Senate Confirms Kamala Shirin Lakhdhir as New US Ambassador to Indonesia
The US Senate confirmed Kamala Shirin Lakhdhir, a career member of the Senior Foreign Service with the rank of Minister-Counselor, as the new US Ambassador to Indonesia by voice vote on May 5. She was appointed as a nominee by US President Joe Biden in October last year.
The White House confirmed in an official statement that Lakhdhir has three decades of service within the State Department. She was most recently Executive Secretary at the Department of State and has served as the US Ambassador to Malaysia. She also served in the House International Relation Committee’s Asia and Pacific Subcommittee and the Bureau of East Asian and Pacific Affairs, making her a recognized expert on East Asian affairs. Lakhdhir earned a BA from Harvard College and an MS from the National War College.
AmCham looks forward to welcoming Ambassador Lakhdhir to Indonesia and working with her closely in the coming years.
Related Links:
- https://www.congress.gov/nomination/118th-congress/1098
- https://www.metrotvnews.com/read/bzGCzvY2-biden-tunjuk-kamala-shirin-lakhdhir-sebagai-calon-dubes-as-untuk-indonesia
Trade Minister Reiterates Mandatory Halal Certification
The mandatory halal certification policy, due to be implemented in October for food and beverages, raw materials, food additives and slaughtering products, must happen without delay, said Minister of Trade Zulkifli Hasan, as tangible proof that products are safe.
This statement is in response to Minister of Cooperatives and Small and Medium Enterprises (SMEs) Teten Masduki's call to postpone the halal certification implementation, especially for micro, small and medium enterprise (MSMEs) products.
Teten said the deadline for halal certification is difficult to achieve, especially for MSMEs, and proposed accelerating certification to facilitate MSMEs under the green lane and postponing or extending the deadline to prevent legal violations by MSMEs.
Related Links:
- https://www.antaranews.com/berita/4088325/mendag-tegaskan-sertifikasi-halal-wajib-dipenuhi-tak-boleh-ditunda?utm_source=antaranews&utm_medium=mobile&utm_campaign=popular_category
- https://en.tempo.co/read/1864219/halal-certification-mandatory-policy-should-not-be-postponed-trade-minister-says
Gov't Finalizes Coal Power Plant Retirement Package
Indonesia is finalizing an early retirement package for a 660-megawatt coal-fired power plant (PLTU) as a pilot project for the energy transition, Minister of Finance Sri Mulyani Indrawati announced during the Business Session of the Asian Development Bank (ADB) Board of Governors Meeting in Tbilisi, Georgia on May 5.
To expedite the transition, Indonesia has established the Energy Transition Mechanism (ETM) platform, with the ADB playing a crucial role. The Indonesian government and ADB previously signed an agreement to accelerate the retirement of PLTU in the country under the ETM framework, signifying a joint effort toward environmental sustainability.
Sri Mulyani also extended an invitation to countries and stakeholders to support Indonesia’s transition from fossil fuels to renewable energy sources. She highlighted the financial challenges involved, given Indonesia’s heavy reliance on coal and other non-renewable resources. Despite the high cost involved, Indonesia remains committed to achieving its target of 66 percent renewable energy by 2050.
Related Links:
- https://en.antaranews.com/news/312618/indonesia-finalizes-early-retirement-package-for-660-mw-coal-plant
- https://lestari.kompas.com/read/2024/05/06/090000386/menkeu-ungkap-ri-segera-pensiunkan-pltu-batu-bara-berkapasitas-660-mw
Airlangga and Sri Mulyani Participate in OECD Conference
Coordinating Minister for Economic Affairs Airlangga Hartarto and Minister of Finance Sri Mulyani Indrawati took part in the Organization for Economic Co-operation and Development (OECD) Ministerial Meeting on May 4, in Paris, France. The meeting centered on sustainable and inclusive growth under the theme Co-Creating the Flow of Change.
Hartarto emphasized Indonesia’s commitment to realizing sustainable development, and its adherence to the responsible use of artificial intelligence (AI), aligning with Japan’s Hiroshima Initiative as an international framework for AI use, and stressed the importance of Data Free Flow with Trust (DFFT). He also underlined the necessity for action-oriented approaches to tackle global challenges, including climate change, financial crises, geopolitical conflicts and technology disparities.
Sri Mulyani underscored Indonesia’s dedication to leading the energy transition through policies such as the Energy Transition Mechanism (ETM) and the Just Energy Transition Partnership (JETP) during the Ministerial Dialogue for the Inclusive Forum on Carbon Mitigation Approaches (IFCMA) session.
