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Geoeconomics, Not Geopolitics, Will Drive I2U2 Alliance

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Geoeconomics, Not Geopolitics, Will Drive I2U2 Alliance
US President Joe Biden (L) is welcomed by Israeli Prime Minister Yair Lapid (R) in Tel Aviv on 13 July 2022 [Israeli Government Press Office/Anadolu Agency]

When US President Joe Biden sat down next to Israeli Prime Minister Yair Lapid in front of a large screen in a Jerusalem hotel last month, it appeared as if the usual post-pandemic video conference was about to unfold. But on the other end of the video call were two more world leaders, President Mohamed bin Zayed from the United Arab Emirates and Indian Prime Minister Narendra Modi. Together they launched a new multilateral alliance that crossed traditional, regional and geopolitical boundaries.

Named the I2U2 – Israel and India as the two I’s, the US and the UAE as the two U’s – the grouping reflects a new trend toward transregional alliances. Focused on goals from security to economics, these alliances bypass the post-World War II institutional architecture. The most prominent are the security alliances like the Quad – the US, Australia, India, and Japan with shared interests in the Indo-Pacific region. Or, the more recent AUKUS – Australia, the UK, and the US – pledging broad security and defense cooperation with an eye toward China.

A few of these groupings already involve Middle East states. The East Mediterranean Gas Forum, for example, links Cyprus, Egypt, France, Greece, Israel, Italy, Jordan, and Palestine. The Negev Forum joins together Bahrain, Egypt, Israel, Morocco, the UAE, and the US. Then, there is, of course, the 2020 Abraham Accords that normalized ties between Israel and Arab states comprising the UAE, Bahrain, Sudan and Morocco. Since then, UAE-Israel commercial ties have exploded with two-way trade hitting $1 billion in the first quarter of 2022.

Stretching from the Mediterranean Sea to the Arabian Sea and the Indian Ocean, the I2U2 alliance was born amid the winds of change swirling with the Abraham Accords, the US-China rivalry, and the global realization brought about by the pandemic that the most intractable problems, from food insecurity to stunted economic growth, require global solutions.

It would be tempting to see the I2U2 grouping solely part of the larger US-China tensions, but that would miss the mark. In fact, the I2U2 group – much like other groupings recently announced – reflects the institutionalization of a mostly economic alliance that was already forming.

Consider the trade ties among the member states. By my calculations, based on 2021 IMF figures, trade among the four nations clocks in at nearly $400 billion. Thriving trade corridors already exist between the UAE and India, as well as between the US and Israel. India tops the list as the biggest trader with the other three countries, at $188 billion, heavily weighted to the US and the UAE. The United States comes in second with some $167 billion in trade with the other states, a figure with much room to grow given the US’s roughly $5 trillion trade profile. As for the UAE, its trade relations with India are deep and historic, and its trade ties with Israel are growing fast. Israel still has significant room to boost trade with both the UAE and India.

The UAE-India economic partnership can serve as the bedrock of this new group. The UAE, a small country of some 10 million people, is India’s number two export destination, with some $25 billion of goods flowing from the South Asian giant to the Gulf Arab state. On the UAE side, India is the Emirates’ number one export destination, with some $43 billion of exports.

UAE airports have also become India’s gateway to the world – a key primary destination and also connecting hub for travelers. Before COVID-19, one-third of all international flights that landed in India emanated from the UAE.

The UAE has also been a magnet for Indian professionals and workers. All told, some $15 billion of remittances flowed from the UAE to India in the 2020-21 financial year. The UAE and India recently signed an ambitious free trade agreement that seeks to double down on their growing commercial ties.

So, when the first I2U2 meeting announced an ambitious food security initiative in which the UAE would invest $2 billion to develop a series of food parks across India with American and Israeli assistance to tackle global food insecurity, what may have seemed like a breakthrough project was actually repackaged from earlier agreements between India and the UAE.

The Israel-India relationship has also been growing over the past decade. Israel is a major arms supplier to India, and Israeli companies have been widely engaged in water management issues to boost India’s agriculture sector. According to IMF figures, India clocks in as Israel’s third largest export destination. More recently, an Indian firm was awarded the contract to manage a key terminal at Israel’s Haifa Port.

For US policy-makers, the I2U2 presents a unique opportunity. The other three states have demonstrated either historic trade, technology, and investment ties (India and the UAE) or fast-growing ties (Israel and India, Israel and the UAE). Clearly, all three are motivated to accelerate those ties. But all four states have different risk profiles on how they see the world, whether it relates to China or Iran or Russia’s war in Ukraine. The enthusiasm and unanimity of the I2U2 today would likely grind to a halt if Washington sought to use the group toward geopolitical ends. There are other venues for that.

