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Indonesia aims to sell only electric-powered cars, motorbikes by 2050

Indonesia aims to sell only electric cars and motorcycles by 2050 to replace vehicles powered by combustion engines, the country's energy minister said on Monday, as the Southeast Asian country seeks to reduce its carbon emissions.

 

All motorcycles sold from 2040 will be electric-powered, while all new cars sold from 2050 will be electric vehicles (EVs), Arifin Tasrif said.


A move towards EVs also supports Indonesia's ambitious plans of becoming a global hub for production, as the country ramps up processing of its rich supplies of nickel laterite ore used in lithium batteries.

 

Indonesia's homegrown ride-hailing giant, Gojek, in April said that the company would make every car and motorcycle on its platform an EV by 2030.

 

Jakarta also announced a target this year to make the country carbon-neutral, including a plan to retire all coal powered plants by 2056.



Source: Reuters

Reporting by Bernadette Christina Munthe; Writing by Fathin Ungku, Fransiska Nangoy; Editing by Ed Davies

Original published date: 14 June, 2021


Read full article here https://www.reuters.com/business/sustainable-business/indonesia-aims-sell-only-electric-powered-cars-motorbikes-by-2050-2021-06-14/

Indonesia, China to reduce USD in bilateral trade

Indonesia and China are closer to reducing their reliance on the US dollar as they plan to start using their own currencies for bilateral trade and investment within weeks.

The switch to local currency settlement (LCS) is expected to take place in the third quarter of this year.

Bank Indonesia (BI) financial market development head Donny Hutabarat said the move was part of Indonesia’s effort to diversify currencies used in trade and investment with bilateral partners. So far, Indonesia has agreed on LCS with Malaysia, Thailand and Japan.

China is Indonesia’s biggest trade partner. According to Statistics Indonesia, China accounts for more than 32 percent of Indonesia’s imports and over 22 percent of exports. The US dollar has been used as the main medium for international trade ever since the establishment of the Bretton Woods system in 1944, which aimed to provide stability and efficiency in foreign trade and prevent competitive currency devaluation. However, in recent years, more countries have begun to use their own currencies instead of the US dollar for cross-border trade and investment in a trend that has become known as dedollarisation.

China, Russia and the EU have been prime movers in the effort to steer away from the US dollar. By doing so, countries are gradually chipping away at the US currency’s global supremacy. Indonesia has already moved to LCS for bilateral trade with other countries of the region, including Malaysia, Thailand and the Philippines.

Source: the Phnom Penh Post

https://www.phnompenhpost.com/business/indonesia-china-reduce-usd-bilateral-trade

Asia Pacific solar PV capacity to triple to 1,500 GW by 2030

SINGAPORE, 13 July 2021 – Asia Pacific solar photovoltaic (PV) capacity could triple to 1,500 gigawatts (GW) by 2030, says Wood Mackenzie, a Verisk business (Nasdaq:VRSK).  

 China will remain leader in the region and globally, adding 619 GW of solar PV capacity over this decade to 2030. The country’s strong policy push and ambitious solar targets mean it will contribute over 60% of Asia Pacific’s solar PV capacity by 2030. 

 Runner-up India is expected to add 138 GW by 2030 after rebounding from an installation decline due to the coronavirus pandemic in 2020-21. As a result, the country is not expected to meet its 100 GW by 2022 target. While solar tenders have been rolled out consistently, the Indian market sees low completion rates. 

Japan and South Korea will follow as third and fourth to install 63 GW and 58 GW, respectively, in the next 10 years. However, high costs have caused a slowdown in new additions in Japan, while South Korea shows the opposite trend. Still, Japan continues to have one of the highest solar PV penetrations in power generation, growing to 13% share by 2030. 

 Coming in at fifth, Vietnam will add 45 GW of solar PV capacity this decade. Feed-in tariffs (FiT) in the country has succeeded in stimulating 5.5 GW and 13.8 GW solar installation in 2019 and 2020, respectively. This outstanding record also made Vietnam the largest solar market in Southeast Asia since 2019. However, installation is expected to slow in the next five years, and then gradually pick up due to the gap between subsidy phase-out and economical grid parity. 

