Jabartrust, Bandung – West Java's economy enters 2024 in a bright light. In the latest review, data shows that economic growth still radiates positive light. In the period January to September 2023, West Java investment and exports experienced a significant increase, even reaching the highest position at the national level. Head of the West Java Province Industry and Trade Service, Noneng Komara Nengsih, revealed that investment realization reached IDR 137.2 trillion in that period. With only three months remaining in 2023, West Java remains optimistic that its investment will lead nationally. The industrial sector is the main pillar of growth, accounting for more than half of total investment. Optimism for the West Java processing industrial sector next year is fueled by various factors, including global economic recovery, strong domestic demand growth and high investment in the sector. Improving global conditions also provide a breath of fresh air. With gradual recovery from the impact of the pandemic and projected economic growth increasing from 2.8 percent to 3 percent due to increasing global demand, West Java can further optimize its export potential. In addition, the stability of controlled inflation, falling from 6.17 percent to 2.85 percent in November 2023, gives hope for an increase in people's purchasing power and higher domestic demand. Not only that, West Java also made an achievement as the largest contributor to exports in the period January to October 2023, recording a surplus of US$ 20.57 billion in its Trade Balance. Bank Indonesia estimates that West Java's economic growth will remain positive in 2024, ranging from 4.9 percent to 5.7 percent, despite uncertainty in the global economy. The agricultural and consumption sectors are predicted to experience significant strengthening. However, challenges are inevitable. Erwin Gunawan Hutapea from Bank Indonesia highlighted the importance of price stability and increasing public consumption, especially in the series of Presidential Elections, Legislative Elections and Regional Head Elections which have the potential to encourage consumption. In an effort to encourage economic growth, Bank Indonesia has prepared seven policy recommendations. These include efforts to control food inflation, maintain people's purchasing power, accelerate infrastructure development, and strengthen new sustainable economic sectors. With these various strategic steps, Bank Indonesia projects that West Java's economy will continue to thrive in 2024, giving hope for sustainable progress for this province. (SOURCE)
Dec, 12 2023
Warta Ekonomi, Bandung - Lately, there have been many viral videos circulating about the world of work that are very contradictory. These videos depict the sadness of thousands of company employees who have worked for years and were laid off because the company closed. “Sad to see it all. These companies are labor intensive companies which of course number thousands of employees per company, not hundreds. "In fact, videos of workers' demonstrations are circulating demanding wage increases above PP 51/2023," explained the Chair of the West Java (Jabar) Indonesian Employers' Association (Apindo) Ning Wahyu Astutik in his official statement, Sunday (10/12/2023). Ning assesses that West Java Province has the highest investment realization compared to other provinces with an investment value of IDR 174.58 trillion or around 14.46% of the total national investment in 2022. So, with multi-helix and professional collaborative management, not only West Java is Champion, but Great West Java, Extraordinary West Java, West Java Blessings will be achieved and sustainably maintained. "But there has been a decrease in labor absorption per 1T of investment compared to previous years. This is due to the fact that incoming investors are more capital intensive with digital technology and automation," he said. Various labor-intensive industries are located in cities or districts with relatively high wages, thus triggering many relocations to other areas with more competitive wages and supporting infrastructure thereby reducing production costs, for example to Central Java. As for companies that were unable to survive, they closed permanently. Some examples of companies that closed and chose to relocate outside West Java, namely PT Dean Shoes Alas Kaki Karawang, PT Besco Indonesia Alas Kaki Karawang, PT Manito World Garment Sukabumi District, PT Eins Trend Garment Purwakarta, and PT Simone Accessary Collection (Cicadas) Garment Bogor . West Java APINDO hopes that regional heads in West Java really understand this situation so they can collaborate with stakeholders to convince entrepreneurs not to relocate. If this happens, the government suffers losses, workers suffer losses and entrepreneurs suffer many difficulties. "I emphasize more on creating conduciveness in the business world, including certainty and compliance with laws regarding wages. So the development that the President has carried out very well in West Java now, can be carried out evenly in areas where wages are still competitive, so that entrepreneurs do not relocate outside West Java," " he stressed. For this reason, West Java must transform into a capital-intensive, digital and high-tech industry. However, currently, the highest number of workers and job seekers with an educational background are elementary school graduates, followed by SMA/K, SMP, and College. So, in this period of transformation, labor-intensive industries are still very much needed. So, West Java APINDO is ready to help the government map human resource (HR) needs in various industries that invest in West Java. "Labor-intensive industries themselves have extraordinary competition, not only between countries and even between provinces, especially regarding wages," he said. Ning also said that it was time to focus on tourism, the creative economy and MSMEs. However, everything requires a process, and has not been able to absorb the workforce laid off by labor-intensive industries. "Focus on developing human resources, so that they will be able to work in the industrial sector with digital systems and high technology, which is now starting to enter West Java," he said. To make this happen, continued Ning, of course there must be collaborative action from all elements involved. Starting from the Government, entrepreneurs and other stakeholders. "West Java's potential is extraordinary, but it must be managed well, through multi-helix cooperation so that it can achieve goals as expected, towards West Java being a Champion, West Java a Blessing, West Java Great, West Java Extraordinary," he concluded. (SOURCE)
