Tuesday, July 16, 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.

PT Kilang Pertamina Internasional (KPI), a subsidiary of State oil and gas company Pertamina, is inviting investors to join the Green Refinery Cilacap project, which has completed its first phase construction and is moving forward with Phase 2. Phase 2 aims to double the Hydrotreated Vegetable Oil (HVO) processing capacity from 3,000 barrels per day (bpd) to 6,000 bpd and to increase the sustainable aviation fuel (SAF) bio-component from 2.4 percent to 100 percent. This refinery is one of the National Strategic Projects (PSNs) intended to help the government achieve its renewable energy mix target of 23 percent by 2025. Isnanto Nugroho, Director of Planning and Business Development at KPI, emphasized KPI’s openness to strategic partners for the Green Refinery Cilacap project. Isnanto highlighted the company’s readiness to collaborate with investors interested in the massive Green Refinery Cilacap project.

Indonesia’s utilization of geothermal energy has reached just 2.4 gigawatts (GW), a mere 10 percent of its total potential of 23.9 GW that industry players call for clearer regulations and incentives from the government to optimize this significant renewable energy resource.

With the 79th Indonesia Independence Day celebration approaching in a month, rumors have emerged regarding President Joko “Jokowi” Widodo’s potential delay in relocating his office to the new capital city, Nusantara (IKN). As of now, there is no definitive timeline for Jokowi’s move to IKN, and he has not yet issued a Presidential Decree (Keppres) to formalize the capital’s relocation from Jakarta to Nusantara. When questioned about the preparations, Jokowi inquired about the readiness of essential infrastructure such as water, electricity, and facilities. Jokowi emphasized that he is not in a rush to sign the Keppres, suggesting it could be issued either before or after his term ends in October 2024.

The House of Representatives (DPR), approved a proposal for State Capital Injection in 2025 for State utility company PT PLN amounting to Rp3 trillion (US$185 million) to support the company’s 100 percent Electrification as part of its commitment on energy justice.

A senior officer with PT Bank Danamon Indonesia (BDMN) reveals that the bank aims for double-digit loan growth in 2024 upon monitoring positive trend of the bank’s lending so far. Ivan Jaya, Head of Consumer Funding & Wealth Business at Bank Danamon, highlighted that one of the key drivers of this growth is the consumer business segment, particularly in mortgage loans (KPR). The bank has also seen growth in credit card issuance within the consumer sector.

The government will issue permit extension for PT Freeport Indonesia (PTFI) before the end of President Joko Widodo administration in October 2024, said Minister Bahlil Lahadalia. Previously, Bahlil said that he will announce the extension of Freeport special mining permit from 2041 to 2061 once he signs it. Currently, the Indonesian government negotiation team and Freeport McMoran nearly agree on the points of negotiation. 

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.

The obligation to allocate 60 percent of natural gas production for the domestic market (DMO) is expected to increase the utilization of the glass industry to 90 percent, says the Flat and Safety Glass Association (AKLP) in a statement. […]
A subsidiary of state owned energy company Pertamina, Pertamina New & Renewable Energy (Pertamina NRE) and Coal Power Generation Company Bangladesh Limited (CPGCBL) have signed a Memorandum of Understanding (MoU) of 500 MW grid-connected solar PV project at Moheshkhali area of Cox’s Bazar, Bangladesh, and […]
The Financial Services Authority (OJK) has given the green light to the Muhammadiyah Muslim organization to establish or acquire an Islamic bank in Indonesia, citing the authority’s objective of fostering the growth of a robust and competitive Islamic banking industry. […]
State electricity company PT PLN energizes the first transmission line connecting its 150 kiloVolt (kV) Kolaka Substation in Kolaka regency, Southeast Sulawesi, with the substation of PT nickel mining company PT Ceria Nugraha Indotama (CNI), part of the Ceria Group. […]

New opportunities

State-owned construction and investment company PT Pembangunan Perumahan (PP) is set to undertake a significant energy sector project valued at approximately Rp2 trillion (US$123.4 million). […]
PT Perusahaan Gas Negara (PGN), a gas subholding of State energy company PT Pertamina, is working on several strategic gas pipeline projects, including the Cisem Phase II project in which PGN will synergize with the government to distribute gas from East Java to West Java. […]
PT Kilang Pertamina Internasional (KPI), a subsidiary of State oil and gas company Pertamina, is inviting investors to join the Green Refinery Cilacap project, which has completed its first phase construction and is moving forward with Phase 2. […]
The Indonesian Central Bank (BI) has broadened its international payment cooperation network by signing a Memorandum of Understanding (MoU) with the Bank of Korea (BoK) for QR code-based payments. […]
President Joko “Jokowi” Widodo departed for Dubai, United Arab Emirates (UAE) on Tuesday, July 16, 2024 in a move to discuss investment opportunities in Indonesia’s new capital city (IKN) with UAE business leaders. […]
Minister of Manpower, Ida Fauziyah, has revealed that the Indonesian government is working to strengthen labor cooperation with the People’s Republic of China. […]
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 […]