Indonesia Economy Forum

[Indos]

Indonesia Ready to Produce 17 Million PPE Shirts Every Month

Kompas.com - 25/06/2020, 09:47 WIB

Public communication team Task Force for the Acceleration of Handling of Covid-19, Reisa Broto Asmoro during a press conference related to Covid-19

Member of the Public Communications Team for the Task Force for the Acceleration of Covid-19 Reisa Broto Asmoro said that Indonesia is ready to produce 17 million units of hazmat clothing or personal protective equipment (PPE) every month.

That number is far higher than the need for domestic hazmat clothing, which only reaches 5 million units every month. "The textile producers who are members of the associations are able to produce as many as 17 million hazmat units per month," said Reisa at Graha BNPB, East Jakarta, Wednesday (6/24/2020). "That means far above the needs of the PPE in the country which has been calculated for the past three months to reach around five million units per month," he continued.

Medical Staff Reisa said that the Indonesian hazmat shirt is the work of a team of experts consisting of 95 senior experts and 27 young experts from various scientific disciplines. The hazmat shirt has also been tested to the United States and passed the World Health Organization (WHO) international standard with ISO number (international organization for standardization) 16604.

In addition, the hazmat shirt has also been tested in Hong Kong, Singapore, to Taiwan, and successfully received recommendation. The government claims that Indonesian hazmat clothing is better. "Hazmat clothing produced by Indonesia is even considered better and more cost-effective," said Reisa. For this achievement, according to Reisa, Indonesia should be proud. "As a form of respect for the PPE work of children of this country the product was given the name INA United or Indonesia united," he said

https://nasional.kompas.com/read/20...-siap-produksi-17-juta-baju-hazmat-tiap-bulan

 

[Indos]

‘Crisis like no other’ will shrink Indonesia’s economy, IMF forecasts

• Adrian Wail Akhlas
  The Jakarta Post
  

Jakarta / Thu, June 25, 2020 / 01:31 pm

Jakartans take to the streets around the Hotel Indonesia traffic circle to exercise during Car Free Day (CFD) on Sunday amid the COVID-19 pandemic. Indonesia’s economy is on track for a significant contraction this year as the coronavirus crisis is hitting the global economy harder than previously expected, according to the International Monetary Fund (IMF). (JP/Donny Fernando)


Indonesia’s economy is on track for a significant contraction this year as the coronavirus crisis has hit the global economy more severely than previously expected, the International Monetary Fund (IMF) has forecast.

The United States-based institution projects that Southeast Asia’s biggest economy will contract by 0.3 percent this year, according to the June update of the World Economic Outlook titled A Crisis Like No Other, An Uncertain Recovery, which was published on Wednesday. The global economy, meanwhile, is expected to shrink by 4.9 percent.

“The COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast,” the IMF said, highlighting a reversal of progress on poverty reduction and job creation.


“In countries with high shares of informal employment, lockdowns have led to joblessness and abrupt income losses for many of those workers,” the report reads. “The adverse impact on low-income households is acute, imperiling the significant progress made in reducing extreme poverty in the world.”

Read also: IMF forecasts economic carnage as virus cases surge in Americas

More than 3.06 million Indonesians have either been laid-off or furloughed as of May 27, according to Manpower Ministry data. The government expects that 5.5 million of the country’s workforce, dominated by those working in the informal sector, will lose their jobs this year following slowing economic activity.

The COVID-19 pandemic has disrupted businesses and factories as people are forced to stay at home to contain the coronavirus spread. Indonesia’s economic growth cooled to 2.97 percent in the first quarter as household spending and investment plunged.

Finance Minister Sri Mulyani Indrawati has projected that the economy will contract by more than 3 percent year-on-year in the second quarter. She expects full-year growth of 1 percent under the baseline scenario but a full-year contraction of 0.4 percent under the worst-case scenario.

