American Indonesian Chamber of Commerce

AMERICAN INDONESIAN CHAMBER OF COMMERCE

Update #40 November 30, 2020

Coronavirus Update #40    November 30, 2020

Cumulative number of reported cases: 538,883 (as of November 30)
Recovered: 450,518
Deaths: 16,945
 

Rupiah to US$14,128
Jakarta Stock Exchange Index: 5612

Overview- Active Cases Up

Testing levels remained static this week with officials seemingly resigned to a relatively low level, even though the capacity is there for a more testing. Faced with a 14-day quarantine and the loss of income, many potential subjects –especially daily wage earners—are refraining from getting tested. Central Java governor Ganjar Pranowo stated recently that some regions do not conduct tests to maintain their green zone status. He praised the Banyumas administration for tracking down residents with comorbidity factors, such as diabetes or hypertension, in an effort to prevent COVID-19 transmission to those at higher risk from the disease. “People [with comorbidities] will be given a bracelet as a sign that they are vulnerable, so that people will avoid close contact,” Ganjar said.

Nationally, active COVID-19 cases are up 8% week-on-week, a 2% increase from the previous week. In Jakarta, active cases have plateaued since November 21, according to official figures. “Let us all be more careful because as per Nov. 29, our active case rate has increased to 13.41 percent,” Jokowi said during his opening speech of a Cabinet meeting in Jakarta on Monday.

A national poll revealed that 66% of respondents were willing to participate in a vaccine program. The government will make vaccines freely available to healthcare and other frontline and priority workers. Other recipients will need to pay for the vaccine.

Indonesia’s National Covid-19 Task Force claimed on Saturday (11/28) that the preparation for the distribution of vaccines against coronavirus is almost complete.

Indonesia has begun talks with officials from US pharmaceutical giant Pfizer to secure the Pfizer-BioNTech Covid-19 vaccine to ensure sufficient supplies before a massive roll-out of a vaccination drive next year in the world’s fourth most populous country. According to officials from BPOM, Indonesia’s Food and Drug Administration, Pfizer offered to help provide the required cold-chain facility to ensure proper distribution of their vaccines.

Travel

The following are the current general requirements for traveling to Indonesia:

1.   Free Visa/Visa Exemption and Visa on Arrival are temporarily suspended until the COVID-19 pandemic is declared over by the Indonesian Government.

2.   Foreign nationals can apply for a Visitor and Temporary Stay Visa if they have a legitimate sponsor in Indonesia to sponsor their visa application.

3.   Applications must be made online by a Sponsor through the following website: https://visaonline.imigrasi.go.id/

4.   Once the visa application is approved, the Directorate-General of Immigration of the Republic of Indonesia will issue a visa in the form of an electronic visa (e-Visa) which will be sent to the registered e-mail address of the Sponsor and the applicant.

5.   These provisions apply only to Visitor and Temporary Stay Visa applications. Visa applicants who have obtained a telex visa can still apply for a visa in the Indonesian Consulate.

(Source: website of Consulate of the Republic of Indonesia in NY)

Economic- Investment Bright Spots

·     Stock Market Gains:  Indonesia’s stock market is expected to continue its bullish trend until early next year, supported by cheap stock valuations, low inflation and positive sentiments from both the domestic and global economies, analysts say. The Jakarta Composite Index (JCI) has gained more than 25% in the last six months and around 11 percent in the past month following a slew of positive sentiments both from inside and outside the country, erasing some of the deep losses recorded during market crashes in March and April. According to Fitch Ratings, Indonesian finance and leasing companies should expect stabilizing sector conditions in 2021. This should be driven by an expected economic recovery and steadier funding markets, following weak industry performance in 2020 due to the economic impact of the coronavirus pandemic.

·     Chinese Venture Capital Enters Indonesia: Chinese venture capital investors are shifting their focus to Indonesia after India closed its doors to them. Shunwei Capital, launched by the founders of mobile phone maker Xiaomi, and BAce Capital, which is backed by the fintech giant Ant Group, both said they were pivoting from India to Indonesia. According to an annual report on south-east Asia’s digital economy by Google, Temasek and Bain & Company, investments in the country’s tech sector in the first half of 2020 totaled US$2.8bn, a 55 % increase on the same period in 2019– largely due to these surge of tech investment in the country.