Jokowi Heading to Ukraine and Russia, ESP Registration July 20, New Bill on Maternity and Paternity Leave, T20 Indonesia Policy Dialogue
Jun 24, 2022
Jokowi to Visit Kyiv and Moscow
President Joko Widodo is set to meet Ukraine President Volodymyr Zelensky in the country's capital Kyiv following a G7 summit in Germany next week, said Minister for Foreign Affairs Retno Marsudi. After his visit to Ukraine, the President will continue his journey to Moscow. Indonesia has resisted pressure to exclude Russia from the G20 Summit in Bali and maintained a neutral position. These visits show Indonesia’s attempt to bring an end to the war in Ukraine and solve the global economic repercussions caused by the Russia's invasion.
July 20 Deadline for Electronic System Provider Registration
The Ministry of Communications and Informatics has reminded all electronic system providers (ESPs), such as digital platforms, application developers, and the like, to register themselves no later than July 20, 2022. Applied to both domestic and foreign platforms, this provision for mandatory private ESP registration is based on Article 6 of Government Regulation 71/2019 on Electronic System and Transaction Operation, and its implementing regulation, Minister of Communications and Informatics Regulation 5/2020, Article 47.
There are six private ESP categories required to register: those that provide, manage, operate offerings, and trade in goods and services; financial transaction services; paid digital payloads over data networks; communication services; electronic information search engine services; and processing of personal data related to electronic transaction activities.
The House of Representatives Legislation Body (Baleg DPR) has endorsed the Maternal and Child Welfare Bill stipulating that pregnant workers are entitled to six months of maternity leave. During the leave, the worker cannot be dismissed and the company is required to pay 100 percent of their salary for the first three months and 75 percent for the following three months. Husbands of pregnant workers are also entitled to the right to accompanying leave.
The Indonesian Employers Association (APINDO) said that considering the business world is still recovering from the pandemic, maternity leave extensions will incur additional costs for companies. Head of the Regional Representative Council of the Indonesian Indigenous Entrepreneurs Association (HPPI) Jakarta, Sarman Simanjorang, said the government should pay attention to the condition of businesses and conduct an in-depth and comprehensive study and evaluation before enacting the law as it involves labor productivity, operational costs, and the level of ability to conduct business.
Indonesia’s 2022 Economic Growth Stuck at 4.6%: World Bank
The World Bank projects the Indonesian economy will see growth of only 4.6 percent in 2022, lower than the original projection of 5.1 percent, due to global economic uncertainty suppressing demand for Indonesian exports, especially commodities. World Bank and Timor Leste Chief Economist Habib Rab said this will force the government to increase subsidies to maintain people's purchasing power, increasing the national debt.
The World Bank projects Indonesia's inflation at around 4.2 percent year-on-year (YoY) this year due to the drastic increase in world oil prices. The Indonesian economy grew 3.69 percent in 2021, according to Statistics Indonesia (BPS), an improvement from the previous year’s minus 2 percent.
The Global Health Security and Covid-19 Task Force (Task Force 6) through T20 Indonesia will hold the “Combating Pre-Diabetes to Avoid Future Significant Burden of T2DM” policy dialogue online on June 29 from 08.30 to 13.00 WIB. The dialogue will feature T20 Lead Chair Prof Bambang Permadi Soemantri Brodjonegoro, Secretary General from the Ministry of Health Kunta Wibawa Dasa Nugraha, and Director General of Public Health from the Ministry of Health Maria Endang Sumiwi.
Strategic ASEAN International Advocacy & Consultancy (SAIAC) has been conducting corporate social responsibility (CSR) programs aimed at helping animals for the past 10 years. It supports the neutering and spaying of cats and dogs to bring down the numbers of stray animals, and to date has treated around 2,100 cats and dogs.
During the Covid19 pandemic, recreational places and zoos have been in a dire situation, with animals suffering and some dying of hunger. Cats in Ancol depended on left-over food from visitors – and for almost two years there were no visitors because of the pandemic. SAIAC supported volunteer groups to start feeding campaigns.
SAIAC also supports zoos around Central, West, and East Java, and brought second grade and fresh vegetables for the herbivore animals inside the zoos. This program is on-going as some of the zoos are privately owned and the owners are deliberately negligent.
SAIAC believes taking care of the weak is the most noble act anyone can perform.
State Revenue Surplus Continues in May
Minister of Finance Sri Mulyani Indrawati said state revenue grew 47.3 percent to Rp 1,070.4 trillion year-on-year in May. Revenue came from taxes of Rp 705.8 trillion, customs and excise at Rp 140.3 trillion, and non-tax state revenue (PNBP) of Rp 224.1 trillion. State spending realization was Rp 938.2 trillion, declining 0.8 percent due to reduced Covid-19 cases in Indonesia. This resulted in a surplus of Rp 132 trillion, or 0.74 percent of GDP. Indonesia has seen a continued surplus since January 2022.
The AmCham Office is on the work-from-home status and all face-to-face meetings and events have been postponed. We are having a number of meetings online using the Zoom platform. You will be notified of virtual 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.