Gov't to Clamp Down on Sexual Harassment, Carmakers Invest in Indonesian Factories, AmCham and CarbonX Breakfast Forum, Gas Exports to End in 2035, Gov't Optimistic on Economic Growth
Jun 02, 2023
Sexual Harassment Regulation Released by Ministry of Manpower
Guidelines on sexual harassment in the workplace have been released for the first time by Minister of Manpower Ida Fauziyah through Decree 88/2023. As well as providing general guidelines, it mandates the establishment of a task force to monitor potential sexual harassment and violence.
One of the triggers for the regulation was a case that went viral involving a boss requiring a female member of staff to stay with him at a hotel to finish a project.
Referring to Law 12/2022, there are nine categories of harassment/violence that can be reported, ranging from non-physical to electronic-based, and physical. Chapter III of the decree says prevention must be carried out through the establishment of company policies, and raising awareness through education and anti-sexual harassment and violence campaigns.
Chapter IV says any occurrences should be reported to the company’s task force and then consolidated with related government/bodies. Sanctions will be agreed upon and carried out by the company, which can range from receiving a warning to employment termination.
Global Automotive Manufacturers to Invest in Indonesia Factories
A number of global automotive companies are planning to build and/or expand their factories in Indonesia. Kreta Indo Arthda (agent holder for Indonesian car brands), Astra Daihatsu Motor (ADM), and Toyota Motor Co have plans to expand their existing factories, while the storied British brand Morris Garage (MG), now owned by China’s SAIC Motor Corporation Limited, plans to build its first factory in Indonesia.
ADM will spend Rp 2.9 trillion to build a new, environment-friendly, factory in Karawang, West Java. Toyota invested Rp 77.9 trillion in Indonesia up to 2022, and will pour in another Rp 27.1 trillion by 2026.
The companies are optimistic the outlook for the domestic market is bright this year, despite global economic woes.
Kimberly-Clark Softex (Softex Indonesia) announced the installation of nearly 5000 photovoltaic (PV) modules on the roof of its flagship manufacturing facility in Karawang, West Java, on May 31. This rooftop solar panel installation will reduce the indirect carbon emissions of the facility by around 3,000 tons per year or the equivalent of taking 600 fossil fuel driven cars off the roads. This initiative will also support the government’s Million Solar Panel Roofs National Movement, which aims to generate 3.6 gigawatts (GW) of solar energy by 2025.
“At Kimberly-Clark, we are committed to decarbonizing our supply chain and halving our carbon emissions by 2030. This 2.65 megawatt-peak (MWp) solar installation will generate approximately 3,700 megawatt-hours (MWh) of clean energy for our factory annually, and help us deliver on our global climate goals. It will also help to increase the contribution of [the] new and renewable energy mix in Indonesia," said Kadir Gunduz, President Director of Kimberly-Clark Softex.
Kimberly-Clark Softex is carrying out the installation of the solar panels in collaboration with TotalEnergies-ENEOS, a leading global solar energy provider. The installation started in May and will begin operating by December this year. TotalEnergies-ENEOS is also expanding cooperation with Kimberly-Clark beyond Indonesia by signing long-term agreements to install additional systems to its other manufacturing facilities in Southeast Asia.
AmCham Indonesia and CarbonX hosted the “Indonesia’s Net Zero Future: Driving the ESG and Climate Change Agendas” breakfast forum on May 31. The event brought together distinguished experts representing various stakeholders to explore ways to increase collaborations on sustainability.
The forum opened with remarks from AmCham Managing Director A Lin Neumann, along with CEO of CarbonX Ken Sauer, who spoke of the role of CarbonX in investing in carbon-related projects through nature-based solutions and climate technology innovations. Deputy for Environmental and Forestry Management Coordination at the Coordinating Ministry for Maritime Affairs and Investment Nani Hendiarti addressed the urgent need to fill the climate financing gap through investment in her opening remarks. She indicated progress is being made on developing an Indonesian carbon market.
The panel of speakers included Commissioner of CarbonX and Director of Toba Bara Sejahtera (TBS) Pandu Sjahrir, President Director of HSBC Francois de Maricourt, and Program Lead of ASEAN Carbon Center of Excellence Legacy Program at the Indonesian Chamber of Commerce and Industry (KADIN) Dharsono Hartono.
The panelists agreed collaboration and effective partnerships among stakeholders remain crucial in advancing sustainability initiatives, and there is a need for an accommodative regulatory framework to support private sector involvement in climate-related projects.
Participants raised questions and shared insights on ways they are increasing values and commitment to sustainability, as well as actions needed going forward, including strengthening engagements with relevant government stakeholders and state-owned enterprises (SOEs).
Gas Exports Will Still End in 2035
The moratorium on gas exports scheduled for 2035 will proceed as planned, according to the National Energy Council (DEN), and will not be deterred by this year's revisions of Government Regulation (GR) 79/2014 on the National Energy Policy and the Presidential Regulation (PR) 22/2017 on the National Energy General Plan (RUEN).
The ban is being finalized following an increase in domestic consumption, Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan said, adding the government is pushing for intensive investment to support domestic gas infrastructure and distribution.
The value of gas exports increased by 31.76 percent to $9.82 billion in 2022 due to disruptions in global supply caused by Russia’s war in Ukraine.
Ministry of Finance Predicts Increased Investor Confidence in 2024
Indonesia’s economic stability over the past two to three years has maintained investor confidence, despite uncertainties due to the 2024 Presidential Elections, Head of The Ministry of Finance's Fiscal Policy Agency (BKF) Febrio Nathan Kacaribu said. Indonesia's political stability over the last 20 years has also been one of the main selling points to attract foreign investors.
The Ministry of Finance also projects an increase in Indonesia’s economic growth of 5.3 percent to 5.7 percent in the 2024 political year, compared to the 5.3 percent projection for 2023. Febrio said the 2024 elections will have a positive impact on Indonesia by accelerating economic transformation, structural reforms, opening opportunities for industrial relocation and strengthening the competitiveness of exports and investment.
GFT Ventures invites you to attend a virtual fireside chat at 5pm PST on Tuesday June 13, 2023, featuring Jeff Herbst (Founding Managing Partner of GFT Ventures) and Ju-kay Kwek (CEO of Switchboard Software).
The discussion will cover how data is fueling the latest developments in AI, what led GFT Ventures to invest in Switchboard, and how Switchboard stands out as a leading data engineering automation platform.
Joseph Lee (Partner and Head of Investor Relations at GFT Ventures) will moderate and interview the panelists, and participants will have the opportunity to ask questions via chat.
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