Kementerian Investasi dan Hilirisasi atau Badan Koordinasi Penanaman Modal (BKPM) mencatat, kinerja realisasi investasi Q1/2024 hingga Q3/2024 telah mencapai Rp1.261,43 triliun. Capain ini sekitar 76,45% dari target yang dicanangkan Pemerintah pada tahun ini yang mencapai Rp1.650 triliun.
Adapun realisasi investasi di Pulau Jawa dan luar Pulau Jawa di sepanjang bulan Januari hingga September 2024 tercatat hampir sama, yaitu 49,66% atau Rp626,43 triliun berbanding dengan 50,34% atau Rp635 triliun. Sementara itu, total nilai realisasi investasi di bidang hilirisasi hingga Q3/2024 mencapai Rp272,91 triliun atau 21,6% dari total realisasi dari Q1/2024 hingga Q3/2024.
Realisasi investasi di bidang hilirisasi tersebut terdiri dari sektor mineral yang meliputi pembangunan smelter nikel, tembaga, bauksit dan timah. Kemudian sektor kehutanan, pertanian, minyak dan gas, serta ekosistem kendaraan listrik.
Adapun realisasi investasi di Pulau Jawa dan luar Pulau Jawa di sepanjang bulan Januari hingga September 2024 tercatat hampir sama, yaitu 49,66% atau Rp626,43 triliun berbanding dengan 50,34% atau Rp635 triliun. Sementara itu, total nilai realisasi investasi di bidang hilirisasi hingga Q3/2024 mencapai Rp272,91 triliun atau 21,6% dari total realisasi dari Q1/2024 hingga Q3/2024.
Realisasi investasi di bidang hilirisasi tersebut terdiri dari sektor mineral yang meliputi pembangunan smelter nikel, tembaga, bauksit dan timah. Kemudian sektor kehutanan, pertanian, minyak dan gas, serta ekosistem kendaraan listrik.
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TVTranscript
00:00GAMEPLUS ARCADE is available only on NCTI Plus Super App.
00:04Play it now!
00:21Hello, viewers. How are you today?
00:23Live from IDX Channel Jakarta, I'm Prasetya Wibowo.
00:27Welcome back to Market Review, a program that discusses issues that affect the economy in Indonesia.
00:32You can watch our live streaming at idxchannel.com.
00:35Let's start the Market Review.
00:39INVESTMENT REALISATION
00:47Investment realisation in the month of January to September 2024 is recorded at IDR 1,261.43 trillion,
00:55or 76.45% of this year's target.
00:59However, the total realisation of investment in the field of hillarisation until Q3 2024 reached IDR 272.91 trillion.
01:12Ministry of Investment and Hillarisation or Ministry of Coordination of Capital Plantation stated
01:17that the total realisation of investment from Q1 to Q3 2024 has reached IDR 1,261.43 trillion.
01:29This is around 76.43% of the target set by the government this year, which reached IDR 1,650 trillion.
01:38There is also the realisation of investment in the island of Java and outside the island of Java
01:42throughout the month of January to September 2024 recorded almost the same,
01:48which is 49.66% or IDR 626.43 trillion,
01:53compared to 50.34% or IDR 635 trillion.
01:59Meanwhile, the total realisation of investment in the field of hillarisation until Q3 2024 reached IDR 272.91 trillion,
02:10or 21.6% of the total realisation from Q1 to Q3.
02:18The realisation of investment in the field of hillarisation consists of the mineral sector,
02:23which includes the development of smelter nickel, copper, bauxite, and tin.
02:28Then the forest sector, agriculture, oil and gas, as well as the electric vehicle ecosystem.
02:35From Jakarta, IDX Channel coverage team.
02:41Meanwhile, the government continues to boost economic energy by increasing the opportunity for investment in the water.
02:47And the government is also keen to provide various incentives for foreign investors, especially in the special economic zone.
02:58The Ministry of Coordination of the Department of Economics ensures that it will continue to boost the realisation of investment
03:04with various incentives that will be given to investors.
03:09One of the incentive instruments that is widely circulated by the government is the incentive through the special economic zone.