Dec, 12 2023
TRIBUNJABAR.ID,BANDUNG - Acting Governor of West Java Bey Machmudin gave award to mosques, Islamic boarding schools and ulama in West Java who are considered to play an important role as the front guard in implementing the religious and moral values of society. The awarding of the award entitled Appreciation of West Java Mosques, Islamic Boarding Schools and Ulama (AMPU Jabar) was held at the West Java International Airport (BIJB) Kertajati, Majalengka Regency, Friday (1/12/2023). "I would like to thank the leaders of Islamic boarding schools, mosques and ulama who have been at the forefront in implementing the religious and moral values of society in West Java. Through Islamic boarding schools and mosques, education or development of our human resources is carried out not only through formal education and school," he said. The awarding which was held at BIJB Kertajati as the second largest airport in Indonesia was classified into three main categories, namely Champion Islamic Boarding Schools (298 Islamic boarding schools), Champion Mosques (117 mosques), and Champion Ulama (206 people) with predetermined Sub Categories. On this occasion, Bey expressed the commitment of the West Java Provincial Government to not only provide ceremonial awards, but also support it with real action. "The West Java Provincial Government is committed to not only providing ceremonial awards, but also real support in the form of facilities, development programs and strengthening religious institutions. This appreciation will be a sustainable investment in the spiritual and social development of the people of West Java," explained Bey. Apart from that, on the same occasion, Bey gave his appreciation to athletes and coaches who have made West Java proud in terms of sporting achievements at national and international events. "Of course this is a source of pride for all of us West Javanese who excel and of course they will be an inspiration for the younger generation to continue to excel in sports," he said. He hopes that the athletes who will compete at the XXI/2024 National Sports Week (PON) in Aceh and North Sumatra will make good achievements and be able to achieve a hat trick for West Java as overall champion. "The target of the General Chairperson of the West Java KONI is the overall champion (PON 2024). Please pray, ladies and gentlemen, (West Java) will become the overall champion for the third time," he said. Closing his remarks, he hoped that an increasingly advanced and superior West Java could be realized with the awarding of these appreciations. "Hopefully this appreciation will be a good start for our journey together in realizing an increasingly advanced and superior West Java," concluded Bey. The awards for outstanding athletes and coaches in West Java Province were given to 153 participants in the 2022 Vietnam Sea Games, 74 people in the 2022 Surakarta Asean Para Games, and hundreds of other athletes and coaches. (SOURCE)
Dec, 08 2023
Jakarta (ANTARA) - PT Chery Sales Indonesia (CSI) has invested IDR 250 billion in the production of their first electric vehicle in Indonesia, namely the OMODA 5E, which has already received 400 orders. "Chery's investment in Indonesia for EV production reaches IDR 250 billion, as an initial stage to support our CKD process," said Head of Brand PT Chery Sales Indonesia (CSI), Rifki Setiawan in the Forwot 20th Anniversary Discussion activity in Sentul, Bogor, West Java, Sunday (3/12). Even though they still share production with other automotive manufacturers who have pinned their hopes on PT Handal, Chery believes that their vehicle production will not be disrupted and will reach customers in February 2024. "We have started production this month, and we hope to be able to fulfill the 400 orders by January. "So, in Q1 2024, in February to be precise, we will be able to deliver 400 units," he said. Chery, which has been the export leader in China for 20 consecutive years, will not continue to utilize PT Handal's factories. In the future, Chery will also set up a factory and research center in Indonesia. So, Indonesia will be promised to become a production base for countries that use right-hand drive platforms. This is Chery's commitment to Indonesia in the automotive industry. "Our founders have also visited and met with policy makers in the country, and have also signed agreements regarding future investments," he explained. So, this proves Chery's seriousness in the automotive industry in Indonesia. Chery is not only bringing the Omoda and Tiggo Series brands to Indonesia, various other brands will also be brought to Indonesia, such as Jaecoo, which is rumored to be coming to Indonesia soon. (SOURCE)
Dec, 08 2023
INILAHKORAN, Bandung - The Bandung City Government continues to boost economic growth. One of them is by attracting investment interest in the city of Bandung. In fact, to make it easier for investors to carry out activities and make investments, the Bandung City Government issued two special regional regulations, namely Regional Regulation Number 5/2022 concerning Spatial Planning and Regional Regulation Number 4/2022 concerning the Implementation of Capital Investment. "The Bandung City Regional Spatial Planning Regulation is the most important platform for providing investment certainty. Around December 2023 or January 2024, a detailed plan for the spatial planning regional regulation can be immediately established. This is the main means for the Bandung City Government to provide permits," said the Acting Mayor of Bandung. Bambang Tirtoyuliono, Tuesday 5 December 2023. According to him, certainty regarding regulations, incentives and disincentives provided by the Bandung City Government supports investment certainty. "Apart from that, there are 12 investment projects that we are offering to potential investors. Through this program we hope to increase investment interest in the city of Bandung. The value is around IDR 6 trillion. We are optimistic that the target of IDR 7.25 trillion can be achieved," he said. He added that the impact of growing investment in the city of Bandung has had a huge impact on the human development index (HDI). In 2022, the