Prabowo Orders Four Ministers to Save Local Textile Giant
The government will make every effort to save textile company PT Sri Rejeki Isman (Sritex), as stated by the Minister of Industry after the Semarang District Court (PN) recently declared Sritex bankrupt. Saving Sritex is a direct order from President Prabowo, who has requested several relevant technical ministries to conduct in-depth studies to rescue Sritex. President Prabowo has ordered the Ministry of Industry, Ministry of Finance, Minister of State-Owned Enterprises (BUMN), and Minister of Manpower to immediately study various options and plans to save Sritex. Apart from that, the government's current top priority is to ensure that Sritex employees are not threatened by layoffs (PHK). The government will take immediate measures to keep the company operating and avoid layoffs; this rescue package will be proposed as soon as the four ministries have formulated the rescue method. Previously, PT Sri Rejeki Isman Tbk (SRIL) or Sritex had filed an appeal against the court's decision. In that decision, the Semarang District Court declared Sritex and its three subsidiaries, PT Sinar Pantja Djaja, PT Bitratex Industries, and PT Primayudha Mandirijaya, bankrupt. Sritex management stated in a written statement that they respect the legal decision and responded quickly by conducting internal restructuring and integrating with relevant stakeholders. They have filed an appeal to resolve this matter properly and ensure the interests of stakeholders are met. Sritex management stated that this is their responsibility toward creditors, customers, employees, and suppliers who jointly support the company's business. Currently, around 14,112 employees are directly affected by the company's situation, while the Sritex Group has 50,000 employees. Meanwhile, Sritex declared bankruptcy after being deeply entangled in debt problems in recent years. As of the end of last year, Sritex's short-term liabilities amounted to USD 113.02 million, of which USD 11 million was short-term bank debt with Central Asia Bank (BBCA). Meanwhile, out of USD 1.49 billion in long-term liabilities, USD 858.05 million was bank debt. Most of the long-term bank debt is syndicated debt (Citigroup, DBS Bank, HSBC, and Hang Seng Bank) worth USD 330 million. In addition, BCA, QNB Indonesia, Citibank Indonesia, BJB Indonesia, and Mizuho Bank are listed as the largest creditors, each with SRIL liabilities exceeding USD 30 million. In addition to the above five banks, the company also has debts to 19 other banks, most of which are foreign or private foreign banks. In the latest disclosure, the textile company stated that its increasing debt had led to employee layoffs. As of March 31, 2024, the company's debt details that had not yet matured were worth USD 31.67 million, an increase of USD 8.7 million from December 2023. Debts due within 30 days then rose to USD 630,000. Then 31–90 days increased by USD 1.2 million, and 91–180 days increased by USD 468,000. In addition, SRIL also restructured its short-term debt securities (MTN), which originally matured from May 18, 2021, to August 29, 2027. Due to cash problems, the company proposed a relaxation of MTN principal and interest payments. These financial difficulties ultimately forced Sritex to implement layoffs; over the past year, the company has laid off 2,232 employees, reducing the workforce from 16,370 at the end of 2022 to the remaining 14,138 at the end of last year.
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Indonesia's September Imports Down 8.91% Compared to August
The Central Statistics Agency (BPS) noted that by September 2024, total imports reached USD 18.82 billion. This figure decreased by 8.91% compared to August 2024. The Head of BPS explained that the decline in imports came from oil and gas, amounting to USD 2.53 billion, down 4.53% month-over-month. Non-oil and gas imports stood at USD 16.30 billion, a monthly decrease of 9.55%. Even so, on an annual basis, September 2024 imports still grew by 8.55%. The monthly decline in imports was driven by a decrease in non-oil and gas imports and a decrease in oil and gas imports.
