Microsoft and Apple Seeks Further Investment Opportunities in Indonesia
Microsoft CEO Satya Nadella and Apple CEO Tim Cook are slated to visit Indonesia next month to explore investment opportunities in areas such as human resources, digital talent and infrastructure, according to Vice Minister of the Ministry of Communication and Information Technology (Kominfo) Nezar Patria. He said the government fully welcomes both companies to expand their operations in Indonesia, while strengthening the country’s own capabilities.
Communications minister Budi Arie Setiadi said Tim Cook wil visit Indonesia on April 20, to inspect the Apple Academy in Tangerang. Cook will also inaugurate a new Apple Academy in Bali. Meanwhile Satya Nadella is set to visit Indonesia on April 17, to continue collaboration efforts with the ministry, focusing on technology and knowledge transfer to support Indonesia’s digital transformation.
Related Links
- https://katadata.co.id/digital/teknologi/65fd8b4da81df/apple-dan-microsoft-akan-investasi-di-indonesia-2-bidang-ini-dilirik
- https://www.tribunnews.com/bisnis/2024/03/23/apple-dan-microsoft-ingin-ketemu-jokowi-wamenkominfo-ri-buka-tangan-yang-lebar-untuk-investasi
- https://www.cnbcindonesia.com/tech/20240325070216-37-524993/alasan-ceo-apple-susul-bos-microsoft-datang-ke-ri-mau-ketemu-jokowi
Global Investors Divest $1b from Indonesian Bonds
International investors have withdrawn $1.46 billion from Indonesian bonds following the conclusion of the 2024 Presidential Election on Feb 14, according to a recent Bloomberg report.
Concerns have been widespread among investors regarding the fiscal policy of the incoming administration, particularly President-elect Prabowo Subianto's proposed free lunch program. Goldman Sachs Strategist Danny Suwanapruti said that without specifying costs, the program could potentially strain the budget.
Ministry of Finance data indicates a gradual decline in tradable local currency bond ownership by non-residents (excluding central banks and foreign governments). Ownership decreased from Rp 841.37 trillion on Feb 25 to Rp 837.1 trillion on March 1, and further dropped to Rp 818.42 trillion by March 20, marking a total decrease of Rp 22.95 trillion ($1.46 billion).
The free lunch program is estimated to initially cost at least Rp 100 trillion ($6.4 billion) and is projected to rise to Rp 460 trillion ($29.1 billion) annually by 2029, equivalent to 2 percent of Indonesia's GDP. Prabowo repeatedly promised to maintain fiscal discipline during his presidential campaign and said there is room to expand the state budget deficit to stimulate economic growth.
Related Links:
- https://www.thejakartapost.com/business/2024/03/22/global-funds-withdraw-from-indonesian-bonds-bloomberg.html
- https://www.bloomberg.com/news/articles/2024-03-21/funds-sell-indonesian-bonds-on-fiscal-fears-free-lunch-pledge
- https://dinsights.katadata.co.id/read/2024/03/22/investors-flee-indonesian-government-bonds-post-presidential-election
Constitutional Court Receives Election Dispute Lawsuits
The Constitutional Court has received 63 lawsuits challenging the general election results, including two cases concerning the presidential election. Spokesperson of Constitutional Court Fajar Laksono confirmed the receipt of 56 legislative election cases, five senate election cases, and two presidential election cases in Jakarta.
Former presidential candidates Anies Baswedan and Ganjar Pranowo separately filed cases alleging extensive fraud during the Feb 14 election and seeking a revote. Ganjar underscored legal measures aimed to not just contend the election results but also to uphold principles of democracy.
The court will hold its first hearing on the dispute on March 27, as stated in Constitutional Court Regulation (PMK) 1/2024. It will focus on assessing the comprehensiveness and clarity of the application materials, as well as validating the evidence presented by the applicant during the session, said Constitutional Judge Enny Nurbaningsih.
Related Links:
- https://jakartaglobe.id/news/constitutional-court-receives-63-lawsuits-disputing-election-results
- https://news.detik.com/pemilu/d-7259229/mk-bakal-gelar-sidang-perdana-sengketa-hasil-pemilu-pada-rabu-27-maret
Indonesia Sees Surge in Cryptocurrency Investors
The number of cryptocurrency investors in Indonesia rose from 18.83 million in January to 19.18 million in February, according to the Commodity Futures Trading Regulatory Agency (Bappebti). Among the most actively traded digital assets based on transaction value in February were Tether (USDT), Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Render Token (RNDR).
Bappebti Secretary Olvy Andrianti predicts most crypto asset prices will rise this year, attributing this to the Bitcoin halving phenomenon. This occurrence, characterized by the halving of rewards for Bitcoin mining, typically spurs larger transactions in the market. Presently, 35 companies are registered as prospective physical crypto asset traders (CPFAK) with Bappebti, with many in the process of becoming physical crypto asset traders (PFAK), she said.
