Day: August 31, 2022

Coordinating Minister for Economic Affairs Airlangga Hartarto, through a statement, Friday, stressed that energy transition, as one of the priorities in the G20 Presidency, should be conducted in a fair, controlled, and affordable manner.

G20 is an international forum comprising 19 countries and the European Union that work together to handle major issues. Indonesia is holding the presidency of the grouping this year.

Indonesia has committed to achieving net zero emissions by 2060, he stated.

Through the 2022 G20 Leadership, Indonesia plays a role in formulating the Bali Common Principles in Accelerating Clean Energy Transitions (COMPACT) that will be used as a guideline or principle to support the implementation of energy transition.

Transition to eco-friendly energy sources can create millions of jobs, reduce dependency on fossil fuels, and encourage technology transfer to develop manpower skills, especially for workers in developing country, he remarked.

One of the main keys in energy transition is the partnership between the public and the private sector. In addition, obtaining the global market share for renewable energy is supported by certain conditions, according to Hartarto.

These conditions include decline in coal and moderate growth in natural gas capable of expediting the expansion of the renewable energy share in the global market.

Indonesia will also utilize the strategic international capital that it has as the G20 President, UN GCRG Champion, and ASEAN Chair in 2023.

This capital will be utilized to mobilize solutions and develop strategies to help countries in handling the ongoing food, energy, and climate crisis.

Meanwhile, Indonesia’s national economic performance shows a rapid growth based on the economic growth that had reached 5.4 percent (yoy) in the second quarter of 2022 and inflation rate at 4.94 percent (yoy) as per July 2022

Source: Antara News

Indonesia’s climate change losses could reach 40 percent of the gross domestic product (GDP) by 2050, according to the assistant director of Bank Indonesia’s macroprudential department, Heru Rahadyan.

The losses could affect various economic sectors, ranging from people of higher economic status to the lower-middle class, and from big companies to micro, small, and medium enterprises (MSMEs), he noted.

“If we lose 40 percent of our income, it will have a lot of effects. Some (sections of the population may) fall into poverty; companies could go bankrupt,” he underlined during a discussion entitled “Sustainable Finance 101” organized by Bank Indonesia and WWF Indonesia, which was followed online from here on Wednesday.

Losses of 40 percent of the GDP by 2050 would be much larger than the global average of 18 percent, Rahadyan said. According to him, this could be attributed to Indonesia’s geographical condition as an archipelagic and agricultural country.

“Ours is higher because Indonesia’s geography is very vulnerable. We have many volcanoes in the Ring of Fire, and then there are many people living on the coast; there are millions,” he added.

As an archipelagic country, climate change would greatly impact the distribution of logistics to all regions because weather conditions strongly impact the mobility of sea and air transportation, he explained.

Meanwhile, as Indonesia is an agricultural country, climate change will greatly affect the productivity of the agriculture and fisheries sectors because weather conditions have a significant role in the production process, he said.

Therefore, climate change will have a significant impact on logistics and supply chains in the country, which will consequently affect the economy, banking, and financial system.

According to Rahadyan, Indonesia’s economic losses due to climate change have reached around Rp100 trillion per year, and the figure will continue to increase every year.

Source: Antara News

President Joko Widodo (Jokowi) has said he is convinced that despite the ongoing global uncertainty, Indonesia has fared better in terms of maintaining economic growth and controlling inflation, especially compared to the United States.

At a gathering attended by PT Freeport Indonesia president commissioner Richard Adkerson and company employees in Mimika district, Papua, on Wednesday, Jokowi highlighted that Indonesia recorded positive economic growth and controlled inflation this year.

“We need to be thankful because our country, Indonesia, recorded 5.44 percent economic growth in the second quarter (of 2022) and maintained a 4.9 percent inflation level. I want to ask Mr. Richard (Adkerson) about the United States’ growth and inflation level later. I believe we fared better,” the President remarked.

He said that Indonesia has successfully maintained positive economic growth despite post-COVID-19 global uncertainties and geopolitical conflicts triggering crises in the energy, food, and financial sectors.

He then commended PT Freeport Indonesia for earning US$7.5 billion in revenues last year. He also lauded the company for contributing around 68 percent to Mimika district’s gross regional domestic product.