Indonesian Industry Reacts to Anti-Dumping Duties on Chinese Ceramic Imports
Indonesia has officially imposed additional anti-dumping import duties (BMAD) on ceramic tile products imported from China. This policy was determined by the Minister of Finance through the issuance of Minister of Finance Regulation (PMK) Number 70 of 2024 concerning the imposition of anti-dumping import duties on ceramic tile products imported from China. The PMK was signed by the Minister of Finance on October 9, 2024, and takes effect 10 days after its promulgation on October 14, 2024, specifically on October 24, 2024. The PMK is valid for 5 years. The General Chairman of the Indonesian Ceramic Industry Association (ASAKI) stated that the introduction of BMAD will mark the beginning of the revival of the national ceramic industry, which has suffered severe damage over the past decade due to dumping practices, leading to the closure of many factories and a decline in the utilization rate of national ceramic products. Meanwhile, the BMAD rate did not reach the 100% figure predicted a few months ago. Although the set BMAD rate is only around 35% to 50%, Asaki remains positive, noting that this is still lower than the hoped-for rate of over 100%, as seen in other countries like Mexico and the United States. The current hope of business participants is to extend the safeguard import duties so that they can take effect on schedule in November to complement the BMAD percentage.
Indonesia's North Java Sea Wall Project Plans to Attract Foreign Investment
President-elect Prabowo plans to cooperate with Chinese investors to develop a massive sea wall along the northern coast of Java Island. The Deputy Chairman of the Gerindra Party Advisory Board stated that he has approached several companies from China. He has been to Beijing twice and Hong Kong twice, and some are interested. In China, the real estate business has saturated, so they are interested in entering the sea wall project. Prabowo's concept for the giant sea wall project will implement a Government and Business Entity Cooperation (KPBU) scheme, where the government holds a 20% stake and the private sector holds 80%. Interested parties
Prabowo's Cabinet List Officially Announced
On Sunday evening (October 20, 2024), President Prabowo and Vice President Gibran announced the composition of the cabinet for the 2024-2029 term at the Jakarta Presidential Palace. The Prabowo cabinet consists of 109 ministers, deputy ministers (wamen), heads of agencies, and ministerial-level agency heads. Below is the complete list of ministers, deputy ministers, heads of agencies, and ministerial-level agencies in the Prabowo-Gibran cabinet: Budi Gunawan as Coordinating Minister for Political and Security Affairs, Yusril Ihza Mahendra as Coordinating Minister for Law, Human Rights, Immigration, and Corrections
Prabowo Inaugurated as Indonesian President: Ushering in a New Era
On October 20, a historic moment will be witnessed as Indonesia undergoes a presidential transition. From 2014 to 2024, the long-serving leader Joko Widodo will step down after 10 years in office, and Prabowo Subianto will succeed him as the new president for the 2024-2029 term. What are the highlights of this presidential inauguration: First, the presidential inauguration ceremony will take place on October 20 at 10:00 AM Jakarta time (11:00 AM Beijing time) at the Indonesian Parliament Building. It is expected that representatives from 35 friendly countries will attend. Under the leadership of the Speaker of the People's Consultative Assembly, the new President Prabowo and Vice President Gibran will be sworn in
32 Chinese Ceramic Tile Companies Subject to Indonesian Anti-Dumping Duties
On October 9, the Indonesian Minister of Finance signed Anti-Dumping Regulation No. 70 of 2024, imposing mandatory anti-dumping tariffs on ceramic tile products from China. The regulation was promulgated on October 14 and will come into effect 10 days later, on October 24, with a validity period of 5 years. In the annex of this regulation, 32 Chinese ceramic tile companies are identified as subject to anti-dumping import duties (BMAD). Foshan Sunshine Ceramics Co., Ltd.: IDR 14,324 per square meter Guangdong Haosen Ceramics Co., Ltd.: IDR 1
Ambassador Wang Lutong Attends the First Anniversary Celebration of the Jakarta-Bandung High-Speed Railway Operation
On October 17, Ambassador Wang Lutong attended the celebration of the first anniversary of the official operation of the Jakarta-Bandung High-Speed Railway and the 9th anniversary of the establishment of PT Kereta Cepat Indonesia China (KCIC) and delivered a speech. Present at the event were Indonesian Minister of Transportation Budi, Deputy Minister of Manpower Nur, KCIC President Director Dwiyana, and PT Kereta Api Indonesia (KAI) President Director Didik. In his speech, Ambassador Wang stated that under the personal attention of the two heads of state and the joint efforts of the builders and operators of the China-Indonesia high-speed railway, the Jakarta-Bandung High-Speed Railway has been operating safely, efficiently, and continuously, with its comprehensive benefits gradually emerging. The successful operation of this railway not only symbolizes