Update News January 11, 2017

In The News

President to Announce Mutual Cooperation Economy Policy
Tempo, 11/01/2017

Speaking before thousands of Indonesia Democratic Party of Struggle (PDI-P) cadres during the party's anniversary celebration, President Joko "Jokowi" Widodo said that he would announce a new policy called the 'Pancasila economy' or mutual cooperation economy.

"We are preparing the Pancasila economy [or] the mutual cooperation economy policy that will soon be announced," President Jokowi said at the Jakarta Convention Center on Tuesday, January 10, 2017.

According to President Jokowi, the economic policy is aimed at addressing unemployment, poverty and gap issues."The point is a just economy and equity. High economic growth means nothing if it's not equal. It will be a vain," Jokowi added.
Therefore, President Jokowi pointed out that the new policy would be focused on developments of rural areas and outer islands.

President Jokowi claimed that the endeavor to develop border areas, such as Entikong in West Kalimantan, had been successful. Jokowi instructed the Public Works and Public Housing Ministry to renovate government buildings in Entikong and gave a two-year deadline to improve public services.

Other examples of successful development programs in border areas, President Jokowi added, were those conducted in East Nusa Tenggara and airport development projects in outer islands, such as in Miangas and Natuna.

Attending the PDIP's anniversary celebration were a number of political figures and political party leaders, including Vice President Jusuf Kalla, former Vice President Try Sutrisno, Oesman Sapta Odang, Romahurmuziy, Muhaimin Iskandar, Surya Paloh, Imron Priono, Zulkifli Hasan, and Djan Faridz.

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More Than 5,000 Taxpayers Take Part In Second Round Of Tax Amnesty
The Jakarta Post, 11/01/2017

Of the 204,125 taxpayers who were invited to take part in the second round of the tax amnesty program that ended late last year, only 5,373 did, an official says.

Directorate General of Taxation spokesman Hestu Yoga Saksama said his office sent emails to 204,125 taxpayers eight and nine days before the second round of the amnesty expired to invite them to take part in the program.“Up to Dec. 31 [2016], 5,373 taxpayers took part in the program,” said Hestu as reported by tempo.co on Tuesday.

The total declared wealth of the 5,373 taxpayers was Rp 16 trillion (US$1.2 billion), Hestu said. He, however, did not mention the amount of penalties collected by the government from the taxpayers.

He said his office would send more emails to the taxpayers to invite them to take part in the third round of the tax amnesty program.

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IDX To Open 60 Investment Galleries In Universities This Year
The Jakarta Post, 11/01/2017

The Indonesia Stock Exchange (IDX) will open 60 investment galleries in universities this year to boost investor numbers.

The galleries will be managed by securities partners of the bourse, said IDX director Nicky Hogan, adding that there were currently 240 university investment galleries, 85 of which that had been established in 2016.

"Our target is 300 investment galleries by the end of this year. We are eyeing young and active investors," he said at IDX in Jakarta on Tuesday.

The IDX will also increase representative offices to 34 this year from 25 representative offices, six of which were established during 2016, he said.

This year, the IDX will open representative offices, mostly, in East and West Nusa Tenggara provinces. "We will have representative offices in every province. Last year we just opened in West Papua," he said.

According to Indonesian Central Securities Depository (KSEI) data, the number of registered capital market investors increased by 105.26 percent to 891,070 at the end of 2016 from 434,107 investors at the end of 2015.

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Cooperatives Ministry to Provide Free Fintech Services
Tempo, 11/01/2017

The Cooperatives and Small and Medium Enterprises Ministry is set to provide free technology-based financial services for cooperatives. Cooperatives and Small and Medium Enterprises Deputy Minister for financing Braman Setyo, said that the financial technology application would allow cooperatives under the same network to be interconnected.

Braman added that cooperatives can use android-based, iOS-based and web-based applications to access the services."The application of financial technology is expected to generate trusts among cooperative members to deposit their money in cooperatives, which in turn will have positive impacts on the development of cooperative businesses," Braman said in a press release on Tuesday, January 10, 2017.

