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Balance of Trade, Export Expansion stagnates

Despite being able to record a trade surplus in May 2021 of US$2.36 billion, Indonesia's still high commodity prices and global demand have not been able to be utilized optimally,
thus failing to continue the trend of increasing export value this year. Data from the Central Statistics Agency (BPS) shows that Indonesia's exports in May 2021 were recorded at US$16.6 billion, a decrease of 10.25% compared to April 2021 at US$18.49 billion. The export destination countries with the largest decline were China at US$460.1 million, the United States at US$329.8 million, India at US$290.3 million, Japan at US$227 million, and South Korea at US$176.7 million. Meanwhile, on an annual basis, Indonesia's export performance jumped 58.76% from US$10.45 billion in May 2020. At that time, Indonesia's trade conditions were at their lowest during the Covid-19 pandemic. Meanwhile, the monthly decline also occurred in imports, which contracted 12.16% from US$16.2 billion in April 2021 to US$14.23 billion. The decline in imports occurred due to the decrease in goods imports from China by US$564.7 million, Japan by US$316.2 million, the United States by US$195.1 million, Thailand by US$192.9 million, and India by US$165.6 million. Meanwhile, on an annual basis, Indonesia's import performance soared 68.68 percent from US$8.44 billion in May 2020. Deputy General Chairperson of the Indonesian Chamber of Commerce and Industry (Kadin) for International Relations Shinta W. Kamdani said that the decline in imports on a monthly basis was normal. with the end of Ramadan and Eid. He said consumption tends to slow down after the festive season, so businesses don't have much reason to increase imports. He suspects this decline could not be separated from the situation of domestic production.

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Coal Supply for PLTU: Safe Fuel Stock

Vice President of Public Relations of PLN, Arsyadani Ghana Akmalaputri, said that the stock of coal at PLN's power plants was constrained at the beginning of this year.
However, currently, coal stock is in normal condition or above 15 days. At that time, it was disturbed due to weather factors," he said. In addition, in the midst of soaring coal prices, producers still prioritize domestic supply (domestic market obligation / DMO). APBI Executive Director Hendra Sinadia said that although the price and demand for coal in the export market was high, coal producers who already had sales contracts with domestic users could be sure to fulfill their sales according to the contract. “For companies that have contracts, I think there can be no doubt because they must definitely deliver according to the contract. The problem is that there is a deposit compensation, so they inevitably have to deliver it, “said Hendra. Moreover, currently, there is also a regulation from the government that requires coal producers to fulfill the DMO requirement of 25% of the planned total production. In June 2021, the reference coal price (HBA) has crossed the US$100.33 per tonne figure, while the coal DMO price for general electricity is set at US$70 per metric ton. Chairman of the Indonesian Mining Experts Association (Perhapi) Rizal Kasli assessed that the high disparity in coal prices with the DMO coal benchmark price for electricity supply has the potential to encourage coal producers to prioritize export sales rather than fulfilling DMO obligations, especially coal companies that do not have contracts.

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Coal Commodity: Production Rate Is Still Sloping

The Ministry of Energy and Mineral Resources (ESDM) noted that the realization of national coal production until May 2021 was 237 million tons.
Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin, said that the realization was only about 38 percent of the production target for this year which was set at 625 million tons. According to him, there are a number of external factors that prevent producers from being able to increase their production significantly. "Several obstacles experienced by business entities include weather conditions and disasters in early 2021," In the same period, the realization of the use of coal for domestic purposes (domestic market obligation / DMO) was recorded to have reached 51.8 million tons. The DMO realization has reached 37.7% of this year's target of 137.5 million tons. Ridwan said that his party will continue to encourage producers to increase the realization of DMO so that there will be no supply disruptions for the domestic industry. "We ensure that domestic coal needs will still be met as determined," said Ridwan. The Head of the Communication, Public Information Services and Cooperation Bureau (KLIK) of the Ministry of Energy and Mineral Resources (ESDM) Agung Pribadi said that the upward trend in coal prices in the last 2 months was mainly driven by increased demand from China, as well as higher domestic prices. local coal.

|•SOURCE•| Image :INDONESIA WINDOW |

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The Plan for Implementing a Carbon Tax Is Assessed To Make the Coal Investment Climate Worse

The government plans to collect a carbon tax of IDR 75 per kilogram (Kg) of carbon dioxide equivalent (CO2e) or equivalent units.
The goal is to optimize state revenues while controlling environmental pollution caused by carbon emissions. This policy is contained in the fifth amendment to Law (UU) Number 6 of 1983 concerning General Provisions and Tax Procedures (KUP). This regulation is planned to be discussed as soon as this year because it has been stipulated in the National Legislation Program (Prolegnas) by the parliament. Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said the policy plan would clearly burden coal companies. According to him, this will be a new burden for the company, after previously coal was also subject to a 10% value added tax (VAT) after Law Number 11 of 2020 concerning Job Creation was enacted late last year. Hendra said the new tax levy would significantly affect the company's profit. One-third of the money will have a bad impact on the coal investment climate, and the company's investment plans going forward. "In the end it can affect the company's investment plan which will transition to more environmentally friendly energy,"

|•SOURCE•| Articles :POLITICS | Image :PAJAK |

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INDONESIA Retires Steam Power Plant, Coal Industry Enters the 'Sunset' Era

The government continues to encourage the use of clean energy, including in the electricity sector.
In order to reduce the use of dirty energy, the government together with PT PLN (Persero) plan to retire the Steam Power Plant (PLTU) starting in 2025. Seeing this plan, Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia agrees that coal has entered the 'sunset era'. ' aka drowning. However, during this transition period, his party asked for support from the government for the coal industry, so that the transition could go well. According to him, it is possible for coal companies to diversify their business into the New Renewable Energy (EBT) sector. "This industry has entered the sunset period, yes, but how can we support this transition period," he explained in an interview. Hendra said that currently there are several coal issuers who have invested in the NRE sector. According to him, the direction of development of coal companies is now towards NRE, the next step is to need support from the government, so that the development of NRE can also be economical.

|•SOURCE•| Articles :POLITICS | Image :SEPULSA |

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Kominfo Calls on Cellular Operators to Immediately Hold 5G

The Ministry of Communication and Information (Kominfo) invites all cellular operators to follow the steps of PT. Telkomsel to organize a 5G communication technology network.
This is so that people in various remote areas can immediately enjoy increasingly quality telecommunications network services. "We also hope that other cellular operators will also follow suit so that Indonesia will immediately take off using the 5G network," said the Coordinator for Spectrum Allocation for the Fixed and Land Mobile Services, Directorate General of Resources and Equipment for Post and Information Technology (SDPPI) of the Ministry of Communication and Information, Adis Alifiawan at a Media Discussion (Media Discussion). Dismed) Forum Merdeka Barat 9 (FMB9) which was held virtually titled "Indonesia Maju with 5G", other cellular operators besides Telkomsel who are now enlivening the implementation of 5G are the cellular operator of the telecommunications company Indosat. His current status is in the process of obtaining a Certificate of Operationalworthiness (SKLO) to obtain terms of commercially providing 5G services to the public, especially its customers. The issuance of SKLO is carried out based on the Regulation of the Minister of Communication and Information Number 5 of 2021 concerning the Implementation of Telecommunications, which is the implementing rule of the Job Creation Act (UU 11/2020) and PP Number 46 of 2021 concerning Post, Telecommunications, Broadcasting (Postelsiar).

|•SOURCE•| Articles :POLITICS | Image :KOMPAS |

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