Updates News december 21, 2016

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Government To Issue Another Economic Policy Package Soon: Darmin
Antara News, 21 December 2016

Coordinating Minister for Economy Darmin Nasution said a new, the 15th economic policy package, would be issued toward the end of this year or early 2017 at the latest.

"We will continue with the policy package, the 15th to be announced before the end of this year or early next year," Darmin said addressing a meeting on "Prospects of Indonesian Economy" 2017 here on Monday.

Darmin, however, did not give the gist of the new economic policy package hint, but he promised the new policy would support the momentum of investment growth in 2017.

"The package is quite important . We have prepared the packages to attract investment both domestic and foreign investments," he said.

Earlier a deputy at the office of the coordinating minister Edy Putra Irawady said discussion was in progress on the 15th economic policy package.

A number of possible focuses in the new package are improvement of logistics system, institutional strengthening of Indonesia National Single Window (INSW) or reorientation of fertilizer subsidy.

The government has since September 2015 issued 14 economic policy packages marked with massive deregulation and streamlining of the bureaucracy aimed at improving investment climate and competitiveness. Thousands of regional regulations considered restrictive on investment were abolished.

The government has issued 99 percent of implementation regulations of the economic policy packages that their impact is expected to be seen in 2017.

One of the results of the series of policy packages is the establishment of Bonded Logistic Centers in a number of areas out side Java to facilitate provision of industrial basic materials.
The most recent police package , the 14th issued in November, 2016 contains the road map of development of e-commerce industry.

of the reasons for issuing the policy package is that the government wants the country to become the largest digital economy in southeast Asia in 2020.

With the road map the electronic trade ecosystem and expansion and efficiency of electronic trading business could be formed

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New Banknotes, Coins With Fresh Designs, Improved Security Features Introduced
The Jakarta Globe, 21 December 2016

Bank Indonesia officially started on Monday (19/12) to circulate banknotes and coins with improved security features and fresh new designs that feature national heroes, sceneries and traditional arts as part of efforts to prevent counterfeiting.

"Our security is among the best in the world," Bank Indonesia Governor Agus Martowardojo told reporters after the launch ceremony. "We have 12 security features for the Rp 100,000 note, including its color, ultraviolet features, thread and recto-verso feature."

Besides the design of the new Rp 100,000 note, the central bank also revealed new looks for six other smaller denomination banknotes and four coins. Bank Indonesia provides a detailed explanation of each design here.

The new Rp 100,000, Rp 50,000, Rp 20,000, Rp 10,000, Rp 5,000, Rp 2,000 and Rp 1,000 bills feature 12 Indonesian national heroes, such as former President Sukarno and Vice President Mohammad Hatta, Djuanda Kartawidjaja and Tjut Meutia on the front. The backs of the bills feature scenery, traditional dancers and flowers.

Each of the banknotes has a color shifting feature that shows different colors from different angles, latent images that show under a special light and tactile marks for visually impaired people. Agus said people can feel the distinguishable design on the banknotes' surfaces.

Meanwhile, the new designs for the Rp 1,000, Rp 500, Rp 200 and Rp 100 coins also show Indonesian heroes on on side and the denomination on the other side.

"This is a form of appreciation for the heroes' service to the country," Bank Indonesia executive director Tirta Segara said in a statement.

The existing rupiah banknotes are still valid and will remain valid until Bank Indonesia retracts it from circulation.

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Govt To Operate Six New Toll Roads In 2017
Antara News, 21 December 2016

To smooth traffic flows in Java and Sumatra, state-owned toll road construction company PT Jasa Marga is developing toll roads that will connect trans-Java and trans Sumatra highways.

PT Jasa Marga aims to finish all toll road projects that have secured concessions by 2019. Some sections, particularly those in Java, are already operational. In 2017, the company plans to operate six new toll roads, with a total length of 235 kilometers (km), in Java and Sumatra.