On Wednesday, the IMF also trimmed Indonesia’s economic growth forecast for next year to 6.1 percent, down from its earlier projection of 8.2 percent, as the path to recovery remains uncertain.

The global economy, meanwhile, would plunged into the deepest recession since the Great Depression of the 1930s, as household spending weakened, while investment subdued, the fund projected.

“The projections of weaker private consumption reflect a combination of a large adverse aggregate demand shock from social distancing and lockdowns, as well as a rise in precautionary savings,” it reads. “Moreover, investment is expected to be subdued as firms defer capital expenditures amid high uncertainty.”

Read also: Clouds thicken over Indonesia’s economic growth as uncertainties persist

Uncertainty surrounding the global economy, including the trajectory of the virus and vaccine trials, are key factors shaping the outlook, the report goes on to say.

“The downturn could be less severe than forecast if economic normalization proceeds faster than currently expected in areas that have reopened,” it reads, while adding that downside risks, such as future outbreaks, remain significant.

Policymakers, the IMF suggests, should consider strengthening fiscal stimulus measures to respond to deteriorating economic conditions.

“Temporary targeted cash transfers to low-income households that kick in when the unemployment rate or jobless claims rise above a certain threshold—can be highly effective in dampening downturns.”

The Indonesian government has allocated Rp 695.2 trillion (US$ 49.3 billion) worth of COVID-19 spending to boost economic growth and strengthen healthcare systems amid the pandemic.

The IMF’s gloomy projection adds to an already long list of weakening expectations for the Indonesian economy made by other international institutions.

The World Bank has projected 0 percent growth for Indonesia this year as the global economy is expected to see its deepest downturn since World War II.

The Organization for Economic Cooperation and Development (OECD) expect the Indonesian economy to shrink 2.8 percent this year even if the government manages to avoid a second wave of infections. If it is hit by a second wave, however, the economy could witness a 3.9 percent contraction.

Read also: GDP to contract by 3.1% in Q2 on COVID-19 headwinds

The Asian Development Bank (ADB) projected Indonesia’s gross domestic product (GDP) to shrink 1 percent this year, which would be the weakest performance since the 1998 Asian financial crisis.

Meanwhile, international rating agency Moody’s Investor Service expected Indonesia’s economy to shrink by 0.8 percent this year, followed by a strong rebound of 6.1 percent in 2021.

“We continue to expect a gradual recovery beginning in the second half of the year, but that outcome will depend on whether governments can reopen their economies while also safeguarding public health,” Moody’s said in its Global Macro Outlook 2020-21 June Update.

Moody’s expects the G20 economies to contract by 4.6 percent this year, followed by 5.2 percent growth next year.

https://www.thejakartapost.com/news...ds-firms-grow-in-q1-amid-economic-crisis.html

 

[striver44]

Hyundai and LG Chem considering an EV battery manufacturing joint venture in Indonesia – report

Hyundai and LG Chem are reportedly considering setting up an electric vehicle (EV) battery manufacturing joint venture in Indonesia, Reuters reports. The details of the venture, including the size of the investment have however not been decided, according to a person familiar with the matter.

The report indicated that LG Group chairman Koo Kwang-mo met Hyundai Motor Group executive vice-chairman Euisun Chung met earlier this week to discuss cooperation in EV batteries, including future technology.

Both companies confirmed that they have met, but said nothing had been decided concerning a potential venture. “Hyundai Motor Group is collaborating with LG Chem on various projects. However, no concrete discussion has been made on a battery joint venture in Indonesia,” Hyundai said in a statement to the news organisation.



Such a move would be in line with future proofing the business. Automakers are moving to secure batteries in anticipation of a rise in EV sales, the potential increase brought about by government subsidies and quotas designed to cut carbon emissions.

Venturing into battery cell production would be a first for Hyundai, which is attempting to challenge the dominance of Toyota in Southeast Asia. In 2018, it outlined plans to invest US$880 million (RM3.76 billion) in Indonesia to build a manufacturing plant and work towards producing EVs in the country. Last year, it announced that the size of the investment would be increased to US$1.55 billion (RM6.63 billion).

