Jakarta, 18 September 2024 – Indonesia is ready to participate in the 21st annual China–ASEAN Expo (CAEXPO) exhibition which will be held at the Nanning International Convention and Exhibition Center (NICEC), Nanning, China. The physical exhibition will be held on 24-28 September 2024, while the online exhibition will be held from 24 September 2024 to 31 December 2024 via the CAEXPO online platform.Director General of National Export Development of the Indonesian Ministry of Trade, Mardyana Listyowati, responded positively to Indonesia's participation in the 21st CAEXPO. He said that the Indonesian Ministry of Trade was optimistic that Indonesia-China trade and investment would increase."This exhibition is a strategic forum to promote trade and investment, both for Indonesia and other ASEAN countries. "By attending CAEXPO 2024, we are optimistic that trade and investment cooperation between Indonesia and China will continue to increase," said Mardyana. Mardyana also said that this year marked the first time the exhibition was held for five days. Since it was first held in 2004, CAEXPO has been held for a maximum of four days.Director of Primary Product Export Development at the Indonesian Ministry of Trade, Miftah Farid, said that this year's 21st CAEXPO will expand Indonesia's participation in various sectors. Several sectors displayed at the CAEXPO exhibition can encourage Indonesian small and medium enterprises (SMEs) to increase exports to the ASEAN and Chinese markets. “CAEXPO provides an important opportunity for Indonesian SMEs to connect with the Chinese market. "This can encourage an increase in Indonesian exports to China," said Miftah.CAEXPO is the result of an agreement at the 7th China–ASEAN Free Trade Area (CAFTA) Summit in 2003. This exhibition aims to promote trade in goods, investment cooperation, technology transfer, trade in services, industrial relations, as well as subregional cooperation between ASEAN and China. As a member of ASEAN, Indonesia regularly participates in this exhibition every year. Two Indonesian PavilionsAt this year's exhibition, Indonesia will display two pavilions. First, the Commodity Pavilion covering an area of 2,160 square meters in hall D4. The Commodity Pavilion will be attended by 100 booths displaying various potential Indonesian products, including food and beverages, fashion and accessories, furniture and home decoration, as well as daily necessities products.Second, the National Pavilion (City of Charm) covering an area of 160 square meters in hall B2. The National Pavilion will showcase the great potential of one of Indonesia's main commodities, namely palm oil, which is managed by the Palm Oil Plantation Fund Management Agency (BPDPKS). Mardyana added, the National Pavilion will showcase the potential and benefits of palm oil, sustainability efforts, and its contribution to the national economy."As part of promoting the potential and sustainability of the Indonesian palm oil industry, this year the National Pavilion will showcase the potential and benefits of palm oil from BPDPKS. "Apart from introducing various high-value palm oil derivative products, we will also highlight sustainability efforts in this sector and the contribution of palm oil to the national economy," explained Mardyana. China is Indonesia's largest trading partner. In the last five years (2019-2023), trade between the two countries showed a positive trend of 19.12 percent with total trade in 2023 amounting to USD 127.81 billion. Total trade in this period consisted of total Indonesian exports to China amounting to USD 64.93 billion and total Indonesian imports from China amounting to USD 62.88 billion. Thus, Indonesia enjoyed a surplus of USD 2.05 billion. (SOURCE)
Oct, 01 2024
Jakarta, Indonesia – Indonesian Minister of Foreign Affairs, Retno Marsudi delivered a keynote address on the second day of the Indonesia International Sustainability Forum (IISF), Friday, September 6 2024. In her speech, the Minister of Foreign Affairs highlighted the importance of increasing investment in the clean energy sector as a driver of economic growth. sustainable. “Renewable energy is the energy of the future. Energy is not just a commodity, but a driver of economic growth. "The world is racing to shift to a low-carbon economy and Indonesia wants to be part of that," said the Minister of Foreign Affairs, responding to a Bloomberg report last year about the increasing number of investments in clean energy globally. The Minister of Foreign Affairs emphasized that sustainable development is the key to prosperity in the future. Indonesia continues to use diplomacy to encourage sustainable efforts and global cooperation to achieve the SDGs and implement the Paris Agreement. "With changes in the global economy, diplomacy has an important role in realizing a sustainable future," stressed Retno. The Minister of Foreign Affairs emphasized three main priorities that must be met for a sustainable future. First, invest and build green energy. This requires significant technological and funding support, including the Just Energy Transition Partnership (JETP), which Indonesia launched during the G20 Presidency in 2022, and the Asia Zero Emission Community (AZEC) of which Indonesia is one of the initiators. “From all these initiatives, Indonesia's message is very clear. We must ensure that green technology becomes a public good. "I hope that through IISF, we can work closely with the private