Indonesia Economy Forum

[Indos]

 

[Indos]

S&P Rating projected Indonesia economy to grow 5.6 percent in 2022

 

[Indos]

Coal power plants owned by state owned electricity company, PT PLN, is now having 25 days of coal stock. Government will easing the coal export ban and gradually let coal miners to export the coal.

 

[Indos]

 

[Indos]

Omicron infection in Indonesia is dominated by Indonesians who travels abroad and come back home. Covid cases as 10 January (as you can see on Google Covid statistic) is at 454 people.

Minister of Maritime and Investment, Luhut Binsar Panjaitan, stated just hours ago

 

[Indos]

Govt to use carrot, stick in coal DMO policy​

Heavy equipment is used to move coal at the Kertapati coal terminal belonging to state-owned PT Bukit Asam in Palembang, South Sumatra, in this undated photograph.(Antara/Nova Wahyudi)

Divya Karyza and Vincent Fabian Thomas (The Jakarta Post)
PREMIUM
Jakarta ● Thu, January 13, 2022



The government has announced it will lift the coal export ban for some companies as the supply situation at state-owned electricity company PLN is improving.

The Office of the Coordinating Maritime Affairs and Investment Minister said on Wednesday that PLN had reported in a coordination meeting that it had secured 15 days’ worth of supply for its coal-fired power plants and that the government would therefore allow 37 coal-loaded vessels to depart for export markets.

“[The implementation of this regulation] has to be monitored collectively so that [we can] improve domestic governance and prevent similar [crises] in the future,” Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said in a statement.

Govt to use carrot, stick in coal DMO policy

Indonesia will lift the coal export ban for mining companies that have met their domestic market obligations (DMOs) to ensure supplies for state electricity company PLN.

www.thejakartapost.com

 

[Indos]

Gov’t Forms State-Owned Food Holding to Boost Supply Chain

BY :JAYANTY NADA SHOFA
JANUARY 12, 2022

Jakarta. The Indonesian government on Wednesday officially launched a state-owned food holding company, which goes by the name ID Food, in a bid to boost the food supply chain. State-run agroindustry firm Rajawali Nusantara Indonesia (RNI) will serve as the parent company of the food holding.

ID Food encompasses salt maker Garam, agribusiness company Sang Hyang Seri, logistics company Perusahaan Perdagangan Indonesia, fishery Perikanan Indonesia, livestock company Berdikari. These five state-owned enterprises (SOEs) already have their shares transferred to RNI.

“We encourage ID Food to boost our food supply chain, which so far has been lacking [in terms of] certainty and coordination. We are talking about improvements to the SOEs’ food supply chain,” SOE Minister Erick Thohir said at ID Food’s launch in Jakarta on Wednesday.

Indonesia’s supply chain is currently facing uncertainty, according to Erick.

Soaring crude palm oil (CPO) price has made cooking oil more expensive. Although the high CPO price is a boon to export, households are worrying about the skyrocketing palm oil price.

“The price of fertilizer raw materials also jumped up to threefold,” Erick added.

The minister urged ID Food to embrace technology and make innovations, so Indonesia’s food products could compete on a global scale.

“Neighboring countries already have their flagship products based on research and technology. research and technology. And here we are still stuck with our supply-demand,” Erick said.

Trade Minister Muhammad Lutfi projected that demand for staples would likely exceed its supply in 2022. To meet the high demand, the Trade Ministry is preparing the logistics and procurement.

“We do hope that ID Food can help the government in making sure that the [staple] goods are available and affordable,” Lutfi said.

The ID Food holding aims to strengthen national food security and drive inclusivity of farmers and fishermen, according to RNI president director Arief Prasetyo Adi.

“We wish to become a world-class food company. Hopefully, this holding can play a bigger role in the national food ecosystem for the Indonesian people,” Arief told the same conference.

The Presidential Staff Office recently conducted a survey on cooking oil prices in Jakarta's markets, news outlet Antara reported on Wednesday.

Packaged cooking oil price in several markets in Central Jakarta and East Jakarta reaches about Rp 20,000-Rp 21,000 (about $1.39-1.46) per liter, whereas bulk cooking oil is priced at Rp 19,000-Rp 20,000 per kg.

