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Indonesia Economy Forum

Indonesia posted 30 million dollar trade deficit for December 2019, much lower then what is expected by foreign news that forecast around 500 million dollar trade deficit in December. Surprisingly that news is also disappeared now :woot:

In total, Indonesian trade deficit is narrowing from 8,6 billion dollar in 2018 into 3,2 billion dollar in 2019. The biggest trade deficit caused by China and Thailand.

We hope we can post trade surplus in 2020 particularly after government introduce 30 % biodiesel program that is expected to reduce 4.5 billion dollar imported oil.

Our refinery and chemical project is also expected to curb imported oil and chemical starting for the next 3-4 years.
 
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This is a good thing for business. This is also only for simple building like two floor small office or home, as for factory it should still need environment impact analyst.

Omnibus law to scrap permit requirements for ‘simple’ buildings: Minister
  • Marchio Irfan Gorbiano and Made Anthony Iswara
    The Jakarta Post
Jakarta / Thu, January 16, 2020 / 12:44 pm
2019_12_14_83604_1576322793._large.jpg

Thick smog blankets high rise buildings in Jakarta's business district along Jl. Sudirman on Oct. 9, 2019. (JP/Dhoni Setiawan)

The government will ease permit requirements for the construction of small-scale buildings under a new omnibus law, Coordinating Economic Minister Airlangga Hartarto said on Wednesday.

Airlangga told reporters at the State Palace that authorities would not require permits for "simple" structures such as two-story buildings.

"For standard buildings that are already regulated and have prototypes, no further licensing will be needed," Airlangga said.

However, "highly complex" buildings will still require certification of occupancy (SLF) or a building permit (IMB), the minister said.

President Joko “Jokowi” Widodo’s second-term administration is preparing an omnibus bill that will include provisions aimed at improving the country’s ease of doing business by simplifying licensing to attract more investment.

The omnibus bill on job creation will also see environmental impact analyses (Amdal) and IMB requirements scrapped for low-risk investments. The Amdal and IMB requirements have been criticized by business players as unnecessary red tape.

Read also: Liberalization at what cost? Observers raise concerns over sustainability of investments

However, environmentalists and development planners have voiced opposition to the plan.

The Indonesian Forum for the Environment (Walhi) has lambasted the government’s plan, arguing that eliminating the IMB and Amdal requirements would harm the environment and people’s safety.

“We believe the government is destroying our environment by using foreign investment, when it should be protecting our natural resources by improving the overall system and strengthening law enforcement, particularly through environmental analyses,” Walhi campaigner Edo Rahman told The Jakarta Post in December.

https://www.thejakartapost.com/news...quirements-for-simple-buildings-minister.html
 
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Indonesia to Become Southeast Asia’s Biggest Stock Market
By Lee J Miller and Anuchit Nguyen
January 15, 2020


Indonesia, Southeast Asia’s largest economy, is finally poised to take the title of the biggest equity market in the region.

Its market value of $529 billion has nearly matched that of slumping Thailand, which snatched the top spot from Singapore in May, buoyed by a strengthening baht. With its currency giving back some gains and economic growth trailing forecasts, the SET Index is the region’s only benchmark to decline in the past three months.

In contrast, Indonesia’s Jakarta Composite Index has gained 5.5% in U.S. dollar terms during that period. President Joko Widodo is embarking on a new round of infrastructure projects and pursuing reforms to stimulate the fourth-most populous country in the world.

Indonesia did hold the most-valuable crown for several short periods between January and April of last year. Before 2019, Singapore was Southeast Asia’s leader the vast majority of the time since at least 2003, when Bloomberg began compiling the data.

“There is a big opportunity in Indonesia,” said Vincent Mortier, deputy chief investment officer at Amundi Asset Management, which manages about 1.56 trillion euros ($1.74 trillion) of assets. “It has a growth story, political landscape and valuations.” He rates Thailand underweight “because of its weak economy,” he said.

Indonesia’s PT Bank Central Asia now ranks as the region’s biggest company by value, at about $62 billion, ahead of Singapore’s DBS Group Holdings Ltd. and Thailand’s PTT Pcl.

To be sure, the biggest Southeast Asian market ranks 21st globally, according to data compiled by Bloomberg. Moreover, eight individual companies are worth more than the market of either Thailand or Indonesia, including three trillion-dollar firms: Saudi Arabian Oil Co., Apple Inc. and Microsoft Corp.

