Gov't to Allow Foreign Medical Specialists to Practice in Indonesia
Indonesia will allow foreign medical specialists to practice and be based in the country under the omnibus Healthcare Bill. The Bill states foreign medical specialists will be able to practice provided take part in relevant adaptation training in Indonesian health facilities and get necessary certifications.
Although there are still some concerns over the Bill, AmCham Indonesia believes the policy on foreign medical specialists will have a positive impact in boosting the country’s healthcare quality and quantity.
President Joko Widodo has stressed the importance of competition to improve health services. The policy is also aimed at curbing the traffic of middle and upper-class Indonesians going overseas to seek treatment.
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Job Creation Perppu Becomes Law
The Government Regulation in Lieu of Law (Perppu) on Job Creation was officially passed into law by the House of Representatives (DPR) on March 21. It aims to mitigate and prevent problems caused by the global economy from massively impacting the national economy, said Coordinating Minister for Economic Affairs Airlangga Hartarto.
Airlangga said that in recent years, especially during Covid-19, the omnibus Job Creation Law had successfully increased the flow of foreign direct investment (FDI) into the country.
The law aims to have more positive impacts on investment and generate multiplier effects, especially in opening employment opportunities. However, there are still factors such as policy consistency, legal certainty, land availability, and coordination of regional centers that need to be sorted.
Related links:
- https://www.ekon.go.id/publikasi/detail/5049/ruu-penetapan-perpu-cipta-kerja-resmi-disetujui-dpr-ri-untuk-ditetapkan-menjadi-undang-undang
- https://nasional.tempo.co/read/1705986/deretan-respons-kontra-atas-pengesahan-uu-cipta-kerja-dari-buruh-hingga-pengamat
- https://ekonomi.bisnis.com/read/20230323/9/1640057/ada-uu-cipta-kerja-investasi-asing-di-ri-bakal-naik-drastis
INA and DFC Cooperate to Boost Investment
The Indonesia Investment Authority (INA) and the US International Development Finance Corporation (DFC) have signed a memorandum of understanding (MoU) to catalyze investment and promote economic development.
As a follow-up of the letter of intent signed by both parties in 2020, the MoU highlights the economic relations between the US and Indonesia, and INA’s dedication to foster a collaborative environment with global investors. DFC’s expertise in financing and investing will enable INA to expand its investment in key sectors.
With the MoU, DFC will be involved in various renewable energy projects. DFC Chief Executive Officer Scott Nathan has met with the government, businesses, and financial institutions to explore energy projects, specifically on the decommissioning of coal-fired power plants (PLTU) and geothermal and solar energy projects.
Related links:
- https://id.usembassy.gov/indonesia-investment-authority-and-u-s-international-dfc-execute-memorandum-of-understanding-to-catalyze-investments-in-indonesia/
- https://dinsights.katadata.co.id/read/2023/03/24/ina-dfc-to-boost-renewables-investments
Fed Raises Interest Rate
The US Federal Reserve has increased its key rate by 0.25 percentage points in an effort to curb high inflation, despite fears the decision could further worsen the financial turmoil caused by recent bank failures. Fed officials predicted there will be one more rate increase this year, but it would also consider incoming data and the evolving outlook as rising rates might put more pressure on banking institutions and hurt other lenders, Fed Chair Jerome H Powell said.
Citigroup CEO Jane Fraser said the US banking industry is still relatively sound and has adequate capital despite the current circumstances, and praised US regulators for acting quickly to prevent negative effects spreading to other institutions.
Following the interest rate increase, the rupiah exchange rate strengthened by 1.04 percent to Rp 15,180 per US dollar. The weakening dollar is due to the market’s projection that the Fed will issue a more relaxed policy in the near future despite the interest rate increase.
Related links:
- https://www.bbc.com/news/business-65041649
- https://finansial.bisnis.com/read/20230323/90/1639903/tiga-bank-as-bangkrut-ini-perhitungan-bos-citigroup
- https://www.cnbcindonesia.com/market/20230324084350-17-424104/dampak-keputusan-fed-rupiah-terbang-1
Member Announcement: ChildFund International in Indonesia
ChildFund International in Indonesia is ion dedicated to protecting the rights of children in Indonesia. It firmly believes media plays a vital role in advocating for children's welfare, and has partnered with passionate Indonesian journalists to protect children's online safety.
A significant percentage of Indonesian children aged 5-6 years old (39.97 percent), and even those 4 years old and younger (18.79 percent), have access to the internet (Statistics Indonesia, 2022). As household spending continues to rise, more and more children are being exposed to the risk of cyberbullying.
ChildFund International in Indonesia conducted extensive research in East Nusa Tenggara, Central Java, Lampung, and Jakarta from July to October 2022, to provide recommendations for protecting children in both offline and online spaces, with a focus on cyberbullying and cyber-victimization.
The findings of the research were alarming, with 49.1 percent of high school and university students bullying others online, and 58.6 percent were victims of cyberbullying within a three-month period, highlighting the urgent need for action to protect children's online safety in Indonesia.
ChildFund International in Indonesia's media partners were quick to raise awareness of this issue. They recognized the importance of protecting children from cyberbullying and have been actively advocating for the implementation of policies and programs to address the issue.
The media's role in advocating for children's welfare cannot be overstated. It has the power to bring about change and create a safer environment for children. ChildFund recognizes this and is committed to working with its media partners to create a better future for children in Indonesia.
Jokowi Bans Breaking Fast for State Apparatus
President Joko Widodo has instructed government heads of state civil apparatus (ASN) to refrain from holding breaking fast together, commonly known as buka puasa bersama (bukber), under Cabinet Secretary Regulation 38/Seskab/DKK/03/2023.
The restriction is due to: Indonesia is still transitioning from pandemic to endemic status of Covid-19, and to emphasize the need for state apparatus to live a modest lifestyle and not conduct a lavish bukber, especially in the face of recent scandals.
Cabinet Secretary Pramono Anung said this does not apply to the general public. Protests against this restriction have been aired by politicians and members of the government. It is wrong to target bukber, while neglecting the fact that malls, concerts, and mosques are already crowded and without strict mask protocols, said House of Representatives member Yandri Susanto.
Related links:
- https://kumparan.com/kumparannews/alasan-jokowi-larang-pejabat-bukber-asn-harus-hidup-sederhana-204TcKsdZRA/3
- https://www.liputan6.com/news/read/5241030/jokowi-tiadakan-bukber-ramadhan-2023-di-kalangan-pejabat-dan-asn-dpr-konser-dan-mal-ramai
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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