sector to ensure investment for the development of affordable green technology," he stressed. Second, exploiting the huge potential of the blue economy. According to estimates, the blue economy can generate more than USD 1.5 trillion and create around 30 million jobs per year. To unlock the potential of the blue economy, Indonesia has launched the Blue Economy Roadmap 2023-2045, which aims to develop key sectors such as aquaculture and the downstream fisheries industry, to ensure economic growth is in line with marine conservation efforts. Third, the Indonesian Minister of Foreign Affairs emphasized focusing on carbon absorption. “As the third largest tropical rainforest country in the world, Indonesia has the capacity to absorb large amounts of emissions. "With the lowest deforestation rate in the last 20 years, we can be sure that Indonesia is on the right track," said the Minister of Foreign Affairs. Furthermore, the Minister of Foreign Affairs explained that Indonesia had ratified a long-term strategy for low carbon and climate resilience in 2050 as well as a roadmap to achieve the target of net zero emissions. in 2060 or sooner. In closing, Foreign Minister Retno reiterated that all parties play an important role in efforts towards a low-carbon economy and ensured Indonesia's commitment to strengthening collaboration in order to realize a sustainable future. IISF 2024 was held at the Jakarta Convention Center from 5 to 6 September 2024 and was attended by thousands of people from government, private sector, philanthropy, NGOs, experts and academics from within and outside the country. IISF is a platform for stakeholders to collaborate and exchange best practices in supporting decarbonization and realizing sustainable growth. (SOURCE)
Oct, 01 2024
Jakarta (ANTARA) - The Ministry of Investment/Investment Coordinating Board (BKPM) said the policy of processing raw materials into high added value products (downstreaming) will be one of the priority programs for the next government. "This has been planned since the time of President Jokowi and God willing, later the President-elect, Mr Prabowo, will become one of the priorities, downstreaming this," said Deputy for Investment Climate Development at the Ministry of Investment/BKPM Riyatno at the Investortrust Future Forum in Jakarta, Wednesday. He said the next government's commitment to advancing downstreaming in the country was because this regulation had provided many benefits for the Indonesian economy. For example, processing in the nickel sector provides added value of 11.4 times when processed into nickel sulfate, increases again 19.4 times when sold as a precursor, and increases up to 67.7 times when sold in the form of vehicle battery cells. electric (electric vehicle/EV). Apart from that, Riyatno said that in order to maintain the downstream ecosystem in a sustainable manner, according to him, the Ministry of Investment has implemented several things, such as issuing supporting regulations, tax incentives, encouraging financial sector policies, as well as regulations prohibiting the export of raw materials for nickel, bauxite, copper and tin. "One of the tax incentives handled through the Ministry of Investment/BKPM is tax holidays and also tax allowances. Then there are also financial sector policies, namely the OJK issuing policies in the banking industry to support the acceleration program for battery-based electric motorized vehicles, for example," he said. Previously, the President of the Republic of Indonesia, Joko Widodo, entrusted the continuity of industrial downstreaming to the development project for the Indonesian Capital City (IKN) to Prabowo Subianto after becoming President of the Republic of Indonesia for the period 2024 - 2029. President Jokowi emphasized that the sustainability of people's programs, whether it is the sustainability of infrastructure development or human resources (HR), is very important. (SOURCE)
Oct, 01 2024
Jakarta (ANTARA) - Minister of Investment/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani is committed to continuing to distribute quality and sustainable investment in the Eastern Indonesia region. "The point is why we give more special appreciation to Eastern Indonesia, because if you look at the distribution of investment, previously investment was more concentrated in Java, then Sumatra, Kalimantan and Sulawesi. We want to give special attention to the Eastern part, so that "They can also attract quality and sustainable investment," said Rosan at the 2024 Investment Services Award press conference in Jakarta, Monday. In the 2024 Investment Service Award event which was held in Jakarta on Monday, the winners of the 2024 Investment Service Award for the Special Category for Eastern Indonesia were won by the Ambon City Government, the Merauke Regency Government and the Papua Provincial Government. Rosan said that the 2024 Investment Services Award was an event that always received attention from the international world. "So that's also what we want to convey, that equality is important for us. That's why we are paying special attention to Eastern Indonesia," he said. On the same occasion, Deputy Minister of Investment/Deputy Head of BKPM Yuliot said that the investment potential in Eastern Indonesia was extraordinary. Natural resources are generally found in Eastern Indonesia, and in general the potential for Eastern Indonesia is quite large. "So we are encouraging regions in Eastern Indonesia to be given opportunities. If we make existing standards, for example Eastern Indonesia and Java Island, then of course in terms of services and existing infrastructure, there is a gap between Eastern Indonesia and Western Indonesia. Of course "We see that with our special categorization, this encourages Eastern Indonesia to provide better services to investors," said Yuliot. For the sectors currently being pursued is downstreaming, in fact many investments related to downstreaming are located in Eastern Indonesia. "We see in Morowali, in the North Maluku region, in Papua, there are a lot of large-scale investment activities flowing and having a tremendous impact on our economy," said Yuliot. (SOURCE)
