Overview
According to the Indonesian Employers Association (Apindo), 69% of Micro, Small, and Medium Enterprise (MSME) in Indonesia do not understand the Sustainable Development Goals (SDGs), which are the foundation for sustainable economic practices. One challenge in implementing sustainable economic practices in Indonesia was the difficulty in meeting environmental compliance requirements and greenhouse gas emission targets. According to research, 78% of small businesses suffer losses due to complicated requirements.
Ronald, Apindo Head for MSME, emphasized the importance of the government’s role in creating a supportive environment for MSMEs, including financial incentives, access to information and regulatory simplification. Additionally, sustainability training and grants for green technology were crucial for empowering MSMEs. Meanwhile, the National Centre for Corporate Reporting (NCCR) Executive Director, Ali Darwin, states that limited access to finance and regulatory complexity hinders MSMEs, even though more were adopting sustainability principles. Ali further said that MSMEs have significant potential to contribute to poverty reduction, improved welfare and sustainable economic growth.
To reduce inequality among countries and to improve the quality of life, in 2015, the United Nations introduced a new series of goals called ‘Sustainable Development Goals’ (SDGs) made up of 17 goals and 169 associated targets to be achieved over the next 15-year period starting from 2016 until 2030. In order to support the accomplishment of the SDGs, cross-disciplinary cooperation with other parties is required as the goals involve all aspects of human endeavor. In this situation, corporations play a significant role to support the achievement of the goals as they undertake many business activities that involve and contribute to a country’s standard of living. Hence, there is a major opportunity for corporations to assist governments in achieving the SDGs through their business activities, particularly through corporate social responsibility (CSR) activities.
Indonesia was one of the fastest countries in the world to achieve the SDGs, with 62.5% of the targets met, significantly higher than the global average of just 17%. However, the National Development Planning Minister Suharso Monoarfa revealed that 29.5% of Indonesia’s SDG achievements were still off track and required special attention as certain indicators remained stagnant or were even worsening.
Latest Update
- Petronas Expansion Plans in East Java
- Malaysian national oil company Petroliam Nasional Bhd (Petronas) plans an “aggressive” expansion in Indonesia that will see it create a hub for its operations in East Java in the short term, and investment exploration to solidify its position in the Eastern part of Indonesia for the longer term.
- Petronas currently operates four oil and gas blocks in Indonesia – three of them are located in East Java region:
- North Ketapang;
- Ketapang PSC;
- North Madura
- According to Yuzaini Md Yusof, head of Petronas Indonesia, the company plans to create a hub for the 3 operations in East Java by linking their production facilities and integrating logistics facilities.
- East Java is expected to benefit from a pipeline project due to be completed in December 2025 that will connect supply from the eastern side of the island to demand in the densely-populated western part, and Petronas plans to expand its business there.
- Its North Ketapang block is in the exploration phase, while Hidayah field in North Madura II block is expected to produce the first oil by 2027. Petronas is also developing a new gas field in Ketapang block.
- CNGR Plans to Build Battery Industrial Park in Indonesia
- Chinese battery material maker CNGR Advanced Material Co., plans to build an integrated battery Industrial Park in Indonesia. The investment value of the project reached US$ 10.5 Billion or equivalent to IDR 164.9 Trillion (assuming an exchange rate of IDR15,705 per US dollar).
- CNGR has submitted the application for the Industrial Park to be included in the National Strategic Project (PSN), with an area of around 3,000 to 5,000 Ha, and divided into 3 phases. CNGR is currently coordinating with the Ministry of Industry, Ministry of Investment and Ministry of Energy & Mineral Resources.
- Director of Public Relation of CNGR Indonesia, Magdalena Veronika, explained that the construction of the Industrial Park is planned to be completed in the next 10 to 15 years. However, no further details were disclosed, including the specific location of the industrial park.
- The plan to build the CNGR integrated battery Industrial Park however once was mentioned by the Coordinating Ministry for Economic Affairs. The ministry said CNGR’s Industrial Park development project was in North Konawe called the Kawasan Industri Tekno Hijau Konasara (KITHK). In fact, CNGR has invested IDR 32.1 trillion in Indonesia since 2021.
- In Indonesia, CNGR has portfolio on nickel processing industry facilities in Morowali, North Morowali Sulawesi, Weda Bay North Maluku, and Batulicin Kalimantan.
