Update News December 19, 2016

In The News

Ministry Launches e-Smart UKM Platform
Tempo, 19 December 2016

In a bid to expand market in the global market and in the face of Industry 4.0--the rise of digital industrial technologies--Industry Ministry is developing e-smart IKM, a digital platform for small and medium industries.

“This e-smart IKM will be integrated with prioritized industry clusters such as jewelry, furniture, and cosmetic; thus it is expected to help small and medium industries (IKM) promote its products and increase the sale of the products,” Industry Minister Airlangga Hartanto said on Sunday (18/12).

Airlangga added the Ministry will also select industries that have potentials within the scheme of 4.0.

The Minister added those industries are the ones with characteristic that that is based on the Internet such as component industry, fertilizer industry, cement industry, electronic industry, and machinery.

In addition, the Ministry is also implementing a number of strategic programs to improve competence of human resources such as through vocational training, apprenticeship program and certification.

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France May Become Gateway for Indonesia`s Products to Europe
Tempo, 19 December 2016

Indonesia is considering turning France into a gateway for its products to non-traditional markets in Europe, Industry Minister Airlangga Hartarto said.

"France has a dynamic industry and is one of the most competitive nations in the world," he said, while receiving French Ambassador to Indonesia Jean-Charles Berthonnet at his office recently.

France is also ranked second, third and fourth for chemical industries, food industries and in the information and telecommunication industries in Europe, he said in a press statement released.

The minister added that Indonesia should look into the possibility of turning France into a gateway for its products to Europe through cooperation in the industrial sector, standardization efforts, and exchanging information on non-tariff measures, as part of efforts to penetrate the market.

France is also Indonesias important partner in terms of trade relations, which contribute to its industrial and economic growth, he said.

"The two countries need to enhance economic cooperation to balance their trade and investment," he said.

In 2015, Indonesia imported US$1.3 billion worth of goods from France, while its exports to France were valued at US$972 million.

Indonesia`s imports from France included aircraft components, vehicles, electronic machines and milk and pharmaceutical products, while its exports to France were made up of electronic machinery, footwear, rubber, rubber products, furniture, clothing and accessories, coffee, tea and spices.

Data from the Indonesian Investment Coordinating Board (BKPM) show Frances investment in Indonesia between 2011 and 2016 reached US$771.2 million in 783 projects.

The projects include 174 projects worth US$323.7 million in the manufacturing sector. Indonesia is also a hub for products manufactured by French company Schneider Electric for Southeast Asia.

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Exports in 2017 Expected to Increase, Minister Says
Tempo, 19 December 2016

Trade Minister Enggartiasto Lukita is optimistic that export in 2017 will increase despite the current global economy that has yet recovered from the slowdown.

"One thing for sure, there are opportunities. I always say on every situation, there are always opportunities,” the Minister said in Jakarta on Saturday.

Enggartiasto added that although several countries still adopt protectionism policies in 2016 and 2017, Indonesia can still have opportunities to expand market for its import products.

The minister, however, declined to mention how much Indonesia’s export will increase in 2017.

Data from the Central Statistics Agency (BPS) shows that Indonesia’s  balance of trade until November 2016 experienced a surplus of US4 7.79 billion.

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Minister Launches Government Openness Action Plan
Antara News, 19 December 2016

Minister for National Development Planning/Head of Bappenas Bambang Brodjonegoro has launched the Government Openness Action Plan 2016-2017 to improve Indonesias competitiveness amid increasingly tighter global competition.

"In an era where society needs higher transparency (for democracy to work efficiently), the openness of the government becomes a necessity," stated Bambang in Jakarta on Friday.

According to him, transparency in governance is intrinsically related to the governments functions, where the government has a duty to be transparent, accountable, participatory, and innovative.

Open governance is characterized by open space for debate and public access to information, as well as public participation in governance and controlled development.

"Some time ago, the president stated that an open government would build and strengthen public trust. The president reiterated that an open government is the best option for Indonesia," Bambang said.

In the Government Openness Action Plan 2016-2017, the fourth release of the plan, 50 commitments were made, of which 22 were to be applied by 14 ministries/agencies and 28 were to be run by local governments.

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ERP System Must be Implemented Soon: Police
Tempo, 19 December 2016

Head of Sub-directorate of Training and Legal Enforcement of the Jakarta Regional Police Adj. Comr. Sr. Budiyanto said the police had given a recommendation to the Transportation Ministry to comprehensively and boost the use of the electronic road pricing (ERP) system for cars.

The move, he said, is deemed to be able to ease traffic in Jakarta.

Budiyanto added that the Jakarta Transportation Agency had also discussed the program with stakeholders, transportation experts, mass organizations and media.

“The result of the discussion is to boost the use the implementation of the ERP,” Budiyanto said on Sunday.

Budiyanto added the application of the ERP must be in place soon because based on the latest monitoring, there is still a build up of traffic although the odd-even plate number program has been implemented.

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Ministry Launches Navigational Ships in Surabaya
Tempo, 19 December 2016

The Transportation Ministry’s Directorate General of Sea Transportation launched two units of navigational ships on Friday, December 16, 2016.

The ships built in 2015 by PT Dumas Tanjung Perak Shipyards in Surabaya are called KN Kunyit and KN Maratua. Both ships will be based in Banjarmasin, South Kalimantan, and Tarakan, North Kalimantan.

“The ships are expected to strengthen the navigational ship fleet and boost the reliability of the Aids to Navigation (SBNP) in order to ensure the safety and security of Indonesian waters,” Tonny Budiono, director general of sea transportation at the Transportation Ministry, said in a press release on Friday,
December 16, 2016.

