AmCham Update
AmCham Update Vol. 3 #88
Luhut Says Tesla Signed $5B Nickel Deal, AmCham Health Mission; Monkeypox Renamed by WHO
Aug 15, 2022

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Tesla Signs $5B Nickel Supply Deal with Indonesia: Luhut

Tesla has signed contracts worth $5 billion to purchase nickel from nickel processing companies operating in Indonesia, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan has announced, although Tesla yet to responded to this. The contract is a follow up to President Joko Widodo’s visit to Tesla’s manufacturing facility in May and months of discussions on the possibility of the company setting up a production facility in the country.

Minister Luhut said the contract is for Tesla to purchase nickel materials, which will be used in its lithium batteries, from Chinese nickel processing companies operating out of Morowali in Sulawesi Island.

Indonesia is keen to develop its domestic electric vehicle and battery industries. Minister Luhut also said Taiwanese electronics manufacturer Foxconn has committed to invest in the country. The company is undergoing the feasibility study (FS) process and will start developing the facility in Q4 this year, Chairman of Indonesia Investment Coordinating Board (BKPM) Bahlil Lahadalia added.

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New Ways Forward for Indonesian Healthcare Post-Pandemic: AmCham Mission

Encouraging innovation and collaboration were the key themes to emerge from AmCham Indonesia and the US Chamber of Commerce's Healthcare Mission, Healthcare Reboot: Post-Pandemic Strategies and Investment Opportunities, held both in-person at the Mandarin Oriental Hotel in Jakarta and online via Zoom on August 10-11.

US Ambassador to Indonesia Sung Kim opened the Mission expressing the hope it would "generate new ideas and initiatives" between US investors and potential investors and the Indonesian government.

Guest speakers included Deputy Minister of Health Dante Saksono Harbuwono, with an overview of the progress of Indonesia’s health care reform, along with the opportunities for the private sector to support new and existing investment opportunities in the healthcare sector; and representatives from the Halal Product Assurance Organizing Body (BPJPH); the Social Security Administration for Health; and the National Food and Drug Control Agency (BPOM). 

The Mission was part of the ongoing annual Initiative Indonesia program held by AmCham and the US Chamber to promote foreign direct investment in Indonesia, which will culminate in the annual Investment Summit to be held on Dec 6-8 and the release of the US-Indonesia Investment Report for 2022.

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There were also a series of panel discussions between US company representatives and Indonesian government officials and industry stakeholders on various subjects, including US government programs and priorities for investment. Other panels included Building A Patient-Centric Innovative Ecosystem; Global Health Architecture: Future of Public Health According to the G20; Investment in Healthcare and Policy Priorities for the Private Sector; Healthcare Investment Opportunities in Indonesia’s Special Economic Zones; Healthcare Financing and Healthcare Digital Transformation.

From the US side, speakers included Marc Cook, Chief of the Trade and Investment Unit at the US Embassy; David Stanton, Deputy Health Director, USAID Indonesia; and Douglas Midland, Managing Director, USDFC Indonesia. From the private sector side Royston Lek, Executive Director, Asia Pacific, Mayo Clinic; and Mike Ybarra, Vice President and Chief of Medical Affairs, PhRMA also spoke.

In her closing remarks, Shannon Haydon from the US Chamber praised the "informative speakers," and said the Mission gave a vital "sense of the complexities and scope of the challenges of investment in healthcare in Indonesia... [and that these] challenges should be seen as opportunities."

A Lin Neumann, Managing Director of AmCham Indonesia, underscored remaining challenges that need to be overcome. “The use of TKDN [local content] regulations to force companies to invest in sophisticated manufacturing could hold back drugs and treatments for Indonesian patients,” he said. “There is no ‘one way’ to promote investment and to deliver what’s best for Indonesian patients.”

Neumann called for more intensive dialogue between the health ministry and US companies. He said AmCham would take the lead on promoting such a dialogue. The offer was greeted warmly by deputy minister Dante Saksono Harbuwono and by several companies in the room. 


Monkeypox Renamed Clade By WHO

Monkeypox disease variants will now be officially referred to as Clade, the World Health Organization (WHO) has announced. The new name is based on the region which the disease originated from. The virus that originated in the Congo Basin (Central Africa) clade is to be referred to as Clade I, while the clade in West Africa is referred to as Clade II. Clade II is divided into two sub-variants: Clade IIa and Clade IIb. The Clade IIb variant is the one which has recently become widespread.

