Virtual Internships? Why Not?
AmCham Indonesia is collaborating with International Internships to host an Online Internships program. For the next three weeks, AmCham is planning to provide a virtual real work-life experience for three international students and one domestic student.
AmCham will provide online mentoring to get the students an in-depth understanding of Indonesia’s investment landscape. The students will work as a team on three projects to enable them to build soft skills and research capabilities. This is the first pilot project for the online approach from International Internship and AmCham takes pride in participating in it.
 |
AmCham Discusses Payments with Bank Indonesia
To officially close out Initiative Indonesia’s Financial Services and Fintech Virtual Mission 2020, AmCham met with Sugeng, Deputy Governor of Bank Indonesia (BI), on June 26. Moderated by AmCham Government Relations Director Gusti Kahari, the meeting was well attended by AmCham and US Chamber of Commerce company representatives that are active globally in financial services and fintech.
Sugeng gave a thorough overview of Indonesia’s macroeconomic conditions, as well as BI’s role so far in mitigating the economic impact of COVID-19. He also discussed the payment system’s major role during the pandemic, as well as BI’s Indonesia Payment Systems Blueprint 2025 and other plans to support the industry in accelerating its development in the digital economic era.
Electronic payments have been a hot button issue for industry and government in recent years, but BI’s openness to discuss the issues and accept feedback has been very welcome by companies in the sector.
The overview was followed by a Q&A session where companies showed their appreciation and support for BI’s effort in nurturing Indonesia’s payment system industry. Questions included details on plans to develop payment systems and solutions in Indonesia, any possible redenomination of the rupiah, and data policy and cybersecurity frameworks for the payment system industry.
More Corporate Income Tax Discounts
The government is offering tax discounts to publicly listed companies through Government Regulation 30/2020 – the derivative of Law 02/2020. Companies that publicly trade at least 40 percent of their stock will automatically receive a 3 percent corporate income tax (PPh) discount in 2020 and 2021, and another 2 percent in 2022.
Corporates will receive a 3 percent decrease (to 22 percent) from 25 percent income tax in 2019, valid from April to December 2020. The additional cuts will reduce corporate income tax to 19 percent in 2020-2021 and 17 percent in 2022.
In addition to the 40 percent free float, companies also have to ensure their shares are owned by at least 300 different parties, each owning no more than 5 percent, and not affiliated with one another. The decision was positively received by companies, most of whom are impacted by public health measures taken to stop the spread of COVID-19.
News references:
- https://jakartaglobe.id/business/indonesian-listed-companies-to-pay-lowest-tax-rate-in-southeast-asia
- https://investasi.kontan.co.id/news/pemerintah-beri-diskon-3-pph-badan-emiten-ini-tanggapan-kalbe-farma-klbf
- https://investor.id/market-and-corporate/potongan-pph-badan-3-bagi-emiten-disambut-positif
CLICK HERE FOR THE FULL REGULATION
AmCham Cares: Freeport-McMoRan
In addition to taking steps to protect employees and mitigate the spread of COVID-19, AmCham Platinum member Freeport-McMoRan has been working with local communities around the world to address the urgent needs of the people and health care systems. Very active locally through Freeport Indonesia, the company’s global footprint sees it working in many countries to ease the COVID-19 crisis. From food boxes to face shields, video equipment to ventilators and busses to ambulances, the company has joined others in the massive relief effort surrounding the coronavirus pandemic.
Indonesia
Freeport Indonesia is supporting the local community by supplying food to indigenous communities, transporting PPE cargo to Papua and funding other efforts through community groups. More than five villages of the Amungme and Kamoro tribes in Papua near Freeport’s operations are receiving significant help with food, COVID-19 prevention and monetary donations. Freeport’s Malaria Center disinfected more than 38 tons of aircraft cargo, passenger luggage and relief packages sent to Jayapura, Tisnga village and Tembagapura.
The first phase of donations included staples for more than 4,500 people. To date, these prevention and mitigation measures amount to more than $1 million.
