Indonesia Economy Forum

[Indos]

Third delivery of Sinovac vaccine has been arrived in Jakarta. The third arrivals contain 15 million Sinovac vaccines raw material. The third vaccine arrival is in the form of raw material that later will be transformed into vaccine by state owned pharmacy company, Biofarma.

 

[Indos]

UPDATE 1-China to import more Indonesian products to balanced trade

By Agustinus Beo Da Costa, Stanley Widianto
3 Min Read

(Recasts with China’s senior diplomat comments, quotes, context)

JAKARTA, Jan 13 (Reuters) - China would import more Indonesian products and increase investment in Southeast Asia’s largest economy, a top Chinese diplomat said on Wednesday, as Jakarta urged Beijing to remove barriers to make trade between the two countries more balanced.

“We look forward to expanding imports from Indonesia and the Chinese investments in Indonesia so that we could bring about more healthy and balanced growth of trade between our two countries,” visiting State Councillor Wang Yi said in a joint statement with Indonesian Foreign Minister Retno Marsudi.

China is Indonesia’s biggest trade partner and an important source of investment, but the large trade deficit with China has often been a source of concern in Indonesia.

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The deficit shrunk considerably between January to November 2020, falling to $7 billion from $15.4 billion in the same period in 2019, as Indonesia’s demand for imported products plunged amid a coronavirus epidemic and its first recession in 22 years.

Indonesian minister Retno urged China to remove trade barriers for the country’s top products, such as palm oil, fisheries, fruits and bird’s nest, as a way to address the trade imbalance.

“Efforts should be made to pursue an improving and more balanced trade,” she said.

Retno said Indonesia also agreed to a Chinese study over the Lambakan dam project in East Kalimantan. The dam is one of Indonesia’s main projects to control floods and is worth around $400 million, according to local media reports.

China to import more Indonesian products to balanced trade

China would import more Indonesian products and increase investment in Southeast Asia's largest economy, a top Chinese diplomat said on Wednesday, as Jakarta urged Beijing to remove barriers to make trade between the two countries more balanced.

www.reuters.com

 

[Indos]

Medical staff have started to get vaccinated

 

[Indos]

Sixteen companies relocate to Indonesia amid global downturn ​

Dzulfiqar Fathur Rahman
The Jakarta Post
PREMIUM
Jakarta / Fri, January 22, 2021 / 01:09 pm

Sixteen companies have relocated to Indonesia from mainland China, Taiwan, Japan, South Korea and the United States despite the overall global downturn in investment due to the COVID-19 pandemic last year, an official has said. Investment Coordinating Board (BKPM) head Bahlil Lahadalia said Thursday that the companies had either started construction or production last year.

The investment was estimated to reach US$7.15 billion and create around 68,600 jobs. “Back in 2018 and 2019, when the trade war between China and the US broke out, not a single company was relocating [to Indonesia],” Bahlil said in a virtual discussion held by media outlet Kompas. “In 2020, regardless of the COVID-19 pandemic, we managed to get at least 16 companies." In 2019, President Joko “Jokowi” Widodo said he was upset because none of the 33 companies relocating from C...

Sixteen companies relocate to Indonesia amid global downturn

The investment of 16 firms setting up production sites in Indonesia last year is estimated at US$7.15 billion and expected to create around 68,600 jobs.

www.thejakartapost.com

 

[Indos]

Palm oil prices may hit nine-year high in turbulent 2021

Malaysia’s benchmark palm oil contract kicked off the year at near decade-high levels of 3,800 ringgit (US$940.13) due to a supply crunch in global edible oils.

www.thejakartapost.com

 

[Indos]

Jokowi get second vaccine shot

 

[Indos]

Throughout 2020, Krakatau Steel (KRAS) reduces operating costs by 41%

Monday, January 25, 2021 / 18:27 WIB

ILLUSTRATION. Workers complete the hot rolling mill process at the steel mill of PT Krakatau Steel Tbk, Cilegon, Banten. KONTAN / Fransiskus Simbolon

Reporter: Ridwan Nanda Mulyana | Editor: Herlina Kartika Dewi

KONTAN.CO.ID - JAKARTA. PT Krakatau Steel (Persero) Tbk ( KRAS ) claims the efficiency program it has been running since the transformation and restructuring at the end of 2018 has had a significant impact on reducing operating costs.

