply chains
Workers sew personal protective equipment (PPE) at a PT Kasih Karunia Sejati factory in Malang, East Java, on April 20. Indonesia plans to build one of its largest industrial parks on the north coast of Java island in a renewed drive to attract manufacturers relocating out of China as Southeast Asia’s biggest economy comes out of a coronavirus-induced lockdown. (JP/ Aman Rochman)
Indonesia plans to build one of its largest industrial parks on the north coast of Java island in a renewed drive to attract manufacturers relocating out of China as Southeast Asia’s biggest economy comes out of a coronavirus-induced lockdown.
Yet, despite its low wages and huge domestic market Indonesia must overcome decades-old hurdles including red tape, rigid labour laws, and poor infrastructure to be able to move up the global manufacturing value chain.
This time, in its quest to emulate rivals such as Vietnam, the government has shown serious intent in bringing about change and is aiming to pass an ambitious ‘omnibus’ bill later this year to address some of the pressing foreign investor concerns.
At the same time it is pushing ahead with plans for a 4,000- hectare (9,884-acre) industrial park, an area equivalent to more than 5,000 football fields, in Brebes, Central Java - mainly targeting supply chains relocating out of China.
“This is a pilot project for Indonesia on how we can attract global investors heading out of China,” said Ahmad Fauzie Nur, chief operating officer of PT Kawasan Industri Wijayakusuma, the state company due to operate the park.
In a bid to avoid problems securing land, the government would use a law to acquire land cheaply and ensure low rents at the park, said Fauzie Nur.
Taiwan’s Foxconn Technology Group had reportedly been interested in building a factory in Indonesia in 2014 but scrapped plans due to land issues.
The proposed park is located 270 km (168 miles) east of Jakarta in an area dotted with fish and shrimp farms and already has a road link to the capital and two nearby ports.
The area’s low minimum wage of 1.9 million rupiah (US$135.14) a month is another selling point, said Fauzie Nur, who believes the park can compete with Vietnam and Thailand, the region’s winners in attracting investors during the United States-China trade war.
An official at Indonesia’s investment and maritime affairs ministry estimated the park’s first phase would cost 3.8 trillion rupiah ($275 million).
Omnibus law
In the wake of the US-China trade tensions and the pandemic, companies have recognized that in the past 25 years they had become too reliant on China, said Yose Rizal Damuri, an economist at the Centre for Strategic and International Studies, a think-tank.
Damuri said while companies are likely to decide on restructuring supply chains by next year, Indonesia should “be ready before that as they are already making preparations.”
In recent years, Indonesia has attracted foreign funds in mainly resources, tech and other sectors such as warehousing and logistics, but not so much in manufacturing.
President Joko Widodo last year told his cabinet “we have a problem” with our investment climate, citing an internal World Bank report that out of 33 companies relocating from China 23 had chosen Vietnam while others picked Malaysia, Thailand and Cambodia. None came to Indonesia.
In response, Widodo has prepared a flagship “omnibus” bill to replace around 80 overlapping regulations hampering business, and improve the overall investment climate, but the pandemic has slowed parliamentary deliberation.
Lin Neumann, managing director of the American Chamber of Commerce Indonesia, welcomed any incentives the park and new infrastructure offered but highlighted the importance of passing the bill, as well as opening up more protected sectors to foreign investment.
“The omnibus bill should impact the entire economy. That means the investment climate could change nationwide,” said Neumann.
Barring any changes, Fauzie Nur said the park’s first stage should be completed by next year.
“We can’t just be onlookers all the time.”
https://www.thejakartapost.com/news...pearhead-bid-to-lure-china-supply-chains.html
- Maikel Jefriando and Gayatri Suroyo
Reuters
Workers sew personal protective equipment (PPE) at a PT Kasih Karunia Sejati factory in Malang, East Java, on April 20. Indonesia plans to build one of its largest industrial parks on the north coast of Java island in a renewed drive to attract manufacturers relocating out of China as Southeast Asia’s biggest economy comes out of a coronavirus-induced lockdown. (JP/ Aman Rochman)
Indonesia plans to build one of its largest industrial parks on the north coast of Java island in a renewed drive to attract manufacturers relocating out of China as Southeast Asia’s biggest economy comes out of a coronavirus-induced lockdown.
Yet, despite its low wages and huge domestic market Indonesia must overcome decades-old hurdles including red tape, rigid labour laws, and poor infrastructure to be able to move up the global manufacturing value chain.
This time, in its quest to emulate rivals such as Vietnam, the government has shown serious intent in bringing about change and is aiming to pass an ambitious ‘omnibus’ bill later this year to address some of the pressing foreign investor concerns.
At the same time it is pushing ahead with plans for a 4,000- hectare (9,884-acre) industrial park, an area equivalent to more than 5,000 football fields, in Brebes, Central Java - mainly targeting supply chains relocating out of China.
“This is a pilot project for Indonesia on how we can attract global investors heading out of China,” said Ahmad Fauzie Nur, chief operating officer of PT Kawasan Industri Wijayakusuma, the state company due to operate the park.
In a bid to avoid problems securing land, the government would use a law to acquire land cheaply and ensure low rents at the park, said Fauzie Nur.
Taiwan’s Foxconn Technology Group had reportedly been interested in building a factory in Indonesia in 2014 but scrapped plans due to land issues.
The proposed park is located 270 km (168 miles) east of Jakarta in an area dotted with fish and shrimp farms and already has a road link to the capital and two nearby ports.
The area’s low minimum wage of 1.9 million rupiah (US$135.14) a month is another selling point, said Fauzie Nur, who believes the park can compete with Vietnam and Thailand, the region’s winners in attracting investors during the United States-China trade war.
An official at Indonesia’s investment and maritime affairs ministry estimated the park’s first phase would cost 3.8 trillion rupiah ($275 million).
Omnibus law
In the wake of the US-China trade tensions and the pandemic, companies have recognized that in the past 25 years they had become too reliant on China, said Yose Rizal Damuri, an economist at the Centre for Strategic and International Studies, a think-tank.
Damuri said while companies are likely to decide on restructuring supply chains by next year, Indonesia should “be ready before that as they are already making preparations.”
In recent years, Indonesia has attracted foreign funds in mainly resources, tech and other sectors such as warehousing and logistics, but not so much in manufacturing.
President Joko Widodo last year told his cabinet “we have a problem” with our investment climate, citing an internal World Bank report that out of 33 companies relocating from China 23 had chosen Vietnam while others picked Malaysia, Thailand and Cambodia. None came to Indonesia.
In response, Widodo has prepared a flagship “omnibus” bill to replace around 80 overlapping regulations hampering business, and improve the overall investment climate, but the pandemic has slowed parliamentary deliberation.
