Govt confirms new COVID-19 subvariant ahead of year-end holidays 
 

The Health Ministry has confirmed the detection of the highly transmissible COVID-19 sublineage JN.1 in Indonesia, just as millions of people are set to embark on their year-end holiday travels. 

According to disease control and prevention director general Maxi Rein Rondonuwu, the ministry had recorded at least 41 confirmed JN.1 cases as of Wednesday.  

The relatively new Omicron sublineage, which the World Health Organization classified as a variant of interest (VOI) earlier this week, had been detected in samples taken from five cases in November. 

While most cases were detected in Jakarta, five others were discovered in Batam, the Riau Islands. 

“Like other Omicron subvariants, most patients who had contracted JN.1 experienced mild symptoms,” Maxi said on Wednesday, as quoted by kompas.id. 

JN.1 is a descendant of the Omicron subvariant BA.2.86, informally called “Pirola”, and is thought to be behind the recent uptick in COVID-19 cases in several countries, including the United States and Singapore. 

The variant was first detected in the US in September, according to the Centers for Disease Control and Prevention (CDC). 

Latest VOI 

While the majority of JN.1 cases showed mild symptoms, Imran Pambudi, the ministry’s infectious disease prevention and control director, said the new strain could cause severe disease in high-risk groups, such as the elderly, people with underlying health conditions and people with weakened immune systems. 

“We urge the public to implement good personal hygiene to prevent infection, such as frequent handwashing, wearing masks when sick or in crowded places, staying home [when ill] and getting COVID-19 vaccines, especially for at-risk groups,” Imran said. 

Due to its increasing global spread, JN.1 has been designated as a variant of interest (VOI), one level below variant of concern (VOC) on WHO’s classification system, and refers to a variant’s relative prevalence compared to others circulating in an area or region and its potential epidemiological changes “to suggest an emerging risk to global public health”. 

According to the WHO’s initial JN.1 risk evaluation published on Dec. 19, the new variant is rated “low” for overall risk to public health. 

It remains unclear if JN.1 is driving the recent uptick in local cases, as the Health Ministry had detected in early December another COVID-19 subvariant classified as a VOI: EG.5, informally called “Eris”. 

Since EG.5 was first reported to the WHO in February, it has spread to more than 90 countries and makes up slightly over half of the COVID-19 variants circulating globally, due to its ability to escape immune responses. 

Despite its higher transmissibility, EG.5 reportedly has a lower fatality rate compared to other subvariants. 

Safe travel 

The detection of JN.1 in the country comes as millions of Indonesians prepare to travel during the year-end holiday season. 

A recent survey by the Transportation Ministry revealed that 107 million people, or 40 percent of the population, were planning to travel over the Christmas and New Year holidays. 

Health authorities urged travelers to remain vigilant against COVID-19 during the holiday season, in view of the significant increase in new cases since November. 

The government recorded more than 2,000 new COVID-19 cases in the past week, almost twice the 1,245 cases recorded during the previous week, with at least 16 deaths recorded nationwide since Dec. 1. 

The ministry confirmed on Thursday 453 new cases, the second-highest daily figure since July 12, after the 486 cases recorded on Wednesday. 

Airline and train operators recently advised all passengers to weak masks and adhere to the COVID-19 health protocols during their trips. 

The Health Ministry plans to provide a third round of COVID-19 booster doses for the elderly and people with comorbidities by next year to protect them and the general population against the new strains. 

Source: The Jakarta Post 

Indonesia c.bank sits tight, sees room for easing in second half 2024

Indonesia's central bank held policy rates steady on Thursday to support the rupiah and keep inflation at bay, but indicated there was room for monetary easing in the second half of 2024. 

Bank Indonesia (BI) kept the benchmark 7-day reverse repurchase rate unchanged at 6.00%, as widely expected by economists in a Reuters poll. Its two other policy rates were also kept steady. 

While inflation in Southeast Asia's largest economy has cooled faster than the central bank expected, growth has weakened this year amid shrinking exports driven by falling commodity prices and sluggish global trade. 

BI has kept monetary policy tight due to volatility in the rupiah exchange rate, which has been hit by capital outflows as the Federal Reserve aggressively hiked interest rates. BI raised Indonesian rates by a total of 250 basis points rate between August 2022 to October. 

The current level of its policy rate was consistent with BI's focus on rupiah stability to ward off imported inflation and keep the inflation rate within target in the next two years, Governor Perry Warjiyo told a press conference. 