This decision was made following an open forum held by WHO to rename monkeypox due to concerns the name was discriminatory and caused stigmatization. This renaming was also done to achieve best practices by preventing harassment of specific cultural, social, national, regional, professional, trade, travel, tourism, animals, or ethnic groups and minimize negative impacts on the environment.

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Booster or Negative PCR Required for Long Distance Train Travel

Starting today, Aug 15, Long-Distance Train (KAJJ) passengers aged 18 and over who have yet to receive their third vaccination (booster) must show a negative PCR result taken a maximum of three days before travel. Implementing stations include DAOP 1 Jakarta area via Gambir Station, Pasarsenen, Jakartakota, Bekasi, Cikarang, Karawang, and Cikampek. This updated travel protocol comes under Circular Letter from the Ministry of Transportation 80/2022 concerning Guidelines for the Implementation of Domestic Travel by Railway Transportation on the Covid-19 Pandemic period.

Passengers aged 6-17 years who have received the second dose of the vaccine do not need to have a negative result, but those who have only received their first vaccine must show a valid negative antigen test result at least one day prior or a negative PCR result within three days. Passengers under the age of six do not need to have a negative Rapid Antigen or PCR result.

If passengers do not meet these requirements, they will be unable to travel but can request a ticket refund. Ticket cancellations can be done within the August 15-17 transition period, or no later than seven days before departure. To ensure an easier checking process, the Indonesian Railways Company (KAI) has integrated its ticketing system with PeduliLIndungi to easily validate passenger vaccination and Covid-19 results.

Related links:

CLICK HERE FOR MINISTRY OF TRANSPORTATION CIRCULAR 80/2022

 


US Inflation Drops Slightly to 8.5%

US inflation fell slightly in July to 8.5 percent year-on-year (YoY), from 9.1 percent in June. The July figure is lower than forecasts of economists surveyed by Dow Jones, who predicted an increase of 8.7 percent YoY. The main contributor was a 7.7 percent drop in gasoline prices from June, with broader signs of easing price pressure expected over the next few months, Capital Economics' Chief US Economist Paul Ashworth said.

Since 2021, the US has seen rising food and energy costs, due to strong consumer demand. Grocery prices have risen 13.1 percent in the last 12 months, the largest annual increase since 1979.

Despite inflationary pressures expected to remain high, markets reacted positively with the Dow Jones Industrial Average rising more than 400 points and government bond yields falling sharply. This is also good news for workers, who have seen a 0.5 percent increase in monthly real wages, but average hourly earnings are still down 3 percent from a year ago.

A survey by the Federal Reserve Bank of New York found consumers have lower future inflation expectations, but the rising cost of living remains a concern. The US Federal reserve is also prepared to hike interest rates by 75 basis point if necessary, Chief Economist at Jefferies Aneta Markowska said, although she felt it would not be necessary.

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Govt Names 13 New National Strategic Projects  

The government has named 13 new national strategic projects, across a number of sectors and operating in various locations across the country. The projects include the Palapa Ring Integration, Kelapa Dalam Development projects in West Papua, construction of a large-scale solar energy power plant in Riau Islands, and the Jatiluhur II drink water processing system. They were listed under Coordinating Minister of Economic Affairs Regulation 9/2022.

The government will ensure the projects will be completed in a timely manner to bolster national economic development, Deputy for Regional and Spatial Development Coordination at the Coordinating Ministry of Economic Affairs Wahyu Utomo said. Action plans, achievement projections, and follow-ups related to critical aspects of the projects must be completed by parties responsible for collaborative projects (PJPK).

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Jakarta Investment Forum One-on-One Meeting

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The Jakarta Investment Forum will be holding a One-on-One Meeting and Networking Session with the choice of one of seven regional owned enterprises on Sept 1.

The Jakarta Investment Forum is an international annual forum to promote and showcase business opportunities in Jakarta. Inviting policymakers, the private sector, business leaders and experts, it also provides a platform to discuss global investment trends and challenges.

Register for the Networking Session by following the steps below:



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.

Oct 07, 2022 / 09:00 - 10:30
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