The Indonesian economy remains on a path of recovery in 2021 following the setback caused by the Delta variant of COVID-19 that occurred in the middle of the year. According to the World Bank, the Indonesian economy is estimated to expand by 3.7% in 2021 and is forecasted to accelerate further to 5.2% in 2022. Indra Darmawan, an expert staffer at the Indonesian Invesment Coordinating Board (BKPM) or the Ministry of Investment is optimistic about the economy accelerating in 2022. As quoted by Bisnis Indonesia, Mr. Darmawan said market conditions were still heading towards a normalization phase. This is supported by the country's policy direction throughout 2021, the improvement of healthcare support and increased world confidence towards Indonesia following its appointment as the President of the G20. Mr. Darmawan added that, by the end of 2021, there was an increase in the mobility of people in various sectors, such as the consumption sector, telecommunications, and transportation sector. This is supported by data from a Google report on Indonesian people mobility throughout the COVID-19 pandemic. The report states that there is an increase of 11 percent in mobility trends to parks, retail & recreation places, followed by an increase of 28 percent mobility to groceries, market and pharmacy and an increase of 3 percent in mobility to workplaces and settlements as of December 19. It is notable however that mobility in public transport areas remains at -3 percent. COVID-19 and Omicron Moving towards 2022, the main issue plaguing the country’s - indeed the world’s - economic recovery will continue to be ongoing COVID-19 pandemic, and in particular, the virus’ latest variant known as Omicron. As of January 5, 2022, as many as 254 confirmed cases involving Omicron has been reported in the archipelago. Indonesia has responded by closing its border to 14 countries where Omicron cases had been widely reported, including Nigeria, France, and England, and further extending quarantine period for international travelers from only 3 days to between 7 and 10 days. It may be important to note that Indonesia has been experiencing record low numbers among COVID-19 infection rates in the last quarter. This may be attributed to a possible rise of antibodies among the Indonesian population. COVID-19 Task Force spokesperson Wiku Adisasmito said as much 86.6 percent of the Indonesian population have already developed antibodies to combat COVID-19. Dicky Budiman, an epidemiologist from Griffith University in Australia, warned however that natural antibodies tend to weaken between five to six months after it has developed and that Indonesia is nowhere yet near the “herd immunity” that the global community is looking to achieve. Having said that, the government continues to ramp up its vaccination program, having delivered over 280 million jabs to the public as of the end of 2021. Indonesian President Joko Widodo has further ordered the roll out of booster shots starting January 12, 2022. RCEP Another big topic entering 2022 for Indonesia is the Regional Comprehensive Economic Partnership (RCEP). With 15 member countries that accounts for about a third of the world’s population and a third of the global GDP, it is history’s largest trading bloc and it came into effect on January 1, 2022. For Indonesia, this is a massive opportunity to boost its exports and to expand the country’s role in the global value chain. Indonesia is coming late into this trade deal however as it has yet to ratify the agreement despite Australia, China, Japan, New Zealand and South Korea having already agreed to the deal. The Indonesian government is still looking for parliamentary approval to ratify the agreement, a process that is expected to conclude in the first quarter of 2022. As a result, Indonesia will likely book a trade deficit with members of the RCEP in the early period of its implementation, said Indonesian Coordinating Minister of Economic Affairs Airlangga Hartarto, as quoted by Reuters. He added however that the pact could boost trade surplus to US$979.3 million by 2040, further increasing the country’s GDP growth by 0.07% and raise exports and imports by $5 billion and $4 billion respectively. Industry focus 2022 In accordance with President Joko Widodo's direction, the Indonesian economy in the future will focus on digitizing the economy, sustainable green economy and down streaming commodities. In the digital economy, e-commerce remains the driver of a digitized economy in Indonesia. According to the latest SEA e-Conomy report from Google, Bain and Temasek, online spending in the archipelago will likely double to US$146 billion by 2025. Deals for internet companies in the country in the first half of 2021 have already surpassed the full-year totals of the past four years. Indonesia in particular will become twice as big a market as the entire Southeast Asian region by 2030. As such, improving the Indonesian digital ecosystem, digital literacy, and digitization of MSMEs remains a key focus for the government. In regards to investment in sustainable green economy, Indonesia continues to make efforts to be less dependent on fossil fuel. The Indonesian government has stated that, by 2060, the use of coal and fossil energy will be reduced to around 15%, where until now it is still 85%. According to the Expert Staff of the Minister of Investment Indra Darmawan, as quoted by Bisnis Indonesia, efforts to attract green investment are also in line with Indonesia's commitment to the Paris Agreement and the Change Conference of the Parties (COP26). The issue here however is that large investments are required for the country to move forward with its sustainable green economy plans. In this regard, Indonesia must show its willingness to work together with foreign investors that can provide the necessary technology. In line with this green economy focus, the third aspect relates to the down streaming of natural resources; the latest and most talked about issue being the country’s ambition of being a production hub for electric vehicle battery. The construction of an electric battery factory has also been carried out in the context of developing the ecosystem and to optimize the potential of nickel in the country.