In 2020, the issuer coded as KRAS on the Indonesia Stock Exchange said that it had reduced operating costs by 41% to US $ 200.8 million, compared to 2019 which amounted to US $ 337.4 million.

Krakatau Steel Corporate Secretary Pria Utama said that the achievement of the reduction in operating costs consisted of several components, including a reduction in energy costs, a reduction in utility costs, a reduction in consumable costs, a reduction in spare parts costs, and a reduction in other operating costs.

"For efforts to optimize supply chains and maintain production reliability in 2020, Krakatau Steel is able to reduce energy costs by 47% to US $ 20.5 million in 2020 from the previous US $ 38 million in 2019," Pria said in a written statement. , Monday (25/1).

He added that the reduction in the cost of consumables and spare parts for each provides a reduction in costs with quite high savings. That is 59% for the reduction of consumable costs to US $ 16 million in 2020 from the previous US $ 40.6 million in 2019.


Meanwhile, the decrease in spare parts costs reached 56% from US $ 11 million in 2019 to US $ 4.5 million in 2020. In addition, the reduction in utility costs also reached 27% from US $ 53.5 million in 2019 to US $ 39.2 million in 2020.

“This cost reduction is an extraordinary achievement made by Krakatau Steel. We are committed to transforming and improving our performance to make it stronger in the national and regional steel markets, "continued Pria.

He continued, Krakatau Steel also carried out organizational efficiency through the implementation of workforce optimization and negative growth strategies. In 2020, the cost of organic labor decreased by 33% to US $ 61.6 million compared to the previous year which reached US $ 92.2 million.

In addition, the cost of outsourcing labor has also decreased quite significantly, namely by 74% to US $ 9.8 million in 2020 compared to 2019 which reached US $ 38 million. The cost reduction also occurred in Wholesale Services Outsourcing by 67% to US $ 1.7 million in 2020 from US $ 5.3 million in 2019.

According to Pria, this is part of an outsourcing labor cost efficiency strategy that prioritizes the interests of increasing sales and revenue. He also ensured that KRAS would continue its efficiency initiatives. That way, the cost of goods sold will get smaller, thereby increasing the competitiveness of Krakatau Steel's steel products.

"By becoming more competitive and supported by a good marketing strategy, we are sure that we will be able to increase sales volume in 2021 which will also have an impact on better performance. In terms of performance achievements in 2020, Krakatau Steel is estimated to reap profits in the range of US $ 40. -US $ 50 million ", concluded Pria.

Sepanjang 2020, Krakatau Steel (KRAS) turunkan biaya operasi sebesar 41%

Pada tahun 2020,Krakatau Steel telah menurunkan biaya operasional sebesar 41% menjadi US$ 200,8 juta.

investasi.kontan.co.id

 

[Indos]

Tesla to Submit Investment Proposal as Indonesia's Battery Plan Is Taking Shape
BY :JAKARTA GLOBLE, FEBRUARY 04, 2021

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan (B1 Photo)

Jakarta. Indonesia has expected Tesla, the world's largest carmaker company by market capitalization, to submit a proposal about the company's plan to establish a car battery plant and energy storage system in the archipelago today, as the country's plan to dominate the electric car battery market begins to take shape.

Tesla's proposal could be one in a series of ore processing and battery investments that the government hope would make up the bulk of the country's $64 billion investment target for this year.

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said on Wednesday that preliminary discussion with Tesla had gone well despite challenges from the Covid-19 pandemic.

"We have already made six video calls... I think today or tomorrow we will receive their proposals," Luhut said in a seminar held by Indonesia Stock Exchange (IDX) on Wednesday.

"We don't know how big it is, but what we do know is that we cannot disclose too much detail to the public because the [non-disclosure agreement] has been signed," Luhut said.