HDI in Bandung City will reach a value of 82.5. In 2023 the target is 83.05. Then, economic growth in the city of Bandung in 2022 will reach 5.41 percent. In 2023 the target is to reach 5.70 percent. "There are three HDI indicators, namely health, economy and education. I am optimistic about the results of our investment value and inflation conditions this year. In November, inflation in Bandung City was the lowest. This is the result of collaboration between all of us. This is one of the investment opportunity variables, " he said. Apart from that, with the increase in HDI and economic growth, Bambang said, more and more workers in Bandung City could be absorbed. This is a source to support investment in Bandung City. Meanwhile, Head of Bandung City DPMPTSP Ronny Ahmad Nurudin explained that BIS is an annual routine agenda to promote investment in Bandung City. BIS's main focus this year is to create a higher quality and more sustainable urban environment. Realized investment value in 2022 reached IDR 7.79 trillion from the target of IDR 6.65 trillion or 117.14 percent achieved. Meanwhile, in the third quarter of 2023, the realization reached IDR 6.3 trillion from the target of IDR 7.25 trillion or 87.12 percent achieved. Apart from that, DPMPTSP also gave appreciation to a number of foreign and domestic companies and stakeholders who contributed positively to the economy of investment projects in the city of Bandung. His party also gave appreciation to the three sub-districts which have the highest number of business identification numbers (NIB) through the Sakedap service (a platform for facilitating licensing). "In Sundanese it means a moment. So, within 10 minutes the NIB can be issued to MSME players," said Ronny Ahmad Nurudin. He added that the number of NIBs issued through the Sakedap service during 2023 was 1,569. With a total of 33,961 NIBs published from January-November 2023. So, in total since the implementation of the risk-based OSS in 2021, 73,881 NIBs have been issued "This achievement received appreciation from the West Java Provincial Government as the city with the most published NIBs," he said. Apart from that, the city of Bandung also became a corruption-free area (WBK) in 2019. Then, it was upgraded to a clean bureaucracy serving area (WBBM). "Only Bandung City has received this title. We also received an award as the organizer of the MPP in the Excellent category. Even though the Bandung City MPP is only one year old, it was inaugurated on August 23 2023," he said. In the BIS 2023 event, there are six investment categories that received appreciation. This category was won by several companies and stakeholders, including: 1. Foreign investment categories with the greatest level of compliance:- Kereta Cepat Indonesia China- PT Shell Indonesia - PT Mitshubishi Tanabe Farma Indonesia 2. Medium and large business investment categories with the greatest level of compliance:- PT Indisi- PT Mahkota Permata Perdana- PT Medikaloka Arcamanik 3. Small business domestic investment with the greatest level of compliance:- PT Asia Vaporindo Berjaya- PT Indosal Jaya Mandiri- PT Tanjung Cemerlang Shipping (SOURCE)
Dec, 08 2023
Kota Bandung (ANTARA) - The Bandung City Government continues to increase the realization of investment entering the city by providing a number of conveniences in granting business permits for investors, one of which is through the 'Online Single Submission Risk Based Approach' (OSS-RBA) or risk-based licensing. "To make the licensing process easier, we have carried out various innovations, one of which is providing assistance to prospective investors in consulting on complaints or other things related to the licensing process," said Head of the One Stop Investment and Integrated Services Service (DPMPTSP) Ronny Ahmad Nurudin in Bandung. , Tuesday. Ronny explained that risk-based licensing is a business licensing service provided to business actors to start and carry out business activities. "The innovations that we have developed aim to make it easier and provide certainty regarding the speed of time and so on for issuing business permits," he said. He added that his party has also presented two Public Service Malls (MPP) providing various types of services from 26 agencies, so that it can make it easier for the public to process various permits. "We are presenting two MPP buildings with 26 agencies providing various services including OSS RBA, immigration, Samsat, BPOM and many more," he said. Based on DPMPTSP data, the number of Foreign Direct Investment (PMA) from the first quarter to the third quarter of 2023, the number of projects reached 1,078 with an investment value of around IDR 3.3 trillion. Then, Domestic Investment (PMDN) amounted to 8,030 projects with an investment value of around IDR 3 trillion. The total investment value that has been achieved is around IDR 6.3 trillion from the overall target in 2023 of IDR 7.25 trillion. Therefore, he hopes that through the innovation program carried out he can increase the realization of regional investment and the compliance of business actors, especially through Investment Activity Reports (LKPM) which are submitted periodically. "We convey this to encourage entrepreneurs to continue to increase the amount of investment in the city of Bandung in the hope of encouraging economic growth," he said. (SOURCE)
Dec, 06 2023
Kota Bandung (ANTARA) - The City Government (Pemkot) of Bandung, West Java is offering 12 projects with an investment value of up to IDR 6 trillion at the 2023 Bandung Investment Summit (BIS), in order to pursue investment realization in this city. “There are 12 investment projects that we are offering to potential investors. Through this activity, it is hoped that it can increase investment interest in the city of Bandung. "We are optimistic that the investment realization target of IDR 7.25 trillion can be achieved," said Acting Mayor of Bandung, Bambang Tirtoyuliono, in Bandung, Tuesday. Bambang said the city government had issued two special regional regulations, namely Regional Regulation Number 5 of 2022 concerning Spatial Planning and Regional Regulation Number 4 of 2022 concerning the Implementation of Capital Investment to make it easier for investors to carry out activities and invest capital in the city of Bandung. “The Bandung City Regional Spatial Planning Regulation is the most important platform for providing investment certainty. "Approximately around December 2023 or January 2024, detailed plans for regional spatial planning regulations can be immediately established," he also said. He added that the impact of the growth of investment in the city of Bandung has had a huge impact on the Human Development Index (HDI). In 2022, the HDI in Bandung City will reach a value of 82.5. In 2023 the target is 83.05. "There are three HDI indicators, namely health, economy and education. I am optimistic about the results of our investment value and inflation conditions this year," he said again. Based on data from the One Stop Integrated Services and Investment Service (DPMPTSP), the number of foreign investments (PMA) from the first quarter to the third quarter of 2023, the number of projects reached 1,078 with an investment value of around IDR 3.3 trillion. (SOURCE)
