As published in

INDONESIA
COUNTRY BUSINESS FEATURE Read online November 2022

Destination G20

G20 PRESIDENCY BUSINESS ENERGY TRANSITION

Indonesia’s global mission — p.02 B20 forum showcases investment opportunities — p.04 Indonesian companies leading the green revolution — p.04

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2 INDONESIA
Q&A
H.E. HUSIN BAGIS
INDONESIAN AMBASSADOR TO THE UAE
“MANY SEE INDONESIA
AS A TOP DESTINATION
FOR BUSINESS AND
INVESTMENT”
The Indonesia-United Arab Emirates
Comprehensive Economic Partnership
Agreement (IUAE- CEPA) which was
signed in July 2022 will remove or low-
er tariffs on around 94% of the total
lines traded of both goods and services
between the two countries, boosting
trade and investment between the two
longstanding partners.
Why is this trade deal so important?
The IUAE-CEPA will act as Indonesia’s entry
point to the UAE, which is a hub for increas-
ing exports to potential export destination
countries such as the Middle East, Africa,
Central Asia, and South Asia. We predict
that it will enhance the trade balance be-
tween the two countries to USD10Bn in the
next few years.
How will this help Indonesian exporters?
The CEPA provides for the reduction and
exemption of import duties for several Indo-
nesian products to the UAE. This will greatly
benefit exporters to further increase their
exports to the country. From the importer’s
point of view, they can reduce their prices.
It will also attract investors to invest in the
company because exporters clearly already
have a market in the UAE which will only
increase.
How is Indonesia viewed by UAE business
leaders?
Many see Indonesia as a top destination
for business and investment. Accordingly,
I would like to emphasize that it is very im-
portant for them to benefit from the strong
relations built by both governments, which
opens up fantastic opportunities for com-
panies in both countries.
What strengths would you like to project
at the G20?
We have many strengths, such as political
stability, abundant natural resources, a
growing domestic market, improving invest-
ment climate and a rising global profile.
OVERVIEW
Indonesia gears up for
the culmination of the
G20 presidency
This November on the island of Bali, Indonesia will for the first
time in its history hold the joint B20/G20 forums, focussing on
the post-pandemic global recovery.
A “INDONE-
ll eyes will be on Indonesia this No-
vember as it hosts the joint B20/G20
forums at the Bali Nusa Dua Con-
vention Center on the picturesque island
of Bali. The G20, symbolizing the world’s
economic and political power with its mem-
bers representing 80% of the world’s GDP,
75% of global exports, and 60% of the global
population, comes at a pivotal moment in
Indonesia’s history as it seeks to leverage
recent economic successes with its growing
importance in the world. Indonesia is the
world’s eighth largest economy based on
gross domestic product based on purchasing
power parity (GDP PPP), and the G20 forum
will serve as a point of international recog-
nition while also highlighting the country’s
growing role as a representative and spokes-
person for other developing economies.
The focus of the B20/G20 Bali summit
revolves around the theme “Recover To-
gether, Recover Stronger.” Addressing the
aftermath of the COVID-19 pandemic, the
island nation will use the G20 presidency
to plan, promote, and enact a collaborative
global recovery project designed to stimu-
late economic growth after over two years
of struggle with the virus. A further call for
global unity on environmental issues such
as climate change and clean energy tran-
sition will also take priority. The country
is also keen to use the forum to advocate SIA AND
its role as a global bridge builder, exem- ASEAN
plified recently by the fact that in June HAVE ONE
2022, Indonesia’s President Joko was the
first Asian leader to visit both Russia and OF THE
Ukraine in a peace brokering capacity. “In- MOST
donesia and ASEAN have one of the most STABLE
stable politics in the region, despite the
uncertainties of geopolitics,” said Indone- POLITICS
sia’s Coordinating Minister for Economic IN THE
Affairs, H.E. Airlangga Hartarto. “There REGION”
is a momentum to maintain a neutral In-
do-Pacific Region because of its relatively H.E. AIRLANGGA
high economic growth, and Indonesia can HARTARTO
COORDINATING
also bring a philosophical basis, namely
MINISTER FOR
consultation and consensus, to the G20 ECONOMIC AFFAIRS
forum,” he added.
Through a number of working groups,
November’s B20/G20 forum will specif-
ically address three key topics related to
the desire to forge a strong and sustainable
global recovery; the strengthening of the
Global Health Architecture, Digital Trans-
formation, and Energy Transition. With
regard to health, this working group will
ensure that Indonesia continues to take a
lead on ensuring equitable access to COV-

