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    • SingCham is the premier business chamber for Singaporean interests in Indonesia. Founded in 2006, SingCham aims to promote the business interests of individuals or companies operating in Singapore and/or Indonesia. SingCham provides networking activities, events, and useful information for its members, and acts as the liaison between the Singaporean business community and the Singapore and Indonesian governments. With a focus on fostering better networking and feedback among members, SingCham is committed to providing valuable resources and insights to help members connect, learn, and grow their businesses in Indonesia. Join SingCham today and become part of a thriving business community that benefits from exclusive resources, networking opportunities, and business insights.

    15Aug, 2018
    For the sake of Rupiah, Chevron’s contract will be amended

    ESDM Ministry’s Director General of Oil and Gas (Oil and Gas) Djoko Siswanto said, if possible an amendment was made regarding the production sharing contract (PSC) related to the government’s assignment to Pertamina to buy oil lifting from the KKKS.

    “If you cannot use the regulation, it can work, if it is needed, then the PSC amendment will be done, later it can be added, for example, it had the right to export but prioritized for domestic interest at market price. Staying added like that, the PSC amendment will be completed. “Djoko told the media when met at the ESDM Ministry, Jakarta, Wednesday (8 August).

    He said, there would be an additional lifting potential of 225,000 bpd that could be absorbed by Pertamina. At present, all of Indonesia’s production is 775,000 bpd, and Pertamina currently uses 550,000 bpd.

    “775,000 bpd is reduced to 550,000 bpd which is exported,” added Djoko.

    Furthermore, Djoko explained, at this time he was writing to all existing KKKS with three groups, namely those who had contracted with outside buyers, who had tender with Pertamina but Pertamina lost the tender, and the group that offered the right to match, then he joined the auction , and become the winner of the auction.

    13Aug, 2018
    Energy investment in Indonesia less than half of target

    In the first half of this year, Indonesia booked US$9.48 billion in investment in the energy and mineral resources sector, only 25 percent of the full-year target of $37.2 billion.

    The oil and gas sector contributed the most to the total investment at $5.11 billion, followed by electricity at $2.83 billion.

    Meanwhile, the mining and renewable energy sectors recorded a respective $790 million and $750 million in the first half.

    Responding to the results, the Energy and Mineral Resources Ministry said in a presentation made available to The Jakarta Post that global energy prices had become one of the main challenges in the past three years.

    “The focus ahead is to continue with efforts that simplify regulations, strengthen investment facilities and speed up the process of making strategic decisions,” the ministry said in the presentation.

    Energy and Mineral Resources Ministry spokesman Agung Pribadi told the press last Friday that investment in oil and gas would jump significantly in the second half, as was typical.

    (source: The Jakarta Post)

    1Aug, 2018
    Credit infrastructure of state-owned banks in Indonesia skyrocketed
    infrastructure – illustration. Photo by pxhere

    Infrastructure projects become the backbone of state-owned banks. In the first half of 2018, infrastructure loans grew over 20% year on year (yoy).

    One of the aggressive banks that channeled infrastructure loans is Bank Negara Indonesia (BNI). Loans of Rp 107.96 trillion in the second quarter of 2018 flowed into infrastructure projects. This figure rose 22.98% from Rp 87.78 trillion in the same quarter.

    The toll road and construction sectors, as well as power plants, receive the largest credit loans of 30 percent of total infrastructure credits. The remainder, loans poured for transportation infrastructure, telecommunications, oil and gas.

    Herry Sidharta, Vice President Director of Bank BNI, said that the company still relies on the electricity, toll road and construction sectors, as well as transportation and telecommunications for infrastructure credit distribution in the second semester. To boost the infrastructure credit in 2018, the BBNI-coded bank selects projects from government initiatives included in strategic projects as well as the private sector with measurable risk prospects.

    Not to be outdone, Bank Mandiri’s infrastructure loan disbursement reached Rp 165.8 trillion, or grew 24.1% in the first half of 2018 compared to the same period the previous year. The transportation sector is the largest recipient of credit with a value of Rp 39.3 trillion.

    Then electricity sector Rp 36.8 trillion, and oil and gas and renewable energy Rp 24.1 trillion. Dikdik Yustandi, Senior Executive Vice President of Bank Mandiri, said that infrastructure is the main pillar of corporate credit. The proof is that corporate loans grew 23.2 percent to Rp 300.1 trillion until June 2018. Bank Mandiri predicts that corporate loans will grow 15 percent by the end of the year.

    Most recently, Bank Mandiri provided a syndicated loan of Rp 2.10 trillion for the construction of the Jakarta-Cikampek II toll road segment elevated along 38.6 km.

    Taswin Zakaria, President Director of Maybank Indonesia, said that the need for substantial infrastructure funding can not be fully owned by state-owned banks. That’s where private banks play a role. “Currently more than 20% of our corporate loan portfolio is infrastructure credit,” said Taswin.

    As for Jan Hendra, Corporate Secretary of Bank Central Asia (BCA) said that infrastructure loans are still dominated by toll roads and electricity.

    (source: Kontan)