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Indonesia regains upper-middle income rank on growth rebound

Export, price caps​

The IDD and Masela projects, combined with BP’s Tangguh Train-3 project and Pertamina’s Jambaran Tiung Biru, would provide an additional 3.5 billion cubic feet per day gas production to the current 5.3 billion cubic feet per day output, SKK Migas data showed.

Indonesia requires oil and gas producers to sell 25 per cent of their production domestically, but growing local demand has led to calls by some government officials to halt exports entirely, which could deter developers.

“This needs to be reconsidered, allowing foreign investors to profit from their investments,” said San Naing, an analyst at BMI Research, part of Fitch Group.

Any moves to restrict exports “could potentially have a considerable impact on the economics of our project”, Inpex’s Ueda told reporters in Tokyo on Wednesday.

 
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Vena Energy, Suntech, others explore solar panel parts production in Indonesia​

Credit: REUTERS/Willy Kurniawan

JAKARTA, Aug 7 (Reuters) - Four foreign renewable energy companies said on Monday they will jointly explore opportunities to produce solar panel components and energy storage systems in Indonesia.

Singapore-based Vena Energy, China's Suntech and REPT Battero, and US-based Powinaim to produce components of solar photovoltaic panels and energy storage systems, which will also be used in Vena Energy's solar project in Indonesia's Riau Islands.

The solar power plant will have a capacity of up to 2 gigawatts and battery systems with a potential storage capacity of more than 8 gigawatt hours, the companies said in a statement.
Vena Energy chief executive Nitin Apte said the investment would reach billions of dollars, according to news website Bisnis.com.

Indonesia is aiming to reach net-zero emissions before 2060 and wants to boost its use of renewable energy to do so. More than half the country's power demand is currently sourced from coal, of which it is a major global producer.

(Reporting by Fransiska Nangoy; Editing by Kanupriya Kapoor)
((Fransiska.Nangoy@thomsonreuters.com)

 
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This is the List of Priority Expenditure Allocations for the 2024 State Budget​

Wednesday
16 August 2023
7:17 PM

Jakarta, 16/08/2023 Ministry of Finance - State expenditure in the 2024 State Budget will be used to complete national strategic projects, eradicate absolute poverty and stunting, improve the quality of education and health, improve food and energy security and strengthen national defense.

"To realize superior, innovative, integrity, and competitive human resources, an education budget of Rp660.8 trillion or 20% of the state budget is prepared reflected in the allocation of central government spending of Rp237.3 trillion, transfers to regions of Rp346.6 trillion, and investment financing of Rp77 trillion," explained the President of the Republic of Indonesia, Joko Widodo, in his Speech Delivering Government Information on the 2024 Draft Law on Budget and Expenditure Revenue along with The Financial Memorandum, on Wednesday (16/08), at the Plenary Session of the House of Representatives of the Republic of Indonesia, Jakarta.

The President said that Indonesia must be able to take advantage of the demographic bonus and be ready to face technological disruption so that Indonesian human resources can be productive, innovative, globally competitive, have integrity, have noble character, while maintaining the nation's cultural identity.

"To present healthy and productive human resources, the health budget is planned at Rp186.4 trillion or 5.6% of the state budget," continued the President.

The health budget is directed at transforming the health system, encouraging the development of a strong and competitive pharmaceutical industry, improving access and quality of primary and referral services, ensuring the availability of reliable health care facilities from upstream to downstream, streamlining the JKN program, and accelerating the reduction in stunting prevalence to reach 14% by 2024 which is carried out through expanding coverage of all districts / cities in Indonesia by strengthening the synergy of various institutions.

To accelerate poverty reduction and improve welfare, as well as long-term human resource development to break the chain of poverty, the social protection budget in the 2024 State Budget is allocated IDR 493.5 trillion.

In line with this, the President said that social protection program reform is directed at improving lifelong and adaptive social protection, targeted and target-based subsidies for beneficiaries, improving the recipient database, among others, through strengthening socio-economic registration data, and accelerating the elimination of extreme poverty by 2024.

"To encourage productivity, mobility and connectivity, as well as equitable equity, the infrastructure budget is allocated Rp422.7 trillion," continued the President.

This infrastructure budget is directed at strengthening the provision of basic services; increased productivity through connectivity and mobility infrastructure; improvement of irrigation networks through the construction of dams, primary, secondary, and tertiary irrigation canals; provision of affordable, reliable and sustainable energy and food infrastructure; equitable access to information and communication technology; and support strategic projects, including the construction of IKN.

"The economic transformation strategy in the field of food security is allocated Rp108.8 trillion, which is prioritized for: increasing food availability, access, and stabilization of prices; increased domestic food production; Amplifieran institutional farmer; and financing support and farm business protection; acceleration of food infrastructure development and rehabilitation; development of food estate areas; and strengthening national food reserves," said the President.

In addition, the President also said that the defense security industry also continues to be encouraged to progress and be independent with the support of the State Budget, among others, it is used to meet the needs of defense equipment gradually with the support of the domestic defense industry to meet the minimum basic strength. (nug/hpy)

 
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Indonesia president tables US$216bil 2024 budget to parliament​


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Indonesian President Joko Widodo delivers his Annual Budget speech, ahead of the country's Independence Day, at the parliament building in Jakarta on Aug 16, 2023. - Reuters
  • Wednesday, 16 Aug 2023
    4:57 PM MYT
JAKARTA (Reuters): Indonesian President Joko Widodo on Wednesday proposed to parliament a budget of 3,304.1 trillion rupiah ($216.24 billion) for next year, setting a target of 5.2% for economic growth in what will be his final year in office.

The budget proposal is about 6% bigger than this year's spending plans, which have been revised up to 3,123.7 trillion rupiah (204 billion USD).


Jokowi, as the president is popularly known, said he targets the 2024 budget deficit to be at 2.29% of gross domestic product, roughly the same as the latest outlook for this year's deficit of 2.28%.

"The 2024 state budget architecture must be able to respond to economic dynamics, address challenges and optimally support the development and welfare agenda," Jokowi said in his annual budget speech to parliament, a day ahead of the anniversary of Indonesia's independence.

Government revenues were expected to rise 5.5% next year to 2,781.3 trillion rupiah, from this year's 2,637.2 trillion rupiah.
Jokowi said inflation will be managed around 2.8% next year, within the central bank's target range of 1.5% to 3.5% for 2024. Annual inflation in July was 3.08%.


 
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Latest World Bank projection. Saying Indonesian gov reduce spending shows unprofessional of World Bank staff. The Chief in Indonesia is non Indonesian. Gov spending keeps increasing, but due to much larger state revenue, Indonesian can lower its budget deficit from around 6 % of GDP during Covid period into lower than 3 % of GDP since last year.

 
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