The contents of the Training Modules is attached in the ToR. Project Name: Energy Management Training Material Country: Indonesia Should you be interested in participating in this tender, please submit the proposal at latest by 10 January 2022, at 16.00 p.m. Jakarta Local time. Requirement of the Technical and Financial Proposal: Technical Proposal: Training Material are spread over 19 chapters Training Material must include: Word Documents, Excel Tools, PowerPoint Presentations, Videos, Self-learning Material, Handbook Bidding Company Profile Business License(NIB), Tax Registration Number Reference List Financial Proposal: Financial Proposal with Price sheet form Financial Proposal shall be in IDR All prices/rates quoted must be inclusive all taxes Proposal should be submitted in English and must be sent by email to: hardy.hoffmann@ekonid.id The Contract will be awarded to the bidders offering the most responsive evaluated proposal and whose services are commercially and technically acceptable. Terms of reference (ToR): Tasks to be performed/Training Modules to be developed by the contractor: 1. Energy technical basics Scientific basics Structure of energy systems and typical optimization strategies Measurement and Control (MCR) 2. Project management Development of a project concept Presentation of the project concept Project controlling 3. Economic Calculation Calculation of the application-specific costs Comparative economic evaluation Calculation of payback periods 4. Energy Management / Load Management Establishing an energy management system (for ex. ISO 50001) Basics of internal energy audits Tasks of energy data management Structure of an energy data management system Acquisition and structuring of consumption data and costs Consumption and cost evaluations Comparison of indicators Process management system Reduce load peaks Software based energy controlling 5. Energy and Emissions Trading Energy-related laws and regulations Energy purchasing, energy trading Emissions trading Contracting 6. Building Energy Requirements / Energy Efficient Buildings Construction physical basics Construct/acquisition of the building envelope Building energy certification Energy-conscious building and renovation 7. Heating Technology System components Target performance analysis Optimization (furnace and boiler, distribution, control, power consumption) Geothermal energy 8. Process Heat, Steam, Heat Recovery System analysis Process optimization Operating mode Heat recovery 9. Cogeneration of Heat and Power Basic concepts and variants of CHP Investments Peripheral systems Sizing of CHP plants Cogeneration unit 10. Ventilation and Air Condition Basic physical laws System components Analysis Optimization Invest measures 11. Refrigeration Technology Basic elements and function of refrigeration systems Analysis Optimization 12. Electrical engineering, electrical drives Basic knowledge electrical applications Transformer losses and motor losses Electronic speed regulation Selection of efficient electric motors System optimization 13. Lighting Photometric parameters, lighting systems Dimensioning of lighting system Operating time optimization Highly efficient lighting system 14. Compressed Air Compressors, distribution, compressed air consumers, plant control Analysis (power consumption) Optimization (pressure level, control, leakeage) 15. Solar Technology Components and operating principle of solar thermal systems Application of solar thermal plants (water, heating, drying) Components and functions of PV systems Applications of PV-systems 16. Energy from Biomass Wood-fired plants (components, functions, systems) Biogas plants (components, functions, systems) 17. Green IT Data centers and sever systems Data center cooling Virtualization and consolidation Energy efficiency at the office Change of user behavior H. Agus Salim No. 115 | Jakarta 10310 | P.O. Box 3151 | Jakarta 10031, Indonesia Tel. +62-21 5098 5800 | Fax. +62-21 3157088, 3155276 | E-mail: Info@ekonid.id | www.ekonid.com
The training and education sector in Indonesia is a key aspects of Indonesia’s economic growth. Within its goal of becoming an industrial nation by adopting the best practices of Industry 4.0 (also known as “Making Indonesia 4.0), the government of Indonesia recognizes the need to upskill its human resources. This path was put into regulation under Minister of Industry Decree No. 1009/2021, which envisions the presence of an international level vocational education sector in Indonesia. In supporting this initiative, EKONID organized and conducted a Training and Education Including Learning Equipment Delegation. Held from November 22 to 26, 2021, the event was done in partnership with German education and training association and trade fair organizer Didacta, the iniative iMove and business consultancy econAN international with the support of the German Federal Ministry of Economic Affairs and Energy (BMWi). The event comprised of one day of seminar on November 23, followed by a series of follow up B2B meetings held in the days after. Moderated by Mr. Maulandiki Dani, Sr. Executive at EKONID’s Training and Education Department, the event was opened by Thomas Graff, Deputy Chief of Mission at the German Embassy to Indonesia, who welcomed the participants of the seminar and reiterated the importance of investing in training and education in Indonesia. His remarks were followed by Mrs. Martina Kollberg, a representative from the BMWi. Mrs. Kollberg said the need for skilled workers is a global issue and she expressed her institutions’ support for EKONID in implementing the German Standard Dual Educational program in Indonesia. Finally, Market Research and Development Advisor at EKONID Mr. Stephan Blocks concluded the opening remarks by expressing his hope that the seminar would go some ways to address the prevailing shortage of skilled workers and assist Indonesia in adopting industry 4.0. After the opening remarks, as many as 11 companies and institutions presented their programs and solutions in improving Indonesia’s training and education sector. These solutions involve the sub-sectors of digital learning, training solutions for specific industries such as shipping and automotive, as well as learning equipment for schools and universities. More than 45 B2B meetings were held in the following days after the seminar. According to data compiled by EKONID, interest in Indonesia for digital learning solutions were practically prevalent. This is perhaps due to the uncertainties posed by the COVID-19 pandemic as well as the rapid expansion of Indonesia’s digital economy. Overall, the event was a success with a clear match established between the participating German and Indonesian companies. In closing, EKONID would again like to thank the Didacta, iMove, econAN international and the BMWi for their support in this delegation, as well as the participating companies who joined the event.