"The toll roads are developed to reduce traffic gridlocks on the main roads. Moreover, the number of private vehicles virtually exceed the limits," AVP Corporate Communications of PT Jasa Marga Dwimawan Heru said in Bekasi, West Java, on Sunday (Dec 18).

Road users are increasingly facing congestion but their coverage time is expected to be reduced with the construction of the turnpikes.

For this purpose, PT Jasa Marga will open six new toll road sections in 2017. Five in Java and one in Sumatra.

In Java, they are the Semarang-Solo section stretching 17.50 km, the Surabaya-Mojokerto segment with a length of 15.50 km (this is in addition to the one already in operation so that the Surabaya-Mojokerto section can be operated fully) and the Gempol-Pasuruan sector measuring 20.5 km.

The other sections that will be operated in 2017 are the Solo-Ngawi stretching 90.25 km, the Ngawi-Kertosono with a length of 49.51 km, and one in Sumatra, namely the Medan-Kualanamu-Tebing tinggi segment in Sumatra with a total length of 41.69 km.

PT Jasa Marga is committed to finish all toll road projects by 2019, in line with its concrete contribution to national economic growth by developing infrastructure and improving connectivity among regions.

The government is poised to connect its ambitious trans-Java toll roads, stretching 806 km from Cikampek in West Java to Probolinggo in East Java, by 2018.

While some sections are already operational, five sections will begin operation next year.  The other section of the trans-Java toll road is the 116.7 km Cikampek-Palimanan (Cikapali) section in West Java, which was inaugurated by President Joko Widodo (Jokowi) in June last year.

This toll road is part of the trans-Java toll road project that will connect Merak in Banten, the western tip of Java, and Banyuwangi in the eastern part of the island. The government gives priority to sections included in the first phase construction.

The first phase construction covered nine sections stretching 615 kilometers. They are built at a cost of Rp51.41 trillion.

Those sections are Cikampek-Palimanan, Pejagan-Pemalang, Pemalang-Batang, Batang-Semarang, Semarang-Solo, Solo-Ngawi, Ngawi-Kertosono, Mojokerto-Jombang-Kertosono, and Mojokerto-Surabaya.

In the meantime, in Sumatra, the government is also planning to complete at least eight toll road sections, which are part of the Trans-Sumatra toll roads, in 2019.

The eight toll roads are Medan-Binjai (17 kilometers), Palembang-Indralaya (22 kilometers), Bakauheni-Terbanggi Besar(140 kilometers), Pekanbaru-Dumai (131 kilometers), Terbanggi Besar-Pematang Panggang (100 kilometers), Pematang Panggang-Kayu Agung (85 kilometers), Palembang-Tanjung Api Api (90 kilometers), and Kisaran-Tebing Tinggi (60 kilometers), with a total length reaching 645 kilometers.

Under the presidential decree 117/2015 on acceleration of toll roads construction in Sumatra, eight toll roads would be constructed first with a target to operate the roads by the end of 2019.

The Trans-Sumatra toll roads construction has adopted a state guarantee scheme, where the government would guarantee its funding, to assure that the project could be finished as targeted.

"We call it a state guaranteed model, which will be fully backed-up by the government," Herry Trisaputra Zuna, head of toll road regulator agency (BJPT) of the Public Works Ministry, said in a discussion on Friday.

Herry said that the scheme was adopted, as the government acknowledged the importance to accelerate toll road construction projects for economic development, despite its feasibility being still inadequate.

If the toll roads were built only after being considered as feasible projects, then the land price at that time would be much higher.

Meanwhile, Soebagiono, the Public Works Ministrys director of toll roads and urban areas, said that they have accelerated land clearance process and were working on coordination with some related institutions.

The ministry has also considered the possibility of constructing elevated toll roads in densely populated areas. The land clearance process for Medan-Binjai toll roads has been completed by 83 percent, with 35 percent under construction.