2024 is a crucial year for the crypto industry, noting the impending transition to the Fiscal Services Authority (OJK) in 2025, Olvy said. Bappebti has called for effective collaboration and seamless integration within the industry ecosystem to ensure a smooth transition to OJK, aiming to enhance investor protection and foster a favorable investment environment.
Related Links:
- https://www.liputan6.com/crypto/read/5558241/jelang-transisi-ke-ojk-bappebti-awasi-lonjakan-investor-kripto?page=2
- https://www.suara.com/bisnis/2024/03/25/085124/pintu-konsisten-jadi-mitra-strategis-bappebti-untuk-dorong-penguatan-industri-kripto
- https://www.msn.com/id-id/ekonomi/pasarpasar/halving-bitcoin-akan-terjadi-pada-april-2024-harga-aset-kripto-diprediksi-terus-naik/ar-BB1kr2TI?ocid=finance-verthp-feeds
Gov’t Strengthens Biomass Energy Ecosystem
The Coordinating Ministry for Maritime Affairs and Investment is collaborating with state electricity company PLN on Primary Energy Indonesia (PLN EPI) to advance Indonesia's wood-based biomass utilization target for the nation’s energy transition.
The focus is centered on bolstering synchronization and coordination, alongside advocating for sustainable sourcing, standardization, empowerment and policy dissemination, said ministry Deputy for Environmental and Forestry Management Coordination Nani Herdianti.
PLN EPI President Director Iwan Agung Firstantara said biomass implementation is a significant step in PLN’s commitment to contribute 3.6 percent to the total renewable energy mix target by 2025. He highlighted biomass's advantage of having the lowest level cost of electricity (LCOE) compared to other sources.
PLN EPI Director for Biomass Antonius Aris Sudjatmiko emphasized the need for a “quick win” by developing biomass co-firing as the industry waits for more advanced renewable technologies. He highlighted Indonesia’s green circular economy involving micro, small and medium-sized enterprises, which can support the country’s need for 10,000 tons of sustainable biomass feedstock.
Related Links:
- https://www.antaranews.com/berita/4026324/kemenko-marves-dan-pln-epi-perkuat-ekosistem-biomassa-di-indonesia
- https://petrominer.com/kemenko-marves-dan-pln-epi-perkuat-ekosistem-biomassa/
Colliers Hospitality Industry Market Insights 2024
Colliers Indonesia is pleased to present its latest Market Insights - Exploring the Anticipated Hospitality Industry in Indonesia for 2024. It discusses how hospitality is projected to be one of the industries experiencing positive growth in 2024. Sectors such as hotel business, hotel resorts, entertainment, food and beverages and golf courses are among those who will be in high demand.
Member Announcement: Grand Hyatt Jakarta
Grand Hyatt Jakarta is collaborating with six small to medium-sized enterprises from Metro TV’s Juragan Jaman Now 3 to elevate the dining experience at its Grand Café this Ramadan.
These enterprises are showcasing their unique take of local dishes during iftar and breakfast. Alongside Moroccan and Indonesian favorites during the iftar buffet, guests can savor Bandung-style mie kocok by Amieh, Pontianak-style bakso ikan by Ahan and bowls of gluten-free noodles by Sagolicious. To enhance the breakfast variety, Sehatherbs is offering jamuherbal drinks while Imago is presenting honey and granola options, next to Kayla Bakery’s beloved roti bakso selections.
Get to Know Our Members: Cabot Indonesia
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Cabot Indonesia is a subsidiary of Cabot Corporation, a leading global specialty chemicals and performance materials company headquartered in Boston, Massachusetts, US.
The power of Cabot is that it combines this knowledge with its technical expertise to ultimately partner with its customers to create value through innovation and technology. Cabot’s strength in research and development is a major reason why it has been an industry leader for more than 130 years, in products such as rubber and specialty carbons, cesium formate brines, activated carbon, aerogel, fine cesium chemicals, fumed metal oxides, graphenes, inkjet colorants, masterbatches and conductive compounds.
Cabot continues to innovate through @cabotlabs, which integrates its expert team of engineers, scientists and researchers with market intelligence and technology leadership to deliver solutions for tomorrow.
Now is the Time to Join AmCham!
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We offer a full slate of meetings, events, and information for our community. But we can only do this through the support of our members. If you are not yet an AmCham member please join now.
AmCham Indonesia is open to all companies with an interest in US business relations and we have many non-American members.
We are a community and we welcome you!
Reach us at [email protected] or click below!
Update is AmCham’s regular newsletter on developments related to investment, the economy, regulations and issues related to doing business in Indonesia. It comes out three times a week. It is edited by AmCham Managing Director Lydia Ruddy and written by the AmCham Staff. Paul L Goddard is the Managing Editor.
