Indonesia Economy and Industry

[Indos]

Some of Indonesian local manufacturing companies

 

[Indos]

Infographic: China Is the World's Manufacturing Superpower

This chart shows the top 10 countries by share of global manufacturing output in 2019.

www.statista.com

Infographic: The World's Most Competitive Economies

This chart shows the results of the 2024 IMD World Competitiveness Ranking.

www.statista.com

Indonesia - IMD business school for management and leadership courses

www.imd.org

WCR-Rankings - IMD business school for management and leadership courses

www.imd.org

APAC: minimum monthly wages by country 2022 | Statista

As of April 2022, the monthly minimum wage in Australia amounted to approximately 3.47 thousand U.S.

www.statista.com

 

[Indos]

Indonesia has mixed economy with large State owned enterprises. Based on 2021 data, Indonesian SOE asset is about half Indonesian total GDP (2021).

 

[Indos]

60.7 % of Indonesian GDP is generated by its medium, small, and micro enterprises/businesses.

Women play important role in family, state economy: Ministry

Women play a crucial role in ensuring the resilience of the nation’s families and the country's economy, the Cooperatives and SMEs Ministry ...

en.antaranews.com

Want To Start Your Own Micro Business?

How to change your life. Take more control. Develop your perfect work/life balance by starting your own micro business today!

www.forbes.com

Asia: the Power of Connections and their Consequences

In our recent book, “The Connections World: The Future of Asia”, published by Cambridge University Press in October 2022, we argue that mutually beneficial links between dynastic business houses and political elites have been important drivers behind Asia’s extraordinary renaissance. Yet, these...

www.ipsnews.net

 

[Indos]

PLN spent Rp200 trillion (12.7 Billion USD) on local components in 2022​

November 23, 2022 20:11 GMT+700

Jakarta (ANTARA) - State-owned electricity firm (PLN) spent nearly Rp200 trillion out of the total budget of Rp300 trillion on local products so far this year, PLN President Director Darmawan Prasodjo stated.

"Our spending reaches Rp300 trillion per year out of which Rp200 trillion is spent on the domestic industry," he noted while opening PLN Locomation 2022 at the Jakarta Convention Center (JCC) on Wednesday.

PLN spent Rp200 trillion on local components in 2022

State-owned electricity firm (PLN) spent nearly Rp200 trillion out of the total budget of Rp300 trillion on local products so far this year, PLN President ...

en.antaranews.com

 

[Indos]

End 2 End EV Battery Supply Chain

 

[Indos]

Indonesian state owned universities and INKA, state owned train manufacturer, are developing high speed train, this year the prototype is expected to be completed. It will use hybrid propulsion, battery and electric diesel.

 

[Indos]

Greater Jakarta LRT system.

First phase : 42 kilometer
System : Driverless
Builder : SOE consortium (Adhi Karya/Builder, INKA/Train, LEN Industry/Electronics)









PT LEN Industry Signaling System in Greater Jakarta LRT

LRT Has Served at Least 4.5 Million Passangers as of Jan. 2024​

 

[Indos]

 

[Indos]

Vale Indonesia Signs Rp 4.2 Trillion Divestment to MIND ID​

Muawwan Daelami

February 27, 2024 | 10:09 am

Jakarta. Nickel miner Vale Indonesia (INCO) signed an agreement to divest 14 percent of its shares, valued at Rp 4.2 trillion ($268 million), to a consortium of state-owned mining companies Mineral Industri Indonesia (MIND ID) on Monday.

The definitive agreement was formally signed by Vale's shareholders: Parent company Vale Canada Limited (VCL), MIND ID, and Sumitomo Metal Mining Co Ltd (SMM).

Under the terms of the agreement, Vale Canada and Sumitomo Metal Mining will divest 14 percent of Vale Indonesia's shares, equivalent to 1.39 billion shares, through a rights issue on the Indonesia Stock Exchange (IDX) at Rp 3,050 per share, transferring ownership to MIND ID.

This divestment is a crucial step for Vale to secure an extension of its mining permit in Indonesia, which will expire in December 2025. Under the prevailing laws and regulations, Vale Indonesia has to achieve 51 percent Indonesian ownership by December 2025 as part of the extension of its long-term operating license.

Previously, MIND ID held a 20 percent stake in Vale Indonesia, while Vale Canada and Sumitomo Metal Mining held 43.79 percent and 15.03 percent, respectively.

Following the completion of the divestment, MIND ID will become the majority shareholder, holding 34 percent of INCO shares. Meanwhile, Vale Canada and Sumitomo Metal Mining will each retain 33.9 percent and 11.5 percent. The remaining 20.6 percent will be publicly owned.

