Indonesia Pavilion entices visitors to experience Land of Diversity by Fardah

Jakarta, Nov 24, 2021 (Antara) The Indonesia Pavilion at Expo 2020 Dubai has whetted the curiosity of thousands of visitors about the Southeast Asian country, prompting them to learn more about the archipelago, including its culture, arts, culinary products, and investment opportunities.

The Trade Ministry has set a target of attracting at least 10 percent of visitors at the international expo, which is being held in the United Arab Emirates (UAE), and is hoping to receive around 25 million people from October 1, 2021 until March 31, 2022.

The Indonesia Pavilion is among the most popular at the international exhibition, with the number of visitors to the pavilion reaching the 200 thousand-mark on November 2, 2021, according to Trade Minister Muhammad Lutfi.

Children, in particular, are coming to the pavilion to see exotic animal species such as the komodo dragons and rhinoceros projected on the screen at the pavilion's Today Zone, Lutfi noted.

Children are also keen to see Indonesian kids dressed in traditional attire and reciting an oath to protect the Earth in several languages, such as Arabic, Indonesian, English, Chinese, French, Spanish, Russian, German, Hindi, Italian, Japanese, and Korean, he said.

"Visitors to the Indonesia Pavilion at Expo 2020 Dubai are offered to catch a glimpse of Indonesia by experiencing and witnessing its civilization, development, and opportunities. This is important, as we are aiming to showcase Indonesia's important role in global development in the past, present, and the future," Lutfi remarked at the pavilion on November 3, a day prior to the inauguration of the Indonesia National Day by President Joko Widodo in Dubai.

INDONESIA TO FOCUS ON ECONOMIC RECOVERY DURING G20 PRESIDENCY by Fardah

 

Jakarta, 22/9/2021(ANTARA) - Indonesia will assume the Presidency of G20 in late 2021 for the first time since the forum was established in 1999. Indonesia was invited to join the forum in 2008.

Italy, the current G20 president, will hand over the presidency to Indonesia at the Rome Summit, which is scheduled on October 30-31, 2021.

Indonesia was elected to the G20 Presidency for 2022 during the G20 Summit in Riyadh, Saudi Arabia in November 2020.

It will hold the G20 Presidency, themed Recover Together, Recover Stronger to reflect the spirit of collective recovery, from December 1, 2021 till November 2022.

The Group of 20 or G20 is an international forum that brings together the worlds major economies. Its members account for more than 80 percent of global GDP (gross domestic product), 75 percent of global trade, and 60 percent of the population of the planet.

The G20 members comprise Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, the United Kingdom, the United States, and the European Union. Spain is also invited as a permanent guest.

In fact, Indonesia, the worlds fourth most populous nation, is the only ASEAN (Association of the Southeast Asian Nations) state that was invited to join as a G20 member.

To ensure the smooth and successful implementation of the G20 events that will be hosted by Indonesia next year, President Joko Widodo has issued decree No. 12 of 2021 on the National Organizing Committee (OC) of the Indonesian G20 Presidency.

The OC members include Coordinating Minister for Economic Affairs, Airlangga Hartarto, as chairman I of Sherpa Track; Minister of Foreign Affairs, Retno L. P. Marsudi, as chairman II of Sherpa Track; Minister of Finance, Sri Mulyani Indrawati, as chairman I of Finance Track; the Governor of Bank Indonesia as chairman II of Finance Track; Coordinating Minister for Politics, Law, and Security, Mahfud MD, as chairman of events; and Minister of Communication and Informatics, Johnny G. Plate, as chairman of communication and media for the G20 Summit.

Indonesia will have seven priority agendas for the finance track for Indonesia's G20 Presidency in 2022, according to Minister Indrawati.

 

 

MSME digitization necessary to support Indonesia's economic recovery by Fardah

 Jakarta, June 3, 2021 (ANTARA) - Indonesia’s 64.2 million micro, small, and medium scale enterprises (MSMEs) have contributed Rp8,573.89 trillion, or 61.07 percent, to its GDP (gross domestic product) as of March, 2021, as per data from the Cooperatives and Small Medium Enterprises (SMEs) Ministry.

MSMEs absorb 97 percent of the national work force, account for 60.4 percent of the total investment, and contribute 14.37 percent to export growth, data has shown.

Given their contribution, Coordinating Minister for Economic Affairs, Airlangga Hartarto, has called MSMEs critical pillars of the Indonesian economy.

