Indonesia Corona Virus Update #36    November 2, 2020

Cumulative number of reported cases: 415,402 (as of November 2 )
Recovered: 345,566
Deaths: 14,044 Rupiah to US$14,666
Jakarta Stock Exchange Index: 5115

Overview-Active Cases Are Dropping

Active cases (total cases minus recoveries and fatalities) have been declining since middle of October, especially in Jakarta. Nationally, the drop is 9% from 67,000 on October 11 to 60,569 on October 29. Overall, however, there is still growth in cumulative cases (cases-to-date) but it has dropped to a 6% week-on-week rate from approximately 10% in previous periods.  Daily detections fell below 4,000 for the first time since September 23.

Concerns over a reversal due to the celebration of the Prophet’s Birthday (Oct. 28-Nov. 1) have arisen.

Travel

On October 1, 2020, Indonesia issued Reg 26/2020, which relaxes certain criteria for foreign visitors to be able to enter Indonesia: Under Reg 26/2020, visit visa holders and limited stay visa holders are now allowed to enter Indonesia, provided they adhere to strict health measures such as presenting a negative COVID-19 certificate. Foreign visitors must also have sufficient health insurance coverage as well as funding (at least US$10,000) to stay in the country.   Visa application is online through the Director General of Immigration.

Click Here to View the Criteria and Procedures

For English: Once on the page click the English flag (Union Jack) in the upper right corner.

Economic

·     GSP Renewed: The US Trade Representative’s Office (USTR) ended its 2-year review of trade benefits extended to Indonesia under a trade boosting program, generalized system of preferences (GSP), with no change in benefits. At issue were market access for US horticultural products (fruits), free flow of data across borders, availability of US reinsurance products (elimination of requirements to use local companies), openness to investment. GSP gives Indonesia’s manufactured products (but not garments) lower duty. Indonesia’s desire to attract manufacturing—especially US production from China—will be assisted by this decision. According to deputy foreign minister Mahendra Siregar, the ambition of the government is to double U.S.-Indonesia trade in the next five years to US$60 billion, while simultaneously encouraging U.S. investment. GSP covers approximately $2 billion of Indonesia’s exports, depending on the year.

·     Manufacturing: The manufacturing sector in Indonesia continued to contract, albeit at a slower pace, the latest survey from IHS Markit revealed on Monday (11/1) with a manufacturing PMI score of 47.8. An increase from 47.2 in September, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

·     Transportation: Indonesia’s capital city Jakarta has come out as the winner of the global 2021 Sustainable Transport Award (STA) for its ambitious integrated public transportation programs. Indonesia is the first-ever Southeast Asian country to have received the prestigious award. The city will be honored at a ceremony in Washington, DC, in January 2021.

·     Minimum Wage Increase: Jakarta will increase minimum wages next year for select businesses despite a government advisory to keep pay unchanged to avoid further job losses during the pandemic. The monthly minimum wage will rise by 3.27% to 4.42 million rupiah (US$302) in 2021 for workers in businesses less impacted by the virus outbreak, according to Governor Anies Baswedan. The condition is that they should be able to operate as usual and help support economic growth in the city.

·     Omnibus Jobs Bill Signed: On November 2 the bill was signed by President Jokowi. Protestors from 32 labor unions, such as the Confederation of Indonesian Trade Unions (KSPI), All-Indonesia Workers Union Confederation (KSPSI) and the Indonesian Metal Workers Federation (FSPMI) gathered near the Presidential Palace on Monday (11/2). Protesters demanded that the government revoke the law and raise minimum wages for 2021, despite several provinces’ announcement to keep the wage floor unchanged in 2021 due to the country’s difficult economic situation amid the coronavirus emergency.

(sources: International and Indonesia news media, Bali Update (from balidiscovery.com), Reformasi Weekly)