Land clearance processes for Palembang-Simpang Indralaya and Bakauheni-Terbanggi Besar have reached 83 percent and 42 percent, respectively. The target was set in the presidential decree that the (construction of) the eight toll roads would be completed in 2019

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State Railway Firm Launches Multi-Purpose 'Railpay' Card
The Jakarta Post, 21 December 2016

State railway operator PT Kereta Api Indonesia (PT KAI) has launched the multi-purpose 'Railpay' card that can be used for online ticket payment and other digital transactions.

"We are supporting PT KAI's initiative to upgrade its customer service through the launch of this card," State-Owned Enterprises Minister Rini Soemarno said as quoted by Antara news agency during the launch of the card at Juanda railway station in Central Jakarta on Monday "Hopefully, train passengers can enjoy more convenient cashless transactions," Rini added.

PT KAI president director Edi Sukmoro said his company had cooperated with several state banks, including BNI, Bank Mandiri and BRI, to provide the card payment platform.

According to Edi, the card can be used to purchase train, airplane, ship and bus tickets. The 'Railpay' card can be used for commuter trains in Greater Jakarta, Transjakarta buses and Transjogja buses as well as toll fees. The card is also accepted at several convenience store companies.

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Jakarta Administration Earmarks Rp5tn to Build Flats
Tempo, 21 December 2016

Jakarta administration has allocated Rp5 trillion to construct flats in 2017. The allocation for flat development is the highest in the 2017 regional budget.

The administration allocated Rp3.1 trillion for flat development in 2016.Jakarta Governor Sumarsono said that infrastructure sector gets the highest allocation in 2017 regional budget.

“As the administration’s commitment in RKPD [Regional Development Plan], improvement of New Jakarta, the highest allocation is for infrastructure [development],” Sumarsono said at Jakarta City Council Building on Monday, December 19, 2016.

Jakarta administration’s infrastructure development will focus on flats, among others. It aims to establish up to 11,105 flats next year, most of which are carryover projects.

some are single-year projects currently in the tender process.“Some are multi-year [projects], but most are single-year [projects],” he noted.

Jakarta city council has recently approved the 2017 regional budget amounting to Rp70.19 trillion. It is expected that regional working unit (SKPD) can use the budget in early January next year.

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Transjakarta to Apply `One-Man-One-Ticket` System Next Year
Tempo, 21 December 2016

To improve its service, PT Transjakarta will apply one-man-one-ticket system at 12 corridors of Transjakarta Transit Rapid Bus (BRT) on January 11, 2017.

It is done to get the customer journey data and its journey patterns."Thus, from the information can adjust the route thus Transjakarta infrastructure service to customers maximally," expressed Budi Kaliwono, Director of PT Transjakarta, Tuesday (12/20).

Later on, every passenger must have e-ticketing. It is no longer valid as before where the card can be used fellow patrons."Eventually, those who do not tap out, their e-ticketing card will be blocked and unable to tap in for the onward journey," he disclosed.

This mechanism will be evolved for non-BRT bus route. Previously, Transjakarta had introduced a tap-in and tap out system at 12 Transjakarta corridors on October 12, 2016.

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State Seaport Operator To Build Port For Cruise Ships In West Lombok
Antara News, 21 December 2016

State seaport operator PT Pelabuhan Indonesia III (Pelindo III) plans to construct Gilimas seaport in Lembar, West Lombok, to serve cruise ships, an executive has said.

Pelindo III's Lembar chapter general manager Baharuddin said the foundation stone-laying ceremony to mark the start of construction is scheduled for Dec. 22.

"Initially, President Joko 'Jokowi' Widodo was scheduled to officiate the project. But, due to the President's tight schedule in December, State-Owned Enterprises Minister [Rini Soemarno] and Transportation Minister [Budi Karya Sumadi] will be attending the ceremony," Baharuddin said as quoted by Antara on Monday.

The Gilimas seaport will occupy 100 hectares plot of land as part of the extension of the Lembar seaport."We are targeting that by the second half of 2018, cruise ships will be able to dock at the wharf," Baharuddin said.

The construction of the seaport will run in four stages with an estimated cost of Rp 1.2 trillion (US$89.50 million), including for land acquisition.