She emphasized the significance of financing and technology access for green economic policies, particularly in the energy sector. She also highlighted the pivotal role of finance ministers worldwide in climate change mitigation and adaptation plans, as all actions necessitate financing.
Related Links:
- https://www.antaranews.com/berita/4088772/mewakili-ri-bicara-di-oecd-airlangga-bahas-tiga-isu-penting
- https://www.ekon.go.id/publikasi/detail/5757/komitmen-indonesia-di-ptm-oecd-aksi-berbasis-solusi-untuk-pertumbuhan-ekonomi-berkelanjutan
- https://ekonomi.bisnis.com/read/20240506/9/1763022/pertemuan-oecd-sri-mulyani-blak-blakan-genjot-transisi-energi
- https://www.soumu.go.jp/hiroshimaaiprocess/en/index.html
ADB Allocates $1.42B for Asia-Pacific Operations
The Asian Development Bank (ADB) has allocated $1.42 billion raised in 2023 to its development operations in the Asia-Pacific Region from its ordinary capital resources, according to an ADB Board of Governors statement during the 57th ADB Annual Meeting in Tbilisi, Georgia on May 5. It is the highest net income in the ADB’s history.
The ADB directed $1.005 billion to the bank’s reserves for capital growth and earnings base, and $292.5 million to the Asian Development Fund (ADF) to aid the bank’s most vulnerable member countries, $110 million for technical assistance grants to assist in project preparation and studies, and $15 million to the Asia-Pacific Disaster Response Fund for post-disaster recovery operations. ADB President Masatsugu Asukawa emphasized the bank's commitment to better supporting its developing member countries in overcoming challenges in this regard.
Finance ministers present included Indonesia's Sri Mulyani Indrawati, Japan's Shun'ichi Suzuki, South Korea's Choi Sang-mok, Fiji's Biman Prasad and China's Liao Min.
Related Links:
- https://www.cnbcindonesia.com/market/20240505133449-17-535847/rekor-adb-raih-us-142-m-untuk-bantu-negara-di-asia-pasifik
- https://www.adb.org/news/adb-governors-approve-1-42-billion-2023-allocable-net-income
Indonesia’s PMI Dips, Industry Minister Remains Optimistic
The Purchasing Manager Index (PMI) for Indonesia’s manufacturing in April was 52.9, according to S&P Global, a decrease of 1.3 points from the previous month, albeit maintaining the highest position in the region. Minister of Industry Agus Gumiwang Kartasasmita said Indonesia's PMI has sustained an expansionary trend for 32 consecutive months, with expectations for this to continue, attributing the dip to the Eid al-Fitr period.
S&P Global noted the average PMI for ASEAN manufacturing stands at 51.0, with neighboring countries such as Thailand (48.6), Malaysia (49.0) and Vietnam (50.3) trailing behind Indonesia. Meanwhile, advanced industrial countries such as the UK and the US have PMI scores lower than Indonesia at 49.1 and 50.0 respectively.
Agus emphasized the resilience of Indonesia's manufacturing sector amidst geopolitical dynamics, highlighting that numerous ASEAN competitors are experiencing a contraction, evident from their PMI levels falling below 50.0. Additionally, Indonesia's Industrial Confidence Index (IKI) in April stood at 52.3; with the pulp and paper industry, printing and reproduction of recorded media, and the food industry projected to be the most optimistic sub-sectors in the next six months.
Related Links:
- https://katadata.co.id/berita/industri/66367d57b4854/meski-turun-sp-catat-pmi-manufaktur-indonesia-lampaui-asean
- https://en.antaranews.com/news/312339/indonesias-manufacturing-pmi-stays-expansive-minister
Get to Know Our Members: Cushman & Wakefield
|
Cushman & Wakefield (CWK) is a leading global commercial real estate services firm for property owners and occupiers, with approximately 52,000 employees in around 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It has also received numerous industry and business accolades for its award-winning culture and commitment to diversity, equity and inclusion (DEI), environmental, social and governance (ESG) and more.
Now is the Time to Join AmCham!
 |
We offer a full slate of meetings, events, and information for our community. But we can only do this through the support of our members. If you are not yet an AmCham member please join now.
AmCham Indonesia is open to all companies with an interest in US business relations and we have many non-American members.
We are a community and we welcome you!
Reach us at [email protected] or click below!
Update is AmCham’s regular newsletter on developments related to investment, the economy, regulations and issues related to doing business in Indonesia. It comes out three times a week. It is edited by AmCham Managing Director Lydia Ruddy and written by the AmCham Staff. Paul L Goddard is the Managing Editor.
