AmCham Update
AmCham Update Vol. 4 #34
Ford's $4.5b Investment in Indonesia, Nation Stripped of U-20 Football World Cup Hosting Rights, Omnibus Healthcare Bill Under Fire, Jokowi Plans Cabinet Reshuffle
Mar 31, 2023

March 31, 2023

Ford Signs $4.5b Deal for EV Battery Materials Plant

Ford Motor Company has signed a final investment agreement with Vale Indonesia and Zhejiang Huayou Cobalt to build a $4.5 billion nickel processing plant in Pomalaa, Southeast Sulawesi.

This investment in the mining sector is a first for Ford in Indonesia, and the partnership was enabled by the initial framework set up by Vale and Huayou which allowed for a third investor to take part. Under the new partnership, Vale indonesia CEO Febriany Eddy said Vale holds a 30 percent stake, while Huayou and Ford "hold the rest."

The processing plant or smelter is expected to produce 120,000 tons of hydroxide precipitate annually for electric vehicle battery production. The agreement also assigns Ford as a standby buyer for the refined nickel products. The securing of this refined nickel supply would support Ford’s aim to produce 2 million electric vehicles globally by 2026.

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FIFA Removes Indonesia as U-20 World Cup Host

FIFA has stripped Indonesia of hosting rights for the U-20 World Cup 2023 amid the controversy over Israel's participation, after a meeting between FIFA President Gianni Infantino and Indonesian Football Association (PSSI) Chair Erick Thohir.

The move was triggered by the cancellation of the official draw for the tournament in Bali on March 24 after Bali Governor Wayan Koster refused to host the Israeli team which had qualified for the event. The tournament is due to begin on May 20 providing a new host is found. The Indonesian team will also no longer take part as it is no longer the host country.

Indonesia will also receive sanctions from FIFA over the deadly crush at Kanjuruhan Stadium in Malang which killed 135 people on Oct 1 last year, but precise details have yet to be announced.

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Experts Say Omnibus Health Bill Must Focus on Health Issues

The recently introduced omnibus Healthcare Bill should only focus on health-related issues, such as public health development, health sector transformation, and upstream and downstream health services, Honorary Professor of Regulatory Science at Jember University Prof Dr Bayu Dwi Anggono said.

He said regulating the institutional design of the Social Security Administrator (BPJS) in the Bill does not have any justifications, with previous regulations saying it is directly responsible to the President. Constitutional Law Expert at Udayana University Jimmy Z Usfunan also said that BPJS’ institutional position as regulated in the Bill will affect the state administration system.

Although the Bill has been undergoing deliberation and socialization processes, local health professional organizations are still questioning its urgency. The implementation of the regulations, especially those related to medical education, is deemed more important than the issuance of the new Bill.

AmCham Indonesia believes there are still some concerns over the Bill from an industry standpoint, and we are encouraging the government to take input from businesses.

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Jokowi to Reshuffle Cabinet

President Joko Widodo will conduct a cabinet reshuffle soon, he said on March 29. The reshuffle is partly due to the need to find a replacement for Zainuddin Amali, who resigned as Minister of Youth and Sports to become Vice Chairman of the Football Association of Indonesia (PSSI), and there is also the need to fill vacant vice-ministerial positions in the cabinet.

President Widodo has already received the names of three candidates to be sports minister from Coordinating Minister for Economic Affairs Airlangga Hartarto.

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Indonesia Seeks Big Investment Deals at 2023 Hannover Messe

Indonesia is looking to secure large investment commitments when it takes part in the 2023 Hannover Messe, the world’s largest industrial technology fair, which takes place on April 17-21 in Hanover, Germany.

As the official partner country, Indonesia will bring in 157 co-exhibitors to reach thousands of potential investors. Indonesia’s participation has four main targets: presenting the Making Indonesia 4.0 roadmap, promoting industrial cooperation, increasing foreign investment and exports, and as strengthening bilateral relation with Germany.

The government had allocated Rp 140 billion to join the fair and has set a goal to secure Rp 14 trillion in investment commitments. One senior official said the event is not only important for Indonesia’s branding but also encouraging increasing the nation’s manufacturing capabilities and developing digital infrastructure. 

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Now is the Time to Join AmCham!

Now is the Time to Join AmCham!

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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

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