Gov’t Forms State-Owned Food Holding to Boost Supply Chain

The government projected that demand for staples will likely exceed its supply this year.

jakartaglobe.id

 

[Indos]

The Chairman of Indonesia coal and energy providers organization, Anggawira, rejected the proposed plan by Indonesia minister, Luhut Binsar Panjaitan, to use market price to sell coal in domestic market. Previosly Luhut wants the coal price in Indonesia use international price but by increasing levy to Indonesian coal export ( the levy will be used to subsidized Indonesia state owned electricity company, PT PLN).

Indonesia parliament also rejected the government plan after they had a meeting Yesterday. More preferable option is to keep domestic coal price at 70 USD at maximum but improving the state control on each coal producers, some say import ban should be considered every month which will target only coal producers who are naughty and dont abide to government market obligation law ( 25 % coal production must be used for domestic needs).

Indonesian coal producers are highly dominated by local companies and the giant ones like Bumi Resources, PT Kaltim Prima Coal, and PT Arutmin Indonesia are subsidiaries of Indonesian conglomeration whose main business are manufacturing (Bakrie Brothers), and other giant coal minings are also shifting away from coal mining and try to build manufacturing industry like Indika Energy and Adaro. They prefer current coal price cap at 70 USD per ton to make Indonesia domestic industry competitive.

 

[Indos]

AlhamduliLLAH, I hope this year we can maintain it or if possible increase it into 40 billion USD trade surplus. As we can see in early year of 2022, commodities price are still high.

Trade surplus hits 14-year high in 2021

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Cranes work to load and unload containers at Tanjung Perak Port in Surabaya, East Java, in an undated photo. The port, one of the country's biggest, is operated by state-owned port operator Pelindo III.(Antara/Zabur Karuru)


Dzulfiqar Fathur Rahman (The Jakarta Post)
PREMIUM
Jakarta

Mon, January 17, 2022

Indonesia recorded in 2021 its highest goods trade surplus since 2007 as commodity prices surged amid the global economic recovery from the COVID-19 pandemic.

Statistics Indonesia (BPS) reported Monday that the country’s exports reached US$231.54 billion and imports $196.20 billion in 2021. This resulted in a surplus worth $35.34 billion.

"We hope we can maintain this trend or increase it," BPS head Margo Yuwono said in a press briefing on Monday. "Of course, this will help with the government's efforts to restore the economy faster, as we all expect."

The record trade surplus took place amid surging commodity prices, including Indonesia’s key export commodities of coal and crude palm oil (CPO), amid the global economic recovery, especially in developed countries.

Newcastle coal futures, for example, peaked at $269.50 per ton on Oct. 5, 2021, according to data published by economic data provider Trading Economics. The index has returned to its late October level recently.

Trade surplus hits 14-year high in 2021

The full-year surplus amounted to US$35.34 billion amid surging commodity prices, the highest since 2007.

www.thejakartapost.com

 

[Indos]

Indonesia to conduct B40 road test in February​

Nikolai Kunz pumps biodiesel into his car at Dogpatch Biofuels on March 22, 2013 in California, US. California is one of the nation's leaders in venture capital funding for green technology, green tech patents and the growth in clean power generation, resulting in reduced greenhouse gas emissions despite a growth in population. (AFP/Getty Images/Justin Sullivan)


Vincent Fabian Thomas (The Jakarta Post)
PREMIUM
Jakarta ● Tue, January 18, 2022


The government will conduct a B40 biodiesel road test in February as it pushes ahead with its plan to use more palm oil-derived fuel in transportation.

The Energy and Mineral Resources Ministry said on Monday that the test would involve numerous producers and government institutions, namely the Indonesian Automotive Industry Association, the Indonesian Biofuel Producers Association (Aprobi), state-owned oil and gas company Pertamina, the Indonesian Oil Palm Plantations Fund Management Agency (BPDPKS) and the Industry Ministry.

“The test will take up to five months,” the ministry’s New and Renewable Energy and Energy Conservation Director General Dadan Kusdiana told reporters during a virtual press conference on Monday.

https://www.thejakartapost.com/business/2022/01/17/govt-to-conduct-b40-road-test-in-february.html

 

[Indos]

Trade balance surplus boosts external resilience: Minister
6 hours ago

Loading and unloading activities at Tanjung Priok Port, Jakarta. ANTARA PHOTO/Akbar Nugroho Gumay/foc

In the midst of various global uncertainties, Indonesia was still able to record an impressive performance in terms of the trade balance

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto believes that the trade balance surplus in 2021 will boost resilience of Indonesia's external sector to make it stronger to face challenges in 2022.