Globally, the development of EV marked a significant shift on the policy side of the Indonesian transportation sector. Bearing in mind the country’s nickel reserves, Indonesia is strategically positioned to become a major player in the global EV supply chain. However, Indonesia must invest in technology, talent resources, renewable energy and infrastructure to be part of the EV future of the region. For context, the largest archipelago in the world owns about one-quarter of the world’s nickel reserves. Nickel is a key material in the production of batteries. As of 2020, total global nickel reserves were estimated to be around 94 million metric tons. Of that total, Indonesia has 21 million metric tons, followed by Australia with 20 million metric tons. According to Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, in the next five to ten years, Indonesia needs up to US$35 billion in investment to build up its EV ecosystem and take a key position in the global EV supply chain. In this regard, the Indonesian government has continually issued policies to speed up the development of its EV sector. On September 2020, the government officially annnounced its Electric Vehicle (EV) roadmap, which was published as part of Minister of Industry Regulation No. 27/2020, the roadmap lays out the country’s ambition to become a major player in the global EV market by 2030 with a planned local production capacity of more than 600 thousand units of four-wheeled EV and 2.45 million units of two-wheeled EV annually. Ever since, numerous policies have been issued to further boost the EV sector, such as the Ministry of Energy and Mineral Resources (MoEMR) issued MoEMR Regulation No. 13/2020, as well as the recently issued Positive Investment List (PIL). Under PIL, companies that participate in the development of Indonesia’s sector are eligible to benefits that ranges from ease of attaining business licenses to leveraging various tax incentives, such as 0% tariff on luxury vehicle tax for vehicles with zero emission technology as stipulated in Government Regulation No. 47/2021. One company that looks set to be enjoying the benefit of PIL is South Korea-based LG which, at the end of 2020, has reportedly committed towards investing of $9.8 billion towards building an EV battery cell industry integrated with mining, smelting, refining, as well as the precursor and cathode industry. Another example of Indonesia’s seriousness in developing the EV sector is the agreement between four state-owned enterprises formed a holding company of the Indonesia Battery Corporation (IBC) in March 2021. IBC plays a strategic role in managing the BEV battery industry value-chain ecosystem from upstream to downstream. With an investment value of $17 billion until 2030, IBC aims to have battery production of around 140 Giga-Watt-hour (GWh) of which 50 GWh will be exported and 90 GWh will be used locally to produce Electric Vehicles. The latest foray from IBC in developing the country’s EV sector is its plan to acquire German automotive manufacturer StreetScooter. The acquisition plan is aimed towards developing a business portfolio, the transfering of knowledge, as well as having strategic partners who have competence in EV development. Additionally, the acquisition is expected to open access for Indonesia to the Europe and American market, allowing Indonesia to become a player in the entire value-added EV supply chain. The Indonesian EV Market Interest According to Gaikindo's report on EV sales in Indonesia in 2019-2021, only 705 total sales were recorded in 2019, with hybrid sales recorded at 685 units and PHEV (Plug-in Hybrid Electric Vehicle) sales at 20. As of June 2021, the number of electric vehicle sales in Indonesia totaled 1,900 units. This total includes 1,378 (72.5%) hybrid models, 34 (1.8%) PHEV units, and 488 (25.7%) BEV units. When viewed from the total sales of cars in Indonesia in the first semester of 2021, the interest in the electric vehicle market is at 0.5% of total cars sold. These figures shows that the Indonesian EV sector is still in its infancy. However, it also shows that market interest has grown significantly. Considering the country’s rapid pace of urbanization and the significant share of youths in the country’s demographic, there is no question that interest in EV will only rise as the Indonesian society moves towards a more sustainable lifestyle. The road is still long for the country in developing its EV ecosystem. For instance, only 219 units charging stations for EVs have been built in 185 locations across Indonesia by November 2021. In comparison, there are over 5,500 official conventional fuel station across the archipelago as of the end of 2020. However, considering the market potential offered by the fourth largest country in the world in terms of population, dismissing the EV sector in Indonesia would be a mistake. Already has Toyota Indonesia announced its plans to build a battery assembly plant for electric cars at the company's facilities located in Karawang, West Java, starting next year. This is in line with the company’s plans to start producing hybrid electric vehicles (HEVs) in the same period. Toyota’s plans is also in line with the prediction of Yannes Martinus Pasaribu, an automotive expert and academic at the Bandung Institute of Technology, who said that the race to capture the Indonesian EV market may start as early as 2022.