Indonesia Indonesian Economy News and Updates

[Gary]

I get what you are saying....but honestly I think we need to look at the (elitist + business + political) population/establishment as a whole for each country.

PRC one is really quite bad imo. I have dealt with mainlanders across a fair spectrum from this elitist subset...and they are demonstrably worse overall to most major countries due to underlying superiority complex esp with non-white, non-han races.

This is for example why we see Indonesians and Indians targetted in most atrocious ways at certain other forum where this complex is allowed to come to full establishment...and there is no calling out of it by their own more reasonable types (that once existed but now all gone or changed seemingly). It is not even their elitist group, but just the tiers below it (given who picks up english in China or emigrated etc).

In larger context, it extends to say what/how Chinese elitists (in their sustained discourse when it comes to ASEAN etc) use Indonesia diversity (say chinese indonesians w.r.t pribumi) and pluralistic resilience as some kind of cherry picked wedge issue too...all the while doing what they do to their own non-Han minority groups quite openly now.

Although I do give benefit of doubt there is still only some transmission to the laypeople of the elitist group's attitudes/behaviour/thinking etc (and done under the circumstance of power/stability control), so we cannot judge entire country on this subset...and same for PRC.

But there is much more we have to analyse than just transactional side of relationships....and yes the West is definitely much to be improved there on how they conduct that (hypocritic sermons etc).

But definitely they are nowhere near one (as complete working unit) like that takes shape under totalitarian mindset and middle kingdom ego.

@Indos @#comcom

Relying so much on China when it comes to trade could be a double edge sword.

They could weaponized it at their whims. Just look at the recent Australia goods boycott for example

 

[Nilgiri]

 

[Madokafc]

Waskita Karya bags contracts worth Rp15 trillion as of October​

23rd Nov 2020 23:03

Jakarta (ANTARA) - State-owned construction firm PT Waskita Karya (Persero) Tbk has secured new contracts worth Rp15 trillion as of October, 2020, which is Rp11 trillion lower than the target of Rp26 trillion set for this year.

“The new contracts have come from business development projects, government, state-owned companies, and private companies. As such, the total contracts managed by the company until the end of 2020 have reached Rp65 trillion,” Waskita Karya president director Destiawan Soewardjono said in a statement released on Monday.

Waskita is seeking to secure new projects to keep the balance between business development investment and external projects in the future, he added.

Related news: Waskita Karya acquires new contracts worth Rp3.2 trillion in Sept-2020

The step has been taken to strengthen cash flow so that it can contribute 50 percent to the total new contracts every year, he revealed.

"Direct projects from the external sector are badly needed to finance fixed costs of the company every year," he explained.

Waskita Karya is also preparing a strategy for restructuring its debt. The strategy involves settling the cash flow problem due to the postponement of the company's divestment plan as a result of the COVID-19 pandemic and the prioritized government budget allocations for handling the pandemic. (INE)

Related news: Waskita Karya bags contracts for three irrigation projects

Related news: Waskita Karya bags WSO award on occupational health and safety

Translated by: Royke Sinaga/Suharto
Editor: Yuni Arisandy Sinaga

Waskita Karya bags contracts worth Rp15 trillion as of October

State-owned construction firm PT Waskita Karya (Persero) Tbk has secured new contracts worth Rp15 trillion as of October, 2020, which is Rp11 trillion lower ...

en.antaranews.com

 

[Madokafc]

Disabled person in Indonesia, named Khosikin able to open motorcycle modified business for disabled. His own experience become his greatest assets to open the business

 

[Madokafc]

Steel industry maintaining growth despite pandemic: ministry​

7 hours ago



Secretary general of Industry Ministry, Achmad Sigit Dwiwahjono (center), director general of metal industry, machinery, transportation, and electronics at the ministry, Taufiek Bawazier (left), and president director of PT Sunrise Steel, Henry Setiawan (right), paid a visit to the company's plant in Mojokerto, East Java on Wednesday (November 25, 2020). (ANTARA/HO-Industry Ministry/sh)

Jakarta (ANTARA) - The steel industry has maintained its steady growth despite the COVID-19 pandemic, recording 2.3 percent growth in the second quarter and 5.6 percent in the third quarter of 2020, a senior Industry Ministry official said.