Lin Neumann, managing director of the American Chamber of Commerce Indonesia, welcomed any incentives the park and new infrastructure offered but highlighted the importance of passing the bill, as well as opening up more protected sectors to foreign investment.
“The omnibus bill should impact the entire economy. That means the investment climate could change nationwide,” said Neumann.
Barring any changes, Fauzie Nur said the park’s first stage should be completed by next year.
“We can’t just be onlookers all the time.”
https://www.thejakartapost.com/news...pearhead-bid-to-lure-china-supply-chains.html
Indos
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Indonesia Claims Five Drug Combinations Effectively Reduce Novel Coronavirus
BY :TARA MARCHELIN
JUNE 12, 2020
Jakarta. Researchers from Airlangga University, Government’s Covid-19 Task Force, and State Intelligence Agency (BIN) have claimed to have found combinations of medicine that effectively reduce the number of Sars-Cov-2, the coronavirus that causees Covid-19 disease, in the human body.
The researchers have submitted the result to several scientific journals for peer review.
“We have been conducting research on medicine combination regiment and two kinds of stem cells that quite good for eliminating the virus. We use the Sars-Cov-2 virus from Indonesia,” Purwati, the head of Airlangga University’s Stem Cell Research and Development Center, said on Friday.
Purwati said the first medicine combination comprises of Lopinavir, Ritonavir, and Azithromycin. The second combination includes of Lopinavir, Ritonavir, and Doxycycline. The third combination includes of Lopinavir, Ritonavir, and Clarithromycin. The fourth combination comprises of Hydroxychloroquine and Azithromycin. Meanwhile, the fifth combination comprises of Hydroxychloroquine and Doxycycline
“We have observed those combinations gradually from 24 hours, 48 hours, and 72 hours and it showed that the number of viruses lowered from hundreds of thousands to undetected,” she said in a virtual press conference.
Purwati said the researchers examined 14 medicine regiments in total, but only found that were effective against the novel coronavirus.
She also explained the researchers decided to use a combination regiment because it has better potency and effectiveness than the single regiment.
“The combination regiment also requires less dosage, one-fifth to one-third of the normal dosage, thus decrease the medicine toxicity in a healthy body,” Purwati added.
Purwati said the medicines used in the combinations are the ones that already in the market. The medication, she said, has been through various testing of National Drug and Food Control Agency (BPOM) such as in-vitro testing, animal testing, and post-marketing drug testing and obtained circulation permit.
She said the researchers had ensured the medicine compound safety through several steps.
“First, we ensure whether the medicine contained toxic or not. Second, we observe the medicine’s capability to kill the virus. Third, we check the medicine’s effectiveness and how long the effects could last. We also check the medicine’s inflammatory and anti-inflammatory factors,” Purwati said.
Aside from that, Airlangga University, Government’s Covid-19 Task Force and State Intelligence Agency have run research on two kinds of stem cells, natural-killer cell and hematopoietic cell.
“Based on the observation, the natural-killer cell and the hematopoietic cell can inactivate 80 percent to 90 percent of the virus within 48 hours to 72 hours,” Purwati said.
She said the cells had been taken from the patient’s blood with a breeding time of 3 to 4 days for hematopoietic cell and 7 to 14 days for the natural-killer cell. Purwanti said, for preventive settings, the natural-killer cell can last for approximately four months.
“We hope what we have been doing with the Covid-19 Task Force and BIN can be useful for Indonesia and the world. We have also disseminated this research by submitting seven journals about this research,” Purwati said.
https://jakartaglobe.id/news/indone...inations-effectively-reduce-novel-coronavirus
BY :TARA MARCHELIN
JUNE 12, 2020
Jakarta. Researchers from Airlangga University, Government’s Covid-19 Task Force, and State Intelligence Agency (BIN) have claimed to have found combinations of medicine that effectively reduce the number of Sars-Cov-2, the coronavirus that causees Covid-19 disease, in the human body.
The researchers have submitted the result to several scientific journals for peer review.
“We have been conducting research on medicine combination regiment and two kinds of stem cells that quite good for eliminating the virus. We use the Sars-Cov-2 virus from Indonesia,” Purwati, the head of Airlangga University’s Stem Cell Research and Development Center, said on Friday.
Purwati said the first medicine combination comprises of Lopinavir, Ritonavir, and Azithromycin. The second combination includes of Lopinavir, Ritonavir, and Doxycycline. The third combination includes of Lopinavir, Ritonavir, and Clarithromycin. The fourth combination comprises of Hydroxychloroquine and Azithromycin. Meanwhile, the fifth combination comprises of Hydroxychloroquine and Doxycycline
“We have observed those combinations gradually from 24 hours, 48 hours, and 72 hours and it showed that the number of viruses lowered from hundreds of thousands to undetected,” she said in a virtual press conference.
Purwati said the researchers examined 14 medicine regiments in total, but only found that were effective against the novel coronavirus.
She also explained the researchers decided to use a combination regiment because it has better potency and effectiveness than the single regiment.
“The combination regiment also requires less dosage, one-fifth to one-third of the normal dosage, thus decrease the medicine toxicity in a healthy body,” Purwati added.
Purwati said the medicines used in the combinations are the ones that already in the market. The medication, she said, has been through various testing of National Drug and Food Control Agency (BPOM) such as in-vitro testing, animal testing, and post-marketing drug testing and obtained circulation permit.
She said the researchers had ensured the medicine compound safety through several steps.
“First, we ensure whether the medicine contained toxic or not. Second, we observe the medicine’s capability to kill the virus. Third, we check the medicine’s effectiveness and how long the effects could last. We also check the medicine’s inflammatory and anti-inflammatory factors,” Purwati said.
Aside from that, Airlangga University, Government’s Covid-19 Task Force and State Intelligence Agency have run research on two kinds of stem cells, natural-killer cell and hematopoietic cell.
“Based on the observation, the natural-killer cell and the hematopoietic cell can inactivate 80 percent to 90 percent of the virus within 48 hours to 72 hours,” Purwati said.
She said the cells had been taken from the patient’s blood with a breeding time of 3 to 4 days for hematopoietic cell and 7 to 14 days for the natural-killer cell. Purwanti said, for preventive settings, the natural-killer cell can last for approximately four months.
“We hope what we have been doing with the Covid-19 Task Force and BIN can be useful for Indonesia and the world. We have also disseminated this research by submitting seven journals about this research,” Purwati said.
https://jakartaglobe.id/news/indone...inations-effectively-reduce-novel-coronavirus
Indos
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We score another trade surplus, Alhamdulillah. 
