Corona Virus Update #67 June 1, 2021

Cumulative number of reported cases 1,826,527 (as of June 8)

  • Recovered: 1,863,031
  • Deaths: 51,803
  • Fatality rate: 2.78%

Rupiah to US: 14,271
Jakarta Stock Exchange Index: 6069
Reserves (US$ Billions): $138.799 (April 30)

Overview- Flat Transmission

3 weeks after the end of the Muslim fasting month nationwide case growth remained virtually flat, registering in the single digits.

Nevertheless, Indonesian authorities have drafted in more doctors and nurses to two areas (East Java and Madura) after hospitals there approached full capacity amid a spike in coronavirus cases, the country’s health minister said on Monday (June 7). Health experts and officials remained worried about the risk of a broader spike in virus cases fueled by variants and a jump in travel last month as many in the world’s biggest Muslim-majority country travelled back to hometowns for holidays after Ramadan. But, signs are encouraging that stay-at-home measures may have worked better than officials anticipated.

Herd Immunity: Moody’s lead Indonesia analyst, Steve Cochrane, projects that Indonesia (along with Philippines, Vietnam, Taiwan and Thailand) may not achieve herd immunity until 2023 due to lack of vaccines. Concurring with Moody’s assessment, Airlangga University epidemiologist Windhu Purnomo warned the government that Indonesia might reach herd immunity only in early 2023, much later than its stated target of late 2021 or early 2022. Windhu said the government’s vaccination program was progressing slowly because of limited vaccine supply. Only some 27 million doses had been administered in the five months since February, far below the government’s initial target of a minimum 30 million jabs each month.

In Person Learning Approved: President Joko “Jokowi” Widodo on Monday gave his approval for in person learning in the upcoming academic year starting in July with strict requirements to ensure a safe return to schools during the Covid-19 pandemic. Only 25 percent of the total number of students are allowed to attend classrooms at a time, Health Minister Budi Gunadi Sadikin said after a meeting with the president at the State Palace in Central Jakarta.

Travel-

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 but should new cases spike, especially those involving the Indian variant, Indonesia could lengthen them to 14 days.  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 vincent.cellier@cekindo.com

Economic

  • More Chinese-backed Infrastructure: State-controlled constructor firm Waskita Karya has signed a master agreement for developing toll roads and other infrastructures across Indonesia with China Communications Construction Company, or CCCC, China’s third-largest construction company, to create a launchpad for its post-pandemic growth, Waskita said on Sunday. Among the infrastructure projects in the pipelines, Waskita and CCCC explore possibilities to develop Kayu Agung – Palembang – Betung toll road project, the Ciawi – Sukabumi toll road, the Cikampek – Plumpang fuel distribution pipeline, the Benoa Bali Port Revetment, as well as several other infrastructure projects. State-Owned Enterprises Minister Erick Thohir, who traveled to China last week, welcomed the agreement.
  • Alternative Minimum Tax: Following on the heals of the recent G7 agreement on an alternative minimum tax, Indonesia’s Finance Minister, Sri Mulyani, mentioned she is strongly considering implementing one centered around tax compliance.
  • No Jakarta Waste-To-Energy Incinerator- A long-awaited facility to process Jakarta’s gargantuan soil waste disposal has on hold indefinitely after financing collapsed. According to reports neither a Power Purchase Agreement from the State Power Company (PLN) nor a central government guarantee materialized even though the project is considered a priority of President Jokowi’s administration. The World Bank’s financing arm, IFC, as well as a Finnish power company had been involved in the project. Jakarta’s existing landfill sites are bursting at the seams and the lack of meaningful progress runs counter to Indonesia’s strong rhetoric on renewable energy.
  • Garuda to Return Boeing Jets: Indonesia’s national airline, teetering on bankruptcy, will return two Boeing B737-800 jets to one of its lessors before their lease term ends as part of its efforts to improve its finances. Garuda will seek a suspension of debt payments to creditors and lessors under a ‘standstill agreement’ in order to avoid bankruptcy, as the coronavirus pandemic continues to hit its income, a senior government official said last week.
  • E-Commerce Thrives in Indonesia: Tech Asia reported that e-commerce sales during the COVID pandemic in Indonesia may have reached 20% of total retail sales, a higher percentage than in countries such as the US, France, Denmark, Norway, Sweden, and Spain.

Politics/Law/Governance

Sub Won’t Be Recovered: Indonesia has ended its efforts to salvage the remains of a navy submarine that sank off the coast of Bali on 21 April, killing all 53 crew on board. The KRI Nanggala disappeared after requesting permission to dive during live torpedo exercises in the Bali Sea. The 40-year-old vessel was found days later, split into three parts.

 

 

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