National Development Planning Minister/National Development Planning Agency (Bappenas) head Suharso Monoarfa, however, wants MSMEs to play a broader role in boosting Indonesia’s economy.

"Some 99 percent of the businesses in Indonesia are dominated by MSMEs, which absorb 97 percent of the total number of workers, but MSMEs only contribute 57 percent to the national GDP," Monoarfa stated on May 26, 2021.

Despite various MSME development programs being conducted by ministries and state institutions, the results have yet to be optimal, he observed.

The minister drew attention to an evaluation of MSME programs from January, 2020 that pointed to moral hazards existing in the capital grants offered by ministries and state institutions to MSMEs.

"This is since it (a grant) does not have to be returned and utilized for non-business related purposes," he explained.

The National Development Planning Ministry/Bappenas, the Ministry of Finance, the SME and Cooperatives Ministry, and other concerned ministries and institutions will evaluate MSME development programs as a basis for budget allocation in 2022, he said.

He suggested that the role of the SME and Cooperatives Ministry, as the coordinator of the MSME development programs, be bolstered. Companies partnering with MSMEs should receive incentives, he added.

 Indeed, a great number of MSMEs in Indonesia are still facing several challenges.

NEW INVESTMENT MINISTRY EXPECTED TO DRIVE ECONOMIC TRANSFORMATION BY Fardah

Jakarta, 26/5, 2021 (ANTARA) - The Joko Widodo administration's decision to upgrade the Investment Coordinating Board (BKPM) into the Ministry of Investment has been welcomed by the business community as it is expected to create positive sentiment among domestic as well as foreign investors.

The new ministry, announced by President Widodo on April 28, 2021, has been created to improve the ease of doing business in Indonesia as it struggles to recover from the COVID-19 pandemic. BKPM chief Bahlil Lahadalia has been appointed as the Investment Minister.

Indonesia has been working to realize economic growth of around five percent this year through direct investment, among other things.

The newly formed Investment Ministry is expected to attract investment into the country and create jobs, which are key to driving economic growth in 2021, according to Widodo.

"The key to growth, our economic growth, is investment. Because it is impossible for us to drastically increase our state budget. This means that the key is in investment and creating as many job opportunities as possible, the President said recently.

He then asked that trade policies be formulated to invite investment inflows. Such policies must also help recover economic sectors that contracted last year due to the impact of the COVID-19 pandemic, he added.

Investment Minister Bahlil Lahadalia has formulated a strategy to increase the investment target up to Rp900 trillion for 2021 and Rp5 thousand trillion in 2024.

The new minister has a five-point plan to increase added value with downstream orientation to drive Indonesias economic transformation.

"The first one is investment in the health sector. We know that almost all of our medical devices and medicinal raw materials are imported," he said.

GOVERNMENT POSITIVE ECONOMIC RECOVERY ON HORIZON by Fardah

 

Jakarta, 23/5, 2021 (ANTARA) - The Indonesian government is optimistic the economy will grow positively this year with indications of an improvement emerging amid the pandemic and containment measures, which have plunged the global economy into a deep contraction.

After Indonesia recorded its first coronavirus cases in March, 2020, economic growth spiraled to minus 5.32 percent in the second quarter to reach minus 3.49 percent in the third quarter and minus 2.19 percent in the fourth quarter of last year. Overall, the Indonesian economy shrunk 2.07 percent year-on-year (yoy) in 2020, a figure that is considered better than several other countries.

In the first quarter of this year, the country saw a significant improvement, with the economy recording a smaller contraction of 0.74 percent as the Retail Sales Index, Consumer Confidence Index, and manufacturing Purchasing Managers Index strengthened. A rise in car sales, electricity consumption, and cement production also provided a positive impetus to Indonesia's economic recovery.

The government is optimistic that the national economy would continue to improve and grow at a high rate of 4.5 percent-5.3 percent by the end of 2021.

However, to achieve this figure, the economy needs to grow positively in the range of 6.9 percent-7.8 percent in the second quarter of 2021.

The government believes that positive economic growth can be attained through state budget stimulus programs, acceleration of the vaccination program, and consistent implementation of the health protocols.

Furthermore, the government plans to encourage the strengthening of local industries in various key strategic fields, such as palm oil, chemicals, aluminum, electronics, and footwear, to help boost the economy.