"In the midst of various global uncertainties, Indonesia was still able to record an impressive performance in terms of the trade balance. This performance will increase the resilience of Indonesia's external sector, so that we are stronger in facing various challenges that are expected to continue this year," Hartarto noted in an official statement received here on Tuesday.

In 2021, Indonesia's trade balance surplus was recorded at US$35.34 billion. The surplus value is the highest on record since the last 15 years or since 2006 when the trade surplus had reached $39.37 billion.

The surplus performance during 2021 was supported by the export value that had reached $231.54 billion, or grew by 41.88 percent year-on-year, and was driven by exports of downstream superior commodities, such as crude palm oil (CPO).

This encouragement is apparent from the exports of animal fats and oils or vegetable oils, which during 2021, had reached $32.83 billion, or an increase of 58.48 percent year-on-year.

Apart from CPO, Hartarto noted that the downstream nickel commodity also strengthened Indonesia's export performance, with the export growth of nickel and processed goods from these commodities growing by 58.89 percent year-on-year to $1.28 billion.

"This achievement indicates that Indonesia's economic recovery continues, which is also reflected in the increased creation of added value in the manufacturing sector. Cumulatively, non-oil and gas exports from the processing industry from January to December 2021 rose 35.11 percent year-on-year to US$177.11 billion," he remarked.

The value of Indonesia's imports in 2021 also increased to $196.20 billion, or grew 38.59 percent year-on-year.

Indonesia's import structure in 2021 was dominated by the imports of raw materials and auxiliary materials of 75.12 percent from the total imports, followed by capital goods of 14.59 percent of the total imports, and consumer goods of 10.29 percent of the total imports. This structure indicates that the Indonesian economy has been productive in creating added value, both for domestic and export needs.

The consistent decline in COVID-19 cases in the last few months in 2021 prompted the government to impose easing restrictions on mobility, so that economic activity runs more smoothly.

However, Hartarto said he would remain vigilant about the potential spike in cases of the Omicron variant of COVID-19, which is expected to peak at the end of January or early February 2022.

"With the increasingly effective control of COVID-19 and good anticipatory measures against the spread of the Omicron variant, along with the implementation of strict health protocols, we are optimistic that COVID-19 cases will continue to decline, so that these developments are able to accelerate economic recovery. The trade surplus that continues to be stable in 2021 is also due to the solid performance of Indonesia's leading commodity exports," he stated.

Hartarto affirmed that the positive performance of the trade balance in 2021 will continue to be maintained by optimizing various policies, especially in encouraging more exports of value-added commodities.

Hartarto added that positive performance of the trade balance in 2021 will continue to be maintained by optimizing various policies, especially in encouraging more exports of value-added commodities.

Related news: Indonesia's trade balance reaches US$35.34 billion in 2021
Related news: Finance Ministry projects positive export-import performance
Related news: Indonesia records $5.73-billion trade balance surplus in October 2021

Reporter: Katriana
Editor: Sri Haryati
COPYRIGHT © ANTARA 2022

Trade balance surplus boosts external resilience: Minister

Coordinating Minister for Economic Affairs Airlangga Hartarto believes that the trade balance surplus in 2021 will boost resilience of Indonesia's ...

en.antaranews.com

 

[Indos]

WEF Davos Agenda: Global Economic Outlook​

7,801 views
Streamed live on Jan 21, 2022

CNBC's Geoff Cutmore explores the global economic outlook with ECB President Christine Lagarde, Bank of Japan Governor Haruhiko Kuroda, IMF Managing Director Kristalina Georgieva, Brazilian Economy Minister Paulo Guedes and Indonesian Finance Minister Sri Mulyani Indrawati.

 

[Indos]

Indonesia to have seven new smelters this year​

President Joko "Jokowi" Widodo (white shirt, left) during the groundbreaking ceremony of PT Freeport Indonesia's copper smelter in Gresik, East Java, on Oct. 12, 2021.(BPMI Setpres/Lukas)


Divya Karyza (The Jakarta Post)
PREMIUM
Jakarta ● Tue, January 25, 2022


A record-high seven metal smelters are scheduled to come online this year as companies catch up on project deadlines amid the ongoing economic recovery.