On the other hand, if Washington and other member state policy-makers see the grouping as a way to contribute, bolster and accelerate already existing commercial cooperation among the member states while adding government heft to the process, the I2U2 would have a positive future. It may even have other countries knocking on its doors for membership.

Syndication Burea___________________

Afshin Molavi is a senior fellow at the Foreign Policy Institute of the Johns Hopkins School of Advanced International Studies and editor and founder of the Emerging World newsletter. Twitter: @AfshinMolavi

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PT Rig Tenders Indonesia Tbk Sustains Positive Performance Growth Until June 30, 2023

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PT Rig Tenders Indonesia Tbk Sustains Positive Performance Growth Until June 30, 2023
Photo: public presentation carried out by the Director of PT Rig Tenders Indonesia Tbk, Mr. Iriawan Hartana, in Jakarta on November 23 2023. (Safa/infoemiten.com)

Telegraf – PT Rig Tenders Indonesia Tbk (RIGS) continues to register positive performance growth until June 30, 2023.

RIGS successfully garnered a profit of IDR 62.51 billion, a 74.58% increase from the same period the previous year, amounting to IDR 35.80 billion.

According to the financial report, the company’s revenue also grew by 10.44% to reach IDR 341.70 billion, up from the previous IDR 309.37 billion.

“Director of RIGS, Mr. Iriawan Hartana, conveyed this information during a public presentation in Jakarta on November 23, 2023.”

“The company will continue to strive to strengthen its position in the national shipping industry,” said Mr. Iriawan.

He added that the company will continue to develop services that meet market needs while maintaining the distinctive features of the company.

“The company will also continue to explore the possibility of engaging in strategic alliances that benefit our working partners,” added Mr. Iriawan Hartana.

As for the work program in 2023, the company has outlined several initiatives:

  1. Changing the ownership status of the company’s shares from Foreign Direct Investment (PMA) to Domestic Direct Investment (PMDN) after the share acquisition by PT Surya Indah Muara Pantai.
  2. Changing the currency in the financial statements from USD to IDR starting from July 2022.
  3. Changing the ownership structure of the subsidiary Grundtvig Marine, namely PT Batuah Abadi Lines, to directly become a subsidiary of PT Rig Tenders Indonesia, Tbk.
  4. Implementing sustainable Corporate Social Responsibility (CSR) programs.

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OJK Holds Discussion and Socialization on Fulfillment of WPPE, WPEE, WMI, WAPERD Licensing Obligations

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OJK Holds Discussion and Socialization on Fulfillment of WPPE, WPEE, WMI, WAPERD Licensing Obligations
Photo: Naomi Saulina Rentaria Rambe as Senior Analyst Deputy Director of Licensing for Individuals, Supporting Professionals and Capital Market Supporting Institutions 1 (Sitting) and, Devy Arveida as Analyst Deputy Director of Licensing for Individuals, Supporting Professionals and Capital Market Supporting Institutions 1 (Standing). (Doc.Ist)

Telegraf – The Financial Services Authority (OJK) has released the latest data as of 07 November 2023 at the Discussion & Socialization event on Fulfillment of WPPE, WPEE, WMI, WAPERD Licensing Obligations.

This meeting took place on November 8 2023 at the OJK Mataram building, NTB, with the aim of providing a better understanding to permit holders and prospective permit holders.

The main resource person came from the OJK Capital Market Licensing Directorate.

Naomi Saulina Rentaria Rambe, Senior Analyst Deputy Director of Individual Licensing, Supporting Professionals and Capital Market Supporting Institutions 1.

Devy Arveida, Analyst Deputy Director of Individual Licensing, Supporting Professionals and Capital Market Supporting Institutions 1.

Also present were important figures such as Umar Hidayat, Deputy Head of the NTB OJK Office, GB Ngurah Putra Sandiana, Head of the NTB BEI Representative Office, and Lucky Hisar Manurung, Chair of the Bali Nusa Raya PROPAMI Region, along with license holders from the banking, capital markets and universities in NTB.

source: ojk data

source: ojk data

In the context of the growth of the capital markets sector, OJK has issued a series of regulations, including;

  • OJK Regulation Number 31/POJK.04/2018 concerning Licensing of Investment Manager Representatives,
  • OJK Regulation Number 17/POJK.04/2019 concerning Licensing of Mutual Fund Securities Selling Agent Representatives, and
  • OJK Regulation Number 20/POJK.04/2018 concerning Licensing of Underwriter Representatives and Securities Broker-Dealer Representatives.
  • OJK Regulation Number 22/POJK.04/2016 concerning Licensing Segmentation of Securities Broker-Dealer Representatives

The General Chair of PROPAMI, NS Aji Martono, commented on this development, stating that licensing for capital market players is a crucial step to ensure the integrity of the capital market and provide legal certainty and protection to investors.