Oct, 01 2024
TRIBUNJABAR.ID, BANDUNG – West Java BUMD PT Jasa Medivest, which has been active for more than 18 years as a medical Hazardous and Toxic Material (B3) waste management company in West Java, is intensively innovating. One of the important initiatives is the optimization of the first incinerator machine, which aims to increase waste processing capacity to reach the latest standards, without ignoring the regulations in force in Indonesia. This optimization will start in 2023, with approval from the shareholders of PT Jasa Medivest and the Indonesian Ministry of Environment and Forestry (KLHK). One important step is the installation of pre-treatment equipment in the form of a mixing tank, which is the main requirement to meet the engineering standards being sought. A number of tests have been carried out, including trial burning tests and commissioning tests carried out by certified laboratories from the Ministry of Environment and Forestry. Currently, PT Jasa Medivest is just waiting for the issuance of an Operational Feasibility Letter from the Ministry of Environment and Forestry to immediately start processing industrial B3 waste in West Java. "Initially, PT Jasa Medivest was only able to process 14 waste codes. Remembering that if you only focus on processing B3 medical waste, business saturation will occur. "So, by optimizing the second incinerator machine at the Dawuan plant, we will be able to process B3 medical and B3 industrial waste with a total of 55 waste codes, of course there are waste proportion standards that need to be met," said Beni Cahyadi, Director of PT Jasa Medivest, in an official release Monday. (30/9/2024). PT Jasa Medivest's business opportunities will be optimal if accompanied by investment funding support for these optimization needs. After collaborating with strategic partners, PT Jasa Medivest succeeded in obtaining funding support from BRI through investment credit facilitation. “We see potential for strategic business development. "PT Jasa Medivest has proven its professional commitment for dozens of years, and the huge opportunity for proper management of B3 waste in Indonesia is certainly the rationale for BRI to support financing in the form of investment credit," said Dhinar Adi Nugroho, Branch Manager of BRI (Persero) Tbk Kiaracondong. The signing of the investment credit agreement took place on Thursday, September 12 2024. Present on this occasion were Beni Cahyadi as Director of PT Jasa Medivest, Dhinar Adi Nugroho from BRI, and Dr. Ranti Fauza Mayana, S.H. as a notary. Responding to the challenges of future business growth, this synergy between BUMN and BUMD is one of the implementations of the 3C spirit (Comply, Competitive, Care), which is an important basis for PT Jasa Medivest as a subsidiary of West Java BUMD to achieve its goals. After the second incinerator is able to process industrial B3 waste, PT Jasa Medivest plans to continue business development by submitting technical approval regarding the optimization of the first incinerator to the Indonesian Ministry of Environment and Forestry. "We will adapt the technology, so that we can manage up to 200 B3 waste codes, and the total capacity of the two incinerator machines will increase from 24 tonnes per day to 30 tonnes per day," continued Beni Cahyadi. Through commitment and technological innovation in managing medical and industrial B3 waste, PT Jasa Medivest strives to ensure sustainable productivity. "So that it is optimal to achieve wider market coverage, present as a B3 waste management solution, and of course develop economic useful value as a West Java BUMD entity," he concluded. (SOURCE)
Oct, 01 2024
Batang (ANTARA) - Minister of Investment/Head of BKPM Bahlil Lahadalia said that currently the realized investment value of 18 companies in the Batang Integrated Industrial Zone (KITB), Central Java, has reached around IDR 14 trillion. "Of the 18 companies that have entered, they have absorbed 19 thousand workers," he said when delivering his speech at the Operational Inauguration of the Batang Integrated Industrial Zone, Friday. According to him, his party targets that within the next 10 years, the Batang Integrated Industrial Zone will be able to absorb 250 thousand workers. In the near future or September 2024, he said, there will also be a South Korean company, namely LG, which will build a cathode factory as an electric vehicle (EV) battery ecosystem. "Because the feasibility study will be completed in August 2024. And the cathode will be built here," he said. Bahlil said that the presence of cathode construction would be an integration of upstream and downstream development of the EV battery ecosystem. "There will be a precursor smelter for developing battery cells in North Maluku. Then, there will also be battery cells in Karawang, West Java," he said. Apart from that, there will be a combination of high technology at KIT Batang as well as labor-intensive MSME industries such as shoes and footwear. "God willing, it will continue to run well. And we only report one, only one of our ports is missing, so Pelindo has tendered the port but only the breakwater and the channel," he said. (SOURCE)
