AmCham Update
AmCham Update Vol. 3 #128
Halal Progress, Shaking, 10% Minimum Wage Cap, COP27 Success, APEC Summit, Digital Layoffs to Continue
Nov 21, 2022


Halal 20: The Global Halal Partnership for a Robust, Sustainable Future

AmCham Indonesia attended the Halal 20 (H20) Forum, on Nov 17-19, which is the G20’s engagement group for halal cooperation. Vice President Ma’ruf Amin stressed the importance of international cooperation through mutual recognition and acceptance of halal product assurance to maximize the potential of the global halal market.

Delegates also discussed setting up an international halal standard to advance the implementation of halal certification. A memorandum of understanding between Indonesia’s Halal Product Assurance Agency (BPJPH) and Turkey’s Helal Akreditasyon Kurumu and a letter of intent with the Korea Testing Certification Institute were signed during the event.

The forum brought together foreign halal certifier bodies, foreign government representatives, and companies, and wrapped up with the release of a communique containing joint commitment points on global halal partnership and development.

While the government-to-government requirement for foreign halal certification recognition has become more flexible, AmCham looks forward to further clarifications on the progress and implementation of international cooperation on halal product assurance.

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Yes, That Was an Earthquake

If you felt shook up this afternoon, it was not in your mind. A magnitude 5.6 earthquake rattled Jakarta for several seconds today, Nov 21, the weather and geophysics agency (BMKG) said.

The epicenter was in Cianjur, West Java, about 75 km southeast of Jakarta, and at a depth of 10 km, BMKG said, adding there was no potential for a tsunami.

Some people evacuated offices in the central business district of Jakarta, while others reported feeling buildings shake and seeing furniture move, witnesses said.

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10% Ceiling on 2023 Minimum Wage Rise

The Ministry of Manpower has officially increased the minimum wage to a maximum of 10 percent, in Minister of Manpower Regulation 18/2022 concerning the Determination Minimum Wage in 2023. Considerations for the increase include the impact of inflation and changes in socio-economic conditions. Minister of Manpower Ida Fauziyah said the current minimum wage cannot keep up with the pace of increase in the price of commodities, and will lead to a decrease in worker spending power. Provincial and city minimum wage increases are slated to take effect on Jan 1, 2023.

The business community has been supportive of the minimum wage increase, but is not content with the timing. Chairman of the Employment Sector of the Indonesian Employers’ Association (APINDO) Anton J Supit expressed his disappointment over the minimum wage increase happening in the middle of a tumultuous economic situation. He said companies will abide by the salary rise, but layoffs could be a result of having to increase wages.

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COP27 Pushes Forward Climate Fund

The 2022 United Nations Climate Change Conference (COP27) has secured commitments on climate funding which will be allocated to help countries deal with climate change impacts. The two-week summit held in Sharm el-Sheikh, Egypt, From Nov 6-18, brought together countries in consensus to establish a funding mechanism to compensate vulnerable countries for “loss and damage” from climate-induced disasters.

Developing nations have been the focal point of efforts to create the fund, finally getting the backing of prosperous emitters to deal with their climate issues. Getting the fund operational will be the next summit’s hot topic, under the responsibility of a transitional committee.

However, COP27 fell short in securing commitments from nations to cut emissions such as eliminating all forms of fossil fuel. German Foreign Minister Annalena Baerbock expressed her frustration that the discussions on emission cuts were “stonewalled by a number of large emitters and oil producers.”

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APEC Summit Concludes in Bangkok

Economic leaders of 21 APEC members issued the 2022 Leaders’ Declaration and the Bangkok Goals on the Bio-Circular-Green Economy at the conclusion of the 29th APEC Economic Leaders’ Meeting held in Bangkok Nov 18-19. Under the theme “Open, Connect, and Balance,” the leaders discussed issues related to regional economic development, digital economy advancements, UN Sustainable Development Goals (SDGs), and security issues.

In the forum, President Joko Widodo noted two priority areas for global economic recovery: building a resilient supply chain and cooperation in the creative industry as a new source of growth. President Widodo also backed the establishment of the APEC Food Security Roadmap toward 2030 to maintain food security in the region.

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Mass Layoffs in Digital Startups to Continue

As job seekers aspire to work at tech startups, mass layoffs are hitting a number of big digital startups in Indonesia and globally, including in the fields of fintech, edutech, and healthtech. The layoffs were triggered by the high cost of investment due to rising global inflation and interest rates, particularly in developed countries, said Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira.

Other experts said the over-optimistic nature of leadership in these digital companies may also have played a role in the recent wave of layoffs, as they burn through investment capital to build their businesses too quickly. The wave of layoffs is expected to continue next year as the impact of current geopolitical tensions and the threat of a global recession will increase competition in seeking financing and investment.

Other sectors such as garments, textiles, and footwear are also under threat of layoffs. The Employees Social Security Program (BP Jamsostek) said that from August to October there was a 2.6 percent decline in participation from these labor-intensive industries. However, BP Jamsostek will continue to actively monitor the situation, and optimize the Job Loss Guarantee (JHT) scheme in anticipation of further layoffs.

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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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