Dec, 06 2023
METROPOLITAN.id - No less than IDR 12 Trillion of investment has been entered into Bogor Regency over the past year. This achievement makes Bogor Regency ranked third in West Java for investment realization in 2023. Head of the Bogor Regency Investment and One-Stop Integrated Services Service (DPMPTSP), Irwan Purnawan, said that the investment realization of IDR 12 trillion had exceeded the target set for 2023, namely IDR 9 trillion. "Investment realization could increase. Because the latest data only reaches the third quarter or September 2023. It will be recapitulated again at the end of the fourth quarter," said Irwan Purnawan. Irwan explained that Domestic Investment (PMDN) still dominates in Bogor Regency with an investment value of more than IDR 8.8 trillion. Meanwhile, Foreign Investment (PMA) is around IDR 3.16 trillion. Apart from that, the realization of investment which has exceeded the target was also accompanied by employment in Bogor Regency which reached 23,537 people. Overall, investment realization for both PMA and PMDN in 27 cities/districts throughout West Java based on the Investment Activity Report (LKPM) for the period January - September 2023 is more than IDR 153.2 trillion with a workforce absorption of 192,414 people. "Of this amount, Bogor Regency contributed 7.87 percent to investment realization in West Java," said Irwan. Irwan also said that with the current conditions, it is possible that the amount of investment in the Regency will increase again. Moreover, currently the Bogor Regency Government is revising the Regional Spatial Planning Regulation. (SOURCE)
Nov, 28 2023
Bisnis.com, BANDUNG -- Bank Indonesia West Java explained the causes of weakening economic growth in West Java in the third quarter of 2023. Based on data released by the West Java Central Statistics Agency (BPS), West Java's economy in the third quarter of 2023 grew by 4.57% (yoy). This growth slowed compared to the previous quarter which reached 5.25% (yoy). Head of the West Java Bank Indonesia Representative Office, Erwin Gunawan Hutapea, said that this slowdown was caused by still weak export demand which had an impact on decreasing the performance of the processing industry sector as the main contributor to the West Java economy. Apart from that, the contracting growth in government spending has also become a barrier to higher economic growth. Furthermore, El-Nino, which affects the performance of the agricultural sector, also holds back the acceleration of West Java's economic growth in the third quarter of 2023. From the demand side, the source of West Java's economic growth in the third quarter of 2023 is driven by growth in household consumption of 5.83% (yoy), consumption of Household Non-Profit Institutions (LNPRT) of 21.17% (yoy), as well as investment of 8.40% (yoy). The increase in household consumption is driven by community mobility which remains high, especially in tourism activities and maintained people's purchasing power. This is reinforced by the results of the Bank Indonesia Consumer Survey, namely the Consumer Confidence Index, which remains recorded at an optimistic level of 106.17 in the third quarter of 2023. "Apart from that, the high level of various preparatory activities for the 2024 General Election will also have a positive impact on LNPRT consumption performance in West Java," he said, Tuesday (7/11/2023). Furthermore, investment realization in West Java until the third quarter of 2023 reached IDR 153.2 trillion, which is also the highest nationally. In terms of the business sector, West Java's economic growth is still positive, supported by increased performance in several sectors, including the transportation and warehousing sector (12.44% yoy), the food and drink accommodation provision sector (7.76% yoy), the construction sector (5 .88% yoy) as well as the wholesale and retail trade sector (4.32% yoy). The positive performance of the construction sector is in line with the construction of several government projects (Japek Sisi Selatan II Toll Road and various dams). "Apart from that, the performance of the construction sector is also supported by private projects that are still ongoing to meet year-end targets," he said. On the other hand, increasing community mobility driven by tourism activities has a positive impact on improving the performance of the transportation & warehousing sector as well as the food & drink accommodation provision sector. This is confirmed by the growth in airplane passengers (Husein Sastranegara & Kertajati Airport) which was recorded at 57% (yoy), an increase from the previous quarter (32.5% yoy). Apart from that, West Java's Room Occupancy Rate (TPK) was 42.83% in the third quarter of 2023, higher than the second quarter of 2023 (38.98%). "This also has an impact on retail sales which drives the performance of the wholesale and retail trade sectors in West Java," he explained. He assessed that in 2023, West Java's economy is expected to continue to grow positively in the range of 4.7-5.5% (yoy). "This optimism is supported by strengthening domestic demand, where people's mobility in 2023 will be higher than the previous year, as well as the momentum of the political safari which has started in the third quarter of 2023," he explained. In the future, synergy and collaboration need to continue to be strengthened, especially alignment of work programs with all stakeholders. According to him, various efforts need to continue to be made to increase domestic economic resilience, including through optimizing the realization of regional spending, encouraging investment promotion, encouraging the acceleration and expansion of digitalization. "Also ensuring the wheels of the economy run smoothly through holding various events/exhibitions to support MSMEs, as well as continuing to encourage the optimization of connectivity infrastructure to increase economic equality in West Java," he said. (SOURCE)
