Day: July 6, 2022

Minister of Trade Zulkifli Hasan unveiled cooking oil in simple packaging of the brand Minyak Kita sold for Rp14 thousand per liter to facilitate people in receiving cooking oil stocks.

“We are certainly grateful to be able to unveil this people’s cooking oil packaged in a simple manner,” he remarked while attending the unveiling event here on Wednesday.

When it comes to cooking oil, the government and businessmen realize that the distribution chain for bulk cooking oil should be fixed, he stated.

To this end, he expects that the existence of Minyak Kita can facilitate the distribution of cooking oil at a price that matches the highest retail price through the distribution chain, such as Si Gurih, and Warung Pangan.

“Bottleneck is already smooth. As a result, the price in Java-Bali is already Rp14 thousand per liter. However, there are places in Papua, Tarakan, where the price is still Rp20 thousand, which is quite high,” he remarked.

According to Hasan, this cooking oil in simple packaging can facilitate the distribution of cooking oil in Indonesia’s eastern region in Sulawesi, Kalimantan, and also Papua, hindered by logistical hurdles.

In future, Minyak Kita is expected to enter roadside stalls, traditional markets, minimarkets, and also supermarkets, he remarked.

Moreover, bulk oil is a domestic instrument in which the price of palm oil fresh fruit bunches (FFB) is closely related to the success of the exports, he added.

“If export is successful, then the tanks in palm oil factories would be empty. If the tanks are empty, then they can buy the people’s palm oil,” the minister explained.

“Once the buyers for the people’s palm oil increase, then, according to the law of the market, the price will rise little by little. This will make farmers happy,” he remarked.

Source: Antara News

Minister of Investment and Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia has urged G20 member countries to help support global economic recovery after the COVID-19 pandemic ends.

At the opening of the second meeting of the G20 Trade, Investment, and Industry Working Group (TIIWG) here on Wednesday, Lahadalia said he hoped the G20 would use constructive thinking and work together to face global uncertainty.

“This is a collaboration momentum among G20 member countries to contribute significantly to global economic recovery amidst the world uncertainty that has been affected by the COVID-19 pandemic in the last couple of years,” he added.

The TIIWG was established in 2016 as a part of the G20 working group to discuss major trade and investment issues as well as to coordinate efforts by G20 nations to strengthen global trade and investment.

Lahadalia said that almost all countries are currently facing the same problem, namely controlling the spread of COVID-19 and bringing about economic recovery after the pandemic.

According to him, the current global economic recovery is in an uncertain state. At present, global economic governance is also facing various challenges.

“We need a breakthrough to handle this problem. Let us use this G20 momentum to bring constructive thinking and work together in facing the world uncertainty,” he emphasized.

The COVID-19 pandemic and the current geopolitical situation have resulted in the disruption of global supply chains, high inflation, and food and energy crises in the world, he said.

“High inflationary pressures and limited availability of world food and energy can reduce people’s purchasing power and increase people’s vulnerability, especially in developing countries, to fall into poverty,” Lahadalia underlined.

Therefore, he invited global leaders, especially G20 leaders, to collaborate on solving global supply chain problems to reduce poverty and fight hunger, which are the main sustainable development goals (SDGs).

“The G20 must become a common union to prepare global development design that is equal, prosperous, inclusive, and sustainable, especially voicing the interests of developing countries and the poor and vulnerable groups,” he added.

Source: Antara News

Cooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki in a statement on Wednesday.pressed for preparedness from art actors, such as those from visual arts, performance, animation, and film circles, to enter the digital market.

This step aims to make the most of the value of Indonesia’s digital economy that is projected to reach Rp5,400 trillion in 2030.

“Currently, the creative economy (Ekraf), including art actors in it, is one of the economic forces in Indonesia,” he said in Yogyakarta, Central Java.

Based on data from Statistics Indonesia in 2017, creative economic growth had reached 5.06 percent, with a contribution to the gross domestic product (GDP) reaching 7.24 percent.

