Indonesia Economy Forum

[Logam42]

No one has been talking about this so I guess I'll share a bit on the Indonesia-Africa Infrastructure dialogue that happened a few weeks ago:

Dialogue: Indonesia’s increasing presence in Africa

Brand new: State-owned construction company PT Wijaya Karya (WIKA) has built 1,000 apartments with all amenities in Ain Defla, Algeria.(Courtetsy of PT Wijaya Karya (WIKA))

Indonesia is ubiquitous in Africa. Many Africans love Indonesian batik shirts, instant noodles and quality paper. Hundreds of African students study in Indonesia with scholarships from the Indonesian government.

Indonesia has had close relations with almost all African countries for several decades. Politically, both Indonesia and Africa are very close, and there are no major differences between them on many international issues.

Indonesia is well-known all over Africa because of strong support and solidarity with African people during the struggle for freedom from colonial rule in the 1950s. Indonesia and its beautiful city Bandung became very popular because of the historic Bandung Conference popularly known as the Asia-Africa Conference in 1955. This conference gave birth to the Non-Aligned Movement.

With its 265 million population and enormous natural resources, Indonesia — a member of the Group of 20 — offers huge potential for African countries. Likewise with its 1.32 billion population of mostly young people, Africa also provides many opportunities for Indonesia.

Economic relations have been growing at a faster pace in recent years, especially under President Joko “Jokowi” Widodo, who wants to engage Africa economically and enhance cooperation in all sectors.

For example, bilateral trade between Indonesia and African countries reached US$11.25 billion in 2018, a 236 percent increase from $4.77 billion in 2009. Now Indonesia is planning to enhance its investments and cooperation in the development of infrastructure in Africa through the first-ever Indonesia-Africa Infrastructure Dialogue (IAID) in Bali, to be held from Aug. 20 to 21.

During the two-day dialogue, to be attended by 700 delegates from Indonesia and Africa, Indonesia will launch new initiatives for Preferential Trade Agreements (PTAs) with key African countries. These will certainly boost trade in the coming years.

Indonesia mainly exports palm oil, rubber, paper, garments and food and beverages to Africa, while African countries export mainly crude oil, cocoa beans, cotton, tobacco, chemicals and fertilizer.

Several Indonesian companies are already present in Africa, and many more are expected to follow after the IAID meeting.

For example, state-owned construction company PT Wijaya Karya, which has projects in Algeria and Niger, is planning to sign Rp 2 trillion worth of infrastructure and construction projects soon in Zanzibar, Senegal and Ivory Coast.

Privately owned Indofood, Indorama, Wings Group and Sinar Antjol have plants in African countries. There is a huge potential out there.

State-owned companies like Dirgantara Indonesia regularly sell top products to African countries, backed by Indonesia Eximbank financing scheme.

Indonesia is dependent on Africa for its energy needs. It regularly imports oil from countries like Nigeria, Angola, Algeria and Equatorial Guinea.

These collaborations reflect an equal and mutually beneficial relationship between Indonesia and Africa. They are also a token of Indonesia’s commitment to move together with Africa toward a prosperous future.

In an effort to focus more on Africa, Indonesia has 16 embassies, a consulate general in Cape Town in South Africa and a number of honorary consuls. With the increasing interaction and more economic engagement, Indonesia may open more diplomatic missions in the future.

Africa is indeed an important continent politically as it has 54 countries. That means 54 votes at the United Nations. It is also a major destination for Indonesia’s trade and investment. Africa is proven to be a vital hub for geostrategic interests of Indonesia.
____________________
Poster's Note: Indonesia is investing quite a lot in its diplomatic network in Africa. Good thing too since its basically paying catchup after the trade war heated up. A lot of good will come from this as Indonesia has a good reputation in Africa since we don't engage in neither western style "AID" or Chinese type "debt trap".

Furthermore, rumor has it the foreign ministry will have its portfolio boosted so that it can have more authority in supporting international trade. Long time coming really the foreign ministry is already doing wonders despite their tiny budget and limited authority as is.

Interested if Retno will remain FM in next cabinet or if someone else will fill the job. So far, I'd consider her tenure as "competent, if uninspiring". Although she hasn't made groundbreaking successes, simply the lack of screw ups points to a very competent minister. Sometimes though, I hope we have a more ambitious one since Jokowi's interests in Foreign Affairs is quite narrow and delegates a lot of the diplomacy to JK, LBH, and Retno.
____________________
Indonesia lures nontraditional African markets

Vice President Jusuf Kalla (center), accompanied by Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan (right), speaks to participants of the Indonesian-African Forum (IAF) in Nusa Dua, Bali on the sidelines of the opening ceremony of the event on April 10, 2018.(JP/ Nyoman Budhiana)

President Joko “Jokowi” Widodo has said Indonesia is ready to cooperate with countries in Africa in the face of the global trade war, as Indonesia seeks new opportunities to expand its trade and investment portfolio in nontraditional markets.

Jokowi officially opened the 2019 Indonesia-Africa Infrastructure Dialogue (IAID) in Nusa Dua, Bali on Tuesday.

"The heated trade war and global economic crisis, conflicts between countries, [and] development gaps have caused uncertainty. Indonesia and Africa must agree to strengthen solidarity to improve the region and the world. We have to work hard to turn uncertainty into certainty,” he said in his opening speech, as quoted from a press statement.