Oct, 01 2024
Cianjur (ANTARA) - The Cianjur district government via The Department of Investment and One Stop Integrated Services (DPMPTSP), West Java, recorded that investment realization in the second quarter of 2024 reached 47.41 percent or around IDR 862,961,798,198 of the target of IDR 1,820,061,327,000. Head of DPMPTSP Cianjur Dadan Ginanjar in Cianjur Thursday, said that micro and small business permits (IUMK) were the biggest contributor to investment in Cianjur from 11 sectors in the Implementation of Risk-Based Business Licensing through the Online Single Submission System (OSS RBA) with a realization of IDR 215,409,964,098. "Looking at the realization up to June 12, we are optimistic that the target can be achieved and exceeded like the previous year by more than 100 percent thanks to the support of related regional agencies and organizations," he said. The achievement of investment realization from January to June 12 2024 is inseparable from the high level of trust from various groups of people and investors to invest their capital in various business fields in Cianjur. Various programs that make it easier for investors to invest are provided by the Cianjur Regency Government, such as providing incentives to business actors in the form of tax relief or levies based on Cianjur Regional Regulation Number 13 of 2023 concerning Providing Incentives and Ease of Investment. In fact, he said, the Regent of Cianjur together with the Cianjur Regional Leadership Communication Forum (Forkopimda) helped ensure the security and ease of investing, so that from the beginning to the middle of the year the number of investors entering Cianjur continued to increase. "We hope that the revision of the Regional Spatial Planning Regulation (RTRW) will soon be completed and ratified, so that investment numbers will continue to increase by intensifying outreach to investors and potential investors from inside and outside Cianjur," he said. He explained that other investment achievements in Cianjur contributed quite high, such as the trade and services sector with a realization of IDR 166,306,573,519 or 10.04 percent, foreign investment (PMA) realization of IDR 134,280,000,000 or 8.11 percent. Meanwhile, the Investment Activity Report for the 10 largest sectors is the energy and mining sector amounting to IDR 9,239,500,000 or 0.56 percent, so the party is optimistic that investment realization in 2024 amounting to IDR 1,820,061,327,000 can be achieved before the end of the year. "Various programs to attract investors to come and invest in Cianjur have been carried out for the last two years, so that investment development in various fields is wide open," he said. (SOURCE)
Oct, 01 2024
Jakarta - Entrepreneurs who are members of the Young Indonesian Entrepreneurs (HIPMI) took part in the 21st China-ASEAN Business Investor Summit (CABIS) which was held in Nanning, Guangxi, China. This event is an opportunity to attract foreign investors to Indonesia. HIPMI Deputy Secretary General Anthony Leong gave a presentation on investment opportunities in Indonesia. Anthony Leong underlined the importance of collaboration between ASEAN countries to strengthen the investment climate in the region, especially in Indonesia. "Indonesia has abundant natural resources, a significant demographic bonus, a large consumer market, and a stable economic and political environment. All of this makes Indonesia a competitive investment destination," said Anthony in his statement (29/9/2024). In his presentation, Anthony explained the latest data showing that investment realization in Indonesia in the first semester of 2024 reached IDR 829.9 trillion (around USD 54 billion). This figure reflects global confidence in Indonesia's economic potential and provides a positive picture of the stability and attractiveness of investment in this country. Anthony also emphasized the importance of young entrepreneurs collaborating between countries, because it can be seen that the trend of becoming conglomerates nowadays is that relatively many of them are young, under 50 years old. "Indonesia is one of the largest exporters of coal in the world and has important mineral reserves such as nickel, copper and bauxite. With the increasing global focus on renewable energy, Indonesia is trying to attract more investment in this sector," he explained. Anthony also underlined the role of digital transformation in simplifying the investment process. "Through one-stop investment services, procedures for foreign investment are now much easier and more efficient. We are ready to become a strategic partner for international investors, especially from China, to establish business partnerships in Indonesia," he added. With various incentives on offer, such as income tax exemptions for up to 20 years and elimination of import duties for certain sectors, Anthony believes that Indonesia is increasingly attractive to foreign investors. He cited a number of successful investments made by large companies, including Toyota, Mitsubishi