Indonesians return to roots by farming during pandemic

Farmers harvesting potatoes at a plantation in Dieng plateau, Wonosobo, central Java, Indonesia. (Shutterstock)
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Updated 09 November 2020
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Indonesians return to roots by farming during pandemic

  • People who lost their jobs in the cities returned to their villages and became farmers

JAKARTA: When Galih Ainun Najib was fired from his job as a staff member at a hostel in Central Java’s Dieng Plateau in late March due to a drop in tourism numbers triggered by the coronavirus outbreak, he turned to farming to make ends meet.

Today, the 27-year-old Indonesian is a full-time farmer earning up to 15 million rupiahs ($1,055) by harvesting potatoes on his parents’ farming plots, across an area of 0.5 hectares, in the Kepakisan village of the Banjarnegara district.

“I became a full-time farmer in April, growing potatoes and carrots on my parents’ lands. I earn up to 15 million rupiahs from harvesting potatoes every three months,” Najib told Arab News on Tuesday.

It is a tedious process with a 30 to 40-day harvesting break between each plot.

“While waiting for the next planting season on our land, I also work as a farmworker on a daily basis on other people’s farmlands before their harvest,” Najib said. The main reason, he says, is because farming and agriculture have not been “much affected during the pandemic.”

“We are still producing and harvesting as there are still demands for our produce. People would still need to eat, anyway, and Dieng potato is among the best quality in the market,” he said.

While other sectors were battered by the pandemic — which struck Indonesia in March — agricultural activities were able to contribute about 15 percent growth to the country’s gross domestic product (GDP) in the second quarter of this year, an increase from the average 12 percent growth reported in 2019, Nunung Nuryartono, dean of School of Economics and Management at Bogor Agricultural University said.

“People who lost their jobs in the cities returned to their villages and became farmers. Even in the cities, people turned to urban farming too, when they had to isolate during the social restrictions, while demand for agriculture and farming produce, such as fish, vegetables, or herbal plants to boost immunity was on the rise,” he told Arab News.

The sector’s resilience during the pandemic was the main point of focus in Agriculture Minister Syahrul Yasin Limpo’s address during the virtual G20 Agriculture Ministers’ Meeting hosted by Saudi Arabia on Sept. 12.

“I called on fellow G20 agriculture ministers to collaborate in mitigating the impact of the pandemic on the global food security,” Limpo said.

He added that the sector was able to provide jobs for almost half of Indonesia’s workforce during the pandemic as it was “able to create jobs in rural areas, provide social security, increase farmers’ earnings, and ensure national food security.”

With farming acting as a “solace for burnt-out young urban workers” during the pandemic, the Agriculture Ministry has shifted focus to the occupation by setting up a program to boost the number of millennial farmers to 2.5 million people, its spokesman Kuntoro Boga Andri told Arab News.

“It is part of the ministry’s long term program to ensure a sustainable development in the agriculture sector,” Andri said.


Egypt signs $120m deal to establish pharmaceutical industrial zone

Updated 36 sec ago
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Egypt signs $120m deal to establish pharmaceutical industrial zone

RIYADH: Egypt is set to establish a $120 million pharmaceutical industrial hub in the Suez Canal Economic Zone, marking a significant move toward localizing medicine production and bolstering its regional manufacturing position.

The agreement was finalized between SCZONE’s investment arm, SCZONE Istithmar, and the Arab Pharmaceutical Materials Co., or Arab API, which will oversee the new facility. The deal was signed in the presence of Khaled Abdel Ghafar, Egypt's minister of health, alongside other high-ranking officials.

The deal outlines plans for a new facility in Sokhna Industrial Area, spanning 96,828 sq. meters. It will focus on producing key raw materials for the pharmaceutical industry, further strengthening Egypt's self-sufficiency in medicines. The site will produce active and inactive ingredients, intermediate materials, and chemicals essential for drug manufacturing.

“This project reflects SCZONE’s commitment to localizing the pharmaceutical industries in Egypt and strengthening its position in this field to become a regional hub for this industry based on the capabilities of SCZONE,” said Waleid Gamal El-Dien, chairman of SCZONE.

He added that SCZONE is dedicated to fostering an attractive investment environment with the infrastructure needed to ensure the success of such projects. “This project marks a significant shift in Egypt's pharmaceutical industry sector,” he continued.

“It is not just an industrial project, but it is an implementation of Egypt’s vision based on integration between all concerned parties to achieve self-sufficiency in essential medicines, and reduce the gap between supply and demand in the local market,” Gamal El-Dien said.

The partnership will see SCZONE Istithmar collaborate with Arab API to build, manage, and operate the plant. The contract was signed by Ahmed Saeed Kilani, chairman of Arab API, and Mohamed Abdel Gawad, SCZONE’s vice chairman for investment and promotion affairs, on behalf of their organizations.