"Surely this is encouraging. With new investment in the sector, we hope that the industry would increase its contribution to the national economy," director general of metal industry, machinery, transportation, and electronics at the Industry Ministry, Taufiek Bawazier, said in a statement here on Thursday, after the launch of the second production line of aluminum-zinc coated steel (BjLAS) at PT Sunrise Steel.

He expressed the hope that new investment in the steel industry will continue to rise on account of the government's import substitution program.

“Some products would need import substitution from its upstream industry. Such as iron ore, steel billet to produce its derivative products, and hot-rolled coil (HRC) to become cold-rolled coil (CRC). We hope that PT Sunrise Steel can invest in this segment,” he elaborated.

Related news: National steel producer PT GRP pumps in Rp12 trillion investment

President director of PT Sunrise Steel, Henry Setiawan, said the launch of the second line of production for light steel (BjLAS) has confirmed the company's position as the largest BjLAS producer in Indonesia, with a production capacity of 400 thousand tons per year.

Setiawan praised the ministry's efforts to boost the development of the steel industry through various regulations and protections. "This has bolstered down-streaming in the steel industry,” he remarked. (INE)

Related news: Govt urged to stop SNI marking manipulation for steel products




Reporter: Sella P Gareta, Sri Haryati
Editor: Yuni Arisandy Sinaga
COPYRIGHT © ANTARA 2020

Steel industry maintaining growth despite pandemic: ministry

The steel industry has maintained its steady growth despite the COVID-19 pandemic, recording 2.3 percent growth in the second quarter and 5.6 percent in the ...

en.antaranews.com

Indonesian acute high import of crude steel had hit our current account deficit quite hard, there is effort to mitigate the problems by investing more on steel mill, the one in Sulawesi will had 20 million tonnes capacity by 2024 the latest.

 

[Madokafc]

Indonesia's capacity utilization recovers: Industry Ministry​

25th November 2020



Industry Minister Agus Gumiwang Kartasasmita. The industry sector has been badly hit by the COVID-19 pandemic, with industrial capacity usage dropping 40 percent from 76.29 percent in January-March, 2020. (ANTARA/HO-Industry Ministry/sh)


Industrial utilization during April-October 2020 has recovered to 56.50 percent.
Jakarta (ANTARA) - Indonesia’s industrial capacity utilization recovered and increased to 56.50 percent during the April-October period this year, head of industry research and development at the Industry Ministry, Doddy Rahadi, said.

"Industrial utilization during April-October, 2020 has recovered to 56.50 percent," Rahadi said here on Wednesday.

The sector has been badly hit by the COVID-19 pandemic, with industrial capacity utilization dropping 40 percent from 76.29 percent in January-March, 2020, he added.

However, it recovered slowly after the government launched stimulus packages to fight the impact of the coronavirus pandemic, he noted.

In the third quarter of the year, the growth of the non-oil and gas processing industry contracted 4.02 percent, but it still showed an improvement compared to growth in the second quarter, which shrunk 5.74 percent.

The growth was supported by positive growth in other industries such as chemical, pharmaceutical, and traditional medicines, which showed 14.99 percent growth, basic metal 5.19 percent, other processing industry 1.15 percent, and food and beverage 0.66 percent.

Between January and September this year, exports in the industry sector booked a surplus of US$8.8 billion, with three industries recording the largest contribution — food and beverages with US$21.38 billion, basic metal US$16.96 billion, and chemical and chemical goods US$9.54 billion.

Investment during the period reached Rp201.9 trillion, with the largest contribution coming from the basic metal industry (Rp69.79 trillion), food and beverages (Rp40.53 trillion), and chemical and pharmaceutical industry (Rp35.63 trillion).

Industry has been a strategic sector for the country's economy with the contribution of non-oil and gas processing to Gross Domestic Production at 17.90 percent, the largest share compared to any other sector, Rahadi said.

The sector absorbed 24.70 million workers in August this year, mostly in the food and beverage industry, which hired 4.72 million workers.