According to Braman, cooperatives are facing challenges posed by the globalization and must compete with financial institutions that already utilize information technology.

Braman predicted that financial technology would allow cooperatives to encourage public to save money."People prefer to deposit their money at banks for ease of transactions," Braman added.

Braman hopes that cooperatives across the country would be able to seize the opportunity with financial technology solution to grow their businesses.

Braman revealed that each province would have a cooperative serving as a pilot project in the financial technology application.

The Ministry has signed an agreement with PT Finnet Indonesia to provide financial technology services for cooperatives."The target is to achieve 40 percent of cooperatives to apply financial technology," Braman said.

PT Finnet Indonesia president director Niam Dzikri said that the cooperation is aimed to encourage cooperatives to utilize financial technology."We will help cooperatives across Indonesia to use technology," Niam said.

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Tanjung Priok Access Toll Road Construction Reaches 98%
Tempo, 11/01/2017

The construction of Tanjung Priok Access Toll road has reached 98 percent. It is predicted that the finalizing of section E2 is on target and can be operated in March.

Head Division of Implementation II for Balai Besar National Road IV Gen. Dir. of Bina Marga, Ministry of Public Works and Public Housing, Bambang Nurhadi, said that the project leaves only asphalting and railing to be done."The construction has been connected, it's already 98 percent. We're optimistic to operate in March," he said, Tuesday (1/10).

He added that the other four packages have been completed, as well as the four ramps off in Pasar Waru, Makam Mbah Priok, North Jakarta Mayor Office and Semper.

"There are six ramps which are KBN, Semper, Bogasari, Jalan Dobo, RS Koja and Kebon Bawang," he added.Tanjung Priok Access Toll construction along 16.67 km was divided into five packages.

There are the East 1 Section (E1) Rorotan-Cilincing along 3.4 km, East 2 Cilincing-Jampea 2.74 km, East 2-A Cilincing Jampea 1.92 km, North-South Link (NS Link) Yos Sudarso-Simpang Jampea 2.24 km, and North-South Direct Ramp by 1.1 km.

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Trans Java Road`s Construction To Be Completed Before Idul Fitri
Antara News, 11/01/2017

State-owned toll road operator PT Jasa Marga is targeting to complete the construction of the Trans Java toll road before Idul Fitri, which will fall on July 2017.

The completion of the toll roads construction is deemed necessary to facilitate the people planning to embark on the annual Idul Fitri homecoming tradition, or "mudik," to destinations in Central or East Java.

"Data from the Toll Road Regulatory Agency (BPJT) shows six toll roads can become fully operational and three other functional (roads) can be used by the travelers," Assistant Vice President Corporate Communication of PT Jasa Marga Dwimawan Heru Santoso stated here, Tuesday.

Six toll roads to become operational before Idul Fitri, include the Semarang-Solo section III road, in particular the 17.6-kilometer-long toll road between Bawen and Salatiga; 19.9 kilometers Kertosono-Mojokerto section II road; and 0.9 kilometers Bandar-Batas Barat section IV road.

In addition, a toll road will be built to connect Bekasi, Cawang, Kampung Melayu section IB and the 8.28-kilometer-long Pangkaljati-Jaka Sampurna segment, as well as 8.15 kilometers of the Soreang-Pasir Koja road.

The construction of the 13.9-kilometer-long Gempol-Pasuruan section I road will be completed in May, while the Solo-Ngawi section I road, in particular, the 13.8-kilometer-long segment of the Karanganyar-Sragen road will become fully functional in June.

There is an urgent need to complete the construction of 74.2 kilometers of toll roads to handle the increase in the number of private vehicles as compared to public modes of transportation.

As part of the construction project, currently, 50 percent work of soil compaction has been completed. This stage is required to ensure the required density of land composition.

