The closure of Hung-A Tire
Tire is probably one of the most competitive industries in Indonesia. Almost all big names in the world of tire have local manufacturing presence. It was for a long period a three-way competition between Goodyear, Bridgestone, and Gajah Tunggal (using Yokohama Tire technology).
External trade in 2023 & outlook
So, Indonesia booked trade surplus of US$36.9 billion last year, dropped by 32% from 2022 due to 11.3% fall in export, while import declined by 6.55% only. Oil and gas sector recorded trade deficit of US$19.9 billion, dropped from US$24.42 billion thanks to substantial decline in import, while export was relatively stagnant.
EV: Point of no return
Some talk about slowdown of electric vehicle (EV) sales and downfall of EV startups. Others, however, believe correction in sales will be temporary, including early lifting of tax incentives in Germany recently. Falling raw material costs like lithium and nickel will likely cut EV battery costs significantly to boost sales instead.
Safety Concern on Nickel Smelter Projects
First of all, we can’t blame it all to the Chinese for series of accidents in nickel smelters and stainless steel factories, being the most recent killing 21 workers. Indonesian government and local partners of Chinese companies should be held accountable for poor planning and supervision of the projects.
Accident at Tsingshan Steel
An accident (explosion) at PT Indonesia Tsingshan Stainless Steel (ITSS), which killed 18 workers (including eight Chinese), is by far the worst in the sector. Some use this as an opportunity to revisiting ESG practices of Chinese investments in Indonesia, particularly in nickel-centered industrial areas of Morowali (Central Sulawesi), Konawe (Southeast Sulawesi), Obi Island (North Maluku), and Weda Bay (North Maluku).
SVO & Marine Transportation
About 15 years ago, Forest Gregg, a designer for Frybid (vegetable oil conversion company), published a book titled ‘Powering Your Vehicle with Straight Vegetable Oil (SVO)’, highlighting the benefits of the product: cheap, carbon-neutral, uses a waste product, and does not depend upon centralized corporate infrastructure.
Online travel apps
Indonesian online travel app Pegipegi announced to stop its services as of December 11 after surviving almost 12 years in Indonesia. The company, however, did not disclose the reasons for the closure of its services.
More SEZs, but…
Morowali, Weda Bay, and Obi Island have developed themselves as new industrial areas even though they were not initially classified as special economic zones (SEZs). Thanks to nickel, these areas have become new export bases. The same applied to new economic centers in bauxite-rich provinces.
More funds into aquatech startups
Indonesia’s tech startups are reeling in big money in seafood farming since the country has a huge potential for seafood farming. An aquatech startup, Jala, has recently raised US$13.1 million in a series A round led by Intudo Ventures with the participation from Sinar Mas Digital Ventures as well as existing investors Mirova and Meloy Fund.
SGA Mempawah so far
After more than one decade of waiting, smelter grade alumina (SGA) in Mempawah, West Kalimantan province is finally moving in the right direction to completion. This will become the third SGA for Indonesia, which has banned export of bauxite ores this year.