AmCham Update Vol. 4 #49

Luhut Lands Another Key Leadership Role, Corporate Citizenship Committee Kicks-Off, AmCham Joins USAID SEGAR Investment Leverage Discussion, USAID Summary of Job Creation Perppu

May 17, 2023

Luhut Adds Nusantara to his Portfolio

President Joko Widodo appointed Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan as the chairman of the special task force to accelerate investment realization of the new capital city Nusantara (IKN), on May 15.

The task force will coordinate inter-ministerial efforts to attract investment for the new capital. The government has also established a one-stop shop unit to cater to the demands of Nusantara investors and fix issues, mostly related to land purchases.

IKN Authority Chair Bambang Susantono said it had received 209 letters of interest, 36 of which had entered the stage of signing a non-disclosure agreement. However, the realization is proceeding slowly.

Urban Planning Expert Nirwono Yoga said Luhut's appointment was a response to many potential investors remaining skeptical and awaiting confirmation the project would continue once a new president is elected in 2024.

The investment realization strategy will be made public soon by the task force.

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USAID Issues Summary of Job Creation Perppu

The USAID Economic Growth Support Activity (EGSA) has released a comprehensive English language summary of Government Regulation in Lieu of Law (Perppu) Number 2 concerning Job Creation, which attempted to fix the Omnibus Job Creation Law/2020 after it was declared conditionally unconstitutional by the Constitutional Court over procedural issues. The Perppu, originally issued by the president, was ratified by the DPR in March and was thus passed into law.

The Coordinating Ministry for the Economy said the Constitutional Court’s decision had affected the business climate as businesses were waiting for legal certainty from the law.

The USAID summary outlines the Job Creation Perppu’s nine main areas: enhancing the investment ecosystem and business activities; employment; facilitation, protection, and empowerment of cooperatives and micro, small and medium-sized enterprises (MSMEs); ease of doing business; research and innovation support; land acquisition; economic zones; central government investment and acceleration of national strategic projects; and implementation of government administration.

The Perppu revoked and/or added/reduced articles from 81 previous laws.

CLICK HERE TO READ THE SUMMARY

AmCham Cares: Honeywell Indonesia

Honeywell Indonesia is committed to solving social and environmental challenges to have a real impact in our communities. As part of this, Honeywell future-shapers donated to Panti Asuhan Harapan Remaja Rawamangun Jakarta for children who needed the necessary support to have a fulfilling Ramadhan.

It collected essential items such as food, school supplies and clothing for more than 30 children. Honeywell representatives also engaged with them through meaningful interaction to spread joy and happiness.

Corporate Citizenship Committee Kicks-Off

The AmCham Indonesia Corporate Citizenship (CC) Committee kicked-off its new activities with the aim to enhance further the role of companies in the global community. The meeting was led by CC Committee Chair and Corporate Affairs Director Cocoa at Mars Wrigley Indonesia, Jeffrey Haribowo, who said the role of the committee was to support members in their social programs.

The highlight of the kick-off was a brainstorming session, with companies looking for further insights on implementing their corporate social responsibility (CSR) initiatives, aligning corporate ambition with due diligence and how to better improve governance.

The meeting was productive and gave a clearer view of the sort of programming members hope to have for the remainder of the year.

For questions on the Corporate Citizenship Committee please contact [email protected]

USAID SEGAR: High-Level Discussion on Investment Leverage Strategy

AmCham Indonesia took part in the High-Level Discussion on Investment Leverage Strategy for USAID Sustainable Environmental Governance Across Regions (SEGAR), on May 15. The event discussed ways to leverage private-public partnerships and help refine USAID SEGAR’s investment leverage strategy.

The session heard lessons learned from participating organizations, the regional perspective of impact investors, and the private sector perspective on sustainable investment in Indonesia.

SEGAR is a five-year initiative funded by USAID and designed to advance Indonesia's development objectives, with the belief that better environmental governance, reduced greenhouse gas emissions, and conservation of biodiversity require participation and action from a broad range of stakeholders.

We would like to thank USAID SEGAR for inviting us to participate in the session and look forward to further engagements.

DPR Prioritizes 9 Bills

The House of Representatives (DPR) will prioritize nine Bills as members enter the deliberation period for draft legislation, in addition to others previously included in this year’s National Legislation Program (Prolegnas). The prioritized Bills include those regulating industrial design, narcotics, health, state civil apparatus, renewable energy, mother and child welfare, and civil procedural law.

DPR Speaker Puan Maharani said the DPR's main agenda includes macroeconomic and fiscal policies for the 2024 State Budget, and next year’s presidential elections.

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