- Chandra Asri’s Acquisition of Shell Energy Chemicals Park Singapore
- Joint Venture between PT Chandra Asri Pacific Tbk (TPIA) and Glencore plc, through CAPGC Pte. Ltd. (CAPGC), are entering the final stage of the acquisition of Shell Energy and Chemicals Park Singapore (SECP).
- Chandra Asri estimates that the acquisition transaction will be completed by the end of this year or at the latest by January 2025. Thus later, all assets from SECP can be consolidated in TPIA’s financial statements starting next year. The acquisition value however was not yet disclosed by both parties.
- The SECP consists of a crude oil refinery with a processing capacity of 237,000 barrels per day, a 1.1 million metric tons per year ethylene cracker on Bukom Island and downstream chemical assets on Jurong Island.
- According to Quek Chin, Managing Director of Glencore, SECP is a key asset in Southeast Asia, uniquely and strategically located in Singapore which is Asia’s leading energy trading center.
- EdgeConnex’s Land Acquisition in Lippo Cikarang Cosmopolis
- Lippo Cikarang Tbk (LPCK), a property developer of an urban area called Lippo Cikarang Cosmopolis (LCC), officially signed an agreement on October 30, 2024 with EdgeConnex, a global Hyperlocal to Hyperscale Data Center Solutions pioneer, for the sale of approximately 4.5 Ha of land located in the LCC area, for data centre
- LCC’s development size was 3,250 Ha of land, noting around 667,492 people working every day in 1,523 manufacturing facilities.
- Located in West Java, EdgeConneX and Lippo Groups’ former data center entity, Graha Teknologi Nusantara (GTN), which was acquired by EdgeConnex in 2022, have been operating Tier 3 certified data centers since 2016.
- Originally, GTN was established through a joint venture between Mitsui of Japan and local information technology (IT) distributor and integrator, PT Multipolar Technology, which is part of the Lippo Group.
- Over the past year, the EdgeConneX site has expanded into two facilities and will support 200 MW of IT capacity. Once the two additional data centers are completed on the newly acquired land, the expanded data center will more than triple its total capacity to over 200 MW.
- 15 Taiwan Investors Plan to Relocate to Indonesia
- Coordinating Minister for Economic Affairs Airlangga Hartarto stated that 15 investors from Taiwan Textile Association intended to relocate their factories to Indonesia if Indonesian sides could meet their requests.
- First, easy process of land purchases in Indonesia. Airlangga offered the investor to enter Industrial Parks.
- Second, green energy sources to comply to global demand in the high-end textile
- Third, competitive price for gas to support their operations, as their research in Indonesia came back with US$ 12 per MMBTU. Airlangga explained that on average industries in Indonesia received gas at US$ 9 per MMBTU.
- Fourth, lucrative market opportunities. Currently the biggest profits are obtained through investments in China and Vietnam, especially because Vietnam has the European Union Comprehensive Economic Partnership Agreement (EU-CEPA) and the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) trade agreements. The investors conveyed their expectation for Indonesia to accelerate the Indonesia-EU-CEPA (IEU-CEPA) and CPTPP. Once the IEU-CEPA is effective, they plant to relocate their facilities from Vietnam to Indonesia.
- Swiss Aseptic Packaging Producer Interest to Invest in Indonesia
- SIG Combibloc, a Swiss manufacturer of aseptic packaging sees attractive business prospects in Indonesia in the long run and is interested in establishing its manufacturing facility over the medium term period.
- Established in 1853, SIG is headquartered in Neuhausen, Switzerland, employing 5500 people worldwide serving the needs of customers in more than 60 countries.
- SIG’s Head of Market Indonesia, Malaysia, Vietnam and Philippines, Noer Wellington mentioned that packaging industry is inseparable from the FMCG industry.
- SIG observed that Indonesia’s population continues to grow, the number of middle- class people as the key to economic growth is larger, and income levels are consistently rising. These three things have spurred the strengthening of Indonesia’s FMCG industry, and makes Indonesian market more lucrative.
- Currently the market share by liter of SIG packaging in Indonesia has reached 28%. The high market coverage is due to its cooperation with large companies such as Nestle, Indofood, Cisarua Mountain Dairy, Greenfields, Diamond and others.