and ExxonMobil, which have had a positive impact on the local economy. The Deputy General Secretary of the Indonesian Chinese Clan Social Association (PSMTI) also invited the Chinese business community to be more active in exploring investment opportunities in Indonesia. "Together, we can create a prosperous future and strengthen our bilateral relations. I am optimistic that through collaboration and partnership, both Indonesia and China can mutually gain significant economic benefits," he concluded. Apart from that, in an effort to strengthen economic and investment cooperation between Indonesia and China, a Memorandum of Understanding (MoU) was also signed between several important organizations from the two countries. This MoU was held on the sidelines of the China-ASEAN Business and Investment Summit (CABIS). The first MoU was signed between CABIS and the Indonesian Young Entrepreneurs Association (HIPMI). This aims to open opportunities for business collaboration between young Indonesian entrepreneurs and the ASEAN region, especially in facilitating cross-border investment and trade. Apart from that, CCPIT Guizhou Sub-council also has a partnership with two leading business associations from Indonesia, namely HIPMI and the Indonesian Chinese Entrepreneurs Association (ICEA). This collaboration is expected to strengthen increasingly comprehensive business relationships. According to Anthony, this collaboration will not only encourage economic growth between the two countries but also open up great opportunities for young entrepreneurs and the Chinese community in Indonesia to be actively involved in the global market. "The signing of this MoU is an important milestone in improving bilateral economic relations between Indonesia and China. We hope that this collaboration can strengthen investment, expand business networks and create more business opportunities," said Anthony. Through this collaboration, it is hoped that economic relations between Indonesia and China will become closer, with the involvement of strategic business sectors from both parties. (SOURCE)
Oct, 01 2024
JAKARTA, KOMPAS.com - Minister of Investment/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani said that during the Advanced Indonesia Cabinet or the second period of President Joko Widodo's (Jokowi) administration, investment in the country was able to absorb 7,188,479 workers. Rosan said, on average every year 1,437,695 workers are absorbed due to investment realization. "In terms of job creation, the total employment absorption during the Advanced Indonesia Cabinet is also 7,188,479 workers in Indonesia or the average per year is approximately 1,437,695 (absorbed labor)," said Rosan when giving a speech at 2024 Investment Service Award event in Jakarta which was broadcast online on Monday (30/9/2024). "Because we know that job creation is our task or challenge which we must carry out continuously," he continued. Rosan also said that by the end of September 2024, Indonesia's investment achievement is estimated at IDR 6,350 trillion. This achievement is the realization of investment during the second period of President Jokowi's administration. "We can say that during the Advanced Indonesia Cabinet period (2019) until June 2024, there was investment realization of IDR 5,931.3 trillion, which is estimated by the end of September 2024 to reach IDR 6,350 trillion," said Rosan. Based on these achievements, according to him, there has been an increase in investment achievements of 90.2 percent since 2019. Meanwhile, according to the government's average calculations, there is investment growth of 18 percent per year. Rosan said that the achievement of investment realization shows that the policies issued by the government have been well responded to by the public and the market. "So based on the distribution of this investment, since 2020 more of it has been outside Java," said Rosan. Meanwhile, in terms of risk-based business licensing services, there are 10,382,846 business identification numbers (NIB) issued by the government in 2921-2024 through the online single submission (OSS) system. "This also shows that business licensing is easier and also provides greater certainty and the majority of the permits we give are to small and medium businesses," said Rosan. However, continued Rosan, the ease of issuing business permits has not yet occurred for medium and large businesses. The reason is that medium and large businesses require a longer verification process. Involves ministries, institutions, regional governments and there are a number of other technical requirements. So Rosan asked all related parties to improve regulations to speed up licensing services. "We need, in our opinion, to increase investment competitiveness, improve regulations and improve services and accelerate licensing in accordance with authority at both the central and regional levels," he said. "On this occasion we also appeal and convey to all government ministries and institutions, provincial governments, district governments, city governments to provide the best service," added Rosan. (SOURCE)
Oct, 01 2024
