Friday, June 14, 2024
Indonesia Business Post Media Group aims to promote Indonesia’s business transparency and investment opportunities to global companies and investors. We provide information on business intelligence and opportunities within Indonesian political changing-driven international business context.

Following the Annual General Meeting of Shareholders on June 11, 2024, PT GoTo Gojek Tokopedia (GOTO) witnessed significant leadership changes, with William Tanuwijaya and Melissa Siska Juminto stepping down. This transition marks a new phase for Indonesia’s largest tech conglomerate, formed by the 2021 merger of Gojek and Tokopedia, combining ride-hailing, financial services, and e-commerce. Andre Soelistyo also resigned, while new appointments included John A. Prasetio as an Independent Commissioner and Patrick Sugito Walujo as CEO. These changes aim to strengthen GOTO’s governance and strategic direction as it navigates the competitive Southeast Asian tech landscape. 

The Trenggalek Regency Administration in East Java is exploring carbon trading as a new fiscal scheme to increase local revenue, adopting the theme of net zero carbon as part of its strategy to support the national target for 2060. 

Indonesia’s Minister of Maritime Affairs and Fisheries, Sakti Wahyu Trenggono, recently disclosed alarming evidence of modern slavery within the country’s waters, particularly in the Aru Islands Regency, Maluku. Trenggono revealed that around ten bodies, presumably crew members from squid fishing vessels, are discovered monthly in Dobo City, indicating severe abuse and mistreatment on domestic ships. He linked these practices to the transshipment of fish products, with crew members often trying to escape when docking. In response, the government has urged the Maluku Regional Police to investigate and is reassessing transshipment policies to prevent such abuses. Highlighting the severity, the government previously captured the Run Zheng 03 vessel for illegal activities, including human trafficking. International organizations like the Walk Free Foundation and the ILO have also identified Indonesia as a medium-risk country for modern slavery in the fishing industry, exacerbated by overfishing and illegal practices that jeopardize fishermen’s safety.

Residents of Dairi Regency in North Sumatra protested outside the Chinese Embassy and the Supreme Court in Jakarta against the development of a zinc and lead mine by Dairi Prima Mineral (DPM), citing extreme risks to local villages. Led by Mangatur Lumban Toruan, the demonstrators highlighted the dangers of dam collapses on unstable ground, which can cause fatalities and environmental destruction. The protest followed reports that a Chinese state-controlled corporation, through Carren Holdings Corporation Ltd., would fund the project with $245 million. Despite expert warnings about the tailings dam’s high collapse risk, the company still pursued the project.

Minister of Finance, Sri Mulyani Indrawati, says spatial poverty remains a significant challenge for Indonesia that the government is actively working to reduce poverty levels in line with the improving national economic growth. Overall, the poverty levels in most provinces have dropped below pre-COVID-19 levels, indicating a recovery in Indonesia’s economy after the pandemic crisis. Sri Mulyani cited several provinces still face increasing poverty rates. The ministry is expected to decrease the poverty rates through the state budget, as part of the state’s commitment in decreasing poverty in Indonesia.

PT Pertamina EP, a subsidiary of Pertamina, has identified global geopolitical conditions as a significant challenge for Indonesia’s oil and gas industry due to their impact on supply chains. The company emphasized that conflicts and wars worldwide can disrupt the upstream oil and gas sector. These challenges threaten the country’s long-term oil and gas production goals for 2030, which aim for one million barrels of oil per day or 12 billion cubic feet of gas per day. Despite these hurdles, the company expressed confidence that these targets are achievable.

Image: @antaranews.com

Coal and electric vehicle company PT TBS Energi Utama Tbk (TOBA) – which 10% of shares are owned by Coordinating Minister for Maritime Affairs and Investment Luhut Panjaitan – has allocated between US$ 50 million and US$ 60 million of capital expenditure (Capex) for the year 2023. The Capex would be allocated for the development of the new EVs and the renewable energy with its subsidiaries.

Image: @Bayan resource

PT Bayan Resources Tbk. (BYAN) has absorbed capital expenditure (Capex) of US$ 166.2 million on the construction of a coal transport road, overland conveyor and a barge loading facility in Muara Pahu, East Kalimantan. The company seeks to increase its 2023 coal production targets to over 45 million tons, an increase compared to 2022 which was below 40 million tons.

