AmCham Update Vol. 4 #27

Jokowi Welcomes Foreign Workers in Nusantara; JIS, MoE and Harvard Course; AmCham Goes Gatsby; Energy Ministry Revises Coal Reference Price Formula

Mar 10, 2023

Jokowi Entices Foreigners to Work in New Capital

President Joko Widodo has approved foreign workers (TKA) being able to work in the new capital city, Nusantara (IKN), for up to 10 years. Vice Head of the IKN Authority Dhony Rahajoe said that as the government pursues the concept of a sustainability forest city, the presence of foreign workers will improve human resources through the use of global talent, and will strengthen targeting new investors.

Under Government Regulation 12/2023, foreign workers can be granted a stay permit for a maximum period of 10 years (Article 23). After the 10 year period, foreign workers are allowed to extend their stay permit in accordance with their work agreement with their employer.

The compensation payment obligation for those who employ foreign workers for a certain period of time (Article 22) has also been waived. The exact period, mechanism, and procedures will be detailed in an upcoming IKN Authority Head Regulation.

Related links:

GOVERNMENT REGULATION 12/2023

JIS, MoE and Harvard Work Together to Bring CS50x to Indonesia

Jakarta Intercultural School (JIS) is working closely with the Ministry of Education, Culture, Research and Technology (MoE) and Harvard University to bring the CS50x course to Indonesia. JIS helped facilitate this collaborative effort in order to provide an opportunity for teachers across the country to participate in the six-month computer science pilot program. A series of training workshops is being held at the JIS Cilandak Campus from March 9-11.

CS50x is a computer science and programming course, adapted from Harvard’s entry-level CS50, that helps teachers to learn to think algorithmically and solve problems with and without code. After completing the course, teachers can conduct lessons or workshops to enhance their students' understanding of computer science and programming.

The three-day workshop began with a special event on March 9, which was opened by Head of School Maya Nelson, who said JIS was honored to host such a prestigious program and hoped it could be the starting point for more collaboration dedicated to promoting computer science education. Harvard University Gordon McKay Professor of the Practice of Computer Science David J Malan also gave the audience a taste of CS50x by discussing the importance of cybersecurity and provided a brief coding demonstration.

Minister of Education Nadiem Makarim also hosted a fireside chat together with David. They told how the program came to fruition, how David began teaching CS50 outside of Harvard, and their hopes for the program to expand beyond teachers and reach students across the country.

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AmCham Cares: Kimberly-Clark Softex

Kimberly-Clark Softex has continued its social campaign in support of UNICEF Indonesia by launching the short film Ana & The Red Wings to break the stigma around the period experience and create public awareness of the importance of menstrual health access and hygiene in Eastern Indonesia. An Ana & The Red Wings Exhibition is now also open for the public from March 10-12, 2023 at the Sarinah Building, Jakarta.

“We are delighted to continue our partnership with UNICEF Indonesia. Previously, the program positively impacted Indonesian girls in Papua, West Papua, South Sulawesi, and East Nusa Tenggara. We hope this partnership can build public awareness about issues surrounding menstrual health management and improve the well-being of adolescents in Eastern Indonesia. The initiative also supports United Nations Sustainable Development Goals (SDGs) 2030,” said Kadir Gunduz, President Director of Kimberly-Clark Softex.

According to the School Sanitation Profile 2022 published by the Ministry of Education, Culture, Research, and Technology with UNICEF, 52 percent of schools in Indonesia had inadequate women’s toilet facilities and access to menstrual hygiene.

In an effort to tackle this issue, Kimberly-Clark Softex through the Kimberly-Clark Foundation donated Rp 15 billion to UNICEF Indonesia for the program, which aims to improve the quality of life for girls in Indonesia by promoting and educating them about menstrual health and hygiene, and providing gender and social inclusive access to clean water, sanitation, and access to clean water, sanitation, and hygiene facilities.

This collaboration will run until 2024, with Kimberly-Clark Softex supporting UNICEF to help 10,000 girls in Eastern Indonesia manage their menstruation safely and hygiene as well as supporting 80,000 people, especially girls, in Eastern Indonesia to live in a clean and hygienic environment. The company’s involvement in the development of menstrual health management is an attempt to make a difference in society and create a better world for future generations.