Meanwhile, Adkerson lauded President Jokowi , whose leadership he said he believed helped the country maintain economic growth and control inflation amidst the COVID-19 pandemic and during Indonesia’s G20 Presidency.

The president commissioner highlighted that PT Freeport Indonesia is now almost fully operated by Indonesian nationals, as some 98 percent of the company’s employees are Indonesians, and 40 percent of Indonesians working in the company are native Papuans.

“We have a strong commitment to maintaining workers’ safety because they must work in vulnerable conditions. We also provide appropriate wage and fully support residents,” he said.

Source: Antara News

Assistant director of Bank Indonesia’s macroprudential department, Heru Rahadyan, on Wednesday advised the public to choose green financial or investment products to support the development of green projects that can encourage energy transition efforts.

“Opt for a green bank, observe the financial statements, whether it invests in green (projects) or not, whether its credit is green or not,” he said during a discussion on “Sustainable Finance 101” organized by Bank Indonesia, here on Wednesday.

To participate in energy transition efforts and help mitigate climate change, he advised Indonesians to invest in financial or investment products owned by companies that run green projects.

In choosing investment products, he suggested that people consider stocks of companies listed on the Sustainable and Responsible Investment-KEHATI Index (SRI-KEHATI) and green Islamic bonds or green sukuk for bond instruments.

“Green bonds, green mutual funds, (and) a lot of green projects are now starting to develop, so we can start with ourselves and then invite people around us,” he said.

According to Rahadyan, being selective in choosing financial products or investments is very necessary because they will have an impact on environmental sustainability in the future.

At the same discussion, director of state debentures (SUN) at the Directorate General of Budget Financing and Risk Management of the Finance Ministry, Deni Ridwan, asked the public to consider the Triple Bottom Line (BTL) that looks at three aspects—people, profit, and the planet—while choosing financial or investment products.

In addition, he said, the public can also apply the 2L formula, namely legal and logic, which means that the product has received a license from the Financial Services Authority (OJK) and the people know the source of the company’s profits.

There is also the 2R formula (risk and return), for which people will need to understand both the risks and potential benefits of a product.

Source: Antara News

A. SITUATION ANALYSIS

Description of the disaster

The Indonesian Meteorological Service (Badan Meteorologi, Geofisika dan Klimatologi or BMKG) forecasted that heavy rainfall would occur in West Kalimantan and Central Kalimantan provinces from October to November 2021. Following heavy rainfall in October 2021, floods started inundating several districts in Kapuas Raya, Katingan, Kotawaringin,

Palangkaraya, and Pulang Pisau in Central Kalimantan and in Sintang, Sanggau, Melawi, Kapuas Hulu, Ketapang and Sekadau districts in West Kalimantan. Although the floods occurred quickly, they also receded rapidly. As heavy rains kept on pouring in the two provinces, the situation escalated again causing inundation in more areas with the flood level ranging from 1–3 meters. Emergency responders and local government who were overwhelmed by the situation, started their emergency response efforts in West Kalimantan and Central Kalimantan affected areas by 6 November and 12 November, respectively. The event came at the beginning of a prolonged La Nina that Indonesia’s meteorological agency indicated would significantly increase the risk of widespread flooding, especially in the Kalimantan area.

Floods in West Kalimantan

Prolonged and heavy rainfall along with strong winds from October to early November 2021 caused Kapuas River, which flows through West Kalimantan to Central Kalimantan, to overflow. By the end of October, floods started to inundate areas in West Kalimantan province; several districts, including Sintang, Sanggau, Melawi, Kapuas Hulu, Ketapang and Sekadau. However, the floods receded quickly, and the situation went back to normal for several days. In early November, there was more heavy rainfall causing floods in five districts. The floods reached their peak on 6 November and the local authorities in five districts declared an emergency response phase in their area as the floods situation was beyond control. A summary of flood impacts in West Kalimantan is shown below.

Floods in Central Kalimantan

As in West Kalimantan, heavy rainfall also occurred in Central Kalimantan and causing Kapuas River to overflow; several districts were inundated, including Kapuas Raya, Katingan, Kotawaringin, Palangkaraya, and Pulang Pisau. Flooding caused the areas to be inundated from 10 November and further escalated on 12 November as flood levels reached 20-110 cm and communities started to evacuate themselves. Following the event, local authorities declared an emergency response phase in the area from 12 to 25 November. A summary of flood impacts in Central Kalimantan is shown below.