Nov, 28 2023
Bandung (ANTARA) - (Acting) Governor of West Java Bey Triadi Machmudin said that the investment licensing process in West Java could be completed in a maximum of 30 minutes, as desired by President Joko Widodo to boost investment in the region. "Yes, it must be possible, there are indeed notes, but we have to get there, the process should ideally take 30 minutes as directed by the president," said Bey in Bandung, West Java, Tuesday. With the shorter investment licensing process which is almost certainly accompanied by cuts to requirements such as environmental impact analysis (AMDAL), Bey said that this procedure will still exist even with a follow-up document system. If one of the procedures does not pass, even if it is a follow-up document, such as an Amdal document, Bey said that his party will revoke the investment permit. "So it could be an amdal, to set up a company, for example the system is established first, later the amdal still has to be included, so the permission is verbal but the amdal still cannot be passed. If the amdal is not passed it will definitely be revoked," he said. Previously, President Joko Widodo reminded regional heads to be able to attract as much investment as possible, one of which is by making it easier to manage permits. For example, the United Arab Emirates (UAE), he said, is able to facilitate permits in just 30 minutes. "Don't leave it for months. The permission is so that ladies and gentlemen know. In the United Arab Emirates, it doesn't take 30 minutes for it to be finished, it's finished. There aren't 30 minutes for it to be finished, it's finished," said President Jokowi when giving directions at the State Palace at the end of October. . The West Java Investment and One-Stop Integrated Services Service (DPMPTSP) itself noted that investment realization in West Java up to the third quarter of 2023 had reached 81.5 percent of the target set by the Indonesian Ministry of Investment/BKPM of IDR 188.03 trillion. Head of West Java DPMPTSP Nining Yulistiani said that during the third quarter of 2023, namely July to September, West Java investment realization reached IDR 49.5 trillion. "The achievement of West Java Investment realization in the third quarter according to what was released yesterday by BKPM on October 20 2023, cumulatively from January to September 2023, reached IDR 153.2 trillion, which means 81.5 percent of the investment target imposed on West Java has been achieved amounting to IDR 188.03 trillion," said Nining in his voice message in Bandung. Nining said that investment realization in the third quarter of 2023 amounted to IDR 153.2 trillion, up to 19.4 percent higher than in 2022 in the same period which reached IDR 128.3 trillion. (SOURCE)
Nov, 28 2023
Jakarta, CNBC Indonesia - PT HM Sampoerna Tbk (HMSP) has strengthened its position as one of the companies with significant investment value and workforce absorption. This is realized by creating long-term and sustainable value for society and business partners. Sampoerna President Director Vassilis Gkatzelis said that the company, which has been operating for 110 years in Indonesia, continues to adhere to Sustainability Principles which are in line with the Environmental, Social and Governance (ESG) concept. "This framework is integrated into every aspect of our business and activities through the 'Sampoerna for Indonesia' umbrella program to ensure our role in implementing programs that have a real impact on the economy, environmental conservation and society at large," he said in a written statement, Wednesday (22/11/2023). As a company with an investment value of more than US$6.3 billion since 2005, Sampoerna realized additional investment in early 2023 with a new production facility for innovative smoke-free tobacco products in Karawang, West Java with a focus on exports to the Asia Pacific Region and the domestic market. Sampoerna then introduced the latest science and technology-based innovation for smoke-free tobacco products, namely IQOS ILUMA. In the third quarter of 2023, along with its new production facilities, Sampoerna also completed the construction of a world-class Testing and Analysis Laboratory with state-of-the-art facilities, especially for innovative smoke-free tobacco products. "These achievements are an important step in providing smoke-free products developed based on science and technology. Although not risk-free, these smoke-free tobacco products are a better alternative for adult smokers who decide to continue smoking," said Vassilis. The realization of this investment is Sampoerna's effort to support the government's priorities in encouraging investment, increasing exports of high-value finished goods, and industrial downstreaming. "Sampoerna's long-term investment is proof of our confidence in the certainty of the investment and business climate in Indonesia. Sampoerna is realizing its commitment to creating added economic value and social impact by increasing research capacity, developing smoke-free products based on science, absorbing workers with high skills, purchasing supplies local tobacco, empowering MSMEs, operating digital service centers, and increasing export performance," said Vassilis. Dynamics of the National Tobacco Products Industry Furthermore, Sampoerna is trying to maintain its competitive position and overcome pressure in the tobacco industry as a result of the increase in excise rates which is far above inflation, the widening gap in excise rates between Group 1 and the Group segments below which have lower excise rates, as well as the increase in cigarette circulation. illegal. Overall, in the period January to September 2023, cigarette industry volume fell by 5.0% compared to the same period last year. Meanwhile, the Hand-rolled Kretek Cigarette (SKT) segment is starting to show signs of recovery with an improvement in market share, which as of the third quarter of 2023 reached around 27%. "Improvements in SKT's performance have begun to be seen in the last few years after this segment experienced a continuous decline in