03:17The Minister of the Department of Economics, Ayr Langka Hartarto, explained during a visit by President Prabowo to a number of countries,
03:24indicating that he is still very interested in investing in Indonesia.
03:28Several companies around the world ensure that they will continue to invest in Indonesia because they have promising prospects.
03:37Ayr Langka added that he will continue to promote various investment facilities, one of which is through the special economic zone.
03:46Some CEOs will also invest for a long time.
03:51For example, Exxon will continue to invest up to 15 billion.
03:58Of course, there is another one related to the manufacturing sector.
04:03Yesterday, the President also received 50 American entrepreneurs.
04:09Then before that, there were also Japanese entrepreneurs, GCC and Japinto.
04:15I think it's all part of the fourth investment.
04:21Previously, the government has also encouraged various foreign investors through various roles of collaboration with domestic companies.
04:31In addition, the government continues to improve the ease of regulation and business permits in Indonesia.
04:38From Jakarta, Raharjo Padmo, IDX Channel.
04:44Yes, our guest is one of our interesting topics this time.
04:47Hillarization Game Changer, Realization of Investments in 2024.
04:51We are already present with me in the IDX Channel studio, Mr. Hendra Sinandia, Director Executive Indonesia Mining Association.
04:58Hello Mr. Hendra, how are you?
05:00Alhamdulillah, how are you? Thank you for inviting me.
05:02Thank you for your presence and time, Mr. Hendra, and for joining us through Zoom.
05:08With Ms. Etika Karyaniswondo, a senior researcher at the Indonesian Corp and the Faculty of Economic Business at the University of Semarang.
05:17Hello, how are you?
05:18Ms. Etika.
05:20Hello, how are you, Mr. Pras?
05:22Alhamdulillah.
05:23How are you? Greetings from Semarang.
05:25Thank you for your time.
05:27Ms. Etika, before discussing further, the Ministry of Investment and Hillarization has reported the total number of investment realizations
05:36up to the third quarter of this year is Rp1,261.43 trillion or 76.45% of the target this year is Rp1,650 trillion.
05:47Is this in line with the consensus of economists so far?
05:53Thank you, Mr. Pras, for the question.
05:55So, as mentioned earlier, the realization of Rp76.45% of the target this year is Rp1,650 trillion.
06:09If we look at the extra target, the number has exceeded the target of Rp1,239.3 trillion.
06:20However, is this in line with the consensus of economists?
06:23Let's take a look at Indonesia's economic growth projection in 2025,
06:28where the OECD, Organization for Economic Cooperation and Development,
06:34and also the government, through the budget of the National Budget in 2025,
06:40have projected Rp5.2%.
06:43Meanwhile, the BI also estimated between Rp4.8% and Rp5.6%.
06:49If we look at this projection, it is expected that the realization of investment can make a significant contribution,
06:57especially if we look at the Hillarization sector.
07:00As mentioned earlier, the Hillarization sector contributes about 21.6% of the total investment.
07:07And then there is also investment outside Java, which also exceeds or balances with investment in Java, which is 50.34%.
07:17Does this mean that it is easy to indicate in the investment sector?
07:20Well, let's check later. Is it really?
07:22Because if we look at it, the Hillarization sector is more focused on a specific area.
07:28Earlier, the government has set up a strategy to raise interest rates.
07:32However, we can also say that although there are various economic projections,
07:38this strong investment realization can show that Indonesia is on the right track to meet this year's target
07:48and create a better investment income in the future.
07:51That's what I think.
07:53Mr. Hendra, what do you think?
07:55As mentioned earlier, the investment realization outside Java is almost the same as the one in Java,
08:04which is 49.66% compared to 50.34%.
08:09Do you think this is also correlated with the Hillarization policy that the government keeps pushing?
08:16Yes, of course, this is in line with the Hillarization policy of investment development outside Java.
08:24If we look back at the statistics data, from 2024 to Q4, the Hillarization portion was 21.6%.
08:38On average, in 2023, it was 25.6%.
08:43So, if we look at the last 3-4 years, the contribution is about 20% consistent.
08:52From the 25% last year, in the coal and mineral sector, the contribution is about 62-65%
09:01compared to the Hillarization for the plantation sector, forestry, oil and gas, and fisheries.
