Investments in Indonesia might be affected by the Coronavirus Covid-19 outbreak in the short term, but mid-and-long term prospect of investments in manufacturing remains strong. Some companies have embarked new and expansion projects, which will see a stronger manufacturing industry in five years time.

News spread over the weekend that a Japanese man, who had returned from a trip to Indonesia, had tested positive for Covid-19. The Minister of Health, as expected, brushed it off. Minister Terawan told the press that he’d wait for details on the man’s excursion and health condition. “If it’s from the news, there’s been news like that coming from Malaysia, and Korea. But we have to be careful and rely on data,” Minister Terawan insisted.

After nearly three decades without new investments in methanol, Indonesia desperately needs implementation of new projects. There are so many methanol projects announced in the past two decades, but none is materialized. Methanol is key chemical for the production of polyols and formates, which are the building blocks of many consumer goods such as coatings and paints, composite materials, detergents, adhesives, cosmetics and synthetic lubricants.

The Omnibus Law for Job Creation is designed to amend or abolish some articles in laws related to healthcare industry and services, including Law No. 44/2009 about Hospital, Law No. 36/2009 about Healthcare, Law No. 35/2009 about narcotics, and Law No. 18/2012 about food and beverages.

Draft of Omnibus Law on Job Creation is also designed to amend or abolish some articles in the Law No. 36/1999 about telecommunication and Law No. 32/2002 about broadcasting. The Omnibus Law addresses some crucial issues, including capping of telecommunication tariffs, technical standards, transfer of rights, which could pave the way for faster consolidation.

Indonesia reported US$870 million of trade deficit in January 2020, mainly due to US$1.18 billion of deficit in oil and gas. President Joko ‘Jokowi’ Widodo should immediately take bold decisions to boost domestic production of oil and gas amidst growing consumption. While mandatory biodiesel program might cut import of refined products, falling output of crude oil and surplus in natural gas can’t be fully compensated by biodiesel.

Minister Terawan is incensed. Harvard academics believe that Covid-19 could have already spread in Indonesia given statistical probability. It’s a scientific argument that takes into account flights from Wuhan into (regions in) Indonesia. Still, the Indonesian Health Minister is not having it. He finds the argument insulting for Indonesia could simply have been saved by the grace of God.

Three groups are reportedly competing to acquire PT Artajasa Pembayaran Elektronis, which is famous with its ATM Bersama switching network. Valuation of the company, which has also generated revenues from electronic payments, is said substantially higher than the aborted initial public offering (IPO) two years ago.

Indonesia is a fast-growing market for data center with estimated annual growth of more than 21%. The government’s policy requiring the store of customer data in domestic data center and the strong demand from operators providing content services have led to some major investments in the business.