- SIG Combibloc operates 16 factories located in several countries, including Thailand, China, India and Europe. No facility in Indonesia, so that to meet the Indonesian demand the company imports from its Rayong factory – Thailand, which takes 1 to 2 weeks of logistics lead SIG is looking for ways to shorten the delivery time to meet the growing market in Indonesia.
- Indonesia Morowali Industrial Park (IMIP) Plans to Build a 28 Hectare Edupark
- Emilia Bassar, Director of Communications at IMIP, conveyed the plans to build an IMIP Edupark on 28 Ha land out of their development site of 4,000 Ha. The park will contain, among others, endemic plants from Sulawesi Island, a nursery, organic compost processing, maggots, and a special environmental laboratory.
- The Edupark will demonstrate efforts for a green building in the industrial area over the past five years.
- Other than that, IMIP has been continuously taking more ESG initiatives leverage credibility in its global positioning, including using electric vehicles – starting with 28 electric dump trucks and targeting 400 units in operation to reduce fossil fuel dump trucks, in addition to building more environmentally-friendly power plants from gas, solar panels, and hydropower. IMIP has applied solar panel of 200 MW in an area of 224.73 Ha.
- Nusantara Collaborates With 7 US Companies to Build Command Centre
- The new capital city Nusantara has announced collaboration with 7 leading technology companies from the US to build the phase II Command Centre, marked by the signing of a Proof of Concept (PoC) implementation agreement worth US$ 7.6 million or IDR 120.08 billion (exchange rate US$1= IDR 15,800).
- The agreement was signed by Nusantara’s Deputy for Green and Digital Transformation Mohammed Ali Berawi and Meta Mind Global Corporation (MMGC) CEO Vishal Currie, who represented the seven technology companies on October 31,
- The 7 US companies will bring their specialties, covering of:
- Amazon Web Services will provide cloud services and IT security;
- Autodesk handles construction management and design;
- Cisco supports IT and network infrastructure;
- Esri plays a role in geospatial analysis;
- IBM focuses on asset and environmental management;
- Honeywell handles surveillance and security systems;
- Motorola provides reliable communication and network
- Nusantara’s Phase I Command Center is a monitoring and control service for the Nusantara smart city based on big data and computer vision technology that utilizes sensor-based surveillance and monitoring technology, CCTV, and drones.
- Tanjung Sauh’s IUKI Has Officially Been Issued
- The Industrial Park Business License (IUKI) of Tanjung Sauh Industrial Park has been issued. Having a National Strategic Project / PSN status, the land was given the status of Special Economic Zone (SEZ) in June 2024.
- The PSN has a land area of 840.67 Ha, consisting of 703.8 Ha of land, and 136.87 Ha
- Occupancy rate has reached 59.7% as the SEZ was awarded to Tanjung Sauh to support business activities in production and processing, logistics and distribution.
- Tanjung Sauh developed of a 4×100 MW Steam Power Plant and is planning for Solar Power Plan to be built in 2025 to fulfill the energy needs of the area.
- This project is projected to absorb a workforce of 366,087 people until 2053 and has a target of realizing IDR 199.6 trillion in investment.
- GOTO, Alibaba Cloud & Tencent’s Cooperation for Cloud & AI Infrastructure
- GoTo Group, Tencent Cloud, and Alibaba Cloud officially signed an agreement covering the strengthening of cloud computing infrastructure, and the development of local digital talent in Indonesia at the Indonesia-China Business Forum facilitated by the Indonesian Chamber of Commerce and Industry Chinese Committee.
- The three companies will work with the Indonesian government to equip the Indonesian workforce with the necessary skills to excel in the global digital To strengthen cloud infrastructure, Tencent Cloud will build its third Internet Data Center in Indonesia worth around US$500 million in infrastructure, resources, and investment in Indonesia until 2030.
- Alibaba Cloud also plans to double the number to 800,000 by 2033, and will establish a Skills Center at Universitas Indonesia as part of the Alibaba Cloud Academic Empowerment Program (AAEP), that provides worldwide students with online cloud computing and big data training and certification.