"Our economic growth rate indicates a positive trend. It is expected to reach seven percent (in the 2021 second quarter)," Coordinating Minister for Economic Affairs, Airlangga Hartarto, observed on May 15, 2021.

As of March, 2021, the realization of foreign direct investment reached 54.6 percent, while the consumer confidence index among people with expenses below Rp5 million was recorded at 90.1, inching towards the normal zone of 100, the minister stated.

A positive trend was also evident in the growth of Indonesia's exports and imports, gross fixed capital formation (GFCF), and government spending, Hartarto pointed out.

A surge in the prices of commodities, such as palm oil, rubber, nickel, copper, and coal also bolstered the government's efforts to revive the economy. The rising prices of those commodities helped improve economic conditions in several regions during the first quarter of 2021.

The economic improvement was also supported by the realization of the national economic recovery budget (PEN), which, as of May 11, 2021, touched Rp172.35 trillion, an increase of Rp49.01 trillion compared to the first quarter of 2021, or late March this year, Hartarto told the press following a limited ministerial cabinet meeting on May 17, 2021.

The PEN realization accounted for 24 percent of the total state budget of Rp699.43 trillion allocated for the program this year.

INDONESIA'S HALAL INDUSTRY GAINS MOMENTUM AMID PANDEMIC by Fardah

 

Jakarta, 1/5/2021 (ANTARA) - Indonesia, the world's most populous Muslim-majority nation, is focusing on developing its halal industry to meet domestic and global demand in light of trends that indicate sharia businesses grew amid the economic crises wrought by the pandemic.

The halal industry has been able to record positive performance despite the pressure on economies around the world owing to the COVID-19 pandemic. Prior to the pandemic, in 2019, the industry had recorded a growth of 3.2 percent higher than global economic growth of 2.3 percent.

"Globally, spending on halal products in 2019 before COVID-19 occurred, especially on food, pharmaceuticals, cosmetics, fashion, and travel products had reached US$2.02 trillion," Finance Minister Sri Mulyani Indrawati informed on the sidelines of the online launch of a halal industry collaboration program on April 14, 2021.

Indonesia is the world's biggest market for halal products, particularly in the food, tourism, pharmaceuticals, and cosmetics sectors, she pointed out.

"This potential must inspire business operators to work on the halal industry," she said.

Indonesia's sharia economy is focusing on developing the halal industry, sharia finance, sharia social finance, and sharia entrepreneurship.

The government's support has been apparent from the several policies aimed at developing the halal industry, including the establishment of a Special Economic Zone (KEK) for the industry.

In addition, the collaboration between the National Committee for Sharia Economics and Finance (KNEKS) and companies such as PT. Unilever Indonesia is expected to encourage the halal industry in the country.

Supply chain cooperation is a necessity at this time for strengthening the ecosystem and creating a comprehensive supply chain cooperation, Indrawati said.

Hence, it is crucial to develop a cross-sector collaboration program to support the development of sharia economy and finance in Indonesia, which is targeting to become the world's sharia economy hub, she added.

"This (the Muslim Center of Excellence program) is an initiative from a very positive industry in order to strengthen the ecosystem of the halal industry in Indonesia and strengthen the capabilities and capacities of the industry, including MSMEs, in producing goods meeting the preferences of Muslim groups," she said.

INDONESIA INCORPORATES ISLAMIC VALUES IN ECONOMIC RECOVERY POLICIES by Fardah

 Jakarta, 30/4/2021 (ANTARA) - Having the world's largest Muslim population, it's very natural for Indonesia to start looking at Islamic or sharia economic principles to strengthen its economic resilience and untap potential of the sharia economy.

The sharia economy is believed to enable the nation implement the recovery of its economy battered by the COVID-pademic, toward a just, sustainable, and green economy.

To develop the sharia economy at its full potential, the government in 2020, issued a presidential decree on the National Committee for Sharia Economy and Finance (KNEKS).

The Indonesian government, in fact, has mobilized innovative financing instruments, such as the issuance of Green Sukuk since 2018 to fund climate change action and support targets of the Sustainable Development Goals (SDGs).

The government has also set up the Environmental Fund Public Service Agency (BPDLH) to manage environmental financial resources and facilitate the development of trade and carbon pricing, according to Finance Minister Sri Mulyani Indrawati.

Indonesia is currently preparing a regulation on carbon pricing to serve as a guideline in formulating domestic policies and an institutional framework for setting carbon prices.