ID-19 vaccines, while arguing for increased
international preparedness and cooper-
ation to address potential future global
health emergencies. The Digital Transfor-
mation stream aims to capitalize on new
ways of working and emerging sectors of
economic growth which have arisen during
the pandemic, while focusing on increasing
digital literacy in developing countries.
Finally, the Energy Transition pillar will
focus on the Indonesian president’s desire
to promote energy transition toward new
and sustainable forms by prioritizing ener-
gy security, accessibility, and affordability,
in order to deal with existing and emerging
climate issues more effectively.
In summary, The B20/G20 Presidency
will serve to position Indonesia at the fore-
front of international focus and attention,
which will in turn highlight the country as
a major location for international invest-
BILATERAL RELATIONS
The signing of the Comprehensive Eco -
nomic Partnership Agreement (IUAE-CE-
PA) in July 2022 between the UAE and
Indonesia by Indonesia’s Trade Minister
H.E Zulfikli Hasan and the Minister of
the UAE Ministry of Economy H.E. Abdul-
lah bin Touq Al-Marri (in the presence of
Indonesian President Joko Widodo and
UAE President His Highness Shaikh Mo-
hammad Bin Zayed Al Nahyan) builds on
the long-standing ties between the two
countries, heralding the beginning of a
new era of increased trade, investment,
and economic cooperation.
Once f ully r atif ied by the end of
2022, the deal will remove trade bar-
riers for a variety of goods and ser vic -
es, with the ultimate goal of increase
Photos: B20
ment. By showcasing Indonesia’s impres-
sive achievements to the world, the forum
represents a starting point for restoring
post-pandemic economic confidence at
home and abroad. November’s joint forum
also presents an opportunity to introduce
INDONESIA IS THE
WORLD’S EIGHTH
LARGEST ECONOMY
BASED ON GROSS
DOMESTIC PRODUCT (PPP)
Indonesia’s rapidly expanding tourism and
manufacturing sectors to a global audience,
thus furthering the country’s economic
and political ascension as a major player
in the ASEAN region.
bilateral trade to USD10Bn by 2030.
At the B20/G20 forum, Indonesia is
keen to build on the momentum of
this agreement by forging even closer
economic ties with the UAE, promot-
ing Indonesian expor ts to the Middle
East, and enticing UAE investors to
the country to develop manufacturing
sectors such as textiles and electric
batter y production.
Q&A MA’RUF AMIN
VICE PRESIDENT OF THE REPUBLIC OF INDONESIA
First elected to the People’s
Re p r e s e n t a t i ve C o u n c i l
in 1971, Ma’ruf Amin has
served as Vice President of
the Republic of Indonesia
since 2019. An influential
academic and Islamic cler-
ic, here he discusses Indone-
sia’s goals for its Presidency
of the G20, relations with
the UAE, and the govern-
ment’s ambitions to expand
sustainable Islamic finance.
What does Indonesia’s Presiden-
cy of the G20/B20 mean for the
nation, and what are the key fo-
cuses of its agenda?
Indonesia’s Presidency is a
historic event for our nation be-
cause this is the first time the
country has held the Presidency
since becoming a member of the
G20 in 1999.
“IN 2021,
INDONESIA
BECAME THE
THIRD-LARGEST
GLOBAL SUKUK
ISSUER”
The Indonesian Presidency
carries the theme “Recover
Together, Recover Stronger,”
with three main pillars: Glob-
al Health Architecture, Dig-
ital-Based Economic Trans-
formation, and Sustainable
Energy Transition. Indonesia
realizes that recovery can only
be achieved if all countries re-
cover and no one is left behind.
In addition, Indonesia’s Presiden-
cy will fight for the aspirations
and interests of developing coun-
tries. We want this historic mo-
ment to produce concrete results
for developing nations.
What mutual benefits will the re-
cently signed Indonesia-United
Arab Emirates Comprehensive
As published in
An FDI Report 3
Economic Partnership Agree-
ment (IUAE-CEPA) bring?
IUAE-CEPA brings benefits to
both countries, specifically in-
creasing market access and
export opportunities for Indone-
sian products, and food industry
support for the UAE.
Within ten years of entry into
force, Indonesia’s exports to the
UAE are projected to increase by
USD844m (+54%). In addition,
Indonesia’s imports from the
UAE are projected to increase
by USD307m (+18%).
One sector in particular provides
new opportunities for investors,
and especially for the develop-
ment of the halal industry, name-
ly the sharia economic sector. As
an economic center in the Middle
East, the UAE is an important
strategic partner for Indonesia to
create better exposure, branding
and competitiveness in the glob-
al sharia market.
What are the Indonesian govern-
ment’s policies with regards to
Islamic finance instruments such
as green sukuk and waqf, and
attracting sustainable finance?
The Indonesian government is
committed to continuing to ad-
vance the Islamic economy, which
includes the halal industrial sec-
tor, sharia financial services, sha-
ria social funds, as well as sharia
business and entrepreneurship.
Since 2018, the government has
balanced the issuance of sukuk
by paying attention to environ-
mental sustainability through
the issuance of green sukuk.
In 2021, Indonesia became the
third-largest global sukuk issuer,
with issuances of USD24Bn, or
23% of the global sukuk market.
As Muslims, we also understand
the importance of waqf for the
economic empowerment of the
people. I actively continue to en-
courage the improvement of the
collection and benefit of waqf, in-
cluding cash waqf. I want waqf to
be directed to be more productive.
4 INDONESIA

B20 targets international investment

Indonesia will use the preceding B20 forum to leverage its position as a leading country for business.
business here,” she added. “Indonesia
wants to show the red carpet by giving
incentive to foreign investors.” Noting
the Sintesa Group’s role in facilitating
foreign investment in the country,
she highlighted the importance of the
B20’s role in offering a space where
Photo: B20
international investors can network
with local Indonesian partners and
forge strong cross-border business
links. “The Sintesa Group was one of
the first to bring foreign partners to
Indonesia. Collaboration has always
been our most important business
model, as it’s good to do business here
with a local partner.”
Indonesia is also keen to spotlight
the investment opportunities that

