AmCham Update
AmCham Update Vol. 2 #39
State Dept Travel Advisory, Office Covid Cases on the Rise, Investment Stable but Blah, S&P’s Indonesia Outlook
Apr 26, 2021 | AmCham Indonesia

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Indonesia Included in Negative US Travel Advice

The US State Department has classified Indonesia as Level 4: Do Not Travel in its travel advisory list due to the Covid-19 situation in the country as well as for terrorism and natural disasters. Some 150 countries are classified as Level 4, with the State Department saying it does not reflect the US government’s judgment of health conditions in countries, but rather reflects the adjustments made to the Travel Advisory system to rely more on epidemiological assessments. The travel advisory is not binding and does not prohibit US nationals from traveling. 

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US Embassy Travel Alert: Indonesian Travel Restrictions May 6-17

The Indonesian government has announced it will restrict domestic travel May 6-17 to reduce the spread of Covid-19, based on Covid-19 Task Force Circular Letter 13/2021 released on April 7, 2021. The regulation limits travel to specific reasons and mandates the use of an entry/exit permit (Surat Izin Keluar Masuk or SIKM) for such travel. Travelers will face delays, cancellations, and more government checkpoints. Those intending to head to Indonesia May 6-17 should contact their airline and travel provider for further details and updates. 

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Covid-19 Cases in Office Clusters Soar

The number of Covid-19 cases from office clusters in Jakarta has more than doubled in the past week, with most in offices where people have received the Covid-19 vaccination, the Jakarta government said. From April 12-18, 425 cases in 177 offices were detected, an increase from 157 in 78 offices the previous week. Those who have been vaccinated can still contract and transmit Covid-19 to others, so the government advises offices to continue to abide by health protocols such as wearing a mask, physical distancing, washing hands, avoiding crowds, and reducing mobility.

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AmCham Cares: Bank of America

Bank of America has increased its Environmental Business Initiative target to $1 trillion by 2030, a significant rise from the $300 billion targets set in 2019. This commitment will anchor a broader $1.5 trillion sustainable finance goal through both environmental transition and social inclusive development, spanning business activities across the globe. 

“The private sector is well-positioned to ensure that the capital needed – at the scale it is needed – can drive the transition to a low-carbon, sustainable economy,” said Bank of America’s vice chairman Anne Finucane. “We will meet our commitment by working with clients to provide lending, capital raising, advisory and investment services, and to develop financial solutions and drive innovation to ensure the transition to a sustainable economy.”

Bank of America’s broader $1.5 trillion sustainable finance target is consistent with the United Nations Sustainable Development Goals (UN SDGs) and will spur transformative change nationally and around the world. Beyond the $1 trillion climate-related finance, the balance of the sustainable finance goal is focused on social inclusive development, scaling capital to advance community development, affordable housing, healthcare, and education, in addition to racial and gender equality.


First Quarter Investment Stabilizing but Below Targets: BKPM

Investment realization in the first quarter of 2021 hit Rp 219.7 trillion, according to Indonesia Investment Coordinating Board (BKPM) chief Bahlil Lahadalia, growing 2.3 percent on a quarter-to-quarter basis, and 4.3 percent year-on-year, while also absorbing 311,793 people in the workforce. However, the number is still far below the targets set by the National Development Planning Agency (Bappenas) and President Joko Widodo of Rp 856 trillion and Rp 900 trillion, respectively. Bahlil said foreign investment is beginning to stabilize, at Rp 111.7 trillion in the first quarter, and domestic investment of Rp 108 trillion.

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Indonesia’s Investment Outlook: S&P

Standard and Poor's (S&P) maintained Indonesia’s outlook as “Negative” with a BBB rating on April 22. S&P had previously downgraded Indonesia’s outlook from “Stable” to “Negative” on April 17, 2020. 

S&P expects Indonesia’s economic growth will accelerate in 2022 due to more Covid-19 vaccinations and the normalization of economic activities. The Omnibus Job Creation Law is also expected to attract foreign investment to support long-term economic growth.

Indonesia was rated BBB and “Stable” by Fitch Ratings and Ba2 and “Stable” by Moody’s. Minister of Finance Sri Mulyani Indrawati said the ratings showcased how Indonesia has maintained its economic performance despite the ongoing pandemic.

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Get Katadata and Stay Updated on News and Trends

In this fast-paced world, it is often hard to stay informed on the latest political issues and business trends that may affect our lives. This is why Katadata’s D-insights provides the information we need on a daily basis, plus weekly and quarterly reports that summarize the trends and give background on the business, politics, markets, and energy.

Katadata D-insights offers a special rate for all AmCham members. The subscription for D-Insights are as follows:

Individual Subscriber:

Visit the link https://dinsights.katadata.co.id/account/subscribe for more details. Use the code "AMCHAM1" to get a special price for AmCham Members

Corporate Subscriber:

Up to four users with a special price at Rp 40,000,000 annually. Send names, emails, and quote “AMCHAM2” to [email protected]


Support Independent Journalism: Subscribe to The Jakarta Post

In these difficult times, our hometown English language newspaper, The Jakarta Post, is more important than ever. Given the difficulties of physical circulation and the economic slump, the Post needs to boost its online subscribers – a goal we heartily support at AmCham Indonesia. Quality English language news is vital for our businesses, our home offices, and the flow of information out of Indonesia. It is for this reason, that we are urging all of our members and readers to subscribe to JP! Information is what will help get us through this crisis. Below is information about how to sign up.

JP Premium Digital Subscription Packages

https://www.thejakartapost.com/packages

Monthly subscription – Rp 50,000

Yearly subscription – Rp 600,000


Now is the Time to Join AmCham!

Now is the Time to Join AmCham!

We offer a full slate of meetings, events, and information for 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!

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AmCham Office and Events

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.

 

 


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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.


AmCham Update is AmCham's regular newsletter on developments related to the pandemic crisis and other issues 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