President Joko "Jokowi" Widodo has made his intention clear to leverage Indonesia's nickel reserve, the largest globally, to establish a country's car battery manufacturing industry.

Last October, the state-owned mining holding company Indonesia Asahan Aluminium (Mind ID), Aneka Tambang, and the state energy firm Pertamina and utility company Perusahaan Listrik Negara (PLN) set up Indonesia Baterai, a holding company that would involve in the electric car battery supply chain and distribution.

Contemporary Amperex Technology, or CATL, a battery manufacturer from China, and South Korea's largest chemical company LG Chem have committed their investment in battery manufacturing to take in the nickel supplied by the Indonesian holding company.

Bahlil Lahadalia, the head of the Investment Coordinating Board (BKPM), said separately that LG Chem had booked a piece of land in the government-sponsored Batang Industrial Complex in Central Java.

Speculation about battery investments has fueled the rally of Indonesia's nickel producers in the past few months. State-controlled miner Aneka Tambang (Antam) saw its stock prices rose by 237 percent since last October. The share price of Antam's rival, Vale Indonesia, also jumped 63 percent over the period, trading at 31.5 percent of its earnings.

"The government wants to downstream from the battery industry in Indonesia," Septian Hario Seto, the deputy for investment and mining at the Coordinating Ministry for Maritime Affairs and Investment, told CNBC Indonesia.

"The supply chain of lithium batteries is quite long, nickel ore is extracted from nickel, and cobalt is made a precursor to the cathode and then mixed with anodes into cell batteries, cell batteries will be built into battery packs," Septian said.

"What we are saying to LG, CATL, and to Tesla that at least 70 percent of the nickel they obtain in Indonesia must be processed into the battery pack, not just semi-finished battery or cathode that they then export," he said.

Freeport and Tsingshan

Jokowi target a total of Rp 900 trillion ($64 billion) in domestic and foreign investments this year, up from Rp 826 trillion last year. Luhut said he was confident the country could easily reach the target with investments in the electric battery supply chain.

Apart from Tesla's, CATL's, and LG Cham's proposed investment, Freeport Indonesia also makes its mark in Indonesia's battery grand plan.

Luhut said the country's largest gold miner was finalizing a $2.8 billion deal with a Chinese steelmaker Tsingshan Steel to build a copper smelter in Weda Bay, an industrial complex focusing on nickel processing in Halmahera, North Maluku.

"The agreement between Tsingshan and Freeport in Weda Bay, Halmahera, is being finalized. The deal is for a copper smelter, which produces sulfuric acid as a byproduct," Luhut said.

The minister said nickel ore smelters in Weda Bay could use the sulfuric acid in their production process.

"If all goes according to plan, in 2023, we will produce the NM811 lithium battery, which is the latest technology," he said.

Tesla to Submit Investment Proposal as Indonesia's Battery Plan Is Taking Shape

Tesla's proposal could be one in a series of ore processing and battery investments spearheading Indonesia's ambition in 2021.

jakartaglobe.id

 

[Indos]

Breaking: Indonesia’s economy shrinks 2.07 percent in 2020 ​

Dzulfiqar Fathur Rahman and Farida Susanty

The Jakarta Post
PREMIUM
Jakarta / Fri, February 5, 2021 / 10:38 am

Indonesia’s economy contracted 2.07 percent year-on-year (yoy) in 2020, well within the government’s expectation and the first annual contraction since 1998 Asian financial crisis, as the country continued to struggle with the persisting pandemic, while nearly all gross domestic product (GDP) components fell, Statistics Indonesia (BPS) announced on Friday.

BPS also announced that the economy shrank 2.19 percent yoy in the fourth quarter last year, which showed slowing contraction from the year’s second and third quarter, when the GDP dropped 5.32 percent yoy and 3.49 percent yoy, respectively.

The previous contractions led the country to its first recession in two decades. “This still shows improvement, even though it might not be what we hoped for. We still need to evaluate what’s working, what needs to be strengthened, so that economic growth ca...