T
aking place before the main G20
summit on 13-14 November is
the Business 20 (B20). Estab-
lished in 2010, the B20 is among the
most prominent Engagement Groups
in the G20, and acts as the group’s of-
ficial dialogue forum with the global
business community. The B20 is tasked
with formulating policy recommenda-
tions on designated issues, which are
then delivered to the G20 presidency.
The B20 is arguably as important
as the main G20 for Indonesia, says
Shinta Widjaja Kamdani, Chair of
B20 Indonesia and Chief Executive
Officer of the Sintesa Group. “The
government is very serious in want-
ing to drive foreign direct investment
by demonstrating the ease of doing
the future capital city of Nusantara
project (IKN) will bring. Located
in East Kalimantan, Borneo, the
planned city will replace Jakarta,
the national capital since 1945, and
is set to be inaugurated in August
2024. “In the long term, the exist-
ence of IKN is expected to act as an
economic super hub and national
“THE GOVERNMENT economic value chain,” said Indo-
IS VERY SERIOUS IN nesia’s Coordinating Minister for
Economic Affairs, H.E. Airlangga
WANTING TO DRIVE Hartarto. The economic super hub
FOREIGN DIRECT IN- development will be developed in six
strategic economic clusters, includ-
VESTMENT” ing the clean technolog y industry
SHINTA WIDJAJA KAMDANI cluster; integrated pharmacy; sus-
CHAIR OF B20 INDONESIA AND CHIEF EX- tainable agriculture, ecotourism,
ECUTIVE OFFICER OF THE SINTESA GROUP chemical and chemical derivative
“IKN IS EXPECTED TO
ACT AS AN ECONOMIC
SUPER HUB”
H.E. AIRLANGGA HARTARTO
COORDINATING MINISTER FOR ECONOMIC
AFFAIRS
products, and low carbon energ y.
“Relocating IK N to Ka lima nta n
Island and making it an economic
super hub is one strateg y to shift
the share of economic growth and
development from the west to the
east, and international investment
from countries like the UA E will
play a key role,” said the minister.

Indonesia puts trade in the spotlight

Indonesia will use its presidency of the G20 to increase the focus on
international trade.
partners including Australia, New Zea-
land, China, South Korea, India, and
the UAE. “Trade is a very important
vehicle for ASEAN countries, and even
though the complexity of global chal-
lenges has increased, we believe trade
can be part of a worldwide solution,”
said Dr. Djatmiko B. Witjaksono, In-
donesia’s Director General of Inter-
national Trade Negotiations. In this “ATTAINING A FAIR
context, the signing of the IUAE-CEPA AND EQUITABLE
is indicative of the country’s strategy
Photo: shutterstock
of focusing on “continuous investment
CLIMATE FINANCE

A
t the upcoming G20 forum
in Bali, Indonesia will seek to
highlight its reputation as a
trusted global trading partner, build-
ing on recent bilateral trade agreements
including the Comprehensive Economic
Partnership Agreement (IUAE-CEPA),
signed with the UAE in July. The only
member of the G20 located in Southeast
Asia, Indonesia is the region’s largest
economy, with industry (39.7%) and
agriculture (12.8%) accounting for over
half of its economic output. With abun-
dant natural resources to fuel its manu-
facturing and export sectors, Indonesia
enjoys strong trade relationships with
numerous regional and international
partners, with China currently its larg-
est export market.
As a member of the Association of
Southeast Asian Nations (ASEAN),
Indonesia benefits from the Common
Effective Preferential Tariff (CEPT)
scheme, developed by ASEAN Free
Trade Area (AFTA) signatories with
the aim of lowering intra-regional tar-
iffs. CEPT requires members to set
tariffs between zero and five percent,
an agreement which has enabled Indo-
nesia to develop a successful free mar-
ket policy between ASEAN members,
and also to increase trade with regional
flows for economic recovery in the con-
text of job creation through industrial-
ization and other development goals,”
Dr. Witjaksono added.
The topic of sustainable trade will also
take precedence at the G20 summit. The
role the multilateral trading system can
play in strengthening the achievements
of global Sustainable Development Goals
(SDGs) was discussed in June 2022 at the
World Trade Organization’s 12th Minis-
terial Conference in Geneva, with Indo-
nesia, in its position as the current G20
President, a key contributor to the pro-
ceedings. “Attaining a fair and equitable
climate finance scheme to encourage
SCHEME TO ENCOUR-
AGE SUSTAINABLE
INVESTMENT IS VERY
IMPORTANT TO US”
DR. DJATMIKO B. WITJAKSONO
DIRECTOR GENERAL OF INTERNATIONAL
TRADE NEGOTIATIONS, MINISTRY OF
TRADE OF REPUBLIC OF INDONESIA
sustainable investment is very important
to us,” said Dr. Witjaksono. “Natural re-
sources are very limited, and we need to
ensure that we impose systemic stability
in the context of downstream industries
in order to make the right balance.”