Jakarta (ANTARA) - The Ministry of Communication and Information (Kemenkominfo) continues to strive to grow startup capacity in Indonesia, including by bridging Indonesian startups to be able to obtain funding from venture capitalists both at home and abroad with total funding received reaching 172.3 million US or the equivalent of IDR 2.6 trillion. "This is quite large, because compared to our spending, the impact felt is six times greater and this is what startup friends feel," said Director of the Digital Economy of the Ministry of Communication and Information Bonifasius W Pudjianto at the Ministry of Communication and Information Technology Office, Central Jakarta, Friday . Boni said that the Ministry of Communication and Information, in terms of facilitating startup development in Indonesia, also pays attention to network expansion and also opens up opportunities for investors from within the country and abroad to see the potential of local startups. The program focused on this activity is called HUB.ID, a program released in 2021 and there are two activities in it, namely HUB.ID Accelerator and HUB.ID Summit. The HUB.ID Accelerator program focuses on opening networks for startups, while the HUB.ID Summit is a matchmaking event between startups and potential investors who are venture capital to explore investment potential. The Ministry of Communication and Information noted that by 2023 there will be 63 startups facilitated through HUB.ID activities. In 2024, HUB.ID will again hold the HUB.ID Summit event, but in collaboration with the Nexticorn foundation, the event is designed to be the NextHub Global Summit. This event will take place on 23-25 September 2024 in Nusa Dua, Bali with the theme "Defrosting the Tech Winter". Even though there was a "Tech Winter" condition in the startup ecosystem in Indonesia which caused many startups to close down, the Ministry of Communication and Information remains optimistic that in the post-pandemic period, the investment climate in the startup ecosystem is starting to improve. Boni said the Ministry of Communication and Information continues to be committed to providing support for the growth of digital startups in Indonesia through many programs. "This cannot be stopped, we must continue to encourage young colleagues to develop their businesses in a digital direction. Because digitalization can expand to many things, starting from MSMEs to downstreaming to strategic sectors," said Boni. He further added, "We at the Ministry of Communication and Information even oversee the agriculture, fisheries, education, health, logistics and tourism sectors so that these sectors can further grow, develop and have an economic impact on society." (SOURCE)
Oct, 01 2024
Jakarta (ANTARA) - Minister of Communication and Information (Menkominfo) Budi Arie Setiadi invited investors in the Technology, Information and Communication (ICT) sector to make Indonesia an investment destination for the development of artificial intelligence (AI). He conveyed this based on data that ASEAN continues to experience positive growth in the opportunities for AI's contribution to the regional economy, which in 2020 reached 1 billion US dollars, increasing to 11 billion US dollars in 2022. “Private investment destinations in the AI sector are still dominated by the United States, China and the United Kingdom. (Even though) the digital sector also continues to grow rapidly in the ASEAN region with the investment value in the ICT sector increasing," said Budi in Tangerang, Banten, Friday. While opening himself up to foreign investors investing capital for the development of AI in Indonesia, Budi also invited players in the national digital technology ecosystem to take the opportunity to develop AI as an innovation and solution. Budi said that the potential of AI is increasingly promising with the opportunity for competitive AI startup investment value to reach 1 trillion US dollars in ASEAN GDP by 2030. Meanwhile in Indonesia, the digital sector has succeeded in attracting approximately 22 billion US dollars of investment in 2023. "The market potential is also predicted to reach 210 billion to 360 billion US dollars in 2030, dominated by the e-commerce, online travel, transportation and food industries, as well as online media. The figure for AI's contribution to the Indonesian economy in 2030 is predicted to reach 366 billion US dollars. "This sector will be Indonesia's economic growth in the future," he said. The Minister of Communication and Information explained that this potential shows AI as emerging technologies or technology that is developing and increasingly trusted in various sectors. “As many as 73 percent of the 700 global AI developers believe that AI will be adopted by their organizations in the next two years. "AI is also trusted to provide solutions for various sectors in developing countries, such as in the fields of education, health, public and finance, as well as labor," he said. He also believes that efforts to create digital equality can also be bridged by AI, which is said to be an accelerator in the digital space. Acceleration of access to digital services using AI, said Budi, can occur through providing access to better information and public services, especially in rural or other remote areas. "Apart from that, AI also has the opportunity to increase economic productivity through automation and innovation, so that MSMEs are able to compete in the digital era," he said. Even so, he did not forget to mention that there are still several challenges in AI development that need to be watched out for and solutions sought so that Indonesia can become the right country for AI investment destinations by investors. One of them is uneven infrastructure development and limited funding which hinders internet penetration as a foundation for AI development. "Apart from that, the lack of transfer of knowledge from AI developing countries also limits the development of AI governance in a country," said Minister Budi. (SOURCE)
