Update News January 23, 2017

In The News


Indonesia Must Start Finding New Export Markets, Observer Says  
Tempo, 23/01/2017

Member of the Expert Council of the Habibie Alumni Program, Rony Mamur Bishry, has urged the government to brace for the effects of the policies implemented by the newly-inaugurated President of the United States Donald Trump in the next one year.

According to Rony, the government has to start thinking of new export markets if Trump implemented his protectionism policies.

"For exports, we have to think of the alternatives of our exports,” Rony said in Jakarta on Saturday (20/1).

In the meantime, Secretary General of the US Alumni Association Jimmy Rifai Gani said that the government should also be vigilant against the plan of the US central bank, The Fed that will increase its interest rate for three times this year.

Trump’s plan to abandon the Trans-Pacific Partnership, Jimmy said, will also change the constellation and structure of global trade.

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Pekanbaru Can be New Center of Investor Growth: IDX
Tempo, 23/01/2017

The Indonesia Stock Exchange (IDX) of Pekanbaru Chapter reported that the city of Pekanbaru in Riau province has the potential to become the center of investor growth due to the high enthusiasm of the people in the province to make investment.

"In addition, this potential is also strengthened by the population of Pekanbaru that reaches 1 million people,” said Head of IDX Riau Branch Office Emon Sulaiman in Pekanbaru on Sunday (22/1).

He added there are around 9,100 people who have the potentials to become investors in Riau province, in which around 4,000-5,000 of them are in Pekanbaru city.

"We got the figure based on a survey we carried out in 2016,” he said, adding that the number of investors aged between 18-25 years old reaches 2,000 people while the rest is above 40 years old.

Nevertheless, he added, this big potential is not yet proportional to the people’s knowledge on investment.

"The people’s knowledge about investment and capital market is still very limited; so most of them do not understand types of investment. Therefore we continue to improve their knowledge (on investment and capital market) by speeding up the spread of information,” he added.

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Gov`t Plans Reclamation Project in Patimban
Tempo, 23/01/2017

Deny Juanda Puradimaja, Assistant for Economic and Development, West Java Regional Secretary, said that Patimban port project in Subang will include land reclamation.

“It will have a U-shape, [the inner part] will be allocated for the port. It’s been planned,” he told Tempo on Friday, January 20, 2017.

Deny said that the Patimban port will consist of two areas, a 350 hectares of U-shaped reclaimed island and 250-300 hectares of land area. Two bridges will be built to connect the coast with the reclaimed island.

“One is about 900 meters [in length], the other is 800 meters. So it would not disturb the mangrove [forest], one bridge is heading that way [to reclaimed island], the other is this way,” he said.

Deny said that the environmental impact assessment (Amdal) of the proposed Patimban port had been prepared by the Ministry of the Environment and Forestry.

“They have started preparation of the Amdal; however, it had not been finalized pending the spatial planning. The spatial planning has now been done, it can now be finalized,” he said.

Deny said that the Amdal is required for the issuance of the Location Determination, that will include the environmental assessment of the planned reclamation in Patimban.

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Pelindo II to Build New Seaport in West Kalimantan
Tempo, 23/01/207

State-owned airport operator PT Pelindo II announced it would build an international seaport in Pantai Kijin, West Kalimantan.

Investment value of the seaport is around Rp5 trillion. The seaport is located in Sungai Kunyit district, Mempawah regency, West Kalimantan province.

PT Pelindo II Risk Management and Technical Director Dani Rusli Utama said that the construction of the seaport is very urgent in order to reduce logistic costs in West Kalimantan province.Previously, he said it was Dwikora seaport in Pontianak that was used.

"Actually Dwikora port has been optimized and investment of the seaport’s equipment and the capacity has been increased 2–3 times,” he said on Saturday.

He added that the capacity of Dwikora seaport was initially only 100,000 Teus but now it has increased into 250,000 Teus. However, the number of ships that dock in the seaport has continued to rise over the year.

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Wika To Sign Contract For Highspeed Railway Next Week
Antara News, 23/01/207

State-owned construction firm Wijaya Karya (Wika) plans to sign the engineering, procurement and construction (EPC) contract for the Indonesia-China high-speed railway connecting Jakarta and Bandung, West Java next week.

The contract will be signed with the Indonesia-China joint firm Kereta Cepat Indonesia China (KCIC), which oversees the project.

“There will be us and two Chinese contractors. We have 30 percent stake,” Wika president director Bintang Perbowo said on Thursday.

The contract, valued at Rp 16.8 trillion (US$1.2 billion), is part of the construction of the $5.2 billion project that will span 142.3 kilometers across the two cities.

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Minister Lauds Yogyakarta For Supporting Construction Of New Airport
Antara News, 23/0/2017

Transportation Minister Budi Karya Sumadi has praised the governments of Kulon Progo District and Yogyakarta special province for their support to realize all phases of the construction of a new airport in Temon Sub-district.

"We, on behalf of the central government, highly laud Sultan HB X (the governor of Yogyakarta special province) and the Kulon Progo district government for their support to this plan. Without the support, we would not be able to realize the construction of the airport. We believe if we remain firm, the project will run faster," he stated while inspecting the planned site for the airport in Temon Sub-district, Kulon Progro District, on Saturday (Jan. 21).