Since 2015, the Directorate General of Sea Transportation has built 20 units of navigational ships, including two units of Perambuan Mother Ship recently launched by Dumas Tanjung Perak Shipyards. The shipbuilding activities were aimed at replacing outdated navigational ships.

Tonny explained that Indonesia would need personnel to operate dozens of navigational ships. Therefore, he hopes that human resources in the shipping sector must be well-prepared along with the shipbuilding activities.

“I hope that these ships can be well-maintained so that they can be reliable in serving navigational tasks,” he said.

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Minister Committed To Developing Broadband, Internet And Broadcast Sector
Antara News, 19 December 2016

The Minister of Communication and Informatics, Rudiantara, has affirmed that broadband infrastructure, internet driven businesses and broadcast services will be expanded during his time in the office until 2019.

"In 2015, I was asked what I wanted to focus on, and I have always held that broadband, internet and broadcast (BIP) (would remain my priority). I am consistent about that," Rudiantara stressed during a discussion on "Energizing Digital Economy" in Jakarta, on Thursday.

During the discussion, organized to commemorate Indotelko.coms 5th birthday, the minister said Indonesias infrastructure and connectivity facilities need to reach all the regions in the country so that the country can catch up and enhance its position in the Technology, Information and Communication (TIK) sector in the ASEAN region.

The government, alongside various industry players and stakeholders, have a vision to ensure that Indonesia rises to the second place by 2019, from the fourth place that it now occupies.

Rudiantara further stated that 114 capital cities were yet to be connected to broadband, a situation that prompted the government to set in motion a public-private partnership (PPP) policy which will include broadband operators.

However, infrastructure development in these cities is not being fully left to telecommunication operators.

For areas deemed unfit for business operations, operators will contribute to the development through Universal Service Operation funds, under which the government will build the infrastructure in those areas, including through the Palapa Ring project.

"Operator have made a commitment to the government to develop 57 regions that have yet to be connected to the broadband by the end of 2018, while the other 57 will be built by the government," he revealed.

As for internet driven businesses, the government will focus on e-commerce, cyber security and government.

The governments seriousness in developing e-commerce is reflected in the formulation of a road map designed to shape the e-commerce ecosystem and structure in Indonesia that is growing rapidly. A specific guideline is required to ensure its optimal growth.

With regard to the broadcasting sector, the minister said things will migrate towards digitization in the near future.

"Migration to a digital community is inevitable in the broadcasting sector and I think there could be a sort of Universal Service Obligation in the broadcasting sector so that it can contribute more to the Non-Tax National Income (PNBP)," he reiterated.

Of the approximately 11 trillion rupiah worth of PNBP from the telecommunication sector, broadcasting field only contributed around 100 billion rupiahs, a relatively small sum, he concluded.

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Indonesia Assigns Pertamina to Build Bontang Refinery
The Jakarta Globe, 19 December 2016

The Indonesian government has assigned state energy company Pertamina to build and operate a refinery at Bontang in East Kalimantan in a bid to speed up development of the project, a state official said on Friday (16/12).

The refinery is slated to have a capacity of 300,000 barrels per day.

Pertamina will be allowed to engage partners or investors to build the refinery, deputy energy minister Arcandra Tahar told reporters.

"Even when its an appointment, it doesn't mean Pertamina will bear all the financing," he said.

Separately, Pertamina said it aims to select a partner for the Bontang refinery by the end of 2017 and hopes to start construction at the end of 2019, as scheduled.

Pertamina said the refinery will be built near a liquefied natural gas plant operated by its unit Badak NGL

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Jakarta, Finnish Firm to Develop Waste Treatment Facility
Tempo, 19 December 2016

Jakarta City-owned PT Jakarta Propertindo (Jakpro) has joined hands with Finnish-based company Fortum Finlandia to develop intermediate treatment facility (ITF) in Sunter, Kelapa Gading, North Jakarta. ITF will be the first waste treatment facility to be built inside Jakarta.

“The company has 30 years’ experience in waste treatment,” PT Jakpro president director Satya Heragandhi said after signing the agreement at Jakarta City Hall on Friday, December 10.

Satya said Fortum will establish ITF, including incinerator technology, at 3.2 hectares of city-owned land in Sunter. Waste will be burned and processed in such a way to produce electricity. “They will be capable of processing up to 2,200 tons of garbage daily,” he said.

The generating capacity can reach 40 megawatt. The electricity will be sold to state-owned electricity company PT PLN.

The value of investment is roughly Rp3 trillion. Jakpro and Fortum will adopt build operate transfer (BOT) project delivery. “We will establish a joint venture with the majority shareholders of Jakpro,” Satya noted.

Satya said his office is hoping to break ground on the project next year. “Our target, 2019 to start operation, because construction will take two years [to complete],” he said.

Acting Jakarta Governor Sumarsono is hopeful that ITF in Jakarta can encourage others to follow suit because waste-to-energy program is stipulated in Presidential Regulation No. 18/2016 on Acceleration of Establishment of Waste-based Power Plants.

“We hope it can encourage other cities,” Sumarsono said. He expects Jakarta to process its own waste in years ahead. “So we don’t have to dump them to Bantargebang [Bekasi].”

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Jokowi Hopes Ciliwung River Can be Cleaner
Tempo, 19 December 2016

President Joko ‘Jokowi’ Widodo hopes the Ciliwung Care Community (Komunitas Peduli Ciliwing), the public, and the government continue to work together to make Ciliwung river clean again.

"Ciliwung river is getting cleaner but it is still dirty. But it’s cleaner than before. Every day, I pass by the river,” the President said during an event to pick up rubbish from the river in Bogor on Saturday.

The President added if the river is getting cleaner but still dirty, it means there should be a collective awareness to clean it from rubbish.

"The most important thing is how to educate the public not to throw garbage to the river,” President Jokowi said.

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