Oct, 01 2024
Penajam Paser Utara (ANTARA) - Foreign or foreign investment has entered the Archipelago Capital (IKN), Indonesia's new capital city located in Sepaku District, North Penajam Paser Regency, East Kalimantan Province, at the laying of the first stone marking the start of new physical development (groundbreaking ) stage eight reached IDR 1.15 trillion. "Foreign investment has entered IKN at the eight-day groundbreaking stage today," said President Joko Widodo in Sepaku, North Penajam Paser Regency, Wednesday. "Foreign investment has entered IKN from Australia in the education sector, as well as Russia and China in the property sector," he added The investment value from Australia is IDR 150 billion, Russia's investment value is IDR 500 billion and China's investment value is IDR 500 billion, said President Jokowi, when interviewed after the eighth phase of groundbreaking activities in Nusantara City, located in Sepaku District, North Penajam Paser Regency. Many foreign investors signed an initial commitment document for cooperation (letter of intent/LoI) in the development of Indonesia's future capital city. However, if it is not immediately approved, it must first go through a selection process to adapt the concept for the development of Indonesia's new capital city. "Adapting to existing needs in IKN, so that a good ecosystem is built, so that Nusantara City becomes an attractive location," explained Jokowi. Then there are also two local investments in groundbreaking marking the start of the new physical phase eight in Indonesia's new capital city, with an investment value of IDR 100 billion and IDR 25 billion respectively. Investment confidence from within and outside the country illustrates that Nusantara City is a very attractive place for investment. However, according to the President, the construction of government facilities is entirely handled by the government. The groundbreaking of phase eight in Nusantara City is not the end before the head of state's term of office ends, it could be that within the next week, many investors will want to lay the first stone for new physical development, said President Jokowi. (SOURCE)
Oct, 01 2024
Jakarta, 6/8/2024 Ministry of Finance – Minister of Finance (Menkeu) Sri Mulyani Indrawati emphasized that the government will pay attention to factors driving economic growth so that the growth target of 5.2 percent can be achieved in semester II-2024. “We will pay attention to consumption, investment, exports and imports. "We will continue to look at factors in this second semester, namely the third and fourth quarters, to ensure that economic growth can be maintained at a level of between 5.1 (percent) to even 5.2 (percent)," said the Minister of Finance in press statement at the President's Office, Jakarta on Monday (5/8). Based on data from the Central Statistics Agency (BPS), Indonesia's economic growth in the second quarter of 2024 grew by 5.05 percent (year on year/yoy) supported by strong domestic demand and increasing export performance. In terms of expenditure, household consumption as the main contributor grew by 4.93 percent (yoy) driven by longer religious holiday periods and school holidays. Apart from that, people's purchasing power is still maintained in line with controlled inflation, an increase in ASN salaries, the provision of a 13th salary with 100 percent performance allowance, as well as the creation of greater new jobs in early 2024 amounting to 3.55 million. Meanwhile, government consumption grew positively by 1.42 percent, mainly supported by quite high absorption of capital expenditure and goods expenditure, respectively at 39.5 percent and 6.1 percent. Meanwhile, investment growth or Gross Fixed Capital Formation (PMTB) was recorded to have strengthened by 4.43 percent (yoy), supported by the performance of building investment growth which grew 5.31 percent. One of the factors driving increased investment is the high absorption of government capital expenditure related to the completion of various National Strategic Projects (PSN), including the development of the Archipelago Capital City (IKN). On the other hand, the Government Borne Value Added Tax (VAT DTP) housing policy also encourages private sector property construction activity which continues to show an upward trend. Private investment activity which is still strong can also be seen from the performance of the realization of Foreign Direct Investment (PMA) and Domestic Investment (PMDN) which grew 22.49 percent, as well as the Manufacturing Purchasing Managers' Index (PMI) which was in the expansion zone throughout the second quarter. From the production side, all sectors grew positively in the second quarter of 2024. The manufacturing sector grew by 3.95 percent (yoy). Downstream-related industries, such as the basic metal processing industry and the non-metallic minerals industry, are also growing rapidly. The food and beverage industry, which is the largest contributor to the manufacturing sector, grew 5.53 percent. Another main sector, namely the trade sector, grew by 4.86 percent (yoy) in line with public consumption which was still strong. Other sectors such as agriculture, forestry, fisheries, tourism, transportation