Breaking: Indonesia’s economy shrinks 2.07 percent in 2020

The weak economic recovery reflects sluggish household spending amid large disbursement of government's coronavirus stimulus funds.

www.thejakartapost.com

 

[Indos]

State firms ink agreement to build paracetamol raw material plant

8th January 2021

Signing of the agreement between PT Kimia Farma and PT Kilang Pertamina Internasional on development of the pharmaceutical plant to produce paracetamol raw material in Jakarta in December 2020. ANTARA/HO-Kimia Farma

Jakarta (ANTARA) - State-run pharmaceutical firms PT Kimia Farma Tbk (Persero) and PT Kilang Pertamina Internasional (PT KPI) signed a cooperation agreement to produce raw material for paracetamol to support self-reliance in the national pharmaceutical industry.

The two state-run companies have inked a Head of Agreement (HoA) on a business cooperation scheme based on the joint study encompassing the supply of benzene as raw material, off-take plan, transaction scheme and commercial evaluation, and project development strategy.

Deputy Minister of State Enterprises Pahala Nugraha Mansury, in a statement here on Friday, lauded the cooperation to build a pharmaceutical plant to produce raw material for paracetamol, with an annual capacity of 3,800 tons.

Mansury noted that the cooperation is expected to support the domestic pharmaceutical industry's self-reliance, as currently some 95 percent of the medicine raw material was imported.

"We can learn from the COVID-19 pandemic that health is an inseparable capital to recover the national economy. However, we have to understand that until now, 95 percent of the medicine raw material was still imported," Mansury stated.

PT KPI is a sub-holding of state-run oil company PT Pertamina in the refinery and petrochemical sector.

President Director of Pertamina Nicke Widyawati remarked that under the cooperation, benzene and propylene produced from its Refinery Unit IV in Cilacap will be processed further into para aminophenol (PAF) as raw material of the pharmaceutical products, including paracetamol.

"The cooperation will boost synergy and collaboration among state-run enterprises in the areas of business, research and technology, and professional human resource development," she noted.

Support from all stakeholders is deemed necessary to create a conducive ecosystem for development of the petrochemical and pharmaceutical industry.

Director of Digital Healthcare PT Bio Farma (Persero) Solehudin Al Ayubi noted that the holding company in the pharmaceutical industry had designed the roadmap to reduce imports of raw material.

It has improved the value chain ecosystem in the healthcare industry through establishment of the medicine raw material firm PT Kimia Farma Sungwun Pharmacopia.

State firms ink agreement to build paracetamol raw material plant

State-run pharmaceutical firms PT Kimia Farma Tbk (Persero) and PT Kilang Pertamina Internasional (PT KPI) signed a cooperation agreement to produce raw ...

en.antaranews.com

 

[Whizzack]

Tesla submits proposal to Indonesia for battery and energy storage project: report

Credit: Tesla/YouTube
Reports have emerged that Tesla has submitted an investment proposal to Indonesia for a possible battery facility in the country. The update was shared in a statement to reporters on Friday by Septian Hario Seto, Indonesia’s deputy head for investment and mining coordination.
Indonesia boasts one of the world’s largest nickel reserves, which happens to be a material that Tesla needs to ramp the production of its 4680 cells. Elon Musk has noted in the past that Tesla is looking to acquire as much nickel as possible and that it would grant a giant contract to any company that could provide the material, provided that the nickel is sourced sustainably.

Being the world’s largest nickel producer, Indonesia has publicly expressed its intentions to attract Tesla. Interestingly enough, Indonesia stopped nickel shipments last year in an effort to develop a full nickel supply chain within the country, starting from extraction and processing to the production of batteries. Tesla, for its part, appears to have expressed its intent to establish a presence in the country.

“I received their proposal yesterday morning… next week we will meet them (virtually) to get an official explanation,” Septian said, adding that the proposal goes beyond just Tesla acquiring nickel from Indonesia. “If they only want to buy raw materials, we are not interested,” the official noted, according to Reuters.