The facility aims to meet local pharmaceutical needs while positioning Egypt as an exporter, strengthening the country’s manufacturing capacity.

Ghafar noted that the investment in the facility is a vital step in enhancing public health services and contributing to the national economy. He emphasized the government’s focus on achieving self-sufficiency and reducing pharmaceutical imports.

The new plant will support Egypt’s rapidly growing pharmaceutical industry, meeting rising domestic demand and positioning the country as a key player in the global market.

The $120 million investment is part of a broader pharmaceutical initiative within SCZONE, which includes other factories such as Ateco Pharma and Genavex Egypt, further strengthening local production capabilities.

In addition, SCZONE has earmarked 4 million sq. meters for the creation of a larger pharmaceutical industrial zone in partnership with the Egyptian Authority for Unified Procurement. This initiative underscores the government’s push for collaboration across stakeholders to achieve long-term self-sufficiency in medicine production.

The new plant is expected to reduce Egypt's reliance on imported pharmaceuticals, boost local production, and expand exports. It is part of the government’s broader strategy to modernize and expand the pharmaceutical sector, improve health services, and contribute to Egypt’s economic development.

SCZONE has played a key role in attracting investment to Egypt’s pharmaceutical sector, leveraging its strategic location and competitive advantages. The Sokhna Industrial Zone, where the new plant will be located, already hosts successful pharmaceutical projects, including Ateco Pharma’s intravenous injection drugs factory and Genavex’s vaccine manufacturing facility.


Saudi weekly PoS transactions close 2024 with $3.6bn in value: SAMA  

Updated 41 min 36 sec ago
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Saudi weekly PoS transactions close 2024 with $3.6bn in value: SAMA  

RIYADH: Saudi Arabia’s consumer spending soared in the final week of 2024, with point-of-sale transactions climbing 17.2 percent week-on-week to SR13.8 billion ($3.6 billion), official data showed.  

Figures from the Saudi Central Bank, also known as SAMA, revealed significant growth across all sectors between Dec. 22 and Dec. 28, with the total number of transactions hitting 211.97 million during the week. 

The telecommunications sector led the growth in transaction value, reporting a 29.6 percent week-on-week increase to SR132.5 million.   

The recreation and culture sector followed closely, with a 27.7 percent rise, amounting to SR286.3 million. Seasonal gifting trends also contributed to a 26.1 percent increase in the jewelry sector, which recorded SR315 million in transactions.   

The food and beverage sector posted a 22.9 percent jump, reaching SR2 billion.  

Other sectors also saw substantial increases in transaction values. The education sector rose 20.7 percent, while health and furniture reported growth of 16.4 percent and 16.2 percent, respectively.   

Miscellaneous goods and services, as well as clothing and footwear, recorded similar growth at 16.2 percent and 16 percent. The restaurants and cafes sector grew by 14.4 percent, with transportation close behind at 14.2 percent.  

In terms of transaction volume, the jewelry sector led with a 25.4 percent week-on-week increase, reaching 231,000 deals.   

Telecommunications saw a 13.9 percent rise, followed by recreation and culture with a 13.3 percent increase, and transportation with an 11.8 percent growth.   

Clothing and footwear transactions rose by 11.5 percent, furniture by 10.6 percent, and miscellaneous goods and services by 8.9 percent.  

Regionally, Hail reported the highest growth in transaction value, with a 29.1 percent increase to SR218.9 million. The city also saw a 15 percent rise in the number of deals, reaching 3.65 million.   

Tabuk followed, posting a 28.9 percent growth in transaction value to SR270.5 million and an 11.3 percent rise in the number of transactions, totaling 4.57 million.  

Madinah recorded a 23.3 percent increase in value to SR594.8 million, alongside a 9.9 percent growth in the number of transactions.   

Riyadh, however, saw the highest overall transaction value at SR4.7 billion, reflecting a 12.4 percent increase. The capital also recorded a 6.2 percent rise in transaction volume.  

Jeddah followed with a 13.4 percent increase in transaction value and a 5.9 percent rise in transaction volume.  


Saudi Arabia standardizes USB Type-C charging ports for electronic devices

Updated 50 min 12 sec ago
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Saudi Arabia standardizes USB Type-C charging ports for electronic devices

RIYADH: As part of an initiative to improve user experience and reduce electronic waste, Saudi Arabia will adopt a unified charging standard for electronic devices, mandating USB Type-C ports. The new regulation, which took effect on Jan. 1, follows a decision by the Communications and Space Technology Commission in partnership with the Saudi Standards, Metrology, and Quality Organization.

The goal of this unification is to streamline charging and data transfer technology across the Kingdom, ensuring higher-quality technical products and enhancing consumer convenience.