Upon the closure of the transaction, expected before the end of 2024, Vale Canada is set to receive a cash sum of $160 million.

"This Agreement signals the commitment made by Vale Base Metals to PT Vale, the Indonesian people, and to our stakeholders to unlock value from our assets. Our focus will now turn to realizing the future potential of PT Vale's growth investments across Sulawesi," Mark Cutifani, Chair of Vale Base Metals (VBM), expressed in an official statement.

As a shareholder in MIND ID, the Ministry of State-Owned Enterprises will actively encourage the industrialization of nickel sourced from Vale Indonesia in three mining locations to bolster the electric vehicle battery ecosystem. These locations encompass Bahodopi, Pomalaa, and Tanamalia in South Sulawesi.

It has been reported that MIND ID is actively seeking $2 billion in loans to facilitate the acquisition of Vale stakes and to refinance existing debts.

Vale Indonesia Signs Rp 4.2 Trillion Divestment to MIND ID

Vale Indonesia (INCO) concluded a 14 percent divestment, valued at Rp 4.2 trillion ($268 million), to MIND ID.

jakartaglobe.id

 

[Indos]

Pertamina to intensify exploration in Indonesia's east amid higher oil, gas output targets​

By Danial Azhar


KUALA LUMPUR, Feb 28 (Reuters) - Indonesia's state energy company Pertamina wants to intensify its exploration efforts in the country's eastern regions, a senior official said on Wednesday, as it targets higher oil and gas output in the coming years.

The firm will also seek mergers and acquisitions in Africa, the Middle East, and Southeast Asia, Senior Vice President of Strategy and Investment Henricus Herwin said at a conference in Kuala Lumpur.

On Tuesday, Pertamina Chief Executive Officer Chalid Said Salim said upstream unit Pertamina Hulu Energi (PHE) aims to raise its oil production to 627,000 barrels per day.


This would be up from 566,000 bpd in 2023.


Henricus reiterated Pertamina needs to produce more oil and gas "from an energy independence perspective".

"We also try to intensify our exploration efforts, especially in the east of Indonesia, which is considered immature frontier ... and also do mergers and acquisitions to grow our footprint."

He added the company would also focus on biofuels, petrochemicals, geothermal energy and carbon capture and storage in the years ahead.

The state oil and gas explorer is also targeting natural gas output of 2.769 million standard cubic feet per day (mmscfd) in 2024, Chalid told Reuters on the sidelines of an industry conference, similar to 2.766 mmscfd in 2023.

Pertamina Hulu hopes to build on the momentum and raise its total oil and gas output by another 4%-5% in 2025, Chalid said.

(Reporting by Emily Chow, Danial Azhar; Writing by Florence Tan, Kanupriya Kapoor; Editing by Himani Sarkar, Martin Petty)

https://www.nasdaq.com/articles/pertamina-to-intensify-exploration-in-indonesias-east-amid-higher-oil-gas-output-targets

 

[Indos]

Indonesia’s presumed president Prabowo vows smooth transition, pushes privatisation​

Updated

Mar 05, 2024, 06:44 PM

JAKARTA - Indonesia’s presumed president Prabowo Subianto on March 5 promised a “very smooth” transfer of power later in 2024 and opened the door to privatising state-run firms while maintaining government control of key economic sectors.

Speaking at an investment forum, Mr Prabowo, who unofficial vote counts show won the Feb 14 presidential election by a huge margin, also said he believed economic growth could reach 8 per cent annually within the next four or five years.

He said that while the state could continue to regulate and maintain decision-making in strategic areas in South-east Asia’s biggest economy, the private sector should be allowed to thrive and take the leading role.

“Maybe we have to really have a programme of rationalising and privatising many of the state-owned enterprises. The state can regulate, the state can (provide) oversight, the state must also have strategic decision-making in the strategic sectors,” he said.


“I don’t see for instance why we need to be present in every sector of the economy... now we must allow private sectors to be more and more dominant.”


State companies in sectors such as banking, telecommunication, construction and mining currently play a dominant role in Indonesia’s economy.

Mr Prabowo, 72, pledged to continue the policies of incumbent Joko Widodo, who has overseen a big push to modernise infrastructure, and said he aimed to significantly improve tax ratios by widening the tax base, not necessarily by raising taxes.

He said his government could widen the fiscal gap to up to 2.8 per cent of gross domestic product (GDP), from under 2 per cent in 2023, and would still comply with the mandatory deficit ceiling of 3 per cent of GDP.