The minister said he would urge President Joko Widodo (Jokowi) to inaugurate the groundbreaking ceremony for the construction of the airport.

He believed Kulon Progo would become a strategic tourist destination once the construction of the airport was completed.

"As we can all see, the public is enthusiastic to transform the district into an advanced one," he stated.

The central government believes that the Yogyakarta special province has great potential to become a good tourist destination, he emphasized.

"We come here to ensure that the planned construction (of the airport) has been on the right track. We have received a report from the president director of state airport operator Angkasa Pura I that it is proceeding as per plan," he stated.

Only Bali has been the most popular tourist destination, he noted.

In future, the government will develop three other tourist destinations, including Yogyakarta, Lake Toba in North Sumatra, and Mandalika in West Nusa Tenggara, he remarked.

"We are proud of being Yogyakartas residents. The new airport in Kulon Progo will become a very good one and meet international standards to support growth in local tourism," he said.

The construction of the airport, including land clearance, will cost Rp9.3 trillion, he added.

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Cepu Block to Boost Oil Production
Tempo, 23/01/2017

Cepu oil block in Central Java, which is run by Exxonmobil, will increase its oil production above 200,000 barrels per day or 20 percent from the target.

“As for the exact amount, we don’t know yet but clearly it’s above 200,000 barrels per day. The capacity of machine that we have is still able to meet the target,” said Exxonmobil Cepu Limited Vice President for Public and Government Affairs Erwin Maryoto in Cepu on Saturday (21/2).

According to Erwin, the current capacity is 185,000 barrels per day.

He added that Exxonmobil has conducted a test several times and it showed that the company can consistently produce 203,000 barrels per day.

In the meantime, Energy Minister Ignasius Jonan said if oil production at the block increases, it would bring a positive impact for the country. Nevertheless, there are requirements to be met, he said.

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Ministry to Continue Waste-fired Power Plant Programs in 7 Cities
Tempo, 23/01/2017

Waste Management Director of the Environment and Forestry Ministry R. Sudirman said the development of waste-fired power plants in even cities would still proceed as planned.

The decision was made although the Supreme Court annulled the legal basis of the program as it was considered not environmentally friendly.

“It will still proceed,” Sudirman said.

He added that the Presidential Regulation Number 18 of 2016 on the acceleration of waste-fired power plants in Greater Jakarta, Tangerang, Bandung, Semarang, Surakarta, Surabaya, and Makassar annulled by the supreme court is not the only legal basis for the program.

Sudirman added that program has been included in the National Strategic Policies and Presidential Regulation Number 18. He also said the seven cities appointed to develop the power plants also have problems in waste management.

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Indonesia-US Relations Will be Better, President Jokowi Says
Tempo, 23/01/2017

President Joko ‘Jokowi’ Widodo expressed his optimism that Indonesia–US relations would be even better following the inauguration of Donald Trump as the 45th President of the United States on Friday (20/1).

"I am optimistic that Indonesia-US relations will be better and it has to benefits both sides,” the President said after taking part in an archery competition in Bogor on Sunday.

On that occasion, Jokowi also congratulated Trump for his inauguration and noted that his inauguration address stresses mutual cooperation with other countries.

"I underline that (the cooperation) is the one that gives mutual benefits. We are optimistic that Indonesia-US relations will be better,” he added.

President Jokowi also said he had already phoned President Trump.

"Donald Trump told me that he has many friends in Indonesia and has business in Indonesia as well. He told me that,” Jokowi said.

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Raja Ampat to Organize Various Festivals to Lure Tourists
Tempo, 23/01/2017

The district administration of Raja Ampat in West Papua Province will organize various festivals to lure tourists to the island. The planned festivals will be part of the tourism campaign for the region, according to the Head of Raja Ampat tourism office, Yusdi Lamatenggo, on Saturday (Jan. 21).

This years list of festivals include a maritime festival, a flute and drum festival, the Wonderful Misol festival, the Wonderful Salawati festival, the Wonderful Waigeo festival, a fish cooking festival and a Red and White festival.

There will also be a spiritual festival, a blue sea festival, the Raja Ampat Fair and the Raja Ampat childrens reading festival. The events are also intended to preserve and promote the regions local culture and arts, he added.

In an effort to improve transportion access to Raja Ampat, the government has also launched several key infrastructure projects on the islands. Regular transportation will be made available from the regional capital of Waisai to other islands, including Misol Island.

"Foreign and local tourists will now be able to visit the islands without having to hire expensive speedboats," explained Lamatenggo.

The Wing Air Lion Group will also operate direct return flights from Jakarta to Manado and Waisai to improve the access to West Papua from outside the region, he said.

"At the moment, tourists wishing to visit Raja Ampat have to take a long flight from Jakarta to Sorong," he added.

The Indonesian archipelago of Raja Ampat, fondly called the Living Eden or Paradise on Earth, was a lesser-known tourist destination and was familiar only to intrepid travelers and avid divers. Considered to be a crown jewel in Indonesia, Raja Ampat has crystal clear turquoise waters and islands covered by dense green forests and mangrove swamps.

Located in an area called the "Coral Triangle" between the Pacific and Indian oceans in eastern Indonesias West Papua province, the world is now taking notice of Raja Ampat after the Indonesian government intensified its tourism campaign to promote the region.

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