Having started early last year, the ongoing trade war has seen China and the United States impose sanctions and tariffs on each other. It has caused a slump in Southeast Asian exports, economists have said. Bloomberg reported that the region’s economy was seen weakening to 4.8 percent this year and 4.7 percent in 2020 from 5.3 percent last year, according to Oxford’s lead Asia economist Sian Fenner. Africa, meanwhile, has been largely ignored in the US-China trade war.

Indonesia, Jokowi said, is a true friend of African countries and stands ready to become partners to improve the welfare of African people by building infrastructure and boosting trade on the continent.

"Indonesia is ready to share experiences and help to build infrastructure. Indonesian [state-owned companies] and private companies have sufficient strength and experience,” he said.

The two-day 2019 IAID was attended by around 700 business leaders, policymakers, senior government officials and ministers, as well as other stakeholders from Indonesia and Africa. The participants discussed concrete efforts that could be made to improve economic diplomacy, connectivity, social infrastructure and tourism, energy and mining, financing schemes, as well as trade and development cooperation.

Coordinating Maritime Affairs Minister Luhut Pandjaitan, who is also the chair of the Indonesia-Africa infrastructure development task force, held a series of bilateral meetings with several African countries, including Equatorial Guinea and Madagascar, as well as with a representative from the African Union on Tuesday.

This year, Indonesia and African countries recorded dozens of business deals valued at US$822 million on infrastructure, textiles, pharmaceuticals, manufacturing, financing, mining, transportation and commodity trading, a significant increase from last year’s deals worth $586 million, according to Luhut's office.

Indonesia has also launched negotiations for preferential trade agreements with Mauritius and Djibouti.

Indonesia's economic ties with African nations continues to see significant progress. Trade value between Indonesia and Africa reached more than Rp 156 trillion (US$11.06 billion) last year, a 25 percent increase from the previous year. More Indonesian companies have now entered Africa, with around 30 Indonesian companies investing in Africa, including 16 in Nigeria and five in Ethiopia.

According to the Foreign Ministry, the two-day IAID is a follow up to the Indonesia-Africa Forum (IAF) in 2018 -- both events provide strategic platforms for better cooperation between Indonesia and Africa, especially on infrastructure.

"Different from the past, the Foreign Affairs Ministry is now handling not only foreign policy, but also economic diplomacy. And in carrying out economic diplomacy, we involve technical ministries and even state-owned enterprises in a comprehensive mission," Foreign Minister Retno Marsudi said.

The event was concluded on Wednesday with Indonesia reiterating its commitment to initiating dialogues with Africa.
____________________________

... Indonesian trade in 2017 was more than 300 Billion USD. That means the entire continent is less then 5% of our trade value. Hopefully it'll accelerate even further after the diplomatic network expansion and after the Africans realise Indonesian companies are reliable, affordable, and ready to negotiate. As it stands I daresay many african nations are better clients compared to some of our traditional markets in southeast asia

 

[Nike]

No one has been talking about this so I guess I'll share a bit on the Indonesia-Africa Infrastructure dialogue that happened a few weeks ago:

Dialogue: Indonesia’s increasing presence in Africa

Brand new: State-owned construction company PT Wijaya Karya (WIKA) has built 1,000 apartments with all amenities in Ain Defla, Algeria.(Courtetsy of PT Wijaya Karya (WIKA))

Indonesia is ubiquitous in Africa. Many Africans love Indonesian batik shirts, instant noodles and quality paper. Hundreds of African students study in Indonesia with scholarships from the Indonesian government.

Indonesia has had close relations with almost all African countries for several decades. Politically, both Indonesia and Africa are very close, and there are no major differences between them on many international issues.

Indonesia is well-known all over Africa because of strong support and solidarity with African people during the struggle for freedom from colonial rule in the 1950s. Indonesia and its beautiful city Bandung became very popular because of the historic Bandung Conference popularly known as the Asia-Africa Conference in 1955. This conference gave birth to the Non-Aligned Movement.

With its 265 million population and enormous natural resources, Indonesia — a member of the Group of 20 — offers huge potential for African countries. Likewise with its 1.32 billion population of mostly young people, Africa also provides many opportunities for Indonesia.

Economic relations have been growing at a faster pace in recent years, especially under President Joko “Jokowi” Widodo, who wants to engage Africa economically and enhance cooperation in all sectors.

For example, bilateral trade between Indonesia and African countries reached US$11.25 billion in 2018, a 236 percent increase from $4.77 billion in 2009. Now Indonesia is planning to enhance its investments and cooperation in the development of infrastructure in Africa through the first-ever Indonesia-Africa Infrastructure Dialogue (IAID) in Bali, to be held from Aug. 20 to 21.

During the two-day dialogue, to be attended by 700 delegates from Indonesia and Africa, Indonesia will launch new initiatives for Preferential Trade Agreements (PTAs) with key African countries. These will certainly boost trade in the coming years.

Indonesia mainly exports palm oil, rubber, paper, garments and food and beverages to Africa, while African countries export mainly crude oil, cocoa beans, cotton, tobacco, chemicals and fertilizer.

Several Indonesian companies are already present in Africa, and many more are expected to follow after the IAID meeting.