Wood Mackenzie expects Indonesia to become the fastest growing solar PV market in Asia Pacific over this decade. Growing from a low base of 0.3 GW, the country’s solar PV capacity could expand over 28-fold to 8.5 GW by 2030. 

The Asian Development Bank’s US$600 million loan in 2020 to help Indonesia’s state-owned power company PLN expand electricity access and promote renewable energy in eastern Indonesia, lower distributed solar fees, market reforms, and renewables targets are expected to drive the country’s solar PV capacity growth. 

By 2030, 51% of new installs in the top 10 Asia Pacific solar PV markets will be distributed solar due to land constraints and improving competitiveness against rising tariffs. China, with strong national policy and lower tariffs, leads utility-scale deployments, which account for 53% of its total capacity additions this decade. Outside China, distributed solar is a more popular option, accounting for over 60% of solar PV new-build installations in the region. 

Source: PV Magazine Australia

https://www.pv-magazine-australia.com/press-releases/asia-pacific-solar-pv-capacity-to-triple-to-1500-gw-by-2030/

Indonesia could have key EV edge

Indonesia is the world's top producer of nickel, accounting for up to 30% of global production. It has the world's largest nickel reserves, which are set to last for more than 30 years, and also boasts large amounts of copper, bauxite and nickel ore.

 

This makes Indonesia a critical player in the development of lithium-ion batteries, demand for which has skyrocketed over the past two decades as they are used to power mobile phones and laptops.


Demand is set to accelerate as environmentally conscious drivers turn increasingly to electric vehicles (EVs) and hybrid cars. By 2025, around 70 million EVs are expected to be on the world's roads, according to the International Energy Agency.

 

Indonesia's government and businesses are embracing this trend and want to transform the country into a fully integrated global battery production hub, from mining to processing and recycling batteries.


While EVs haven't been popular in Indonesia, demand has increased since President Joko Widodo issued a decree that only electric and autonomous vehicles can be used for transport in the new capital city in East Kalimantan. At the same time, nickel mining and battery development have been declared a key priority sector in recent reforms to encourage investment.

 

Policymakers have been wooing foreign investors and automakers such as Tesla with the promise of growing profits and easier operational, licensing and permit regulations.


Companies are responding. A group of Indonesian state-owned enterprises have formed a new venture called Indonesia Battery Corporation to manufacture batteries, in partnership with Chinese and Korean firms.

 

As of this year, there were 328 nickel mining business permits issued for exploration and 280 permits issued for production, indicating an increase in uptake, according to the Mining Advocacy Network.


Source: Bangkok Post
Author: Dr Thaweelap Rittapirom
Original published date: 5 July, 2021

Vietnam’s aquatic export targets 9 billion USD in 2021

Vietnam’s aquatic export is hoped to hit 9 billion USD in 2021 thanks to the recovery of consumption in key markets such as the US, the European Union (EU), and other potential markets.
Vietnam’s aquatic product export in the first six months of this year reached 4.1 billion USD, a year-on-year increase of 20 percent, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Tra fish was one of the main contributors to aquaculture’s export growth.
In the US market, two Vietnamese producers of Tra fish have been given a zero-percent anti-dumping tariff, which helps facilitate the shipment of the product to this market.
Export of Vietnamese tra fish to many markets including Mexico, Brazil, the UK, Thailand, the Netherlands, Colombia and Russia has shown three-digit increases, compensating for a decrease in the Chinese market, which remained the biggest importer of tra fish from Vietnam, accounting for 26 percent of the total.
Along with tra fish, the export of other seafood products also went up, contributing to the 4.1-billion-USD export turnover in the period.
VASEP reported that by the end of June 2021, tuna export earned 364 million USD, up 24 percent against the same period last year. Meanwhile, the squid and octopus export totaled 277 million USD, posting a year-on-year rise of 15 percent.
General Secretary of VASEP Truong Dinh Hoe said the export of squid, octopus, and tuna has witnessed strong growth in most major markets in recent times.
The US is consuming 43 percent of Vietnam's tuna, Hoe said, adding that when the US market reopens, all tuna product segments have the opportunity to increase market share in this country.
Other key markets all have recorded optimistic signals with high growths, Hoe noted.
Typically, Vietnam’s export of squid and octopus to Italy, Canada, and Israel climbed by 122 percent, 62 percent, and 37 percent, respectively, in the Jan – June period. The biggest importer of Vietnam’s squid and octopus – the Republic of Korea with a market share of 41 percent, also showed a rise of 7-8 percent./.
Source: VNA