The minister remarked that transitioning to the green economy will have implications for financial stability and inclusion, so it is necessary to prioritize green financing instruments in the financial system.

Moreover, financial institutions should implement strong risk management supported by comprehensive information to assess climate-related risks.

Indonesia keen to harness untapped sharia economic potential by Fardah

 Jakarta, Feb 23, 2021 (ANTARA) - Indonesia, with the world's largest Muslim population, constituting almost 90 percent of its 271 million people, has yet to unlock the vast, untapped potential of the sharia economy.

It is grim reality that Indonesia continues to trail behind other countries, both Muslim majority and non-Muslim majority nations, in terms of sharia economic development.

Malaysia led the Global Islamic Economy Indicator in 2019, with a score of 111 points, while Indonesia ranked fifth, with 49 points.

The ranking of 15 countries, with a Muslim-majority populace, was based on the indicators of Islamic finance, halal food, Muslim-friendly travel, the modest fashion industry, media and recreation, and pharmaceuticals and cosmetics.

Apart from that, the country's Islamic economic literacy index remains low, notably at around 16.2 percent. In 2019, Indonesia’s sharia financial literacy rate was recorded at only 8.93 percent, according to data of the Financial Services Authority (OJK).

To promote the country’s sharia economy, President Joko Widodo (Jokowi) had inaugurated the Sharia Economic Brand on January 25, 2021, with the objective of raising public awareness of sharia economic activities.

"I welcome the inauguration of the Sharia Economic Brand. This is very important to increase public awareness as support for sharia economic activities," the head of state remarked at the launch of the National Movement for Cash Waqf and inauguration of the Sharia Economic Brand at the State Palace in Jakarta.

The head of state, concurrently chairman of the National Committee on Sharia Economics and Finance (KNEKS), remarked that the Sharia Economic Brand will unify forces to boost the added value of sharia economy in Indonesia.

Jokowi drew attention to the fact that sharia economic development was not only being conducted by Muslim-majority nations but also by other countries, including Japan, Thailand, Britain, and the United States.

"We must seize this opportunity by pushing for acceleration. We must work toward accelerating development of the national Islamic economy and finance. We must prepare ourselves as the center of the global Islamic economy," he emphasized.

GOVERNMENT UPBEAT ON 2022 ECONOMIC GROWTH

 Jakarta, 12/2/2021 (ANTARA) - There are strong indications the nation is currently in a transitional period and moving toward better economic performance thanks to right policy measures after being battered by the COVID-19 pandemic, according to the Indonesian government.

The government has put precautionary measures in place since the early stages of the coronavirus outbreak and has focused on balancing COVID-19 handling and economic recovery efforts.

Indications of economic improvement have begun to emerge. Indonesias economic growth improved from minus 5.32 percent in the second quarter of 2020 to minus 3.49 percent in the third quarter, and further, to minus 2.19 percent in the fourth quarter of the year.

Indonesia's economy shrank by 2.07 percent year-on-year (yoy) in 2020, a figure that is considered better than several other countries, according to observers.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, is optimistic the Indonesian economy will recover to 1.3 to 1.8 percent growth in the first quarter of 2021. To reach the target, the government is making efforts to boost public consumption.

For instance, it has raised the budget for the National Economic Recovery program to Rp553.09 trillion (US$39.4 billion).

In the plenary cabinet meeting and in other meetings, weve decided the size to be Rp553.09 trillion. It means the government sees that economic recovery in 2021 needs a similar support as seen in 2020, Hartarto told a business forum.

The Indonesian economy is projected to accelerate well in 2022, with this year's transition momentum.

INDONESIA HOPES FOR VACCINE-DRIVEN ECONOMIC TURNAROUND by Fardah

 

Jakarta, 30/1/2021 (ANTARA) - The ongoing COVID-19 pandemic has not only caused severe public health problems, but also crippled the economy of various countries, including Indonesia, owing to strict restrictions on public movement and activities.

The Indonesian economy shrunk 5.32 percent in the second quarter and 3.49 percent in the third quarter of 2020 due to the pandemic.

On January 30, 2021, the country recorded 14,518 new coronavirus infections, 10,242 recoveries, and 210 deaths over a single day, the Task Force for COVID-19 Handling reported. With this, the total tally of cases in the country reached 1,066,313, while total recoveries reached 862,502, and the death toll climbed to 29,728.

