Indonesia Focuses on Agricultural Downstream to Dominate ASEAN Region
Falling commodity prices and China's economic slowdown will pose challenges for the new government in boosting exports, yet Indonesia also has significant export potential in the agricultural downstream sector. After the outbreak of the Russia-Ukraine war in February 2022, commodity prices surged in 2022. Prices of coal, gold, and crude palm oil (CPO) hit record highs one after another. Data shows that the average coal price in 2022 reached US$345.41 per ton, up 128.6% from the previous year. Similarly, the average annual price of crude palm oil soared to RM 4,155.1 per ton in 2022, an increase of 134%. In 2022
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Indonesia Plans to Ban Sales of Fuel Vehicles by 2045
The government plans to increase the use of electric vehicles at increasingly affordable prices, while traditional vehicles using gasoline (BBM) will be restricted due to a sales ban. The Coordinating Ministry for Maritime and Investment Affairs (Kemenko Marves) stated that it is formulating a ban on the sale of traditional vehicles based on internal combustion engines (ICE) using gasoline. The Deputy for Infrastructure and Transportation Coordination at Marves said that banning the sale of gasoline vehicles will be part of efforts to accelerate the adoption of electric vehicles or battery electric vehicles (BEV). They continue to work on formulating a policy mechanism to ban the sale of traditional vehicles.
Indonesia Plans to Develop Downstream Kratom Industry
The Minister of Cooperatives and Small and Medium Enterprises (MenkopUKM) encourages the downstream development of various kratom products, which has huge potential, with profits of up to IDR 90 million per kilogram (Kg). In a cabinet meeting, kratom was designated as a herbal medicine. It has product potential not only for the food and beverage or catering industry but also for the pharmaceutical and health sectors. It would be a shame to only sell raw materials. The price of extract is currently up to USD 6,000 per kg, equivalent to IDR 90 million. Furthermore, he stated that the technology for downstream production equipment is relatively cheap and easy to obtain.
UOB Indonesia 2025 Economic Outlook Forum
Indonesia has become one of the world's major economies and the largest economy in ASEAN, which has brought optimism that the "Golden Indonesia 2045" dream can be realized. In addition, Indonesia successfully conducted democratic elections and maintained political stability at the beginning of this year. After the new government election, economic policy has become the focus of the new leadership, aiming to achieve higher, sustainable, and quality growth for Indonesia. Through expansionary policies, especially fiscal policy, it is believed that Indonesia can achieve higher growth momentum than the current 5%-6% range. In recent years, structural transformation areas such as downstream commodity processing, capital transfer, and openness to investment projects have yielded results. This is concrete evidence that Indonesia continues to move forward pragmatically towards better social prosperity.
Reasons Why Indonesian Customs Opens and Inspects Travelers' Luggage
Officials from the Directorate General of Customs and Excise have frequently inspected the luggage of arriving international travelers, with several cases quickly going viral and becoming the focus of public attention. The Director of User Communication and Guidance at the Customs and Excise Office explained that the task of customs is to enforce regulations delegated by other ministries/agencies. For example, regarding regulations on luggage from abroad, travelers' suitcases must be inspected. Why do travelers have to open their luggage? This is regulated by Minister of Trade Regulation No. 36, which stipulates that individuals returning from abroad can only bring up to two pairs of new shoes (e.g., footwear). He gave an example: a person just returned from Europe and was found carrying certain items regulated by the rules. In such cases, customs needs to inspect the contents of the luggage to ensure the quantity of items brought does not violate regulations.
Experts Urge Indonesian Government to Reassess Jakarta-Surabaya High-Speed Rail
The Director of Public Policy at the Center for Economic and Legal Studies (Celios) believes that the government needs to review the plan to extend the Jakarta-Bandung high-speed rail project to Surabaya in East Java. He argues that the Jakarta-Bandung high-speed rail project requires reflection, as it has encountered numerous problems from planning and construction to current operations. This should serve as a caution for the next government when considering whether to actually build the Jakarta-Surabaya high-speed rail, given the many issues already present in the Jakarta-Bandung line. A researcher at Celios stated that the Jakarta-Bandung high-speed rail project has deviated from its initial development plan.
Indonesia Lifts Decades-Long Sea Sand Export Ban
President Joko Widodo has officially lifted the restrictions on sea sand exports, despite the ban having been in place for 20 years. The sea sand export policy follows the revision of two new regulations issued by the Minister of Trade, serving as the implementation of Government Regulation (PP) No. 26 of 2023 on Marine Sediment Management, and subsequent amendments proposed by the Ministry of Marine Affairs and Fisheries (KKP). These two regulations are the Minister of Trade Regulation No. 20 of 2024 concerning the Second Amendment to Minister of Trade Regulation No. 22 of 2023 on Prohibited Export Goods, and Minister of Trade Regulation No. 21 of 2024 concerning the Second Amendment to the Minister of Trade Regulation on Prohibited Export Goods.
BYD Rises to Sixth Place Among Indonesia's Best-Selling Car Brands
In August 2024, the ranking of the top 10 best-selling four-wheeled vehicle brands in Indonesia changed, with BYD, which had only started selling a few months earlier, ranking sixth. BYD only sells electric vehicles in Indonesia. According to wholesale data from the Indonesian Automotive Industry Association (Gaikindo), its sales reached 2,940 units, the highest sales figure since Gaikindo began recording BYD's sales in June. Previously in July, BYD ranked ninth among the best-selling brands. However, in August, the Chinese brand climbed to sixth place, replacing regular brands such as Hino, Fuso, Isuzu, and Wuling.