Source: International Federation of Red Cross And Red Crescent Societies

Religious Affairs Minister Yaqut Cholil Qoumas has highlighted the need for addressing some issues that occurred during this year’s Hajj to improve next year’s organization of the annual Islamic pilgrimage.

For one, Hajj pilgrims lacked an understanding of the ritual practice despite being provided guidance during this year’s Hajj season, he said adding, this is an urgent issue that must be addressed.

“According to on-site observation, some pilgrims had no comprehension of the Hajj practice despite their attending the Hajj manasik (simulation) at their sub-district’s Religious Affairs Office and the ministry office at the city/district level,” Qoumas informed during an evaluation meeting with Commission VIII of the House of Representatives (DPR), which was followed online from here on Wednesday.

To prevent a recurrence of this, the ministry will evaluate Hajj guidance methods and programs and enhance the quality of Hajj guides and the number of Hajj guidance sessions during the pilgrim’s stay in Saudi Arabia, he said.

“We will improve the criteria for (the next) Hajj guide recruitment. Hajj guides must have performed the pilgrimage, must be experienced state apparatus or figures, and (we need to) increase (the number of) women Hajj guides,” he added.

Meanwhile, Qoumas informed that to date, three Indonesian Hajj pilgrims are still undergoing medical care in Saudi Arabia, while the total pilgrim deaths this year have been recorded at 90, comprising 88 pilgrims who attended the regular Hajj program and 2 pilgrims who went on special Hajj.

“In detail, 7 pilgrims passed away at airports, while 61 pilgrims died in Mecca, 14 pilgrims passed away in Medina, and 8 pilgrims died during the Hajj peak (in Arafat, Muzdalifah, and Mina),” he informed.

The death toll of Indonesian Hajj pilgrims this year is significantly lower compared to previous years, the minister noted.

Source: Antara News

Environment Minister Bhupender Yadav on Wednesday said India is showing intent as a problem-solver despite not being a traditional contributor to global emissions.

Addressing the opening ceremony of the G20 environmental and climate ministerial meeting in Bali, Indonesia, he said the current pace and scale of climate finance from developed countries is not matching the global aspiration to combat climate change.

“While India has not been a traditional contributor to global emissions, we are showing the intent in our actions to be a problem-solver,” he said.

Yadav said the maximum impact of the climate crisis is being borne by the poorest countries and most vulnerable communities, which have contributed the least to the climate crisis and lack the technology and capacity and finance required to significantly alter the status quo.

“However, the promise of climate finance remains a mirage. An added problem is the clubbing of development finance with climate finance,” he said.

“In 2019, 70 per cent of public climate finance was given out as loans instead of grants. In 2019-20, only six per cent of climate finance was in grants. This is pushing developing countries into more debt,” the minister said.

“There is an urgent need to mobilise resources to stimulate the economy in a manner that makes it more resilient and sustainable. But the current pace and scale of climate finance from developed countries is not matching the global aspiration to combat climate change,” Yadav said.

Source: TREND News Agency

Indonesia’s central bank, Bank Indonesia, said yesterday that, the country would see its payment system to be fully connected to Singapore’s, starting 2023, through its Intercountry Quick Response Indonesia Standard (QRIS) code.

The connection facilitates users in doing retail payments instantly, safely and efficiently, by scanning Indonesia’s QRIS or Singapore’s QR NETS, displayed by merchants.

“With the integrated payment systems between the two countries, the people in Indonesia can use their digital payment systems when doing financial transactions in Singapore and vice versa,” head of Bank Indonesia’s Payment System Policy Department, Filianingsih Hendarta, told reporters.

Hendarta said, the QR code payment connectivity would empower individuals and businesses, particularly small- and medium-sized enterprises, to efficiently conduct cross-border trade, e-commerce, and other financial activities, and would support the growth of the tourism sector.

Indonesia’s Intercountry QRIS code was launched on Monday.

Bank Indonesia Governor, Perry Warjiyo said that, the move to push for digitalisation of cross-border payments was a priority agenda of the G20 presidency this year, and it is a part of efforts to overcome potential obstacles, in cross-border payment activities and support post-pandemic economic growth.

Source: NAM NEWS NETWORK