Therefore, this year, the government is focusing on pursuing economic recovery and handling COVID-19 transmission at the same time.

The governments economic recovery strategy includes the vaccination program, which has kicked off and will be expedited in stages this year.

Post the arrival of millions of doses of Sinovacs vaccine from China, the Indonesian government has been eagerly carrying out the vaccination program across the nation since January 13, 2021 to reverse the trend in infections.

In the first two months of 2021, the government is expected to complete inoculating targeted healthcare workers across the country.

Immunization is one strategy for driving economic revival, in addition to expansion of credit to small businesses, and increased budget allocation for the economic recovery program, according to Coordinating Minister for Economic Affairs, Airlangga Hartarto.

We are optimistic about (our prospects) in 2021-2022, he said during a webinar of the trustee council of the University of Indonesia (UI) on January 27, 2021.

Indonesia betting on SWF to attract foreign investment by Fardah

 Jakarta, January 29, 2021 (ANTARA) - The Indonesian government is determined to continue infrastructure development across the country despite the prolonged COVID-19 pandemic that has severely impacted the economy.

Since the start of his first term in October, 2014, President Joko Widodo (Jokowi) has prioritized national infrastructure development to strengthen connectivity, economic growth, and national unity.

With the nation facing economic difficulty owing to the pandemic, a gap has emerged between development demand and the availability of funding resources. Hence, the Widodo administration has been exploring ways to attract foreign investment to finance infrastructure development projects, as well as support economic recovery efforts.

According to Widodo, a Sovereign Wealth Fund (SWF) would serve as a breakthrough in these endeavors and help the nation attract funding.

On January 27, 2021, Widodo installed the Finance Minister as chairman and appointed four other members of the Supervisory Board of SWF, termed the Indonesia Investment Authority (INA), based on Presidential Decree Number 6/P of 2021 on the appointment of membership of the Investment Authority Supervisory Board.

Finance Minister Sri Mulyani Indrawati has been appointed as chairman and member of the INA. The other members are Minister of State-owned Enterprises (SOEs / BUMN) Erick Thohir, Darwin Cyril Noerhadi, Yozua Makes, and Haryanto Sahari.

On December 15, 2020, the President had issued three governmental regulations on the establishment of Indonesia’s SWF, as mandated in the country’s first omnibus law, Law No. 11 Year 2020 on Job Creation.

The objective of INA will be to increase and optimize long-term investment to support sustainable development, according to Article 5 of the Law. INA will serve as a legal entity answerable to the President and have special authority to represent the sovereign Indonesian government.

BUSINESS CIRCLE UPBEAT ABOUT COVID-19 VACCINE ENDING UNCERTAINTY by Fardah

 

Jakarta, 14/12/2020 (ANTARA) - The government believes that national economic recovery will principally hinge on the novel coronavirus disease (COVID-19) vaccine becoming available after which distribution among the public and acceleration of treatment of COVID-19 patients will be conducted.

Indonesia's business community has lauded the arrival of 1.2 million doses of Sinovac's COVID-19 vaccine in Jakarta on Dec 6, 2020, from China, as it raises hopes not only for a health solution but also for economic recovery.

Apart from the 1.2 million doses of the vaccine, the government is also working on 1.8 million doses of the vaccine to arrive in early January 2021. The vaccine that arrived has passed the phase III clinical trials in Bandung since August 2020.

In addition to the completed vaccine, there will be bulk raw materials for producing 15 million doses of vaccine in December this year and 30 million doses of vaccine in January 2021 to be further processed by PT Bio Farma Persero.

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan earlier noted that the government will likely commence the first phase of COVID-19 immunization in the third week of December this year.

However, the government is awaiting emergency-use authorization from Indonesia's Food and Drug Monitoring Agency (BPOM) to commence the first phase of the program.

The BPOM is still awaiting results of the Phase 3 clinical trials of Sinovac's COVID-19 vaccine in Brazil and will collate research data from the Phase 3 clinical trials for the Chinese vaccine candidate in Brazil and Indonesia to determine its safety, efficacy, and immunogenicity, according to BPOM head Penny K. Lukito.

Indonesia has established cooperation with WHO and several countries, including China, South Korea, the UK, and the UAE, for supplying COVID-19 vaccines. Besides this, the nation is also developing its indigenous vaccine called Red and White.