North America
After collecting and reviewing requests from its community medical facilities and first responders, Freeport recently sent thousands of items to hospitals, health clinics and organizations in three states and six tribal nations.
Donations sent include personal protective equipment such as 1,500 pairs of unvented goggles and 1,000 clear face shields. Many of the items donated also point to the preparation hospitals are making to accommodate an anticipated influx of patients by modifying facilities. These included 46 tents with side panels, Tyvek material to make many more tents and side panels, heavy-duty tape, folding tables, wire racks and ice chests.
Peru
In Arequipa, Peru, Freeport provided busses for transportation for health-care workers after public transportation was suspended. The company also contributed to the acquisition of half a million test kits for the Peruvian government and tens of thousands of coveralls, facemasks, disposable boots and gloves to regional health centers and donated funds for the purchase of 10 non-invasive CPAP ventilators to assist patients diagnosed with coronavirus. The operation continues to donate food baskets to families.
Chile
In Chile, El Abra donated three respirators and an advanced emergency ambulance to Carlos Cisternas Hospital, the public hospital of Calama, as well as other medical supplies to local organizations. In addition, donations of health protection supplies were made to local hospitals and law enforcement authorities in the area. A total of 2,000 three-fold masks, 1,200 N95 masks and 300 liters of alcohol gel were delivered to the hospitals of Calama and Tocopilla and 500 masks were delivered to the No. 1 Calama Motorized Brigade of the Chilean Army and to the Chilean Police.
Spain
The Atlantic Copper Foundation in Huelva, Spain, donated more than $20,000 for video surveillance systems in the community’s three public hospitals. This makes it possible to carry out faster and more effective health-care screenings of patients, significantly reducing the risk of infection and improving the safety of health-care personnel.
The Atlantic Copper Foundation also is collecting employee donations for the Food Bank of Huelva, with the commitment to equally match the amount raised.
Jokowi Threatens Cabinet with Reshuffle
Responding to what he called a slow reaction to COVID-19, President Joko Widodo expressed his disappointment with ministers’ performances during a cabinet meeting on June 18. In his speech, uploaded on June 28 on YouTube, Widodo threatened to reshuffle his cabinet if performances do not improve.
The president said cabinet members had not worked their best to ease the social and economic impact of the pandemic, citing in particular the health ministry, which has underspent its COVID-19 mitigation budget.
The president said he would take extraordinary steps for the safety of Indonesia’s 267 million people, including creating more Government Regulations in lieu of Law (Perppu), disbanding institutions and reshuffling the cabinet.
Update: Sheltering the Front Line
AmCham Indonesia and Habitat for Humanity Indonesia are cooperating with the OYO online hotel booking site and the IBIS hotel chain to provide temporary quarters in hotels for Indonesian medical workers during the COVID-19 pandemic.
We need to support more medical staff to have a decent place to sleep, and we need your donations. By doing this, we will increase the overall capability of Indonesia to treat COVID-19. Habitat will match individual hospitals with hotels on an as-needed basis.
Now is the Time to Join AmCham!
 |
We are continuing with a full slate of meetings, events and information offered to our community online. 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!
AmCham Office and Events
 |
The AmCham Office is on work from home status and all face-to-face meetings and events have been postponed. We are having a number of meetings online using the Zoom platform. You will be notified of virtual meetings as they are scheduled.
What is Your Company Doing on COVID-19?
Please let us know what measures your company may be taking in the form of donations and other assistance to help Indonesia during this time of confusion and concern. Contact [email protected] with your news. We would like to publicize the ways that our AmCham companies are pitching in.
Stay well
We urge you to send us press releases and other information that we can pass on to the broader AmCham community. If you have items of interest, please email material to [email protected]. Follow this link to information provided by the US Embassy
Stay safe, call a doctor if you have a high fever, cough, or difficulty breathing. Stay healthy above all else.
COVID Update is AmCham’s regular newsletter on developments related to the pandemic crisis in Indonesia. It is edited by AmCham Managing Director A Lin Neumann and written by the AmCham Staff. Paul L Goddard is the Managing Editor.