Related news: Exports of creative economic products bolster tourism recovery
Related news: Kadin calls to strengthen financial system for economic recovery








Reporter: Sella P Gareta, Sri Haryati
Editor: Rahmad Nasution
COPYRIGHT © ANTARA 2020

Indonesia's capacity utilization recovers: Industry Ministry

Indonesia’s industrial capacity utilization recovered and increased to 56.50 percent during the April-October period this year, head of industry ...

en.antaranews.com

 

[Indos]

Indonesian acute high import of crude steel had hit our current account deficit quite hard, there is effort to mitigate the problems by investing more on steel mill, the one in Sulawesi will had 20 million tonnes capacity by 2024 the latest.​

As import mainly coming from RCEP countries like Vietnam and China, it will be hard to increase our domestic steel production absorption. There is till 1-2 years left before RCEP goes into effect, we will see whether giant steel producer like Krakatau Steel is able to compete within RCEP frame. Currently there is supply problem that benefit Krakatau Steel due to pandemic, but we will see much clearer picture in the fourth quarter period.

 

[Madokafc]

As import mainly coming from RCEP countries like Vietnam and China, it will be hard to increase our domestic steel production absorption. There is till 1-2 years left before RCEP goes into effect, we will see whether giant steel producer like Krakatau Steel is able to compete within RCEP frame. Currently there is supply problem that benefit Krakatau Steel due to pandemic, but we will see much clearer picture in the fourth quarter period.

Indonesia crude steel consumption pre Covid is around 16 million tonnes and more than 10 million of them must be imported, by 2024 Indonesia surely will consum more steel annually as many infrastructure and other steel related industry in Indonesia is keep growing. Indonesia actually one of the largest producer of processed steel in the region, but had almost no production capacity for crude steel before 2012.

 

[trishna_amrta]

underlying superiority complex esp with non-white, non-han races.

YES Exactly. Finally, someone who actually saying it out loud about it. For those of us who need to deal with all kind of people (various countries, ethnicities) dealing with them is always problematic in international commerce / business. I once nearly slap someone face (a Singaporean han guy) with a bundle of Greenback because of it. He did quite shock because of it which is exactly my intention of doing it

 

[Logam42]

Well, considering we just signed into the RCEP, Indonesia really needs improve competitiveness. One way is to allow easier usage of foreign workers, and a relaxation on the negative investment list.

Another aspect is that we need to find out how to conduct supply chain domestication, importing in the most base material possible and exporting in as a complete product as possible. This includes producing crude steel, active ingredients for medicine, and improving the range of capital goods we can domestically produce. With the RCEP rolling in, we will probably have to rely on SOEs yet again, as private companies will just take the easy way out and just import until a sudden supply chain disruption occurs but by then it would be too late.

 

[Umigami]

https://twitter.com/i/web/status/1332098558669963265

Any update on local made Pandur?

 

[Madokafc]

Presidential regulation to expedite realization of strategic projects​

27th Nov 2020 16:48

Jakarta (ANTARA) - The Indonesian government has issued a presidential regulation to boost the accelerated realization of national strategic projects out of the 269 projects proposed by ministries, regional governments, and state-owned and privately-run companies.

The Committee for Acceleration of Priority Infrastructure Delivery (KPPIP) was mandated in early 2020 to evaluate the proposed national strategic projects, Coordinating Minister for Economic Affairs Airlangga Hartarto stated here on Friday.

"The government has meticulously evaluated all the proposed national strategic projects. The evaluation took into account the previous list of national strategic projects and new proposals using various criteria," he remarked.

Presidential Regulation Number 109 of 2020 is the third round of amendment to Presidential Regulation Number 3 of 2016 on the acceleration of national strategic projects. Thus, 100 projects, worth Rp588.9 trillion, have been completed since 2016.

Evaluation of the proposed national strategic projects was based on basic criteria comprising compatibility of the projects with the medium-term national development plan (RPJMN), strategic plan, and spatial plan.

Hartarto noted that the evaluation also took into account strategic criteria that included playing a strategic role in national development, inter-sectoral harmony, and regional project distribution.

The other considerations encompass feasibility study, investment value of over Rp500 billion, and construction completion until the third quarter of 2024 at the latest, barring oil and gas mining projects that can commence construction work no later than the third quarter of 2024, he explained.

On the basis of the criteria, 201 projects from 10 programs covering 23 sectors, with investment totaling Rp4,809.7 trillion, have been designated as the newest national strategic projects in the presidential regulation, he stated.

The minister remarked that the various national strategic projects expanded the scope of national strategic projects to cover 10 programs as compared to three programs earlier.