Investors have been closely watching Mr Prabowo’s fiscal plans, after previous comments on potentially upping Indonesia’s debt-to-GDP ratio raised alarms. Rating agencies warn his signature promise of free school lunches could be costly.


Mr Prabowo pledged to maintain Indonesia’s track record of fiscal prudence, but repeated that he thought there was space to increase public spending and debt, with their ratios relative to GDP being lower than other countries.


He also said Indonesia would strive for food self-sufficiency, which he was optimistic could be achieved quickly, leading to the nation exporting food within four years.


He said Indonesia was open for investment and that his government would ensure protection for foreign and domestic investors.

Democracy ‘very, very tiring’​

In a wide-ranging speech that lasted nearly an hour, Mr Prabowo said Indonesia should be proud of February 2024’s election, though he said he was not satisfied with his country’s democracy, without elaborating.


“Let me attest, testify that democracy is really very, very tiring. Democracy is very, very messy, democracy is very, very costly,” he said. “There is a lot of room for improvement.”


Mr Prabowo, who is currently defence minister, looks to have easily won his third attempt at the presidency, buoyed by the tacit and controversial support of the hugely popular Jokowi, as the President is known, and the inclusion of the incumbent’s son on his ticket as running mate.


Mr Widodo, who has been in power a decade, has been widely criticised for unfairly favouring Mr Prabowo as a means of preserving his legacy, and exerting influence over institutions to influence the election outcome, which his allies reject.

The official election result is expected by March 20 and, if confirmed winner, Mr Prabowo will take office in October. REUTERS

Indonesia’s presumed president Prabowo vows smooth transition, pushes privatisation

He said he believed economic growth could reach 8% annually within the next four or five years. Read more at straitstimes.com.

www.straitstimes.com

 

[Indos]

Indonesia’s presumed president Prabowo vows smooth transition, pushes privatisation​

View attachment 23727

Updated

Mar 05, 2024, 06:44 PM

JAKARTA - Indonesia’s presumed president Prabowo Subianto on March 5 promised a “very smooth” transfer of power later in 2024 and opened the door to privatising state-run firms while maintaining government control of key economic sectors.

Speaking at an investment forum, Mr Prabowo, who unofficial vote counts show won the Feb 14 presidential election by a huge margin, also said he believed economic growth could reach 8 per cent annually within the next four or five years.

He said that while the state could continue to regulate and maintain decision-making in strategic areas in South-east Asia’s biggest economy, the private sector should be allowed to thrive and take the leading role.

“Maybe we have to really have a programme of rationalising and privatising many of the state-owned enterprises. The state can regulate, the state can (provide) oversight, the state must also have strategic decision-making in the strategic sectors,” he said.


“I don’t see for instance why we need to be present in every sector of the economy... now we must allow private sectors to be more and more dominant.”


State companies in sectors such as banking, telecommunication, construction and mining currently play a dominant role in Indonesia’s economy.

Mr Prabowo, 72, pledged to continue the policies of incumbent Joko Widodo, who has overseen a big push to modernise infrastructure, and said he aimed to significantly improve tax ratios by widening the tax base, not necessarily by raising taxes.

He said his government could widen the fiscal gap to up to 2.8 per cent of gross domestic product (GDP), from under 2 per cent in 2023, and would still comply with the mandatory deficit ceiling of 3 per cent of GDP.


Investors have been closely watching Mr Prabowo’s fiscal plans, after previous comments on potentially upping Indonesia’s debt-to-GDP ratio raised alarms. Rating agencies warn his signature promise of free school lunches could be costly.


Mr Prabowo pledged to maintain Indonesia’s track record of fiscal prudence, but repeated that he thought there was space to increase public spending and debt, with their ratios relative to GDP being lower than other countries.


He also said Indonesia would strive for food self-sufficiency, which he was optimistic could be achieved quickly, leading to the nation exporting food within four years.


He said Indonesia was open for investment and that his government would ensure protection for foreign and domestic investors.

Democracy ‘very, very tiring’​

In a wide-ranging speech that lasted nearly an hour, Mr Prabowo said Indonesia should be proud of February 2024’s election, though he said he was not satisfied with his country’s democracy, without elaborating.


“Let me attest, testify that democracy is really very, very tiring. Democracy is very, very messy, democracy is very, very costly,” he said. “There is a lot of room for improvement.”


Mr Prabowo, who is currently defence minister, looks to have easily won his third attempt at the presidency, buoyed by the tacit and controversial support of the hugely popular Jokowi, as the President is known, and the inclusion of the incumbent’s son on his ticket as running mate.