- Prabowo – Xi Jinping Witnesses 7 Cooperation Agreement Between Indo-China
- Prabowo Subianto and Xi Jinping witnessed the signing of a number of cooperation agreements between Indonesia and China. Seven cooperation agreements were signed between respective ministers, in the Great Hall of the People, Beijing on November 9, 2024. These agreements are:
- Protocol on Phytosanitary Requirements for Fresh Coconut Fruit Exports from Indonesia to China
- Technical Working Guidelines for Promoting Sustainable Capture Fisheries
- Memorandum of Understanding on Deepening Blue Economy Cooperation
- Memorandum of Understanding on Mineral Resources Cooperation
- Memorandum of Understanding on Green Mineral Cooperation
- Memorandum of Understanding on Cooperation in the Field of Water Resources
- Memorandum of Understanding on Conformity Assessment Cooperation
- The agreements reflect a comprehensive approach to strengthening Indonesia-China relations in various fields, and Indonesia’s stance on making China as a strategic partner can be seen by Prabowo’s decision to make China as his first visit after his inauguration as the president of Indonesia.
- After the signing on November 9, President Prabowo was also seen to visit Indonesia – China Business Forum 2024 in Beijing, China on November 10, to witness several B2B signing agreements with a total of investment value reached US$ 10 billion or IDR 156.19 trillion (exchange rate IDR 15,619).
- The investments aim to strengthen business collaboration, open employment opportunities and further develop infrastructure projects in Indonesia.
- Apple’s Proposition to Build an IDR 157 Million Factory in Bandung
- Apple is offering an additional investment of nearly US$10 million (IDR 157 billion) in Indonesia. This was revealed by an inside source reported by Bloomberg. The additional investment was made so that Apple could sell the latest iPhone 16 series in Indonesia. The reason why the government is still prohibiting iPhone 16 from entering Indonesia is because Apple is considered not to comply with the Domestic Component Level (TKDN) rules that applies in the country.
- Apple is said to be planning to invest in a factory in Bandung, West Java, and will partner with several suppliers. Minister of Industry Agus Gumiwang said Apple’s DCL certification was no longer valid and had not been extended. In addition, Apple has not fully realized its investment commitment, lacking IDR 240 billion from its committed IDR 1.71 trillion. The Indonesian government encourages Apple to set up R&D in Indonesia.
- SD Guthrie and AME Elite Jointly Develop Green Industrial Park in Johor-Singapore SEZ (JS-SEZ)
- SD Guthrie, one of the largest producer of certified sustainable palm oil and one of Asia’s Fortune 500 Company (Malaysia) along with AME Elite (Malaysia), a massive construction engineering company that has extensive portfolios of Industrial Parks development in Malaysia such as i-Park @Southern Industrial & Logistic Cluster, i- Park @Indahpura, SME City, i-Park @Senai Airport City; large scale manufacturing plants and industrial buildings; property investment and management service, collaborates to develop a Green Industrial Park within the JS-SEZ
- SD Guthrie said the Industrial Park will be developed on 641 acres/ 259.4 Ha of land in its estate in Kulai as a hub for high-value industries such as logistics, advanced manufacturing and clean It will feature a range of ready-built and built- to-suit factories.
- SD Guthrie signed a memorandum of understanding with AME Elite’s wholly-owned unit, AME Industrial Park Sdn Bhd, on November 4, 2024 to formalise the collaboration, which includes stringent environmental standards and sustainable practices, while a JV agreement is expected within the next five months.
- This collaboration shows an expanding portfolio for SD Guthrie to enter the Industrial Park business sector after decades of operating palm oil estates, mills and refinery in Johor, and increases the competition for Indonesia, especially around Batam.
- Central Java Seeks Partner for Waste-to-Energy Plant Development
- The Semarang City Government in Central Java province is preparing to launch a tender to identify a partner for the development of a waste-to-energy (WTE) power plant at the Jatibarang landfill in Central Java. The tender is scheduled for March 2025, pending final approval from the Indonesian Ministry of Finance.
- The planned WTE facility will be located on an 11-hectare area of the Jatibarang landfill and is designed to process approximately 1,200 tons of waste daily, generating up to 18 MW of electricity.
- The construction cost is estimated at IDR 2.6 trillion (approximately US$ 165 million). The project targets an Internal Rate of Return of 14% and anticipates a tipping fee of IDR 230.5 billion ($ 14.7 million) annually.
- The construction phase to span two years, with operations expected to commence in May 2028. The electricity tariff is projected at 13.35 cents USD per kWh under a 20-year contract. No details were provided on the targeted operation date.