and warehousing, as well as the provision of accommodation and food and drink also grew positively in the second quarter of 2024. On the other hand, the mining sector experienced a slowdown, especially related to the decline in oil and gas and coal production. Resilient and consistent economic growth performance above 5 percent has a significant impact on community welfare. The unemployment rate will decrease from 5.45 percent in 2023 to 4.82 percent this year. Meanwhile, the poverty rate also continues to decline from 9.36 percent to 9.03 percent. Job creation in 2024 will also reach 3.55 million people, an increase from the previous 3.02 million people, which will continue to strengthen people's purchasing power in the future. The government will continue to monitor the risk of global economic stagnation which is expected to continue throughout 2024. The 2024 APBN will continue to be optimized to maintain stability and momentum of economic growth so that the growth target of 5.2 percent can be achieved. (SOURCE)
Oct, 01 2024
JAKARTA - Investment achievements in Indonesia are said to have reached IDR 6,931 trillion by June 2024. Minister of Investment/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani explained that this figure was achieved during the Advanced Indonesia Cabinet period or the second period of the Jokowi administration. In the 2024 Investment Service Award event with the theme One Stop Integrated Service Performance and Accelerated Business Implementation Performance which was held on Monday (30/9/2024), Minister Rosan projected that the value of investment in Indonesia would continue to increase. According to him, the achievement of this investment realization shows that the policies issued by the government were responded to positively by investors, and what is even more interesting is that during this period the investment invested was spread not only on the island of Java, in fact it was mostly outside Java. "This is an increase of approximately 18% every year. And this is an increase in investment of 90.2% compared to 5 years ago," said Minister Rosan. "We know that we have to continue to make improvements, reform policies, policies and regulations in order to improve our investment climate. Moreover, with the Ciptaker Law which has provided cover, we have become more open," he added. It was further stated that apart from the large investment value, the Ministry of Investment/BKPM also recorded a workforce absorption of up to 7,188,479 people or an average of 1,437,695 people per year. On the other hand, the risk-based business permits that we have issued from 4 August 2021 - 27 September 2024 contain 10,382,846 Business Identification Numbers (NIB). "We issue the NIB through an online single submission system. This also shows that business licensing is easier and provides certainty, and the majority of permits we give are to SMEs," explained Minister Rosan. Rosan also emphasized to all relevant parties related to investment licensing to be more synergistic in providing certainty to the business world in order to create a good investment climate in Indonesia. He also hopes that all parties can improve investment services more than before. "We need to increase investment competitiveness, improve regulations, improve services, and accelerate business licensing in accordance with authority at both the central and regional levels. So we ask for cooperation, synergy, from all related parties related to investment licensing," he concluded. (SOURCE)
Oct, 01 2024
Jakarta (ANTARA) - Minister of Investment/Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani revealed that there were three achievements created from investment realization for the period October 2019 to June 2024. Rosan said that based on data from the Ministry of Investment/BKPM, there were three achievements made from investment realization for the period October 2019 to June 2024. First, there was an increase in investment realization during the Advanced Indonesia Cabinet period compared to the same period before. "During the Advanced Indonesia Cabinet period (2019) until June 2024, there was investment realization of IDR 5,931.3 trillion, which is estimated by the end of September 2024 to reach IDR 6,350 trillion, with an average investment growth of 18 percent per year," he said in Jakarta, Monday. Second, during the Advanced Indonesia Cabinet period, in terms of direct job creation, this investment absorbed 7,188,479 Indonesian workers, or an average of 1,437,695 workers per year. Third, equal distribution of investment, where since the third quarter of 2020, investment realization outside Java has always been higher compared to investment on Java. "The achievement of this realization shows that the policies issued by the government have been responded to very well, responded very positively, so that based on the distribution of this investment since 2020, many have been outside Java," said Rosan. The service innovations implemented by these new winners not only have a positive impact on the local investment climate, but also increase the competitiveness of their regions at the national level. This reflects that the standard of investment services in Indonesia is increasingly high, with many regional governments and ministries continuing to strive to improve their performance and services to attract more investors. (SOURCE)
Oct, 01 2024
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