LEADERS
Leading the green energy revolution
The G20 Energy Transition Working Group
(ETWG) is expected to produce a blueprint
towards a sustainable global energy transition.
A
t November’s forum in Bali, In-
donesia will take a key role in
directing the global transition
towards green energy and a reduction in
greenhouse emissions. The G20 ETWG
will focus on three priorities; access,
technology, and funding. The forum is
expected to lead to an agreement on how
to accelerate the global energy transition,
with Indonesia keen to stress the role pri-
vate enterprise and investment must play.
“The Indonesian government is
creating an attractive market for in-
vestors, especially in the upstream
sector and solar panels industries,”
said Minister of Energy and Mineral
Resources, H.E. Arifin Tarif. “In ad-
dition, there are also opportunities to
export new renewable energy (NRE)
based electricity, especially from solar
energy, through the ASEAN Power
Grid, a regional power interconnec-
tion to increase the power supply in
the ASEAN regions.”
To take advantage of such invest-
ment, the Indonesian government is
continuously strengthening the regu-
latory framework to ensure a success-
Serving Indonesia’s future financial needs
Bank Central Asia is playing a leading role in promoting growth and innovation in the country’s
banking sector.
F
ounded in 1957, BCA is Indonesia’s
largest privately owned bank.
Serving 31 million customer ac-
counts, with a network of 18,000 ATMs
and 1,242 branches, it is a trusted name
in the country’s financial services sector.
“We mainly focus on our corporate cli-
ents as they are the ones who help SMEs
the most”, said President Director Mr.
Jahja Setiaatmadja. “Banks like BCA help
the corporate and manufacturing sec-
tors, as well as offering key services such
as mortgages and vehicle financing,”
which are seen as vital to the growing
needs of Indonesia’s population.
Key to BCA’s recent success has
been its adoption of digital technol-
ful transition to green energy. More-
over, in 2021 the government brought
in Presidential Regulation Number 98,
which regulates the carbon trading
and tax mechanism. One of the main
“THE INDONESIAN
GOVERNMENT IS
CREATING AN AT-
TRACTIVE MARKET
FOR INVESTORS”
H.E. ARIFIN TARIF
MINISTER OF ENERGY
AND MINERAL RESOURCES
Photo: Unsplash
“WE BELIEVE HUMAN
INTERACTIONS ARE
ESSENTIAL FOR
BANKS”
ogies to better serve clients. “People
are starting to prefer digital over
physical payments,” Setiaatmadja
observed. To meet these needs, BCA
established the MyBCA digital banking
platform, launched the Sakuku app-
based electronic wallet, and developed
QR code-driven peer-to-peer transfer
technology. “Despite this, we still be-
lieve human interactions are essen-
principles of the policy is to impose a
tax on activities that produce carbon,
and provide incentives for greater ef-
ficiency. Indonesia is also accelerating
energy efficiency through investment
schemes such as blended finance, and
raising energy efficiency awareness
among its population via schemes
such as domestic energy efficiency
awards, participation in ASEAN ener-
gy awards, and developing innovative
grassroots campaigns.
Perhaps most importantly, Indo-
nesia possesses an abundance of raw
materials which can be used for man-
ufacturing green energy technology.
Specifically, the country has large
deposits of nickel; an essential min-
tial for banks, because not everyone
is tech-savvy.” To address this, BCA
continues to invest in traditional call
services, and still has more than 25,000
physical employees in Indonesia.
Looking to the future, Setiaatmadja
sees the G20 and B20 summit as the per-
fect opportunity for BCA “to showcase
the growth of the Indonesian economy”
As published in
An FDI Report 5
Photo: PT INDIKA ENERGY TBK
eral for battery production. “Since
Indonesia will accelerate electric ve-
hicle utilization, batteries are in high
demand, but this has to be supported
by sufficient investors,” Tarif notes.
“A South Korean investor has already
built one electric motorcycle factory
with a capacity of 150,000 units per
year, and we hope further investment
from the UAE will come.”
Ultimately, Tarif believes that col-
laboration between G20 countries,
international organizations and inves-
tors will accelerate the achievements
of the global Net Zero Emission target.
“In the end, increasing energy efficien-
cy and reducing greenhouse emissions
is easier to realize together.”
and to make it an attractive prospect for
foreign investment. “We have a stable
customer base in Indonesia, and want
our role to be similar to a broker, finding
the perfect fit for clients and investors.”
With Indonesia’s president keen to de-
velop hydrogen, gas, and wind energy
technologies, there will be ample oppor-
tunities for international investors.
6 INDONESIA
FOCUS ON VALE
FEBRIANY EDDY
PRESIDENT DIRECTOR, PT VALE INDONESIA TBK
PT Vale is a leading integrated nickel
mining and processing company with
a rich 54-year history of sustainable
production and economic develop-
ment in Indonesia. A leading player
in the industry, the company produc-
es 75,000 tons of nickel in matte
per year, supplying 3 per cent of the
world’s nickel demand. Vale currently
has operations in Sorowako, South
Sulawesi and greenfield projects
in Morowali, Central Sulawesi, and
Pomalaa, Southeast Sulawesi.
One of Vale’s strategic pillars is the
incorporation of sustainability initia-
tives directly into its business model.
It does this by building economic,
social and environmental legacies to
mitigate the impact of its operations.
The company operates with high eth-
ical standards and has a transpar-
ent management structure. They are
active participants in Indonesia’s
environmental, biodiversity and sus-
tainable development programmes.
Vale also seeks to incorporate the
latest technological innovations into
its processes and operations, for ex-
ample artificial intelligence and ad-
vanced computational analysis, to
ensure growth and competitiveness
in the domestic and international
markets.
During the B20/G20, all eyes will be
on Indonesia. What does this mean for
your company?
The Sustainable Energy Transition is
one of three priority issues during In-
donesia’s host year of the G20. This
topic exactly aligns with what PT Vale
has been advocating for a long time
now, that critical minerals for glob -
al energy transition must come from
sustainable mining processes. With In-
donesia having the Presidency for the
B20/G20 this year, it assists us and
our industr y in conveying this impor-
tant message. This mission is aligned
with one of the B20 Energy, Sustain-
ability, and Climate Task Force Policy
Actions, which is to ensure sustainable
practices for mining of essential min-
erals for energy technologies.
Why are essential minerals such as nick-
el key to carbon-cutting technologies?
Energy transition needs nickel and other
essential minerals like cobalt, lithium,
copper, and aluminum. Nickel is a key
component in clean energy technolo-
gies, such as electric vehicles, solar
panels, and wind and geothermal power.
It is no wonder then that global nickel
demand is forecasted to almost double
within a decade. That is an unprece-
dented surge, which makes Indonesia,
who owns 22% of the world’s nickel re-
serves, a crucial supplier and processor
of this critical mineral.
How can your expertise in clean mining
techniques attract foreign investment?
For decades PT Vale has been operating
with the idea of sustainable mining prac-
tices uppermost in our mind, and we
have already built a strong reputation
as being one of the most responsible
miners in Indonesia, if not in the world.
Indonesia will attract a lot of invest-
ment because of the high demand for
nickel, but as we are advocating for
sustainable mining and processing of
critical minerals, the investors we take
on should be the right ones. This is be-
cause the nickel used for decarbonizing
the planet should come from a sustain-
able process. International investors
are keen to see what we can do, and
I also want Indonesia to flourish from
this opportunity.
“SUSTAINABILITY IS
PART OF WHO WE ARE
AND WHAT WE DO”
Global investors are seeking transpar-
ent partners that are implementing
ESG policies successfully. How are you
addressing this?
Sustainability is par t of who we are
and what we do. Already, our Sorowako
operation has the lowest carbon output
among other RKEF processing facili-
ties in Indonesia, and we are currently
the only nickel mining and processing
company to receive the prestigious
Green Proper award as recognition for
our environmental management from
the Indonesian Ministry of Environment
and Forestry.
Even so, we still have a goal to reduce
scope one and two emissions by 33%
by 2030, and achieve net zero by 2050.
We have initiated, assessed, and imple-
mented several other initiatives to meet
the target. These include converting to
electric boilers, trials of EV and electric
haul vehicles truck in our mines, HS-
FO-LNG conversions for our dryers and
kilns, and the adoption of solar power.
How do you fulfil your obligations to
the communities in which you operate?
As we clear new areas for mining, we
simultaneously rehabilitate previously
mined areas with specially selected flo-
ra. Each year we reclaim around 280-
300 hectares of land.
In term of social programs, with the
Government and community we build
and agree upon a long-term roadmap
of achieving sustainable development
goals at village level. Our end goal here
LEADERS
is to ensure a thriving and independ-
ent community post mining. We do this
through initiatives such as our organic
rice program (SRI Organik), which as-
sists rice farmers to convert to organic
rice farming that is more sustainable
and offers better economics for them.
What are the most pressing issues
you would like to see discussed at the
G20/B20?
We have to work together to tackle cli-
mate change because our planet doesn’t
have much time left. There is no silver
bullet for the climate change issue, and
we should collaborate to create a better
world instead of competing. It might
sound naive coming from a mining com-
pany, but I want our children to live in
a beautiful world. Precious resources
“THE NICKEL USED
TO DECARBONIZE
THE PLANET
SHOULD COME
FROM SUSTAINABLE
MEANS”
such as nickel are abundant in Indone-
sia, and we should focus on the right
and sustainable investment. It might
be hard to believe, but mining can be
environmentally sustainable depending
on how companies lessen their carbon
footprint while bringing out the maximum
benefit of the product. The nickel used
to decarbonize the planet should come
from sustainable means. The aim is to
be an Indonesia partner of choice as a
sustainable miner that brings net posi-
tive legacy to our stakeholders, primarily
within the community we operate.
 As published in
LEADERS An FDI Report 7