- TotalEnergies ENEOS Completes Solar Rooftop Project With Ceres
- TotalEnergies ENEOS has successfully completed a 2-megawatt-peak (MWp) solar rooftop installation for Ceres, a major player in Indonesia’s chocolate confectionery industry.
- The solar photovoltaic (PV) system, featuring over 3,700 modules, will produce around 3,250 megawatt-hours (MWh) of renewable electricity annually, supplying approximately 9% of Ceres’ manufacturing facility in Bandung, West Java. This installation is expected to reduce the company’s carbon footprint by roughly 2,600 tons of CO₂ emissions annually equivalent to removing about 560 cars from the road or planting over 39,000 trees.
- Under the terms of the agreement, TotalEnergies ENEOS financed, installed, and will operate the system, allowing Ceres to pay only for the electricity generated, providing significant cost savings with no upfront investment over a 15-year period.
- TotalEnergies ENEOS, a joint venture between TotalEnergies and ENEOS, aims to develop 2 gigawatts (GW) of solar capacity across Asia within the next five years.
- Chandra Asri Acquires Vessels to Support Logistics Growth
- PT Chandra Daya Investasi (CDI), a subsidiary of IDX-listed petrochemical company PT Chandra Asri Pacific (IDX: TPIA), is expanding its business portfolio by acquiring and operating four vessels, including oil/chemical tankers and a natural gas carrier.
- These four vessels mark the company’s first fleet, aimed at improving operational efficiency and strengthening the sustainable supply chain through global maritime transportation services. Fleet operations will be managed through CDI’ subsidiaries in the logistics sector: PT Chandra Shipping International (CSI) and PT Marina Indah Maritim (MIM).
- In the long term, Chandra Asri Group, through CDI, plans to expand its fleet further by acquiring additional vessels to enhance its competitiveness and create new business opportunities with third parties.
- The vessel operations also form part of Chandra Asri Group’s broader expansion strategy as it explores diversification into the maritime logistics and storage tank sectors. By managing the transportation of essential raw materials for industry, the company aims to ensure greater supply reliability, maintain stability in production processes, and strengthen the resilience of its supply chain.
- UNTR to Generate 40 MW from Waste-to-Energy Project in West Java
- Mining, energy, and infrastructure firm PT United Tractors (IDX: UNTR) is set to generate approximately 40 megawatts (MW) through its waste-to-energy project in West Java. The project, spearheaded by UNTR’s subsidiary, PT Energia Prima Nusantara (EPN), aims to address both energy needs and waste management challenges in the region, as announced during the Renewable Energy Leadership Forum at the Indonesia Pavilion on the sidelines of COP 29 in Baku, Azerbaijan, on November 12.
- In 2023, EPN established a consortium with Sumitomo and Kanadevia Corporation (formerly Hitachi Zosen Corporation) to develop the Legok Nangka Waste-to- Energy This initiative represents Indonesia’s first Public-Private Partnership (PPP) for waste-to-energy under Presidential Regulation No. 35 of 2018.
- The project addresses waste by incinerating 1,800 to 2,000 tons of municipal waste daily, collected from six municipalities across West Java. The waste will be incinerated to generate electricity, which will contribute to the Java-Bali power
- TBS Energi Utama’s US$ 405 Million Acquisition of SembEnviro, Subsidiary of Sembcorp.
- Sembcorp Industries has entered into a share purchase agreement to sell 100% of the shares in its wholly-owned subsidiary Sembcorp Environment (SembEnviro), a waste and recycling firm in Singapore to SBT Investment 2, a wholly-owned subsidiary of Indonesia Stock Exchange-listed PT TBS Energi Utama (TBS).
- The total consideration for the proposed transaction is estimated at US$ 405 million. This represents a 43% premium over the book value and net asset value of SembEnviro and its subsidiaries as at June 30, after taking into account the estimated pre-completion dividend to be distributed from SembEnviro group.
- This US$405 million transaction marks a significant step for TBS in strengthening its position in the waste management and environmental solutions sector in Southeast
- In Singapore, TBS owns and operates Asia Medical Enviro Services, which specializes in biohazardous and medical waste treatment services.
- The proposed transaction is expected to be completed by the first half of 2025.
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