Indonesia's exports, imports nosedive in May as COVID-19 restrictions hit trade
Time to dwell: A vessel anchors at Tanjung Priok container terminal in North Jakarta in November 2019. (JP/Dhoni Setiawan)
Indonesia booked a trade surplus of US$2.09 billion in May as imports fell steeper than the export slump against the backdrop of social restrictions worldwide and supply chain disruption, Statistics Indonesia (BPS) announced Monday.
Exports plunged 28.95 percent year-on-year (yoy) in May to $10.53 billion, the lowest since July 2016, due to falling exports of coal, coffee, palm oil, as well as oil and gas, according to BPS data .
Meanwhile, imports fell even faster by 42.2 percent to $8.44 billion, the lowest since 2009, due to weak domestic demand for consumer goods, raw materials and capital goods.
“Economic development has not been good around the world,” said BPS head Suhariyanto during a news conference. “We are seeing weaker purchasing power, lockdowns, as well as economic contraction for our trading partners, which all have an impact on our trade balance.”
The country’s oil and gas exports declined 42.6 percent yoy to $650 million, while exports of mining products fell 38 percent yoy to $1.33 billion. Exports of manufactured goods dropped nearly 26 percent to $8.31 billion in May.
Imports of consumer goods shrank nearly 40 percent to $930 million due to fewer purchases of air conditioners and washing machines, among other items. Imports of raw materials plummeted 43 percent to $6.11 billion, while imports of capital goods shrank 40 percent to $1.39 billion.
From January to May, the country booked $64.46 billion in exports, a decrease of 5.96 percent, while imports amounted to $60.15 billion from January to May, a 15.5 percent yoy decrease.
Indonesia recorded a trade surplus of $4.31 billion during the first five months of the year, compared to a deficit of $2.68 billion in the same period last year.
Several countries, including China, the United States and Japan, among others, remain Indonesia’s largest trading partners.
Lockdowns and social distancing measures associated with the coronavirus pandemic have sapped global commerce and growth, disrupted supply chains and closed factories and stores.
Several regions in Indonesia have implemented large-scale social restrictions (PSBB) to curb the spread of the virus, forcing businesses to close and people to stay home.
This has reined in consumer spending as people are worried about job prospects and have become pessimistic about economic prospects, according to a consumer confidence index survey published by Bank Indonesia on Friday.
The World Trade Organization (WTO) projected that global trade would shrink between 13 and 32 percent as the economic impact of the health crisis remained uncertain.
The WTO has forecast 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.
https://www.thejakartapost.com/news...n-may-as-covid-19-restrictions-hit-trade.html
Indonesia's exports, imports nosedive in May as COVID-19 restrictions hit trade
- Adrian Wail Akhlas
The Jakarta Post
Time to dwell: A vessel anchors at Tanjung Priok container terminal in North Jakarta in November 2019. (JP/Dhoni Setiawan)
Indonesia booked a trade surplus of US$2.09 billion in May as imports fell steeper than the export slump against the backdrop of social restrictions worldwide and supply chain disruption, Statistics Indonesia (BPS) announced Monday.
Exports plunged 28.95 percent year-on-year (yoy) in May to $10.53 billion, the lowest since July 2016, due to falling exports of coal, coffee, palm oil, as well as oil and gas, according to BPS data .
Meanwhile, imports fell even faster by 42.2 percent to $8.44 billion, the lowest since 2009, due to weak domestic demand for consumer goods, raw materials and capital goods.
“Economic development has not been good around the world,” said BPS head Suhariyanto during a news conference. “We are seeing weaker purchasing power, lockdowns, as well as economic contraction for our trading partners, which all have an impact on our trade balance.”
The country’s oil and gas exports declined 42.6 percent yoy to $650 million, while exports of mining products fell 38 percent yoy to $1.33 billion. Exports of manufactured goods dropped nearly 26 percent to $8.31 billion in May.
Imports of consumer goods shrank nearly 40 percent to $930 million due to fewer purchases of air conditioners and washing machines, among other items. Imports of raw materials plummeted 43 percent to $6.11 billion, while imports of capital goods shrank 40 percent to $1.39 billion.
From January to May, the country booked $64.46 billion in exports, a decrease of 5.96 percent, while imports amounted to $60.15 billion from January to May, a 15.5 percent yoy decrease.
Indonesia recorded a trade surplus of $4.31 billion during the first five months of the year, compared to a deficit of $2.68 billion in the same period last year.
Several countries, including China, the United States and Japan, among others, remain Indonesia’s largest trading partners.
Lockdowns and social distancing measures associated with the coronavirus pandemic have sapped global commerce and growth, disrupted supply chains and closed factories and stores.
Several regions in Indonesia have implemented large-scale social restrictions (PSBB) to curb the spread of the virus, forcing businesses to close and people to stay home.
This has reined in consumer spending as people are worried about job prospects and have become pessimistic about economic prospects, according to a consumer confidence index survey published by Bank Indonesia on Friday.
The World Trade Organization (WTO) projected that global trade would shrink between 13 and 32 percent as the economic impact of the health crisis remained uncertain.
The WTO has forecast 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.
https://www.thejakartapost.com/news...n-may-as-covid-19-restrictions-hit-trade.html
Nilgiri
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We score another trade surplus, Alhamdulillah.
Indonesia's exports, imports nosedive in May as COVID-19 restrictions hit trade
Jakarta / Mon, June 15, 2020 / 02:30 pm
- Adrian Wail Akhlas
The Jakarta Post
Time to dwell: A vessel anchors at Tanjung Priok container terminal in North Jakarta in November 2019. (JP/Dhoni Setiawan)
Indonesia booked a trade surplus of US$2.09 billion in May as imports fell steeper than the export slump against the backdrop of social restrictions worldwide and supply chain disruption, Statistics Indonesia (BPS) announced Monday.
Exports plunged 28.95 percent year-on-year (yoy) in May to $10.53 billion, the lowest since July 2016, due to falling exports of coal, coffee, palm oil, as well as oil and gas, according to BPS data .
Meanwhile, imports fell even faster by 42.2 percent to $8.44 billion, the lowest since 2009, due to weak domestic demand for consumer goods, raw materials and capital goods.
“Economic development has not been good around the world,” said BPS head Suhariyanto during a news conference. “We are seeing weaker purchasing power, lockdowns, as well as economic contraction for our trading partners, which all have an impact on our trade balance.”
The country’s oil and gas exports declined 42.6 percent yoy to $650 million, while exports of mining products fell 38 percent yoy to $1.33 billion. Exports of manufactured goods dropped nearly 26 percent to $8.31 billion in May.