INTERVIEW

M. ARSJAD RASJID P.M., PRESIDENT DIRECTOR OF PT INDIKA ENERGY TBK

Photo: PT INDIKA ENERGY TBK

Indonesian energy giant charts a path to

a sustainable future
With the transition a joint venture company, Empat Mitra prevailing international regulations. digital transformation. We are looking

to renewable energy
Indika Tenaga Surya, to develop renew-
ables – initially solar, but also a com-
one of the key pillars bination of solar and wind. Together,
we have committed USD$500 million
of Indonesia’s G20 over the next four years.
Presidency, Indika In addition, we have signed an MOU
with Taiwan’s Foxconn and others to
Energy, the country’s explore and invest in electric vehicle
leading diversified and battery manufacturing in Indone-
sia. We are also looking at wood pel-
investment company, lets, another way to reduce carbon
is at the forefront of use, and we are working on a national
project involving biomass. So we are
efforts to remodel very much about action, not just talk.
On the social side, we have the Indika
Foundation, which focuses on national
character building and Indonesian val-
ues. And on the environmental side,
we were one of the first Indonesian
companies to commit to the net-zero
target; we have disclosure and sus-
tainability reports and have won sev-
eral awards.
“WE WERE ONE
OF THE FIRST
INDONESIAN
at two things: one is renewable solar
energy for the capital city. There must
be a public-private partnership, and I
think we can be part of that develop-
ment. There will be hydro-solar energy
in this new city, and we can participate
at least on the solar side. Secondly, the
new city is green, and with innovation
in mind, its industry should be based
on digitalization. There is also an op-
portunity in forestry because most of
our operations are in East Kalimantan,
and our local knowledge of that area
is ver y good. We also have an EPC

