$20b for Sovereign Wealth Fund, Endemic Soon? Rooftop Solar Panels, Get on Your Electric Motorcycle, YCAB Foundation Cares
Oct 05, 2022
Sovereign Wealth Fund Draws $20b, Traveloka Secures Financing
The Indonesia Investment Authority (INA), also known as the nation's Sovereign Wealth Fund (SWF), has garnered more than $20 billion in co-investments from international investors. Singapore’s GIC and the Abu Dhabi Investment Authority are among the newcomers, expanding INA’s portfolio of international investors. Unlike many SWFs, which deal with oil revenue or foreign reserves, INA uses its funds for economic development. In this investment round, the focus extended from infrastructure to include water, logistics, and digital infrastructure.
Part of the digital investments will go to Traveloka. INA joined BlackRock, Allianz Global Investors, and other global investment companies to invest $300 million in Traveloka’s latest financing round. INA views Traveloka as an Indonesian digital champion and its investment will help build a sustainable digital ecosystem.
President Joko Widodo has announced the possibility for Indonesia to transition from pandemic to endemic status. The President has appointed Minister of Health Budi Gunadi Sadikin to meet with World Health Organization (WHO) General Director Tedros Adhanom Ghebreyesus to discuss the status based on the Public Health Emergency of International Concern (PHEIC).
However, epidemiologist at the University of Indonesia Tri Yunis Miko said the status change should be delayed by six months in order to examine the development of Covid-19 mutations in Indonesia in the coming months.
As of Oct 3, new daily Covid-19 cases globally were less than 500,000 per day, indicating a significant decrease since December 2021, when there were over 1,000,000 cases. According to a statement from Minister of health Budi Gunadi Sadikin, the number of cases in Indonesia is around 2,000 per day, indicating a drop in the weekly positivity rate to 6.38 percent. He said despite this positive development, the public must continue to be attentive in preparing for an endemic, most notably by following health standards, which include the wearing of masks.
Meta through SheMeansBusiness, the YCAB Foundation, and Rahasia Gadis under the Karya Perempuan (women work) 2.0 program, held a webinar for Karya Perempuan 17 Heroes with the theme “Realizing Financial Freedom for Women.” The event was in line with the government's plan for its G20 Presidency and aim to empower womenpreneurs.
Some 17 women entrepreneurs from micro, small and medium-sized enterprises (MSMEs) were selected to inspire and motivate other women to be financially independent. Through Karya Perempuan, women entrepreneurs are given space to market their products through the Karya Perempuan Catalog on WhatsApp Business.
The program also provides digital marketing and digital-based financial literacy training accessed using Ibu Harta’s WhatsApp Chat Bot, where training can be done anytime and anywhere. Karya Perempuan also collaborated with Rahasia Gadis by providing training to 70 Rahasia Gadis Leaders to grow young women’s entrepreneurship skills and digital literacy.
“The problems of women entrepreneurs revolve around the issue of unmet basic needs leading to high levels of poverty. This is exacerbated by the gender gap, limited time for self-development, and limited access to take advantage of opportunities and develop skills. Equipping women entrepreneurs with digital economy skills will be very useful for themselves and the country’s economic recovery,” said the YCAB Foundation.
In its first year, the Karya Perempuan program impacted 590 women from 50 cities and districts in Indonesia; while in the second year, it helped 1,634 women in 119 cities and neighborhoods.
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Ridwan Kamil Tells Factories to Install Rooftop Solar Panels
West Java Governor Ridwan Kamil has called on factories in the province to install rooftop solar panels (PLTS) as part of his provincial drive toward renewable energy. West Java has so far led the way in solar energy, generating an 8.84 megawatt peak (MWp) out of national production of 35 MWp. This initiative has gained traction among businesses, plenty of whom share the same drive to transition to renewable energy. Last year, Governor Kamil took part in inaugurating a PLTS in Danone-AQUA’s factory in the Sukabumi Regency.
However, the governor believes there is still much to be done and said state electricity company PLN's electricity oversupply remains a challenge. PLN has rejected many proposals from big companies to install rooftop solar panels at 100 percent of the installed electricity capacity. PLN's rules cap rooftop solar panels at a maximum of 15 percent of the installed electricity capacity.
Special Staff to the President (SKP) Diaz Hendropiyono hosted a focus group discussion to discuss President Joko Widodo’s target of having over two million electric motorcycles by 2025, on Oct 4. The B20 Side Event Ready to eMove, began with Diaz riding an electric motorcycle. He said the purpose of the discussion was to bring together various stakeholders to discuss challenges in achieving the two million target, and that input from the discussion will be given to the President.
Diaz’s entrance was followed by remarks from the Chair of B20 Energy, Sustainability, and Climate Task Force Nicke Nidyawati; Minister of Transportation Budi Karya Sumadi; and Speaker of The People’s Consultative Assembly Bambang Soesatyo. The discussion brought together the Director General of Metal, Machinery, Transportation, and Electronics Industry (ILMATE) at the Ministry of Industry Taufiek Bawazier; Executive Vice President Marketing & Products Development at PLN Hikmat Drajat; Director of Registry and Identification at the Police Traffic Corps Brigjen Pol Yusri Yunus; and popular Indonesian public figure Deddy Corbuzier.
The event was closed by Minister of Industry Agus Gumiwang Kartasasmita, who said he was optimistic the two million target is achievable and that ongoing support from other Ministries is important in meeting the President’s target.
Overall there was a strong consensus that the transition to electric motorcycles is a big opportunity in Indonesia’s transition to using renewable energy, while being mindful of the need for it to be affordable and accessible. However, infrastructure for renewables is still lacking and will be a challenge for Indonesia in the transition to electric vehicles.
AmCham Indonesia is grateful to have been invited to this focus group discussion, and is ready to support Indonesia’s transition to renewable energy.
Acceleration of Renewable Energy Development for Electricity Provision
On Sept 13, President Joko Widodo enacted Presidential Regulation 112/2022 concerning the Acceleration of Renewable Energy Development for Electricity Supply (PR 112/2022). PR 112/2022 was issued considering two main deliberations, which are to move up the timeline for Indonesia's goal to achieve the production target of renewable energy as well as to reduce greenhouse gas emissions in Indonesia.
The plan to switch or migrate to the usage of renewable energy in Indonesia has become a priority in recent times. The Presidential Regulation includes provisions on a number of issues, including the acceleration of renewable energy use in Indonesia, electricity procurement, local component requirements (TKDN) for electricity sources, and renewable pricing.
Indonesia was re-elected as a member of the International Telecommunication Union (ITU) Region E (Asia and Australasia) Council for the 2023-2026 term at the 22nd ITU Plenipotentiary Conference (ITU PP 22) on Oct 3. During its council membership period, Indonesia will prioritize: to connect those who aren't already connected (connect the unconnected); women's empowerment; and capacity building. These three priorities are also in line with Indonesia’s national priority program, said Secretary General of the Ministry of Communication and Informatics Mira Tayyiba.
Indonesia’s re-election demonstrates recognition of the country’s progress and achievements in the fields of information, communication, and technology. It is also a sign of the trust placed in Indonesia by member ITU countries. Mira hopes there can be stronger cooperation between Indonesia and ITU, and that the nation can be more active in ITU council activities.
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.
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 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.