Minister of Cooperatives and SMEs to Meet TikTok CEO
Minister of Cooperatives and Small and Medium-sized Enterprises Teten Masduki has been asked by President Joko Widodo to attend a meeting requested by TikTok's CEO Shou Zi Chew, following the official ban on TikTok Shop last month through the issuance of Minister of Trade Regulation 31/2023. The meeting is scheduled for the first week of November, and it remains unconfirmed whether there will be a discussion about TikTok's plans for a new e-commerce platform.
If TikTok Shop wishes to reopen here, it must exist as a separate entity from TikTok because social media platforms are no longer allowed to provide transaction services within their apps. The government has also called on Instagram and other digital platforms that facilitate the sale of imported used clothing to comply with the applicable laws in Indonesia, Teten said.
Express delivery service companies were also affected by the ban on TikTok Shop, said the General Chairman of the Association of Indonesian Express Delivery Service Companies (Asperindo). However, these companies have partnerships with several other e-commerce platforms, which helped mitigate the impact. Layoffs in the delivery service sector cannot be solely attributed to the shutdown of TikTok Shop, said Feriadi on Nov 7.
Related Links:
- https://finance.detik.com/berita-ekonomi-bisnis/d-7023206/teten-bakal-ketemu-ceo-tiktok-minggu-ini/amp
- https://kaltim.tribunnews.com/amp/2023/11/07/terjawab-kapan-tiktok-shop-dibuka-lagi-dan-syarat-yang-harus-dipenuhi-ini-penjelasan-kemendag
- https://amp.kontan.co.id/news/tiktok-shop-tutup-begini-efeknya-bagi-bisnis-jasa-pengiriman
- https://en.antaranews.com/news/298119/govt-urges-instagram-to-take-down-accounts-selling-thrifted-clothing
AmCham Meets PLN Head
AmCham Indonesia met with a delegation from state electricity company PLN led by its President Director Darmawan Prasodjo, on Nov 7. Headed by AmCham's Chairman of the Board of Governors Douglas Ramage, this marks our first official meeting with the PLN President Director.
The meeting was a lively and open discussion on PLN’s plans and ambitions for providing clean and renewable energy to reach Indonesia’s net-zero commitments by 2060, challenges and opportunities in constructing a green energy grid, and the mobilization of funds from the Just Energy Transition Partnership (JETP). Darmawan emphasized PLN’s openness to deeper cooperation with foreign investors in renewable energy projects as he restructures the company to support the energy transition.
The meeting was also attended by PLN leadership, including Director of Finance Sinthya Roesly, Director of Corporate Planning and Business Development Hartanto Wibowo, EVP Electricity System Planning Warsono, EVP Finance Maya Rani Puspita, EVP Corporate Strategic Planning Harlen, and EVP Corporate Transformation & CEO Office Aditya Syarief Darmasetiawan.
Services Meeting Discusses International Conflict, 2024 Elections
AmCham Indonesia's Services Committee held its final meeting of 2023 on Nov 1 at the American Club. A range of industry updates and discussions took place, including the Israel-Hamas conflict, the 2024 presidential and vice-presidential candidates, and more.
Opened by committee chair Peter Meyer, participants gave updates from sectors such as insurance, banking, real estate, health, hospitality, education, and energy. Peter also conducted a business outlook survey, in which most participants expressed a neutral outlook, with only one person being optimistic and five individuals pessimistic.
The committee discussed rising anti-Israel sentiment in Indonesia and its security risks. Protests and boycotts against Israel and its allies, including the US, will likely continue. The 2024 presidential and vice presidential candidates were extensively discussed, as companies are interested to learn more about each candidate’s policies.
As one of AmCham’s longest-standing committees, Services brings together a range of industries from insurance and finance to moving companies and travel, security, real estate, hospitality, health care and consultants for open and informal discussions on market conditions. Join us, it is a great networking platform.
For more information on future meetings or the committee in general: https://www.amcham.or.id/en/pages/committee/services
Gov’t to Build Sugar Industry Zone in Papua
The government is planning to establish a sugar industry zone in Papua to boost local sugar production. The plan, initiated by Deputy Minister of State-Owned Enterprises (BUMN) Kartika Wirjoatmodjo, involves building an industry zone covering an area of approximately 1 to 2 billion hectares, Minister of Agriculture Andi Amran Sulaiman said.
Papua is considered a strategic location for such development due to its climate and the availability of vast areas of land.
The estimated investment value for one sugar factory is Rp 2.5 trillion to Rp 3 trillion, with a total production capacity of 8,000 tons to 12,000 tons of cane (TCD) per day, Amran said. The sugar factory will be constructed on land owned by ID Food, a state-owned food holding company. However, the government is still seeking investors for the project.
Indonesia has also approached Brazil for collaboration on the project, given its advanced technology in sugar production.
Related Links:
- https://money.kompas.com/read/2023/11/08/070000926/mentan-ungkap-rencana-pembangunan-pabrik-gula-rp-3-triliun-di-papua
- https://en.antaranews.com/news/298134/government-plans-to-build-sugar-industry-zone-in-papua-minister
Economic Growth Remains Stable in 2023: BI
Bank Indonesia (BI) predicts Indonesia’s economic growth will remain stable, hovering around 4.5 percent to 5.3 percent, in 2023 as future growth will be driven by domestic demand, investment, and government and private consumption, BI Director of Communications Nita Muelgini said. She said most businesses in the third quarter of 2023 continued to grow, supported mainly by the manufacturing, wholesale and retail, and construction industries.
Household consumption grew by 5.06 percent year-on-year (YoY), government consumption contracted by -3.76 percent YoY, overall investment growth increased by 5.77 percent YoY, and exports contracted by -4.26 percent YoY, according to BI.
Strong domestic demand was spurred by government infrastructure construction, with the highest economic growth recorded in Sulawesi, Maluku, Papua, Java, Kalimantan, Sumatra, Bali, and Nusa Tenggara provinces. Global economic uncertainty forced exporters to scale down, and BI says Indonesia’s foreign exchange reserve decreased from $134.9 billion in September to $133.1 billion in October.
Related Links:
- https://www.bi.go.id/id/publikasi/ruang-media/news-release/Pages/sp_2530023.aspx
- https://www.antaranews.com/berita/3810615/bi-ekonomi-indonesia-kuat-di-tengah-ketidakpastian-global
- https://money.kompas.com/read/2023/11/07/090900626/bi-perkirakan-pertumbuhan-ekonomi-ri-2023-tetap-di-kisaran-4-5-5-3-persen
- https://www.cnnindonesia.com/ekonomi/20231107131638-532-1020988/tergerus-untuk-bentengi-rupiah-cadangan-devisa-turun-ke-us-1331-m
Member Announcement: OCS Group Indonesia
OCS Group Indonesia, a leading integrated facilities management (FM) provider, announced on Nov 6 its enhanced food catering services in Indonesia through a strategic partnership with Sunshine Food Group (SFG), an affiliate of Lippo Group. This partnership enables OCS to provide quality food services, while bringing SFG’s leading healthcare catering expertise to more hospitals and introducing the Maxx Coffee brand to facilities across Indonesia.
A memorandum of understanding (MoU) for this partnership was signed by Mehdi Zaidi, Chief Executive Officer of Sunshine Food Group; and Jeffry Johary, Managing Director of OCS Group Indonesia. The partnership is expected to drive greater productivity and growth for both entities.
The partnership between OCS and SFG is expected to provide benefits to both companies and their clients, including expanded service offerings, increased reach, improved efficiency and productivity, and an enhanced customer experience.
Now is the Time to Join AmCham!
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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.