the nation’s energy Do you see scope for partnerships COMPANIES TO

supply.
To what extent is Indika Energy sup-
porting the government’s sustaina-
bility efforts?
We want to be among the leaders of the
energy transition, and Indika Energy is
already playing various roles in the pro-
cess. First, we have committed to net-zero
emissions by 2050; with that commitment
comes the issue of how we are moving
away from coal. We have already divested
two coal-related companies.
We have a partnership with the world’s
largest social impact organization, the
Rise Fund, with whom we have created
with foreign investors on some of
these initiatives?
Yes, we are very open to the idea. If
Gulf companies want to join us in this
energy transition, they are ver y wel-
come. I have been to Abu Dhabi often
to see the possibility of working with
UAE counterparts, and I have spoken
with the UAE Minister of Energy to dis-
cuss cooperation. We believe in collab-
oration, innovation, and capital, and
we bring local knowledge to the table.
What is Indika Energy’s Environmental,
Social & Governance (ESG) strategy?
ESG is part of our value system; for us,
it is not just a motto or a slogan. On
the governance side, we comply with
COMMIT TO THE
NET-ZERO TARGET”
Our strategy is about moving towards
sustainable investments. The energy
transition is not just about transform-
ing energy itself but also about en -
ergizing the people, the country, and
the planet. Thus, we reformulated our
purpose last year: Energizing Indone-
sia for a Sustainable Future.
What role is Indika Energy playing in the
development of Nusantara Capital City?
Indika Energy’s strategy moving forward
has changed from energy to various
sectors including renewable energy and
engineering company that could play
a role in assisting the development
of Nusantara.
What are Indika Energy’s main priori-
ties in supporting B20 Business, the
official G20 dialogue forum with the
global business community?
The world is facing challenges such
as inflation and high energy and food
costs, which are critical issues that
must be solved. Let’s use our values
of unity and diversity; I’m reaching
out to the business communities of
the B20 countries and beyond, urg-
ing them to speak to their respective
leaders because this is a critical time,
and perhaps the B20 is the only plat-
form where developing and emerging
countries can meet to discuss issues.
8 INDONESIA
FOCUS ON BUKIT ASAM
ARSAL ISMAIL
PRESIDENT DIRECTOR, BUKIT ASAM
State-owned Bukit Asam (PTBA) is
one of Indonesia’s largest coal mining
companies, producing more than 30m
tons in 2021 as world demand spiked
in the wake of the Covid-19 pandemic.
Currently engaged in business transfor-
mation in pursuit of its vision that pairs
becoming a world-class energy company
with care for the environment, PTBA has
diversified its operations to include re-
newable energy and gasification initia-
tives, as well as taking significant steps
to decarbonize its existing processes.
How is PTBA supporting the Indone-
sian government in its drive towards
sustainability?
PTBA has committed to transforming its
business to adopt sustainable practic-
F O C U S O N P T. C E R I A N U G R A H A I N D O TA M A
DERIAN SAKMIWATA
PRESIDENT DIRECTOR,
PT. CERIA NUGRAHA INDOTAMA
As one of Indonesia’s leading nickel
and cobalt mining companies – key
elements in the manufacture of elec-
tric vehicle batteries – Ceria Nugra-
ha Indotama is an integral player in
Indonesia’s drive to become a global
hub for electric vehicle and battery
production. Committed to sustaina-
ble practices and technological inno-
vation, Ceria is investing heavily in
refining techniques that will help it
meet the growing demand for nickel
and cobalt worldwide, accelerating
the green energy transition.
How did you come up with the idea of
sustainable mining?
The idea came about af ter thinking
es. As one of the state-owned enterpris-
es, Indonesia’s G20 Presidency, which
puts energy transition and sustainabil-
ity issues in the spotlight, has been a
key moment for us to realign our vision
of business transformation. As much
as we believe that coal will still play a
pivotal role in the country’s energy mix,
we are aware of the need to accelerate
our sustainability transformation.
We have been playing a pivotal role in
helping the country to secure its energy
needs. We have a large domestic mar-
ket to serve. As the nation’s electricity
demand is projected to increase, we
believe this is a huge asset for us. We
have also expanded our business into
renewable energy and gasification.
We also encourage innovation to cre-
ate carbon capture, utilization, and
storage (CCUS) at an affordable cost.
With technological innovation, emis-
sions from coal can be reduced so
that the 2060 net-zero emission target
can still be met. We believe the steps
we are taking will help us to achieve
our vision of becoming a world- class
energy company.
What changes have the company en-
acted to reduce its carbon footprint?
We have diversified our business by
expanding into renewable energy and
other downstreaming projects to ensure
of what would be sustainable for the
business and the environment moving
forward. We are blessed with a mining
concession that has nickel and cobalt,
and if we mine the minerals without
thinking of the future, then we might
not be here in five to six years.
Initially, we were only focused on min-
ing nickel and building a factor y for
stainless steel through a technology
called Rotar y Kiln Electric Furnace
(RKEF). However, vehicle manufactur-
ers like Tesla, Hyundai, and Kia are
now racing to produce their electric
vehicles after developments in the use
of cobalt. Now, we aim to become a
two-kind factory for minerals for stain-
less steel through the use of RKEF, and
for batteries through High- Pressure
Acid Leach (HPAL).
Where does sustainability factor into
your operations?
The energy for our mine, and nickel and
cobalt projects comes from PT PLN, a
state-owned electricity company that
gets its power from hydroelectricity. It
might be more expensive, but we want
a greener future. Glencore, one of our
clients, specifically asked what energy
source we use, which shows how impor-
tant going green is.
Although we provide nickel and cobalt
components for battery manufacturers,
we are also open to working with other
that we are not excessively reliant on
coal. In addition, we have been using
electric vehicles for the past few years,
which has reduced fuel usage and
carbon emissions in our operations.
Switching to electric shovels and haul
dump hybrids for mining operations has
reduced emissions by an average of
17,000 tons of CO2 per year.
“WE HAVE
DIVERSIFIED OUR
BUSINESS BY
EXPANDING INTO
RENEWABLE ENERGY”
We will further explore not only elec-
trification of our mining vehicles but
also integrating other initiatives to help
decarbonize our operations.
What is your current approach to Envi-
ronmental, Social & Governance (ESG)
initiatives?
ESG is incredibly important. We believe
that it can add value to the company.
One innovative project we have under-
taken is the development of solar irri-
gation pumps in rural villages in several
provinces across Sumatra, as part of
our community development program.
companies who want to delve into green
energy and battery production.
What makes this a good time to in-