Energy Ministry Revises Coal Reference Price Formula

The coal reference price formula (HBA), used as a benchmark price for the sale of coal commodities, has officially been altered to accommodate requests from the private sector. The revision covers the price of coal with a calorific value of 6322 kcal/kg GAR, 5200 kcal/kg GAR, and 4200 kcal/kg GAR, under Ministry of Energy and Natural Resources Decree 41/2023.

State-owned enterprises in the sector have positively responded to the decision, and the new HBA formula is expected to close the gap between the royalty obligation and coal selling price. The previous calculation formula was mostly in favor of coal with a higher calorific value, while Indonesia’s coal resources have lower values. The Indonesian Coal Mining Association (APBI) said it hoped the regulation can be quickly enacted so businesses can implement it immediately.

Related links:

Retail Sales Fell in February

Bank Indonesia (BI) has projected a decrease of retail sales in February of 1.4 percent over the previous month. While a fall in sales in January is a seasonal phenomenon after a flurry of spending in the year-end, its continuation to February is worrying. In February, the only categories with positive growth were clothing and food and beverages, and tobacco, with growth of 10.8 and 5 percent respectively. All other sectors recorded declining sales. On a positive note, retail sales grew 2.6 percent year-on-year (YoY).

The Consumer Confidence Index (CCI) also dropped to 122.4 points in February from 123 points the previous month, ending a rally since November 2022. However, the CCI remains strong and well in the optimistic zone, said BI Spokesperson Erwin Haryono. The upcoming Idul Fitri holiday is also projected to push consumer spending up, said Bank Permata Chief Economist Josua Pardede.

Related links:

https://www.thejakartapost.com/business/2023/03/09/retail-sales-drop-in-february-amid-lower-consumer-confidence.html
https://www.bi.go.id/en/publikasi/ruang-media/news-release/Pages/sp_256023.aspx

Rupiah Under Pressure From Fed

The rupiah is expected to close at a weakened rate as the US Federal Reserve said it plans to increase the benchmark interest rate to tame inflation in the US. At the start of trading today, March 10, the rupiah exchange rate had already dropped to Rp 15,483 per US dollar from the previous day's close at Rp 15,433. The rupiah is expected to fluctuate throughout the day, but is likely to close in the range of Rp 15,410-15,500 per dollar.

Experts say the drop came after Fed Governor Jerome Powell said it plans to increase rates at a higher and quicker rate to reduce inflation to 2 percent. However, market players will have to wait and see, as the final verdict will be made at the next Fed meeting which will be held in two weeks.

Related links:

AmCham’s Gatsby Night Networking Event

AmCham Indonesia held its first networking event of the year for members, partners and friends on March 9. The event served as an outlet for the guests to connect and unwind now Covid-19 restrictions have finally been lifted.

More than 60 professionals attended the event, as well as representatives from AmCham's Board of Governors. Board member Donna Priadi from Vriens and Partners officially opened the night, followed by a delicious selection of food and drinks by Billions, Pacific Place.

The Gatsby Night theme was a good one thanks to the executive sponsor, AGS Indonesia. Guests enjoyed great conversations along with wine and beer from the official wine sponsor, Swillfam and The Peak Connoisseur, as well as the official beer sponsor, Carlsberg.

As a fun way to close the night, AmCham Indonesia and sponsors gave out some lucky draw prizes. Congratulations to Ryan McClure and Siska Amelia from TWOMC Digital Agency as well as Dhonke Kafi and Ruth Hanna Simatupang from DKMS Lawyers for winning valuable access and membership vouchers from The American Club. Wilson Siahaan from Mastercard also won a smart watch and wine bundle.

Congratulations also to Jennifer Tangka from Tilleke & Gibbins and Anton Setiawan from Tricor for winning the prizes from AmCham Indonesia and AGS Indonesia. To appreciate the best-dressed guests, AmCham picked the “King and Queen” of the Gatsby Night, which was won by Yuli Andjarni from Samson Tiara and A Hamid Farid from Mastercard.

We hope to host more festive nights for the business community and we wish you all a healthy and successful year ahead!

For more information on AmCham Indonesia’s activities please reach out to Awis Mranani at [email protected]

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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

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AmCham Cares: Kimberly-Clark Softex

According to the School Sanitation Profile 2022 published by the Ministry of Education, Culture, Research, and Technology with UNICEF, 52 percent of schools in Indonesia had inadequate women’s toilet facilities and access to menstrual hygiene.

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