AmCham Update
AmCham Update Vol. 3 #84
PayPal Registered and Unblocked, Criminal Code Bill, PPKM Level 1, EV Growth, Incoming!
Aug 03, 2022

PayPal Unblocked After ESP Registration

Customers can once again use PayPal services in Indonesia after it registered as an electronic system provider (ESP), having been blocked briefly by the Ministry of Communication and Informatics (Kominfo) for failing to meet the registration deadline, the company said. Kominfo Director General of Application Informatics Semuel Pangerapan also said games company Steam, which was also blocked, had expressed its commitment to comply with the ESP regulation.

After discussions with Yahoo and Valve Corp, the Ministry has also unblocked public access to several other digital platforms which failed to register. Semuel apologized to local game developers for the blocked access. Minister Johnny G Plate said the Ministry has always paid attention to public responses and the regulation was not related to the privacy of the customers’ personal data, but rather with basic data and the contact person of each of the ESPs.

Meanwhile, the Directorate General of Tax at the Ministry of Finance said there was a lack of discussion with Kominfo on the blocking. Directorate General of Tax Suryo Utomo said some of the blocked platforms serve as collectors of value added tax (VAT) for trading via electronic systems (PPN PMSE). Steam, for example, has been registered as a VAT collector since 2020. Suryo said the blocking hampered VAT collection services and he hoped to have further discussions with Kominfo.

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Jokowi Tells Ministries to Intensify Socialization of Criminal Code Bill

President Joko Widodo has instructed cabinet ministers to intensify public discussions on various issues under the Criminal Code Bill to ensure greater public understanding.

Coordinating Minister for Political, Legal, and Security Affairs Mahfud MD said the deliberation of the Criminal Code Bill is almost completed and is in the final stages of discussion. The Bill covers over 700 articles on thousands of issues, but there are still 14 issues that need to be cleared up. The government will hold open and proactive discussions in the House of Representatives on these 14 critical issues.

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PPKM Level 1 Nationwide

The government has extended PPKM, implementing Level 1 until August 15 for Java-Bali and September 5 for outside Java-Bali, under Instruction of Minister of Home Affairs (Inmendagri) 38/2022 and 39/2022. Work from office in non-essential sectors and capacity in public places can reach a maximum of 100 percent, but people must use the PeduliLindungi app.

Currently most public spaces only allow entry for those in the Green category in PeduliLindungi, which consists of individuals who have already had their primary vaccinations and booster for those 18 years old and above, or have received their primary vaccinations for children aged 6-17 years old.

Director General of Regional Administration at the Ministry of Home Affairs Safrizal SA said the PPKM extension was due to an increase in Covid-19 cases in recent weeks, and Level 1 across all Indonesia was based on expert considerations taking into account current conditions in the field. Safrizal advised the public not to panic and to continue to follow health protocols as the pandemic is still under control.

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Significant Growth of Inbound Tourists

The number of foreign visitors entering Indonesia increased for the third consecutive month by 62.7 percent in June to 345,440, according to Statistics Indonesia (BPS), a 20-fold rise compared to the same month last year. The increase follows the government’s recent entry rules change allowing travelers from more countries into Indonesia with just a visa on arrival (VoA) and the revoked Covid-19 test requirement. BPS Head Margo Yuwono said increased public mobility and adequate response to Covid-19 also contributed to the increase.

Activities in the tourism industry are starting to get back to normal, Secretary-General of the Indonesian Hotel and Restaurant Association (PHRI) Maulana Yusran said. With less requirements, international travel is becoming more affordable.

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Govt Incentives for EV Users

The government will provide public incentives and subsidies to facilitate access to electric vehicles (EV), said Chief of the Presidential Staff Office (KSP) Moeldoko, inviting the public to switch to electric vehicles at the conclusion of the Periklindo Electric Vehicle Show (PEVS 2022), which was held as a forum and showcase for EVs.

President Director of PLN Darmawan Prasodjo said PLN will continue to support all parties in increasing the number of electric vehicles in Indonesia, and is committed to building an EV ecosystem in order to achieve the carbon neutral target by 2060. So far, PLN has provided 139 public charging stations across Indonesia, and is also open to work with entrepreneurs in providing charging stations; it will also provide incentives for the development of electric cars.

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AmCham Cares: HP

Empowered to drive positive change, HP has launched various education initiatives throughout 2022. In a recent partnership with the Ministry of Education, Culture, Research, and Technology (MoECRT), HP introduced its global initiative of digital education transformation framework – Transformasi Pembelajaran Inovatif (TPi) – to provide a sustainable and scalable process that enables schools to develop effective digital transformations.

TPi is an end-to-end 21st century education framework that ultimately brings about increased meaningful implementation of digital learning across Indonesia.

This initiative was driven by the rise of the Fourth Industrial Revolution, where digital competency has become essential in education, resulting in students needing to focus on developing future-ready skills that will prepare them for the workforce of the future.

Together with MoECRT and industry partners, HP is supporting the implementation of TPi in schools in Surabaya, Bogor, and Jakarta. Globally, HP is committed to enabling better learning outcomes for 100 million people by 2025, and firmly believes that a collective effort will enable the youth of Indonesia and the world to become a generation with digital skills, ability and confidence to build a brighter future.

Low Possibility of Recession, Manufacturing Remains Strong

Indonesia's economy will continue to strengthen, with a very low likelihood of entering recession, according to Coordinating Minister for Economic Affairs Airlangga Hartarto. Based on leading indicators such as monetary finance, the labor market, and industry, Indonesia's economy will continue to strengthen despite the impact of global uncertainty, with around 5 percent GDP growth until the end of 2022.

Meanwhile, Indonesia's Purchasing Managers' Index (PMI) for the manufacturing sector was 51.3 in July 2022, rising from 50.2 the previous month. In comparison to neighboring countries, Indonesia positions below Thailand (52.4) but higher than Malaysia (50.6). Manufacturing performance is supported by domestic economic recovery, which is in line with the improvement of Covid-19 pandemic management.

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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.