Gov’t Accelerates Formation of Nuclear Energy Agency
The Ministry of Energy and Mineral Resources (ESDM) is to establish the Nuclear Energy Program Implementation Organization (NEPIO) amid ongoing plans for nuclear power plant development, slated to begin construction in 2033.
Reporting directly to the President of Indonesia, NEPIO will be responsible for overseeing the preparation and execution of nuclear power plant construction within the country. To expedite its establishment, ESDM has released Ministerial Decree 34.k/HK.02/MEM/2024, which revises Ministerial Decree 250.K/HK.02/MEM/2021, on the formation of the NEPIO Preparation Team. The preparatory team began its tenure on Jan 1, and ends upon the formation of the NEPIO team.
Important revisions in the regulation involve tasking the preparatory team to coordinate across sectors for NEPIO formation, draft NEPIO establishment regulations, and compile task reports for National Energy Council meetings.
Delays in establishing NEPIO could significantly impact domestic nuclear power projects, said Director General of New, Renewable Energy and Energy Conservation (EBTKE) Eniya Listiani Dewi. NEPIO's formation is pivotal for the realization of the pending Government Regulation on National Energy Policy (RPP KEN), which incorporates nuclear energy into renewable energy development.
Related Links:
- https://katadata.co.id/ekonomi-hijau/energi-baru/66022d9b10ad0/pemerintah-kebut-pembentukan-organisasi-pendukung-energi-nuklir-di-ri
- https://www.cnbcindonesia.com/news/20240326114946-4-525494/pemerintah-dorong-secepatnya-bentuk-badan-tenaga-nuklir-ri
|
State Budget Sees a Rp 22.8T Surplus
The State Revenue and Expenditure Budget (APBN) saw a surplus of Rp 22.8 trillion as of March 15 this year, said Minister of Finance Sri Mulyani Indrawati, alongside a primary balance surplus of Rp 132.1 trillion. State revenue decreased by 5.4 percent year-on-year, attributed to slower tax receipts resulting from declining commodity prices in 2023.
Conversely, state expenditure surged by 18.1 percent to Rp 470.3 trillion. Notable allocations included Rp 13.4 trillion for religious holiday allowances (THR), Rp 2.3 trillion for the Nusantara new capital city (IKN) designated for infrastructure and administrative development, and Rp 23.1 trillion previously earmarked for the 2024 general elections.
Sri Mulyani said the government continues to closely monitor an increasingly volatile global stage to ensure the state budget remains safeguarded.
Related Links
- https://ekonomi.bisnis.com/read/20240325/10/1752438/solid-sri-mulyani-sebut-apbn-surplus-rp228-triliun-per-15-maret-2024
- https://ekonomi.bisnis.com/read/20240326/10/1752791/6-poin-penting-apbn-2024-dari-sri-mulyani-belanja-melonjak-saat-pendapatan-seret
AmCham Cares - Procter and Gamble Indonesia
Procter and Gamble (P&G) Indonesia, in partnership with Save the Children Indonesia through the We See Equal program, has embarked on a transformative journey spanning six years to promote equality, gender positivity and a safe environment for children in Cianjur and Bandung Regency, West Java.
In phase one (2018–2020), the We See Equal program focused on fortifying schools with standard operating procedures (SOP) to prevent violence and distribute CHOICES modules for positive character development. The program expanded in phase two (2020-2022) to include parents and caregivers, empowering them with tools for positive parenting.
Unfortunately, the Cianjur earthquake in 2022 destroyed schools and left thousands of children traumatized. As an emergency response, P&G Indonesia helped impacted children and teachers with psychosocial support, education in emergencies, and safe school programs. In doing this, P&G became the first fast-moving consumer goods (FMCG) company to collaborate with Save the Children Indonesia to provide integrated psychosocial support in emergencies.
The program has evolved to engage the broader community, collaborating with local leaders, government officials and community members for sustainable change. By December 2023, the program had empowered 26,998 children, 1,874 teachers and 2,990 parents. The program has covered 11 villages, engaged 551 community leaders, and 77 government officials, and successfully established 11 children’s forums.