For example, state-owned construction company PT Wijaya Karya, which has projects in Algeria and Niger, is planning to sign Rp 2 trillion worth of infrastructure and construction projects soon in Zanzibar, Senegal and Ivory Coast.

Privately owned Indofood, Indorama, Wings Group and Sinar Antjol have plants in African countries. There is a huge potential out there.

State-owned companies like Dirgantara Indonesia regularly sell top products to African countries, backed by Indonesia Eximbank financing scheme.

Indonesia is dependent on Africa for its energy needs. It regularly imports oil from countries like Nigeria, Angola, Algeria and Equatorial Guinea.

These collaborations reflect an equal and mutually beneficial relationship between Indonesia and Africa. They are also a token of Indonesia’s commitment to move together with Africa toward a prosperous future.

In an effort to focus more on Africa, Indonesia has 16 embassies, a consulate general in Cape Town in South Africa and a number of honorary consuls. With the increasing interaction and more economic engagement, Indonesia may open more diplomatic missions in the future.

Africa is indeed an important continent politically as it has 54 countries. That means 54 votes at the United Nations. It is also a major destination for Indonesia’s trade and investment. Africa is proven to be a vital hub for geostrategic interests of Indonesia.
____________________
Poster's Note: Indonesia is investing quite a lot in its diplomatic network in Africa. Good thing too since its basically paying catchup after the trade war heated up. A lot of good will come from this as Indonesia has a good reputation in Africa since we don't engage in neither western style "AID" or Chinese type "debt trap".

Furthermore, rumor has it the foreign ministry will have its portfolio boosted so that it can have more authority in supporting international trade. Long time coming really the foreign ministry is already doing wonders despite their tiny budget and limited authority as is.

Interested if Retno will remain FM in next cabinet or if someone else will fill the job. So far, I'd consider her tenure as "competent, if uninspiring". Although she hasn't made groundbreaking successes, simply the lack of screw ups points to a very competent minister. Sometimes though, I hope we have a more ambitious one since Jokowi's interests in Foreign Affairs is quite narrow and delegates a lot of the diplomacy to JK, LBH, and Retno.
____________________
Indonesia lures nontraditional African markets

Vice President Jusuf Kalla (center), accompanied by Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan (right), speaks to participants of the Indonesian-African Forum (IAF) in Nusa Dua, Bali on the sidelines of the opening ceremony of the event on April 10, 2018.(JP/ Nyoman Budhiana)

President Joko “Jokowi” Widodo has said Indonesia is ready to cooperate with countries in Africa in the face of the global trade war, as Indonesia seeks new opportunities to expand its trade and investment portfolio in nontraditional markets.

Jokowi officially opened the 2019 Indonesia-Africa Infrastructure Dialogue (IAID) in Nusa Dua, Bali on Tuesday.

"The heated trade war and global economic crisis, conflicts between countries, [and] development gaps have caused uncertainty. Indonesia and Africa must agree to strengthen solidarity to improve the region and the world. We have to work hard to turn uncertainty into certainty,” he said in his opening speech, as quoted from a press statement.

Having started early last year, the ongoing trade war has seen China and the United States impose sanctions and tariffs on each other. It has caused a slump in Southeast Asian exports, economists have said. Bloomberg reported that the region’s economy was seen weakening to 4.8 percent this year and 4.7 percent in 2020 from 5.3 percent last year, according to Oxford’s lead Asia economist Sian Fenner. Africa, meanwhile, has been largely ignored in the US-China trade war.

Indonesia, Jokowi said, is a true friend of African countries and stands ready to become partners to improve the welfare of African people by building infrastructure and boosting trade on the continent.

"Indonesia is ready to share experiences and help to build infrastructure. Indonesian [state-owned companies] and private companies have sufficient strength and experience,” he said.

The two-day 2019 IAID was attended by around 700 business leaders, policymakers, senior government officials and ministers, as well as other stakeholders from Indonesia and Africa. The participants discussed concrete efforts that could be made to improve economic diplomacy, connectivity, social infrastructure and tourism, energy and mining, financing schemes, as well as trade and development cooperation.

Coordinating Maritime Affairs Minister Luhut Pandjaitan, who is also the chair of the Indonesia-Africa infrastructure development task force, held a series of bilateral meetings with several African countries, including Equatorial Guinea and Madagascar, as well as with a representative from the African Union on Tuesday.

This year, Indonesia and African countries recorded dozens of business deals valued at US$822 million on infrastructure, textiles, pharmaceuticals, manufacturing, financing, mining, transportation and commodity trading, a significant increase from last year’s deals worth $586 million, according to Luhut's office.

Indonesia has also launched negotiations for preferential trade agreements with Mauritius and Djibouti.

Indonesia's economic ties with African nations continues to see significant progress. Trade value between Indonesia and Africa reached more than Rp 156 trillion (US$11.06 billion) last year, a 25 percent increase from the previous year. More Indonesian companies have now entered Africa, with around 30 Indonesian companies investing in Africa, including 16 in Nigeria and five in Ethiopia.

According to the Foreign Ministry, the two-day IAID is a follow up to the Indonesia-Africa Forum (IAF) in 2018 -- both events provide strategic platforms for better cooperation between Indonesia and Africa, especially on infrastructure.