Energy and Mineral Resources Ministry data from Jan. 20 showed that 2022 would see the highest one-year increase in new smelter units since at least 2015, a year after Indonesia introduced a regulation to ban all raw metal exports.

The seven smelters comprise two nickel, one lead, one zinc, one alumina and two iron smelters, some of which were carried over from last year. These new facilities would bring the total number of operational smelters in Indonesia to 28 by the end of the year.

Indonesia to have seven new smelters this year

The government is racing to operate 53 smelters by 2024 to meet downstreaming goals.

www.thejakartapost.com

 

[Abid123]

Indonesia to have seven new smelters this year​

View attachment 810988
President Joko "Jokowi" Widodo (white shirt, left) during the groundbreaking ceremony of PT Freeport Indonesia's copper smelter in Gresik, East Java, on Oct. 12, 2021.(BPMI Setpres/Lukas)


Divya Karyza (The Jakarta Post)
PREMIUM
Jakarta ● Tue, January 25, 2022


A record-high seven metal smelters are scheduled to come online this year as companies catch up on project deadlines amid the ongoing economic recovery.

Energy and Mineral Resources Ministry data from Jan. 20 showed that 2022 would see the highest one-year increase in new smelter units since at least 2015, a year after Indonesia introduced a regulation to ban all raw metal exports.

The seven smelters comprise two nickel, one lead, one zinc, one alumina and two iron smelters, some of which were carried over from last year. These new facilities would bring the total number of operational smelters in Indonesia to 28 by the end of the year.

Indonesia to have seven new smelters this year

The government is racing to operate 53 smelters by 2024 to meet downstreaming goals.

www.thejakartapost.com

What was the reason behind Indonesia's economic boom during the early 2000s?

 

[Indos]

What was the reason behind Indonesia's economic boom during the early 2000s?

Actually not really boom like China and India economic growth rate during 2000-2015 period since we only manage to have 6 percent economic growth. For the last 8 years the growth rate is moderated into 5-5.5 percent until 2019.

But I will try to explain why the economy can reach 6 percent growth rate during 2000-2012 period

1. Political stability after we do the political transition from authoritarian government into democracy peacefully with the help of Allah
2. The Muslim society become more conservative and abide with Islamic rule that translate into the fight against corruption behavior are getting stronger and more blessing coming from Allah.
3. The success of Habibie Presidency during 1998-1999 to stabilize Rupiah and do many reform in our law for the preparation of general election in 1999.
4. The fall of Rupiah in one side create huge crisis economically, but in other side it make Indonesia export products competitive.
5. Government and Central Bank effort to solve the debt crisis coming from private sector and make the economy runs again, one of them to bail out them and runs the companies under state owned company ministry before selling them again under strategic selling to private sector ( mostly bough by foreign entities )
6. Optimism among Indonesian and of course the feeling of happy and content after we become a true democratic country. This then translate into higher domestic spending as around 60 percent of our GDP comes from domestic spending.
7. Financial institution reform that include prudent economic policy being made brings confident to the financial market and foreign investors ( Foreign Direct Investment contribute to 50 % of Indonesia total investment )
8. The effort coming from private sector, big and small. Just to remind you guys that small and medium size companies in Indonesia dominate the economy and contribute into 60 % of our GDP and large majority of them fall into a category of running businesses in informal sector.
9. State owned enterprises reformed which is very crucial since out of 10 biggest banks in Indonesia, 7 are state owned banks, including the first and second biggest. Only one bank owned by private and public which is BCA, and the other two are foreign owned banks. BCA for some time is under government bail out before being sold to the market, around 50 % stakes are now owned by public. Without healthy and solvent banking system, it is difficult to push the private sector to achieve significant growth.
10. The present of KPK (Indonesia Anti Corruption Commission) brings hope to all of our people, the success of this institution is also acknowledged world wide.
11. Commodities boom that elevated many of our commodities prices
12. Our civil society activism like in anti corruption campaign effort (Indonesia Corruption Watch/ICW) and rule of law ( Legal Aid Institute/LBH) do help bring optimism to our people and push the government to be cleaner and more service oriented.