Industries

As part of President Joko “Jokowi” Widodo’s working visit in Central Java province, he inspected construction progress of the Batang Integrated Industrial Park (Batang KIT) in Batang Regency, Central Java province last month. Jokowi mentioned that the construction of all the factories has begun after Batang KIT started the development two years ago. 

Three years ago, President Joko ‘Jokowi’ Widodo inaugurated development of Tanjung Kelayang special economic zone (SEZ) for tourism industry in Belitung Island. Minister of tourism and creative economy Sandiaga Uno has visited the SEZ several times since, but progress might be slower because of the Covid-19 pandemic.

Indonesia welcomed 212,332 visits of foreign tourist in May, skyrocketed by 1,382% year-on-year.  The visit increased 91,19% compared to April (111,057 visits). Thanks to the G20 activities, the preparation of E-Prix, the government policies regarding the expansion of Visa on Arrival (VoA) and the opening of an international airport. The government expects to further boost tourist visits with the development of special economic zone (SEZ) in various areas. What’s their status?

We anticipate more foreign investors entering the toll road business in the coming years. Following acquisition of some toll road assets by HKSE-listed Road King Infrastructure Ltd and First Pacific Ltd (through MPIC, the Philippines), other investors are looking into the projects being offered by both Waskita Karya (WSKT) and Hutama Karya (PTHK).

The Indonesia government has already increased the excise tariff for e-cigarette with a minimum increase of 17.5% starting January 1, 2022. The official increase in excise rates was marked by the issuance of Minister of Finance Regulation (PMK) Number 193/PMK.010 of 2021 concerning Excise Tariffs for Tobacco Products in the Form of E – Cigarettes and Other Tobacco Processing Products. The rules were set on December 17, 2021 by the Minister of Finance Sri Mulyani Indrawati and promulgated on December 20, 2021.

Last Saturday we went to Situ Gunung tourism park, Sukabumi Regency, West Java, where the longest suspension bridge in Indonesia is located. Started out 5AM, we took four hours to arrive. Leaving Situ Gunung 2PM, even worse, six hours to arrive in Jakarta. Distance? 111 KM only! 

Agate International is a video game development company that was founded on April 1, 2009 by 18 people in Bandung, West Java province when they made a game for Microsoft’s Dream Build Play competition. 

The gaming industry has become a potential industry and has even become one of the world’s official sports known as e-sport. We wrote about the growth potential for the gaming industry two years ago (http://yosefardi.com/2019/04/a-gaming-potential ). By far, Indonesia is the largest game market in Southeast Asia and is ranked 16th in the world. People’s spending on games reached US$2 billion per year.

The Toll Road Authority (BPJT) at ministry of public works and housing is ready to offer eight new toll road projects to investors, including foreign investments. BPJT recorded Rp9.9 trillion of foreign direct investment (FDI) in toll roads last year, and expected to double to Rp20 trillion this year. 

We’ve seen faster economic growth of areas outside Java in the past few years, particularly related to mineral processing. Provinces like Central Sulawesi, Southeast Sulawesi, and North Maluku, have also grown as export bases. Still, President Joko “Jokowi” Widodo has briefed Bahlil Lahadalia, Minister for Investment, to also focusing on investment in areas outside Java island, to creating new growth center and new economic area.