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Minister Calls on Private Companies to Pitch Oil Refineries
Tempo, 21 December 2016

Energy and Mineral Resources Minister Ignasius Jonan said that private companies are finally allowed to develop oil refinery under Energy and Mineral Resources Minister's Regulation No. 35/2016.

"If we build a refinery, who will serve as the off-taker? If Pertamina was to be the off-taker, then private companies must told pitch that themselves to Pertamina, instead of going through the government," Jonan said when opening a discussion in Jakarta on Monday, December 19, 2016.

Jonan added that the government would provide a general commercial permit for private companies intending to develop an oil refinery and their own gas stations.

"Such a business and exports are allowed. If there is a requirement to meet domestic demands, it will be arranged based on the market," Jonan explained.

According to Jonan, the total capacity of Indonesian oil refinery stands at 1.16 million barrel per day. However, the actual capacity is only 800,000 barrels per day.

Jonan revealed that Pertamina's latest oil refinery development was conducted in Bontang. Therefore, Jonan welcomes private companies to find partners to operate their refineries.

"This is important for the oil and gas industry. In the future, we must introduce two things. The first one is efficiency, because no one can set oil prices.

The second one is competitive ness. We must be able to understand the market. We can’t make something and wonder who’s going to be the off-taker," Jonan said.

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Gov't Mulls Plan to Buys Submarines from Sweden 
Tempo, 21 December 2016

The Indonesian Defense Ministry and the Swedish Defense Ministry signed a memorandum of understanding on cooperation in the primary weapons defense system sector.

Both countries have considered tightening relationship through submarine procurement.

"[Sweden] offers submarines in addition to fighter jets," Indonesian Defense Minister Ryamizard Ryacudu said after the MoU signing at his office in Jakarta on Tuesday, December 20, 2016.

Earlier, the Defense Industry Policy Committee (KKIP) said that there are seven priority programs included in the national defense industry roadmap.

The seven programs are productions of propellant, missiles, medium tanks, radars, fighter jets, and submarines.Sweden-made submarines have been claimed to be the best in the world. One of the submarines, HMS Gotland, tested in the United States in 2005, was able to defeat US submarines and even penetrated dangerous zones.

Ryamizard admitted that no decisions yet have been made in relation to the submarine procurement. Ryamizard revealed that he was invited by the Swedish Defense Ministry to observe their submarine technology."If we decide to by, there will be counter-trade and offset," Ryamizard said.

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Sweden, Indonesia to Enhance Defense Cooperation
Tempo, 21 December 2016

Sweden and Indonesia have signed a memorandum of understanding to deepen their defense cooperation through, among others, technology transfers and joint research and development.

The MoU was signed by Indonesia`s Minister of Defense Ryamizard Ryacudu and Swedish Defense Minister Carl Anders Peter Hultqvist on Tuesday.

"We have officially built the cooperation. In future, we will improve this cooperation," Ryamizard said.
The two countries will cooperate in developing the defense industry through technology transfers, and joint research and production of defense and security equipment.Under the MoU, six areas of cooperation have been identified.

The first relates to exchange of information and views relating to common interests including political and military aspects of maritime security and international issues.

Second, the two countries will work together to exchange best practices and promote cooperation between agencies engaged in research and development, science and technology, and other relevant agencies.

Third, there will be exchanges in the field of logistics and maintenance support.The two nations will also work to support technology transfers, joint research, joint production, joint marketing and quality assurance.

Fifth, the two countries will seek to jointly develop and improve training and education on defense and military at all levels, including civilians at the Ministry of Defense.

The two countries will also work together on military medicine and military health services.
Swedish Minister Hultqvist welcomed the signing of the MoU.

"Cooperation between Sweden and Indonesia has been established long before and the signing of the memorandum of understanding is a step forward to deepen the defense cooperation between the two countries," he said.

Hultqvist added that the MoU includes training and education as well as exchange of officials between the two countries.

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