The Indonesian Chamber of Commerce and Industry (Kadin) lauded the availability of the Chinese vaccine in Indonesia, as it projected it to boost public confidence and security and dispel current uncertainty.

"Alhamdulillah (thank God), of course, we welcome (the vaccine), because in 2021, the game changers would be first, the (COVID-19) vaccine and second, the job creation law," Kadin Chief Rosan Roeslani stated on Dec 7.

Availability of the COVID-19 vaccine will encourage people to resume their activities and spending, thereby boosting demand, he pointed out.

"We laud the government's fast response, and (arrival of the vaccine) will offer a sense of certainty. Hopefully, it would also boost the health sector and bring about economic recovery," he remarked.

PUBLIC HEALTH EFFORTS, ECONOMIC RECOVERY HINGE ON BUDGET UTILIZATION by Fardah

 

Jakarta, 5/12/2020 (ANTARA) - The coronavirus pandemic has delivered the largest economic shock the world has experienced in decades by forcing governments to impose lockdowns or social distancing rules that have caused widespread economic damage.

Based on data from worldometers.info, as of December 5, 2020, more than 66.3 million people across the globe have been infected with COVID-19 and more than 1.5 million people have succumbed to the virus since its reported emergence in Wuhan, China in December, 2019.

The June 2020 Global Economic Prospects report has predicted a 5.2-percent contraction in global GDP in 2020. Over the long term, deep recessions triggered by the pandemic are expected to leave lasting scars through decline in investment, erosion of human capital through lost work and schooling, and fragmentation of global trade and supply linkages, it stated.

Indonesia has not been spared by the pandemic. The country has recorded a total of 569,707 confirmed COVID-19 cases and 17,589 deaths since reporting its first infections in March, 2020.

The Indonesian economy contracted 5.32 percent in the second quarter and 3.49 percent in the third quarter.

"Our economy contracted 5.32 percent in the second quarter and 3.49 percent in the third quarter. This means it has passed its lowest point and is moving toward a positive trend," President Joko Widodo (Jokowi) said on December 3, 2020.

With economic activities hampered by COVID-19, the government has relied on the State Budget (APBN) to support COVID-19 handling and economic recovery efforts, as well as provide social assistance to those affected economically by the impact of the pandemic.

Earlier, the President emphasized that four areas will be prioritized in the 2021 State Budget (APBN).

PESANTREN EMERGE AS LYNCHPIN OF ECONOMIC EMPOWERMENT by Fardah

 

Jakarta, 22/11/2020 (ANTARA) - Islamic boarding schools, or pesantren, have not only managed to survive in Indonesia since colonial times, but have also assumed a strategic role in national development and economic empowerment, particularly at the grassroots level.

Indonesia has 28,961 pesantren catering to at least 18.5 million students, or santri, and employing about 1.5 million teachers, who are helping shape the future human resources of the nation.

On the occasion of National Santri Day on October 22, 2020, Vice President Maruf Amin urged santris to play an active role in developing the economy.

He said he hoped that pesantren would not only become hubs for producing Muslim clerics, but also centers for economic empowerment.

Amin lauded several community economic programs initiated in cooperation with pesantren, such as the establishment of convenience stores, cooperatives for santri, and the development of a business incubation center for Islamic boarding school students and a mobile apps service.

More collaborations must be done between the Islamic boarding school students and industry players to bring prosperity to the people, he remarked.

Pesantren, as the center of the preaching of Islam, must be made relevant and match the current pace of progress by using digital technology to reach a wider audience, Amin advised.

The government has committed to funding 209,449 Islamic boarding schools and institutions by allocating Rp2.6 trillion ($1.7 billion) in 34 provinces for the 2020-2024 period. The funds are meant to support online learning, operational costs, and healthcare programs for COVID-19 handling in Islamic boarding schools, among other things.

Meanwhile, Finance Minister Sri Mulyani Indrawati recently confirmed the government's allocation of Rp2.6 trillion for pesantren and religious education amid the COVID-19 pandemic through the pesantren economic recovery program.

Indonesia aims to turn into global halal hub by 2024 by Fardah

 Jakarta, Nov 20, 2020 (ANTARA) - The future market potential for halal products is huge as the Muslim population is growing, including in Europe and America, and is projected to cross 2.2 billion by 2030, according to observers.

 

The global halal market has reached US$1,294.5 million in 2020 and is expected to touch US$1,911.3 million by the end of 2026, reflecting a CAGR (compound annual growth rate) of 5.7 percent for the 2021-2026 period, according to Global ‘Halal Market’ 2020 Research Report, released last August.

