AmCham Update
AmCham Update Vol. 2 #41
Trust Declines, BI during Idul Fitri, Growth Projections, Sinopharm Jab OK’d, Japan in RCEP
Apr 30, 2021 | AmCham Indonesia

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Edelman 2021 Trust Barometer Launch

Global public relations advisory firm Edelman launched its 2021 Trust Barometer in Indonesia on April 29 at a virtual event co-sponsored by AmCham Indonesia. Entering its 21st year, the trust barometer explores public attitudes and trust in four highly influential institutions — government, business, media, and NGOs — across 28 countries.

“After a year of unprecedented disaster and turbulence – the Covid-19 pandemic and economic crisis, the global outcry over systemic racism and political instability – the 2021 Edelman Trust Barometer reveals an epidemic of misinformation and widespread mistrust of societal institutions and leaders around the world,” the company said in releasing the report.

“The Covid-19 pandemic,” the company said, “has accelerated the erosion of trust around the world.” The Trust Barometer also focused on what it called an “infodemic” of false information both in Indonesia and worldwide.

The report noted that trust in government has declined virtually everywhere, while trust in employers as a source of reliable information has remained resilient, including in Indonesia.

For more information on the Trust Barometer findings, find the country report below.

CLICK HERE FOR THE COUNTRY REPORT


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Indonesia’s GDP to Grow By 4.5% This Year: ADB

The Asian Development Bank (ADB) projects Indonesia’s gross domestic product (GDP) will grow by 4.5 percent in 2021 and 5 percent in 2022. The average inflation rate for 2020 was 1.6 percent and is expected to reach 2.4 percent in 2021 and 2.8 percent in 2022, within Bank Indonesia’s target range.

Indonesia is projected to have a trade deficit of 0.8 percent and 1.3 percent of GDP for 2021 and 2022, respectively. However, newer Covid-19 mutations, the unequal pace of vaccinations worldwide, and the tightening of global finance remain a threat to these projections.

ADB said Indonesia performed reasonably well in 2020 due to its response to the crisis. Its Asian Development Outlook 2021 projects domestic consumption will increase due to vaccinations and the reopening of the economy and will be the main locomotive of Indonesia’s economic growth.

Related link:


BI Operations during Idul Fitri

Bank Indonesia has announced how it’s operations will be impacted by Idul Fitri next month. The following activities will be suspended May 12-14:

  • Operational Activities of Bank Indonesia Real Time Gross Settlement System (BI-RTGS), a Scripless Securities Settlement System (BI-SSSS), and Electronic Trading Platform (BI-ETP).
  • Operational Activities of the Bank Indonesia National Clearing System (SKNBI).
  • Cash service activities.
  • Monetary transactions in rupiah and foreign exchange:
  • Operational activities of Jakarta Interbank Offering Rate (JIBOR) and Indonesia Overnight Index Average (IndONIA).

The implementation of banking operations is at the discretion and authority of each bank.

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AmCham Cares: Exxon Mobil

ExxonMobil believes that carbon capture and storage (CCS) is critical to meeting the emissions-reduction goals outlined in the Paris Agreement. To help answer this challenge, ExxonMobil has proposed a $100 billion hub to capture carbon dioxide emissions along the US Gulf Coast. The concept entails ExxonMobil collaborating with private and public partners to build the infrastructure needed to take emissions from refineries, petrochemical plants, and other industrial facilities along the Houston Ship Channel and safely, securely, and permanently store them offshore.

With the appropriate policy, regulatory and legal frameworks in place, the concept could sequester 50 million tons of CO2 a year beneath the Gulf of Mexico by 2030, more than all CCS projects currently operating globally. ExxonMobil believes this figure could double by 2040 and is calling for government and private-sector funding, as well as enhanced regulatory and legal frameworks that enable investment and innovation. 

This concept could be replicated elsewhere, including in the Asia Pacific region, where similar clusters of heavy industrial emissions are located near potential geologic storage sites.

