Day: January 21, 2023

Jambi Bank of Indonesia (BI) is confident that economic growth in Jambi Province would go well as domestic demand also sees some improvements.

“Spatially, Jambi’s economic growth is estimated to grow positively in line with improving domestic demand and so are exports, following the revocation of the Zero COVID Policy in China,” deputy head of BI Jambi Representative Eva Ariesty stated on Saturday.

Jambi’s economy would still be supported by the plantation and mining sectors in the future, she remarked.

Moreover, the tourism sector has potential to develop and contribute to the area’s economy.

BI has consistently supported the province’s development in the tourism sector.

“Tourism sector, if developed, has great potential for Jambi,” Ariesty stated.

Global economic growth in 2023 is projected to maintain its growth rate despite the ever growing risk of recession in some countries, including the United States and Europe.

The increase in the Fed Funds Rate, which is forecast to be higher for longer until early 2023, has the potential to make the US dollar maintain its rate, thereby pressuring exchange rates in various countries.

Moreover, there is a need to make the most of the constant strong rate of the US dollar through external trade.

“As for external (factors), the abolition of the Zero COVID Policy will halt the global economic slowdown. Hence, export performance must be promoted as demands from major trading partners improved, particularly of Jambi’s main commodities, such as coal, CPO, and rubber,” she elaborated.

The possibly declining performance from external factors is expected to be compensated by better domestic demand that is driven by increased household consumption and non-construction investment.

Household consumption is forecast to increase at a faster rate as people begin to travel more following the cessation of community activities restriction policy.

“Investment is also predicted to improve, driven by improved business prospects, increased inflows of foreign investment, and the ongoing completion of the National Strategic Project (PSN),” he said.

BI will take front-loaded, pre-emptive, and forward-looking measures to maintain the rupiah exchange rate stability and reduce inflation risk to ensure that future core inflation bounced back to three percent, give or take one percent (yoy), in the first half of 2023.

Their measures, such as policy coordination with the central and regional governments and strategic partners, had also being pursued.

Cooperation between the central and regional inflation control teams is established by intensifying the national food inflation control program in various regions.

In the provincial scope, efforts include synergy between the Jambi regional inflation control team and the Food Task Force pursuing price control programs that imposed four aspects: affordability, supply availability, smooth distribution, and effective communication.

“For 2023, on a national scale, the expectation lies in domestic consumption, so what still has the opportunity to be expedited is trade and accommodation for food and beverages,” she concluded.

Source: Antara News

Kendari, Southeast Sulawesi The Naval Combat Force (Guspurla) of Fleet Command III (Koarmada III) held the Banda Yudha Jaya 23 operation to secure and safeguard the sovereignty of Indonesia’s eastern and central sea waters.

Chief of the Guspurla Koarmada III Staff Colonel Rio Henrimuko Yumm stated in Kendari on Saturday that his side conducted the operation to showcase the Navy mariners’ readiness in facing threats to the nation’s sovereignty at sea.

“The Guspurla Kormada III is on the Karel Satsuitubun-356 Warship in order to carry out the sea combat alert operation,” Yumm stated.

The Navy’s Karel Satsuitubun-356 warship is docked at the Kendari Navy Base Pier in Kendari City, Southeast Sulawesi, to conduct the Banda Yudha 23 patrol and operation to guard the sea waters of eastern and central Indonesia.

Colonel Yumm stated that the Banda Yudha 23 operation will be conducted in four stages, with the first phase in the Southeast Sulawesi sea area for 45 days.

He explained that the Banda Yudha operation aims to prepare mariners for overwater and underwater warfare and to be able to cooperate with air defense elements.

Meanwhile, Commander of the Karel Satsuitubun-356 warship Colonel Agus Setiawan stated that his side welcomed the implementation of Banda Yudha 23 by the Guspurla Koarmada III.

“We have the honor and opportunity to dock at the Kendari Naval Base Pier in the framework of the Banda Yudha Jaya 23 operation. This operation is under the command of Guspurla Koarmada III,” he stated.

He said that the Banda Yudha Jaya 23 operation focuses on training mariners to boost their professionalism and readiness to fight at sea.

He deems this operation as vital as the waters of Southeast Sulawesi Province directly face the Banda Sea, where the Indonesian Islands Waterways (ALKI) III had been established.

Source: Antara News

Jakarta The Finance Ministry, through the Directorate General of Financing and Risk Management (DJPPR), has committed to developing retail state bonds (ORI), such as the SBR012 series, to expand people’s access to financial instruments.

“Of course, the government continues to be committed to developing the good instrument as an education of financial inclusion and expanding access to the financial instrument for the community,” said Director General of PPR, Suminto, at the launch of SBR012-T2 and SBR012-T4 in Jakarta on Saturday.

