Day: September 15, 2021

Jakarta The Industry Ministry and the State Secretariat Ministry again held a capacity-building and knowledge-sharing program on the development of small and medium industries (SMIs) for the member countries of the Colombo Plan.

The activity was part of the implementation of the South-South and Triangular Technical Cooperation (SSTC) that Indonesia has committed to since 1950.

The Colombo Plan is a regional organization which aims to strengthen the economic and social aspects of member countries in the Asia-Pacific region.

“This year is the 6th year that Indonesia has hosted the event since 2016. Hopefully, it can encourage good cooperation between government agencies and SMIs from Colombo Plan member countries, so that later they will be able to place SMIs as a booster for economic growth and new employments,” acting Director General of Small, Medium and Multifarious Industries (IKMA) at the Industry Ministry Reni Yanita said here on Tuesday.

This year’s training involved 61 participants, ranging from government bureaucrats to actors of SMIs, from 13 member countries of the Colombo Plan — Bangladesh, Bhutan, India, Indonesia, Laos, Maldives, Malaysia, Myanmar, Nepal, Pakistan, the Philippines, Sri Lanka, and Vietnam.

The program is being held from September 13 to September 17, 2021 in a hybrid format, Yanita said. Furthermore, it has been designed to be implemented offline sustainably in Bali in 2022, she added.

Hence, in addition to attending material presentation sessions by various resource persons, participants will be required to prepare an action plan to be implemented in their respective countries, Yanita said.

“I hope this activity can continue to run to strengthen the SSTC framework,” the acting director general added in a written statement.

The program is entitled ‘The Innovations of Women-owned SMIs to Empower Community during the COVID-19 Pandemic’, she said.

Its goal is to encourage the empowerment of women SMIs entrepreneurs as economic drivers who are able to survive the impact of the pandemic as well as empower local communities in their activities.

Domestic SMIs players have become the backbone of the Indonesian economy, Yanita said.

According to data from the Central Bureau of Statistics, the number of Indonesian SMIs is currently pegged at 4.4 million business units.

Moreover, they have absorbed 10.36 million workers or around 66 percent of the total industrial workers in the country and contributed up to 21.22 percent of the total contribution value of the manufacturing industry.

Furthermore, the acting general director revealed that the common obstacles faced by SMIs in every crisis comprised declining demand, shifting consumer spending behavior, limited ability to quickly adapt, building marketing strategies, and the need for capital to pay operational matters and workers’ salaries.

“Hence, the Ministry of Industry is committed to assisting and facilitating SMIs to be able to survive amid the pandemic through online seminars and training. In addition, we are also conducting new entrepreneurship development programs, machine restructuring, and the Proud of Indonesian Products Movement to encourage the consumption of local products,” she added.

Meanwhile, acting head of the Bureau of Foreign Technical Cooperation at the State Secretary Ministry, Arrya Tirto Sumarto, said that the program was held as a follow-up to the 47th Colombo Plan Consultative Committee Meeting in August 2021.

“The program is expected to provide an overview of Indonesian women SMIs who are capable of mobilizing their communities and environment amid the pandemic through their various innovations,” he remarked.

Source: Antara News

Jakarta Indonesia’s G20 Presidency is expected to boost domestic consumption up to Rp1.7 trillion, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.

“Domestic consumption is estimated to reach Rp1.7 trillion, the gross domestic product increases up to Rp7.47 trillion, and employment absorbs around 33 thousand workforce in various sectors,” Hartarto noted during the virtual G20 press conference on Tuesday.

The minister remarked that the figures are expected to increase by 1.5 to two folds in aggregate as compared to that during the 2018 International Monetary Fund and the World Bank Meeting in Bali owing to 150 meetings to be held in one year amid Indonesia’s presidency.

“It is also a momentum to demonstrate the success of our structural reforms — comprising the Job Creation Act — and will certainly encourage the confidence of global investors to accelerate economic recovery and promote mutually beneficial global partnerships,” the coordinating minister stated.

Related news: Independent PDP authority needed for Indonesia’s presidency at G20

In addition to benefiting the domestic economy, Hartarto noted that the G20 Presidency will also support social development since Indonesia has the opportunity to raise the topics on vaccine production and distribution.

“We continue to push for vaccines to become global public goods. We also encourage to ease accessibility of the vaccines for Indonesian people and low-income developing countries,” he remarked.

According to Hartanto, Indonesia’s G20 presidency will encourage the coordination of global policies that contribute to a balanced global governance, make G20 adaptive to crises, as well as strive for national interests in global forums – comprising issues of digital transformation and inclusive economy.

In addition, Indonesian government will accentuate the importance of strong coordination between ministries and institutions involved in the 16 working groups as well as non-governmental and civil society stakeholders involved in the 10 engagement groups.

Related news: Indonesia underscores priority issues for the 2022 G20 Presidency

The coordinating minister stated that the involvement of various elements of society indicates democratization in the discussion and determination of strategic issues in the global order.