"Different from the past, the Foreign Affairs Ministry is now handling not only foreign policy, but also economic diplomacy. And in carrying out economic diplomacy, we involve technical ministries and even state-owned enterprises in a comprehensive mission," Foreign Minister Retno Marsudi said.

The event was concluded on Wednesday with Indonesia reiterating its commitment to initiating dialogues with Africa.
____________________________

... Indonesian trade in 2017 was more than 300 Billion USD. That means the entire continent is less then 5% of our trade value. Hopefully it'll accelerate even further after the diplomatic network expansion and after the Africans realise Indonesian companies are reliable, affordable, and ready to negotiate. As it stands I daresay many african nations are better clients compared to some of our traditional markets in southeast asia

Africa is indeed an untapped potential market for Indonesia, but as a whole we need to focused on which countries should be the doors of our products and diplomacy stronghold to further our forray into Africa continent. For eastern MENA region we should focusing our effort on Egypt, they are large market and got already sufficient infrastructure to welcome our products. Diplomatically, Indonesian Egypt had strong relationship. For Western African region, we should focused on Nigeria, the sleeping giant of Africa. They had larger population than the rest, and abundant Natural resources to trade with our products, they lack of infrastructure can be potential market for our SOE Infra to open the doors, not to mention we had advantage over them in heavy industry products. For Eastern region, we should open the Ethiopia doors, they had the most potential there among countries like Kenya, Tanzania, Sudan and other. Ethiopia lacks of ports should be concern but they had excellent air transportation infrastructure to compensate, we can invest more in infrastructure, land based heavy industry and farm and agriculture. For the southern region, none other country can replaced South Africa they had potential but lack of security nowadays should be a concern, Angola can be alternative as they are more stable and had better security issue.

 

[Nike]

Toyota Indonesia to Start EV-Hybrid Production in 2022
Translator:
Ricky Mohammad Nugraha
Editor:
Laila Afifa
4 September 2019 22:01 WIB

TEMPO.CO, Jakarta - Toyota Motor Manufacturing Indonesia (TMMIN) announced its production readiness for electric vehicles (EV) hybrids starting in 2022 with sport utility vehicles (SUV) and multipurpose vehicles (MPV) as a start.

TMMIN President Director Warih Andang Tjahjono said that the company will utilize existing production lines that will be modified to accommodate production of the future vehicles.

“The first production will be in 2022 that will prioritize SUVs and MPVs,” says Warih Andang Tjahjono at the Indonesia Electric Motor Show (IEMS) 2019 on Wednesday, September 4, 2019.

Ads by Kiosked

Toyota has further stamped its commitment by investing Rp28 trillion throughout 2019-2023 which also includes developing electric vehicles for the Indonesian market. It coincides with the company’s commitment to educating domestic consumers regarding the technology while also taking into account export markets country’s such as Australia and South America.

BISNIS

https://en.tempo.co/read/1243913/toyota-indonesia-to-start-ev-hybrid-production-in-2022

 

[Nike]

Indonesian franchise business to grow 5 percent in 2019
5th Sep 2019 22:28

Chairperson of the Association of Indonesian Franchise and License (Wali), Levita Ginting Supit. (ANTARA/Ade Irma Junida/sh)

Jakarta (ANTARA) - Indonesia's franchise business is expected to recover and grow by five percent in 2019 after the country completes its presidential election process, the Association of Indonesian Franchise and License (Wali) said.

Wali's Chairperson, Levita Ginting Supit, admitted that the political situation during the 2019 elections brought about significant impact to the business sector, as entrepreneurs have adopted a wait-and-see stance before they expand.

"We admit that due to the political year, all businesses have experienced a downturn. Those who have planned an expansion have to delay it until a new government is elected. Hopefully, this year, (the growth) can reach five percent," she elaborated.

Related news: Kadin encourages local entrepreneurs to export franchise business

Supit said the franchise business has seen a three percent growth in 2018, and despite the uncertainty in the early period of 2019, the sector is expected to experience better growth.

"When we are done with politics, the business will grow. Foreign businesses will also enter the country," she continued.

Another factor that boosts the growth of franchise businesses is the development of basic infrastructure in some regions in Indonesia.

The lack of infrastructure has made businessmen reluctant to expand the franchise business in some regions, due to concerns with regard to long delivery and minimum security.

"Now, as the development of infrastructure has reached remote areas, businessmen are eager to open franchises in regions," she remarked.

The number of franchise businesses in Indonesia is predicted to reach 2 thousands, of which 60 percent are local franchises. Some 40 percent of the franchise business in Indonesia is in the food and beverage sector.

In 2018, the franchise business recorded a total turnover of Rp150 trillion (US$10.4 billion). Related news: Indonesia appointed honorary guest of World Franchise Expo



Editor: Rahmad Nasution

COPYRIGHT © ANTARA 2019

 

[Nike]

LRT progress

 

[Nike]

Indonesia eyes October to conclude CEPA negotiations with South Korea
9th Sep 2019 14:51

Indonesian Trade Minister Enggartiasto Lukita attended the 51st ASEAN Economic Ministers' Meeting (AEM) in Bangkok, Thailand, on Sunday (Sept 8, 2019). ANTARA/Indra Arief Pribadi/Su

Bangkok, Thailand (ANTARA) - Indonesia is targeting substantial conclusion to negotiations on the draft of the Comprehensive Economic Partnership Agreement (CEPA) with South Korea in October 2019, Trade Minister Enggartiasto Lukita stated.