Bloomberg calculates market capitalization using only actively traded, primary stocks on each country’s exchanges, excluding securities such as exchange-traded funds.

https://www.bloomberg.com/news/arti...-become-southeast-asia-s-biggest-stock-market
https://www.bloomberg.com/news/arti...-become-southeast-asia-s-biggest-stock-market
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UAE explores investment for Balikpapan refinery development
16th Jan 2020 13:10

minyak.jpg

Jakarta (ANTARA) - Indonesia's state oil and gas firm Pertamina and the United Arab Emirates' investment company Mubadala entered a refinery investment principle agreement to tap investment cooperation opportunities in developing the Balikpapan refinery in East Kalimantan.

The agreement is expected to unveil a lucid structure for joint investment to ascertain the expedited realization of the refinery development master plan (RDMP) RU V Balikpapan.

Pertamina President Director Nicke Widyawati and Mubadala CEO for Petroleum & Petrochemicals Musabbeh Al Kaabi signed the agreement in the presence of Indonesian President Joko Widodo and Abu Dhabi Crown Prince and Vice Chief of the UAE Armed Forces Syaikh Mohamed bin Zayed Al Nahyan in Abu Dhabi, according to a written information received by Antara on Wednesday.

Widyawati said the inking of the agreement mirrored the commitment of Pertamina and Mubadala, as one of the investors keen on realizing the RDMP Balikpapan.

The inking of the principle agreement is aimed at serving as a follow up on the partnership process towards the phase of due diligence and negotiation, she noted.

"This demonstrates the commitment of both sides to strike a business agreement to accelerate the realization of RDMP Balikpapan as mandated by the government to Pertamina," she expounded.

Related news: Indonesia, UAE strike biggest landmark deal: Luhut Pandjaitan

Related news: UAE keen to partake in Indonesian new capital development

Pertamina is seeking equity investors to join in the realization of RDMP RU V Balikpapan. The process kicked off in May 2019 by issuing a project teaser to potential investors comprising international oil and gas companies, commercial firms, and financial investors, she stated.

"After the project teaser was issued, several investors have sent a letter of intent to Pertamina. Pertamina will later conduct project sounding and arrange a visit to the Balikpapan refinery for interested investors," she noted.

To realize the RDMP Balikpapan, the project seeks financial investors since the project has entered the construction phase and has had a tolling scheme in place.

In this context, Mubadala is one of the financial investors that has met Pertamina’s set criteria. Furthermore, Mubadala, being technically competent, is expected to assist Pertamina in project management. Related news: Aceh's Kadin applauds UAE's investment interest

Related news: Indonesia, UAE expect Middle East tension to decrease

EDITED BY INE

Translated by: Afut Syafril Nursyirwan/Suhart
Editor: Fardah Assegaf
 
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Softbank eyes $40b investment in new capital city: Luhut

The Japan-based Softbank Group has offered to invest from US$30 billion to $40 billion in the development of Indonesia's new capital city, according to a senior minister.

Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said on Friday that President Joko “Jokowi” Widodo had yet to make a decision regarding investments connected to the project.

“The President will decide on the matter in February,” Luhut told a press briefing in Jakarta. “We will meet again with [Softbank CEO and founder] Masayoshi Son in Davos and in Tokyo.”

Son met Jokowi in Jakarta last week and expressed an interest in participating in the project. He has been appointed to the steering committee overseeing the capital city’s construction together with Abu Dhabi Crown Prince Mohammed Bin Zayed and former United Kingdom prime minister Tony Blair.

"We won't discuss the specific number yet, but a new smart city, the newest technology, a clean city and a lot of AI [artificial intelligence] — that's what I'm interested in supporting," said Son when asked about how much he would invest in the new capital city after the meeting with Jokowi.

The billionaire is a major investor in well-known technology companies such as international marketplace Alibaba and coworking space WeWork, as well as ride-hailing app Grab.

The United Arab Emirates and the United States had also expressed interest in funding a new capital city in North Penajem Paser and Kutai Kertanegara regencies in East Kalimantan, to diversify away from and ease the burden of the densely populated Jakarta and the broader Java Island.

The new capital city is expected to cost about Rp 466 trillion ($34 billion). In the initial plan, the government expected 54.4 percent of the Rp 466 trillion to come from private-public partnership schemes, while 26.4 percent would be financed by the private sector. The remaining 19.2 percent is expected to be covered by the state budget.

Luhut added that the government was planning to remodel the financing structure in a bid to accommodate foreign investors.