Overall, the projected GDP of the creative economy will reach Rp1,274 trillion in 2021.

“We have entered the digital era, and now, there are Non-Fungible Tokens (NFT) that can be used by fellow artists,” the minister stated.

Furthermore, the presence of digital technology makes lifestyles around the world almost uniform.

“Those who have strong penetration to access the world’s lifestyles must be able to determine whether they want to be followers or trend setters,” he stated.

According to Masduki, actors of creative economy must have the ability to create a strong narrative about art activities in the digital ecosystem, considering that each country is looking for its own domestic advantages.

In Indonesia, the minister considers the arts and culture sector to be a domestic flagship that can be strengthened.

He expressed optimism that art in the country would continue to grow, so that it has an impact on the nation’s economy.

“All world institutions predict that Indonesia will rank among the top five countries in the world in 2045 after America, China, and India. We have to prepare the mentality of developed countries, no longer inlander, no longer inferior, but must be ready to become developed countries,” he stated.

The creative economy products’ trade balance registered a 60-percent surplus in the first quarter (Q1) of 2022 despite a spike in COVID-19 cases during the period, Tourism and Creative Economy Minister Sandiaga Uno ealier noted.

“The largest export destinations were the United States of America (USA), Switzerland, and Singapore,” he stated during a working meeting with Commission X of the Indonesian House of Representatives (DPR RI) on Monday.

According to data presented by the Tourism and Creative Economy Ministry at the working meeting, the export value of creative economy products to the US was recorded at US$3.31 billion (Rp49.75 trillion), or 37.78 percent.

Meanwhile, the export value to Switzerland and Singapore had been recorded at US$1.09 billion (Rp16.38 trillion), or 13.19 percent, and US$384.13 million (Rp5.77 trillion), or 4.63 percent

The minister noted that in the first quarter of 2022, the exports of creative economy products grew 56.16 percent, which was better than the average national exports that increased by 35.25 percent.

Fashion products contributed the most to exports, valued at around US$4.68 billion (Rp70.34 trillion), or 56.53 percent of the total export value.

Crafts emerged as the second-largest contributor to the export value, recorded at 38.05 percent, or US$3.15 billion (Rp47.35 trillion).

Source: Antara News

The National Research and Innovation Agency (BRIN) is exploring opportunities for cooperation in the field of nuclear technology development with France.

Based on the information broadcast on BRIN’s official website quoted on Wednesday, Head of BRIN Laksana Tri Handoko expressed optimism that the meeting with government agencies handling the nuclear technology in France will help BRIN to build cooperation with France in the nuclear technology sector.

Handoko highlighted that BRIN needed support to improve nuclear infrastructure and boost the capacity of human resources in the field of nuclear technology.

“We aim to improve existing nuclear infrastructure in Indonesia, one of which is our nuclear reactor. We also need to improve the quality of our human resources in nuclear technology to be able to compete with other countries,” he stated.

Deputy Director of the French Atomic Energy and Alternative Energy Commission Pascal Chaix stated that France was ready to support BRIN’s efforts to develop nuclear technology.

During the meeting attended by Director of the International Institute for Nuclear Energy, Karen Daifuku, Pascal Chaix, and other officials of the nuclear energy development institute in France, the BRIN head also spoke of the integration of the National Nuclear Energy Agency (BATAN) into BRIN.

During one year of the integration of BATAN into BRIN, various evaluations had been conducted regarding efforts to develop nuclear technology in Indonesia, he remarked.

“We have evaluated several aspects regarding the integration, specifically in our programs, human resources, infrastructure, as well as funding for program activities. These evaluations are intended for nuclear development in the future, not only for nuclear energy but also for other fields, such as medicine, industry, and other fields needed in the future,” Handoko stated.

Earlier, Energy and Mineral Resources Minister Arifin Tasrif also noted that several countries had offered to build a nuclear power plant under a bilateral cooperation scheme with Indonesia.

