AmCham Update
AmCham Update Vol. 3 #100
New Jakarta Governor Next Month, 2023 Minimum Wage, Fossil Fuel Vehicle Restrictions, New Cargill Corn Wet Mill
Sep 14, 2022


Jakarta Governor Anies Baswedan’s Term of Office to End Next Month

Anies Baswedan’s term as Governor of Jakarta will officially come to an end on October 16, as announced by the Jakarta City Council (DKI DPRD) during a plenary meeting on Sept 14. The meeting was held in response to a letter from Minister of Home Affairs Tito Karnavian requesting the council arrange a meeting to announce regional chiefs whose tenure will expire in 2022. Anies said he will carry out his duties as governor until the end of his term.

After the plenary meeting, the DKI DPRD held a joint leadership meeting (Rapimgab) to determine three proposed candidates for the role of Acting Governor of DKI Jakarta until the 2024 elections. The three shortlisted candidates are Secretary to the President Heru Budi Hartono, Jakarta Secretary Marullah Matali, and Sociopolitical Affairs Director General Bahtiar. Three additional nominees will also come from the Ministry of Home Affairs, before being handed over to President Joko Widodo.

Ministry of Home Affairs Spokesperson Benny Irwan said the six candidates would then be vetted in a process involving several ministries and state institutions, and will end with the President appointing whom he sees most fit to be interim governor.

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Kadin: 2023 Minimum Wage Must Follow Inflation Rate

The Indonesian Chamber of Commerce and Industry (Kadin) has said the increase in the minimum wage next year will be based on complex considerations, such as inflation pressure and decreasing productivity. The minimum wage in 2022 has increased by 1.09 percent, while the inflation rate last year was 1.87 percent. Bank Indonesia projected this year’s inflation rate to reach 5.24 percent.

The recent increase of fuel prices is a matter of great concern to workers, Chairperson of Kadin Arsjad Rasjid said. Some worker unions across the country have held mass protests to demand the government reverse its fuel price policy. The fuel price hike will increase the price and fees in several sectors, especially the logistics and transportation sectors, Arsjad added. Large-scale industries will not be significantly impacted as they use non-subsidized fuels, unlike micro, small, and medium-sized enterprises (MSMEs).

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AmCham Cares: Grand Hyatt

Grand Hyatt Jakarta has partnered with Octopus, an inspiring startup which supports the circular economy through the collection, recycling and redistribution of waste. In August 2022 alone, the hotel produced more than two tons of waste, comprising of food, landscape, plastic and other types of waste from its day-to-day operations.

The partnership allows the hotel to take on a more sustainable waste management approach and simultaneously empower local communities who make a living out of waste recycling. For more sustainable initiatives at Grand Hyatt Jakarta, please visit grandhyattjakarta.com.


Let Us Know Your Recent Social Responsibility Initiatives!

We have received positive responses for this program and would like to continue featuring your CSR stories and best practices. It is wonderful to learn the great things that our members are doing for the community.

Contact awis.mranani@amcham.or.idwith your CSR stories.


Cargill Inaugurates Corn Wet Mill in Pandaan

Cargill inaugurated its corn wet mill in Pandaan, Pasuruan, Surabaya, on Sept 8 to meet the growing demand for starches, sweeteners and feeds in Asia and Indonesia. The $100 million facility, built during the pandemic, will benefit the local economy by creating up to 4,000 new jobs and employment opportunities, and help with the development of Indonesia’s food and beverage industry.

The growth outlook of the food and beverage industry in Indonesia is predicted to be 7 percent post-Covid-19, resulting in rising demand for corn starches, which often have to be imported from international markets. Cargill’s new corn wet mill will bring the much-needed high quality ingredients to these industries. This aligns with the Indonesian government’s vision of import substitution while also increasing the export of value-added products.

“The new facility allows us to purchase corn and convert it into corn-based starches and sweeteners, so that we can better meet customer needs both in Indonesia and international markets. We believe with the new mill we can better support the government in growing Indonesia’s food and beverage industry by enhancing capacity as well as competitiveness in the international markets. We are also grateful for the strong support we have received from governments at all levels with this project,” said Ming Peng, Managing Director of Cargill Starches, Sweeteners, and Texturizers Asia.

CLICK HERE FOR CARGILL'S PRESS RELEASE

 


Luhut Discusses Plans for Fossil Fuel Vehicle Restrictions

The government plans to issue a regulation restricting the sale of fossil fuel-powered vehicles, Coordinating Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan revealed in a social media post. Indonesia's vehicle electrification is currently hampered by the high price of electric vehicles and limited options, he said. Relevant ministries and institutions have been told to implement policies similar with other countries who have implemented fossil fuel vehicle restrictions.

The plan aims to accelerate the adoption of electric vehicles and reduce fuel subsidies and carbon emissions in the country. Indonesia has a roadmap toward net-zero emissions in 2060. It is mentioned in the roadmap that the government aims to gradually stop all sales of fossil fueled vehicles by 2040.

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US Inflation Rose in August

US inflation rose again in August, according to data from the Bureau of Labor Statistics. Only the volatile gasoline category showed a significant decrease from July, dropping 10.6 percent, while other categories saw price increases. 

According to the Consumer Price Index, consumer prices rose 0.1 percent from July, going against what economists had projected would be a fall from July to August of 0.1 percent. Annual inflation has slowly decreased with prices up 8.3 percent, compared to the 8.5 percent hike in July, and 9.1 percent in June.

In response, US stocks fell with investors hoping the Federal Reserve will take more drastic measures to control inflation. One economist said this will potentially impact the Indonesian economy through higher interest rates and disruption of export performance to the US.

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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 transitioning back to the office. We are still maximizing online meetings, using the Zoom platform, but starting to have in-person meetings. You will be notified of the 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.

Oct 07, 2022 / 09:00 - 10:30
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