#Corporate
The pros and cons of job creation Perppu: Opposed by workers, not friendly for investors
The labor unions have planned to stage a massive protest against the newly signed government regulation in lieu of job creation law (Perppu). Whereas the Indonesian Employers Association (Apindo) claimed the Perppu was a form of inconsistency in government policies that confused investors.
5 countries contribute the most to Indonesia's FDI in 2022
Despite the COVID-19 pandemic, Indonesia has surprisingly raised the value of its Foreign Direct Investment (FDI) from 2020 until 2022. As one of the most favorite FDI destination, Indonesia's FDI value increased 63.6% or IDR 168.9 trillion (US$ 10.83 billion) in Q3 2022 or 54.9% of the total expected FDI for 2022, according to Minister of Investment/Chairman of the Investment Coordinating Board (BKPM), Bahlil Lahadalia.
Top 10 biggest corruption cases in Indonesia
Indonesia has a bad record when it comes to dealing with corruption. According to Transparency International, the Corruption Perception Index of Indonesia ranked 96 out of 180 countries in 2021. Meanwhile, the 2004-2022 statistics from the Corruption Eradication Commission (KPK) show there were 1,310 corruption cases. The number keeps increasing every year. These are the top 10 biggest corruption cases in Indonesia:
Government regulation in lieu of job creation law faces criticism
President Joko "Jokowi" Widodo signed the government regulation in lieu of law (Perppu) on job creation on December 30, 2022, due to "several urgent reasons", including to anticipate the global economic condition.
Bauxite ores export ban likely to attract more investments
The government's ban on the bauxite ores export is likely to increase investments in the bauxites processing and refining industry. Economist at the Yogyakarta-based Gadjah Mada University Fahmi Radhi said one of the challenges faced by the government after the ban would be the limited bauxites smelters capacity.
Special Autonomy Fund not enough to bring prosperity for Papuans
The Special Autonomy Fund has failed to become a push factor to eliminate the so-called natural resources curse in Papua and West Papua provinces. The fund has been used to increase gross domestic product but it did not improve other sectors especially education, health sanitation and forest condition in those provinces.
Luhut Pandjaitan's statement on KPK's caught red-handed operation sparks controversy
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan considered the Corruption Eradication Commission (KPK)'s caught red-handed operation (OTT) has given a negative perception to the state. He said state officials were exposed to the antigraft body's caught red-handed operation because the state has not utilized the digital system to improve financial management at the regional and national levels.
Government to ban bauxite ores export starting June 2023
President Joko "Jokowi" Widodo announced that Indonesia would start banning the export of bauxite ores starting June 2023 to encourage the development of bauxite processing and refining industry at home. His statement came days after Indonesia filed an expected appeal against a World Trade Organization (WTO) panel ruling that was in favor of the European Union (EU) in a dispute over the ban on nickel ore exports.
Pertamina Hulu Energy, Pertamina Geothermal Energy to go public
The Ministry of State-Owned Enterprises has planned to launch an IPO for two state oil and gas giant PT Pertamina's subsidiaries, namely PT Pertamina Hulu Energy (PHE) and PT Pertamina Geothermal Energy (PGE).
Ministries have split opinions on Freeport smelter progress and export tax reduction
Gold and copper mining giant PT Freeport Indonesia (PTFI) has yet to receive export tax reduction for their copper concentrate export as Indonesian ministers have not agreed on the percentage of the company's smelter progress in Gresik, East Java.
G20 electric vehicles are up for sale with a discount and allocated for government needs
The electric vehicles used for the G20 Summit in Bali in November 2022 are currently being sold at a discounted price or allocated for other government needs. Indonesia has committed to switch from fossil fuels to renewable energy by using electric vehicles - cars, motorcycles and buses - for the event’s mobility needs.
China controls Indonesia's nickel industry
China has dominated Indonesia's nickel industry, according to a lawmaker and an observer. A member of the House of Representatives' Commission VII overseeing energy and mineral resources and industry, Zulfikar Hamonangan, probed Minister of Energy and Mineral Resource Arifin Tasrif in a hearing that 90% of nickel mines in Indonesia was under China's control.