Imports of consumer goods shrank nearly 40 percent to $930 million due to fewer purchases of air conditioners and washing machines, among other items. Imports of raw materials plummeted 43 percent to $6.11 billion, while imports of capital goods shrank 40 percent to $1.39 billion.
From January to May, the country booked $64.46 billion in exports, a decrease of 5.96 percent, while imports amounted to $60.15 billion from January to May, a 15.5 percent yoy decrease.
Indonesia recorded a trade surplus of $4.31 billion during the first five months of the year, compared to a deficit of $2.68 billion in the same period last year.
Several countries, including China, the United States and Japan, among others, remain Indonesia’s largest trading partners.
Lockdowns and social distancing measures associated with the coronavirus pandemic have sapped global commerce and growth, disrupted supply chains and closed factories and stores.
Several regions in Indonesia have implemented large-scale social restrictions (PSBB) to curb the spread of the virus, forcing businesses to close and people to stay home.
This has reined in consumer spending as people are worried about job prospects and have become pessimistic about economic prospects, according to a consumer confidence index survey published by Bank Indonesia on Friday.
The World Trade Organization (WTO) projected that global trade would shrink between 13 and 32 percent as the economic impact of the health crisis remained uncertain.
The WTO has forecast 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.
https://www.thejakartapost.com/news...n-may-as-covid-19-restrictions-hit-trade.html
It's not for a totally good and sustainable reason though. We must let economy get back to near 100% situation to adjudge what really its like etc.
Both India and Indonesia must continue to reform their economies and attract more investments and capital to be able to really export much more than they do.
Nike
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This, contraction in export and import indicated there is something ill about economy situation and in this case is global crisis caused by pandemic covid 19.
Indos
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Thats right, but regardless of that fact, in this abnormal situation we need to have a strong currency. It will be so devastating if we have weak Rupiah during the outbreak. So this trade surplus is really a bless for Indonesian economy during this difficult time. We still remember on how Rupiah can even reach Rp 16.000 per USD or lost about 2000 points from Rp 13.500 during the first weeks of the outbreak.
Indos
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Pertamina enlists Krakatau Steel as supplier for Rokan Block
A worker walks past metal coils in a warehouse in this undated photo. State-owned energy giant Pertamina has enlisted fellow state-owned company Krakatau Steel to supply metal sheet coils for the former’s project in the Rokan oil and gas block in Riau. (PGN/PGN)
State-owned energy giant Pertamina has enlisted fellow state-owned company Krakatau Steel to supply metal sheet coils for the former’s project in the Rokan oil and gas block in Riau.
Pertamina, through subsidiary Pertamina Gas (Pertagas), signed on Tuesday a deal with Krakatau Steel, the country’s largest steelmaker, to purchase 53,600 metric tons of hot rolled coil (HRC) steel, which will be turned into 370 kilometers of piping for the project.
Read also: SOE Ministry slashes Pertamina’s board of directors to refocus business
Pertagas president director Wiko Migantoro said the deal was a means of using more locally made components within the Rokan Block, which is Indonesia’s second-most productive oil block.
“This is mainly an effort to create synergy among state-owned enterprises and their subsidiaries in key national projects,” he said in a joint statement, adding that the deal would cut pipe purchasing costs by 16 percent.
Indonesia, through Pertamina, is set to nationalize the Rokan Block next year. The area is currently operated by United States-based Chevron.
Read also: Pertamina loses partners, eyes new investors for refinery megaprojects
The country expects Pertamina’s takeover to maintain block production levels, which saw a landmark decline of 9.2 percent year-on-year to 190,131 barrels per day in 2019. Prior to 2019, the Rokan Block was Indonesia’s most productive oil block.
“We guarantee punctuality on the lead time of 4-6 months, so that this project can be finished on time and with quality,” said Krakatau Steel president director Silmy Karim.
https://www.thejakartapost.com/news...akatau-steel-as-supplier-for-rokan-block.html
- Norman Harsono
The Jakarta Post
A worker walks past metal coils in a warehouse in this undated photo. State-owned energy giant Pertamina has enlisted fellow state-owned company Krakatau Steel to supply metal sheet coils for the former’s project in the Rokan oil and gas block in Riau. (PGN/PGN)
State-owned energy giant Pertamina has enlisted fellow state-owned company Krakatau Steel to supply metal sheet coils for the former’s project in the Rokan oil and gas block in Riau.
Pertamina, through subsidiary Pertamina Gas (Pertagas), signed on Tuesday a deal with Krakatau Steel, the country’s largest steelmaker, to purchase 53,600 metric tons of hot rolled coil (HRC) steel, which will be turned into 370 kilometers of piping for the project.
Read also: SOE Ministry slashes Pertamina’s board of directors to refocus business
Pertagas president director Wiko Migantoro said the deal was a means of using more locally made components within the Rokan Block, which is Indonesia’s second-most productive oil block.
“This is mainly an effort to create synergy among state-owned enterprises and their subsidiaries in key national projects,” he said in a joint statement, adding that the deal would cut pipe purchasing costs by 16 percent.
Indonesia, through Pertamina, is set to nationalize the Rokan Block next year. The area is currently operated by United States-based Chevron.
Read also: Pertamina loses partners, eyes new investors for refinery megaprojects
The country expects Pertamina’s takeover to maintain block production levels, which saw a landmark decline of 9.2 percent year-on-year to 190,131 barrels per day in 2019. Prior to 2019, the Rokan Block was Indonesia’s most productive oil block.
“We guarantee punctuality on the lead time of 4-6 months, so that this project can be finished on time and with quality,” said Krakatau Steel president director Silmy Karim.
https://www.thejakartapost.com/news...akatau-steel-as-supplier-for-rokan-block.html
Indos
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Govt revokes export ban on PPE amid oversupply
Fire and Rescue Agency personnel wear bright red hazmat suits as they disinfect Istiqlal Mosque in Central Jakarta on Wednesday, in preparation for gradually transitioning the capital out of the large-scale social restrictions (PSBB) over the month of June. JP/Donny Fernando (JP/Donny Fernando)
The Trade Ministry has lifted an export ban on personal protective equipment (PPE) amid oversupply in national production as it seeks to restore exports hard hit by the COVID-19 economic crisis.
Ministerial Regulation No. 57/2020, issued by Trade Minister Agus Suparmanto on Tuesday, will allow manufacturers to export surgical masks, N-95 masks, coveralls, surgical gowns and raw material to make face masks, thereby annulling the previous ban that had been imposed to ensure domestic supplies during the pandemic.
Manufacturers can apply for the export permit via the government’s export-import online licensing system Indonesia National Single Window (INSW). They will then be required to provide documents such as a business permit, six-month export plan and statement to prove that they have stocks to meet domestic demand, in order to be granted export approval.
