Indonesia's July inflation rate slows to 3.08% year over year 

Indonesia's annual inflation rate cooled further to 3.08% in July, moving closer to the middle of the central bank's target range and roughly in line with expectations, data from the statistics bureau showed on Tuesday. 

A Reuters poll had expected a July rate of 3.1%. Bank Indonesia is targeting 2023 inflation within a range of 2% to 4%. 

The core inflation rate, which strips out government-controlled and volatile food prices, eased slightly more than expected to 2.43% in July from 2.58% a month before. The poll had predicted core inflation. 

Inflation in Southeast Asia's largest economy has gradually eased since peaking last September at 6%. The central bank hiked interest rates by a total of 225 basis points between August and January to control prices pressures. 

Source: Reuters 

Jokowi’s EV ambition takes a step forward with cathode factory

President Joko Widodo’s ambition of building out Indonesia’s electric-vehicle supply chain is seeing another step forward with plans for a cathode plant. 

Indonesian state miner Aneka Tambang, Indonesia Battery Corporation and a consortium led by South Korea’s LG Energy Solution Ltd. are building the facility as part of a US$9.8 billion "grand package” to build battery production onshore, according to a statement by Indonesia’s investment ministry on Thursday (Aug 3). 

The country is the world’s largest source of nickel, a key material for high-performance batteries, and it’s seeking to use that advantage to build out an EV industry onshore. 

Indonesia has seen a rush of investments into building nickel smelters, followed by plans for a cathode precursor facility. A cathode plant would take the country one notch higher in the value chain. 

Construction for the cathode plant will begin as early as this year after the companies resolved the trickiest part of the negotiation involving shareholding, LG Energy Chief Executive Officer Young Soo Kwon said in the ministry statement. 

The group of companies are also building a nickel smelter, cathode precursor factory and a $1.1 billion battery cell factory set to start production in April. Investment Minister Bahlil Lahadalia said the plans were set back after the US issued the Inflation Reduction Act, which disrupted the global supply chains for EV battery materials. 

Source: The Star 

Indonesia to Release Golden Visa Policy in a Week or Two, Minister Luhut Says 

Indonesia's Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan said the Golden Visa policy would likely be issued in one or two weeks. The policy will waive visas for foreign companies or foreigners who invest in Indonesia with a certain value. 

Luhut said that his ministry had just discussed the Golden Visa policy with President Joko Widodo and a number of ministers. "I think maybe this can be finished in 1-2 weeks. I'd say one week," Luhut said at the State Palace in Central Jakarta, Tuesday, August 1. 

In addition to investments, Luhut said this policy would later target foreigners who have high intellectuals, including researchers from world's leading universities. He said that the Golden Visa could also be given to artificial intelligence or AI developers. 

The Director General of Immigration, Silmy Karim, said that this policy would later benefit the Indonesian government. Because apart from granting visas which are very selective, companies wishing to obtain a Golden Visa must make a real investment of at least US$50 million dollars. Meanwhile for individuals, the investment value in government bonds is at least US$350,000. 

"They have to make a real investment, not just on paper, not just a notary's deed. We will monitor the amount and also the activities," Silmy said. 

Eligible applicants can get a multi-entry visa that is valid for five to 10 years. Later, they can conduct business and other activities in Indonesia. 

Slimy added that the Golden Visa policy is also one of the government's ways to screen qualified individuals from overseas entering Indonesia.  

"Many countries have had success with issuing Golden Visas, such as the UAE, Singapore, then several European countries, and the United States. Indonesia needs to implement this policy," Silmy said. 

Source: Tempo