In his statement to the media, Septian stated that he could not provide details of Tesla’s proposal for now due to a nondisclosure agreement with the electric car maker. He did, however, mention that the focus of Indonesia and Tesla’s discussions so far has been on batteries and energy storage solutions. With this in mind, it appears that if Tesla will establish a Gigafactory in Indonesia, it would be focused on batteries and Tesla Energy products like the Powerwall and Megapack.

Back in November, Indonesian President Joko Widodo revealed that he is sending a high-level delegation to meet with the electric car maker’s top executives. The president mentioned that the trip would partly be aimed at promoting Indonesia’s “Omnibus” Job Creation Law, an initiative that harmonizes 79 existing laws. This significantly cuts red tape and allows companies like Tesla to establish a presence in the country without much difficulties.

Tesla submits proposal to Indonesia for battery and energy storage project: report

Reports have emerged that Tesla has submitted an investment proposal to Indonesia for a possible battery facility in the country. The update was shared in a statement to reporters on Friday by Septian Hario Seto, Indonesia’s deputy head for investment and mining coordination. Indonesia boasts...

www.google.com

 

[Indos]

Tesla submits proposal to Indonesia for battery and energy storage project: report

Credit: Tesla/YouTube
Reports have emerged that Tesla has submitted an investment proposal to Indonesia for a possible battery facility in the country. The update was shared in a statement to reporters on Friday by Septian Hario Seto, Indonesia’s deputy head for investment and mining coordination.
Indonesia boasts one of the world’s largest nickel reserves, which happens to be a material that Tesla needs to ramp the production of its 4680 cells. Elon Musk has noted in the past that Tesla is looking to acquire as much nickel as possible and that it would grant a giant contract to any company that could provide the material, provided that the nickel is sourced sustainably.

Being the world’s largest nickel producer, Indonesia has publicly expressed its intentions to attract Tesla. Interestingly enough, Indonesia stopped nickel shipments last year in an effort to develop a full nickel supply chain within the country, starting from extraction and processing to the production of batteries. Tesla, for its part, appears to have expressed its intent to establish a presence in the country.

“I received their proposal yesterday morning… next week we will meet them (virtually) to get an official explanation,” Septian said, adding that the proposal goes beyond just Tesla acquiring nickel from Indonesia. “If they only want to buy raw materials, we are not interested,” the official noted, according to Reuters.

In his statement to the media, Septian stated that he could not provide details of Tesla’s proposal for now due to a nondisclosure agreement with the electric car maker. He did, however, mention that the focus of Indonesia and Tesla’s discussions so far has been on batteries and energy storage solutions. With this in mind, it appears that if Tesla will establish a Gigafactory in Indonesia, it would be focused on batteries and Tesla Energy products like the Powerwall and Megapack.

Back in November, Indonesian President Joko Widodo revealed that he is sending a high-level delegation to meet with the electric car maker’s top executives. The president mentioned that the trip would partly be aimed at promoting Indonesia’s “Omnibus” Job Creation Law, an initiative that harmonizes 79 existing laws. This significantly cuts red tape and allows companies like Tesla to establish a presence in the country without much difficulties.

Tesla submits proposal to Indonesia for battery and energy storage project: report

Reports have emerged that Tesla has submitted an investment proposal to Indonesia for a possible battery facility in the country. The update was shared in a statement to reporters on Friday by Septian Hario Seto, Indonesia’s deputy head for investment and mining coordination. Indonesia boasts...

www.google.com

Elon Musk comes from South Africa right ? So he may still have felt some emotional connection with Indonesia

That white South African (Dutch by blood) pronounce kantor similar with Minang ethnic say kantor

 

[Indos]

Indonesia to double development drilling in 2021 amid recovering crude prices ​

Norman Harsono

The Jakarta Post
PREMIUM
Jakarta / Tue, February 9, 2021 / 01:31 pm

The Indonesian government estimates that the national oil and gas industry will drill 616 new wells this year as global crude oil prices begin recovering. The target is the highest since 2014 and a 150 percent increase from last year’s drilling activities. Brent Crude, the global price benchmark, hit US$56 per barrel on Thursday, higher than the 2020 average price of $41.69 per barrel, according to the US Energy Information Administration.