Analysts however believe that there’s still a way to go on this front, saying that while Indonesia is committed to promoting the EV industry, the country is not yet ready with charging infrastructure or consumer purchasing power. As such, a battery JV is likely to be a longer-term plan.

https://paultan.org/2020/06/25/hyun...ufacturing-joint-venture-in-indonesia-report/

 

[striver44]

Amid calls for global efforts, biopharmas turn to Indonesia for COVID-19 collaborations

June 25, 2020
By David Ho and Elise Mak
HONG KONG – Biotech companies with COVID-19 vaccine candidates are collaborating with Indonesian companies for overseas trials and to ensure wider availability when approved. Beijing-based Sinovac Biotech Co. Ltd., for example, is collaborating with Indonesia’s state-owned vaccine manufacturer PT Bio Farma to test and manufacture its vaccine candidate there. Bio Farma aims to begin its trials of Sinovac’s Coronavac in July.

Sinovac will provide the formulation, technology and active pharmaceutical ingredients (API) for Bio Farma to develop, test, manufacture and distribute a vaccine in Indonesia.

Even though Bio Farma has strong manufacturing capacity, it may not have the expertise to develop a COVID-19 vaccine as rapidly as Sinovac, which recently reported positive preliminary data from its phase I/II trials.

Sinovac plans to submit the results to China’s National Medical Products Administration (NMPA) and set the protocols for a phase III study in China as well as in other countries like Indonesia, Canada and Brazil.

Bio Farma hopes to start commercializing the vaccine in Indonesia during the first quarter of 2021. It is also working on a novel vaccine with the Eijkman Institute for Molecular Biology based in Jakarta, but that will not be ready for distribution until the end of 2021 at the earliest. The company has also applied to the Coalition for Epidemic Preparedness Innovations (CEPI) to hold trials and build capacity in the country of another possible vaccine.

South Korea’s Genexine Inc., which has just started human trials for its COVID-19 vaccine candidate, also is eyeing a trial in Indonesia.

It has partnered up with PT Kalbe Farma Tbk for the trials in the Southeast Asian country. The pair already shares a joint venture company, PT Kalbe Genexine Biologic, which develops and makes materials for biotech medicines in Indonesia.

“The COVID-19 vaccine development collaboration is Kalbe's contribution to helping the government to overcome the COVID-19 pandemic in Indonesia,” said Sie Djohan, the director of Kalbe Farma.

“Kalbe hopes that through these research and development efforts the vaccine will be able to get quick results, thus the availability of vaccines in Indonesia can be guaranteed,” he said.

Indonesia is the world’s fourth most populous country and there are concerns that there may not be enough supply to meet its needs. The Indonesian Coordinating Minister of Economic Affairs estimates that the country needs to secure a minimum of 340 million ampoules of a COVID-19 vaccine to treat around 170 million people, about two-thirds of the country's total population.

“Our production facility can handle up to 2 billion dosages, so we should be able to produce sufficient quantities of vaccine by ourselves,” said Honesti Basyir, Bio Farma’s president and director, during a commission of the House of Representatives hearing in April.

Companies such as Sinovac are preparing increase their manufacturing capabilities.

“We have started to invest in building a manufacturing facility so that we can maximize the number of doses available to protect people from COVID-19,” said Yin Weidong, Sinovac’s chairman, president and CEO. “As with our other vaccines, we are committed to developing Coronavac for global use.”

Other companies with possible COVID-19 vaccines are also on the lookout for partners abroad. One of them is Beijing-based Yisheng Biopharma Co. Ltd.

“If COVID-19 is going to be around for the next few years, definitely it’s impossible for a single company or just a handful of them to handle this kind of demand at the global level,” David Shao, the CEO of Yisheng, told BioWorld. “I estimate that, even in China, we need at least 10 vaccine producers for such significant scale production capacity. It definitely requires a joint effort by many players from different countries,” he added.