“This trade ministry regulation that I have signed and that is currently undergoing the legislation process at the Law and Human Rights Ministry aims to spur national economic growth, particularly for manufacturing, and improve our export performance amid the COVID-19 pandemic,” the minister was quoted as saying in a statement on Tuesday.
The country’s exports have fallen by 28.95 percent year-on-year (yoy) in May to US$10.53 billion, the lowest level since July 2016, due to reduced shipments of coal, coffee, palm oil, as well as oil and gas.
Meanwhile, textile manufacturers, who are suffering from dwindling demand due to the pandemic, have switched to produce PPE products, leading to an oversupply of the domestic production.
For example, Indonesia’s production capacity of surgical mask has more than doubled to 394 million per month in April compared with the pre-pandemic level, according to an estimate by the Industry Ministry. The supply is expected to exceed domestic consumption by 2 million this year.
Meanwhile, manufacturers can now produce 54 million coveralls a month, dwarfing the pre-pandemic figure of 1 million per month.
Read also: PPE production soars but quality, distribution issues remain
Agus said the now-defunct export ban under Trade Ministery Regulation No. 23/2020 in part made the excessive medical supplies possible. The regulation had been put in place to ensure national demand for PPE during the ongoing health crisis was met.
In the early days of the COVID-19 pandemic, prices of face masks skyrocketed in several parts of the country as people stockpiled protective supplies, such as masks and hand sanitizer, to protect themselves from the virus.
“The temporary ban had a positive impact on an excessive supply of antiseptic,” Agus said. “With the issuance of this trade ministry regulation, we hope that it will provide certainty for medical equipment manufacturers in Indonesia.”
https://www.thejakartapost.com/news/2020/06/17/govt-revokes-export-ban-on-ppe-amid-oversupply.html
- Dzulfiqar Fathur Rahman
The Jakarta Post
Fire and Rescue Agency personnel wear bright red hazmat suits as they disinfect Istiqlal Mosque in Central Jakarta on Wednesday, in preparation for gradually transitioning the capital out of the large-scale social restrictions (PSBB) over the month of June. JP/Donny Fernando (JP/Donny Fernando)
The Trade Ministry has lifted an export ban on personal protective equipment (PPE) amid oversupply in national production as it seeks to restore exports hard hit by the COVID-19 economic crisis.
Ministerial Regulation No. 57/2020, issued by Trade Minister Agus Suparmanto on Tuesday, will allow manufacturers to export surgical masks, N-95 masks, coveralls, surgical gowns and raw material to make face masks, thereby annulling the previous ban that had been imposed to ensure domestic supplies during the pandemic.
Manufacturers can apply for the export permit via the government’s export-import online licensing system Indonesia National Single Window (INSW). They will then be required to provide documents such as a business permit, six-month export plan and statement to prove that they have stocks to meet domestic demand, in order to be granted export approval.
“This trade ministry regulation that I have signed and that is currently undergoing the legislation process at the Law and Human Rights Ministry aims to spur national economic growth, particularly for manufacturing, and improve our export performance amid the COVID-19 pandemic,” the minister was quoted as saying in a statement on Tuesday.
The country’s exports have fallen by 28.95 percent year-on-year (yoy) in May to US$10.53 billion, the lowest level since July 2016, due to reduced shipments of coal, coffee, palm oil, as well as oil and gas.
Meanwhile, textile manufacturers, who are suffering from dwindling demand due to the pandemic, have switched to produce PPE products, leading to an oversupply of the domestic production.
For example, Indonesia’s production capacity of surgical mask has more than doubled to 394 million per month in April compared with the pre-pandemic level, according to an estimate by the Industry Ministry. The supply is expected to exceed domestic consumption by 2 million this year.
Meanwhile, manufacturers can now produce 54 million coveralls a month, dwarfing the pre-pandemic figure of 1 million per month.
Read also: PPE production soars but quality, distribution issues remain
Agus said the now-defunct export ban under Trade Ministery Regulation No. 23/2020 in part made the excessive medical supplies possible. The regulation had been put in place to ensure national demand for PPE during the ongoing health crisis was met.
In the early days of the COVID-19 pandemic, prices of face masks skyrocketed in several parts of the country as people stockpiled protective supplies, such as masks and hand sanitizer, to protect themselves from the virus.
“The temporary ban had a positive impact on an excessive supply of antiseptic,” Agus said. “With the issuance of this trade ministry regulation, we hope that it will provide certainty for medical equipment manufacturers in Indonesia.”
https://www.thejakartapost.com/news/2020/06/17/govt-revokes-export-ban-on-ppe-amid-oversupply.html
Bungaterakhir
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#snapshots
One of Indonesia's biggest ports in the future. Standing strong above 64.6Ha of land, Patimban will later connecting the production center with a distribution channel to reduce logistic costs.
RIP 7-Eleven
One of Indonesia's biggest ports in the future. Standing strong above 64.6Ha of land, Patimban will later connecting the production center with a distribution channel to reduce logistic costs.
RIP 7-Eleven
Indos
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#snapshots
One of Indonesia's biggest ports in the future. Standing strong above 64.6Ha of land, Patimban will later connecting the production center with a distribution channel to reduce logistic costs.
RIP 7-Eleven
Nice, no need to go to Jakarta port (Tanjung Priok port). Very helpful to industrialize West Java further and ease the burden of Tanjung Priok port.
Nike
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Indonesia working on $1b solar-driven green economic recovery scheme
A worker inspects solar panels at a 600 kWp solar power plant on Gili Trawangan Island in Lombok, West Nusa Tenggara, in this undated photo. A think tank and the government are working on an ambitious billion-dollar plan to recover Indonesia’s virus-ridden economy by installing thousands of rooftop solar panels. (PLN/PLN)
A think tank and the government are working on an ambitious billion-dollar plan to recover Indonesia’s virus-ridden economy by installing thousands of rooftop solar panels.
The scheme ultimately entails installing panels with a combined capacity of 1 gigawatt of peak power GWp) a year for millions of Indonesia’s poorest households over the next four to five years. The scheme, dubbed the Solar Archipelago (Surya Nusantara) plan, is expected to cost Rp 15 trillion (US$1.07 billion) annually.
Local think tank Institute for Essential Services Reform (IESR), which initiated the plan, estimates the scheme will generate up to 22,000 jobs from installing the panels and save the government billions of dollars in electricity subsidies.
Cutting back subsidies is particularly attractive for the cash-strapped Indonesian government, namely the Energy and Mineral Resources and the Finance Ministry’s Fiscal Policy Agency (BKF), both of whom are working to develop the scheme.