"When it comes to CEPA negotiations, we have agreed to conclude the negotiations in 2019. We will also strive to substantially conclude the negotiations in October 2019," he remarked following a bilateral meeting with South Korean Trade Minister Yoo Myung-Hee on the sidelines of the 51st ASEAN Economic Ministers' Meeting (AEM) held in Bangkok, Thailand, on Monday.

Lukita expressed the belief that South Korea remained strongly committed to concluding the CEPA negotiations soon. Moreover, South Korea needs trade agreements with partner nations to boost exports and investment in the midst of the escalating bilateral trade dispute with Japan.

Related news: Government eyes completion of RCEP, IK-CEPA, IT-ECA by 2019: minister

It is expected that the CEPA would serve as an umbrella of agreements to facilitate the planned investment expansion by South Korean chemistry company Lotte Group and automotive company Hyundai, he stated.

"We know South Korea has two large industries, specifically Lotte Group operating in the chemical industry and Hyundai engaged in the automotive industry," he stated.

Minister of the South Korean Embassy in Jakarta Jeon Joyoung expressed his belief that the CEPA would be able to boost trade between both nations to nearly US$30 billion in 2022.

Related news: IK-CEPA can raise Indonesia-S Korea trade to US$30 billion in 2022

"During (the South Korean) president's visit to Indonesia in 2017, the two leaders agreed to develop trade volume to over US$30 billion in 2022, and expectations ride high on CEPA making it easy to achieve," Joyoung remarked during an exclusive interview with Antara at the Wisma Antara building in Jakarta recently.

Since February 2019, the governments of both nations have held intensive discussions on the CEPA to optimally benefit both sides, he stated.

Both nations are expected to ink the IK-CEPA during the 30th ASEAN-Korea Commemorative Summit to be organized in South Korea in November 2019, he stated.

Related news: VP targets free trade talks to conclude by 2019-end

Data from the Central Statistics Agency (BPS) showed that total trade between both nations had reached US$18.6 billion in 2018, with Indonesia enjoying a surplus of $443.6 million.

South Korea is the seventh-largest destination for Indonesia's exports and the sixth-biggest source of Indonesia's imports.

Indonesia clocked exports worth $9.53 billion to South Korea in 2018, rising 14 percent, from $8.20 billion a year earlier. On the other hand, Indonesia's imports from South Korea had reached $9.1 billion, a nine percent rise, from $8.12 billion the year before.

Indonesia's exports to South Korea chiefly constitute coal, copper ore, natural rubber, plywood, and unforged tin, while its imports from South Korea comprise synthetic rubber, steel, and integrated electronic circuit. Related news: Indonesia, South Korea ink agreement to build three more submarines



By Indra Arief Pribadi, Suharto

Editor: Azizah Fitriyanti

COPYRIGHT © ANTARA 2019

 

[UMNOPutra]

Woow .. Tahniah to your new National Car --ESEMKA ..

 

[barjo]

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More train export coming on

 

[Logam42]

Economic diplomacy:
Indonesian trade, ADB v
BRI and Chinese money
GREG EARL
Indonesia’s economic growth might not be spectacular,
but it is the world’s most stable – and that helps Australia.​

Muara Baru fish market in Jakarta ​

Slow but steady
It has often been said that despite periodic diplomatic upheavals, Australia has been fortunate to have a sprawling multi-ethnic Asian neighbour to its north that has managed to remain largely unified.

But here’s a fresh take on Indonesian stability that puts the recently agreed bilateral trade agreement into an interesting new context: Indonesia now has the world’s most stable economic growth rate.

Its annual economic output growth around 5% has not been generating much excitement in recent years in a region where countries from India to the Philippines have been recording up to 7% and overtaking China.

But this research by the Australian National University’s Paul Burke and Padjadjaran University’s Martin Siyaranamual shows that same lacklustre 5% annual expansion also underpins the world’s most stable growth rate since the beginning of the century. Australia comes second, which means the new trade agreement will be between the world’s two most steadily growing economies.

[https://www.lowyinstitute.org/the-i...-indonesian-trade-adb-v-bri-and-chinese-money] - Interactive graph here

The research was prepared for ANU’s annual Indonesia Update conference last week and also presented this week at the Lowy Institute. Vietnam, one of Australia’s newer fast-growing trading partners, comes third. India and China, which are ranked 26 and 69, are included in the chart to provide some context.

Burke made the powerful point that predictable, if unspectacular, growth has “helped Indonesia consolidate democracy”.​

While Indonesia is sometimes regarded as a one-dimensional commodity-exporting economy (and in that a sense a competitor with Australia), Burke argues that the steady growth reflects a more complex situation. It is less trade-exposed than many peers, actually has a diverse economic base with manufacturing and services as well as commodities, has benefitted from political stability, and has an established record of macroeconomic crisis management and risk mitigation.

It is a moot point whether a bit more volatility (and hopefully higher growth) might be worth it when Indonesia is widely estimated to need annual economic growth above 5% to keep generating sufficient new jobs for its youthful population.

