AmCham Update Vol. 3 #133

Criminal Code Update, EV Subsidies in 2023, Convoys Aid Cianjur Victims, BI Digital Currency Plan, Slight Inflation Fall

Dec 02, 2022

Criminal Code Bill Abolishes Defamation Article in ITE Law

The latest draft of the Criminal Code Bill (RKUHP) has removed the defamation and insult clause from the Electronic Information and Transaction Law (ITE Law), according to Deputy Minister of Law and Human Rights, Edward Hiariej, during the bill’s update meeting at the President’s Office on Nov 28.

The bill has established a distinct line between insult and criticism, especially with relation to Articles 27 and 28 of the ITE Law which are seen as ambiguous. However, criminal threats associated with criticizing the government are still included.

Coordinating Minister for Political, Legal, and Security Affairs Mahfud MD previously said the government would not change or revise the ITE Law, but only make a few adjustments on provisions deemed controversial in the criminal bill, as instructed by President Joko Widodo.

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Govt to Subsidize Electric Vehicles

The government plans to provide subsidies for the purchase of electric motorcycles of around Rp 6.5 million per unit starting next year to increase their use, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan has announced. The incentive is also intended to reduce the government’s expenditure on fuel subsidies, he added. Similar subsidies will also be provided for four-wheel electric vehicles, but the Ministry of Finance said the detailed plan is still under discussion.

Automotive manufacturers responded positively to the move, but said the government needs to conduct more studies on customer purchasing power to find out the most preferable EV price to boost purchases. However, the House of Representatives said the policy will only benefit automotive manufacturers and will be a financial burden for the government.

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AmCham Cares: Grand Hyatt

Grand Hyatt Jakarta was one of the sponsors of the Rebuild My School Charity Golf Tournament by Happy Hearts Indonesia. The charity event, held on Nov 3, raised funds to rebuild two pre-schools in Malaka, West Timor: PAUD Sinar Kfauleur and PAUD Mane Ikun. The program is aligned with Hyatt’s World of Care value, where the hotel supports better access to education for children and the community.

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.

Volunteer Convoys Helping Cianjur Victims

Following a call for donations for the victims of the Nov 22 Cianjur earthquake, two volunteer convoys of private vehicles, plus a truck donated by Asian Tigers, drove the 70km from Jakarta with provisions and offering practical help on Nov 23 and 29. Another convoy is planned for this Sunday, Dec 4.

The quake killed 321 people and dislocated thousands, the government has said.

Organized by long-term expat Terry Burkin of Sanctuary Risk, the aid drive has so far raised Rp 300 million from 120 donors. Indonesians, expats based here, companies and concerned people overseas have all donated. The effort is ongoing with donations coming in daily.

The trips have directly impacted thousands of villagers, most of whom are women and children. The six affected communities helped so far need long-term help in rebuilding or relocating, and received immediate shelter, a dry floor to sit, rest and sleep on (thick tarpaulins as ground sheets with mats on top), warmth (clothes, pajamas, socks, blankets), food (rice, noodles, eggs, fruit and vegetables, baby formula, drinks powders, sugar, salt, cooking oil etc), a means to cook (gas stoves), and utensils to eat with; along with hygiene and sanitary products (nappies, sanitary pads, talc, disinfectant wipes, stomach medicine, eucalyptus oil, Panadol, soap, shampoo etc).

The next convoy of six vehicles of volunteers will leave on Dec 4, including a large shipment of hygiene products donated by Cussons; more clothes and a full bottle of oxygen with ventilator mask and regulator.

If you would like to donate, please WhatsApp Terry on 62 813 8133 9955.

BI Outlines Digital Rupiah Plan

Bank Indonesia has unveiled the Garuda Project, an initiative exploring the development of Indonesia’s digital rupiah or central bank digital currency (CBDC). Bank Indonesia Governor Perry Warjiyo said the digital currency project will be carried out in three phases: wholesale CBDC (W-CBDC) for business models of issuance, destruction, and interbank transfers with digital currency; monetary operations and money market business models; and end-to-end W-CBDC integration with retail CBDC (R-CBDC).

Additionally a white paper was also released, as an initial presentation on the Garuda Project in the form of a high-level design. The report covers the design configuration of the digital rupiah, design features that allow for the creation of new business models, and details on the regulatory support and policy tools for the implementation of the digital rupiah design.

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Non-Subsidized Fuel Price Hike

Non-subsidized fuel prices at Pertamina and other private fuel stations increased on Dec 1. The price of Pertamax Turbo, Dexlite, and Pertamax Dex rose to Rp 15,200, Rp 18,300, and Rp 18,800 respectively. Similar hikes were also seen at BP-AKR fuel stations, where the price of BP 90, BP Ultimate, and BP Diesel rose to Rp 14,050, Rp 15,100, and Rp 18,380, respectively.

This price hike was the result of a monthly evaluation in accordance with world fuel prices as observed in the Mean of Platts Singapore (MOPS), said Pertamina Patra Niaga Corporate Secretary Irto Ginting.

MOPS is the average of a set of Singapore-based oil product price assessments published by Platts, a global energy, petrochemicals, metals and agriculture information provider and a division of S&P Global.

Because of rising global prices, Pertamina decided to raise the price of non-subsidized fuels. However, no price change was seen in subsidized fuels, Pertalite and Pertamax.

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Inflation Falls Slightly to 5.42%

Indonesia saw inflation in November of 5.42 percent year-on-year (YoY), a slight fall from 5.71 percent YoY in October and lower than Bank Indonesia predictions, according to Statistics Indonesia. However, some commodities are still experiencing high inflation rates, such as fuel, cigarettes, rice, and eggs.

Indonesia’s Manufacturing Purchasing Managers Index (PMI) also fell to 50.3 in November, from 51.8 the previous month, reflecting pressure in the industrial sector.

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Now is the Time to Join AmCham!

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!

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AmCham Office and Events

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.

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