Yisheng is also considering going overseas to test and manufacture its vaccine. It has a manufacturing plant in Singapore that is in the early stages of design.

“We’re actively looking for partners from different locations such as the U.S., Europe or other countries. We think this is going to be multicountry effort. We want to work together with other partners in not only clinical development, but also manufacturing and commercialization,” said Shao.

He said he sees COVID-19 as a global challenge that requires all kinds of collaborative efforts.

“Chinese companies are collaborating with other players and conducting clinical trials outside of China,” said Shao. “This paves the way for clinical achievements that can eventually benefit the global population.”

 

[Indos]

Indonesia among preferred markets in ASEAN, DBS says

• Yunindita Prasidya
  The Jakarta Post

Jakarta / Mon, June 29, 2020 / 07:43 pm

Indonesia is still among the preferred Southeast Asian markets for investment amid the country’s continuous fight against COVID-19, backed by strong household spending and a young working population, Singapore’s largest bank, DBS, has stated.

In a report titled “CIO Insights 3Q20” released on Monday, DBS noted that the country would quickly return to normalcy after the relaxation of the pandemic-related restrictions, while household spending – which contributes more than half of its gross domestic product (GDP) – will continue to drive the recovery.

“The investment strength in Indonesia lies in its favourable demographics. Indonesia is the third-most populous country in Asia, the fourth globally, and has a high proportion of young working adults,” the report reads.

The Indonesian market, along with regional neighbour Singapore, trade at around 13 times forward price to earnings and are deemed to be the cheapest markets in ASEAN, leaving room for earning adjustments, the report stated.

Meanwhile, with the government’s fiscal stimulus and monetary easing support, together with Indonesia’s structural demographic strength, DBS expects the economic woe from the pandemic to be over by the second quarter of this year.

With the pandemic impact on the economy, Finance Minister Sri Mulyani Indrawati has projected that the economy will contract by more than 3 percent year-on-year in the second quarter, after growth slowed to 2.97 percent in the first quarter. She expects full-year growth of 1 percent under the baseline scenario but a full-year contraction of 0.4 percent under the worst-case scenario.

Meanwhile, the Indonesian government has allocated Rp 695.2 trillion (US$ 49.3 billion) worth of COVID-19 spending to boost economic growth and strengthen its healthcare system amid the pandemic. From the total, around Rp 110 trillion of the stimulus has been allocated for social safety programs for the poor and vulnerable.

DBS stated in the report that the stimulus was expected to drive consumer spending in Indonesia during the COVID-19 pandemic, as the country’s consumption was largely driven by the low-middle income segment.

Meanwhile, DBS chief investment officer Hou Wey Fook said e-commerce would become a key trend in the post-pandemic economy.

“[In] the longer term, the theme of a young population, growing economy and a population enjoying digital tools is actually very positive for Indonesia,” Fook said during a webinar on the market outlook on Monday following the publication of the DBS report.

The DBS report says Indonesia is fast becoming the region’s biggest e-commerce market, supported by private equity funds investing in digital start-ups as well as President Joko “Jokowi” Widodo’s push for a digital economy.

According to a study by Google, Temasek and Bain & Company titled e-Conomy SEA 2019, which DBS cited, Indonesia’s internet economy is expected to skyrocket at a compound annual growth rate (CAGR) of 32 percent between 2015 and 2025.

Between 2015 and 2019 alone, the Indonesian e-commerce sector grew at a CAGR of 88 percent with a gross merchandise value (GMV) of US$21 billion.

Consequently, DBS predicts that the sectors that will come out as post-pandemic winners are within the equity themes of health care and technology.

During the webinar, Fook suggested investors stick with a barbell strategy, an investment strategy that includes the extremes of high risk and no-risk assets, as it had shown resilience during the meltdown and a rebound in the upturn.