According to Tasrif, Indonesia is endowed with raw materials for the development of nuclear energy to meet the demand for clean electrical power in future. Hence, nuclear technology development is needed to support Indonesia’s participation in this sector.

Source: Antara News

Developing a more advanced and sophisticated financing system remains a challenge for developing and emerging countries, including Indonesia, Finance Minister Sri Mulyani Indrawati stated during the 2022 Securitization Summit here on Wednesday.

This is because such an ecosystem, in addition to producing a financing product, has to be complemented with legal framework, regulation, and authority that can offer assurance to investors and issuers, the minister elaborated.

Moreover, most of the developing and emerging countries are still in a nascent stage in terms of forming the capital, money, and securities market, she stated.

“As a result, they need to build an ecosystem from the financing side that is indirect in nature between those who take out loan and those who provide loan,” she stated.

According to Mulyani, Indonesia is still on the path to develop the finance sector, capital market sector, and securities sector, with investment within a good market.

However, Indonesia has made efforts to create a good financing and financial ecosystem, such as through financing for the housing sector, the minister explained.

The government’s efforts in financing the housing sector are made with PT Sarana Multigriya Finansial (Persero) as a Special Mission Vehicle (SMV) from the Finance Ministry.

“SMF is the ministry’s SMV that is specifically dedicated to conducting housing financing,” she stated.

The ministry cooperates with PT SMF to develop the housing sector’s financing through the issuance of asset-backed security (ABS) products since 2009.

During the event, the minister also affirmed that Indonesia’s food resiliency has been in a safe condition in the last three years, including amid the ongoing supply limitation and soaring world food prices.

“Several countries already experience a significant rise in food prices,” she remarked.

Source: Antara News

Expert staff of the Industry Ministry Andi Rizaldi stated that the program to downstream the palm oil sector was an important key in the downstream policy of agro-based industries.

“Palm oil downstreaming is important since palm oil could be processed into margarine that produces double the added value,” he stated during his remarks at the 2022 Indef Midyear Study Seminar on Wednesday.

Rizaldi later noted that processing palm oil into cooking oil could generate an added value of up to 1.3 folds. If processed into cosmetics, the added value of palm oil could increase to four folds.

The same result could be seen in the downstreaming of mineral-based industries, such as nickel-based and other metal-based smelters, including those of iron, copper, and aluminum.

“In the petrochemical industry, downstreaming can play a strategic role to generate added value since it produces primary raw materials to support downstream manufacturing industries, such as textiles, automotive, machinery, electronics, and construction,” Rizaldi remarked.

He later noted that industrial downstreaming was one of the policies set by the government to achieve industrial development targets and increase industrial competitiveness. Industrial downstreaming would generate added value, strengthen the industrial structure, and provide job and business opportunities.

Rizaldi pointed out that the industrial sector was the largest contributor to the value of national exports, at over 72.83 percent, with a total of US$114.97 billion. Industrial exports during the January-May 2022 period reached US$83 billion and recorded a surplus of around US$11.48 billion.

Investment in that sector also recorded good performance in the first quarter of 2022, with an increase of 17 percent, from Rp88.3 trillion to Rp103.5 trillion.

The top five investments in the industrial sector in the first quarter of 2022 came from the basic metal, metal goods, non-machinery and equipment industries that amounted to Rp39.67 trillion, followed by the food industry, Rp19.56 trillion; the chemical and pharmaceutical industry, Rp16.91 trillion; the motor vehicle industry and other transportation equipment worth of Rp8.16 trillion; and the paper and printing industry contributing Rp3.83 trillion.

In addition, the performance of Indonesia’s manufacturing Purchasing Managers Index (PMI) during the January-June 2022 period was at an expansive level of above 50, Rizaldi noted.

“However, we still have six months left. Hopefully, we would be able to keep the PMI above 50,” he added.

Source: Antara News