OJK emphasizes the importance of licensing for various roles in the capital market, such as WMI (Deputy Investment Manager), WAPERD (Representative Mutual Fund Securities Selling Agent), and WPPE (Deputy Underwriter).

License holders must meet strict requirements, including certification of expertise and maintaining moral integrity.

The General Chair of PROPAMI, NS Aji Martono

The General Chair of PROPAMI, NS Aji Martono

In addition, permit holders are required to work for financial institutions in Indonesia and may not work for more than one securities company or other financial services institution.

All work activities must be reported to the OJK.

OJK provides a platform, namely Sprint (Individual Person Licensing System), as the main means for applying for new permits or extending permits.

Tutorials on YouTube OJK are also provided to make the licensing process easier.

The importance of fulfilling licensing obligations is the main key in ensuring integrity and security in the Indonesian capital market sector.

The permit holder’s commitment to comply with statutory regulations is an important basis for maintaining the credibility of the capital market in the eyes of investors.

It is hoped that strict regulations will strengthen and develop the Indonesian capital market in the future.

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Legit Group Secures Rp 205.3 Billion in Series A Funding for F&B Business Expansion

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Legit Group Secures Rp 205.3 Billion in Series A Funding for F&B Business Expansion
(Left-Right) Monica Evanti Andriani, CMO &Co-founder; Felix Nugroho Group CTO; Cendyarani, Strategic Advisor; Juliana Thamrin, COO; Bram Hendranata, Co-founder & Chairman of Legit Group.

TELEGRAF – Legit Group, a multi-brand cloud kitchen conceptor and operator, has announced the success of its series A funding round, raising a total of US$13.7 million (IDR 205.3 billion) from several investors. The funding was led by MDI Ventures, the venture capital arm of PT Telkom Indonesia Tbk, and followed by Sinar Mas Digital Ventures (SMDV), East Ventures, and Winter Capital. In 2021, Legit Group also successfully raised seed funding worth US$3 million (IDR 43 billion) from East Ventures and AC Ventures, JAKARTA, TUESDAY (11 APRIL 2023).

Founded in 2021, Legit Group currently operates four well-known brands, including Pastaria, Sei’Tan, Sek Fan, and Ryujin, located in over 30 locations in Jabodetabek. Interestingly, Legit Group’s brands do not have any offline locations, but operate using a cloud business model.

This new funding adds optimism to Legit Group to dominate the market through the right marketing strategy in the F&B industry. This confidence is supported by the strong traction the company has gained since the initial funding round, with sales reaching about three times in one month, and launching a new brand.

Bram Hendrata, Chairman of Legit Group said, “We are excited to have a strong group of investors to support us in creating a brand that carries the vision of ‘Food for Everyone’. Through the funding obtained from MDI Ventures, this can strengthen Legit Group’s commitment to bringing more food to various places, while continuing to innovate and improve the technology we have to achieve more efficient operating systems,” said Bram, who has been a veteran in the F&B industry for 15 years.

Currently, Legit Group’s business sector is rapidly growing. While most regular cloud kitchen business owners focus on improving their ability to serve more consumers in new areas, Legit Group has seen the potential for new generation F&B technology that focuses more on developing F&B brands by applying technology to maximize profits. Therefore, Legit Group believes that this focus will provide a competitive advantage in the cloud kitchen market.

Donald Wihardja, CEO of MDI Ventures said, “Legit Group’s founders’ experience, who have succeeded in the F&B business for 15 years, as well as their ability to develop innovative and effective products and marketing strategies, make MDI Ventures more confident that our support as investors will help strengthen their position in the F&B industry and accelerate their business growth. This collaboration is expected to create positive synergy and greater success for both parties. This investment is also an effort by MDI Ventures to provide a positive social impact on the growth of the agriculture sector in Indonesia.”