vest in Indonesia and the nickel mining
sector?
Indonesia is rich in natural resources
and we are committed to sourcing clean-
er nickel for the world’s needs. We have
the resources needed for the energy
transition – 30% of the world’s nickel
reserves are in Indonesia. Many are not
yet aware that the energy transition en-
courages the acceleration of the battery
industry for use in electric vehicles that
are more environmentally friendly.
“WE ARE COMMITTED
TO SOURCING
CLEANER NICKEL
FOR THE WORLD’S
NEEDS”
How can investors be part of your com-
pany’s growth story?
We are opening our doors to financ-
ers to further boost our projects and
upgrade our equipment. We are also
looking for partners who could help us
grow the business.
As a player in the nickel and batter y
industr y, we have many advantages
LEADERS
This has proven to help farmers in
these rural villages increase produc-
tivity, particularly in the dry season.
Since 2014, PTBA has also run the
Bamboo for Life Program in the Tara-
han Port area; bamboo planting is car-
ried out to restore arid land, and the
program also benefits the community.
In addition to skewers, bamboo is pro-
cessed into bamboo vinegar and vari-
ous derivative products. The Bamboo
for Life program has seen PTBA receive
the Gold PROPER Award in both 2020
and 2021, reflecting our company’s
commitment to the environment.
What is your message to internation-
al investors considering investing in
Indonesia?
Indonesia is growing fast and our mar-
ket is huge – we believe this is the kind
of opportunity no investor can easily let
go. This is truly a golden moment for
any investor wishing to invest – Indo-
nesia is the right place.
While PTBA is one of the largest coal
producers in Indonesia, we are cur-
rently transforming to become a more
sustainable company in the future.
That means there is still space to
grow. We believe this also makes for
an appealing opportunity for investors,
and we welcome any potential future
cooperation.
that make us an ideal strategic busi-
ness par tner for the UAE, which we
believe suppor ts the tr ansition to
clean energy.
What projects would you look to col-
laborate on with international inves-
tors and why should investors work
with Ceria?
Ceria holds and operates its mining
concession with a total area of 6,785
hectares. We have identified a vast
nickel laterite deposit totalling more
than 500 million tons of ore body that
has the potential to supply our nickel
RKEF smelter and HPAL for more than
20 years.
We welcome collaboration with inves-
tors on our RKEF and HPAL projects;
combining Ceria’s investment and mar-
ket demand for cleaner nickel will result
in sustainability in Ceria’s business pro-
cess, providing the world with cleaner
nickel at a competitive production cost.
What is your final message to business
leaders, investors, and government
officials ahead of the Bali G20/B20?
We want these leaders and investors
to know that we are a nickel and cobalt
mining company that prioritizes efficien-
cy and sustainable practices. These
traits are vital as sustainability and the
transition to green energy will likely be
at the forefront of both summits.
10 INDONESIA
INTERVIEW
ALASTAIR MCLEOD, DIRECTOR AND CFO, PT BAYAN RESOURCES TBK
Serving the people, respecting nature,
minimizing the impact
The Bayan Group is an innovator in the Indonesian coal mining industry. They seek to promote a
high standard of corporate social responsibility which focusses on employee welfare, a high standard
of health and safety, sustainable environmental policies, and responsible community development.
To what extent has Bayan grown in
recent years?
We are a company that continues to go
from strength to strength. For example,
our output started with a few million tonnes
per annum in the nineties, and now our
production is up to 40 million tonnes. It has
been a little bit of a ride, which at the same
time, you could say, has coincided with
Indonesia’s rapid development and growth.
Why would you recommend Indonesia
as an investment destination?
If you look at several historical reports,
Indonesia has always had the propensi-
ty to be an enormous opportunity, but in-
vestors have often been dissuaded from
doing so. So it’s really all about turning
that potential into a reality. Indonesia is
a growing Asian economy. It’s got robust
GDP growth and a rapidly expanding
middle class who want access to new
products, new houses and cars. There’s
a massive growing domestic market that
is, in certain cases, more significant
than some neighboring countries. Indo-
nesia also has natural resources that
can be produced, refined and exported.
It’s a great country full of potential.
One of the key pillars of the Indonesian
G20 is ‘Ensuring sustainable and inclu-
sive growth.’ What critical projects or
initiatives are you implementing that
support your ESG responsibilities?
ESG is something that has always been a
core part of Bayan’s philosophy. Most of
our mining sites operate in remote areas.
We support these rural communities by
building telecommunications and pow-
er infrastructure, which are then used
by the villagers. We build the schools,
fund scholarships and books, improve
the roads, community halls, and places
of worship. Economically, we encourage
sustainable businesses that can work
with us and grow with us to provide fruit
and vegetables and labor. All of our mine
sites and our subcontractors have to em-
ploy 30% of the local population to ensure
that these people are also benefiting from
the development of our locations. This is
how we ensure we have a harmonious
relationship with the local population.
The transition to renewable energy is an-
other key G20 theme. How is the Indone-
sian coal mining industry playing its part?
Clean energy from coal initiatives such
as Dimethyl Ether from Coal (DME) are a
hot topic, and we’re looking at the pos-
sibilities to go that way. The Indonesian
government is encouraging innovation
through tax breaks and investment in-
centives and there’s been a number of
those projects that have been started
on paper. Indonesia has massive coal
reserves in Sumatra and Kalimantan.
“ESG IS SOMETHING
THAT HAS ALWAYS
BEEN A CORE
PART OF BAYAN’S
PHILOSOPHY”
Now, with the likelihood that the world
is moving away from coal, and eventually
gas and oil at a later stage, I would sug-
gest it does create the opportunity that
there’s going to be excess coal reserves
that remain. These reserves could po-
tentially be monetized for the benefit of
Indonesia through gasification or the
production of ethanol and methanol,
which will continue to be utilized long
LEADERS
after thermal coal is phased out of the
power industry. I believe that investment
in DME, ethanol and/or methanol would
represent the best opportunities for
collaboration with Middle East investors
looking to invest into Indonesia.
As a main sponsor of the B20 Bali
Summit, what does this mean for your
company?
It allows our company to be part of the
new realm of FDI in terms of what In-
donesia can offer. It also allows us to
support the government in portraying
Indonesia as a welcoming destination
for FDI. We’ve worked and operated
within Indonesia, and perhaps we can
share knowledge and experiences that
would allay some potential investor
concerns.
 As published in
LEADERS An FDI Report 11