Global market uncertainty has begun to ease, with policy rates in many central banks already at their peak, Warjiyo said, predicting the Fed would start cutting rates in the second half of 2024 by as much as 50 bps. 

However, when asked if BI would follow the Fed's footsteps, Warjiyo said: "No. We take (federal funds rate) into consideration but we will not follow. What we aim for is inflation within a 1.5% to 3.5% target range in 2024 and 2025." 

"We can better measure FX risks in the second semester of next year," he added. "If the rupiah strengthens earlier and inflation can stay low, the room (for easing) may be open, but we will not rush." The central bank said it expects upward bias in volatile food inflation next year due to supply issues, and policymakers will continue to monitor the situation. 

BI maintained its outlook for GDP, forecasting 4.5%-5.3% for this year and 4.7%-5.5% in 2024. 

Myrdal Gunarto, economist with Maybank Indonesia, said the earliest BI could trim policy rates was in May or June, as prices would peak during the Eid al-Fitr holidays in April. The magnitude of cuts will likely match the Fed's easing, he added. 

Capital Economics predicted BI would move before the second half of next year. 

"...with economic growth set to struggle and inflation likely to remain subdued, we think easing will come sooner than that. We have cuts pencilled in for the central bank’s April meeting," Ankita Amajuri, its economist said in a note. 

All economists polled by Reuters before Thursday's decision had expected BI would start loosening monetary policy in the third quarter of 2024. 

The rupiah has strengthened in the past week as dovish comments by Fed policymakers boosted emerging market assets. The rupiah was largely unchanged after Thursday's announcement. 

Source: Reuters 

IKN attracts Rp41.4 trillion in investment in 2023

Investment commitments totaling Rp41.4 trillion (around US$2.67 billion) have been realized during Phase 1 through 3 of project groundbreakings this year at Nusantara, according to the Nusantara Capital Authority (OIKN).  
 

"A significant increase in investment realization indicates hope that the construction of new national capital (IKN) would proceed as planned, is indicative of investor confidence. IKN is a representation of Indonesia's transition to a new, sustainable civilization as well as a brand new metropolis," OIKN head Bambang Susantono said. 

The amount of investment signifies stronger investor confidence in IKN development prospects, he added. 

 
Phase 3 of project groundbreaking took place on December 20 and 21, 2023, with the IKN Authority becoming increasingly optimistic about the rise in investor commitment. 

 
In addition to promoting expansion and fair economic distribution across the country, this momentum will create a large number of job opportunities for the local population. 

 
OIKN has bagged 330 Letters of Intention (LoIs) so far, with about 55 percent of applicants being domestic investors focused on the development of the national axis sector. Currently, Singapore, Japan, China, and Malaysia are the four countries that have submitted the most LoIs. 

 
The value of investment in Phase 1 of project groundbreaking at IKN on September 21–22, amounted to Rp23 trillion (around US$1.4 billion) and involved 10 companies in the Nusantara Consortium. 

The companies in the Nusantara Consortium include Agung Sedayu Group (lead consortium), Salim Group, Sinar Mas, Pulau Intan, Djarum, BCA Group, Wings Group, Adaro Group, Barito Pacific, Mulia Group, and Astra Group. 

 
Phase 2 of project groundbreaking was held at OIKN on November 1–2, with the investment value of projects reaching Rp13.1 trillion (around US$846 billion). 

 
The Ministry of Transportation, Mayapada Hospital, Pakuwon Group, JIS, Hermina, Bank Indonesia, BPJS Employment, and PLN Indonesia broke ground on phase two. The revival of SDN 020 Sepaku, whose land was dedicated by the locals. 

 
The government is providing several incentives and compensation to corporations interested in investing in IKN, as regulated by Government Regulation Number 12 of 2023 concerning the Granting of Business Licensing, Ease of Business, and Investment Facilities for Business Actors in the OIKN 

 
The incentives and compensation include a corporate income tax of zero percent for 10 years, import value added tax (VAT) of zero percent, sales tax on luxury goods of zero percent, import duty of zero percent, and land and building tax of zero percent for 10 years. 

 
"IKN is not just a city, but it is a manifestation of Indonesia's vision that is advanced, inclusive, and sustainable. The active involvement of investors signifies the collective spirit to achieve the goals of Golden Indonesia 2045, " Susantono said. 

Source: Antaranews