Mr Widodo, who has been in power a decade, has been widely criticised for unfairly favouring Mr Prabowo as a means of preserving his legacy, and exerting influence over institutions to influence the election outcome, which his allies reject.

The official election result is expected by March 20 and, if confirmed winner, Mr Prabowo will take office in October. REUTERS

Indonesia’s presumed president Prabowo vows smooth transition, pushes privatisation

He said he believed economic growth could reach 8% annually within the next four or five years. Read more at straitstimes.com.

www.straitstimes.com

Foreign journalist interpretation is too wild. What Prabowo wants is to think about privatizing state owned companies operated in not too important sector like Hotels industry. Prabowo who is also an entreprenuer see SOE is too dominant in Indonesia economy, but he is not suggesting of privatization of big SOE's. Megawati lost election when he decided to sell government majority stakes in Astra International, BCA, and Indosat during 2002-2004. He understand about the risk to do it.

Indonesian is not like Western liberal society. For information, the sell of government majority stakes in BCA (Bank), Astra International ( parent company of Astra Autopart), Indosat (Telecommunication) are pushed by IMF. This is why under SBY administration, we paid all of our debt to IMF to make that foreign controlled institution powerless in our economic policy management.

Some thing Prabowo would likely do is to privatise not important SOE like hotels that he mentioned specifically. He also would likely want to include more private sector to infrastructure development.

Some thing that I hope Prabowo will do is to support R80 program that is initiated by PT Ragio Aviasi belonging to Ilham Habibie and Errie Firmansyah. Ilham wants the JV program between his company and Indonesian Aerospace.

If Prabowo wants to see private sector in aerospace industry, he should support R80 program. This program also is very popular politically. Unlike Jokowi, Prabowo has more understanding on the important of R&D program as shown by the promise to increase R&D spending into 2 % of GDP.

 

[Indos]

Sri Mulyani is expected not to become Indonesia Finance Minister during new administration under Prabowo.

Sri Mulyani Siapkan Warisan Penting ke Menkeu Prabowo, Ini Dia!

Sri Mulyani memastikan akan mewarisi anggaran pendapatan dan belanja negara (APBN) yang sehat bagi menteri keuangan pemerintahan pemenang Pilpres 2024.

www.cnbcindonesia.com

Expected Indonesia Finance Minister under Prabowo Administration is Chatib Basri.

Personally I endorsed Fauzi Ichsan

 

[Indos]

Exxon Mobil to Build $15b Green Petrochemical Refinery in Indonesia​

Jayanty Nada Shofa
November 17, 2023 | 10:02 am

President Joko "Jokowi" Widodo meets Exxon Mobil Corporation chairman Darren Woods in San Francisco on Nov. 13, 2023. (Photo Courtesy of Presidential Press Bureau)


Jakarta. American oil and gas giant Exxon Mobil is planning to invest up to $15 billion in Indonesia for a green petrochemical refinery and carbon capture storage (CCS) facility, according to President Joko “Jokowi” Widodo.

Jokowi earlier this week met Exxon Mobil Corporation chairman Darren Woods in San Francisco. The planned projects -- which are expected to slash Indonesia’s carbon emissions -- were high up on the agenda during the meeting.

“I appreciate the cooperation plan to build a green petrochemical refinery and a CCS facility. The projects are worth up to $15 billion,” Jokowi was quoted as saying in a recent press statement.

“I’m pleased to hear that the CCS facility will be the largest in Southeast Asia. Exxon’s petrochemical complex is also expected to be one of the most advanced in the world,” Jokowi said.

Jokowi also asked Exxon Mobil to take part in building Indonesia's renewable energy and green infrastructure in Indonesia, including its new capital Nusantara. Earlier this month, Jokowi said that the project had attracted 320 letters of intent from both domestic and foreign investors so far.

According to government estimates, it takes approximately $33 billion to build Nusantara from scratch. However, Indonesia will rely on public-private partnerships to cover 80 percent of the costs, while the remaining 20 percent will come from the state budget, according to Jokowi.

Government data shows the US became the fifth largest foreign investor in Indonesia in the first nine months of 2023. American investment in Indonesia totaled $2.4 billion over the said period, just behind Japan (around $3.3 billion).

Exxon Mobil to Build $15b Green Petrochemical Refinery in Indonesia

Exxon Mobil is planning to invest up to $15 billion in Indonesia for a green petrochemical refinery and carbon capture storage.

jakartaglobe.id