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  Issue Number 186 - March 2020
 
In this issue
 
President's Column
Vale Viky (Vic) Halim - IABC Executive Director
IA-CEPA Corner
Export Finance Australia
Digital Health in Indonesia - Opportunities for Australia
Indoview
 
Events
 

Due to the COVID-19 Crisis, the AIBC Board has elected to suspend all events until further notice.  Click here for further information.

 

 

Phil Turtle
National President

President's Column

Dear Members and Friends,

Our very best wishes are with you, your families, loved ones and colleagues during this unprecedented COVID-19 crisis. Impacts for all are significant and far-reaching, with much time to pass before any sense of normality returns in both countries, and surely this will look different to anything we have seen before.

At AIBC we have taken our own steps in dealing with the evolving situation and have postponed any face-to-face gatherings, and have made the difficult decision to also postpone our major Conference planned for Darwin in October. We look forward though to kicking things off again as soon as we are able, and working with our host partners, the Northern Territory Government, to reschedule our Conference sometime in 2021.

 

 

From left, Foreign Minister Retno Marsudi, President Joko Widodo, and Finance Minister Sri Mulyani Indrawati join the COVID-19 enforced G20 virtual meeting at the Bogor Palace. (Photo courtesy of Presidential Press Bureau)


As with a good many businesses, our own office staff are now working from home, and our meetings are held via Zoom and other platforms. No doubt many businesses will learn a lot from this forced use of technology and remote working (WFH), and we will surely see a beneficial increased use of these practices in the future.

Again, we urge all to keep up to date with reliable and timely information on COVID-19 and local responses. Within Australia the Federal Department of Health and DFAT continue as good sources of up to date and accurate information. At this time, no one should be embarking on any travel between Australia and Indonesia, except to return “home”, with the mandated isolation to follow. Our Ambassador Gary Quinlan reinforced this recently via his advice to the Australian Business Community in Indonesia, and there is now a Temporary Prohibition on Entry into Indonesia for Foreigners (see here)

AIBC will also continue to keep in contact with Members and the community through our Twitter and LinkedIn accounts. Please follow these so you can also receive any important updates. AIBC itself has significant in-house expertise and networks to assist any business facing challenges, so please contact us directly here if we can assist in any way.

We wish our Governments, Community Leaders and Health Services all the best as they deal with this extraordinarily challenging and complex situation. We will get through this, and there will be much better days ahead, and AIBC looks forward to being part of the rebuilding along with our own “family”.


Phil Turtle
National President

Vale Viky (Vic) Halim - IABC Executive Director

 


 

It was with great sadness that we recently farewelled our friend Vic Halim, the long-serving Executive Director of the Indonesia Australia Business Council (IABC).

Vic’s passing, after a period of ill-health, is a huge loss to IABC and to us all. He has left an indelible mark on IABC and AIBC over many years, as well as on the broader Indonesia-Australia relationship, and his many friends and colleagues will miss him dearly.

Vic was an alumnus of the University of New South Wales, where even back in the mid 1980’s he was bringing Australian and Indonesian students together. It is in this time that Vic first became known to AIBC Vice President Sam Hardjono, so our history with Vic spans some 35 years or so.

AIBC was pleased to be represented at Vic’s funeral in Jakarta by AIBC Ambassador, Yudistira Adipratama, who also made arrangements for a fitting floral tribute on behalf of AIBC and its Members. Yudistira was also able to personally convey our condolences to Vic’s sister Connie at this sad time.

 

AIBC’s Yudistira Adipratama with IABC’s Peter Fanning at Vic’s funeral

 

AIBC’s floral tribute at Vic’s funeral

 

Another friend and long-serving IABC stalwart Peter Fanning reflected that even in his final weeks, when clearly suffering, Vic put on a brave face and helped organise the recent IABC New Year’s Event at which between taking breaks to take oxygen, Vic still managed to chat cheerfully with those in attendance.

 

Vic enjoying IABC New Year’s event with Ambassador Quinlan


AIBC also shared our condolences formally with IABC President Hamzah Thayeb, and our letter to Ambassador Thayeb can be seen here.

Our friends at IABC are also assembling a book of condolence messages for presentation to Vic’s family, so please lodge any you might wish to share here.

Vic may you rest in peace.

IA-CEPA Corner


 

Since President Jokowi’s State Visit to Australia, the handful of formalities we anticipated prior to the automatic 60-day countdown to entry into force, have unfortunately not been concluded.

With the COVID-19 crisis now understandably occupying the major focus of both Governments, we hope that this may yet be advanced so that when we emerge from the current state of affairs, we are primed and ready to work together for mutual economic benefit.

AIBC continues to advocate behind the scenes, and will keep our Members and friends updated as we can.

Useful links for those interested in further detail on IA-CEPA include the DFAT IA-CEPA website, together with earlier submissions of AIBC and the Indonesia-Australia Business Partnership Group (IA-BPG).

