Gov’t Finalizes Derivative Regulations on Import Policies
The Ministry of Industry (MoI) has finalized the derivative regulations of Minister of Trade (MoT) Regulation 3/2024 on import policies, which outline procedures for technical recommendation (pertek) issuance for commodities such as clothing, footwear, iron, steel, traditional medicines, health supplements, cosmetics and electronics.
The government further plans to evaluate import restrictions regulated in MoT Reg 3/2024, addressing complaints from business owners since its implementation on March 10, Director General of Foreign Trade Budi Santoso said. He noted the evaluation of import license implementation will also consider the readiness of the system to obtain pertek, which has been the root cause of import restriction issues. He targets to complete the import policy revision by next week.
The Ministry of Industry strives to serve all parties requiring technical recommendations based on national supply-demand, said Ministry of Industry Special Staff for Legal Affairs and Oversight Febri Hendri Antoni Arif.
Related Links:
- https://pressrelease.kontan.co.id/news/kemenperin-rampungkan-penyusunan-regulasi-pendukung-permendag-impor
- https://www.idxchannel.com/economics/kemenperin-selesaikan-penyusunan-aturan-pendukung-permendag-terkait-impor
- https://ekonomi.bisnis.com/read/20240419/12/1758808/kemendag-revisi-aturan-lartas-impor-implementasi-bakal-ditunda
Foreign Chambers Discuss Investment and Trade Issues
Industry challenges, the trade landscape, and ways to improve Indonesia’s investment attractiveness were discussed during an exclusive meeting between foreign chamber of commerce representatives, including AmCham Indonesia, and Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan on April 17.
Representing a variety of sectors, foreign chamber representatives highlighted concerns regarding existing trade regulations, which include the complex and time-consuming process of obtaining import permits as well as the limited import quotas, both of which hinder the flow of imports and overall business operations. They further noted the importance of accelerating such administrative processes to prevent any disruptions and stimulate investment in the country.
Luhut positively acknowledged the issue and was quite eager to provide constructive advice and assistance. He encouraged chambers to actively contribute industry insights to help the government in enhancing the country's investment climate. AmCham looks forward to having more engagements with the Ministry.
JETP Roundtable Discussion
The progress of Indonesia’s Just Energy Transition Partnership (JETP) took center stage during a discussion hosted by the German Embassy on April 22. The event convened representatives from the International Partners Group (IPG), Glasgow Financial Alliance for Net Zero (GFANZ), state electricity company PLN, the Indonesia Energy Transition Implementation Joint Office (Rumah Paten) and the Indonesia JETP Secretariat.
Interim Head of Indonesia JETP Secretariat Paul Butarbutar provided updates on the progress of the JETP program, including the Comprehensive Implementation Power Plan (CIPP), which is now in the implementation stage while still allowing for public input.
Warsono, PLN Executive Vice President for Electricity System Planning, shared updates on the PLN electricity development plan (RUPTL) for 2024-2033. This plan serves as PLN’s accelerated renewable energy development strategy, aiming to add 47.1 GW electricity capacity over the next decade, with 33.2GW or 70% sourced from renewable resources.
Rumah Paten Chair Edo Mahendra also explained the role of the new agency as a coordination platform among JETP's stakeholders to expedite the realization of investment for energy transition projects through public information exchange, access and inclusive participation. Its official launch is expected in June this year.
AmCham Indonesia extends our appreciation to the German Embassy for the invitation, and our Energy Transition Committee is committed to supporting the government in providing private sector assistance to accelerate Indonesia's energy transition.
Gov't to Offer $9.6b Projects at World Water Forum
Indonesia will propose water-related projects worth $9.6 billion during the upcoming 10th World Water Forum (WWF), scheduled May 18 to 25, 2024 in Nusa Dua, Bali under the theme Water for Shared Prosperity. Ministry of Public Works and Housing Zainal Fatah said the projects are in the preparation stage, with a catalogue under development by the Ministry of National Development/National Development Planning Agency (PPN/Bappenas), although the ministry did not provide further details.
