AmCham Update
AmCham Update Vol. 3 #108
Healthcare Bill Criticized, Inflation at 7-year High, IndoVac Approved, 127 Killed in Football Crush, OPEC+ Production Cut
Oct 03, 2022


DPR Criticized Over Omnibus Healthcare Bill

Five medical professional associations have criticized the House of Representatives Legislative Body’s (Baleg DPR) decision to include the Omnibus Healthcare Bill in next year’s National Legislation Program (Prolegnas) priority list. The associations say lawmakers have not included healthcare professionals and other relevant stakeholders in the regulation making process, which contradicts the World Health Organizations’ (WHO) mandate.

Indonesian Medical Association (IDI) Chairman Adib Khumaidi said the associations have not received the draft of the Bill and there are concerns it will negate existing regulations which have been effectively implemented. The content of the Bill, however, remains unclear.

In response, the DPR said the Bill is a government initiative which has yet to reach DPR discussion, and stakeholders will be involved in the discussion process. The Bill is expected to complement existing laws on the global health system, a DPR member said. 

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Indonesia Sees Highest Inflation for 7 Years

Indonesia’s headline annual inflation rate rose to 5.59 percent in September, from 4.69 percent the previous month. Driven by increasing oil prices and disruptions in global supply chains, the rate exceeded Bank Indonesia’s target range of 2 percent to 4 percent this year and is the highest since October 2015. Head of Statistics Indonesia (BPS) Margo Yuwono said inflation could increase further this month as many regions have not yet hiked transportation fares.

To control the expected inflation, Bank Indonesia has raised its benchmark interest rate over the past two months to 4.35 percent. Economists say the government should impose more effective monetary policies and continuously monitor basic needs supply. Meanwhile, the prices of mining products subject to exit duty (BK) decreased last month due to lower global demand. Prices of commodities such as manganese, copper, and zinc concentrates decreased 0.17 percent.

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AmCham Cares: Mars

Mars Symbioscience Indonesia, a business unit of Mars Incorporated, a maker of chocolate for more than 100 years, took part in the Forest, Agriculture Commodities and Trade (FACT) Dialogue talk show and showcase on Sept 29, showcasing its sustainable cocoa sourcing approach. The event was attended by country representatives from the UK, Germany, Indonesia, related ministries, and the public.

During the talk show, Mars was represented by Fay Fay Choo, Asia Cocoa Director, who shared the company's work which aligns with FACT’s four pillars in research, development and innovation; smallholder support; traceability and transparency; and trade and market development, bringing Mars' diverse perspectives and recommendations to inform the dialogue.

Mars has been working in Indonesia for more than 25 years and its focus has been on research and development, cocoa sustainability sourcing, and the supply chain. The company aims to transform how it does business today so it can be a positive force for people and the planet tomorrow. The Sustainable in a Generation (SIG) Plan guides Mars for purposeful growth, a healthy planet, thriving people, and nourishing wellbeing. The company launched the Cocoa for Generations (C4G) strategy in 2018 as part of its SIG plan, with the aim to combine change efforts and work together with the cocoa sector in a new approach to protect children, preserve forests, and increase farmer income today.

“We've been working with cocoa farmers in Indonesia for more than 10 years, and now backed by our Cocoa for Generations Strategy launched in 2018, we have the opportunity to share the progress and learning that we have,” said Fay Fay Choo.

Mars is committed to creating a more modern, inclusive, and sustainable cocoa supply chain for future generations. The company is focused on pulling learning from successes in other programs and sharing with the cocoa sector to drive positive impacts within the next few years.


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.


127 Killed in Football Stadium Crush 

Police say at least 127 people were killed and more than 100 injured after a pitch invasion and crowd stampede following the football match between Arema FC vs Persebaya Surabaya on Oct 1. Concerns have been raised over procedures used to control the situation, especially police use of tear gas to disperse the pitch invaders which led to the mass stampede, which goes against FIFA Stadium Safety and Security Regulations.

FIFA President Gianni Infantino said it was a dark day in the world of football and expressed his condolences to the families involved in the tragic incident. President Joko Widodo has ordered authorities to re-evaluate security at football games, and sports minister Zainudin Amali apologized for the incident and said authorities will look into safety at football matches.

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IndoVac Vaccine Approved

Bio Farma is in the first production stage of the IndoVac vaccine, with a target of 20 million doses. The domestically made Covid-19 vaccine was developed together with Baylor College of Medicine. Bio Farma President Director Honesti Basyir said it had immediately started production after meeting Good Manufacturing Practices (GMP) and receiving an Emergency Use Authorization (EUA) from the Food and Drug Supervisory Agency (BPOM). There are plans to donate Indovac to lower-middle income countries, as the Ministry of State Owned Enterprises (BUMN) and Ministry of Foreign Affairs have started exploring regions that may need the vaccine.

Meanwhile, 1,322 new Covid-19 cases were reported on Oct 2 by the Covid-19 Task Force, a fall from 1,639 the previous day. There were 17,434 active cases, 1,575 recoveries, and 10 deaths. There were are also 1,919 suspected cases, with 34,111 specimens examined in the previous 24 hours. Some 204,605,084 people have received their first dose of the Covid-19 vaccine, 171,216,741 the second dose, and 63,640,864 the third. The fourth dose has also been given to 622,295 people.

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OPEC to Cut Oil Production to Boost Prices

The OPEC alliance will consider cutting oil production by more than a million barrels per day (bpd) starting this week, sources said on Oct 2, to address falling oil prices and severe market volatility due to concerns over global economic downturns and the Russian invasion of Ukraine. The alliance plans to meet on Oct 5, when the plan will be further discussed. Global oil prices, particularly West Texas Intermediate (WTI) crude, have risen approximately 3 percent since the plan was announced.

OPEC consists of 13 OPEC members and 11 non-OPEC members, with Saudi Arabia and Russia being the top leaders. The move is against US pressures on the group to raise output to help the global economy, and would be the biggest cut since 2020 when demand plummeted. A source said the cuts could also include a voluntary additional reduction by Saudi Arabia.

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Manufacturing PMI Shows Expansion

Indonesia’s manufacturing sector continues to expand with a rise in the country’s manufacturing Purchasing Managers Index (PMI) from 51.7 in August to 53.7 in September. Minister of Finance Sri Mulyani Indrawati said this is a sign Indonesia’s manufacturing performance has improved. The figure is favorable compared to neighboring countries such as Malaysia (40.2), the Philippines (50.9), and Thailand (48.9), but is still is still below the global average of 54.1.

September was the 13th month in a row that Indonesia's PMI was above 50, and IHS Market said it was the fastest growth over the past eight months and most solid overall. Even though Indonesian manufacturing players believe output will continue to increase over the next year, IHS market said the country's PMI levels may drop.

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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.

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