Covid-19 Surge Could Peak in 2 Weeks: Health Minister
Indonesia should prepare for a peak in Covid-19 cases in about two weeks, said Minister of Health Budi Gunadi Sadikin on Nov 25. Over the last few weeks, the average number of cases has steadily risen to around 8,000 a day. Budi said the peak in cases could reach 10,000-15,000 a day in early to mid-December.
The increase in transmissions has been driven by the new XBB and BQ.1 variants. To mitigate this, the government will target and increase administering booster vaccines in the most affected areas. This will be intensified following the commencement of the second booster vaccine administration for healthcare workers and senior citizens on Nov 24.
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Heinz Inaugurates Rp 1.2t Factory Expansion and Modernization
The Kraft Heinz Company, as the parent company of Heinz ABC Indonesia, inaugurated its newly expanded factory in Karawang, West Java, today, Nov 28, which will support the company’s mission as a world-class food manufacturer in Asia. The Rp 1.2 trillion advancement and modernization project involves integrated improvement in key aspects, ranging from new infrastructure, increased production capacity by 175 percent, adoption of modern manufacturing technology, to application of green technology.
One of the key advancements in the factory is the Triple Zero commitment; the implementation of sustainable manufacturing processes, such as zero waste to landfills, water stewardship, zero emissions, and the use of a biomass boiler and solar panels (generating electricity up to 30 percent). This has doubled the factory’s total investment value to $131 million.
"Driven by the company’s value to “do the right thing,” Heinz ABC Indonesia has reduced emissions by 60 percent and is committed to develop the whole operations sustainably," Head of Operations Indonesia and Papua New Guinea Prasetyo Kismono said.
"The inauguration is an important breakthrough as it will encourage the company’s future developments and brand growth in the national and global markets," said Managing Director Indonesia Papua New Guinea Steven Debrabandere.
AmCham Cares: Nu Skin
NuSkin's mission is to help improve people’s lives, and as part of this it teamed up with disabled communities and micro enterprises to produce and provide select goods for use as new sign-up special gifts at its 2021 and 2022 Expos. Among them were a group of 12 disabled people in Pandaan in Yogyakarta, who do batik making, sewing, and other art crafts daily.
Troubled by slow business during the pandemic, the group was delighted to take orders from Nu Skin. Together with another group of 10 disabled people doing sewing work to order, since mid last year they were able to provide more than 40,000 items for Nu Skin Indonesia worth almost $100,000. The works included making an exclusive design for Nu Skin to be applied to clothes, sewing bags, masks, and headscarves, quality control, and packing the items.
These projects allowed Nu Skin to contribute to driving the economy for small business actors in Indonesia. Such initiatives will be applied regularly in the future as part of Nu Skin's commitment to helping support small enterprises and improve people’s lives.
Let Us Know Your Recent Social Responsibility Initiatives!
We have received positive responses for this program and would like to continue featuring your CSR stories and best practices. It is wonderful to learn the great things that our members are doing for the community.
Contact [email protected]with your CSR stories.
2023 Minimum Wage Announced Today
Governors from all over Indonesia are required to announce the minimum wage increase today, Nov 28, under Minister of Manpower Regulation 18/2022, which also caps a maximum increase of 10 percent.
Although legal challenges and discontent over the regulation remain, some regions began announcing their increases on Nov 27. Jambi, North Sulawesi, and Banten set rises of 9.04 percent, 5.24 percent, and 6.4 percent, respectively. Major provinces such as West, Central, East Java, and the capital Jakarta, have yet to announce their decisions.
Experts advised governors to use the 10 percent cap to push for an optimal rise of the minimum wage, as some believe the increase should have been higher than 10 percent. However, many manufacturing industries are experiencing a significant drop in demand, resulting in a rising number of job losses. Businesses have spoken against the 10 percent cap as burdensome and could potentially worsen layoffs.
Related links:
- https://www.cnnindonesia.com/ekonomi/20221128064825-92-879548/gubernur-wajib-umumkan-kenaikan-ump-2023-paling-lambat-hari-ini
- https://www.cnbcindonesia.com/news/20221128064715-4-391632/perhatian-kenaikan-upah-buruh-2023-diumumkan-hari-ini
- https://katadata.co.id/tiakomalasari/berita/638086bf358f4/apindo-industri-manufaktur-babak-belur-bayar-kenaikan-ump-hingga-10
OJK Preparing New Bancassurance Rules
The Financial Services Authority (OJK) is preparing a new draft Circular Letter concerning Bancassurance – or insurance sales and marketing through banks – in the wake of recent cases of insurance fraud. The draft will replace OJK Circular Letter 32/SEOJK.05/2016 concerning Marketing Channels for Insurance Products through Cooperation with Banks. Bancassurance dominates the insurance marketing channels, contributing Rp 65.69 trillion or 45.7 percent of the total premium income.
The draft has tighter regulations, especially on acquisition fees or commission for selling insurance products attached to a banking product. The draft will prohibit acquisition fees for selling insurance through this mechanism, which will give people cheaper premium prices. This new rule is welcomed by insurance players, saying that without acquisition fees, insurance can set a more competitive premium price for their insurance products.
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Govt to Use Remaining 2022 Funds to Minimize 2023 Debt
Indonesia's excess state budget balance (SAL) will be used to offset the potential of a recession in 2023. With over Rp 270.4 trillion in remaining budget financing (SiLPA), the government already plans to use Rp 70 trillion in the upcoming year. Director General of Budget at the Ministry of Finance Isa Rachmatarwata said the utilization of the Rp 70 trillion is contained in the 2023 State Revenue and Expenditure Budget (APBN) Law.
However, the amount of the fiscal buffer budget the government will allocate for the upcoming fiscal year has yet to be determined. Isa said that since the budget requirements are dynamic, periodic appraisals will be needed to determine the necessary amount. Minister of Finance Sri Mulyani Indrawati said issues such as the Russian invasion of Ukraine, along with a potential increase in exchange rates by the US Federal Reserve, were the reasons for the volatility of today's global market.
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Now is the Time to Join AmCham!
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We offer a full slate of meetings, events, and information for our community online. 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!
AmCham Office and Events
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The AmCham Office is transitioning back to the office. We are still maximizing online meetings, using the Zoom platform, but starting to have in-person meetings. You will be notified of the meetings as they are scheduled.
What is Your Company Doing on COVID-19?
Please let us know what measures your company may be taking in the form of donations and other assistance to help Indonesia during this time of confusion and concern. Contact [email protected] with your news. We would like to publicize the ways that our AmCham companies are pitching in.
Stay well
We urge you to send us press releases and other information that we can pass on to the broader AmCham community. If you have items of interest, please email material to [email protected]. Follow this link to information provided by the US Embassy
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 is the Managing Editor.