He added that staying engaged in risk assets, including equity, had resulted in swift rebound due to the unprecedented economic stimulus rolled out by the Fed.

The Jakarta Composite Index (JCI), Indonesia Stock Exchange’s main gauge, which has gained 20 percent from March’s bottom, is currently taking a breather, the report notes. JCI fell by 22.19 percent year-to-date (YTD) as of Monday.

“We expect more upside for the index for it to recover to pre-crisis levels,” the report reads.

Previously, Hariyanto Wijaya, head of research at Mirae Asset Sekuritas Indonesia, the country’s most active brokerage house, reminded investors to keep their losses small when investing during volatile times.

“Please set your cut loss limit quite reasonably, we suggest around 20 percent,” Hariyanto said during a webinar held by The Jakarta Post on June 17. “If investors already get sufficient gains, I suggest taking a profit.”

https://www.thejakartapost.com/news...mong-preferred-markets-in-asean-dbs-says.html

@powastick latest DBS report seems inline with my positive outlook on Indonesia.

 

[powastick]

Indonesia among preferred markets in ASEAN, DBS says

• Yunindita Prasidya
  The Jakarta Post

Jakarta / Mon, June 29, 2020 / 07:43 pm

Indonesia is still among the preferred Southeast Asian markets for investment amid the country’s continuous fight against COVID-19, backed by strong household spending and a young working population, Singapore’s largest bank, DBS, has stated.

In a report titled “CIO Insights 3Q20” released on Monday, DBS noted that the country would quickly return to normalcy after the relaxation of the pandemic-related restrictions, while household spending – which contributes more than half of its gross domestic product (GDP) – will continue to drive the recovery.

“The investment strength in Indonesia lies in its favourable demographics. Indonesia is the third-most populous country in Asia, the fourth globally, and has a high proportion of young working adults,” the report reads.

The Indonesian market, along with regional neighbour Singapore, trade at around 13 times forward price to earnings and are deemed to be the cheapest markets in ASEAN, leaving room for earning adjustments, the report stated.

Meanwhile, with the government’s fiscal stimulus and monetary easing support, together with Indonesia’s structural demographic strength, DBS expects the economic woe from the pandemic to be over by the second quarter of this year.

With the pandemic impact on the economy, Finance Minister Sri Mulyani Indrawati has projected that the economy will contract by more than 3 percent year-on-year in the second quarter, after growth slowed to 2.97 percent in the first quarter. She expects full-year growth of 1 percent under the baseline scenario but a full-year contraction of 0.4 percent under the worst-case scenario.

Meanwhile, the Indonesian government has allocated Rp 695.2 trillion (US$ 49.3 billion) worth of COVID-19 spending to boost economic growth and strengthen its healthcare system amid the pandemic. From the total, around Rp 110 trillion of the stimulus has been allocated for social safety programs for the poor and vulnerable.

DBS stated in the report that the stimulus was expected to drive consumer spending in Indonesia during the COVID-19 pandemic, as the country’s consumption was largely driven by the low-middle income segment.

Meanwhile, DBS chief investment officer Hou Wey Fook said e-commerce would become a key trend in the post-pandemic economy.

“[In] the longer term, the theme of a young population, growing economy and a population enjoying digital tools is actually very positive for Indonesia,” Fook said during a webinar on the market outlook on Monday following the publication of the DBS report.

The DBS report says Indonesia is fast becoming the region’s biggest e-commerce market, supported by private equity funds investing in digital start-ups as well as President Joko “Jokowi” Widodo’s push for a digital economy.

According to a study by Google, Temasek and Bain & Company titled e-Conomy SEA 2019, which DBS cited, Indonesia’s internet economy is expected to skyrocket at a compound annual growth rate (CAGR) of 32 percent between 2015 and 2025.