09:10So, the portion is larger in the coal and mineral sector, 62-65%.
09:15Then, there is a lot of mining in remote areas outside Java,
09:20so the Hillarization investment will be more outside Java.
09:25Okay, but in your opinion, is the Hillarization investment in the mining sector still a game changer
09:34for the national investment realization in Indonesia?
09:38I think the data I mentioned earlier, with 25% last year, and also in the last few years,
09:44it's more than 20%.
09:46Of course, the impact of the Hillarization investment development is very impactful for investment in a direct way.
09:54Then, we actually still have a lot of opportunities for future development,
09:59especially since we want to be one of the main players for EV battery components,
10:04and also other commodities are being developed, such as bauxite, aluminum, and other critical minerals,
10:12which are very sexy right now.
10:14So, the opportunities for the future are very big,
10:16so if the government policy is correct, and the global conditions support,
10:23we are still sure that the Hillarization investment in the mining sector
10:27can still be a game changer for investment in Indonesia.
10:31So, what do you think?
10:34Do you think Indonesia, as a global investor, is still sexy enough,
10:39and is still a prime donor?
10:41Or what do you think?
10:42Even though Mr. Erlangga has said that the President's meeting with a number of global businessmen
10:47still shows a high level of interest.
10:52If you look at the increase from the previous year,
10:56the increase in domestic investment data has increased more,
11:02or more or less around 29.4 percent,
11:06while the PMI, or foreign direct investment, is around 16.1 percent.
11:11Indonesia's PMI is actually higher than the PMDN,
11:16the domestic capital investment,
11:18with the figure reaching around 51.8 percent,
11:22while the PMI is 48.12 percent for the PMDN.
11:25This increase reflects,
11:27it can be said that there is foreign investment confidence in Indonesia's economic potential.
11:33However, I also think that this is an interesting target
11:37when this investment is an interesting target for foreign investors,
11:40because it can be influenced by several factors.
11:43For example, the mining industry is an interesting sector.
11:46Then, the health policy is also one of them.
11:49If we look at the big market opportunities,
11:52our demographic bonus is also quite strategic to be able to expand.
11:57But we also need to pay attention,
11:59we need to address the issue of legal certainty and regulation,
12:02then the logistical costs are relatively high.
12:07And the last one, in my opinion,
12:10the availability of skilled workers,
12:13especially in the high technology sector, can be a hindrance.
12:16So, on the one hand, there are interesting things,
12:19because some of the sectors I mentioned earlier are interesting,
12:22but there are also other challenges.
12:24Okay, can those challenges be an opportunity that can be used?
12:28We will discuss further in the next segment.
12:30And, Mr. Mirza, make sure you are still with us.
12:51Thank you for joining us in Market Review.
12:53We will continue this interesting discussion with Mr. Hendra Sinadia,
12:57Director Executive of Indonesia Mining Association,
12:59and also Mrs. Etika Kariani Suwondo,
13:01a senior researcher at Core Indonesia.
13:03This is interesting, Mr. Hendra,
13:05if we look at the data provided by Mrs. Etika,
13:08we can see that the overall PMA,
13:10during the January-September investment,
13:13or up to the third quarter of this year,
13:15is higher than the PMDN.
13:17But in the field of hillarization,
13:19this is also interesting.
13:20In the mining sector,
13:22the PMDN in January-September 2024
13:26was recorded at 74.63 trillion.
13:29A little higher than the PMDN.
13:32In the PMA,
13:343.86 million US dollars.
13:37What can you say about this?
13:39If we break it down,
13:41hillarization in coal and mineral
13:44is more in the nickel commodities.
13:47Nickel commodities are more.
13:49Last year, there were two major projects
13:52that were officiated,
13:54smelter in Amman Mineral,
13:56and also in Freeport, in Gresik.
13:58It was officiated.
14:00If we look at it,
14:03PMA is still in Freeport.
14:05It's still a foreign stock there.
14:08Then Amman Mineral is more national.
14:11And if we look at the nickel commodities,
14:14there is also a delay for investment
14:18in the nickel smelter system
14:21that uses RKF technology,
14:23Rotary Clean Electronic Furnace.