Jasa Marga is cooperating with the central government to provide the best service for toll road users and to reduce traffic jams, which have become a common problem during "mudik."

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Cawang-Cibubur LRT Line To Launch In March 2019: Minister
The Jakarta Post, 11/01/2017

The light rail transit (LRT) connecting from Cawang to Cibubur in East Jakarta will enter operation in March 2019, according to Transportation Minister Budi Karya Sumadi, later than a target proclaimed just a few months ago.

“The technical progress has reached 12 percent, and we hope the infrastructure for the LRT will be finished in the middle of next year.

We need eight more months to finish installing rolling stock and the system,” Budi said in a statement on Monday, as quoted by news agency Antara.

Budi explained that the LRT infrastructure used precast technology. “We use a new technology called precast, as high as 30 meters. Our LRT is more advanced than that in China, Hong Kong, Singapore and Japan,” he added.

He said that besides serving railway transportation, the LRT infrastructure also accommodated phone lines and fiber-optic communication.

The central government and state-owned contractor Adhi Karya plan to eventually connect Bogor, Depok and Bekasi with Jakarta through the LRT system.

The minister said the first phase was for a connection from Cibubur to Cawang, which would be followed by an extension to Bogor, because 30 percent of PT Keretaapi Commuter Jabodetabek’s 800,000 passengers are from Bogor.

In September last year, the government had targeted that the Cawang-Cibubur route would start operating by the end of 2018.

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Pertamina to become Ciremai Block Operator
The Jakarta Post, 11/01/2017

Energy and Mineral Resources Ministry has scrapped plans to auction Ciremai Mountain geothermal working area in West Java.

The government will appoint state-owned oil and gas company PT Pertamina to become the operator of the area. “They [local residents] at the vicinity of Ciremai Block suggested it be operated by Pertamina,” Energy Ministry Geothermal director Yunus Saefulhak told Tempo yesterday.

Yunus received the suggestions when he conveyed the planned auction of Ciremai Block to 20 local nongovernmental organizations. Yunus said that locals are against natural resources operatorship by foreign firms.

Chevron was the previous operator of Ciremai Block. Locals had been against the US-based firm presence. After years of uncertainty, Chevron returned Ciremai Block to the Indonesian Government in 2015.

The government had previously planned to hold an auction by mid-November last year. The ministry now is aiming to develop geothermal electricity in Ciremai with a capacity of 110 megawatt (MW) of a total capacity of 150 MW. The block covers an area of 38,560 hectares.

Yunus said that Pertamina’s appointment will not be concluded in the near future as the Energy Ministry awaits a government regulation on indirect geothermal utilization. The ball is now in the State Secretariat Ministry’s court.

Ciremai Block will add to Pertamina’s working area to six. Yunus declined to name the other five areas.
Pertamina said that it has submitted operatorship proposal. Pertamina will let its subsidiary PT Pertamina Geothermal Energi (PGE) to become the operator.

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Availability Of Mineral And Coal Resources Must Be Calculated: President
Antara News, 11/01/2017

Indonesias President Joko Widodo (Jokowi) has demanded that accurate estimates of the mineral and coal reserves in the country should be made available to prevent their exploitation.

"I wish to remind everybody that mineral and coal resources are not renewable," he said at a limited cabinet meeting to discuss the mineral and coal exploitation activities here, Tuesday.

Indonesia is ranked 10th in the world in coal resource availability, but "we must remember it can be used up," the president warned. "It is predicted that in the next 83 years this resource will finish," he added.

The exploitation of natural resources should be done based on the accurate estimates of their availability."Most importantly, they must be used for the benefit of the people, and hence, the resources must be used keeping in mind the benefit to the people, their sustainability, the environment and the national interests," he explained.

