Indonesia’s economy grew 5.01% annually in the first quarter of 2022. Consumption and investment picked up following the lifting of various COVID-19 related restrictions beginning late last year. Consumption, which takes up the lion’s share of Indonesia’s GDP, grew 4.3% in the first quarter, up 3.55% from the fourth quarter of 2022. Exports grew on the back of rising commodity prices such as coal, palm oil, and nickel, of which Indonesia is a major supplier. The country posted a US$4.53 billion trade surplus in March of this year compared to $1.57 billion in the same month last year. According to data from the Indonesian Statistics Agency (BPS), the transportation and warehousing sector contributed the most to the growth from the production side at 15.79%, while, on the demand side, export of goods and services contributed the highest at 16.22%. Data from the BPS also showed improvements in the employment rate. As of February 2022, as many as 144.01 million people were absorbed into the workforce, a 4.20 million increase compared to the same month last year. This translates to a 5.83% unemployment rate in February 2022, a 0.43% decline compared to the same month last year. Rising inflation a challenge Whether Indonesia can maintain this steady growth path depends on how it responds to the rising inflation. According to data from BPS, the country’s consumer price index rose to 0.95% (mtm) in April 2022 compared to 0.66% (mtm) of the previous month. This is in parallel to the rise in world food commodity prices, which are reaching their highest levels as the war in Ukraine spread shocks through the markets. The Food and Agricultural Organization’s food and price index averaged 159.3 points in March, up 12.6% from February 2022 and was 33.6% higher than in the same month of last year. In Indonesia, prices are rising across the board, from volatile food, administered prices, to core inflation indicators. On an annual basis, the consumer price index rose 3.47% in April compared to 2.6% in the previous month – the fastest since May 2020. Bank Indonesia has yet to issue any significant signaling of a rate hike at the time of publication, with the latest press release stating that the central bank would remain consistent in maintaining price stability and strengthen policymaking in coordination with the Indonesian government. The Indonesian Central Bank targets inflation at 3.01% in 2022. Commodities remain significantly important to the economy Despite the windfall from the rise in commodity prices, Indonesia remains committed on the path of industrializing the nation by curbing the exports of raw commodities. Since banning the export of unprocessed nickel in January 2021, Indonesia is still planning on banning the exports of raw bauxite starting in 2023, followed by raw tin exports in 2024. Indonesia has the world’s largest nickel reserves and is the second-largest producer of tin, the third-largest producer of coal, and the fifth-largest producer of bauxite. Already the country has shown willingness to impose bans on the exports of some globally crucial raw materials. In January of this year, the government enacted a one-month ban on thermal coal exports. Most recently, the government stopped exports of crude palm oil and palm oil products. Indonesia is the world’s largest supplier of palm oil, accounting for 60% of the global share. Hope rests on the Omnibus Law launched in 2020, which significantly expanded the freedom of foreign investors to invest in the country. Indonesia’s presidency of the G20 this year is another opportunity for the country to discuss with its trading partners on how to ensure that the global economy can recover stronger together.
On 25th May 2022 at 1:00 pm – 3:00 pm (WIB), RWE Technology International GmbH, in partnership with the German-Philippine Chamber of Commerce and Industry, German-Australia Chamber of Industry and Commerce, German-Indonesian Chamber of Industry and Commerce, and Malaysian-German Chamber of Commerce and Industry, will be having a webinar entitled “Growing Green: Decarbonizing the Energy Sector”. The webinar aims to provide talking points on the latest innovations in the decarbonization of energy through Biomass and Green Hydrogen. Experts from RWE will share their latest information on renewables and alternative sources. “Hydrogen will become a vital sustainable energy carrier and that it can significantly contribute to securing energy supply.” says Mr. Henning Joswig, Head of Technologies for RWE Technology International. Meanwhile, Mr. Jack Beks, Senior Project Manager of RWE, said: “The switch to Biomass is essential for the transition to renewables. It enables them to introduce renewable controllable power generation while using existing assets to support the uncontrollable solar and wind power. These avoid the coal assets to shut down too.” The German Chambers Abroad (91大神s) are institutions of German foreign trade and promotion. 91大神s support, advise and represent German companies worldwide that want to establish or expand their foreign business. Event fee: free-of-charge Registration link: https://bit.ly/rwe2022 Agenda: RWE Technology International Agenda For more details about the event, please contact: Mrs. Olivia Noor Head of Market Entry – Business Development German-Indonesian Chamber of Industry and Commerce Email: olivia.noor@ekonid.id
Education Indonesia (education-indonesia.org) offers German standard Dual Vocational Education and Training (GDVET) programs, a wide range of inhouse or online trainings through our network of Trainers, as well as information and relevant news about the education and training sector. “We see how digitalization has accelerated during the COVID-19 pandemic and how crucial it is to find reliable and up-to-date information about Education and Training programs and service providers in Indonesia. To provide this information and to meet the needs of companies in their constant struggle to further qualify their professionals, EKONID, the German-Indonesian Chamber of Industry and Commerce, has created Education-Indonesia.org. “This platform offers information about educational and qualification trends and is aimed to build a network and community between companies and education & training providers ,” says Jan Rönnfeld, Managing Director of EKONID. The training and education sector in Indonesia is the main factor of Indonesia’s economic growth. Within its goal of becoming an industrial nation by adopting the best practices of “Making Indonesia 4.0”, the government of Indonesia recognizes the need to upskill its human resources. Globalization requires companies and their employees to pro-actively take advantage of digital technology in their everyday working schemes to achieve higher production efficiency. Education Indonesia is built upon a network of trainer for trainers complete with an online space that are designed and tailored to fit their brands and contribute to their success in building and broadening their programs. We collaborate with select training providers to provide the best quality training programs, trusted and curated by EKONID. With a variety of topics - both in hard and soft skills - visitors could choose the training suitable for their needs through our Training Calendar. The Training Calendar enables our audience to check the available schedule of training, the topics, and the trainer’s profiles. Aside from professional training, Education Indonesia also highlights the latest issues on vocational education in Indonesia. Through our German Dual Vocational program, we allow companies and vocational schools in Indonesia to collaborate in creating qualified students based on companies’ needs, both in theoretical and practical skills. About Education Indonesia Education Indonesia offers services in the following fields: Vocational Education with the German standard Dual Vocational Education and Training (GDVET) also with the German Standard Further Qualification, as well as Trainer Network with Trainers Profiles and Training Topics. The core of the Education Indonesia network are EKONID’s partners in Training & Education, i.e. project and strategic partners, as well as the members of the Education Indonesia Trainers Network. You can learn more about Education Indonesia on education-indonesia.org or by following our social media @educationindonesia on IG, and Education Indonesia on Linkedin.