Furthermore, the involvement of all interest groups reflects the government’s inclusiveness and openness to synergize all components of society for achieving strong national economic recovery with good governance.

“The attempt also demonstrates to the international community that Indonesia is ready to be the leader of global economic recovery with the spirit of consensus and togetherness,” Hartanto added.

Source: Antara News

Jakarta Indonesia will have produced electric cars no later than May 2022, according to Investment Minister, concurrently Head of the Investment Coordinating Board Bahlil Lahadalia.

Lahadalia delivered the statement at the groundbreaking ceremony of Hyundai Motor Group and LG Energy Solution’s electric vehicle battery cell factory construction in Karawang District, West Java, on Wednesday.

“Alhamdulillah (all praise to God), the first phase for the manufacture of electric cars, for which we signed an agreement in November 2019, had begun in 2020 amid the pandemic. Thus, in 2022, at the latest in May, Insya Allah (God willing), production will commence, and the cars have been patented,” the minister said as broadcast on the Presidential Secretariat’s YouTube Channel.

Furthermore, he informed that the production of electric cars was an investment by the Hyundai Motor Group worth $1.55 billion, or equivalent to Rp21 trillion. Although the COVID-19 pandemic has surged since 2020, the South Korean company is still able to realize its investment.

Furthermore, in addition to constructing the electric car factory, the corporation manufactures battery cells.

The Hyundai Motor Group has formed a consortium comprising the Hyundai Motor Company, KIA Corporation, Hyundai Mobis, and LG Energy Solution that cooperate with Indonesia Battery Corporation to build the battery cell factory, with a total investment of $1.1 billion.

The factory is planned to have a production capacity of 10 gigawatt-hours (GWh) that will supply the electric vehicles produced by Hyundai.

Lahadalia stated that construction of the factory is part of an integrated electric vehicle battery project plan worth $9.8 billion, or equivalent to Rp142 trillion, under an agreement signed with South Korea.

Source: Antara News

Jakarta Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that the government continues to prioritize maintaining sustainability of the business sector through the provision of varied fiscal and non-fiscal incentives.

“As of August 20, 2021, the government’s fund placement program in banks had driven a total of Rp419.78 trillion in credit disbursement from State-Owned Banks Association (Himbara), Indonesian Sharia Banks, and Regional Development Banks (BPD),” the minister stated at the United Overseas Banking (UOB) Economic Outlook 2022 webinar monitored here on Wednesday.

According to Hartarto, some 57.53 percent of the credit realization was disbursed to Micro, Small and Medium Enterprises (MSMEs) actors.

In addition, the government offers additional support for MSMEs players by distributing Productive Aid for Micro Enterprises (BPUM); assistance for street vendors; as well as expansion of credit guarantees and additional interest subsidies for People’s Business Credit (KUR) and non-KUR.

Related news: Government to disburse aid for MSMEs in August

“Moreover, KUR will be increased to reach Rp285 trillion in 2021. The government has also launched cash social assistance for street vendors and stalls targeting informal MSMEs actors that have not been assisted by the existing programs,” the coordinating minister noted.

Furthermore, the government continues to conduct structural reforms to facilitate business actors to increase their investment, productivity, and employment. It is being accomplished through the implementation of the Job Creation Act, among others.

“For instance, the implementation of the risk-based Online Single Submission launched on August 9, 2021, to support competitiveness of Indonesia’s investment,” Hartanto stated.

Meanwhile, to close the gap in infrastructure financing as well as accelerate the investment process, the government has established the Sovereign Wealth Fund to increase investment opportunities in various sectors, so it can support the nation’s sustainable development.

“Investments managed by the Indonesia Investment Authority (INA) are expected to increase productivity to create jobs. The government also allocates additional capital of Rp60 trillion in 2021. Thus, the INA can invest in supporting economic growth,” he stated.

Source: Antara News

Jakarta Indonesia’s G20 Presidency is an evidence of its “real action” in global leadership to work towards advancing cooperation to support global economic recovery and resilience, Minister of Communication and Informatics, Johnny G. Plate, has said.

“In particular, (the nation aims) to advance cooperation and collaboration in an effort to accelerate global economic recovery and build sustainable global resilience,” Plate stated in a press release issued here on Wednesday.

He affirmed that the government will take advantage of this momentum to accelerate economic recovery.

Indonesia was elected to the G20 Presidency for 2022 based on a decision taken at the G20 Summit in Riyadh, Saudi Arabia in November 2020.

Italy will hand over the G20 Presidency to Indonesia at the G20 summit in Rome, Italy on October 30-31, 2021, the minister informed.

Indonesia will officially hold the G20 Presidency from December 1, 2021 to November 30, 2022, he said.

Ahead of the G20 summit in 2022, a total of 150 activities will be organized in the form of meetings, which will be divided into two tracks: Sherpa Track (December 7-8, 2021) and Finance Track (December 9-10, 2021), Plate said.

Related news: Indonesia underscores priority issues for the 2022 G20 Presidency

The meetings will be conducted in a marathon format and will encompass ministerial meetings, engagement groups, to meetings at the Echelon I level, he added.