The introduction of new features in SBR012, both in the context of a longer tenor and larger nominal purchase threshold, is intended to meet the varied needs of retail investors, he added.

There are two types of new features in SBR012—SBR012-T2 with a tenor of two years and SBR012-T4 with a tenor of four years.

The offered bonds are scripless state bonds. They cannot be traded in the secondary market, and they cannot be liquidated before maturity, except for early redemption.

The maturity date for SBR012-T2 is February 10, 2025, and SBR012-T4 is February 10, 2027. While the minimum order value of the bonds is Rp1 million, their maximum order value is different: Rp5 billion for SBR012-T2 and Rp10 billion for SBR012-T4.

SBR also provides quite competitive yields. From the tax perspective, it is subject to a tax rate of 10 percent, lower than that for several other financial instruments currently.

“We hope the issuance of SBR012 or the government securities (SBN) this year will continue to be successful, and in this case, we will definitely continue to provide easy access for the public to place orders and purchase the SBN, both through distribution expansion and through easy access to online transactions,” Suminto said.

Earlier, the government planned to issue retail state bond instruments (ORI) of SBR012-T2 and SBR012-T4 series, which would be offered online (e-SBN) with coupons above 6 percent.

DJPPR of the Finance Ministry has said that the retail bonds’ offering period will be from 9 a.m. (Western Indonesia Time) on January 19, 2023, to 10 a.m. on February 9.

Both coupons of the retail bonds offered are floating, with the floor rate set at the benchmark interest rate of the Bank Indonesia (BI).

Coupon payments will be made on the 10th of each month, with the first payment on March 10, 2023 (short coupon). If the coupon payment date does not fall on a business day, then the payment will be made on the following business day without interest compensation.

Source: Antara News

If we want to become a developed country by 2045, we must dominate (trade in various) parts of the world.

Jakarta Trade Minister Zulkifli Hasan is leading a trade mission to Saudi Arabia from January 21–23, 2023, to increase trade cooperation between the two countries.

“During this trade mission, we will review the opportunities to open modern Indonesian retail in Medina, Mecca, and Jeddah by Indonesian business actors,” he informed in a statement issued on Saturday.

He said he expects the establishment of modern micro, small, and medium enterprise (MSME) outlets in Saudi Arabia to help small business players from Indonesia to market their products.

In addition, it will boost national export performance, he pointed out.

The minister noted that the number of visits by Indonesian citizens (WNI) to Saudi Arabia has continued to increase.

“This is a very large market, which must be optimized. Hence, we are continuously striving to improve (bilateral) trade relations,” he added.

The sending of the Indonesian trade mission to Saudi Arabia is among efforts to develop new export markets, especially non-traditional ones. Earlier, trade missions were carried out to the United Arab Emirates (UAE) and India.

“After Saudi Arabia, there will also be trade missions to Eastern Europe, South Asia, Central Asia, and Latin America. If we want to become a developed country by 2045, we must dominate (trade in various) parts of the world,” Hasan said.

If the trade missions are not carried out from now, it will be too late for Indonesia to compete with other global business players in the future, he explained.

During the trade mission to Saudi Arabia, he is scheduled to meet with Minister of Commerce of the Kingdom of Saudi Arabia, Majid bin Abdullah Al Qasabi, and members of the Saudi Arabian Chambers of Commerce and Industry.

Furthermore, the minister will hold a discussion with the Saudi Food and Drug Authority (SFDA) and the Cooperation Council for the Arab States of the Gulf (GCC).

He will also inaugurate an Indonesia-Saudi Arabia business forum, attend a business matching event for Indonesian and Saudi Arabian businesspersons, as well as witness the signing of cooperation agreements between business players in Riyadh.

Members of the Indonesian Chamber of Commerce and Industry (Kadin), Indonesian Creative Entrepreneurs Association (APKI), and Indonesian Entrepreneur Chamber (Keind), and a total of 24 Indonesian business actors are participating in the trade mission to Saudi Arabia.

From January to November 2022, Indonesia’s trade with Saudi Arabia was recorded at US$7 billion, up 45.42 percent year on year (yoy).

During this period, Indonesia’s exports to Saudi Arabia reached US$1.84 billion, while its imports from Saudi Arabia touched US$5.17 billion.

Source: Antara News

By building these SPKLUs, hopefully, the transition process … can run smoothly … to achieve the NTB government’s net zero emission (NZE) target by 2050.

Mataram, NTB State-run electricity provider PT PLN (Persero) built and operationalized seven electric vehicle (EV) charging stations (SPKLUs) in West Nusa Tenggara (NTB) province in 2022 to expedite the development of the EV ecosystem.

The SPKLUs were set up at several strategic locations, which are easily accessible to the public, to allow EV owners to use the facilities, general manager of NTB PLN, Sudjarwo, said here on Saturday.