market share, namely from 37% in 2006 to 17% in 2019," he said. The recovery of the SKT segment is driven by the Government's policy for excise on tobacco products, especially since 2021, which takes into account aspects of labor absorption in the SKT segment. Absorption of Tens of Thousands of New Workers In line with the recovery trend of the SKT segment, Sampoerna as an SKT producer with the Dji Sam Soe and Sampoerna Kretek trademarks, announced plans to absorb tens of thousands of new workers spread across the provinces of East Java, Central Java, Yogyakarta Special Region and West Java for SKT production facilities. . This absorption of labor directly opens up new jobs while creating a multiplier effect for the local community. Vassilis explained that the realization of this plan began with the opening of SKT Sampoerna's new production facilities in Blitar City, East Java, and Tegal Regency, Central Java, which are scheduled to operate in Semester I 2024. Currently, location selection and preparation processes are being carried out in both areas, including employee recruitment plan. "As a company that has been operating for 110 years in Indonesia, the addition of Sampoerna's SKT production facilities through an investment of IDR 638 billion (around US$42 million) will strengthen Sampoerna's SKT portfolio which started in 1913. With the opening of SKT production facilities and the addition of new workers, we "I am optimistic that Sampoerna's steps will increase employment opportunities in the formal sector for local communities while creating a multiplier effect for economic growth and becoming one of the drivers of growth in these regions," he said. "We appreciate the Government's efforts to maintain a conducive and predictable business and investment climate in Indonesia, including policies that encourage the performance of the SKT labor-intensive sector. These efforts have a direct positive impact on job creation in the formal sector and regional economic turnaround which in turn helps improve the economy national," continued Vassilis. He also explained that Sampoerna had reported this plan to the regional head and local related agencies. He hopes that regional and central government support will continue in the form of policies that support the SKT labor-intensive industrial sector. "We express our gratitude for the positive response and support from the local government for our plans to increase workforce absorption in Blitar City and Tegal Regency," Vassilis added. Currently, Sampoerna operates 4 SKT production facilities in Surabaya, Malang and Probolinggo; 2 machine-made cigarette production facilities in Pasuruan and Karawang; as well as 1 innovative smoke-free tobacco product production facility in Karawang. Apart from that, Sampoerna partners with 38 Cigarette Production Partners (MPS) spread across 28 districts/cities on the island of Java. MPS is owned and operated by regional entrepreneurs and/or local cooperatives to produce SKT Sampoerna brands. Sampoerna's total workforce currently reaches more than 76,000 people, directly and indirectly, of which around 90% are workers at SKT production facilities. Apart from the opening of SKT production facilities, he said, there will be additional employment of tens of thousands of new workers carried out by MPS in the provinces of East Java, Central Java, DI Yogyakarta and West Java, as well as the addition of 5 new MPS which will be located in East Java and Java. Middle in Semester I-2024. "In 2024, our partners in producing SKT Sampoerna will be 43 MPS spread across the island of Java. The addition of Sampoerna and MPS production facilities will increase partnerships with regional entrepreneurs/local cooperatives, total employment, as well as increase the absorption of tobacco and clove raw materials "from Indonesian farmers. As is known, using raw materials for handmade cigarettes requires twice as much tobacco and cloves as machine-made cigarettes," explained Vassilis. Vassilis said that Sampoerna consistently supports the welfare of SKT employees. Where currently SKT employees are dominated by women, the majority of whom carry out dual roles as the backbone of the family. "We are proud of the value creation carried out by Sampoerna for 110 years," said Vassilis. He also explained that the continuity of the national tobacco industry depends on a predictable framework. Includes excise policies, tobacco product regulations, and other policies that play a role in encouraging science-based innovation and technology to offer alternative tobacco products for adult smokers. This will have a direct impact on producers, employment, use of tobacco and clove raw materials, and the entire value chain thereby creating economic value at regional and national levels "We hope that the addition of tens of thousands of employees through the opening of the Sampoerna factory in Blitar City and Tegal Regency, the addition of 5 new MPS, as well as the addition of employees to the existing MPS will increase labor absorption in the formal sector and contribute to the regional and national economy. This is "one form of Sampoerna's commitment to the broader value chain ecosystem," said Vassilis. (SOURCE)
Nov, 27 2023
Warta Ekonomi, Bandung - Acting (Pj) Governor of West Java, Bey Machmudin, has stipulated Governor Decree No. 561/Kep/768-Kesra/2023 concerning the Minimum Wage for West Java Province in 2024. Responding to the issuance of the Governor's Decree, APINDO West Java appreciated the Acting Governor of West Java for adhering to legal certainty, namely PP No. 51 of 2023 concerning Wages in determining the amount of the West Java Provincial Minimum Wage (UMP) for 2024. With regard to workers' wishes regarding demonstrations or work strikes, West Java APINDO considers this to be workers' rights and is guaranteed by Law no. 13 of 2003 concerning Employment. "However, it would be better to prioritize social dialogue and deliberation to reach a consensus, both bipartitely between employers and workers and tripartitely between employers, government and workers, so that there is no longer a need to lose productivity due to work strikes or demonstrations," explained Chairman of West Java APINDO, Ning Wahyu Astutik, to journalists in Bandung, Tuesday (21/11/2023) evening. Ning revealed that it is known that currently West Java is intensively carrying out promotions to attract investment, such as in the