But at a conference which was this year principally focused on the quality of Indonesia’s democracy over the past two decades rather than its economic performance, Burke made the powerful point that predictable, if unspectacular, growth has “helped Indonesia consolidate democracy”.

The Indonesia-Australia Closer Economic Partnership Agreement – still waiting for ratification in both nation’s legislatures – is intended more to increase the current relatively low trade intensity between two close neighbours rather than change the pace of economic growth. But reinforcing Indonesia’s relatively steady economic trajectory (and indeed Australia’s own stability) can only be a positive for the eventual use of the agreement.

____________________________
Poster's Note: Standard Deviation is a mathematical concept that outlines the standard amount of difference any value within a series to the series average. So if an average is an anchor, a mid-value, the Standard of deviation calculates the spread around the average.

Not fully sold on the argument, but it does show that Indonesian obsession with financial stability and macroeconomic policy orthodoxy since 98' has shown results.

 

[barjo]

Foreign Direct Investment Realization Based on Sector January - March 2019

FDI Realization Based on Sector
January - March 2019
Electricity, Gas and Water 236 1.526.373,2
Transportation, Storage and Telecommunication 242 1.020.359,0
Housing, Industrial Estate and Office 410 948.156,0
Industries of Basic Metal, Metal Products, excluding Machines and Equipment 325 461.610,2
Food Industries 828 375.478,3
Chemical and Pharmaceutical Industries 504 312.735,4
Mining 242 304.082,1
Food Crops, Plantation and Livestock 338 206.546,0
Hotel and Restaurant 837 155.600,2
Non Metallic Mineral Industries 119 126.251,5
Rubber and Plastic Industries 285 106.436,1
Trade and Reparation 2.066 98.704,6
Leather Goods and Footwear Industries 122 91.046,0
Other Services 1.464 89.655,2
Motorized Vehicle Industries and Other Transportation Equipment 384 78.716,5
Industries of Machinery, Electronics, Medical Equipments, Electrical Tools, Precision, Optical, and Time Piece 409 55.153,9
Other Industries 216 51.302,7
Textile Industries 305 30.902,5
Construction 133 18.941,7
Paper and Printing Industries 158 14.657,9
Fishery 51 3.886,1
Wood Industries 117 3.709,6
Forestry 24 417,9
Total 9.815 6.080.722,6

 

[Nike]

• NEWS
• BUSINESS

Jokowi urges young entrepreneurs to look beyond consumption and toward production

• 
  
  Riza Roidila Mufti
  The Jakarta Post
  

Jakarta / Mon, September 16, 2019 / 07:02 pm

The Boston Consulting Group (BCG) estimates that the number of middle class and affluent consumers in Indonesia will double from around 74 million in 2013 to roughly 141 million in 2020, indicating a significant growth in the number of wealthy Indonesians. (Shutterstock/File)
With more and more Indonesians entering the middle class and affluent consumer (MAC) demographic, President Joko "Jokowi" Widodo is urging young entrepreneurs to drive the efforts to turn Indonesia into a global production hub, instead of stopping at mere consumption.

Speaking at the National Meeting of the Association of Young Indonesian Businesspeople (Hipmi), the President spoke on the “consumer revolution” to come in 2020 as the MAC population grew in Indonesia.

The Boston Consulting Group (BCG) estimates that the number of MACs in Indonesia will double from around 74 million in 2013 to roughly 141 million in 2020, indicating a significant growth in the number of wealthy Indonesians. The demographic distribution of MACs would also spread from 25 cities in 2013 and regencies currently to around 54 cities and regencies next year.

Jokowi said the demographic projection also called for caution so that Indonesia would not become trapped in the role of a mere global consumer, and called for the country’s young entrepreneurs to avoid missing out to foreign players on the opportunities presented by the blossoming middle class.

The growing MAC population would make Indonesia more attractive to global businesses, said Jokowi, who ran a furniture busines in Surakarta before entering politics.

"Do not let the consumer revolution only turn us into global consumers and a nation of consumers who only enjoys [buying] products. The consumer revolution must drive us to become a global producer, [to become] more productive, so we can triumph in the global market," the President told an audience comprising more than 100 businesspeople and entrepreneurs.

To prepare Indonesia in developing as a global consumer as well as a global producer, Jokowi said the government was working on slashing regulations that hampered investment and abolishing regulations that would turn Indonesia into a country of consumers. He added that 74 regulations were under review.

"How do we make sure that the global investors who enter Indonesia are not just coming [to set up] factories and [import foreign] workers? We have to make sure that investment also develops skills and transfers knowledge. Skills and knowledge transfer is key. Investments should [lead to the creation of] more young businesspeople and should help our young businesspeople establish more businesses," he said.

The BCG said that companies would need to double their presence in the country to reach the same proportion of middle-class consumers in a larger and broader MAC market.

“Indonesian consumers are extremely family-oriented, and as they move from the lower aspirant classes into the middle class, they will initially focus their spending on improving their family’s living conditions rather than splurging on themselves," BCG said in its 2013 report.