Amidst the macroeconomic conditions that often demand startup businesses to remain profitable, Legit Group has set its top priority to achieve economic balance while continuing to strive for a healthy economic unit. To achieve this goal, Legit Group has announced its plan to expand in 2023, targeting Jabodetabek and other cities that have great potential for delivery market, after 95% of Legit Group’s outlets were previously spread across several locations in Jakarta.

“Through the support from various parties, strategic approaches, and our commitment to product quality excellence, we believe we can continue to produce products that…

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MKI Teams up with Enlit Asia to Host the Most Influential Electricity and Energy Sector Meeting in ASEAN

In order to promote the development of clean energy technology in the ASEAN region, the most influential electricity and energy sector meeting in ASEAN

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MKI Teams up with Enlit Asia to Host the Most Influential Electricity and Energy Sector Meeting in ASEAN
From left to right: Bakti S Luddin, Director of Business Unit Indonesian Electrical Power Society, Lydia Sebastian, Director or Marketing, Clarion Events Asia, Arsyadany G Akmalaputri, Secretary General of Indonesian Electrical Power Society, and Noesita Indriani, Executive Director of Indonesian Electrical Power Society

Telegraf – In order to promote the development of clean energy technology in the ASEAN region, the most influential electricity and energy sector meeting in ASEAN will once again be held in Jakarta in 2023, coinciding with Indonesia’s Chairmanship of the ASEAN Summit. This meeting is a partnership between Enlit Asia and the Indonesian Electricity Society (MKI), which will hold two leading events in the electricity and energy business and industry in the ASEAN region, with the support of PT PLN (Persero) as Utility Host and the Ministry of Energy and Mineral Resources.

The Enlit Asia 2023 event and the 78th Indonesian National Electricity Day (HLN 78) will be jointly opened on November 14, 2023, at the Indonesia Convention Exhibition (ICE). This combined event continues the successful partnership that brought the first Powergen Asia to Indonesia and the 73rd Indonesian National Electricity Day in 2018.

This cooperation will bring together more than 350 exhibition participants from around the world who will showcase the latest technologies and innovations that support energy transition throughout ASEAN. It is expected that 12,000 visitors from all over Indonesia and ASEAN will benefit from over 75 hours of free content provided by technology providers and the latest solutions, as well as case studies on the use of the latest technology in the field by IPPs and electric utilities.

This meeting is being held to support energy transition in the ASEAN region and will focus on commercial and strategic issues that will accelerate the transition to a cleaner and more sustainable power system. Over 150 leading speakers in the industry will share their insights simultaneously, where the evolution of traditional energy systems, integration of next-generation clean generation technology, and frameworks and financing supporting this transition will be the focus of the discussion.

With more and more companies participating in the exhibition, including those focused on Carbon Capture and Storage, Hydrogen technology, Energy Storage, Smart Grid, and RE integration solutions including Solar PV and Wind Energy, as well as Nuclear power generation technology, the event is further cementing its position as a leading industry meeting on the ASEAN calendar.

“We are delighted to return to Jakarta and partner with MKI once again. Indonesia is a very important market in the ASEAN region, with the highest electricity demand, projected growth, and active steps being taken to achieve sustainability targets and renew network infrastructure. Partnering with the Indonesian National Electricity Day to see Enlit Asia’s regional reach and capabilities unite key industry stakeholders from across ASEAN, supported by Indonesia’s strong sense of taste, is very important. In 2023, we can promise that this event will fully reflect the strong enthusiasm to drive ASEAN energy transition, supported by the investment appetite of governments, regulators, utilities, and IPPs in this region,” said Richard Ireland, Chief Executive Officer of Clarion Events Asia.

Meanwhile, Arsyadany G Akmalaputri, Secretary General of MKI, explained that this year’s Indonesian National Electricity Day is the third time that MKI has partnered with Enlit Asia in organizing conferences and exhibitions. The 78th Indonesian National Electricity Day and Enlit Asia 2023 event will carry the theme “Strenghtening ASEAN Readiness in Energy Transition: Your Guide to The Energy Transition in Asia”. This year’s program will be different from previous ones, where support for the world’s commitment to implementing energy transition towards cleaner energy has been declared.

In line with Indonesia’s mandate as Chair of ASEAN, ASEAN will continue to be the epicenter of its strong and empowered society growth. The event organized by MKI and Enlit Asia is highly relevant given the scope of exhibition and conference participants

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PGEO Boosts Net Profit in 2022 through Efficiency Programs

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PGEO Boosts Net Profit in 2022 through Efficiency Programs
PGE - Ilustrasi WKP Lahendong

Telegraf – PT Pertamina Geothermal Energy Tbk. (PGE) (IDX: PGEO), a subsidiary of Pertamina engaged in the geothermal sector, achieved a positive performance in 2022. This positive performance was due to the efficiency program, steam and electricity sales, and other revenue contributions that led to a 49.7 percent increase in the company’s net profit compared to 2021.

