Gov't Revokes 2,051 Mining Licenses
The Ministry of Investment has revoked 2,051 mining sector business licenses (IUP) as of March this year, according to Minister of Investment Bahlil Lahadalia. The revocation stems from infractions including companies' failure to adhere to their stated business plans, the misuse of government licenses as collateral for bank loans, and instances where companies obtained licenses primarily to enhance their public image before an initial public offering (IPO), without directing IPO funds toward mining activities, he said.
The widespread revocations align with President Joko Widodo's 2022 directive instructing the government to nullify mining concessions which were inactive, unproductive, transferred to third parties or misused.
However, there have been public concerns regarding the transparency of the process and Bahlil's authority to revoke these licenses. In response, the Minister said the process was carried out collectively through the Land Management and Investment Task Force, which he leads.
Related Links:
- https://jakartaglobe.id/business/govt-revokes-over-2000-mining-licenses
- https://ekonomi.bisnis.com/read/20240401/9/1754438/terungkap-ini-alasan-bahlil-cabut-2051-izin-tambang
- https://nasional.kontan.co.id/news/hingga-maret-2024-kementerian-investasi-sudah-cabut-2051-iup
- https://setkab.go.id/en/govt-revokes-thousands-of-mining-forestry-business-licenses-cultivation-rights/
AmCham Corporate Citizenship Committee Meeting Focuses on ESG
Environmental, social and governance (ESG) 101 and best practices was the focus of AmCham Indonesia’s Corporate Citizenship Committee (CCC) inaugural meeting on April 2. The session aimed to establish a strong foundation of understanding regarding ESG principles, urging member companies to embrace and enact sustainable business models.
PwC Indonesia Partner Meita Laimanto provided valuable insights into ESG fundamentals, highlighting the benefits of its implementation for business growth and emerging trends in Indonesia and globally. Boeing Indonesia Country Director Zaid Alami, and Kraft Heinz General Counsel and Head of Corporate & Regulatory Affairs Lusia Mira Buanawati, shared their companies' community engagements and implementation strategies, illustrating how ESG best practices are integrated into corporate ethos and operations.
The meeting also delved into Indonesia's capacity and regulatory challenges in implementing ESG initiatives, the impact of its implementation on industrial and business operations, climate change, and sustainable development goals, fostering an interactive exchange during the question and answer session.
Rp 35.45t for New Capital City Development: Public Works Ministry
The government has allocated Rp 35.45 trillion for development of the new capital city Nusantara (IKN) this year. The budget allocation will be divided into four sectors – water resources, highways, spatial planning and housing – said Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono.
The money includes Rp 16.67 trillion for the Directorate General of Highways, Rp 11.44 trillion for the Directorate General of Spatial Planning, Rp 5.76 trillion for the Directorate General of Housing, and Rp 1.58 trillion for the Directorate General of Water Resources. Basuki also said Rp 24.97 trillion was allocated for basic infrastructure support for the new capital last year.
Related Links:
- https://www.antaranews.com/berita/4038972/kementerian-pupr-alokasikan-rp3545-triliun-untuk-ikn-tahun-ini?utm_source=antaranews&utm_medium=desktop&utm_campaign=related_news
- https://www.cnbcindonesia.com/news/20240401154831-4-527155/anggaran-proyek-ikn-jokowi-ditambah-rp-35-t-total-jadi-rp-60-t
- https://ekonomi.bisnis.com/read/20240401/45/1754415/menteri-pupr-ungkap-progres-infrastruktur-dasar-ikn-senilai-rp2497-triliun
AmCham Cares: Reckitt
Reckitt Indonesia, through its brand Dettol, recognizes the sacred values of Ramadan and invites the public to join the company in fostering solidarity and compassion during this auspicious time through the Tambah Kebaikan di Bulan Ramadan (Add Kindness in the Month of Ramadan) campaign.
Initiated in collaboration between Dettol and Alfamart, the campaign aims to provide direct access to antibacterial soap bars for 855 families in Bantargebang, Bekasi, West Java, through the entire year. This initiative not only serves as charitable outreach but also further promotes equitable access to hygiene facilities for all.