14:26Because the government also reflects that
14:30RKF nickel smelter is already too much,
14:33according to the government.
14:35And it absorbs a lot of nickel calories,
14:38which is very limited.
14:43So the government pushes for the use of
14:45pyrohydrometallurgy.
14:47This is not a lot,
14:49and there are several local companies that follow.
14:51In RKF, there are also several large local companies.
14:54One of them is Ceria.
14:56They have also invested quite a lot
14:58and received support from the domestic banking syndicate.
15:02If we look at it,
15:04in 2024,
15:08there will be quite a lot of investment from SMEs,
15:11especially those several companies.
15:13This is interesting.
15:14If we talk about investment,
15:16we know that mining,
15:18as Mr. Hendra said,
15:20is still a game changer.
15:22How do you see the impact
15:24from the mining subsector
15:26on foreign investment
15:28or domestic investment?
15:30Oh yes, I added earlier
15:32the support from the domestic banking syndicate.
15:34Then there is also a macro-prudential policy
15:36from Bank Indonesia.
15:38This is a direction from President Jokowi
15:40to increase the supply of credit
15:43to investment companies.
15:46If foreign investment is interested,
15:48this is interesting if we look at it.
15:50If from the perspective,
15:52we are still very good.
15:54Because now, strategic minerals
15:56are a challenge for developing countries.
15:58The development of clean energy
16:00requires very large critical minerals.
16:03And Indonesia has a lot of large reserves.
16:06Here, what becomes a challenge,
16:08as I said earlier,
16:10is still in legal certainty.
16:12Especially in exploration.
16:14Because for the continuation
16:16of the supply to the downstream industry,
16:20exploration is needed
16:22for our reserves.
16:24Here, we don't have a lot.
16:26Our exploration can be said to be stagnant.
16:28Okay, this is interesting.
16:30The challenge has also been mentioned earlier.
16:32From the SDM side,
16:34we must also understand the high technology use
16:36in the mining sector
16:38and maybe other investment sectors.
16:40What do you think can be immediately
16:42broken up by the government,
16:44entrepreneurs in the hillarization sector,
16:46or other investments,
16:48so that it can catch up
16:50and the mining problem
16:52can still be a fundamental problem?
16:58Hello?
17:00Mr. Hendra mentioned
17:02the hillarization of nickel.
17:04Indonesia has become
17:06one of the most prominent examples
17:08of hillarization of nickel.
17:10That's what Mr. Hendra said.
17:12But if we don't realize it,
17:14Indonesia is still a developing country
17:16that is forced,
17:18a developing country
17:20that is forced to buy semi-finished products
17:22such as iron, tin, aluminum, etc.
17:24made from Indonesian mining resources.
17:26In this hillarization stage,
17:28although it offers many benefits,
17:30the implementation is still not easy.
17:32The current condition,
17:34if we look at the hillarization,
17:36is still only focused on,
17:38maybe Mr. Hendra will correct it later,
17:40on the infrastructure
17:42that I feel Indonesia is still
17:44in a low position
17:46in the global chain.
17:48I also feel that there are some
17:50that in order to become
17:52an advanced industry,
17:54Indonesia needs to push
17:56the development of semi-finished products
17:58that are better,
18:00to become the last product in the industry.
18:02In reality, we can say
18:04that we can't go anywhere,
18:06there are still a lot of houses
18:08that have not been completed.
18:10The hillarization of minerals and coal
18:12is just a strategic precaution
18:14to transform from a developing country
18:16to an advanced industry country.
18:18And earlier, our dependence
18:20on foreign technology,
18:22then the low quality of HDM,
18:24earlier there was also a complicated bureaucracy,
18:26I feel this is an obstacle
18:28that must be overcome.
18:30There must be an evaluation,
18:32the hillarization policy
18:34must be considered important
18:36without technology,
18:38then the management of the industry
18:40by domestic entities,
18:42the environment must also be considered.
18:44Why?
18:46The hillarization policy
18:48will not only become
18:50a tool for industrialization in other countries.
18:52Meanwhile, Indonesia
18:54will only act as a supplier
18:56of cheap semi-finished goods.