“We expect implementation to start next year, but preparations must begin from today,” IESR executive director Fabby Tumiwa told The Jakarta Post on Tuesday.
Fabby, who is also a member of the Indonesian Solar Energy Association (AESI), said much work remained, including training new panel installers via a government training program. Indonesia currently lacks the manpower to install one GWp of panels each year.
He said the project would “realistically” kick off with 100-200 megawatt (MW) in Nusa Tenggara and Bali in its first year. Those provinces have the highest electricity supply costs (BPP) in Indonesia.
Energy analysts globally are calling for governments to invest in green technology as countries begin disbursing billions of dollars in post-COVID-19 economic recovery schemes.
The analysts argue that such investments could stimulate growth and create jobs without sacrificing environmental commitments.
“The period after the COVID-19 crisis could determine whether the world meets or misses the emissions goals of the 2015 Paris Agreement,” said consultancy McKinsey & Company in an article on May 27.
Indonesia, a signatory of the landmark Paris Agreement, has pledged to make solar contribute 5.7 percent of the country’s power by 2025, yet solar only contributed 0.1 percent last year.
The Indonesian government has budgeted Rp 695.2 trillion in economic recovery funds, slated for healthcare system, social safety nets, incentives for small businesses and job creation, among other things, but there is no specific mention of renewable energy.
“To put that money back into coal would be a mistake,” Rudolf Rauch, renewable energy program coordinator of the GIZ, Germany’s federal enterprise for international cooperation, told the Post on Monday.
Rauch commended the green economic recovery plan but pointed out that Indonesia lacked the manpower to “just jump” into installing 1GWp of panels. He suggested that the government start by installing 200 MW in the first year, then double the figure every following year.
The Energy ministry’s renewables director Harris said the ministry was in talks with the BKF over the plan. He also expected the scheme to create local employment opportunities and grow the domestic solar industry.
“Everyone can benefit, and the government can save on long-term subsidies,” Harris said.
The government has allocated Rp 97.42 trillion for this year’s energy subsidy, according to Presidential Regulation (Perpres) No. 54/2020 on the 2020 state budget revision. However, Finance Ministry Fiscal Policy Agency head Febrio Nathan Kacaribu said earlier this month that the energy subsidy budget had been lowered to Rp 92.2 trillion following the plunge in oil prices.
Indonesia currently has 31 million households eligible for electricity subsidies. The government spent Rp52.7 trillion on subsidies for those homes last year.
BKF special advisor Joko Tri Hariyanto said the agency was trying to diversify the green economic recovery program’s funding, such as by adding government debt papers (SUN) and sharia-compliant bonds (sukuk), instead of fully relying on the state budget (APBN), as IESR initially planned.
The BKF is currently awaiting feedback from the energy ministry and the IESR on the scheme, Joko told the Post on Friday.
“If the energy ministry were to redirect electricity subsidy funds, they would need to talk to PLN,” he said. “If this program does have a good multiplier effect, whether in terms of people’s income or local job creation, then that Rp 15 trillion may come from the state budget.”
https://www.thejakartapost.com/news...ar-driven-green-economic-recovery-scheme.html
- Norman Harsono
- The Jakarta Post
A worker inspects solar panels at a 600 kWp solar power plant on Gili Trawangan Island in Lombok, West Nusa Tenggara, in this undated photo. A think tank and the government are working on an ambitious billion-dollar plan to recover Indonesia’s virus-ridden economy by installing thousands of rooftop solar panels. (PLN/PLN)
A think tank and the government are working on an ambitious billion-dollar plan to recover Indonesia’s virus-ridden economy by installing thousands of rooftop solar panels.
The scheme ultimately entails installing panels with a combined capacity of 1 gigawatt of peak power GWp) a year for millions of Indonesia’s poorest households over the next four to five years. The scheme, dubbed the Solar Archipelago (Surya Nusantara) plan, is expected to cost Rp 15 trillion (US$1.07 billion) annually.
Local think tank Institute for Essential Services Reform (IESR), which initiated the plan, estimates the scheme will generate up to 22,000 jobs from installing the panels and save the government billions of dollars in electricity subsidies.
Cutting back subsidies is particularly attractive for the cash-strapped Indonesian government, namely the Energy and Mineral Resources and the Finance Ministry’s Fiscal Policy Agency (BKF), both of whom are working to develop the scheme.
“We expect implementation to start next year, but preparations must begin from today,” IESR executive director Fabby Tumiwa told The Jakarta Post on Tuesday.
Fabby, who is also a member of the Indonesian Solar Energy Association (AESI), said much work remained, including training new panel installers via a government training program. Indonesia currently lacks the manpower to install one GWp of panels each year.
He said the project would “realistically” kick off with 100-200 megawatt (MW) in Nusa Tenggara and Bali in its first year. Those provinces have the highest electricity supply costs (BPP) in Indonesia.
Energy analysts globally are calling for governments to invest in green technology as countries begin disbursing billions of dollars in post-COVID-19 economic recovery schemes.
The analysts argue that such investments could stimulate growth and create jobs without sacrificing environmental commitments.
“The period after the COVID-19 crisis could determine whether the world meets or misses the emissions goals of the 2015 Paris Agreement,” said consultancy McKinsey & Company in an article on May 27.
Indonesia, a signatory of the landmark Paris Agreement, has pledged to make solar contribute 5.7 percent of the country’s power by 2025, yet solar only contributed 0.1 percent last year.
The Indonesian government has budgeted Rp 695.2 trillion in economic recovery funds, slated for healthcare system, social safety nets, incentives for small businesses and job creation, among other things, but there is no specific mention of renewable energy.
“To put that money back into coal would be a mistake,” Rudolf Rauch, renewable energy program coordinator of the GIZ, Germany’s federal enterprise for international cooperation, told the Post on Monday.
Rauch commended the green economic recovery plan but pointed out that Indonesia lacked the manpower to “just jump” into installing 1GWp of panels. He suggested that the government start by installing 200 MW in the first year, then double the figure every following year.
The Energy ministry’s renewables director Harris said the ministry was in talks with the BKF over the plan. He also expected the scheme to create local employment opportunities and grow the domestic solar industry.
“Everyone can benefit, and the government can save on long-term subsidies,” Harris said.
The government has allocated Rp 97.42 trillion for this year’s energy subsidy, according to Presidential Regulation (Perpres) No. 54/2020 on the 2020 state budget revision. However, Finance Ministry Fiscal Policy Agency head Febrio Nathan Kacaribu said earlier this month that the energy subsidy budget had been lowered to Rp 92.2 trillion following the plunge in oil prices.
Indonesia currently has 31 million households eligible for electricity subsidies. The government spent Rp52.7 trillion on subsidies for those homes last year.