Vietnam's agro-forestry and fishery exports to the EU still increase steadily

A representative of One IBC Vietnam Company said that the EU is the fourth-largest importer of Vietnamese agricultural products. Along with the import tax exemption and reduction under the EVFTA, Vietnamese exports seem to be strengthened to increase competitiveness and affirm their position in the international market.
These days, consecutive shipments of fresh lychee by air have been exported by Vietnamese enterprises to the Czech Republic, Germany, France, and Belgium. Tran Van Cong, Vietnam’s agricultural counselor in Europe, informed that the first batch of lychee arrived in Belgium, an important milestone, as a special “passport” proving the production level of Vietnamese agriculture.
According to the Vietnam Association of Seafood Exporters and Producers (Vasep), European importers tend to be more interested in Vietnamese seafood suppliers with tariff advantages from EVFTA and stable sources of raw materials. Vietnam’s seafood exports to the EU in the first 5 months of the year reached over 380 million USD, up 15% over the same period last year. In which, shrimp still accounted for 50%, with nearly 199 million USD, up 22% over the same period last year.
Vasep expects that Vietnam’s seafood exports, especially high-end products, will increase when out-of-home dining services in the EU are gradually reopened.
The plan to bring agricultural and seafood products to the EU market is still being vigorously implemented. Mr. Le Ba Linh, Chairman of the Board of Directors of Pacific Foods, said that after bringing lychee to conquer the EU through the Czech Republic, it will be the turn of jackfruit, dragon fruit and rice that this unit promotes exports to this market. “We are confident that we will be able to do this because we have been exporting fish sauce for 10 years to the US market and are ranked in the top 1 in terms of Mami fish sauce brand on Amazon”.
Source: HNN (mard.gov.vn)


Rehabilitation loans have reached 21,929 SMEs.

The Bank of Thailand said THB66.898 billion had been disbursed under the latest loan rehabilitation project, as of July 5, with approvals given to 21,929 people who received assistance, with a limit of THB3.1 million per person.

The BOT had opened for financial institutions to seek loan rehabilitation on April 26, consisting of measures to support loan rehabilitation of THB250 billion and the Asset Warehousing project with a budget of THB100 billion.

Loans approved to SMEs amounted to THB31.629 billion, or 47.3 per cent. It said 9,674 people received credit lines accounting for 44.1 per cent, followed by THB27.464 billion to large businesses, accounting for 41.1 per cent, and debtors about 7 per cent.

OPEC+ crisis propels oil to six-year high as market tightens

Oil fell the most since late May as a stronger dollar spurred a broad sell-off across the commodities complex while uncertainty over OPECs next move loomed large in the markets.

Futures in New York slid 2.4% on Tuesday. The U.S. dollar rose, making commodities priced in the currency less attractive to investors. The pullback in crude is a stark reversal from earlier in the session when futures soared to a six-year high amid an escalating fight between Saudi Arabia and the United Arab Emirates that has pushed OPEC+ into crisis and blocked a potential increase in oil supplies next month.

"Lots of uncertainty is lying ahead about the group's output policy in coming months and this will lead to increased volatility," said Tamas Varga, an analyst at PVM Oil Associates Ltd. in London.

Oil prices have staged a massive rally this year as vaccination campaigns and economic reopenings have prompted a comeback in global fuel consumption. Tuesday's volatility underscores how uncertain the supply picture has become while the world's largest crude producers remain at a standstill over how to respond.