The BCG report also noted that MACs tended to try new products, as they trusted marketing messages and advertisements that were published in conventional media outlets.

https://www.thejakartapost.com/news...beyond-consumption-and-toward-production.html

 

[barjo]

Human capital’ keyword for 2020 state budget

• Rachmadea Aisyah
  The Jakarta Post
  

Jakarta / Fri, August 16, 2019 / 07:59 pm

President Joko “Jokowi” Widodo, dressed in golden attire with a black and gold sarong and traditional headband from West Nusa Tenggara, delivers his State of the Nation address at the House of Representatives complex in Jakarta. (JP/Dhoni Setiawan)

President Joko “Jokowi” Widodo will continue with his human capital development focus in the first year of his second term as his administration has designed the proposed 2020 state budget to support this agenda.

In his annual state address and financial note speech at the House of Representatives on Friday, Jokowi said the government had laid out five areas of focus that could propel Indonesia’s economy against the backdrop of sluggish global economic growth and unfavorable external factors.

The five main aspects are human resources development, infrastructure acceleration, reinforcement of social protection programs, regional autonomy and anticipation of global uncertainties, the President said.

“With a focus on those five aspects, and keeping in mind expansive yet directed and measured fiscal policies, [the state revenue target] has thus been set at Rp 2.22 quadrillion [US$156 billion],” Jokowi said, adding that strengthening innovation and improving Indonesia’s human capital would be crucial to supporting domestic growth.

The figure is an increase of 2.6 percent from this year’s target of Rp 2.17 quadrillion. This year, the Finance Ministry said it had collected Rp 603.34 trillion in taxes in the first half, or 38.25 percent of the state budget target and a year-on-year(yoy) increase of 3.37 percent in tax revenue.

Added with non-tax revenues, the state revenue reached Rp 898.8 trillion, 41.5 percent of the state budget target.

Meanwhile, state expenditure forecast for 2020 has been set at Rp 2.53 quadrillion, approximately 14.5 percent of GDP, up only 1.5 percent from Rp 2.46 quadrillion in the 2019 state budget.

As of the first half of 2019, state expenditure realization was recorded at Rp 1.03 quadrillion, 42 percent of the total allocation.

 

[Bungaterakhir]

2000 ELECTRIC BUSES TO OPERATE IN JAKARTA BY 2020
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Head of the Greater Jakarta Transportation Agency (BPTJ) Bambang Prihartono is eyeing to operate 2,000 electric buses in Jakarta next year to effectively replace the entire fleet of buses that still depend on fossil fuel and help maintain the city’s air quality.
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“My main goal is to see a minimum of 2,000 electric buses in the year 2020. We must be optimistic in achieving this goal, there will no longer be delays, the pollution is already happening now,” said Bambang at the Hotel Pullman in Central Jakarta on Thursday, September 12.
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As an initial step, Jakarta Passenger Transportation (PPD) has established a partnership with PT Mobil Anak Bangsa (MAB) to procure 500 electric buses next year. The PPD is currently testing the buses.
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Meanwhile, PT Transjakarta is currently operating three electric buses that underwent six-month road-worthy testing in tourist destinations. This fleet will be operated commercially in 2020 after it undergoes another testing period for six months.

 

[barjo]

• 
  

Indonesia Railway Conference 2020
Now in its 4th annual edition, Railwaytech Indonesia 2020 organised by GEM Indonesia and hosted by MASKA (Indonesia Railway Society) has established itself as the premier event for the Railway sector in Indonesia & ASEAN. It provide an excellence track and opportunity to feature your rail innovations, technology and solutions to ASEAN’s railway buyers, operators, contractors, government as well as to network with the leading industry professionals from relevant railway industry.

In parallel, government official, professionals and experts discuss at the Indonesia Railway Conference on March 18 and 19, 2020. The conference shall feature technical sessions, presentations and panel discussion. The conference will discuss the major challenges facing the railway sector/modes (MRT, Airport Railway Station, High Speed, Medium Speed, LRT, Commuter, Urban and Intercity) and will open up new avenues for learning about the modern technologies, prospects and growth opportunities that lie ahead of the Indonesian Railway sector.

The colocation of the conference and the exhibition in one venue provides an ideal opportunity for scientists, innovators, investors, policymakers to meet and network with industry colleagues & potential business partner.

OBJECTIVE

– Gain opportunity to involve in Indonesia Railway Projects.

– Meeting with substantial person in Indonesia Railway Industry.
Here are list of VIP Guest:

• Local and Regional Government
• Indonesia’s Rail Contractor
• Indonesia’s Rail Manufacturers
• EPC Contractor and Sub-Contractor
• ASEAN Transportation Operators (Rail, Bus, Truck, LRT, MRT)
• Transport Professionals
• Logistics, Port, Storage System, Warehousing, Cargo and Freight Forwarder
• Investors, Financial and Banking
• Other key transportation suppliers to source their need and discuss the business for rail project.

– Knowledge exchange with other Railway Industry Companies.
– Providing excellent opportunity for experts. Scientists and leading companies to showcase and share the latest developments in railway innovation and technologies.
– Gaining new customer and agent.

