6.5% Minimum Wage Hike Poses Heavy Burden on Indonesian Businesses
The Economic Policy Analyst of the Indonesian Employers' Association assessed that a 6.5% increase in the minimum wage will place a heavy burden on the business community, especially in labor-intensive industries, which are currently a focus of the government's efforts to reduce unemployment. While the government aims to encourage a lower unemployment rate, it is simultaneously imposing excessive burdens on businesses. They hope the government can adopt a more neutral policy. The policy is intended to ensure sustained minimum wage growth while taking into account the productivity and competitiveness of national industries. Previously, President Prabowo announced an average 6.5% increase in the minimum wage for 2025.
BYD Leads Indonesia's Electric Vehicle Market
Indonesia's 2025 Minimum Wage Standard Increased by 6.5%
Indonesia Reduces Industry Sectors Closed to Foreign Investment from Over a Hundred to Five
Indonesian Local Textile Industry Complains Imported Goods Impacting the Indonesian Market
Indonesia's 267 trillion rupiah mineral downstream investment requires 5 gigawatts of electricity
Mining holding company MIND ID plans to invest 267 trillion rupiah to support downstream projects of its four members until 2029, a budget that has been planned for some time. The product director stated that the projects require a large amount of energy, with at least 5 gigawatts of electricity needed by 2029. However, this demand is not included in PLN's power supply plan, so the company will have to build its own power plants, not to mention supporting needs such as roads and housing. Taking the bauxite downstream project in West Kalimantan as an example, although production is limited, it has already boosted local per capita GDP to double digits, benefiting restaurants, boarding houses, etc., and can drive regional economic growth in the future. If entirely borne by the company, the burden would be too heavy, requiring cooperation from all parties to support President Prabowo's downstream plan. Currently, the government wants to strengthen downstream development but lacks electricity, making the provision of primary energy a top priority for industrial planning.
17 Indonesian companies ready to become Apple suppliers
The Ministry of Industry expects domestic companies to integrate into Apple's global supply chain, with about 17 domestic companies ready to enter Apple's value chain, covering components such as chargers and LEDs. At the same time, the government is advancing research on digital development related to Industry 4.0 and has proposed to Apple to help drive the digital transformation of Indonesia's manufacturing sector in order to achieve an 8% economic growth target. Recently, the Ministry of Industry received a $100 million investment proposal from Apple for the next two years to build a factory for AirPods Max headphone bearing components, which is related to Apple's efforts to persuade the Indonesian government to lift the ban on the iPhone 16 series. Currently, the government is considering whether the proposal is fair, comparing Apple's investments in Indonesia with those in Vietnam, India, and other countries, as well as other smartphone manufacturers. In addition, Indonesia hopes that Apple will build factories to create added value and absorb labor, rather than just using Indonesia as a product sales market.
The average annual expenditure of Indonesian residents this year is 12.34 million rupiah
Data from the Central Statistics Agency shows that the average real expenditure of Indonesia's population in 2024 will be 12.34 million rupiah per person per year, representing a considerable increase compared to 2023. Indonesian people's expenditure increased by 442,000 rupiah, or 3.71%. In fact, the growth rate in 2024 is the highest compared to the average level in recent years. This increase is higher than the average growth rate (per capita real expenditure) during the 2020-2023 period, which was only 2.61%. In 2023, the average annual expenditure of Indonesian citizens was only 11.89 million rupiah, which was an improvement over the previous year.
Indonesia Imports 402,000 Tons of Garlic from China from January to October 2024
Indonesia's Central Statistics Agency revealed that from January to October 2024, Indonesia imported 402,000 tons of garlic worth USD 532.47 million (equivalent to IDR 8.4 trillion). The imported garlic mainly came from several source countries, including China, India, and Australia. China supplied 400,840 tons worth USD 529.22 million; India supplied 175 tons worth USD 3.07 million; and Australia supplied 2.04 tons worth USD 67,000. Among the three main source countries, China had the largest import volume, followed by smaller amounts from India and Australia. Garlic prices
Indonesia's Best-Selling Car in November: Innova Takes the Lead, Surpassing Avanza and Brio
The Toyota Avanza was once the best-selling car in Indonesia, but the Innova overtook it in November with 5,908 units sold. As of October, the Innova was the top seller with 5,693 units. In 2023, the Innova also became the best-selling car, defeating regular top sellers like the Toyota Avanza and Honda Brio. In November, the Avanza ranked second after the Innova, followed by the Honda Brio, which was the best-selling model at the start of the pandemic. The BYD M6 MPV electric vehicle, which entered the top ten last month, has now dropped to 11th place. November 202
Latest Official Fee Standards for Indonesian Visas and Stay Permits
Indonesia has officially implemented the updated Non-Tax State Revenue (PNBP) regulation, revising fees for immigration services such as visa applications, stay permits, and passport issuance. The taxes for Category C and D business visas have generally increased by IDR 1 million (approximately RMB 450), and the B2 business visa on arrival has been abolished. The new regulation takes effect from December 17, 2024. Latest Fee Standards: • 7-day Visa on Arrival: IDR 250,000 • 30-day Visa on Arrival: IDR 500,000 • 60-day Single Entry Visa
Indonesia is Becoming a Hub for Photovoltaic Production Capacity
The photovoltaic cell and module production line at the Yuncheng Photovoltaic Indonesia factory has officially commenced operations, with a nameplate capacity of 2.5GW each, capable of producing PERC and n-type products. Its CEO stated that the United States is an important market, and by mid-2025, American customers will be able to purchase products from Indonesia, Laos, or the United States, with US-made modules available by early 2026. The Batam battery factory utilizes 5G technology and automated logistics, starting operations in September 2024, and is already meeting customer demand for advanced solar technology. Indonesia is becoming a new hotspot for photovoltaic production capacity. A 5GW ingot-to-module factory in Central Java started construction in September 2024, with Phase I expected to be completed in Q2 2025