 

The global halal food market was valued at US$1,140 million in 2018 and is estimated to reach US$1,590 million by the end of 2025, growing at a CAGR of 4.3 percent in the 2019-2025 period.

 

Brazil, Australia, Japan, North America, and China are among the main halal product producers in the world. But, Indonesia, the world's largest Muslim majority country and the fourth most populous nation in the world, is yet to exploit the potential of the halal business.

 

In 2019, Brazil’s halal product exports were valued at US$5.5 billion and Australia's at US$2.4 billion, Indonesian Vice President Ma'ruf Amin said recently, referring to data from the 2019 Global Islamic Economic Report.

 

A professor of Islamic economic law, Amin has set his sights on transforming Indonesia into a global halal product hub by 2024.

 

"We must be able to exploit the potential of the world's halal market by increasing our exports, which currently only account for 3.8 percent of the global halal market," he noted.

 

In 2018, the global demand for halal products stood at US$2.2 trillion, and it is projected to touch US$3.2 trillion by 2024. Amin is hopeful of Indonesia’s chances of emerging as the largest halal producer in the world.

ENDEAVORING FOR A BALANCE BETWEEN COVID-19 HANDLING AND ECONOMIC RECOVERY by Fardah

Jakarta, July 29, 2020 (ANTARA) - President Joko Widodo (Jokowi) opined that handling of the coronavirus disease (COVID-19) pandemic must be conducted concurrently with endeavors to facilitate recovery of the country's economy hard hit by the impacts of the outbreak. 

The economy is bound to bear the brunt when the focus is chiefly on health through the application of restrictions, while on the other hand, prioritizing measures to bring about an economic rebound by relaxing COVID-19 restrictions will further fuel the spread of the coronavirus disease. 

Hence, Jokowi has offered a midpoint strategy through his “brake and gas pedal” analogy at the right time for fine-tuning efforts to strike a delicate balance between handling the COVID-19 pandemic and economic recovery.

"In managing this crisis, the brake and gas pedal should be maneuvered in a way to really strike a balance. We cannot mainly use gas for economic interests but then our health gets neglected in the process. However, we cannot also concentrate fully on health aspects since the economy is collapsing," he pointed out.

To materialize his concept, Jokowi signed Presidential Regulation No. 82 of 2020 on the Committee for COVID-19 Handling and National Economic Recovery on July 20, 2020.

The regulation is a manifestation of the "brake and gas pedal" concept voiced by President Jokowi to balance, coordinate, synergize, and integrate the COVID-19 handling and economic recovery efforts.

"This committee is intended to integrate health and economic policies that are often described by the president as (the vehicles’) gas and brake pedals, and both must be handled in a balanced manner," Minister of State Secretary Pratikno remarked.

Timely budget spending crucial for economic recovery amid COVID-19 by Fardah

Jakarta, July 3, 2020 (ANTARA) - President Joko Widodo (Jokowi) delivered a strong rebuke to ministers and leaders of state institutions over the slow handling of the COVID-19 crisis during a cabinet meeting on June 18 this year.

He ordered his aides to improve ministerial budget spending, noting that expenditure in the health sector has only reached two percent of the budgeted Rp75 trillion.
The President also highlighted the need for promptly disbursing social assistance and ensuring that micro-, small-, and medium-scale businesses receive the necessary economic stimulus.

“The atmosphere in the last three months and in the next three months should be one of crisis. ... I see there are still many of us who [are still acting] as usual. I'm annoyed," he said in a video released on June 28, 2020.

He expressed annoyance at the “lack of sense of crisis” among his ministers, and threatened to dissolve certain institutions or carry out a cabinet reshuffle, if necessary.

Jokowi has been repeatedly reminding ministers to move fast in spending their allocated budgets, including for MSMEs, the health sector, and providing social benefits for the poor, so that jobs can be created and the economy, which has been dealt a severe blow by the COVID-19 pandemic, can recover.  

 "I have ordered all ministries and institutions to spend the existing budget, and I am monitoring it every day," Jokowi said on June 30, 2020.
The President said he has been keeping tabs on the budget disbursals of each ministry and state agency on a daily basis.

The head of state highlighted the need to expedite budget disbursals by ministries to increase money supply and stimulate the economy.