More information:


Sinopharm Vaccine Approved

The Indonesian Food and Drug Monitoring Agency (BPOM) has approved the emergency use authorization (EUA) of the Sinopharm vaccine, having previously approved those from Sinovac and AstraZeneca. BPOM chief Penny K Lukito said the vaccine can be given to adults, from people aged 18 years to the elderly, and has an efficacy rate of 78 percent.

The Sinopharm vaccine will be used in the gotong-royong private vaccination scheme for companies to vaccinate their employees.

As of now, many questions remain about the gotong-royong program. AmCham currently has no information about how the Sinopharm vaccine will be distributed nor at what price. The Ministry of Health has not yet issued guidelines on gotong-royong vaccinations in private hospitals and clinics, nor how employees in different locations across the country will be vaccinated.

Related links:


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Japan Gives the Nod to RCEP Trade Pact

The Japanese parliament has given the green light to the Regional Comprehensive Economic Partnership (RCEP) after China called for its ratification to boost the Southeast Asia economy.

The China-backed RCEP was signed in November last year, and signatories are looking for it to come into effect at the start of 2022. It includes the 10 members of the Association of Southeast Asian Nations (ASEAN) plus China, Japan, South Korea, Australia, and New Zealand. By eliminating tariffs on 91 percent of goods, it will create a free-trade zone covering nearly one-third of the world’s economy, trade, and population, making it the world’s largest free-trade deal. The US is not a signatory to the deal.

Related link:


Get Katadata and Stay Updated on News and Trends

In this fast-paced world, it is often hard to stay informed on the latest political issues and business trends that may affect our lives. This is why Katadata’s D-insights provides the information we need on a daily basis, plus weekly and quarterly reports that summarize the trends and give background on the business, politics, markets, and energy.

Katadata D-insights offers a special rate for all AmCham members. The subscription for D-Insights are as follows:

Individual Subscriber:

Visit the link https://dinsights.katadata.co.id/account/subscribe for more details. Use the code "AMCHAM1" to get a special price for AmCham Members

Corporate Subscriber:

Up to four users with a special price at Rp 40,000,000 annually. Send names, emails, and quote “AMCHAM2” to [email protected]


Support Independent Journalism: Subscribe to The Jakarta Post

In these difficult times, our hometown English language newspaper, The Jakarta Post, is more important than ever. Given the difficulties of physical circulation and the economic slump, the Post needs to boost its online subscribers – a goal we heartily support at AmCham Indonesia. Quality English language news is vital for our businesses, our home offices, and the flow of information out of Indonesia. It is for this reason, that we are urging all of our members and readers to subscribe to JP! Information is what will help get us through this crisis. Below is information about how to sign up.

JP Premium Digital Subscription Packages

https://www.thejakartapost.com/packages

Monthly subscription – Rp 50,000

Yearly subscription – Rp 600,000


Now is the Time to Join AmCham!

Now is the Time to Join AmCham!

We offer a full slate of meetings, events, and information for our community online. But we can only do this through the support of our members. If you are not yet an AmCham member, please join now.

AmCham Indonesia is open to all companies with an interest in US business relations and we have many non-American members. We are a community and we welcome you!

Reach us at [email protected] or click below!

JOIN AMCHAM

 


AmCham Office and Events

AmCham Office and Events

The AmCham Office is on work from home status and all face-to-face meetings and events have been postponed. We are having a number of meetings online using the Zoom platform. You will be notified of virtual meetings as they are scheduled.

 

 


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What is Your Company Doing on COVID-19?

Please let us know what measures your company may be taking in the form of donations and other assistance to help Indonesia during this time of confusion and concern. Contact [email protected] with your news. We would like to publicize the ways that our AmCham companies are pitching in.


Stay well

We urge you to send us press releases and other information that we can pass on to the broader AmCham community. If you have items of interest, please email material to [email protected]. Follow this link to information provided by the US Embassy

Stay safe, call a doctor if you have a high fever, cough, or difficulty breathing. Stay healthy above all else.


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 is the Managing Editor