The programs cover ensuring economic equality and electricity infrastructure development, border area development, exit toll road development, and strategic national tourism zone development.

The other programs include waste-to-energy processing installation and the development of smelter, national food estates, and super hub.

Related news: Jokowi urges staff to prioritize execution of strategic projects
Related news: Indonesia builds seven irrigation networks to spur economic recovery
Related news: Jaswita Jabar offers four strategic investment projects at 2020 WJIS
Translated by: Astrid Faidlatul H/Suharto
Editor: Sri Haryati

Presidential regulation to expedite realization of strategic projects

The Indonesian government has issued a presidential regulation to boost the accelerated realization of national strategic projects out of the 269 projects ...

en.antaranews.com

 

[Madokafc]

Another Autobahn section had been completed

WTR operasikan Tol Krian-Manyar sepanjang 29 km​

Sabtu, 28 November 2020 17:18 WIB

Jakarta (ANTARA) - PT Waskita Toll Road (WTR), melalui badan usaha jalan tol PT Waskita Bumi Wira (WBW), mulai mengoperasikan Jalan Tol Krian-Legundi-Bunder-Manyar (KLBM) sepanjang 29 km pada Sabtu ini.

Ruas tol KLBM yang dioperasikan itu terdiri atas tiga seksi yakni Seksi 1 sepanjang 9,77 km yang menghubungkan Gerbang Tol Lebani Gresik (Krian) menuju Gerbang Tol Belahanrejo; Seksi 2 sepanjang 13,2 km yang menghubungkan Gerbang Tol Belahanrejo menuju Gerbang Tol Cerme; dan Seksi 3 sepanjang 6,02 km yang menghubungkan Gerbang Tol Cerme menuju Gerbang Tol Bunder Gresik.

Direktur Utama PT Waskita Bumi Wira (WBW) Herwidiakto dalam keterangan tertulis di Jakarta, Sabtu, mengatakan dengan dioperasikannya jalan tol KLBM Seksi 1-3 (Krian-Legundi-Bunder) diharapkan akan menjadi urat nadi logistik dari Kabupaten Sidoarjo menuju Kabupaten Gresik dan sebaliknya.

"Jika sebelumnya pengguna tol dari arah Mojokerto menuju ke arah Gresik harus memutar Jalan Tol Trans Jawa melewati Kota Surabaya dengan memakan waktu 1 jam 30 menit, maka dengan adanya Jalan Tol KLBM ini diharapkan mampu mengurangi jarak tempuh dari pengguna tol tersebut yang hanya memakan waktu 35 menit," katanya.

Untuk sementara, jalan tol KLBM belum terkoneksi dengan jalan tol Sumo dan Kebomas yang sampai dengan saat ini masih dalam proses konstruksi.

WBW selaku BUJT pemilik konsesi dan pengelola ruas tol tetap melakukan protokol pencegahan penyebaran Virus Covid-19. Baik Waskita Toll Road maupun Waskita Bumi Wira tetap memperhatikan tingkat keselamatan dan kesehatan kerja (K3) dalam setiap proyek pembangunan ruas tol.

Baca juga: Waskita Karya terus ekspansif bangun infrastruktur

Baca juga: Waskita Toll Road raih dana segar Rp550 miliar dari penerbitan RDPT

Pewarta: Ade irma Junida
Editor: Budi Suyanto
COPYRIGHT © ANTARA 2020

WTR operasikan Tol Krian-Manyar sepanjang 29 km

PT Waskita Toll Road (WTR), melalui badan usaha jalan tol PT Waskita Bumi Wira (WBW), mulai mengoperasikan Jalan Tol Krian-Legundi-Bunder-Manyar (KLBM) ...

m.antaranews.com

 

[Umigami]

China solves Freeport’s $3 billion problem in Indonesia​

Asia Times exclusive reveals that China's Tsingshan Steel has agreed to build a government-mandated copper smelter

JAKARTA – The long drawn-out saga of mining giant Freeport Indonesia’s (PTFI) proposed new copper smelter has taken a new turn with China’s Tsingshan Steel agreeing to build the US$1.8 billion facility at its Weda Bay nickel processing complex in Halmahera, eastern Indonesia.

Maritime Affairs and Investment Coordinating Minister Luhut Panjaitan disclosed in an interview with Asia Times that the deal is expected to be signed before next March. “We are happy with the agreement,” he said, “but the two sides are still in detailed discussions.”