Discussions among the alliance dissolved acrimoniously as the United Arab Emirates blocked a proposal led by Saudi Arabia and Russia. While the situation is fluid and negotiations could be reactivated, the breakdown has damaged the group's image as a responsible steward of the market.

"Demand has been the primary signal for the oil markets for the last year or so," said Louise Dickson, oil markets analyst at Rystad Energy. "Now, we've started to reach this pivot where the supply uncertainty is driving the prices and this time, it's actually been stoked by OPEC+ itself."

Meanwhile, Biden administration officials have spoken with officials in Saudi Arabia and the United Arab Emirates in hopes of reaching an agreement to stem the rise in crude prices, White House press secretary Jen Psaki said Tuesday.

The U.S. hopes talks will lead to an agreement that "will promote access to affordable and reliable energy," Psaki said during a briefing at the White House. The impact of talks on gas prices in the U.S. is of interest to the administration, she said.

WTI hit the highest since November 2014, as the breakdown in talks left the market without extra supplies for next month. Tuesday's subsequent pullback in prices stems from concern or "skepticism that this is not the real oil price, and the last two or three days have reminded us that OPEC+ is holding this thing together," said Christyan Malek, head of oil and gas research at JPMorgan Chase & Co., in a Bloomberg television interview.

The 23-nation OPEC+ coalition had been on the brink of an agreement to restore production halted during the pandemic, in monthly increments of 400,000 barrels a day. That plan could still be ratified, or members may choose to informally leak barrels to eager consumers.

The lack of OPEC+ unity could invite new barrels to the market and spell bearish news for current prices, said Tom Finlon of Brownsville GTR LLC, a trading and logistics firm based in Houston.

"I think if you have 23 oil-producing countries that are party to an agreement, and that agreement isn't extended, and the price of crude is in the mid-70s, that's an engraved invitation to overproduce," said Finlon.

Oil and Dollars: Why the UAE Is Risking a Falling-Out With OPEC+

Traders will also look to crude and gasoline inventory data in the U.S. released by the industry-funded American Petroleum Institute on Wednesday for signals on how strong demand is in the midst of the summer driving season.

By : Syndication Washington Post, Bloomberg · Jill R. Shah

Mother of Spices: Indonesia Eyes to Boost Spice Export to the EU

According to the Coordinating Ministry for Economic Affairs, the global demand for spices is rising amid the Covid-19 pandemic as the world is becoming more aware of its healing properties.

 

The ministry's food and agribusiness coordination deputy Musdhalifah Machmud noted Indonesia recorded $218 million for spice export in January-April 2020, a 19.28 percent rise from the same period in 2019. 

 

"A market prospect that we should address is that the global spice consumption increases 2 to 5 percent per year, with a value of $16.6 billion in 2013," Musdhalifah told the Sustainable Spices Initiative Indonesia (SSI-I) virtual launch on Thursday.

 

Musdhalifah said major economies such as the EU, the US, and Japan amount to 47 percent of the total global spice import. She also saw a tremendous opportunity in the EU market.

 

"The EU holds the largest share, or 34 percent, in the global spice imports, mainly from China, India, Indonesia, and Brazil. The EU is also predicted to have a fivefold increase in spice imports in 2050."



Source: JakartaGlobe

Author: Jayanty Nada Shofa

Original published date: 30 April, 2021


Read full article here https://jakartaglobe.id/business/mother-of-spices-indonesia-eyes-to-boost-spice-export-to-the-eu

Indonesia, ASEAN agree to keep trade open amid COVID-19

The agreement was reached during the Special ASEAN Economic Ministers (AEM) Virtual Conference Meeting on COVID-19 Responses.

 

The meeting discussed the joint efforts taken by ASEAN countries to deal with the COVID-19 pandemic, and followed up on an agreement reached by the heads of states and governments of ASEAN in the Declaration of the Special ASEAN Summit on Coronavirus Disease 2019 and the previous ASEAN Economic Ministers (AEM) meeting, which produced the AEM's Statement on Strengthening ASEAN's Economic Resilience in Response to the Outbreak of COVID-19.