18:58So there must be continuous improvement
19:00in order to be able to
19:02rise to the level of industrialization.
19:04There are quite big challenges.
19:06Who can be the leader
19:08to synergize the policies,
19:10then how to create
19:12an investment eclipse
19:14in this part of the hillarization,
19:16especially in the mining sector
19:18which is expected to be a game changer
19:20for the realization of investment,
19:22who is it?
19:24Let me go back to the government.
19:26Earlier, we also felt that
19:28regulation and policy
19:30are still the biggest challenges.
19:32For us, Indonesia
19:34has already implemented FGD
19:36from so many sectors.
19:38One of the biggest challenges
19:40is the issue of regulation.
19:42There is a sudden change in policy
19:44and then there is a gap
19:46between the ministries.
19:48That can create uncertainty
19:50for investors.
19:52It means that
19:54harmonization of regulation
19:56and simplification of licensing procedures
19:58through the digital system
20:00is still needed, including
20:02providing clear legal guarantees to investors.
20:04Okay, we will
20:06continue in the next segment.
20:08Mr. Hendrik, do we really need
20:10a common solution?
20:12We will discuss it in the next segment.
20:14We will be right back.
20:17Indonesia Mining Association
20:34Correct, we will still have a conversation
20:36with Mr. Hendrak Sinedia.
20:37Director, Executive,
20:39Indonesia Mining Association and then
20:41Mrs. situated inside the 자주ban in Indonesia.
20:43Mr. Hendrak has just said,
20:45Yes, there are quite a lot of PRs that need to be challenged regarding hillarization in our mining sector.
20:51It has to be a gap changer.
20:53This is also proven by what Nikel has just said.
20:57It can be a pilot project related to hillarization.
21:00But there are still a lot of PRs that need to be challenged.
21:04Yes, in my opinion, there are still a lot of PRs.
21:07Our hillarization is still in the early stages.
21:09From the perspective of the mining actors themselves, we have already implemented the obligation.
21:12The obligation to build processing and refining in the country.
21:18And it can't be exported. It has already been implemented.
21:21Now, the problem is the added value that is produced from our hillarization.
21:27It is mostly enjoyed abroad.
21:29As Ms. Etika said, most of the mineral processing products are exported.
21:34For example, we still export 80% of the ore.
21:37So, the added value is enjoyed abroad.
21:39This is our challenge.
21:41Our biggest challenge is how to create an investment climate for industrialization.
21:47So, in our country, the government has already established hillarization and industrialization.
21:52So, it's more to industrialization.
21:54Our hillarization still produces midstream products.
21:58Intermediate products.
21:59As Ms. Etika said.
22:00So, not yet the hillarization.
22:02The hillarization industry, how to develop this is certainly a big PR.
22:05If from the mining sector, as I said earlier, the PR side is exploration.
22:13As I said earlier, we have implemented the obligation for processing.
22:17But for the future, to absorb the demand for many strategic minerals,
22:24this is in exploration.
22:26That's from the hillarization side.
22:29From the hillarization side, as I said earlier, the local industry,
22:33how the incentives created by the government,
22:37as well as the support of funding,
22:39to enable the hillarization industry to absorb the midstream products
22:45that are processed by mining companies.
22:48Okay, but if we look at the process of hillarization,
22:51now it's in the midstream, as you said.
22:53In the midstream, what hasn't been started yet?
22:57Is it the process of fabrication or what?
23:00Actually, that's not the mining area.
23:04As I said earlier, our area only does the obligation as per the law.
23:09The industry is a different area.
23:12Here, maybe the forward linkage policy is very necessary to be created.
23:20As I said earlier, the results of the nickel processing,
23:24later it can be used as a battery percussion,
23:27maybe for the battery pack, EV battery.
23:30And also in mining, for example,
23:32the one that absorbs the mining cathode can also be produced in the country.
23:36Those are the more technical and detailed things that need to be brought to life.
23:41Okay, Ms. Etika, this is interesting.
23:43It means that the hillarization side,
23:45we have to upscale it again.
23:49Ms. Etika, what do you think?
23:51Do we need to start right away?
23:54Do we need another policy to push the hillarization position?