“It is hoped that (the establishment of) more SPKLU points will be able to increase public interest in switching to (using) electric vehicles,” he added.

He informed that the seven SPKLUs are located at the NTB Governor’s Office, NTB Provincial Transportation Office, NTB PLN’s Regional Main Unit, Customer Service Unit (ULP) of PLN Selong, Mataram 3 Vocational High School, MVP Grand Natura, and Hotel Santika Mataram.

Meanwhile, in 2023, PLN is planning to construct more SPKLUs at several other locations, such as the Mandalika Special Economic Zone, Zainuddin Abdul Madjid International Airport, Sumbawa PLN Customer Service Implementation Unit (UP3) Office, and Bima PLN UP3 Office.

Sudjarwo said that PLN is open to collaboration with all stakeholders, both government and private, to build more SPKLUs.

“By building these SPKLUs, hopefully, the transition process (from using conventional vehicles) to electric vehicles can run smoothly to reduce carbon emissions to achieve the NTB government’s net zero emission (NZE) target by 2050,” he added.

Meanwhile, Deputy Governor of NTB, Sitti Rohmi Djalilah, stated that her administration is committed to realizing the NZE target, including by conserving the environment and reducing carbon emissions.

“Certainly, the establishment of the SPKLUs will encourage us to switch from conventional vehicles to electric vehicles more quickly,” she added.

She said that the provincial government will soon issue a governor’s regulation (Pergub) to expedite the transition from conventional to electric vehicles.

Currently, she is using electric cars for work.

Source: Antara News

So we are ready to collaborate with other parties from all countries to develop EV batteries and optimize our infrastructures.

Jakarta The Business 20-Task Force Energy, Sustainability, and Climate (B20-TF ESC) has made several policy recommendations for accelerating the development of the electric vehicle (EV) ecosystem in Indonesia.

“We have proposed some policy recommendations and policy action, especially on how we can accelerate the EV penetration in each country,” CEO of PT Pertamina (Persero), Nicke Widyawati, said at an event at the Indonesia Pavillion during the World Economic Forum in Davos, Switzerland, on Wednesday.

The event was themed “Indonesia Economic Development Through Downstream Industries and Inclusive Partnership.”

Widyawati said the policy recommendations include accelerating sustainable energy use, ensuring a just and affordable transition, and enhancing energy security.

To accelerate the use of sustainable energy, Pertamina is focusing on energy efficiency, with electrification becoming a critical success factor, she informed.

“There is a target for energy efficiency for the demand side, how to manage the demand side energy efficiency, and we believe that electrification becomes a key success factor for that,” she said.

In addition, she highlighted the need for financing, especially from developed countries, since the transition to renewable energy requires enormous capital investment.

“So we also need investment from developed countries,” she said.

Widyawati, who also served as the co-chair of the B20-TF ESC during the 2022 G20, added that the second policy recommendation highlights the need for ensuring a just and affordable transition.

The recommendation points to the need to prepare for a just transition from sectors impacted by the energy transition toward relevant sectors, she informed.

She also pointed to the need for ensuring sustainable practices in mineral access for building new clean and low-carbon energy infrastructures, including electric vehicles.

The third recommendation concerns the need for enhancing energy security.

“We need the framework and regulation such as incentives to promote and accelerate the EV ecosystem,” Widyawati explained.

PT Pertamina (Persero) is playing a significant role in developing the EV battery ecosystem.

“We believe with the nickel reserves in Indonesia, we can produce the battery and can also increase the penetration of EV,” Widyawati said.

Pertamina has infrastructures that can be optimized for EV penetration, she added.

The company also has segmentation data on buying capability, mobility, and characteristics, she said.

PT Pertamina (Persero) has more than 7,400 gas stations, 6,100 Pertashops, and 63 thousand LPG outlets.

“So we are ready to collaborate with other parties from all countries to develop EV batteries and optimize our infrastructures,” Widyawati said.

The B20-TF ESC is a business community that supports the G20 with impactful and actionable policy recommendations from the business point of view.

It has more than 150 members, with eight co-chairs selected from several countries with different energy archetypes.

Meanwhile, Minister of Investment, Bahlil Lahadalia, said that the development of the EV ecosystem in Indonesia was started by involving foreign companies and state-owned enterprises, including PT Pertamina (Persero).

At least four companies have plans to invest in Indonesia to support EV development, including LG, CATL, Foxconn, and Britishvolt.

“The LG company invests US$9.8 billion, while the CATL company is around US$6 billion that they consolidate with Indonesian state-owned enterprises such as PT Pertamina (Persero), MIND ID, and PT Antam,” Lahadalia informed.

Additionally, Foxconn is planning to invest US$8 billion and Britishvolt US$2 billion.

According to Lahadalia, the government is welcoming serious investors to Indonesia by providing convenient licensing facilities and tax incentives.

Source: Antara News