 

"Indonesia and the ASEAN economic ministers are committed to exploring mechanisms to maintain supply chain connectivity and ensure the smooth flow of trade in essential goods in the Southeast Asia region, particularly those related to handling the COVID-19 pandemic," Deputy Trade Minister Jerry Sambuaga said in a statement in Jakarta on Friday.

 

At the meeting, ASEAN economic ministers also agreed on the Hanoi Plan of Action on Strengthening the ASEAN Economic Cooperation and Supply Chain Connectivity in Response to the COVID-19 Pandemic, he added.

 

The agreement includes cooperation in enabling trade of important goods (food, medicines, medical equipment, and other related products), as well as assisting production of and improving access to COVID-19 medicines and vaccines through the strengthening of supply chain connectivity.

 

Governments and businesses in ASEAN are committed to working together to deal with the COVID-19 pandemic, including in efforts to mitigate the adverse impact of the pandemic in the social and economic fields.

 

Several business sectors in ASEAN have been negatively affected by the COVID-19 pandemic, including travel, essential goods and related supply chains, medical services, and digital tools.

 

The Vice Minister of Trade urged all countries to work together to arrest and stop the spread of COVID-19.

 

"The Indonesian government is prioritizing the protection of public health, while maintaining that the production and distribution chain of important goods, both domestically and abroad, continues to run smoothly," he concluded.



Source: Antara News

Reporter: Sella P, Azis Kurmala

Editor: Sri Haryati

Original published date: 6 June, 2021


Read full article here https://kalsel.antaranews.com/berita/176084/indonesia-asean-agree-to-keep-trade-open-amid-covid-19

Indonesia Successfully Recorded a Trade Surplus with Switzerland

Good News for Indonesia comes from Switzerland, although the global economic situation has not yet recovered due to the impact of the pandemic, Indonesia persisted and managed to record a trade surplus with Switzerland. Indonesia's trade performance strengthened and showed a surplus in May 2021, after declining in the previous months this year.

 

According to the Swiss Federal Customs Administration/FCA, the total value of Indonesia's exports to Switzerland in the January-May 2021 period is USD 782 million. Meanwhile, the value of Indonesia's imports from Switzerland is USD 159 million USD. Thus, Indonesia-Switzerland trade reached a surplus for Indonesia of USD 623 million during the first 5 months of 2021.

 

“This is good news, although world trade tends to decline, Indonesia can still maintain a trade surplus with Switzerland. We hope that in the future the value of Indonesia's trade surplus to Switzerland will remain," said the Indonesian Ambassador to Switzerland and Liechstentein, Prof. Muliaman Hadad, Ph.D.

 

The positive developments in the trade sector are expected to be the main capital in efforts to recover the economy for both countries. The momentum of the trade surplus recorded by Indonesia against Switzerland is also expected to contribute to the economic recovery process and help build back better efforts.

 

There has been a shift in the order of Indonesia's main export commodities, especially in turbine engines and spare parts, furniture, and essential oils. When viewed from the value, all three experienced an increase in the January-May 2021 period compared to 2020 in the same period.

 

Indonesia - The EFTA CEPA (IE-CEPA) is an important agreement and it is hoped that through this agreement the opportunities will be more open for market access for trade in goods, services, and investment so that it will further encourage the strengthening of bilateral economic cooperation between Indonesia and Switzerland. Quoted from the EFTA page, Switzerland is the highest importing country from Indonesia compared to other EFTA countries, which is more than 65% of the total imports of EFTA countries from Indonesia.

 

The IE-CEPA does not only cover cooperation in trade in goods and services, but also investment. This year, for the first time, Switzerland is in the 5th Foreign Direct Investment list in Indonesia in first quarter of 2021.



