AmCham Update
AmCham Update Vol. 3 #129
AmCham Raises Money for Earthquake Victims, Death Toll Hits 268, Engaging With OJK, Foxconn to Build EV Manufacturing Facility
Nov 23, 2022

Thanksgiving Networking Raises Money for Earthquake Victims

AmCham Indonesia opened a silent auction of a painting by Governor of West Java Ridwan Kamil to raise funds for victims of the Cianjur earthquake, at its Thanksgiving Networking Evening on Nov 22. “The Manhattan Night,” painted during the Covid-19 pandemic, and gifted to AmCham when Ridwan spoke at a special online session during the US-Indonesia Investment Summit 2021, had a starting price of Rp 3 million and the auction will end on Nov 30. The auction was also held in memory of the Governor's son, Emmeril Khan Mumtadz, who died in Switzerland in May.

AmCham's first in-person Thanksgiving Networking Evening for three years due to the Covid-19 pandemic, was held at the Oakwood Premier Cozmo Jakarta, and attended by over 60 members, friends and golfers, in advance of the returning Thanksgiving Golf Tournament on Nov 24.

Scott Hanna, Chair of AmCham's Board of Governors, opened the night, followed by remarks from sponsor representatives Muhammad Fauzi Irawan, Head of Global Entity Management at TMF Group (Sole Premium Sponsor); and Lina Sugiarto, Director of Sales & Marketing at Oakwood Premier Cozmo Jakarta (Venue Sponsor).

Door prizes included wine, shopping vouchers, room and dining vouchers, golf balls and an HP laptop.

Thank you to all who joined us, and special thanks to our beer and wine sponsors, Carlsberg and Hatten Wines. 






268 Killed in West Java Earthquake

The 5.6 magnitude earthquake which struck Cianjur, West Java on Nov 21, caused 268 fatalities, along with 1,083 injured and left 58,326 homeless, according to the National Agency for Disaster Management (BNPB), with hundreds of people missing. The BNPB and the National Search and Rescue Agency (Basarnas), together with help from the army and police are still searching the area for survivors.

The Meteorological, Climatological, and Geophysical Agency (BMKG) said the earthquake was the result of tectonic activity around the Cimandiri fault which goes through Cianjur. Head of BMKG Dwikorita Karnawati said it was actively monitoring the situation as further aftershocks are possible.

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AmCham Opens Engagement with OJK Non-Bank Financial Institution Chief


The newly appointed Executive Head of Non-Bank Financial Institution (IKNB) Supervision at the Financial Services Authority (OJK) Ogi Prastomiyono, hosted an in-person courtesy meeting with AmCham Indonesia at his office on Nov 21. Representatives from the US’ biggest insurance companies, payment companies, and banks attended the lively discussion with the former banker.

Ogi had a long career in the financial services sector, holding executive positions at Bank Mandiri, Bank Mandiri Syariah and other state-owned companies prior to joining the OJK. He was also the director of strategic services at the state-owned mining holding company, Mining Industry Indonesia (MIND ID).

Ogi spoke of the OJK’s priorities and its five-year plan to strengthen non-bank financial institutions especially in insurance and financial technology services, the implementation of the International Financial Reporting Standard 17 by 2025 and the need to expand mandatory insurance for more products and activities.

Companies voiced concerns over inefficient competition in the insurance industry due to distribution policies that could undermine consumer rights to get the best products. Ogi and the participants agreed insurance penetration and literacy should be pushed forward, and he welcomed continued engagement with industry to develop policies to provide better institutional protection. He also invited companies to share best practices on insurance standards, and other related topics.

The discussion also touched upon the ongoing deliberation of the Omnibus Financial Sector Bill (RUU PPSK), and how it would change the structure of non-bank financial institutions within the OJK. AmCham appreciates Ogi’s openness to public-private discussions, and looks forward to future engagements.

Foxconn to Build EV Manufacturing Facility in 2023

Taiwan's Foxconn will start the groundbreaking of its four-wheel electric vehicle manufacturing facility in Batang, Central Java in early 2023, Minister of Investment Bahlil Lahadalia said. In addition to manufacturing facilities, Foxconn will also invest in electric vehicle (EV) battery development and its supporting facilities, including energy storage systems, battery exchange stations, and battery recycling, valued at $8 billion.

Foxconn is also considering investment in technological advancements in the new capital city, Nusantara, Bahlil said. As the world's largest nickel producer, Indonesia aims to become the global EV production hub. The country has previously attracted Chinese battery giant Contemporary Amperex Technology (CATL), LG Energy Solution, and Hyundai to invest in an integrated battery supply chain system.

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Rupiah Weakens, Foreign Investors Buy Rp 8b in Govt Securities

The rupiah fell by 0.18 percent to Rp 15,713 per US dollar on Nov 21 from Rp 15,684 the previous day, due to fears of another rise in interest rates by the US Federal Reserve.

Experts say the US economy is in good shape, providing scope for the Fed to continue raising interest rates to combat inflation. Bank Indonesia is acting to stabilize the rupiah, with Governor Perry Warijyo saying it has been doing its best to intervene in the market and the recent exchange rate depreciation is still lower in comparison to other countries.

Amid the weakening rupiah, foreign investors are flocking to buy Indonesian government securities (SBN). From Nov 1-15, over Rp 8.8 trillion worth of SBN were bought by foreign investors in the secondary market. The 10-year SBN yield fell by 15.7 basis points to 7.045 percent, meaning they become more attractive for investors. The rupiah may strengthen if capital continues to flow into the SBN market.

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Indonesia Loses WTO Dispute on Nickel Export Ban

Indonesia has lost World Trade Organization (WTO) lawsuits by the European Union and other countries over its ban of nickel ore exports. The WTO Dispute Settlement Body decided the ban violated WTO provisions, said Minister of Energy and Mineral Resources, Arifin Tasrif, during a House of Representatives (DPR) hearing on Nov 21.

Put in place on Jan 1, 2020, the ban was attacked by the EU Commissioner for Trade Valdis Dombrovskis for violating WTO provisions, saying WTO members are not allowed to limit raw material exports to benefit domestic producers.

Tasrif said the government will appeal the decision, as it does not yet have permanent legal force. However, the loss spells trouble for the government's plan to extend the ban to other raw materials such as tin and copper.

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Indonesia to Gradually Eliminate Fossil Fuel Subsidies

Indonesia has the potential to save almost Rp 200 trillion in foreign exchange through its target to raise the use of biofuels in diesel fuel oil by 40 percent (B40) by 2023, according to Edi Wibowo, Director of New, Renewable Energy and Energy Conservation (EBTKE) at the Ministry of Energy and Mineral Resources. This is a rise from savings of Rp 66 trillion in 2021. The 2023 figure is calculated based on the assumption the allocation reaches 15.03 million kiloliters (kl) with an estimated need for solar oil of 37.5 million kl.

Reducing fossil fuel dependency supports Indonesia and other G20 countries’ commitment to gradually eliminate subsidies for fossil fuels. Economist Bhima Yudhistira said fossil fuel subsidies must be reallocated to renewable energy, but the government must anticipate a spike in fuel prices.

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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!



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.





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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