Up to now, the choices have been to either expand Mitsubishi’s existing copper smelter at Gresik, East Java, build a new and much more costly smelter at a nearby industrial estate or shift the whole project to Halmahera as part of an integrated smelting hub.

Panjaitan and other sources familiar with the deal say Tsingshan has agreed to complete the smelter within 18 months, leaving Freeport to build a $250 million extension to the Mitsubishi plant in what could be seen as a token gesture of its commitment to the in-country processing of all of its ore.

Mitsubishi and Freeport signed an agreement on November 13 to add 300,000 tons to the current facility’s one million ton capacity, but the sources say Freeport is still ready, however reluctantly, to build a new smelter if the Tsingshan deal falls through.
......

Full article:

China solves Freeport's $3 billion problem in Indonesia - Asia Times

JAKARTA - The long drawn-out saga of mining giant Freeport Indonesia’s (PTFI) proposed new copper smelter has taken a new turn with China’s Tsingshan

asiatimes.com

 

[Gundala]

https://twitter.com/i/web/status/1332098558669963265

Any update on local made Pandur?

Well the combination of multiyears systems and omnibuslaw can make things happen. How can you commit to long term procurement where you have to deal with annual budget systems? Both system has just been implemented and it might reflect to the 2021 onward defence procurement. He clearly didnt do his homework.

 

[sempruul]

Why are Google and Amazon investing in Indonesia’s tech unicorns? Because Alibaba and Tencent are too

Why are Google, Amazon eyeing Indonesia? Because Alibaba, Tencent are too​

The US tech giants have made inroads into the Southeast Asian nation this year, joining companies from China in vying for the lucrative regional market.

amp.scmp.com
Google, Temasek, and Bain & Company report: investments in Indonesia's tech sector in the first half of 2020 totaled $2.8B, up 55% from the same period in 2019

Google, Temasek, and Bain & Company report: investments in Indonesia's tech sector in the first half of 2020 totaled $2.8B, up 55% from the same period in 2019 (Mercedes Ruehl/Financial Times) - Up News Info​

Mercedes Ruehl / Financial Times: Google, Temasek, and Bain & Company report: investments in Indonesia’s tech sector in the first half of 2020 totaled $2.8B, up 55% from the same period in 2019 — Sharp spike in investment in south-east Asia’s largest economy after New Delhi closes its doors

upnewsinfo.com
Indonesia is a bit late compared to Vietnam when it comes to this.. but finally

Indonesia expects to ratify trade deal with EFTA soon to attract new investment

Indonesia expects to ratify trade deal with EFTA soon to attract new investment - The Jakarta Post​

www.thejakartapost.com
Chinese investors are shifting from India to Indonesia due to new regulations

Chinese investors are shifting from India to Indonesia due to new regulations - Gizmochina​

India is making it harder for Chinese investors to invest money in its companies after the rising tensions at the India-China border. With India closing doors to Chinese venture capital firms, they are now shifting focus towards Indonesia. The report adds that funds like Shunwei Capital from the...

www.gizmochina.com

 

[Gary]

Someone else losses is our gain

China sends coal miners a message with 'symbolic' Indonesia pact

China's vague pledge to buy more Indonesian coal is rich in symbolism rather than substance, but either way it is not good for Australian miners.

www.afr.com

 

[Madokafc]

PT BAI to process 2 million tons of bauxite in 2021​

2nd Dec 2020 22:56

Tanjungpinang, Riau Islands (ANTARA) - PT Bintan Alumina Indonesia (BAI), which operates in the Galang Batang special economic zone in Riau Islands province, is targeting to process 2 million tons of bauxite stone into alumina in 2021.

The company's smelter will start operating early next year and will process bauxite stone not only from Riau Islands, but also from Kalimantan, PT BAI president director Santoni said here on Wednesday.

"What is important is that the bauxite stone meets the standard we need and has legality. We need such bauxite," he added.

The alumina produced by PT BAI will be exported to several countries, including an aircraft manufacturer in the US, he said.

"We are optimistic that many countries will buy alumina from PT BAI," he stated.

Since 2017, PT BAI has invested Rp15 trillion in the special economic zone. The company said the investment will continue to increase according to its needs.