The new city is to host world-class educational institutions, botanical gardens, modern hospitals and an environmentally friendly transportation system, according to government officials.
https://www.thejakartapost.com/amp/...40b-investment-in-new-capital-city-luhut.html

U.S., Japan May Invest in Indonesia Islands Near South China Sea

The U.S., Japan and South Korea are keen to invest in Indonesia’s Natuna Islands as President Joko Widodo steps up efforts to rebuff Chinese claims over the resource-rich waters in the South China Sea.

The countries are interested in building fisheries processing and manufacturing industries in Natuna, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan, told reporters in Jakarta on Friday. Indonesia can manage the sea dispute with China without going into a war, Pandjaitan, a former general, said.

“The U.S. investors have expressed their interest, along with investors from Japan, Korea and China,” Padjaitan said. “For us, it doesn’t matter where they come from.”

Widodo’s efforts to lure foreign investment into the Natuna islands may ratchet up tension with Beijing following the intrusion of Chinese fishing vessels into an area claimed by Indonesia as an exclusive economic zone. Indonesia is not a claimant in the broader dispute over the South China Sea, but it does insist on its sovereign rights to waters around the Natunas.

Beijing says while it has no territorial disputes with Jakarta, claims over maritime interests in certain waters in the South China Sea “overlap.”

“War is the last resort in our negotiation process,” Pandjaitan said referring to the standoff with China on Natuna. “But under no circumstances will we negotiate our sovereignty and territorial rights.”

Jokowi, as Widodo is commonly known, visited the Natuna islands last week and asserted Indonesia’s sovereignty over the waters after authorities deployed fighter jets and warships to push back the Chinese fishing vessels, which were accompanied by coast guard ships. The president also inaugurated a fisheries processing center in the region and days later invited Japan to invest in Natuna to develop the fishing industry.

Indonesia is also seeking investment by Vietnamese marine processing companies. Foreign Minister Retno Marsudi met officials of Hai Nam Co., a seafood importer this week in Ho Chi Minh City, and asked it to explore a joint venture with Indonesian companies for a fisheries processing unit in areas including Natuna, according to a foreign ministry statement Thursday.

It has identified a location in north Natuna for a fishing port, while southern Natuna will serve as a base for the navy, Pandjaitan said. The country will also soon acquire its first ocean-going vessel, probably from Denmark, to beef up its sea powers, he said.
https://www.bloomberg.com/news/arti...slands-near-south-china-sea?srnd=economics-vp
 
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Technology
SoftBank Offers to Invest $40 Billion in Indonesia’s Capital
By
Harry Suhartono
and
Arys Aditya
January 17, 2020, 1:09 AM ESTUpdated on January 17, 2020, 6:01 AM EST
  • Details of SoftBank’s investments to be finalized in February
  • Government to meet SoftBank’s Masayoshi Son in Davos and Tokyo
360x-1.jpg

Masayoshi Son, left, with Joko Widodo in Jakarta. Source: Press Bureau of Presidential Secretariat, Republic of Indonesia
SoftBank Group Corp. offered to invest $30 billion to $40 billion toward the development of a new Indonesian capital, a senior member of President Joko Widodo’s cabinet said on Friday.

SoftBank Chief Executive Officer and founder Masayoshi Son met Jokowi, as the head of state is popularly known, in Jakarta last week and expressed his interest in joining the project. The billionaire has already been appointed to the steering committee overseeing the city’s construction.

360x-1.jpg

Masayoshi Son, left, with Joko Widodo in Jakarta.

Source: Press Bureau of Presidential Secretariat, Republic of Indonesia

“I will meet Masayoshi in Davos and then Tokyo,” Coordinating Minister for Maritime Affairs and Investments Luhut Pandjaitan told a news conference in Jakarta. The “president will decide on the matter in February.”

The size of the investment proposal from the Japanese company is puzzling as Indonesia has estimated the total cost of building the new capital from the scratch at about $34 billion. SoftBank said in an emailed statement later Friday that the company hasn’t disclosed actual numbers. In 2018, the company signed a memorandum of understanding to support a planned $200 billion solar project in Saudi Arabia. SoftBank and the Public Investment Fund have said they’re continuing to collaborate on solar energy plans after the Wall Street Journal said the project was put on hold.

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U.A.E. Prince, SoftBank’s Son to Steer New Indonesian Capital

 
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Fintech start-up Akseleran raises $8.55m in Series A funding
  • Norman Harsono
    The Jakarta Post
Jakarta / Thu, January 16, 2020 / 03:23 pm
2020_01_16_84783_1579150907._large.jpg
Akseleran CEO and co-founder Ivan Tambunan (third left) speaks about the fintech start-up's performance and future plans at a press conference on Jan. 16, 2020 in Jakarta. (Akseleran/Akseleran)

Financial technology (fintech) start-up Akseleran, a peer-to-peer (P2P) lender based in Jakarta, announced that it had raised US$8.55 million in Series A funding in its bid to capture a larger slice of Indonesia's small-and-medium enterprises (SMEs) market.