Recognizing the positive impact, local authorities have initiated the replication and promotion of We See Equal modules to more schools, encompassing 20 schools in Cianjur and 30 in the Bandung Regency.
A key aspect of the #WeSeeEqual Program is amplifying youth voices through initiatives such as children’s village forums and sponsoring one of the children benefiting the We See Equal program, Hasna to global platforms, Women Deliver Conference 2023 in Rwanda to underscore the program's global significance.
As the We See Equal program continues to evolve, it remains a beacon of hope for fostering a brighter, more inclusive future for children.
AmCham Services Committee Meeting
AmCham Indonesia held its second Services Committee Meeting of the year on March 27. Committee Chair and Governor Emeritus Peter Meyer opened the meeting with the latest updates from the tax, consulting, legal, shipping, relocation and insurance sectors, as well as the US Embassy, Jakarta.
The business and investment climate following the conclusion of the 2024 presidential elections topped the agenda, as companies assessed post-election dynamics with potential impacts on business operations. Indonesia’s general economic outlook in the midst of a transition of power was also discussed, as well as recent developments regarding the government’s new draft intellectual property law and the upcoming mandatory halal certification regime.
A number of participants also discussed the pressing issue of the new import policy affecting companies across multiple sectors.
Exporters Sanctioned Over DHE Rule Violations
The Directorate General of Customs and Excise (DGCE) blocked the services of 23 exporters for failing to comply with foreign exchange earnings (DHE) derived from natural resources (SDA), but subsequently unblocked services for seven of those companies as they are in the final process of compliance, according to Bank Indonesia (BI) and the Financial Services Authority (OJK).
DGCE is mandated to supervise industry compliance according to Minister of Finance Regulation 73/2023.
In alignment with these efforts, BI has enacted Bank Indonesia Regulation 7/2023 on Foreign Exchange Earnings and Import Payment Foreign Exchange. In conjunction, BI is collaborating with the banking sector and the Indonesian Export Financing Institute (LPEI) to refine instruments for managing and utilizing DHE SDA placements. Seven instruments have been developed by the central bank for DHE SDA placement, including special accounts, foreign currency deposits, and foreign exchange term deposits customized for export earnings (TD Valas DHE).
Related Links:
- https://katadata.co.id/finansial/makro/66026364dc7d9/bea-cukai-blokir-layanan-23-eksportir-karena-tak-penuhi-aturan-dhe-sda#google_vignette
- https://news.ddtc.co.id/tak-patuh-ketentuan-dhe-sda-bea-cukai-blokir-layanan-23-eksportir-1801546
HSBC Investment Forum 2024
HSBC Indonesia held the HSBC Investment Forum, on Mar 19, with the theme Developing a Robust Electric Vehicle (EV) Ecosystem in Indonesia. The event was aimed at sharing the latest insights on investment opportunities in the EV ecosystem here, as well as how industry players and stakeholders can collaborate in facing and overcoming a number of challenges.
The forum began with a presentation by Deputy Coordinating Minister of Maritime Affairs and Investment in Infrastructure and Transportation Rachmat Kaimuddin, who provided updates on the EV landscape in Indonesia. This was followed by a panel discussion featuring Chief Strategy Officer of Blue Bird Andrew Arristianto, CEO of Vinfast Indonesia Tran Quoc Huy, and Head of Industrials Asia Pacific at HSBC Global Banking Misi Tang.
|
Get to Know Our Members: Castle Asia
 |
For over 40 years, CastleAsia has developed and managed the Indonesia Country Program – Indonesia’s largest and most prestigious CEO forum with over 80 leading international and domestic corporations and institutions as its member base.
The program provides a series of timely briefing reports, weekly private business roundtables, and regular expert guest speakers on business, the economy and politics and semi-annual country forecasts designed to keep corporate leaders fully informed on the most important economic, political and regulatory issues facing business in Indonesia.
Now is the Time to Join AmCham!
 |
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.