(* the Indonesia-Australia Business Partnership Group IA-BPG, comprises the AIBC, ACCI, Ai Group, IABC, KADIN and APINDO).

Export Finance Australia

 

 

Export Finance Australia is there to help Australian exporters through COVID-19
 

Export Finance Australia have helped Australian exporters take on the world for more than 60 years. Now, more than ever, they remain open for business to help you access the finance you need to keep operating.

They provide finance to Australian businesses when the banks are unable to help. These include:

  • Working Capital support / Cashflow for inventory ;
  • Capital investment;
  • Overseas Direct Investment;
  • Bond facilities 


Who is eligible for Export Finance Australia support? 

Businesses with:

  • a turnover of more than $250K;
  • trading for at least 2 years;
  • a purchase order/contract/distribution agreement with overseas buyers;
  • a domestic contract where there is a clear link to an export supply chain.


The loan must be used to finance export-related transaction[s] including:

  • for the export of Australian goods or services from Australia (including part of the supply chain);
  • international tourism growth;
  • online sales to international customers.


Whether you're a small business or a large enterprise, they could help. Speak to Export Finance Australia’s experienced team on 1800 093 724 or visit exportfinance.gov.au/COVID19.

Digital Health in Indonesia - Opportunities for Australia

 

This month, Australia’s MedTech and Pharma Growth Centre, MTPConnect, together with Asialink Business, launched their report into “Digital Health in Indonesia – Opportunities for Australia”.

“Indonesia's digital health ecosystem is rapidly growing, and this is providing new export opportunities for Australian businesses and new areas for partnerships and collaboration.

At an annual growth rate of 60 per cent, digital health revenues in Indonesia are expected to reach $973 million by 2023. Digital health is playing a key role in both the healthcare systems of Indonesia and Australia.”

This sector provides timely and exciting opportunities, and will be particularly relevant as the region emerges from the current COVID-19 crisis.

For more on this report, please click here.

Indoview

 

Indonesian Investment Promotion Centre (IIPC) Newsletter


The Indonesia Investment Promotion Centre (IIPC) has published its March newsletter with updates on Indonesia's investment climate and what's happening at IIPC Sydney.

Read the newsletter here.

 

Indonesia announces Rp 405 trillion COVID-19 budget, anticipates 5% deficit in historic move

Marchio Irfan Gorbiano and Adrian Wail Akhlas
The Jakarta Post

Indonesia will issue a government regulation in lieu of law (Perppu) that will boost state spending by up to Rp 405.1 trillion (US$24.6 billion) and widen the budget deficit to 5.07 percent of GDP in the nation’s fight against COVID-19.

President Joko “Jokowi” Widodo said Tuesday the Perppu would serve as a foundation for the government and banking and financial authorities to carry out “extraordinary measures to ensure the people’s health, safeguard the national economy and financial system stability”.

Of the extra spending, the government will allocate Rp 75 trillion for healthcare spending, Rp 110 trillion for social protection and Rp 70.1 trillion for tax incentives and credit for enterprises. The biggest chunk, Rp 150 trillion, will be set aside for economic recovery programs including credit restructuring and financing for small and medium businesses.

“I have just signed a Perppu on state finance policy and financial system stability,” Jokowi said in a telebriefing. “We will issue the Perppu to anticipate the possibility of a state budget deficit that is estimated to reach 5.07 percent.”

To continue reading the full article, please click here.

 

Financing Indonesian Businesses and Projects

In his recent article, Bill Sullivan of Christian Teo & Partners, looks at recent decisions affecting the financing of businesses and projects in Indonesia.

" A recent decision of Indonesia’s Constitutional Court has created a potential new challenge to financing local businesses and projects, including those in the mining industry.

This new challenge is in the form of increased uncertainty about the practical enforceability of a traditionally favoured security right of lenders, being the Fiducia Charge.

Increased uncertainty about the practical enforceability of the Fiducia Charge is also singularly unhelpful for the Government as it seeks to improve the ease of doing business in Indonesia and thereby attract more foreign investment.”

To read this article in full, click here.

 

Omnibus Bill and Changes Ahead for the Mining and Other Sectors

In another recent article, Bill Sullivan of Christian Teo & Partners, looks at the proposed Omnibus Bill on Job creation and its effects on Mining and other secotors.

" The Omnibus Bill on Job Creation proposes major changes to the existing regulatory regime for the Indonesian mining industry as well as to the existing regulatory regimes for numerous other industry sectors.

The future, however, of the Omnibus Bill is very uncertain owing to its complexity and the numerous objections that have been raised to different aspects of the same.”

To read this article in full, click here.

 

Indonesia Market Update

In their February 2020 edition of “Indonesia Market Update”, Morelink Asia Pacific provide news updates across many key sectors including the Indonesian economy, investment, trade, retail, agrifood, manufacturing, automotive, ICT and infrastructure sectors.

To read this update, click here.

 
 
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