Between 2015 and 2019 alone, the Indonesian e-commerce sector grew at a CAGR of 88 percent with a gross merchandise value (GMV) of US$21 billion.

Consequently, DBS predicts that the sectors that will come out as post-pandemic winners are within the equity themes of health care and technology.

During the webinar, Fook suggested investors stick with a barbell strategy, an investment strategy that includes the extremes of high risk and no-risk assets, as it had shown resilience during the meltdown and a rebound in the upturn.

He added that staying engaged in risk assets, including equity, had resulted in swift rebound due to the unprecedented economic stimulus rolled out by the Fed.

The Jakarta Composite Index (JCI), Indonesia Stock Exchange’s main gauge, which has gained 20 percent from March’s bottom, is currently taking a breather, the report notes. JCI fell by 22.19 percent year-to-date (YTD) as of Monday.

“We expect more upside for the index for it to recover to pre-crisis levels,” the report reads.

Previously, Hariyanto Wijaya, head of research at Mirae Asset Sekuritas Indonesia, the country’s most active brokerage house, reminded investors to keep their losses small when investing during volatile times.

“Please set your cut loss limit quite reasonably, we suggest around 20 percent,” Hariyanto said during a webinar held by The Jakarta Post on June 17. “If investors already get sufficient gains, I suggest taking a profit.”

https://www.thejakartapost.com/news...mong-preferred-markets-in-asean-dbs-says.html

@powastick latest DBS report seems inline with my positive outlook on Indonesia.

Disagree, full impact on coronavirus if it is fullblown in indonesia is not accounted. In two months time, it will reach India 20000 cases per day. The only way to prevent this is drastic action by the Indonesian government. Economist are not epidemic experts.

 

[acelaw]

The Chinese factory relocated to INDONESIA

Jakarta, CNBC Indonesia-president of Jokowi revealed there will be a potential relocation of factories from China as much as 119 companies. Currently, Indonesia has abundance of factory relocation from China, Japan, and Korea. We had a good time. "I am glad today already have entered 7. 'Ve definitely this the 7. Then there are 17 who have a big commitment has gone to 60 percent almost 100 percent, "said in the review of the integrated industrial area Batang, Central Java, Tuesday (30/6).

However, as many as 7 factories were not confirmed whether the whole relocation to Batang industrial area, or elsewhere in Indonesia. A total of 17 companies are intending to relocate to Indonesia with an investment of US $37 billion, with a workforce absorption of 112,000 people. One company has stated its commitment is LG Chemical with investment value of 9.8 billion US, the potential work absorption of 14,000 people.

.......

Here's a list of 7 companies that ensure relocation to Indonesia

PT. Meiloon Technology Indonesia
Factory relocation from Suzhou, China. Factories in Taiwan and China are the production centres for the global market

PT. Sagami Indonesia
Factory relocation from Shenzen, China because the cost of factories and labor in Indonesia more competitive than China

PT CDS Asia (Alpan)
Factory relocation from Xiamen, China due to the import tariff of products from Indonesia to the U.S. 0% compared to the tariff 25% from China to the U.S.

PT. Kenda Rubber Indonesia
Factory relocation from Shenzen, China due to increasing market demand in Indonesia

Denso, PT Denso Indonesia
Factory relocation from Japan because it sees Indonesia as the best location after conducting research to various countries in the ASEAN region

PT Panasonic Manufacturing Indonesia
Relocation from China because it wants to make Indonesia as the export base market for several product categories home appliances

PT LG Electronics Indonesia
Relocating from South Korea and planning to make Indonesia a new regional hub that reaches the Asian and Australian markets

Source : CNBC Indonesia

 

[Rayadipa]

The Chinese factory relocated to INDONESIA

Jakarta, CNBC Indonesia-president of Jokowi revealed there will be a potential relocation of factories from China as much as 119 companies. Currently, Indonesia has abundance of factory relocation from China, Japan, and Korea. We had a good time. "I am glad today already have entered 7. 'Ve definitely this the 7. Then there are 17 who have a big commitment has gone to 60 percent almost 100 percent, "said in the review of the integrated industrial area Batang, Central Java, Tuesday (30/6).