The start-up said in a statement on Wednesday that Singaporean venture capital firm BeeNext led the Series A round. Other participating investors were Central Capital Ventura (CCV), a subsidiary of privately owned Bank Central Asia (BCA), Access Ventures, Agaeti Venture Capital and the Ahabe Group.

Akseleran said it would use the funds to develop its talent and technology.

Co-founder Ivan Tambunan said that the fintech start-up planned to expand its lender base by offering “a higher return on investment through a safe and efficient platform”. It also aimed to “penetrate deeper into the Indonesian market, particularly in underserved areas”.

Akseleran has disbursed more than Rp 1 trillion ($73.27 million) in loans to 2,000 MSMEs since its establishment in October 2017, and plans to disburse Rp 2 trillion this year.

Indonesian SMEs, which contribute around 23 percent to the economy, are a lucrative market for the country’s growing fintech industry. SMEs located in more remote regions beyond the reach of conventional banks but still have access to mobile networks, are particularly lucrative.

Akseleran is one of 12 fintechs in the P2P lending business that received their lending permit from the Financial Services Authority (OJK) in December 2019. The permit certifies that the company meets the government's data security standards.

Agaeti managing partner Pandu Sjahrir, who is also a director at coal miner Toba Bara Sejahtera, hinted that Akseleran's certification was one reason the venture capital company had invested in the start-up, as it indicated that Akseleran could “reliably support the financing gap of SMEs”.

https://www.thejakartapost.com/news...seleran-raises-8-55m-in-series-a-funding.html
 
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‘Hurry up’: Amazon, Grab among global firms urged to invest in Indonesia


Made Anthony Iswara
The Jakarta Post

Jakarta

Jakarta / Mon, January 20, 2020 / 02:02 pm

2018_09_21_54358_1537498077._medium.jpg

Office of Investment Coordination Board (BKPM) in Jakarta.(kontan.co.id/Achmad Fauzi)

Indonesia has set its eyes on multinational corporations attending the World Economic Forum (WEF) annual meeting in Davos, Switzerland, to attract investments, including tech behemoth Amazon and Singapore ride-hailing giant Grab.

Investment Coordinating Board (BKPM) head Bahlil Lahadalia will have one-on-one meetings with eight global corporation leaders from Jan. 20 to 23 on the sidelines of the event, said the agency’s deputy director for investment climate development, Farah Ratnadewi Indriani.

"In a nutshell, the BKPM head will ask multinational companies to increase their existing investments in Indonesia — for those who have already invested,” Farah said in a press statement on Sunday. “For those who have not invested, the BKPM head will invite them to [Indonesia].”

BKPM’s efforts echo President Joko “Jokowi” Widodo’s drive to attract more investors to Indonesia, which is expected to help stoke stagnant economic growth.

Apart from Amazon and Grab, Bahlil will also meet leaders of the travel start-up Traveloka, Japanese financial services firm Mizuho, United Arab Emirates-based luxury hotel chain Jumeirah Hotels and Resorts, Chinese dairy giant Yili Group, German engineering company Siemens Group and Japanese state-lender Japan Bank for International Cooperation (JBIC).

The government will particularly “invite” financial institutions to join Indonesia's sovereign wealth fund, Farah said.

“Don’t be left behind, hurry up,” Farah said.

From January to September 2019, overall realized investment reached Rp 601.3 trillion (US$44 billion), a 12.3 percent increase year-on-year (yoy), BKPM data shows. Domestic investment grew 17.3 percent to Rp 283.5 trillion while foreign direct investment (FDI) rose 8.2 percent yoy to Rp 317.8 trillion.

Farah added that the agency would use the opportunity at WEF to boost investments from the EU. The United Kingdom and the Netherlands are currently the only European countries included in the list of Indonesia’s top 10 biggest investors, she said.

According to BKPM data, the European bloc’s investment realization in the third quarter last year was $2.8 billion, up 19.25 percent from $2.3 billion during the same period in 2018. Indonesia received around 15,770 projects from Europe between 2015 and the third quarter of 2019, the data revealed.

“We are challenging Europe: Don’t lose against Asian countries. We admit that European countries are more cautious [in investing],” said Farah, citing Singapore, Japan, China, Hongkong and South Korea as Asian countries that had dominated Indonesia’s foreign investment landscape.

