AmCham Update
AmCham Update Vol. 4 #51
Fall in Q1 Current Account Balance/Non-Tax State Revenue, New Investment Regulations Protect Insurance Companies, Microsoft Talks Digital Policies and Sustainability
May 24, 2023

Q1 Current Account Balance, Non-Tax State Revenue Down

Indonesia's current account balance saw a surplus of $3 billion in the first quarter of this year, a fall from $4.2 billion in the previous quarter, driven by a trade balance surplus of $14.7 billion.

Bank Indonesia Executive Director, Head of Communications Department Erwin Haryono said non-oil and gas commodities contributed the most to the surplus, while the oil and gas trade balance and the services sector both fell.

Minister of Finance Sri Mulyani Indrawati said non-tax state revenue (PNBP) was Rp 217.8 trillion as of April 30, 49.3 percent of the 2023 National State Budget (APBN) target. Revenue declined by 17.3 percent compared to the same period last year, due to the falling Indonesian crude price (ICP) and natural gas lifting, the process where natural gases are passed from producers to buyers. Revenue from the customs and excise sector fell 12.81 percent year-on-year (YoY) due to declining imports.

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New Investment Regulations Protect Insurance Companies

The Financial Services Authority (OJK) has issued OJK Regulation 5/2023 and OJK Regulation 6/2023 concerning Restrictions on Investment Placement with Related and Non-Related Parties. The regulations aim to improve insurance and reinsurance companies’ financial stability.

The OJK says the maximum investment limits for related parties for assets other than investment-linked insurance products (PAYDI) or non-PAYDI are very high and do not guard against the risk of excessive funding concentration. By considering a company's financial capacity to withstand the risk, the new regulations were created to make businesses more cautious when making investments. 

Adjustments were also made to the exemption from the obligation to establish a guarantee fund for insurance companies which participate in the policy guarantee program.

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Member Announcement: Atalian Global Services Indonesia

ATALIAN Global Services Indonesia, a leading service provider in facilities management (FM) and transitioning as part of the OCS Group Indonesia brand, has taken a major step forward in its commitment to sustainable business practices, with the signing of a bold sustainability commitment.

The signing ceremony, which took place during a Sustainability Commitment Launch event in Jakarta on May 17, was dedicated to supporting this year's World FM Day celebrations. OCS Group Indonesia's sustainability commitment was signed with key sustainability partners including Diversey Indonesia, Signify Indonesia, Trace , and Inecosolar.

OCS Group Indonesia Chief Executive Officer Jeffry Johary said the company will prioritize four key environmental, social, and governance (ESG) targets: carbon footprint reduction, health and safety culture, rural youth development, and good corporate governance.

“We have set the rigorous requirements and we will work closely with our sustainability partners to fully achieve these targets by 2040,” Jeffry said.

Microsoft Talks Digital Policies and Sustainability

The impact of digital technology on achieving United Nations' Sustainable Development Goals (SDGs) was the main topic of discussion during Microsoft Indonesia’s digital policy dialogue “Unlocking the Potential of Technology for Sustainable Growth and Inclusion,” in collaboration with the ASEAN Foundation and University of Indonesia’s Faculty of Law, on May 23 at the ASEAN Secretariat building, Jakarta.

The forum opened with remarks from Rudy Salahudin, Deputy on Digital Economy, Manpower, and MSMEs at the Coordinating Ministry for Economic Affairs (CMEA) on the government’s efforts to support digitization here. Microsoft Indonesia President Director Dharma Simorangkir also spoke of the company's mission to democratize technology and embrace tech inclusivity in Indonesia.

The event continued with a panel discussion on the role of digital technology in achieving sustainability, including the importance of harnessing artificial intelligence (AI) and digital tools to address social issues such as poverty, climate change, and injustices.

Panelists included CMEA Expert Staff on Digital Transformation, Creativity, and Human Resources Rizal Edwin Manansang; Director for ICT Empowerment at the Ministry of Communications and Information Technology Boni Pudjianto; and Microsoft Regional Vice President for Corporate External and Legal Affairs Mike Yeh.

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Perry Warjiyo Sworn In for BI Governor 2nd Term

Perry Warjiyo has been inaugurated for his second term as Governor of Bank Indonesia (BI) for 2023-2028, taking the oath of office today, May 24.

The ceremony was attended by a number of prominent dignitaries, including former Vice President Jusuf Kalla; Minister of Finance Sri Mulyani Indrawati; former BI Governor Agus Martowardojo; and Coordinating Minister for Political, Legal, and Security Affairs Mahfud MD.

Perry was the sole candidate nominated by President Joko Widodo on the grounds that in times of global crisis, it is imperative to choose people with high levels of experience. He was then formally approved by the House of Representatives (DPR) during its plenary meeting on March 21.

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Colliers Radar: Are TOD Apartments More Desirable?

The latest Colliers Radar “Are TOD Apartments More Desirable?” by the Colliers Indonesia Research Team, has been released. In urban planning, a transit-oriented development (TOD) is a type of urban development which maximizes the amount of residential, business and leisure space within walking distance of public transport. The Radar includes Colliers experts' views on the sales and price performance of TOD apartments compared to non-TOD.





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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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