The meeting was attended by Vice President Jusuf Kalla, Finance Minister Sri Mulyani, Trade Minister Enggartiasto Lukita, Industry Minister Erlangga Hartarto, Coordinating Minister for Economic Affairs Darmin Nasution, Coordinating Minister for Political, Security and Legal Affairs Wiranto, Energy and Mineral Resource Minister Ignasius Jonan, Coordinating Minister for Maritime Affairs Luhut Pandjaitan, Justice Minister Yasonna Laoly, Environment Minister Siti Nurbaya, State Enterprises Minister Rini Soemarno, Indonesia Police Chief General Tito Karnavian, Cabinet Secretary Pramono Anung and Minister/State Secretary Pratikno.

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Japan Eager To Manage Indonesian Island For Its Elderly
Antara News, 11/01/2017

Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan has given the green light to Japan to manage an Indonesian island as a rest area for its senior citizens.

"Japan has asked if they could be allowed to manage a certain island for its elderly persons. I told them it is okay to build a village there, but we will never sell it," he said at a press briefing here Monday.

Japan is eying Morotai Island in North Maluku province to develop it into a rest area for its elderly persons, Luhut said.He also offered Japan the opportunity to manage other Indonesian exotic islands and name the islands themselves.

Some 4,000 Indonesian islands have not been named, he said adding that allowing Japan to name the islands does not mean the Indonesian government is selling the islands to foreign countries.

"Some 4,000 islands do not have names. I told them they can name the islands themselves. It is not easy to name 4,000 islands. What is important is that the Indonesian government has registered them," he said.

It will not be a problem if foreign investors manage and name the islands, he said. He likened naming the islands to naming restaurants according to their owners desire.

"What is a name for? The important thing is that the islands have been registered as Indonesias islands," he said.

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Indonesia To Register 14,752 Officially Named Islands With UN
Antara News, 11/01/2017

The Government of Indonesia has officially named as many as 14,752 islands across the archipelago in 2016, an official said here, Tuesday.

The government will now register the names of these islands with the United Nations Group of Experts on Geographical Names (UNGEGN) during a conference in New York, in August, Directorate General of Marine Space Management of the Ministry of Marine and Fishery Brahmantya Satyamurti Poerwadi revealed here, Tuesday."The Ministry of Marine Affairs and Fishery has standardized the names of 14,752 islands," Poewardi declared.

UNGEGN is one of the United Nations groups that deals with the national and international standardization of geographical names. Every five years, they hold the United Nations Conference on the Standardization of Geographical Names.

In 2012, Indonesia had registered as many as 13,466 islands with the United Nations. Registering the official island names was necessary to strengthen the nations sovereignty, Poerwadi maintained.

The exact number of islands comprising the Indonesian archipelago varies according to sources.As per an earlier survey in 2002, conducted by the National Institute of Aeronautics and Space (LAPAN), the Indonesian archipelago has 18,307 islands.

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A Thousand Mangrove Trees Planted in Bengkulu for Tsunami Mitigation
The Jakarta Globe, 11/01/2017

Members of the St. John Parish Church in Bengkulu have planted 1,000 mangrove trees in the Pantai Panjang Natural Park, in a move to preserve the province's mangrove forest.

With the help of the Bengkulu Mangrove Community, two species were planted on Tuesday (10/01) —Rhizopora Apiculata and Ceriops Tagal — at the mouth of the Jenggalu River.

"The mangrove trees planting is part of St. John Church's 90th anniversary," Martinus Arwindo of the church's committee told Antara news agency.

Through this effort, the church also sought to raise awareness about the importance of mangrove conservation, as the shrubs are a mitigator of natural disasters.

"Mangroves are a natural shield if a tsunami occurs," Martinus said, adding that Bengkulu is prone to earthquakes and tsunamis.

According to the Bengkulu Mangrove Community, the mangrove ecosystem in the Pantai Panjang Natural Park is also important for economic wellbeing.

"Spawning takes place in the mangrove ecosystem, which means that the sustainability of marine life is highly dependent on the trees," said Ziya Uzzikri of the Bengkulu Mangrove Community.

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