The increase in profit was recorded in the company’s audited financial report, which was publicly released on March 30, 2023. In the report, PGE recorded a net profit of USD 127.3 million in 2022, significantly higher than its 2021 achievement of USD 85 million.

Throughout 2022, the company recorded a 4.7 percent year-on-year (yoy) increase in operational revenue, contributing to a USD 17 million increase in revenue. One of the contributing factors was the higher selling price of steam and electricity, referring to the US Producer Price Index (PPI) and Consumer Price Index (CPI). Additionally, the increase in profit was supported by the significant reduction of operational costs as a result of the company’s efficiency program. From the other revenue side, PGE also recorded carbon credit sales as a new revenue generator.

As part of PGE’s efforts to increase its installed capacity by 600 MW in 2027, the company is currently constructing the Lumut Balai Unit 2 Geothermal Power Plant with a capacity of 55 MW, which is expected to operate commercially by the end of 2024. Additionally, PGE has completed the Front End Engineering Design (FEED) for the Fluid Collection and Reinjection System (FCRS) facility. This phase is part of the project to develop the Hulu Lais Unit 1 and 2 Geothermal Power Plants with a total installed capacity of 2 x 55 MW, which is expected to operate commercially in 2026.

Moving forward, the company will focus on optimizing its existing geothermal assets. One way to do this is by increasing production capacity through co-generation technology, utilizing the available hot water (brine) to generate electricity. Co-generation technology has already been implemented at the Lahendong Geothermal Power Plant, utilizing the residual brine from steam production to generate 700 KW of power.

From an ESG perspective, in 2022, PGE achieved an ESG Rating 2 from Sustainable Fitch. This rating indicates that PGE is in the good performance category in terms of ESG management. The ESG initiatives carried out by PGE in 2022 include several programs, such as co-generation technology (brine to power) utilization in the Lahendong area, emission reduction and carbon credit sales, biodiversity programs, occupational health and safety management, corporate social responsibility (CSR), enterprise risk management (ERM), cyber security, and the implementation of an anti-bribery management system (SMAP).

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The Urgency of Increasing Competence in Achieving Success in Investing in the Capital Market

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The Urgency of Increasing Competence in Achieving Success in Investing in the Capital Market

TELEGRAF – GI BEI Institut Asia Malang Presents: “The Urgency of Increasing Competence in Achieving Success in Investing in the Capital Market” with Dr. Titis Sosro Tri Raharjo, M.M., CRP, CIB,CSA, CSC, CES, RFC, CRMP, CPIA, C.Me, CPRM as Guest Lecturer

Join us on Tuesday, March 28th, 2023 from 09.00 AM to 12.00 PM WIB at R. Theater Lt.1 Kampus Pusat Institut Asia Malang for a special guest lecture on the importance of improving competence in achieving investment success in the stock market. The lecture will be presented by Dr. (Cand.) Titis Sosro Tri Raharjo, M.M., CRP, CIB,CSA, CSC, CES, RFC, CRMP, CPIA, C.Me, CPRM, who is the Treasurer General of PROPAMI.

The purpose of this guest lecture is to provide participants with better knowledge and understanding of the stock market, which is a form of investment that can provide significant returns but also comes with high risks. Therefore, investors need to have sufficient competence in making investment decisions and choosing the right investment instruments.

Through this guest lecture, participants will gain a better understanding of the stock market and how to achieve success within it. The lecture will cover various effective and efficient investment techniques and strategies, allowing participants to have a deeper understanding of the stock market.

In addition, participants will have the opportunity to directly ask questions to the speaker, Dr. (Cand.) Titis Sosro Tri Raharjo, M.M., CRP, CIB,CSA, CSC, CES, RFC, CRMP, CPIA, C.Me, CPRM, who has extensive experience and knowledge in the field of stock market investment. This will enable participants to deepen their understanding of investment in the stock market.

This guest lecture is suitable for anyone who wants to improve their knowledge and competence in investing in the stock market. Don’t miss this opportunity to learn from an expert in the field of stock market investment. Register now to join the guest lecture on “Urgensi Peningkatan Kompetensi Dalam Meraih Sukses Berinvestasi di Pasar Modal” by GI BEI Institut Asia Malang on March 28th, 2023.

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