|Indonesia Update | November 22, 2017
Authors: Kim Yaeger, Artha Sirait, Ian Saccomanno and Gaofan Zhang
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|THE COUNCIL'S TAKE|
OJK to Set up a New FinTech Center
In addition to Bank Indonesia’s (BI) FinTech Office which was launched in November 2016, the Indonesian Financial Services Authority (OJK) is planning to set up a separate FinTech Center to support the development of digital economy in Indonesia. BI is in charge to regulate FinTech companies engaged in payment services; meanwhile the OJK is the authorized entity to regulate FinTech companies offering services such as investment and insurance. BI’s FinTech Office aims to facilitate the development of innovation in the technology-based financial ecosystem in Indonesia while preparing the country to optimize the development of technology to develop. BI’s FinTech Office’s mandate it to improve the competitiveness of the financial industry and support BI policy formulation. OJK’s FinTech Office on the other hand, will aim to improve OJK supervision of the FinTech industry in Indonesia. OJK Chairman Wimboh emphasized that all FinTech companies must be licensed and supervised for the sake of transparency and consumer protection. As a result, FinTech companies may face more stringent supervision and regulations from the government in the coming years. Currently, there are 24 active peer-to-peer lending companies and 31 companies that are in process of applying for permits.
Indonesia asks the US to Cancel Countervailing Duty on Biodiesel
Minister of Trade Enggartiasto Lukita has requested the United States to reconsider its decision regarding the enforcement of a countervailing duty on Indonesian biodiesel products. Previously, on November 9, the U.S. Department of Commerce (USDOC) announced that it will be imposing anti-dumping duties ranging from 34.45 to 64.73 percent on palm oil-based biodiesel imports from Indonesia. However, whether the duties will actually be imposed depends on the result of the currently ongoing investigation conducted by the U.S. International Trade Commission (USITC). The duties will be imposed if the USITC determines that the U.S. is suffering losses from biodiesel imports, otherwise the duties will be withdrawn. USITC will announce its final investigative report on December 21.
The issue was triggered by concerns raised by American U.S. biodiesel producers that Indonesia is dumping its biodiesel into the U.S. at below-market value, a move made possible by the Indonesian government’s biodiesel subsidy programs. The U.S. producers claimed that these programs subsidized biodiesel exports as well as required the local producers to blend a mandatory amount of fatty acid methyl ester (derived from palm oil) to lower the costs. If the duties are imposed, the Indonesian exporters may look for and expand in other markets, such as China, India and its ASEAN peers. The Indonesian government itself has stated that the biodiesel produced under these programs is only sold in its domestic market. Minister Enggartiasto added that Indonesia will consider filing a complaint to U.S. courts and the WTO over the anti-dumping measures from the U.S.
In 2016, Indonesian biodiesel exports to the US reached USD255.56 million, which accounts for 89.19 percent of total Indonesian biodiesel exports. This year, however, exports have declined due to the U.S.’ anti-dumping measures.
|IN THIS UPDATE|
Malaysia to import chickens, ducks from Indonesia The Jakarta Post 22nd Nov 2017
Indonesia asks US to cancel countervailing duty on biodiesel The Jakarta Post 20th Nov 2017
Financial Inclusion Rate to Reach 75 Percent by 2019 Tempo 20th Nov 2017
Govt Sets Two Locations for Gas-Based Petrochemical Industries Tempo 21st Nov 2017
Lawmaker calls for review of 35,000 MW program The Jakarta Post 20th Nov 2017
Indonesia to Issue New Regulation to Protect Tuna From Overfishing Jakarta Globe 20th Nov 2017
West Java key to achieving RI’s food self sufficiency targets The Jakarta Post 20th Nov 2017
Government to integrate state lenders’ EDC services The Jakarta Post 20th Nov 2017
Transport Ministry Probes Snake Incident on Jakarta Commuter Train Jakarta Globe 22nd Nov 2017
Confronting Indonesia's productivity challenge in manufacturing industry The Jakarta Post 20th Nov 2017