The 10th WWF will encompass six key sub-themes: water security and prosperity; water for humans and nature; disaster risk reduction and management; governance, cooperation and hydro-diplomacy; sustainable water financing and knowledge and innovation.
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan underscored the forum's significance as Indonesia assumes the chair, aiming to heighten political commitment and address pressing issues of water, food, and energy for the future. The upcoming forum will convene representatives from 193 countries, with heads of state scheduled for attendance.
Related Links:
- https://katadata.co.id/berita/industri/6623c637d6a53/indonesia-akan-tawarkan-proyek-terkait-air-rp-153-t-di-forum-wwf-bali?page=2
- https://worldwaterforum.org/blog/news-3#:~:text=The%2010th%20World%20Water%20Forum%20is%20scheduled%20to%20take%20place,at%20this%20international%20fo…
- https://news.detik.com/kolom/d-7300539/menjadi-tuan-rumah-world-water-forum-2024-menuju-aksi-konkret#:~:text=Indonesia%20terpilih%20sebagai%20tuan%20rumah,sekaligus%20sebagai%20tanggung%20jawab%20besar.
Sri Mulyani Speaks at IMF-WB Spring Meeting
Minister of Finance Sri Mulyani Indrawati participated in the 2024 International Monetary Fund-World Bank Spring Meetings on April 16, held in Washington, DC. She addressed the increasing economic uncertainties stemming from heightened geopolitical tensions in the Middle East, which have had repercussions on global commodity prices and exchange rates. She also outlined Indonesia’s strategy to protect the rupiah’s exchange rate amidst the strengthening US dollar, emphasizing the government’s fiscal policy as a credible and effective shock absorber.
In response to this problem, the government has directed state-owned enterprises to refrain from large-scale purchases of US dollars in order to alleviate pressure on the rupiah. Bank Indonesia Governor Perry Warjiyo echoed the finance minister’s sentiments, saying BI is committed to maintaining stability in the rupiah’s exchange rate through interventions in the foreign exchange market and coordination with relevant monetary authorities.
Alongside Dutch Minister of Finance Steven van Weyenberg, Sri Mulyani also led the Coalition of Finance Ministers for Climate Action, reinforcing the role of finance ministries in implementing nationally determined contributions (NDC) to support the green energy transition.
Related Links:
- https://www.cnnindonesia.com/ekonomi/20240417134125-532-1087286/sri-mulyani-bakal-bahas-konflik-timur-tengah-bersama-para-menkeu-g20
- https://ekonomi.bisnis.com/read/20240419/620/1758692/volatilitas-warnai-spring-meetings-imf-wb-2024-ketahanan-ekonomi-dunia-kembali-diuji
- https://nasional.kontan.co.id/news/dalam-sidang-imf-world-bank-gubernur-bi-pastikan-stabilitas-rupiah-tetap-terjaga
- https://ekonomi.bisnis.com/read/20240419/9/1758765/di-amerika-sri-mulyani-bahas-penghapusan-subsidi-yang-merugikan-lingkungan
Get to Know Our Members: Chubb Life Insurance Indonesia
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Chubb Life is the international life insurance division of Chubb. In Asia, Chubb Life operates in Hong Kong, Indonesia, Korea, Myanmar, New Zealand, Taiwan, Thailand, Vietnam, and participates in a joint venture in China.
Chubb Life commenced operations in Indonesia in 2009 with the acquisition of Asuransi Jiwa Bumi Arta Reksatama, an insurer founded in 1985. In February 2023, Asuransi Cigna officially merged with Chubb Life Insurance Indonesia (Chubb Life Indonesia).
To meet the financial protection and security needs of its broad range of customers, Chubb Life Indonesia offers a range of life and health insurance protection solutions through agents, financial advisors, brokers, banks, partnership, digital networks, direct marketing and telemarketing operations.
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.
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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.