CST and SASO have estimated that the new policy will reduce the local demand for various types of charging ports by over 2.2 million units each year. It will also save consumers more than SR170 million ($45.2 million) annually and support the Kingdom’s sustainability goals by cutting electronic waste by nearly 15 tonnes per year.

The first mandatory phase includes mobile phones, tablets, digital cameras, e-readers, portable video game consoles, headphones, earphones, loudspeakers, keyboards, computer mice, portable navigation systems, and wireless routers. A second phase, beginning on April 1, will expand the mandate to include laptop computers.


Aramco raises diesel prices in Saudi Arabia to $0.44 per liter

Updated 01 January 2025
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Aramco raises diesel prices in Saudi Arabia to $0.44 per liter

RIYADH: Saudi Aramco has increased diesel prices in Saudi Arabia to SR1.66 ($0.44) per liter, effective Jan. 1, 2025, marking a 44.3 percent rise compared to the start of 2024.

According to the latest update on Aramco’s website, the company has kept gasoline prices unchanged, with Gasoline 91 priced at SR2.18 per liter and Gasoline 93 at SR2.33 per liter.

The annual review of diesel prices is part of Aramco’s pricing mechanism, implemented in 2022. This year marks the fourth review under the system. In January 2024, the Kingdom raised diesel prices to SR1.15 from SR0.75 per liter, continuing its gradual adjustments.

Despite the hike, diesel prices in Saudi Arabia remain lower than those in many neighboring Arab countries. In the UAE and Qatar, a liter of diesel is priced at $0.73 and $0.56, respectively, while in Bahrain and Kuwait, it costs $0.42 and $0.39 per liter.

Aramco’s website also lists the current price of kerosene at SR1.33 per liter and LPG at SR1.04 per liter.

On Dec. 31, Aramco announced reductions in the official selling prices for propane and butane for January 2025. The price of propane was reduced by $10 per ton, while butane saw a $15 per ton cut compared to the previous month.

Aramco’s OSPs for LPG are key benchmarks for contracts supplying the product from the Middle East to the Asia-Pacific region.

Additionally, the energy giant reduced pricing for its Arab Light crude oil for Asian buyers in January 2025. The OSP for Arab Light was cut by 80 cents, bringing it to $0.90 per barrel above the regional benchmark. Arab Extra Light and Super Light grades saw reductions of 60 cents and 70 cents per barrel, respectively, while Arab Medium and Heavy grades experienced cuts of 70 cents per barrel.

These adjustments reflect Aramco’s ongoing efforts to align its pricing strategy with market dynamics while supporting its broader energy goals.


SAMA grants licenses to 2 new fintech firms

Updated 01 January 2025
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SAMA grants licenses to 2 new fintech firms

RIYADH: Saudi Arabia’s fintech ecosystem is expanding further with the Saudi Central Bank, or SAMA, granting licenses to two new service providers. 

Tal Finance has been authorized to offer debt-based crowdfunding solutions, making it the 12th company in the Kingdom to provide such services. This addition brings the total number of finance companies licensed by SAMA to 62, highlighting the increasing role of alternative financing solutions in Saudi Arabia.

Meanwhile, SAMA has granted a license to Hiberbay Ink Al-Saoudia for IT Systems to deliver e-wallet services, increasing the total number of payment service providers in Saudi Arabia to 27. This move is aimed at promoting digital payment solutions and accelerating the Kingdom’s shift toward a cashless economy.

These developments align with Saudi Arabia’s Vision 2030 objectives to bolster the digital economy, expand financial inclusion, and increase the share of cashless transactions to 70 percent by 2025.

SAMA’s efforts are also tied to the Financial Development Sector strategy, which aims to have 525 active fintech companies operating in the Kingdom by 2030.

“Managing the transformation of the financial sector is a cornerstone of Vision 2030,” SAMA said in a statement, highlighting its focus on innovation and efficiency.

Through these initiatives, the central bank seeks to foster financial stability, stimulate economic growth, and position Saudi Arabia as a global fintech leader.

The fintech sector is expected to play a pivotal role in driving foreign investment, projected to contribute 20 percent of total foreign inflows. This growth is fueled by Saudi Arabia’s tech-savvy population, which is embracing consumer fintech innovations like buy now, pay later services.

In an interview with Arab News in December, Arjun Singh, partner and global head of fintech at Arthur D. Little Middle East, highlighted the natural evolution of Saudi Arabia’s consumer finance landscape, driven by an expanding array of financial products tailored to the diverse needs of its growing market.

He added that the Saudi BNPL market is poised to grow from $1.4 billion in 2024 to $2.8 billion by 2029, reflecting a compound annual growth rate of over 10 percent.

SAMA’s recent licensing activity underscores its commitment to supporting innovation while ensuring financial stability and efficiency. As the Kingdom’s fintech landscape expands, these developments are expected to drive significant economic and technological progress.