The BKPM’s attempt to attract EU companies is happening in the backdrop of the bloc’s disputes with Indonesia over a ban on palm oil and nickel ore exports for most of 2019, characterized by tit-for-tat trade spats, tariffs and lawsuits. Indonesia is expected to meet the bloc around late January this year for consultations.

https://www.thejakartapost.com/news...lobal-firms-urged-to-invest-in-indonesia.html
 
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‘Hurry up’: Amazon, Grab among global firms urged to invest in Indonesia


Made Anthony Iswara
The Jakarta Post

Jakarta

Jakarta / Mon, January 20, 2020 / 02:02 pm

2018_09_21_54358_1537498077._medium.jpg

Office of Investment Coordination Board (BKPM) in Jakarta.(kontan.co.id/Achmad Fauzi)

Indonesia has set its eyes on multinational corporations attending the World Economic Forum (WEF) annual meeting in Davos, Switzerland, to attract investments, including tech behemoth Amazon and Singapore ride-hailing giant Grab.

Investment Coordinating Board (BKPM) head Bahlil Lahadalia will have one-on-one meetings with eight global corporation leaders from Jan. 20 to 23 on the sidelines of the event, said the agency’s deputy director for investment climate development, Farah Ratnadewi Indriani.

"In a nutshell, the BKPM head will ask multinational companies to increase their existing investments in Indonesia — for those who have already invested,” Farah said in a press statement on Sunday. “For those who have not invested, the BKPM head will invite them to [Indonesia].”

BKPM’s efforts echo President Joko “Jokowi” Widodo’s drive to attract more investors to Indonesia, which is expected to help stoke stagnant economic growth.

Apart from Amazon and Grab, Bahlil will also meet leaders of the travel start-up Traveloka, Japanese financial services firm Mizuho, United Arab Emirates-based luxury hotel chain Jumeirah Hotels and Resorts, Chinese dairy giant Yili Group, German engineering company Siemens Group and Japanese state-lender Japan Bank for International Cooperation (JBIC).

The government will particularly “invite” financial institutions to join Indonesia's sovereign wealth fund, Farah said.

“Don’t be left behind, hurry up,” Farah said.

From January to September 2019, overall realized investment reached Rp 601.3 trillion (US$44 billion), a 12.3 percent increase year-on-year (yoy), BKPM data shows. Domestic investment grew 17.3 percent to Rp 283.5 trillion while foreign direct investment (FDI) rose 8.2 percent yoy to Rp 317.8 trillion.

Farah added that the agency would use the opportunity at WEF to boost investments from the EU. The United Kingdom and the Netherlands are currently the only European countries included in the list of Indonesia’s top 10 biggest investors, she said.

According to BKPM data, the European bloc’s investment realization in the third quarter last year was $2.8 billion, up 19.25 percent from $2.3 billion during the same period in 2018. Indonesia received around 15,770 projects from Europe between 2015 and the third quarter of 2019, the data revealed.

“We are challenging Europe: Don’t lose against Asian countries. We admit that European countries are more cautious [in investing],” said Farah, citing Singapore, Japan, China, Hongkong and South Korea as Asian countries that had dominated Indonesia’s foreign investment landscape.

The BKPM’s attempt to attract EU companies is happening in the backdrop of the bloc’s disputes with Indonesia over a ban on palm oil and nickel ore exports for most of 2019, characterized by tit-for-tat trade spats, tariffs and lawsuits. Indonesia is expected to meet the bloc around late January this year for consultations.

https://www.thejakartapost.com/news...lobal-firms-urged-to-invest-in-indonesia.html

I dont like the idea of Amazon coming to Indonesia. This company will not set up any manufacturing factory in Indonesia, just a warehouse and an office in Jakarta and sell other countries product (most probably from China) to Indonesia market.
 
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I dont like the idea of Amazon coming to Indonesia. This company will not set up any manufacturing factory in Indonesia, just a warehouse and an office in Jakarta and sell other countries product (most probably from China) to Indonesia market.
they actually wanted to implement a cloud computing and big data on our government departement ,while im not directly taking part in one of their project , but i do know 1 or 2 thing , our future E-Government would likely going to use AWS , they also will invest on making data center in indonesia (which now their data center are only in singapore (for SEA Region) ) , maybe if you find a newly constructed building with many heavy air conditioning setup in around jabodetabek , it could be one of their newly built data center , im actually support this , since it will improve some of the public service sector.
 
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