Laid-off workers to benefit from Pre-Employment Card Program by Fardah

Jakarta, April 21, 2020 (ANTARA) - The novel coronavirus (COVID-19) pandemic has triggered massive layoffs globally, including Indonesia, hammering industries, particularly in the tourism sector, and forcing closures of schools, hotels, restaurants, amusement centers, and factories, and people to stay home.
The Indonesian government has projected unemployment in Indonesia to rise by five million in the face of the economic pressure caused by the COVID-19 outbreak.
The forecast aligns with Indonesia's economic growth in its worst-case scenario that is expected to contract, according to Head of the Fiscal Policy Agency (BKF) of the Financial Ministry Febrio Nathan Kacaribu.
In the baseline scenario, the national economic growth would decline to 2.3 percent of the gross domestic product (GDP), and this would result in an additional 2.9 million becoming jobless, he had stated on April 20, 2020.
The government will make all-out efforts to maintain economic stability amid pressure from the COVID-19 pandemic to contain the impact on the nation’s unemployment rate, he remarked.
Earlier, Chief of the Task Force for Acceleration of COVID-19 Response Doni Monardo noted that some 1.6 million workers were laid off and forced to take unpaid leave due to the pandemic.
"Reports from ministers show that 1.6 million workers have been laid off and forced to take unpaid leave, and that pre-employment cards must be issued to them soon," he stated following a limited meeting led by President Joko Widodo at the Merdeka Palace on April 7.

COVID-19 deals crushing blow to MSMEs by Fardah

Jakarta, April 25, 2020 - The novel coronavirus disease (COVID-19) has not just attacked people, but also indirectly battered the Indonesian economy, leaving micro-, small-, and medium-scale enterprises (MSMEs), the country’s economic backbone, struggling for survival.

Prior to the COVID-19 outbreak, MSMEs contributed 60 percent of the gross domestic product (GDP) and employed around 97 percent of Indonesia’s workforce.

Based on the data from the Industry Ministry, a total of 43,016 small- and medium-scale enterprises (SMEs) have been impacted by the COVID-19 pandemic.

Employing at least 149,858 workers, the SMEs are located in various provinces, including South Kalimantan, South Sulawesi, Central Sulawesi, Maluku, West Java, East Java, Lampung, and Banten.

Few MSMEs have been quick to reorient their businesses to meet the demand for equipment, such as face masks and personal protective equipment (PPE), in the fight against COVID-19.

Villagers in Ogan Komering Ilir District (OKI) of South Sumatra Province, for instance, have shifted from weaving mats to producing cloth masks, which are in high demand as the authorities have ordered people to wear masks in wake of the outbreak.

"Since President Joko Widodo mandated the use of masks for anyone who goes (out) or is active outside of the home, the Menang Raya Village community has produced 8,000 pieces of cloth masks,” Suparedy, chief of Menang Raya Village, said recently. 

ECONOMIC STIMULUS, SOCIAL SAFETY GET PRIORITY AS SLOWDOWN LOOMS by Fardah

Jakarta, March 31,  2020 - The novel coronavirus (COVID-19) outbreak, declared by the WHO as a pandemic, has wreaked havoc on the global economy by disrupting supply chains, halting tourism, and triggering layoffs in several countries, including Indonesia.

Many self-employed Indonesians working in the informal sector, such as street vendors and motorcycle taxi drivers, have had to suspend their businesses on account of the virus forcing customers to stay at home.

In addition, hundreds of thousands of workers may face layoffs due to the disruption of production chains. "We are calling this a layoff emergency situation," Said Iqbal, president of the Indonesia Labor Union Confederation (KSPI) said.

On March 20, President Joko Widodo (Jokowi) assured the Indonesian people that the government is ready to face the economic slowdown owing to the COVID-19 crisis.

The Indonesian government has claimed that it had put precautionary measures in place since the early stages of the coronavirus outbreak. The government's response has focused on three aspects -- safety and health; social safety net; and, economic impact.

Jokowi, who is working out of the Bogor Palace and communicating with his ministers via teleconferencing, has echoed the government’s decision to offer a social safety net and economic stimulus to MSMEs affected by the COVID-19 pandemic to help them stay afloat in the current challenging scenario.

The government will prepare an economic stimulus for MSMEs and informal businesses without delay, Jokowi remarked while chairing a limited cabinet meeting via videoconferencing in West Java, on March 30.