Sub Topics of Indonesia Railway Conference 2020:

• Government Regulations
• Metro Rail Project & Planning
• Asset Management & Digital Operation
• Signalling & Communication
• Operation & Maintenance
• Rail Security & Safety
• Station Innovation
• Railway Technology & Innovation

 

[Nike]

National textile industry turns to locally sourced rayon

• Inforial
  The Jakarta Post
  

Jakarta, Indonesia / Thu, September 19, 2019 / 12:20 am

United commitment: Industry Ministry director general of chemical, textile and miscellaneous industries Achmad Sigit Dwiwahjono (center) and Asia Pacific Rayon director Basrie Kamba (second right) pose with stakeholders from the textile and fashion industries on Sept. 6, 2019 during a signing ceremony at the Unigraha Hotel in Pangkalan Kerinci, Riau. Government and industry representatives signed a memorandum of understanding (MoU) on the use of local, sustainably produced rayon in a bid to revitalize the Indonesian textile industry toward global competition. (Courtesy of RAPP/.)

Key players in the Indonesian textile sector have formally agreed to optimize locally sourced, sustainably produced rayon to drive the growth of the national textile industry, which is a core pillar of the country’s economy.

Representatives from the government, the textile and fashion sectors and industry associations signed a memorandum of understanding (MoU) on domestically produced rayon at a multi-stakeholders meeting in Pangkalan Kerinci, Riau, recently.

Also at the signing ceremony were Indonesian Textile Association (API) chairman Ade Sudrajat, Indonesian Association of Synthetic Fiber Producers (APSyFI) secretary-general Redma Gita, Indonesia Fashion Chamber members Yufie Kartaatmaja and Ichwan Thoha, and Oline Workrobe owner Caroline Siahaan.

Achmad Sigit Dwiwahjono, the Industry Ministry’s director general of chemical, textile and miscellaneous industries, said the government was committed to developing the textile industry by promoting local products and attracting investors.

The optimization of the use of Indonesia-made rayon can play a significant role in boosting textile exports and reducing high dependency on imports to allow the country to catch up as part of the fourth industrial revolution.

“We want to promote the use of locally sourced textiles, such as rayon and polyester fibers, to lessen our dependence on imported products,” said Sigit, who was accompanied by the Ministry’s Textile Director Muchdori.

In the past three years, Indonesia has seen increased exports of local textiles and textile products, with the export value increasing from US$11.87 billion in 2016 to $12.59 billion in 2017, and to $13.27 billion in 2018.

"The majority of export products are clothing, which comprise 63.1 percent,” Sigit said. “This year’s export value is projected to reach $15 billion. The target will be difficult to achieve if we don’t increase national production.”

The increased use of viscose rayon, or rayon, in manufacturing is expected to increase the production output of the textile industry, especially as the textile can act as a substitute for polyester and cotton. Local production of polyester and cotton still does not meet the demands of the national textile and garment industry.

“Polyester production is not well developed enough, while cotton fabrics are still nearly 100 percent imported,” said Muchdori. “As all stakeholders have gathered together in one forum, we [now] know all the latest developments and we have all agreed to use local products.”

Alternative Material

The Industry Ministry has partnered with Bank Indonesia to encourage banks to support local textile producers in a departure from the past, when banks did not prioritize the textile industry.

The use of domestic rayon, which is produced in abundance, is expected to help Indonesia’s textile industry to take a greater role in the global market.

“Rayon can be an alternative material in Indonesia,” said Asia Pacific Rayon (APR) director Basrie Kamba, adding that rayon was a competitively priced and widely available eco-friendly fabric.

APR, which began production in December, last year, has already produced 120,000 tons of rayon fibers. "Almost half of the output goes to the local market, while the rest has been shipped to 14 countries, including Turkey, Pakistan, Bangladesh, Vietnam, Germany and Italy.”

Basrie expressed his appreciation for the government’s support for the sustainable development of the national textile industry. “APR is committed to support the growth of Indonesia’s textile industry - from upstream, middle to downstream sectors. All the different actors in the textile industry must collaborate closely and harmoniously so that we can develop collectively to achieve our common goal: Revitalizing the textile industry".

The market potential for this industry is very promising, he said, with Indonesia’s spending on Muslim clothing valued at US$20 billion in 2017. "That's a huge market. We should make sure local players are able to thrive and prosper,” Basrie stated.

Everything Indonesia

If local companies used domestically produced rayon efficiently, the textile could become an icon of the Indonesian garment sector and expand the textile industry’s global market share. To achieve this, all players from upstream to downstream should pursue research and development into sustainably produced rayon, said Indonesian Textile Association (API) chairman Ade Sudrajat.

Meanwhile, APSyFI’s Redma Gita Wirawasta said that the national textile industry was suffering a massive trade deficit, exporting 500,000 tons of garments and importing 900,000 tons, and urged the government to develop a policy strategy to protect the industry.

Among the realistic solutions was boosting the use of local materials and reducing imports. Indonesia’s textile industry experienced its heyday in the 1980s, when it recorded excellent performance and healthy growth to rank above Vietnam and other neighboring countries.

“This was a result of the government’s effective policies on import substitution and effective industry cooperation,” said Redma. “If we restore these policies, it’s possible that we can revive the glory of our textile industry.”

All participants in the multi-stakeholders meeting agreed that they favored the “Everything Indonesia” approach, which prioritized the use of domestic materials to restore the glory of the national textile industry.

Designer Yufie Kartaatmaja from IFC stressed that stakeholders needed to keep an eye on current developments like the Muslim fashion industry, which uses a large volume of fabrics.

“But it’s hard for us to obtain suitable fabrics that meet the needs of our brands and our customers, who want affordable products. This is what we must address within the industry,” said Yulfie.