Corona Virus Update #63 May 10, 2021
Cumulative number of reported cases 1,709,762 (as of May 10)
Fatality Rate: 2.7
Rupiah to US: 14,198
Jakarta Stock Exchange Index: 5975
Reserves (US$ Billions): $138.799
As expected, thousands of Indonesians left the nation’s cities and towns before the government’s travel ban (May 6) to make their annual return to their birthplaces (mudik) to be with family and relatives for the end of the fasting month (Lebaran/May 13). Although the police are turning back many vehicles and have instituted a travel ban its nearly impossible for them to interdict those traveling by motorbikes via small roads and alleyways and officials are resigned (and preparing) for a post Lebaran surge in cases. Checks are underway to ensure that hospitals have sufficient supplies of oxygen, ventilators, nursing and orderly staff, as well as gloves and masks. Nationwide case detections dropped 5% week-on-week through May 5. Jakarta province’s remained level at 785. Meanwhile vaccinations are expanding with 8.3 million people having received a second dose, 4.6% of the target. In a story that was carried by worldwide media, 5 workers at a state-owned pharmacy company administering COVID.
Indonesia is now banning travelers from India and Pakistan or who have traveled there. Check your airline regarding their route and landing policy.
Indonesia has not yet opened access for visa-on-arrival and visa-free during the COVID-19 pandemic, except for foreigners with essential purposes such as businesses, works, or humanitarian reasons. Visit Indonesian Immigration (https://www.imigrasi.go.id) and the Indonesian Embassy (https://kemlu.go.id/washington/en) for updated visa and entry requirements as regulations may change frequently.
Port of entry for international flights remains Jakarta for most flights.
AICC Member, PT Cekindo can help secure business visas.
The current situation is that you need to have a local sponsor to obtain a visa and you have to undergo a 5-night quarantine The local sponsor applies directly to Indonesia’s immigration department. Jakarta is currently the only port of entry; you fly to other regions (i.e. Bali) from there.
AICC member PT Cekindo is currently arranged business visas if you do not have a local sponsor. Contact: Vincent Cellier email@example.com
- VAT Increase: Finance Minister Sri Mulyani announced that a discussion is planned with Parliament to raise 10% VAT (value-added tax) and also the minimum threshold for compliance by small enterprises.
- 2022 Work program: The National Planning Agency (BAPPENAS) outlined the government’s development strategies. An annual affair attended by the President and all economic ministers, the key priorities are: added value in the industrial sector, boosting tourism growth and recovery, strengthening food self-sufficiency/resilience, equitable distribution of infrastructure, reduction in greenhouse-gas emissions, strengthening national health care system and COVID recovery, increasing human resources and innovation.
- Q1 GDP Fell: Indonesia’s first quarter GDP dropped 0.7% according to the Central Statistics Agency but encouraging signs such as trade volumes and purchasing managers index point to higher and positive growth in 3rdand 4th quarters of 2021.
- Unemployment: Indonesia’s official unemployment rate is currently at 6.26% representing 8.75 million workers, far from a normal level. These numbers, combined with the large segment of informal/day wage workers who are not part of any official figures, tell a story of reduced consumption, the major factor in Indonesia’s fallen growth rate.
- ADB Coal Policy: Indonesia’s position as a large coal exporter, already under the gun in 2020 as exports fell off the map, is being challenged by The Asian Development Bank. It will no longer finance coal mining or oil and natural gas activities, it announced in a draft policy statement on Friday. The multilateral development bank, which focuses on eradicating poverty in Asia, provided no timeline for its commitment. It also laid out conditions under which fossil fuel projects would continue to receive funding, such as where no other cost-effective technology was available.
The Constitutional court ruled this week on the 2019 KPK Law Revision and reinstated the anti-corruption agency’s right to wiretap and raid suspects without having to first gain approval from an Oversight Board.