REBANA area. "Of course we hope that the investment climate will remain well maintained," he stressed. When asked about Labor's statement that before 2015 wage increases could reach 2 digits, he said that the types of investment then and now are different. In the past, there were still many labor-intensive investments that could absorb a lot of labor. Meanwhile, investment is now increasing in value, but it is dominated by capital-intensive ones and prioritization of automation, so that workers who lose jobs in labor-intensive ones and do not have adequate qualifications in capital-intensive ones will find it difficult to get work. Ning reiterated that currently, West Java still needs labor-intensive investment. And with West Java dominated by capital-intensive investment, many factories have closed and many factories have relocated to other provinces. "So PP No. 51 of 2023 is the best for now. So with this legal certainty it is hoped that it can trigger an increase in investment in West Java, especially labor-intensive investment, because we know that of the total national unemployment, West Java contributes 25%, " he explained. After the West Java Governor's Decree regarding the determination of the 2024 UMP, there will then be a discussion about the Regency/City Minimum Wage (UMK). APINDO West Java really hopes that the discussion on UMK can run smoothly and in accordance with applicable regulations, namely PP No. 51 of 2023, and remembering that this is a political year. "I also hope that all parties do not politicize this wage determination process,". (SOURCE)
Nov, 27 2023
Bandung - A total of 36 provinces in Indonesia have announced the 2024 Provincial Minimum Wage (UMP). Determination of the minimum wage refers to Government Regulation (PP) Number 51 of 2023 concerning Wages. From these calculations, there are a number of regions with relatively low percentage increases in the UMP. West Java is even included in the 10 provinces with the lowest UMP increases in Indonesia. West Java's UMP for 2024 was previously set to increase by 3.57% to IDR 2,057,495. This amount is an increase of around Rp. 70,825 from the 2023 UMP which is Rp. 1,986,670. The low size of West Java's UMP is inversely proportional to the large investment value entering Tanah Pasundan. In the last five years, investment realization both domestic and overseas in West Java reached IDR 685.35 trillion. This makes West Java known as the province with the highest investment achievements in Indonesia. In detail, in 2018 IDR 116.96 trillion, in 2019 IDR 116.96 trillion, in 2020 IDR 120.43 trillion. Then in 2021 IDR 136.14 trillion and in 2022 IDR 174.6 trillion. Investment in West Java is even claimed to be increasingly successful in 2023. As of last August, investment realization in West Java had reached IDR 103.6 trillion or more than half of the planned investment target of IDR 188 trillion. Responding to this, UIN Sunan Gunung Djati Bandung economic observer Setia Mulyawan said, looking at the UMP calculation formula with reference to PP 51, the problem with West Java's low UMP is that economic growth has not been strong. "If inflation is high, economic growth is high, the multiplication factor is high, it means that the UMP is definitely high. If the situation is like that in West Java, it means that economic growth is not causing the UMP to increase according to expectations," said Setia when contacted, Friday (24/11/2023). "So the important agenda to be driven in West Java is growth, economic growth," he added. Setia also revealed that the low minimum wage is behind the large investment value in West Java, indicating that the presence of investors has not been able to significantly boost the rate of economic growth. "So far, the claim is that investment is the highest in Indonesia, but this means that the high investment figures have not been boosted, have not become a boosting factor in economic growth. I think that's where the problem lies," said Setia. Even so, he said, it is possible that the effects of investment coming into West Java have not been felt directly. Therefore, a process is needed so that investment can have a direct impact on economic growth in West Java. "Investment doesn't happen immediately when there is investment in West Java, then the growth immediately increases, because it requires a process, what sector the investment is in. There is an initial period of investment, the real sector hasn't moved yet, so it hasn't moved significantly. "It can directly boost economic growth," he stressed. In order for the minimum wage in West Java to increase significantly, Setia said the government must continue to boost the rate of economic growth coupled with maintaining the inflation rate so that people's purchasing power remains high. "The big homework is how this economic growth can grow significantly so that people's purchasing power increases. If it is linked to the UMP, that will be a multiplying factor in determining the provincial minimum wage to be large too," he said. High Investment Due to Low Wages Furthermore, Setia said, the high value of investment entering West Java could be due to the still low minimum wage. Because according to him, the wage burden that must be paid by the company is an important component of an investment. "If the UMP is too high, then people's interest in investing in West Java could also decrease because the workload means it is high, it becomes unattractive because for companies it becomes a cost component, so to speak, a cost component," he explained. "So, with a figure like that, I believe that it is a moderate figure that is a win-win solution, which for entrepreneurs is not too burdensome, but also for workers there is a balancing of purchasing power, because their income is undermined by inflation," he continued. Setia still said, the minimum wage is a main consideration for investors. Moreover, the industry presented is labor intensive and requires a large number of workers. Therefore, the possibility of high investment in West Java because wages are still low could be considered the right thing. "Especially those that are labor intensive, if it is a labor intensive company that employs a lot of people, the UMP will be a main consideration. Because of the large UMP, if there are a large number of employees, the company will certainly not work efficiently," concluded Setia. (SOURCE)
Nov, 27 2023