"The investment (in the project) is huge and will continue to increase," he said.

The company is clearing about 2,300 hectares of land in Galang Batan ahead of the planned expansion of its activities.

"We are not urging residents and land owners to sell their land. But, we have given them the understanding that the company which employs local workers needs the land to operate," Santoni said.

Related news: Proposed bauxite mining rights questionnaire faces cancellation
Related news: Bauxite mining activities continue despite ban

Translated by: Nikolas Panama/Suharto
Editor: Rahmad Nasution

PT BAI to process 2 million tons of bauxite in 2021

PT Bintan Alumina Indonesia (BAI), which operates in the Galang Batang special economic zone in Riau Islands province, is targeting to process 2 million tons ...

en.antaranews.com

 

[Madokafc]

Singapore key market for Bangka Belitung's processed tin exports​

1st Dec 2020 18:37

Pangkal Pinang, Bangka Belitun (ANTARA) - Singapore remained the main market for Bangka Belitung Province's processed tin exports in the first 10 months of 2020, buying 18.99 percent of the province's total tin exports.

"As compared to the January-October 2019 period, Bangka Belitung's tin exports to Singapore during the same period this year dropped 69.43 percent as a result of the COVID-19 pandemic," Dwi Retno Wilujeng Wahyu Utami from the Central Statistics Agency (BPS) Office in Bangka Belitung stated here on Tuesday.

The province also exported processed tin to India, China, South Korea, and the United States, contributing 10.39 percent to the province's total tin exports of 14.75 percent.

"In total, the five big markets accounted for 71.04 percent of Bangka Belitung Province's tin exports," she pointed out.

Bangka Belitung is the second-largest tin producer in the world.

In October 2020, the province's processed tin exports decreased 14.02 percent as compared to the same month last year.

"Non-tin exports dropped 21.73 percent and tin exports decreased 12.23 percent," she stated.

Utami noted that the province's exports in October 2020 declined 10.08 percent to US$88.6 million, from US$103.1 million a month earlier.

"The decline resulted from a 11.44-percent drop in tin exports and a 2.71-percent decline in non-tin exports. During the January-October 2020 period, tin and non-tin exports contributed 82.90 percent and 17.10 percent respectively to the total exports," she remarked.

Related news: Babel's solar power plant development in ex-tin ore mining area
Related news: Central Bangka police named three suspects over illegal mining
Related news: Association wants tin prices cut to boost price
Translated by: Aprionis/Suharto
Editor: Sri Haryati

Singapore key market for Bangka Belitung's processed tin exports

Singapore remained the main market for Bangka Belitung Province's processed tin exports in the first 10 months of 2020, buying 18.99 percent of the ...

en.antaranews.com

 

[Madokafc]

Two ministers leave for Japan to seek support for SWF​

2nd Dec 2020 23:06

Jakarta (ANTARA) - Indonesia’s Coordinating Minister for Economic Affairs, Luhut Binsar Pandjaitan, and Minister of State-Owned Enterprises, Erick Thohir, have left for Tokyo to garner support for the creation of the Sovereign Wealth Fund (SWF).

During their two-day visit from December 3 to 4, 2020, Pandjaitan and Thohir will hold talks with representatives from the Japanese government and companies, Indonesian Ambassador to Japan, Heri Akhmadi, said in a written statement here on Wednesday.

They will also meet with a number of officials at the Japanese Ministry of Economy, Trade and Industry and several financial institutions, including the Japan Bank for International Cooperation (JBIC).

"The visit of the two ministers is a follow-up to the agreement reached by Indonesian President Joko Widodo and the Japanese Prime Minister in Bogor on October 20, 2020," Akhmadi said.

Set up under the new job creation law, SWF Indonesia, also known as the Nusantara Investment Authority, has been authorized to manage investment funds to support the Indonesian economy.

Related news: Indonesia, Japan agree to set up essential business travel corridor
Related news: Japan offers 50 bln yen loan to Indonesia for disaster mitigation



Translated by: Ade irma Junida/Suharto
Editor: Rahmad Nasution

Two ministers leave for Japan to seek support for SWF

Indonesia’s Coordinating Minister for Economic Affairs, Luhut Binsar Pandjaitan, and Minister of State-Owned Enterprises, Erick Thohir, have left for ...

en.antaranews.com