Indonesia’s leading halal cosmetics brand

celebrates its recent successes
Paragon Technology and Innovation is building a global network in both research and business
development, and plans to collaborate with the G20/B20 platform to enable further growth.
MRS. NURHAYATI SUBAKAT
FOUNDER AND PRESIDENT
COMMISSIONER, PARAGON
TECHNOLOGY AND INNOVATION
Mrs. Nurhayati Subakat recently won
the Women Entrepreneur category at
the 2019 ASEAN Business Awards.
Sub brand Wardah was recently dis-
cussed in the Harvard Business Re-
view (2019), and they are the only
Indonesian brand recorded as having
the fastest growth by Euromonitor in
2014 to 2015 and 2016 to 2017 (BBG).
Amazingly, for a company this suc-
cessful, Paragon’s meteoric growth
is driven by a team of which 80% are
still only under 35 years old.
The key to Paragon’s success has
“THE SPEED
culture. Finally, Process represents
the company’s end-to-end business
operations, agile ways of working,
and optimal use of technology.
A key player in global cosmetics re-
search, the Paragon research center
is the largest of its kind in Indonesia,
and has collaborated with local and
global experts as well as academics
at universities. “What is impressive
for us is that the speed of cosmetic Indonesia’s Vice President visits the Paragon Corp
Research Center to discuss Halal Innovation
innovation in Indonesia is not inferi-
ported the International Federation
of Societies of Cosmetics Chemists
(IFSCC ) Congress, and the company
utilizes the latest digital technologies
in many ways, including digitizing not

P
aragon is an Indonesian beau-
ty company whose purpose
is to create a greater good
for society through innovation. The
company is a leader in the Indonesian
cosmetics industry, with the biggest
beauty decorative market share in
Indonesia (Nielsen Data). Paragon’s
brands, including Wardah, Make Over,
Emina, and Kahf, domestically take
the number one position in make-up
sales, number two for female face care,
and are also a top performer in the
male face care category.
A longside impressive sales f ig-
ures, the company has also gained a
plethora of awards and recognition.
As well as receiving the Indonesia
Halal Industry Award in 2021, CEO
OF COSMETIC
INNOVATION IN
INDONESIA IS NOT
INFERIOR TO THAT
OF OVERSEAS”
been its corporate mantra of “Pur-
pose, People, Process.” With Pur-
pose, everything Paragon does starts
with the goal of being able to provide
the widest possible benefits for the
community and environment. Re-
garding People, Paragon develops
their human resources through the
establishment of an effective or-
ganizational design, leadership de-
velopment strategy, and corporate
MUA Disability Training by Paragon Corp
in collaboration with Tough Women
or to that of overseas,” says Paragon
Technology and Innovation’s Founder
& President Commissioner, Mrs. Nur-
hayati Subakat. Paragon has also sup-
just their downstream (sales) stream,
but also their entire systems from pro-
duction to customer support.
Looking to the B20/G20 forums
to leverage its success, Paragon is
keen to present Indonesia as a coun-
try at the cutting edge of cosmetics
innovation. Further, with the recent
Indonesia-United A rab Emirates
Comprehensive Economic Partner-
ship Agreement (IUAE-CEPA), the
company will take advantage of this
momentum, both in terms of pro-
curement of raw materials and busi-
ness development, in order to carry
out various strategic collaborations
w ith international investors and
partners to strengthen its business
network both at home and abroad.

#InnovationForTheGreaterGood
Paragon Corp is a holding company from Indo-
nesia that started with providing beauty prod-
ucts such as Wardah, Make Over, Emina, Kahf
and more innovative products. We are leading
the cosmetics industry in Indonesia and now
expanding our business in distribution.

We see our business performance through

how much “Kebermanfaatan” that we create.
With our values, Paragon is committed to
contributing to the growth and strengthen-
ing of the Indonesian economy as well as
business development globally in order to
create sustainable goodness for society and
the environment.

www.paragon-innovation.com
ParagonCorp @paragon.id