As a global consumer products company with a focus on hygiene, wellness, and nutrition, this campaign aligns with Reckitt’s mission to protect, heal, and nurture a healthier and cleaner world. The campaign’s emphasis on assisting those living in vulnerable environments reflects this commitment. By providing education and access to hygiene facilities for the vulnerable, Dettol believes that a clean environment and community contribute to a healthier society.
Maintaining personal hygiene is crucial for Muslims to practice their religious duties solemnly and peacefully. Unfortunately, data from the Central Statistics Agency reveals the increase in households with adequate sanitation facilities in Indonesia was a mere 1.44 percent from 2022 to 2023. Proper sanitation and hygiene practices — such as regular handwashing with soap — can significantly contribute in enhancing people’s quality of life. With that, there is a pressing need for hygiene facilities, particularly among vulnerable families and those in less supportive environments.
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20% Eid Toll Road Discounts
There will be 20 percent toll road tariff discounts from April 5-19, including major routes such as the Trans-Java toll road, comprising Jakarta-Cikampek, Jakarta-Cikampek elevated (MBZ), Cikopo-Palimanan, as well as the Trans-Sumatra route, Minister of Public Works and Public Housing Basuki Hadimuljono said.
The discounts are applicable only for non-cash transactions with sufficient electronic card balances.
Coordinating Minister for Human and Culture Development Muhadjir Effendy said 41 percent of travelers use the routes, and urged travelers to plan their journeys accordingly, underscoring the necessity for seamless travel arrangements, suggesting efficient one-way systems from all feeder points.
Related Links:
- https://www.cnnindonesia.com/ekonomi/20240402134359-92-1081775/demi-mudik-tarif-tol-di-luar-jawa-didiskon-20-persen-pada-5-19-april
- https://voi.id/en/news/370515
English To Be Mandatory at Elementary Schools
English will soon become a compulsory subject for elementary schools and equivalent levels, as outlined in Minister of Education, Culture, Research, and Technology Regulation 12/2024 concerning Curriculum for Early Childhood Education, Primary Education Level, and Secondary Education Level, which was officially signed on March 25.
The policy will be implemented gradually, with English initially being offered as an optional subject for the academic year 2026/2027, and then becoming compulsory for the academic year 2027/2028. The ministry will oversee the transition process and offer training for teachers. Regional governments will also be tasked with providing English teachers for elementary schools and equivalent levels.
However, scout activities (pramuka) were removed from the list of mandatory extracurricular activities for students, having previously been compulsory for elementary and secondary students. This decision has sparked criticism from the House of Representatives (DPR), as pramuka is valued for instilling positive characteristics and attitudes in students, said DPR Commission X Chair Syaiful Huda.
Related Links:
- https://katadata.co.id/berita/nasional/660a212e49cc3/menteri-nadiem-bakal-wajibkan-pelajaran-bahasa-inggris-untuk-siswa-sd
- https://www.klikpendidikan.id/news/35812316016/nadiem-makarim-resmi-rombak-status-mapel-bahasa-inggris-dalam-kurikulum-nasional-bersifat-wajib-mulai
- https://news.detik.com/berita/d-7271849/ketua-komisi-x-dpr-ri-soal-pramuka-bukan-eskul-wajib-kebablasan
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Get to Know Our Members: UOB Indonesia
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UOB Indonesia is a subsidiary of UOB, a leading bank in Asia with a global network of around 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Established in 1956 as Bank Buana Indonesia, it changed its name to Bank UOB Indonesia in 2011.
UOB Indonesia’s service network comprises 42 branch offices, 89 sub-branch offices and 142 ATMs across 44 cities in 16 provinces in Indonesia. Its banking services are accessible through its regional ATM network, the ATM Prima and Bersama networks and the Visa network.
UOB Indonesia is committed to providing quality products and excellent customer service. The bank offers a variety of banking products and services categorized into digital banking, personal financial services, business banking, commercial banking, corporate banking, global markets and investment management. UOB Indonesia is rated AAA (idn) by Fitch Ratings.
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.
