STRATEGIC ASSESSMENT-Jakarta. Finance Minister Sri Mulyani said the global economy would outperform the forecast for a global recession in 2023. According to Minister Sri, the United States, China, and Europe will not enter a recession, but will experience a soft landing, which means that the economy will not rise or fall sharply.
Indonesia’ inflation rate fell to 0.16 per cent month-on-month last month, compared to 0.34 per cent the country recorded the previous month, mainly contributed by the cost of transportation, prices of food and beverages, and the higher tax on cigarettes, the Statistics Indonesia (BPS) announced today.
On a yearly basis, the inflation rose to 5.47 per cent year-on-year last month, compared to 5.28 per cent year-on-year in January.
“The inflation in the transportation sector was mostly affected by the increase in air transport fares, while the biggest contributors to month-on-month inflation were rice, cigarettes, shallots, and red chilies,” BPS Deputy for Distribution and Service Statistics, Pudji Ismartini told a press conference in Jakarta.
Economic Affairs Coordinating Minister Airlangga Hartarto said the government will soon enforce a new policy regarding export earnings or DHE. “Regarding DHE, the regulations being pushed will be applied to natural resources and their downstream.
All DHE enters the Indonesian financial system with a deposit limit of over $250,000,” Airlangga said. He said the amount saved will be 30 percent of the DHE receipts. Under this policy, he hoped that the results of natural resources will not only be exported but can be enjoyed domestically.
Airlangga also ensured that this regulation did not conflict with international regulations. He claimed that this new policy plan is supported by stakeholders, including the Finance Ministry and Bank Indonesia.
State-Owned Enterprises Minister Erick Thohir in CNBC Indonesia’s 2023 Economic Outlook program on Tuesday addressed the ban on bauxite. Erick said Indonesia is currently one of the world’s centers of economic growth due to its abundant natural resources, which includes bauxite, and strategic location. Erick went on to say that 90 percent of Indonesia’s bauxite was exported to China, adding that China is the world’s leading producer of heat-absorbing glass.
The Indonesian government was invited business actors to take advantage of the Just Energy Transition Partnership (JETP) funding and economic initiatives established with partner countries.
Economic Affairs Coordinating Minister Airlangga Hartarto, during CNBC Indonesia’s Economic Outlook 2023 program expressed hope that a number of funding schemes secured by the government will be realized to support future domestic transition efforts.
“CEOs must seize the opportunity to utilize JETP so that the $20 billion funding can be realized,” Airlangga said. Airlangga went on to say that businesses must be serious about seizing funding opportunities from the Partnership for Global Infrastructure and Investment (PGII), which will invest $600 billion over the next five years.
ASEAN will more than double its natural gas demand to 350 billion cubic meters (bcm) by 2050 as the region shifts away from coal-fired power generation, according to the Gas Exporting Countries Forum or GECF.
“Natural gas demand in ASEAN is expected to rise to 350 bcm over the next three decades,” GECF secretary-general Mohammed Hammel said in a forum in Jakarta on Tuesday. “The region’s share of natural gas in its energy mix is projected to consistently grow to 24 percent by 2050,” Hammel said.
According to the GECF, ASEAN to this day is still heavily reliant on coal. The combustible black rock represented 24 percent of the region’s energy mix in 2021, but will likely drop to 13 percent in 2050 as the share of cleaner energies grows.