The head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas), Dwi Soetjipto, said on Wednesday that the new development wells aimed to stall the declining output from existing oil and gas fields in the country. Development wells are drilled in areas with proven oil and gas reserves as opposed to exploration wells, which are drilled to find new reserves. The plan to drill new development wells is one of SKK Migas’ str...

Indonesia to double development drilling in 2021 amid recovering crude prices

Indonesia plans to drill new development and exploration wells this year to offset the decline rate of its mature oil and gas fields, taking advantage of recovering global crude prices.

www.thejakartapost.com

 

[Indos]

AlhamduliLLAH. Biggest national oil and gas company, PT Pertamina, is still able to get net profit of 1 billion USD in 2020 amid oil price plunge due to lower demand caused by global pandemic and stupid Saudi move. This is extraordinary achievement considering massive lost of BP and Exxon during 2020. Second biggest national oil and gas miner, PT Medco Energy, hasnt yet published its 2020 whole year financial performance.


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Pertamina Nets US$1bn Profit in 2020

Translator: TEMPO
Editor: Laila Afifa
5 February 2021 08:15 WIB

TEMPO.CO, Jakarta - State-owned energy company Pertamina booked US$1 billion net profit in 2020, the equivalent of Rp14 trillion. Pertamina's president director, Nicke Widyawati, said that profits were obtained from a number of initiatives that succeeded in restoring the company's performance.

Among those initiatives were increasing in upstream oil and gas and refinery productivity, as well as efficiency in all areas — including a 30-percent cut of operational expenditure and reprioritizing investment budget allocations.

Nicke said that throughout 2020 Pertamina came under pressure, facing three sentiments at once; low world oil prices, weak demand, and exchange rate depreciation.

But the company managed to reserve supply when energy prices were down by buying in large quantities and storing them in landed and floating storages. This strategy was quite successful and had a positive impact on Pertamina's financial performance.

"Pertamina managed to score profits and this was an extraordinary effort. So, the energy sector must make extraordinary efficiency to make adjustments," Nicke said on Thursday, February 4, 2021.

This year, the company is planning to hold IPOs for a number of subsidiaries to raise funds from the capital market. "In the third and fourth quarters we will have an IPO (initial public offering) for one of our business units," she said.

Pertamina Nets US$1bn Profit in 2020

State-owned energy company Pertamina booked US$1 billion net profit in 2020, the equivalent of Rp14 trillion.

en.tempo.co

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Meanwhile Exxon

Exxon Mobil lost $22 billion in 2020, its worst performance in four decades.

www.nytimes.com

.

Meanwhile BP

BP lost $5.7 billion in 2020, its first annual loss in 10 years, as oil and gas demand slumped during the pandemic

BP reported a profit of $115 million in the last quarter of 2020, falling short of analysts' estimates.

www.businessinsider.com

Meanwhile Shell

Shell reports $21.7bn loss in 2020, but plans dividend raise

The 2020 loss was driven by accounting charges taken earlier in the year, but even adjusted for these Shell reported a 71% decline in full-year earnings.

www.nsenergybusiness.com

Meanwhile Chevron

Chevron reported a full-year 2020 loss of $5.5 billion ($(2.96) per share - diluted), compared with earnings of $2.9 billion ($1.54 per share - diluted) in 2019. Included in 2020 were net charges for special items of $4.5 billion, compared to net charges of $8.7 billion for special items in 2019.Jan 29, 2021

Chevron Announces Fourth Quarter 2020 Results

Chevron Corporation (NYSE: CVX) today reported a loss of $665 million ($(0.33) per share - diluted) for fourth quarter 2020, compared with a loss of $6.6 billion ($(3.51) per share - diluted) in fourth quarter 2019.

www.chevron.com

.

 

[Indos]

Many misconception on Indonesia economy. Indonesia is not even top 20 oil producer anymore and since 2003 we have already become net oil importer. The reason we are still exporting crude oil is because our current oil refinery is still not yet able to absorb all crude oil we produce.