CPO Commodity Exchange Launches as Export Requirement Next Month
The Crude Palm Oil (CPO) commodity exchange will be launched next month by the Commodity Futures Trading Supervisory Agency (Bappebti), operating under the Ministry of Trade. The exchange is the government’s latest attempt to monitor domestic market obligation (DMO) compliance and will determine CPO export prices.
Bappebti has been engaged with the Directorate General of Domestic Trade, the Directorate General of International Trade at the Ministry, and the Fiscal Policy Agency (BKF) in the formulation of the CPO commodity exchange regulation.
For the first phase of implementation, exporters will still need to fulfill the DMO requirement to enter the stock exchange and obtain permits, Bappebti Head Didid Noordiatmoko said. However, the DMO policy should be gradually removed as all exports will be based on data recorded in the exchange. Didid said the exchange will make CPO price determination more transparent and attractive for domestic producers.
AmCham Co-Hosts US-ASEAN Reception, Meets Ambassador
AmCham Indonesia had the pleasure of meeting with US Ambassador to ASEAN, Yohannes Abraham, during a cocktail reception we co-hosted with the US Embassy on May 17, at the Ambassador's Residence in Menteng, Jakarta.
ASEAN has been placed at the “heart” of President Joe Biden’s Indo-Pacific focus, and the US government finally appointed Abraham as its Ambassador to ASEAN last year, a Jakarta-based posting that was vacant for more than five years. Prior to his new position, the Ambassador held several important roles in the White House during the Obama-Biden administration.
Ambassador Abraham opened the reception, welcoming the invitees and VIP guests, including Indonesian Ambassador to ASEAN Derry Aman, and ASEAN Secretary-General Kao Kim Hourn. He also thanked AmCham Indonesia for co-hosting the reception, and emphasized the importance of the public-private partnerships in advancing the ASEAN agenda and priorities.
As part of the 14th US-ASEAN Joint Cooperation Committee (JCC) Meeting, the reception was attended by representatives of ASEAN member states, US Embassy representatives, and US companies, transitioning from a lively conversation to a fun karaoke night.
AmCham Cares: Samson Tiara
Samson Tiara has announced the resumption of its corporate social responsibility (CSR) program, to provide participating high school students essential knowledge and skills in basic first aid and firefighting.
Recognizing the importance of equipping the youth of today with the necessary knowledge to respond to emergencies and be proactive members of their community, the company was eager to resume the program which was unfortunately paused due to the Covid-19 pandemic.
Through the learning of basic first aid skills, students have the potential to make a significant difference in the event of an emergency. During the program, students will learn how to respond appropriately to incidents or accidents, such as performing CPR, controlling bleeding, treating burns, and aiding a choking victim.
These skills can be applied to a range of situations, including sports injuries, car accidents, mishaps around the house or workplace, and even natural disasters. By learning these skills, students can become more confident and capable if confronted with an emergency and can potentially save the lives of those around them.
Basic firefighting and fire safety are also valuable skills for students to learn. In the event of a fire, knowing how to use an available fire extinguisher properly can be the difference between a small fire and a major disaster. It can also provide valuable awareness of potential fire hazards around the home, school, or workplace, so appropriate mitigation efforts can be taken.
During the program, students will learn to identify the different types of fires, the appropriate extinguisher to use for each, and the correct technique to operate a fire extinguisher effectively.
Samson Tiara is committed to promoting the safety and well-being of its community, and believes the program is a valuable contribution toward achieving this goal.
Jokowi Proposes OPEC-style Body For Nickel
President Joko Widodo proposed the formation of an OPEC-like world-class organization for strategic products such as nickel and palm oil at the G7 Summit held in Hiroshima, Japan, on May 19-21.
He invited member countries to become partners in developing Indonesia’s downstream industry, and also told attending nation leaders that resource-rich countries such as Indonesia should not remain only an exporter of raw materials, but also enjoy added value from domestically processed natural resources.
Indonesia is prioritizing its downstream industry, aiming to develop an electric vehicle (EV) ecosystem.
Through the establishment of an OPEC-like organization for nickel, it is believed that producing countries can unite nickel commodity policies and benefit from the added value of processing the metal.
G7 to Push Infrastructure Connectivity Development Through PGII
The G7 affirmed its commitment in identifying new opportunities to enhance global infrastructure and investment partnerships through the Partnership for Global Infrastructure Investment (PGII), during the G7 Summit in Hiroshima. The PGII is a strategic plan that observers view as a counter to China’s Belt and Road Initiative (BRI).
Launched last year, PGII aims to gather $600 billion from developed countries to fund infrastructure projects in developing countries through grants and loans for the next five years. So far, the US has mobilized $30 billion out of the $200bn promised (through grants, federal financing, and increasing private sector investment) to support quality infrastructure financing in developing and low-income countries. The EU has promised to add a further half of the total grants.
During the PGII G7 and Partner Countries meeting, President Joko Widodo said the success of PGII depends upon collaboration, and emphasized the significance of its assistance for Indonesian infrastructure growth, citing opening additional investment for the development of the new capital city Nusantara as an example of equitable and Indonesia-focused development distribution.
PGII also promotes the creation and global implementation of full clean energy supply chain solutions, by assisting in the creation of small modular reactors (SMR). This initiative also assists Indonesia in taking the lead in the creation of green energy through increasing geothermal operations in the country.
White House to Resume Contentious Discussions Over Debt Ceiling
US President Joe Biden and House of Representatives Speaker Kevin McCarthy have agreed to resume vital bipartisan negotiations on the debt ceiling, after Republican negotiators walked out of talks on May 19.
As the June 1 deadline for agreement approaches, the US government risks “economic and financial catastrophe” if the Republican majority House of Representatives fails to pass a bill to raise the $31.4 trillion debt ceiling as this will result in the US defaulting on its debts.
Negotiations have been deadlocked for months, as the Democrats want a debt ceiling increase without conditions, while the Republicans demand spending cuts and tightened requirements for entitlements and benefits.
President Biden cancelled some of his visits in the Indo-Pacific region to meet with the House Speaker, and will rejoin the discussions in Washington, DC, today, May 22.
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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