“The G20 Summit is planned to be held in Bali, but the exact location will be announced later,” the minister disclosed.

The G20 Summit Indonesia will be held in a hybrid format and will involve both virtual and face-to-face meetings, depending on the COVID-19 situation, the minister said.

“For the scheduled face-to-face meeting, of course, strict health protocols will be followed,” he added.

The government, he affirmed, will ensure that health protocols are implemented and assessments carried out, in accordance with the World Health Organization’s advice, for the G20 meetings.

Based on the Presidential decision No. 12 of 2021 on the National Organizer Committee of the Indonesian G20 Presidency, the Minister of Communication and Informatics has been elected as the chairman of communication and media for the G20 summit.

In addition, Coordinating Minister for Economic Affairs, Airlangga Hartarto, has been elected as Chairman I of Sherpa Track; Minister of Foreign Affairs, Retno L. P. Marsudi as chairman II of Sherpa Track; Minister of Finance, Sri Mulyani Indrawati, as chairman I of Finance Track; Governor of Bank Indonesia as chairman II of Finance Track; and Coordinating Minister for Politics, Law, and Security as chairman of events.

Source: Antara News

Jakarta International corporations have shown a high level of interest in investing in Indonesia, Indonesian Ambassador to Singapore Suryo Pratomo has affirmed.

“Investment opportunities in Indonesia are too good to pass up. After my 10th month in Singapore, I have received not only Singaporean companies, but also Bahraini, Chinese, Japanese, South Korean, and Emirati companies inquiring me on business and investment opportunities in Indonesia,” Pratomo said during the UOB Economic Outlook 2022 webinar, accessed from Jakarta on Wednesday.

To accommodate the high level of interest among international corporations, the embassy has established a business connect centre to assist interested corporations in investing in Indonesia, he informed.

Indonesia’s productive age population is one reason why companies are keen to invest in the country, he noted.

Indonesia could also persuade the United States to divest the country’s US$315 billion investment in Singapore to Indonesia, where vast undeveloped land is available for utilization, a clear advantage over Singapore’s limited land availability, Pratomo said.

The Singapore market is the only major Asian market with assured political stability after the recent political unrest in Hong Kong, which may dissuade potential investments in the region, he noted.

By attracting just one percent of the US$4 trillion investment parked in Singapore, the region gaining the investment would benefit greatly, the ambassador said.

“If we successfully persuade investors to divest even only a percent from the total financial asset in Singapore, it would greatly benefit us, and our natural and human resources would all be advantaged. Indonesia also has the potential to be the fourth or fifth major economy in 2050 — a target we should pursue from now on,” Pratomo added.

With the Law on Job Creation passed in mid-2020, Indonesia has sufficient legal basis to enhance potential resources available for investment, he pointed out.

“We have readied the legal basis, and now it is up to us to be creative and innovative to participate in the global market,” Pratomo remarked.

Source: Antara News

Jakarta State-owned trading firm PT Perusahaan Perdagangan Indonesia (PT PPI) on Wednesday shipped 100 tons of coffee worth US$1.2 million to Egypt.

The shipment was sent off by director general for national export development at the Trade Ministry, Didi Sumedi, and the president director of PT Perusahaan Perdagangan Indonesia (PT PPI), Nina Sulistyowati.

“The coffee export to Egypt is the result of intensive collaboration between PT PPI and local coffee farmers. The Trade Ministry is encouraging synergy among farmers, exporters, and the government to assist our farmer commodities reaching the wider international market, particularly for our agriculture product,” Sumedi said in Jakarta on Wednesday.

The volume of coffee exports will be increased to 200 tons for the remaining months of this year, he informed adding, the exported coffee is of the Robusta variety that is grown in Lampung and South Sumatra regions.

“Collaboration is key to winning the global market. The Trade Ministry will also support and be attentive to potential buyers of our product,” Sumedi said.

He lauded national trading companies, including PT PPI, that have taken the initiative to boost the volume of national exports.

Meanwhile, PT PPI president director Sulistyowati said the coffee exports would encourage national economic development by introducing Indonesia’s commodity with export potential to cater to global coffee demand.

“The coffee importers in Egypt plan to increase their coffee order by six tons from next year,” she confirmed.

The current shipment has restarted the exports of coffee, which were launched in 2018 and halted in early 2020 due to the COVID-19 pandemic and its economic fallout, she added.

According to Ambassador of Indonesia to Egypt, Lutfi Rauf, Indonesia is the top coffee exporter to Egypt, accounting for around 54 percent of all imported coffee in the country.

“Indonesia also has the potential to export other commodities to Egypt, such as nutmeg, galangal, cinnamon, cardamom, and fishery commodities,” he added.

The value of Indonesia’s coffee exports reached US$400.96 million in January-July 2021 period, with major export destinations being the United States (24 percent), Egypt (11 percent), Japan (9 percent), Malaysia (7 percent), and Italy (6 percent).

Source: Antara News