Shortage of Apple and Michelin Products Due to New Import Procedures
Shortages of highly in-demand consumer goods such as Apple’s MacBook and tire products manufactured by Michelin are predicted by the end of this month as a result of Indonesia’s new and more complex import permit procedures, implemented on March 10. The policy limits imports of approximately 4,000 products spanning from raw materials to finished goods.
Industry difficulties with the regulations and their consequences have prompted a call for policy reassessment, with industry players saying they have collaborated with organizations and fellow companies grappling with similar challenges, emphasizing their commitment to integrating Indonesia into the global value chain and promoting open trade.
Businesses are also urging influential government figures such as Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan to push for regulatory relaxation, thereby safeguarding Indonesia's business reputation and economic interests.
AmCham has monitored the issue closely and will continue to engage with the government and industry players.
Related Links:
- https://www.bloomberg.com/news/articles/2024-04-05/apple-macbooks-running-low-in-indonesia-after-fresh-import-curbs?srnd=homepage-asia
- https://super.news/en/articles/2024/04/05/import-regulation-in-indonesia-sparks-concerns-for-multinational-corporations
Nvidia Plans $200M AI Center in Indonesia
US technology firm Nvidia Corporation plans to build a $200 million artificial intelligence (AI) center in Indonesia this year with local telecommunications company Indosat Ooredoo Hutchison. The new facility, which is slated for construction in Surakarta, Central Java, will enhance local telecommunications, human resources and digital skills, said Minister of Communication and Information Technology Budi Arie Setiadi.
The AI center’s development concept revolves around telecommunications infrastructure and digital talent, said Budi, and would further develop the Solo Techno Park, a special hub which facilitates technology research and development. Indosat Chief Executive Officer Vikram Sinha also said Surakarta is a favorable investment location due to its skilled workforce, readiness and 5G availability.
Partnerships in Indonesia are part of Nvidia’s Southeast Asia expansion, including collaborations in Singapore and Malaysia. AI is projected to boost Southeast Asia’s GDP by 10 to 18 percent by 2030, with Indonesia’s huge population presenting significant growth opportunities. Nvidia previously committed to training lectures and over 20,000 students in AI skills over five years.
Related Links:
- https://www.cnbc.com/2024/04/05/nvidia-to-build-a-200-million-ai-center-in-indonesia-amid-southeast-asia-push.html
- https://www.reuters.com/technology/nvidia-indosat-plan-200-mln-ai-centre-investment-indonesia-government-says-2024-04-04/
- https://tekno.kompas.com/read/2024/04/08/07000017/nvidia-akan-bangun-pusat-ai-di-indonesia-senilai-rp-3-triliun-lokasi-di-solo
Starlink Closer to Launching Operations in Indonesia
Starlink, Elon Musk's satellite-based internet provider, has been granted the necessary operating permit and cleared to conduct test runs in the new capital city of Nusantara in May, said Director of Post and Information Technology Services at the Ministry of Communication and Information Technology (Kominfo) Wayan Toni Supriyanto.
Despite obtaining its operation permit, Starlink still needs Very Small Aperture Terminal (VSAT) and Internet Service Provider (ISP) permits to offer services directly to consumers in Indonesia. The company may have already met VSAT requirements, but needs local cooperation on network access protection (NAP) for the ISP license, Wayan said. He also highlighted the distinction between the global Starlink and Starlink Indonesia entities, with the latter functioning as a telecommunications provider, procuring internet access and equipment from Starlink’s global operations.
During the permit process, Starlink plans to conduct operational tests in the new capital. If successful, it will then be able to sell directly to Indonesian users. Minister of Communication and Information Technology Budi Arie Setiadi stressed Starlink’s need to comply with local regulations, including setting up a local network operations center (NOC) to ensure fair competition in the Indonesian market.
Related Links:
- https://id.techinasia.com/starlink-kantongi-satu-izin
- https://tekno.kompas.com/read/2024/04/05/15000027/segini-harga-langganan-internet-satelit-starlink-di-indonesia
- https://www.thejakartapost.com/business/2024/04/06/spacex-secures-network-operational-permit-in-indonesia-govt-says.html
ASEAN Finance Ministers Agree on Single Window Vision
A new vision for the ASEAN Single Window (ASW) was agreed during 11th ASEAN Finance Ministers and Central Bank Governors Meeting (AFGM), held in Laos on April 2-5. The vision aims to enhance connectivity and facilitate the exchange of electronic trade more efficiently.
The meeting underscored progress in the technical study for the next-generation ASW, with a focus on enhancing accessibility, inclusivity and interoperability, as outlined in the joint statement of the 11th AFGM. This initiative is in line with the objectives of the ASEAN Bandar Seri Begawan Roadmap for Digital Transformation and the ASEAN Digital Economic Framework Agreement (DEFA), which aim to advance trade facilitation and digitalization within the region.
Other discussions during the meeting covered global and regional economic prospects, with the ASEAN economy projected to strengthen by 4.9 percent this year, although recent projections suggest potential challenges ahead.
Related Links:
- https://katadata.co.id/berita/internasional/66124e6a7727e/menteri-keuangan-asean-sepakati-visi-baru-asean-single-window
- https://www.idntimes.com/business/economy/vadhia-lidyana-1/3-kesepakatan-bank-sentral-asean-dari-afmgm-2024?page=all
Get to Know Our Members: Alliance Laundry Systems
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Alliance Laundry Systems is the world's leading designer, manufacturer and marketer of stand-alone commercial laundry equipment, providing customers with a single source solution for nearly all of their stand-alone commercial laundry equipment needs.
Alliance Laundry Systems produces a full line of commercial washing machines and dryers with load capacities from 15 to 400 pounds, as well as presses, ironers and laundry finishing equipment. Its equipment is sold globally in 155 countries through a network of over 1,600 distributors and route operators under the well-known brand names Speed Queen®, UniMac®, Huebsch®, IPSO®, Primus® and Deli®.
Alliance Laundry Systems provides industry leading value-added services to support customers, such as laundromat site selection, laundry design services and comprehensive training programs. With more than 3.1 million machines in operation, it has the largest installed base of commercial laundry equipment in the world.
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.