23:59So that the absorption from the midstream can be done by local production
24:06in the hillarization itself, in the hillarization part.
24:11It's true that hillarization, especially in the mineral sector,
24:16is very dependent on exports, on international demand.
24:20Especially in countries like China and Europe.
24:23We are very reluctant.
24:25If there is a global commodity price fluctuation,
24:28it can affect the stability and income of the hillarization product.
24:32So what is this?
24:33We need a diversification of the export market
24:36to reduce dependence in a certain area.
24:39Or maybe we also need to develop another hillarization sector,
24:42such as petrochemicals, oil and natural gas,
24:44which has already made a big contribution,
24:48but maybe it can be left behind.
24:51And the other potential is hillarization.
24:56It can be an increase in labor power, of course.
24:58That's our hope.
25:00Maybe we can continue it or you can modify it.
25:04Related to the Indonesian manufacturing PMI,
25:06which has undergone a contraction in the last five months,
25:09can it be a challenge in itself?
25:12Yes, of course.
25:14Our PMI, or what is called the Purchasing Managers' Index,
25:19has undergone a contraction for the last five months,
25:26with the last figure at 49.6,
25:31although this is a slight increase from the previous month,
25:34which was 49.2.
25:37This contraction shows that the manufacturing sector
25:41is the backbone of the economy
25:43and one of the sectors that employs quite a large number of workers.
25:46We can say that we are experiencing the industrialization of the world.
25:50If we compare it to what we have experienced in Indonesia,
25:53we can say that it is the industrialization of the world.
25:55Why?
25:56With the decrease in the PMI,
25:58it indicates that there is a decision on labor relations in the manufacturing sector.
26:05Some companies have also chosen not to replace employees
26:10or in some cases,
26:12they have done a PHK which can increase the unemployment rate
26:16and this becomes another social burden for the government.
26:19And another thing,
26:20the decrease in the PMI also affects the trade rate
26:24because the decrease in the output of manufacturing can reduce the value of our exports,
26:28so this will worsen the trade rate.
26:31Finally, the decrease in the PMI has a negative impact
26:36on domestic and economic growth in general.
26:39So, the decrease in the PMI
26:42reflects the weakness of our industrial sector.
26:46Okay, the last question.
26:47Mr. Henterang, how do you see the optimism
26:50and how can we be more optimistic in 2025
26:54with the challenges that we will discuss later?
26:57Yes, we still see optimism
27:00in the development of mining hillarization
27:03with the new government
27:07and I think the government understands the urgency.
27:11That's why in the news,
27:14the government is trying to discuss with several countries
27:19about the Mineral Partnership Agreement
27:21with several countries in the West,
27:23America, Canada, Australia,
27:25for example, to diversify our investment
27:30as mentioned by Mrs. Anita.
27:32So, the government understands
27:34that it is very critical now.
27:36On the one hand, we have a great opportunity
27:39to support the government's program
27:42to reach 8% through mining hillarization,
27:45but on the other hand, there is also a delay
27:47as mentioned by Mrs. Etika
27:49regarding the Global Dynamics Agreement.
27:52Then, our policies still need to be improved.
27:56Many fiscal policies, for example,
27:59legal certainty, etc. need to be improved.
28:02So, there is still a lot of work on the one hand,
28:04but we still see the optimism
28:06that the mining sector will still be a game changer.
28:10And one of the things that may support
28:13our industry energy sector
28:15is that we still have a fairly large coal reserve.
28:18This is for cheap energy
28:20to support the development of industrialization
28:23which was mentioned earlier,
28:24it feels like there is already an indication
28:27towards the delay in industrialization.
28:31Well, I hope it doesn't happen.
28:33Thank you very much for your presence.
28:36Mrs. Etika, thank you for the information,
28:38updates, and analysis that you have given to the audience.
28:41Congratulations on your activities again.
28:43Good health, Mrs. Etika.
28:45Good health to all, Mr. Hendra.
28:47Yes, the audience, don't run away from your place
28:49because in a moment we will come back
28:51with another interesting topic
28:52related to the effectiveness of Jumbo's education budget
28:54by the government of Prabowo-Gibran.
28:56See you in a moment.
29:01Jumbo's Education Budget