CIKARANG PUSAT - The Bekasi Regency Government through the One Stop Integrated Services and Investment Service (DPMPTSP) released data on investment realization for Bekasi Regency per quarter III from January - September 2023. From this data, Bekasi Regency still received the title as the region with the highest investment realization in West Java Province, namely worth more than IDR 41.5 trillion. Or to be precise IDR 41,586,299,607,234. Meanwhile, in second place are Karawang Regency and Bogor Regency. Head of the One Stop Integrated Services and Investment Service (PMPTSP) Suhup stated that Bekasi Regency is still the champion at the provincial level in terms of investment realization. Suhup is optimistic that the target given by the West Java Provincial Government in realizing investment in Bekasi Regency of IDR 50 trillion in 2023 can be realized. "To get to the third quarter, we have reached IDR 41.5 trillion. This is extraordinary. In West Java we are still champions. Still far from other cities which are in positions 2 and 3," said Suhup in his office on Tuesday (31 /10/2023). He said that his optimism was not without reason, but because he saw that the investment climate in Bekasi Regency was very good, which encouraged investors to invest in the Bekasi Regency area. Apart from that, efforts to record investment coming into Bekasi Regency are also continuously carried out by companies. "In 2023, Bekasi Regency is targeting approximately IDR 50 trillion. Now the data released by BKPM has been released for the 3rd quarter. According to the target from this province, hopefully by the end of 2023 it can be achieved and we are optimistic, because to this day, investors are interested in come and invest still large capital," he said. According to him, DPMPTSP always urges these investors to continuously report on investments made in Bekasi Regency so that investment realization data collection continues to be updated. He also explained that the highest investment realization for foreign capital was occupied by Japanese investors. "So, Japan has the largest foreign capital. That's almost IDR 10.2 trillion. Second, Singapore is almost IDR 4.7 trillion. Then China is almost IDR 3.9 trillion, then South Korea is almost IDR 2.2 trillion," he said. Responding to the high realization of investment in Bekasi Regency, Suhup hopes that this will be accompanied by more optimal absorption of local labor. However, residents of Bekasi Regency must be able to compete to have skill standards determined independently by existing companies. "That's why we hope that the high realization of this investment will absorb local workers, but companies already have qualification standards to accept workers, this is something we must strive for together," he concluded. From the data released regarding this realization achievement, it is calculated from Foreign Direct Investment (PMA) and Domestic Investment (PMDN) up to the third quarter from January - September 2023. In detail, PMA investment is IDR 27.1 trillion while PMDN is IDR 14.4 trillion. Meanwhile, the highest business sector is occupied by housing, industrial areas and offices, valued at IDR 6.9 trillion, then the motor vehicle industry and other means of transportation sector at IDR 6.5 trillion. In third place is the Metal, Machinery and Electronics Industry sector with IDR 5.4 trillion. Of these three sectors, the first sector absorbs 9,144 workers, the second, 4,302 workers and the third sector 3,409 workers. Then, if we calculate the labor absorption in West Java Province, Bekasi Regency has absorbed around 37,175 workers, while below it is Karawang Regency with 26,125 workers, and Bogor Regency with 23,547 workers. From PMA it absorbs 21,730 workers, and from PMDN it absorbs 15,445 workers. (SOURCE)
Nov, 27 2023
PORTALJABAR, BANDUNG CITY - In an effort to invite investment and business from various sectors to the Rebana area, the Regional Government of West Java Province has assigned the Rebana Metropolitan Area Management Agency to organize the Rebana Expo 2023. The Rebana Metropolitan Area Management Agency is the main facilitator and hub for partnerships between domestic and global markets, opening doors for interested investors and developers. Rebana Expo will take place on November 9-10 2023, consisting of a half-day conference session, dinner event, and field trip. "This event is a business meeting which aims to present the latest developments and vision for the development of the Rebana area," said Head of BP Rebana Bernardus Djonoputro in Bandung City, Monday (23/10/2023). Djonoputro said that the event would invite investors, business actors, area developers, as well as parties networked in Friends of Rebana to participate in shaping the future of the Rebana area. Through Rebana Expo 2023, the West Java Provincial Government is also opening the door to innovative ideas and partnership opportunities that will advance and benefit the Rebana region and West Java as a whole. "At this moment, we will also provide updates on the latest projects in the Rebana area to business actors and investors," said Djonoputro. Apart from that, Rebana Expo also provides the latest information regarding regulations and regulatory support for business people in the Rebana area. This event is also an opportunity for individuals and companies to be involved in promising growth, contributing to the formation of West Java's economic future and making the Rebana area a major investment destination. New economic growth center Djonoputro added that the Rebana area (Cirebon—Kertajati—Patimban) is now entering a new chapter in its journey as a center of promising economic growth for West Java. Presidential Regulation Number 87 of 2021 has provided a strong mandate to accelerate the development of the Rebana and southern West Java areas. The development of the Rebana Metropolitan Area is also included in the National Strategic Project (PSN) and the planning of 13 new industrial-based cities spread across seven districts/cities in West Java, including Cirebon City, Cirebon Regency, Subang Regency, Sumedang Regency, Majalengka Regency, Indramayu Regency, and Kuningan Regency. This is a concrete step in realizing the Rebana Area as a new center of economic growth that will support cities that are higher quality, livable and integrated with world-class infrastructure. (SOURCE)
Nov, 20 2023
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