However, as many as 7 factories were not confirmed whether the whole relocation to Batang industrial area, or elsewhere in Indonesia. A total of 17 companies are intending to relocate to Indonesia with an investment of US $37 billion, with a workforce absorption of 112,000 people. One company has stated its commitment is LG Chemical with investment value of 9.8 billion US, the potential work absorption of 14,000 people.

.......

Here's a list of 7 companies that ensure relocation to Indonesia

PT. Meiloon Technology Indonesia
Factory relocation from Suzhou, China. Factories in Taiwan and China are the production centres for the global market

PT. Sagami Indonesia
Factory relocation from Shenzen, China because the cost of factories and labor in Indonesia more competitive than China

PT CDS Asia (Alpan)
Factory relocation from Xiamen, China due to the import tariff of products from Indonesia to the U.S. 0% compared to the tariff 25% from China to the U.S.

PT. Kenda Rubber Indonesia
Factory relocation from Shenzen, China due to increasing market demand in Indonesia

Denso, PT Denso Indonesia
Factory relocation from Japan because it sees Indonesia as the best location after conducting research to various countries in the ASEAN region

PT Panasonic Manufacturing Indonesia
Relocation from China because it wants to make Indonesia as the export base market for several product categories home appliances

PT LG Electronics Indonesia
Relocating from South Korea and planning to make Indonesia a new regional hub that reaches the Asian and Australian markets

Source : CNBC Indonesia

This a very great news in this dark time, bahlil manage to prove himself, thank God our government learning fast from our failure in 2019.

 

[Indos]

The Chinese factory relocated to INDONESIA

Jakarta, CNBC Indonesia-president of Jokowi revealed there will be a potential relocation of factories from China as much as 119 companies. Currently, Indonesia has abundance of factory relocation from China, Japan, and Korea. We had a good time. "I am glad today already have entered 7. 'Ve definitely this the 7. Then there are 17 who have a big commitment has gone to 60 percent almost 100 percent, "said in the review of the integrated industrial area Batang, Central Java, Tuesday (30/6).

However, as many as 7 factories were not confirmed whether the whole relocation to Batang industrial area, or elsewhere in Indonesia. A total of 17 companies are intending to relocate to Indonesia with an investment of US $37 billion, with a workforce absorption of 112,000 people. One company has stated its commitment is LG Chemical with investment value of 9.8 billion US, the potential work absorption of 14,000 people.

.......

Here's a list of 7 companies that ensure relocation to Indonesia

PT. Meiloon Technology Indonesia
Factory relocation from Suzhou, China. Factories in Taiwan and China are the production centres for the global market

PT. Sagami Indonesia
Factory relocation from Shenzen, China because the cost of factories and labor in Indonesia more competitive than China

PT CDS Asia (Alpan)
Factory relocation from Xiamen, China due to the import tariff of products from Indonesia to the U.S. 0% compared to the tariff 25% from China to the U.S.

PT. Kenda Rubber Indonesia
Factory relocation from Shenzen, China due to increasing market demand in Indonesia

Denso, PT Denso Indonesia
Factory relocation from Japan because it sees Indonesia as the best location after conducting research to various countries in the ASEAN region

PT Panasonic Manufacturing Indonesia
Relocation from China because it wants to make Indonesia as the export base market for several product categories home appliances

PT LG Electronics Indonesia
Relocating from South Korea and planning to make Indonesia a new regional hub that reaches the Asian and Australian markets

Source : CNBC Indonesia

This is the location. Overall it has 4000 hectare but for the first step the land prepared for industry is about 400 hectare. The sea over there is deep so there is potency to build port as well. The land is owned by state owned company, PT Perkebunan Nusantara 9.