Source: The Ministry of Foreign Affairs of the Republic of Indonesia

Original published date: 29 June, 2021


Read full article here https://kemlu.go.id/bern/en/news/14217/indonesia-successfully-recorded-a-trade-surplus-with-switzerland

Hong Kong firms urged to expand or set up shop in PH

The Department of Trade and Industry (DTI) has invited Hong Kong companies to expand or set up shop here to ride on the Philippine expected recovery this year, as it strengthens trade and investment ties with other countries.

“We believe that the continued gradual and calibrated reopening of the Philippine economy, together with the country’s rollout of vaccination, is keeping us on track towards a V-shape recovery. We are already seeing some signs of recovery with respect to our GDP (gross domestic product) growth, record investment, and export growth rates that also led to about 72 percent growth last April, even higher than the 2019 pre-pandemic levels,” DTI Secretary Ramon Lopez said in a virtual forum.

Lopez said the game-changing Corporate Recovery and Tax Incentives for Enterprises (CREATE) law will make the investment climate in the Philippines significantly more attractive.

He cited the continued rollout of the government’s massive “Build, Build, Build” infrastructure program, and the implementation of streamlining and digitalization in government services to facilitate ease of doing business in the country.

“These are just a few of the many reasons why (the) Philippines is an ideal complement to Hong Kong businesses that planned to expand their R&D (research and development) activities, manufacturing activities, and IT (information technology) and business process management activities. Just to note we have a lot of companies with Hong Kong equity doing business in the Philippines,” he said.

Lopez said the Philippines has preferential access in major markets through the free trade agreements (FTAs), including European Union’s Generalized Scheme of Preferences Plus (GSP+) and the United States’ GSP program which is under discussion for renewal.

The government has also submitted its interest to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which will expand Philippine trade ties creating more opportunities to enhance competitiveness and market access for companies to the country, he added.

The CPTPP is a free trade deal of 11 member economies of the Asia-Pacific Economic Cooperation (APEC).

“We would like to point out that the Philippines can be a strategic hub in the Asia Pacific for hyperscalers. We would like to invite you to look at the Philippines to either co-locate or put up data centers here leveraging on our large population and propensity to consume data, foreign content, and cloud services. We also have the necessary infrastructure as well as the regulatory environment to attract hyperscalers,” Lopez said.

He assured Hong Kong companies that the DTI, through the Board of Investments (BOI), and the Philippine Trade and Investment Center based in Hong Kong will assist them to facilitate their business interest.

The Trade chief said Hong Kong is the country’s fourth largest trading partner, fourth biggest export market, 11th import supplier, and 16th investment source in 2020.

Edward Yau, Secretary for Commerce and Economic Development of Hong Kong SAR government, said mainland China and Hong Kong constitute more than a quarter of the Philippine exports, surpassing the US and Japan.

“I would say that the relationship between Hong Kong and the Philippines is not just strong, but it also has a lot of potential to grow. (In the) global picture, both Hong Kong and the Philippines are at the center of the global trade because of geographical location, because (both) believe in free trade and also the robust economy that we both share,” he said.

Yau said the fight against the coronavirus opens up business opportunities in services and trade related to public health and pandemic containment.

Steve Chuang, deputy chairman of Federation of Hong Kong Industries, said their members found that 60 percent of the Philippine exports are electronics industries.

“Among these exports, 75 percent are semiconductor and the semiconductor-related business so you can see that for electronic business, the Philippines is a mature area to do business and it is good they have a (stable) supply chain which is very good for
electronic manufacturing companies,” he said.

Jesus Varela, Director General of International Chamber of Commerce Philippines, said the digital sphere presents opportunities as the coronavirus accelerated digitalization.

“The sale of smartphones, laptops and computers was never so brisk in the first months of the pandemic and in the period of April to May, there were about at least 200,000 new websites and platforms created and suddenly social media was inundated with all kinds of goods to sell and services to offer. But by and large, we are the winners wherein the healthcare and pharmaceuticals industry that was in the frontline in the battle versus Covid and the uncertainty of when the lockdowns end has benefited the food manufacturers,” he said.

Varela said other winners are the telecommunications and broadband service amid the work-from-home arrangements and would service the household or businesses whether for entertainment, education or professional use.


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