BKF special advisor Joko Tri Hariyanto said the agency was trying to diversify the green economic recovery program’s funding, such as by adding government debt papers (SUN) and sharia-compliant bonds (sukuk), instead of fully relying on the state budget (APBN), as IESR initially planned.
The BKF is currently awaiting feedback from the energy ministry and the IESR on the scheme, Joko told the Post on Friday.
“If the energy ministry were to redirect electricity subsidy funds, they would need to talk to PLN,” he said. “If this program does have a good multiplier effect, whether in terms of people’s income or local job creation, then that Rp 15 trillion may come from the state budget.”
https://www.thejakartapost.com/news...ar-driven-green-economic-recovery-scheme.html
Indos
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SOE Ministry appoints Bukalapak cofounder as new Telkom director
The State-Owned Enterprises (SOEs) Ministry has appointed e-commerce unicorn Bukalapak cofounder Fajrin Rasyid as a director of state-owned telecommunication firm PT Telekomunikasi Indonesia (Telkom), as the company eyes a digital business expansion.
Fajrin, who held the position of president in Bukalapak, has replaced Faizal R. Djoemadi as the state enterprise’s digital business director effective on June 19.
“Fajrin’s appointment is in line with our plan to develop our digital platform and services, so we need to have a board of directors member who is competent in that field,” Telkom president director Ririek Adriansyah said during a virtual press briefing on June 19.
Telkom announced earlier this year that the company would transform its business strategy to focus more on digital services, following criticism from State-Owned Enterprises Minister Erick Thohir in February about the company's overreliance on its cellular operator subsidiary Telkomsel, which contributes 70 percent of its income.
The firm has then been striving to develop various digital services based on smart platforms, such as cloud, big data and the internet of things (IoT).
Fajrin said he hoped he could use his experience in the start-up business to contribute to the development of Telkom.
“I’m very thankful for the trust given to me. Now is the time to make a greater contribution to the advancement of Indonesia and focus on developing Indonesia’s telco industry with Telkom,” Fajrin said in a statement.
Following his departure, Fajrin planned to hand over his daily functional duties and responsibilities as Bukalapak’s president to the company’s board of directors and management, the e-commerce firm said in a statement on its website.
SOEs Minister Erick Thohir said in a statement that Fajrin was the best fit to lead Telkom’s digital business development because of his track record and achievements in the digital sector especially in the post-COVID-19 economy.
“With bigger challenges ahead, every member of Telkom’s board of directors has a certain key performance index they need to follow and they should be ready to be dismissed when they fail to fulfil it,” said Erick.
Fajrin founded Bukalapak in 2011 with his partner, Achmad Zaky. Before taking on the role of president, the Bandung Institute of Technology (ITB) alumnus was the chief financial officer (CFO) of the e-commerce platform. He also previously worked in consulting firm Boston Consultant Group (BCG).
Bukalapak currently has 92 million users, around 6 million sellers on its platform, as well as 5 million online-to-offline partners known as Mitra Bukalapak after more than 10 years of operation.
https://www.thejakartapost.com/news...kalapak-cofounder-as-new-telkom-director.html
He is still 34 years old.....
- Riska Rahman
The Jakarta Post
The State-Owned Enterprises (SOEs) Ministry has appointed e-commerce unicorn Bukalapak cofounder Fajrin Rasyid as a director of state-owned telecommunication firm PT Telekomunikasi Indonesia (Telkom), as the company eyes a digital business expansion.
Fajrin, who held the position of president in Bukalapak, has replaced Faizal R. Djoemadi as the state enterprise’s digital business director effective on June 19.
“Fajrin’s appointment is in line with our plan to develop our digital platform and services, so we need to have a board of directors member who is competent in that field,” Telkom president director Ririek Adriansyah said during a virtual press briefing on June 19.
Telkom announced earlier this year that the company would transform its business strategy to focus more on digital services, following criticism from State-Owned Enterprises Minister Erick Thohir in February about the company's overreliance on its cellular operator subsidiary Telkomsel, which contributes 70 percent of its income.
The firm has then been striving to develop various digital services based on smart platforms, such as cloud, big data and the internet of things (IoT).
Fajrin said he hoped he could use his experience in the start-up business to contribute to the development of Telkom.
“I’m very thankful for the trust given to me. Now is the time to make a greater contribution to the advancement of Indonesia and focus on developing Indonesia’s telco industry with Telkom,” Fajrin said in a statement.
Following his departure, Fajrin planned to hand over his daily functional duties and responsibilities as Bukalapak’s president to the company’s board of directors and management, the e-commerce firm said in a statement on its website.
SOEs Minister Erick Thohir said in a statement that Fajrin was the best fit to lead Telkom’s digital business development because of his track record and achievements in the digital sector especially in the post-COVID-19 economy.
“With bigger challenges ahead, every member of Telkom’s board of directors has a certain key performance index they need to follow and they should be ready to be dismissed when they fail to fulfil it,” said Erick.
Fajrin founded Bukalapak in 2011 with his partner, Achmad Zaky. Before taking on the role of president, the Bandung Institute of Technology (ITB) alumnus was the chief financial officer (CFO) of the e-commerce platform. He also previously worked in consulting firm Boston Consultant Group (BCG).
Bukalapak currently has 92 million users, around 6 million sellers on its platform, as well as 5 million online-to-offline partners known as Mitra Bukalapak after more than 10 years of operation.
https://www.thejakartapost.com/news...kalapak-cofounder-as-new-telkom-director.html
He is still 34 years old.....
Indos
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Consumer goods firms grow in Q1 amid economic crisis
--------------------------------------------------------------------------------------------------
Publicly listed consumer goods companies have managed to book profits in the first quarter – some even higher than last year – as they emerge as winners during the pandemic-induced economic crisis.
Koneksi Kapital equity analyst Alfred Nainggolan said on Tuesday that the growth of consumer goods companies had been caused by an increased need for staple goods during the pandemic.
PT Unilever Indonesia, which sells soap, shampoo and other personal care products, as well as food and refreshments, reported a higher net profit in the first quarter of this year than in the same period last year. At Rp 1.86 trillion, Unilever’s January-March net profit grew 6.5 percent year-on-year (yoy). Sales grew 4.6 percent to Rp 11.15 trillion for the same period.
“In times of crisis like today, staple goods like food and hygiene products are even more essential for a lot of people, regardless of their economic condition,” Alfred told The Jakarta Post.
Indonesia’s economy grew 2.97 percent in the first three months of this year, the lowest in 19 years, as consumer spending, which accounts for more than half of the nation’s gross domestic product (GDP), grew 2.84 percent. Vehicle and retail sales led the fall as people spent more on health care.