 

[Nike]

Disagree, full impact on coronavirus if it is fullblown in indonesia is not accounted. In two months time, it will reach India 20000 cases per day. The only way to prevent this is drastic action by the Indonesian government. Economist are not epidemic experts.

We already put countermeasure for such possibility, there is no grave condition in Indonesia like what happened in Equador or Brazil, Indonesia itself put the window opportunity in Match, April and Mei to better condition of our health facility and social impact from Covid 19 outbreak, and manage to mitigate the impact into the lowest level possible

 

[powastick]

We already put countermeasure for such possibility, there is no grave condition in Indonesia like what happened in Equador or Brazil, Indonesia itself put the window opportunity in Match, April and Mei to better condition of our health facility and social impact from Covid 19 outbreak, and manage to mitigate the impact into the lowest level possible

Whatever it is, it is not enough. It is still growing exponentially.

 

[Indos]

New Industrial Complex in North Sumatra has also shown good progress by the success in acquiring the land. This is a fresh news just in 11 June 2020. The port itself has already been operated since last year. Both the industrial complex and port are owned by state owned PT PELINDO 1.

http://mediasumutku.com/persiapan-lahan-pembangunan-kawasan-industri-kuala-tanjung-rampung/

Kuala Tanjung Port first export operation. Direct export Kuala Tanjung- Shanghai and Kuala Tanjung-Papua Nuigini.

January 2019

 

[striver44]

New Industrial Complex in North Sumatra has also shown good progress by the success in acquiring the land. This is a fresh news just in 11 June 2020. The port itself has already been operated since last year.

http://mediasumutku.com/persiapan-lahan-pembangunan-kawasan-industri-kuala-tanjung-rampung/

More industry = more urbanization

Notice that country with significantly high urbanized population has an edge over the less urbanized one.

 

[Nike]

More industry = more urbanization

Notice that country with significantly high urbanized population has an edge over the less urbanized one.

Our steel consumption still fall below the world average, need more boost for infrastructure spending

 

[Indos]

More industry = more urbanization

Notice that country with significantly high urbanized population has an edge over the less urbanized one.

Yup, Sumatra needs to be industrialized further. The palm oil industry there should be stopped from expansion mode forever. Government itself is already quite serious with the idea that make them decide to stop supplying Singapore with gas right after the contract is finished in 2023 and use the gas for industrializing Sumatra island further.

The Sumatra highway with length of 2700 km will also be finished in 2024 according to the plan. There will be many areas along the road that can be chosen for another industrial complex zone. Beside in North Sumatra, Riau province is also very strategic due to the location which is near Singapore. Batam island (next to the Singapore) has already been quite full with a lot of industry. Gas pipe line form gas field in Riau that currently still supply Singapore (and will be stopped in 2023 inshaAllah) will be easier to supply industry complex around Riau Province.

Just look at the vast inhabited land across the road between Riau province capital, Pekanbaru, into Dumai city where the container port is planned to be built there. Actually that vast land has already been occupied with palm oil but I believe it will not be difficult to convert some of them into industrial complex zone. The minimum wage in Riau is higher than in Central Java where Batang industrial complex is located but is still much quite competitive than Singapore and Malaysia. And even it is still half the Minimum wage of Batam island.

New High Way, Pekan Baru-Dumai

Bintan and Galang Island (Next to Singapore)

Bintan Island itself, island which is next to Batam will be used more on tourism and aerospace industry (particularly MRO Industry). Bintan island airport construction is almost finished.

Bintan is relatively quite empty with island larger than Singapore and has its own fresh water supply.

The industrialization in Bintan and Galang Island will likely be speed up after the bridge connecting Batam-Galang-Bintan island is finished in 2025 inshaAllah. The residential areas in the island need to be in the form of apartment than houses, in order to spare more land for industry and green zone (to retain fresh water supply)

Batam-Galang-Bintan bridge proposal