Image: @Tribunnews

Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia announced that investment realization from January to September 2022 has reached IDR 892.4 trillion – or 74.4% of the target – both foreign and direct investments. He was upbeat that his ministry could reach a targeted investment of IDR 1,200 trillion for the year 2022.

Image: @ajaib.co.id

PT Galva Technologies Tbk (GLVA) has planned to allocate IDR 80 billion of Capex for 2023 to strengthen the company’s recurring income through managed services business model.

A number of members of the Prabowo Subianto-Gibran Rakabuming Raka election winning team (TKN) have been awarded management supervision posts within Indonesia’s State-owned enterprises (SOEs) in post-2024 presidential election. […]
State electricity company PT PLN has secured a lending facility from a consortium of the World Bank, Canada Clean Energy & Forest Climate Facility and Clean Technology Fund amounting to US$581.5 million for increased access to electrification in the country, energy transition programs and the […]
Dozens of activists of the Mining Advocacy Network (Jatam) and representatives of residents living in eastern Indonesia provinces held a sit-in as the Indonesian Nickel and Cobalt Conference was underway at the Mulia Hotel in Jakarta on Thursday, June 13, 2024. […]
A legislator with the House of Representatives’ (DPR) Agriculture, Environment and Forestry Commission IV, has called on the Ministry of Environment and Forestry (KLHK) to conduct research on river water in mining areas potentially contaminated by illegal mining activities. […]

New opportunities

PT Perusahaan Listrik Negara (PLN), Indonesia’s state-owned electricity company, has announced plans to construct three new wind power plants (PLTB) − PLTB Timor, PLTB Tanah Laut, and PLTB Sulbagsel − by 2027 with a combined capacity of 152 MW. […]
Bali will introduce a Light Rail Transit (LRT) system following the completion of the feasibility study for the project. The initial phase of the LRT will feature a track stretching from Ngurah Rai Airport to the Sunset Road area. […]
SKK Migas reveals that China has expressed interest in utilizing Enhanced Oil Recovery (EOR) technology to rejuvenate Indonesia’s aging oil fields, potentially boosting production and reserves significantly. […]
President Joko Widodo met with a delegation of the South Korea-United Arab Emirates Business Association at Merdeka Palace in Jakarta on Wednesday, discussing potential investments in Indonesia’s oil refining sector. […]
Defense Minister Prabowo Subianto met with Saudi Arabia Crown Prince Muhammad bin Salman (MBS) in Jeddah on Wednesday, June 12, 2024, discussing measures to expand Indonesia-Saudi bilateral relations and global issues, including the situation in Palestine. […]
Coordinating Minister for the Economy, Airlangga Hartarto, says that the government is considering nuclear energy collaboration with Russia to enhance domestic electricity availability and support Indonesia’s energy infrastructure development. […]
President Joko Widodo said Indonesia aims to cut its fiscal deficit to less than 3% of its gross domestic product next year for the first time since 2019. […]
Indonesian government officials should remain vigilant against the potential threat to the state ideology, the nation’s peace and harmony, despite the decline in online radicalization following the defeat of the Islamic State of Iraq and Syria in the Middle East and worldwide. In an era […]
The program, dubbed the “Partnership for Global Infrastructure and Investment” (PGII), aims to mobilize $600 billion by 2027 in investments for infrastructure in developing countries with an emphasis on sustainable and secure development. Neither President Biden nor the White House fact sheet explicitly mentioned China […]
Governor of Bank Indonesia (BI) Perry Warjiyo gave the latest signal regarding the benchmark interest rate which is currently at its lowest level of 3.50 percent. According to Perry, the national economic condition is still conducive enough to continue the BI rate policy going forward. […]
Ex-terror convict Abu Bakar Ba’asyir, known as the spiritual leader of shadowy militant group Jemaah Islamiyah that aims to establish an Islamic state in Indonesia, did the unthinkable on Wednesday as he participated in the Independence Day ceremony at his boarding school in the Central […]
Both of United Kingdom and Germany also other Europe countries have been predicted they will go and meet energy crisis as the impacts of Russia’s invasion in Ukraine. The UK’s Green Party has proposed permanently nationalizing the country’s five major energy companies to ease the […]