The panic during the early days of the coronavirus outbreak drove many people to hoard food and cleaning supplies, causing empty shelves in many grocery stores in cities throughout the country.
Instant noodle producer PT Indofood CBP Sukses Makmur (ICBP) recorded a 6.67 percent yoy increase in sales to Rp 12 trillion in the first quarter of this year, thanks to a 6.54 percent yoy rise in noodle sales. As a result, its profit soared 48.26 percent yoy to Rp 1.98 trillion.
Read also: Market players’ stock price predictions show that uncertainty lingers
Nippon Indosari, the producer of Sari Roti bread, recorded the strongest growth in sales and profit of consumer goods companies. The company recorded a 15.3 percent yoy growth in sales to Rp 912.87 billion in the first three months of this year. Its profit jumped 20 percent yoy to Rp 77.85 billion in the same period.
Despite the solid growth in the first quarter, Alfred warned that consumer goods companies would see a slight decline in performance in the second quarter of this year because large-scale social restrictions (PSBB) had hampered economic activity.
The measures, which were intended to curtail the spread of the coronavirus, resulted in layoffs and pay cuts, which caused consumption to decline.
“The decline will not be as significant as car or house sales because people will continue buying the same short-term staple goods despite the pay cut,” he said.
Mirae Asset Sekuritas analyst Mimi Halimin said in a research note on May 15 that even though the slowdown in consumption was unavoidable during the pandemic, she believed that some sectors, such as food and beverages, as well as healthcare, would remain resilient to the uncertain conditions.
Analysts expected that a recovery of economic activity following the establishment of the country’s “new normal” would drive consumption and reduce logistic costs in the second half of the year. However, consumption would likely remain below first quarter performance.
In addition to weak consumption, Mimi said other factors would affect consumer goods companies’ performances this year, including increasing COVID-19 cases, which surpassed 49,000 in the nation on Wednesday, with 2,573 dead.
Read also: Strategy key in stocks investment amid volatility: Experts
“A prolonged increase in COVID-19 cases, intensified competition, higher commodity prices and a weakening rupiah could cause us to scale down our revenue and net profit estimates for consumer goods companies,” added Mimi.
Despite the challenges, Mimi remained optimistic that consumer goods companies would be resilient to the ongoing uncertainty and that their stocks would remain good investments amid rising market volatility.
The consumer goods subindex of stocks traded on the Indonesia Stock Exchange (IDX) dropped the least of all the sectoral subindices this year, falling by 11 percent. This decline was significantly less than the 34 percent slump suffered by the hardest-hit property and real estate subindex, the 31 percent plunge in the agriculture subindex and the 21 percent fall in the agriculture subindex.
https://www.thejakartapost.com/news...ds-firms-grow-in-q1-amid-economic-crisis.html
- Riska Rahman
The Jakarta Post
--------------------------------------------------------------------------------------------------
Publicly listed consumer goods companies have managed to book profits in the first quarter – some even higher than last year – as they emerge as winners during the pandemic-induced economic crisis.
Koneksi Kapital equity analyst Alfred Nainggolan said on Tuesday that the growth of consumer goods companies had been caused by an increased need for staple goods during the pandemic.
PT Unilever Indonesia, which sells soap, shampoo and other personal care products, as well as food and refreshments, reported a higher net profit in the first quarter of this year than in the same period last year. At Rp 1.86 trillion, Unilever’s January-March net profit grew 6.5 percent year-on-year (yoy). Sales grew 4.6 percent to Rp 11.15 trillion for the same period.
“In times of crisis like today, staple goods like food and hygiene products are even more essential for a lot of people, regardless of their economic condition,” Alfred told The Jakarta Post.
Indonesia’s economy grew 2.97 percent in the first three months of this year, the lowest in 19 years, as consumer spending, which accounts for more than half of the nation’s gross domestic product (GDP), grew 2.84 percent. Vehicle and retail sales led the fall as people spent more on health care.
The panic during the early days of the coronavirus outbreak drove many people to hoard food and cleaning supplies, causing empty shelves in many grocery stores in cities throughout the country.
Instant noodle producer PT Indofood CBP Sukses Makmur (ICBP) recorded a 6.67 percent yoy increase in sales to Rp 12 trillion in the first quarter of this year, thanks to a 6.54 percent yoy rise in noodle sales. As a result, its profit soared 48.26 percent yoy to Rp 1.98 trillion.
Read also: Market players’ stock price predictions show that uncertainty lingers
Nippon Indosari, the producer of Sari Roti bread, recorded the strongest growth in sales and profit of consumer goods companies. The company recorded a 15.3 percent yoy growth in sales to Rp 912.87 billion in the first three months of this year. Its profit jumped 20 percent yoy to Rp 77.85 billion in the same period.
Despite the solid growth in the first quarter, Alfred warned that consumer goods companies would see a slight decline in performance in the second quarter of this year because large-scale social restrictions (PSBB) had hampered economic activity.
The measures, which were intended to curtail the spread of the coronavirus, resulted in layoffs and pay cuts, which caused consumption to decline.
“The decline will not be as significant as car or house sales because people will continue buying the same short-term staple goods despite the pay cut,” he said.
Mirae Asset Sekuritas analyst Mimi Halimin said in a research note on May 15 that even though the slowdown in consumption was unavoidable during the pandemic, she believed that some sectors, such as food and beverages, as well as healthcare, would remain resilient to the uncertain conditions.
Analysts expected that a recovery of economic activity following the establishment of the country’s “new normal” would drive consumption and reduce logistic costs in the second half of the year. However, consumption would likely remain below first quarter performance.
In addition to weak consumption, Mimi said other factors would affect consumer goods companies’ performances this year, including increasing COVID-19 cases, which surpassed 49,000 in the nation on Wednesday, with 2,573 dead.
Read also: Strategy key in stocks investment amid volatility: Experts
“A prolonged increase in COVID-19 cases, intensified competition, higher commodity prices and a weakening rupiah could cause us to scale down our revenue and net profit estimates for consumer goods companies,” added Mimi.
Despite the challenges, Mimi remained optimistic that consumer goods companies would be resilient to the ongoing uncertainty and that their stocks would remain good investments amid rising market volatility.
The consumer goods subindex of stocks traded on the Indonesia Stock Exchange (IDX) dropped the least of all the sectoral subindices this year, falling by 11 percent. This decline was significantly less than the 34 percent slump suffered by the hardest-hit property and real estate subindex, the 31 percent plunge in the agriculture subindex and the 21 percent fall in the agriculture subindex.
https://www.thejakartapost.com/news...ds-firms-grow-in-q1-amid-economic-crisis.html
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