Indonesia Highlights: US Extends Indonesia’s GSP Status | 2 Regions to Increase Minimum Wage in 2021 | The Return of Herbal Drinks

KOMPAS.com – Bad weather caused power outages across parts of Jakarta, Indonesia, and surrounding towns while an exodus of travelers made their way back to the capital city.

Indonesia’s Minister of State-Owned Enterprises Erick Thohir has apologized for the power outage that affected residents in Jakarta and satellite towns such as Bogor and Bekasi.

State-Owned Enterprise, State Electricity Company worked to restore power since Sunday afternoon.

After a long holiday that began on Wednesday, many Indonesians are returning to Jakarta filling up public transportation services and roads across various regions.

The holiday has brought welcoming news for Indonesia’s tourism sector as people visited tourist attractions and helped boost sales of transportation companies.

This week has been a much-needed breeze for Indonesian citizens amid an epidemic that has infected 412,784 people nationwide as of today.

More important news about Indonesia on Sunday are highlighted below:

ANTARA FOTO/GALIH PRADIPTA Menteri Luar Negeri Amerika Serikat Michael Pompeo mengenakan masker saat hadir dalam dialog dengan GP Ansor di Jakarta, Kamis (29/10/2020). ANTARA FOTO/Galih Pradipta*** Local Caption *** Secretary of State Mike Pompeo

1. US Extends Indonesia’s GSP Status

Following the recent visit of Secretary of State Mike Pompeo, Indonesian Foreign Minister Retno Marsudi announced that the US has extended Indonesia’s generalized system of preferences (GSP) status.

The US’ GSP for Indonesia removes duties on thousands of goods such as manufactured and semi-manufactured products, and goods from the agricultural, fisheries, and primary industries.

In 2019, Indonesian exports using the GSP facility reached $2.61 billion of 13.1 percent of the country’s total exports to the US.

Between January to August 2020, Indonesian exports using the GSP facility totaled $1.87 billion, up 10.6 percent year-on-year.

Retno Marsudi shared that Indonesia’s GSP status extension was welcome news given the US’ importance as a trade partner. The partnership is expected to boost Indonesia-US trade activities.

Source: https://nasional.kompas.com/read/2020/11/01/14530091/pemerintah-as-perpanjang-pembebasan-tarif-bea-masuk-untuk-indonesia?page=all#page2 

KOMPAS.com/KRISTIANTO PURNOMO Buruh bongkar muat di Pelabuhan Sunda Kelapa, Jakarta, Selasa (31/7/2018). Buruh sektor informal adalah pekerja yang paling gampang terpapar berbagai risiko. Sayangnya, mereka juga merupakan kelompok yang paling tidak terlindungi.

2. Central Java and Yogyakarta to Increase Minimum Wage Rates in 2021

The regional governments of Central and Java and Special Yogyakarta Area will increase their respective minimum wage rates in 2021.

Indonesian Minister of Manpower Ida Fauziyah announced on Oct. 26 that there will be no changes to minimum wage rates next year, however, several regional governments have gone ahead and imposed increases for 2021.

Ida explained that the final decision on minimum wage rates falls on the governors of each region and that the ministry’s decree only served as a reference.

Central Java Governor Ganjar Pranowo stated that his region’s minimum wage rate for 2021 has been set to Rp 1,798,979, an increase of 3.27 percent than this year.

Governor of the Special Yogyakarta Region Sri Sultan Hamengkubuwono X will increase the minimum wage to Rp 1,765,000 in 2021, an increase of 3.54 percent than this year.

Source: https://money.kompas.com/read/2020/11/01/071631426/tak-ikut-perintah-menaker-ganjar-dan-sultan-kompak-naikkan-ump-2021?page=all#page2 

https://money.kompas.com/read/2020/11/01/160000526/jawa-tengah-dan-diy-naikkan-ump-2021-ini-kata-menaker 

Shutterstock/Wisnu Haryo Yudhanto

3. The Return of Indonesia’s Herbal Drinks

Indonesia’s herbal drinks had been fading away in popularity in conjunction with modernization, however, the coronavirus pandemic has restored the public's appreciation of these beverages.

President Joko ‘Jokowi’ Widodo said that for centuries, Indonesians have struck a balance in maintaining a sense of harmony between nature and cultural principles.

The coronavirus pandemic in particular is believed to bring back traditional customs onto modern Indonesian society.

Jokowi highlighted that Indonesians have turned to local customs such as regularly consuming herbal drinks to boost immunity during the pandemic.

President Joko Widodo explained that the return of Indonesia’s herbal drinks in the domestic market should encourage local artists and cultural practitioners to continue their craft in these hard times.

Source: https://nasional.kompas.com/read/2020/11/01/09031341/dampak-pandemi-covid-19-masyarakat-kembali-hidupkan-jamu-tradisional