Update News 11 October 2017


In the News




Top five ASEAN economies to grow over 5%: IMF outlook
The Jakarta Post 11 October 2017

Indonesia is among the top five ASEAN countries that are expected to surpass 5 percent economic growth this year amid the projected slight recovery in the global economic condition, the International Monetary Fund (IMF) has said in its latest report, published Tuesday.

In the fall edition of its World Economic Outlook (WEO), which was  published on Oct. 10, the IMF projected that growth in the ASEAN-5 economies of Indonesia, Malaysia, the Philippines, Thailand and Vietnam were expected to reach 5.2 percent at year-end, higher than the 5 percent projected in April.

The upward projection in the five ASEAN countries was partly due to the stronger-than expected external demand from China and Europe, the fund said.

“In the rest of the emerging market and developing Asia, growth is expected to be vigorous and marginally higher than in the April 2017 WEO,” it read.

More specifically, economic activity this year is projected to expand by 5.2 percent in Indonesia, 5.4 percent in Malaysia, 6.6 percent in the Philippines, 3.7 percent in Thailand and 6.3 percent in Vietnam.

The IMF’s projection for Indonesia was slightly higher compared to the World Bank’s, which recently revised its economic growth forecast for the country to 5.1 percent, a slight decrease from the 5.2 percent in an earlier forecast.

The government had also projected that economic growth would reach 5.2 percent in the 2017 revised state budget, up from 5.1 percent in the original budget.

As for its worldwide projection, the IMF revised up global economic growth to 3.6 percent in 2017, only 0.1 percentage point higher than its April forecast.

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Govt Prepares Rp400 bn for Sky Toll Program
Tempo.co 11 October 2017

TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi said the government has prepared Rp400 billion budget for the upcoming sky toll program. 

The amount will be used to build airport infrastructures such as runways and air traffic controllers in airports that will pass through the sky-toll route.

The sky-toll program was introduced to reduce the price disparities of staple foods in Indonesia’s Eastern regions up to 20 percent. It will also supply necessity goods to cities in Papua and Kalimantan that are located in elevated areas.

“The sky-toll program has been effective for the last two months. Our goal really is to reduce the prices of the main staple up to 20 percent,” said Minister Budi.

Three cities will be made as the center of the sky toll route, namely Timika, Wamena, and Dekai. The three cities will then provide staple needs to 12 cities such as Ilaga, Kenyam, Mamit, Kaga, Sumo, Ubahak, dan Karopun.

The Ministry’s Director of Distribution and Logistics Facility Sihard Hardjopan Pohan said that the program will utilize older model cargo planes that have gone through an operational age of 30-40 years. The aircraft models that will be used among others are Boeing 737 Freighter Conversion, Civilians Turbo Prop, and the Fokker 27 and 25

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Jakarta Bay reclamation project resumes as moratorium lifted
Tempo.co 11 October 2017

Jakarta (ANTARA News) - Coordinating Minister for Maritime Affairs, Luhut Binsar Pandjaitan, on Oct 5 issued a Ministerial Decree No S-78-001/02/Coordinating Minister/Maritime/X/2017 to revoke a decree on moratorium of Jakarta Bay reclamation project issued in 2016 by his predecessor, Rizal Ramli.

Pandjaitan sent a letter informing outgoing Jakarta Governor Djarot Saiful Hidayat that the moratorium was officially lifted as developers had fulfilled several requirements demanded by Ramli. 

The requirements included a revision to the Environmental Impact Analysis (Amdal), taking into account technical designs for power plant pipes, sedimentation mitigation, and sailing routes for traditional fishermen.

Pandjaitans decree was issued just 10 days before the upcoming inauguration of Jakarta Governor-elect Anies Baswedan and his deputy, Sandiaga Uno, who during their regional head elections (pilkada) campaign had promised their constituents, particularly traditional fishermen, to cancel the reclamation project. 

Pandjaitan, however, affirmed on Oct 9 that Baswedan cannot cancel the reclamation project in Jakarta Bay, because the project was under the central governments control. 

Following the revocation of the moratorium, projects of the C, D, and G Islands in North Jakarta Coast would resume.

He explained that he had demanded the developer to find a solution for the undersea cable network of coal-based power plants (PLTU) in Muara Karang, which were affected by the project. 

"The interest of local fishermen has also been duly taken into consideration for carrying out the reclamation project. A channel has been provided for fishermen going out to or returning from the sea. Thank God, there is no injustice committed against fishermen. 

This is in line with the program of the Maritime and Fisheries Ministry to develop the port at Muara Baru into a modern fish market," Pandjaitan added.

The Indonesian Businessmen Association (Apindo) has lauded the governments decision to revoke the moratorium on reclamation in Jakarta Bay.

They believed that the Jakarta Bay reclamation project will help boost new economic growth and positive sentiment for Indonesia.

"A new economic area and growth will emerge," Hariyadi Sukamdarni, the chairman of Apindo, stated on Sept 11.

The government had issued the moratorium based on political considerations, he remarked. In fact, reclamation development is normal in several countries, he pointed out.

Traditional fishermen in North Jakarta and surrounding areas, however, have expressed their objection towards the Jakarta Bay reclamation project. 

The Indonesian Traditional Fisherman Association (KNTI) has stated that the reclamation projects in several regions would affect the sea prevent traditional fishermen from having access to the marine natural resources. 

"Greedy businessmen behind the reclamation projects in 28 Indonesian coastal areas are snatching the ocean from traditional fishermen," Marthin Hadiwinata, the chairman of KNTI, noted.

Under the guise of conducting development of coastal regions that were claimed to have been damaged, for instance, in Jakarta Bay, greedy businessmen have gained multiple profits from the reclamation projects by carrying out destructive projects, he claimed.

Based on studies on several reclamation projects, there were indications of the projects having violated legal procedures, ranging from zone planning and licensing to implementation concerning environmental assessment.

Meanwhile, the Peoples Coalition for Fishery Justice (Kiara) has opined that reclamation is not suitable for the Indonesian nation that is spread over a vast area.

"Reclamation is not really suitable for this nation. It could be checked. There are plenty of land areas that could be used," Kiara Secretary General Susan Herawati Romica noted on Sept 26.

The NGO noted that trying to emulate Singapore in terms of conducting reclamation is a wrong step, as it is a small country, while Indonesia is large and has a vast area.

According to the 2016 data of the Kiara information and data center, more than 107 thousand fishermens households were affected by 16 reclamation projects that have been spread across Indonesia.

Mining activities in coastal areas and small islands in 20 regions in the country have resulted in the loss of livelihoods of the local people and destruction of the coastal ecology.

As for the Jakarta Bay reclamation project, one of serious questions often asked is the source of sand, corals, and other solid materials needed for building the man-made islands. Massive sand and coral mining will endanger or even make an island and several islets vanish.

Since the Jakarta Bay project is relatively close to the Thousand Islands (Kepulauan Seribu), several environmentalists suspect the reclamation project might source sand and coral from the Thousand Islands, which might lead to the disappearance of several islets in the area. 

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Namur, Bandung ink sister-city partnership
ANTARA News 11 October 2017

Namur, Belgium (ANTARA News) - The mayors of two cities -- Bandung in West Java Province and Namur in Belgium -- have established a "sister-city" partnership to improve cooperation in the economy, education, culture, and environment sectors. 

After signing the memorandum of understanding, Monday, Namur City Mayor Maxime Prevot informed Antara London that the sister-city agreement has bridged the gap between the two regions for developing more partnerships in future. 

"The fact now is that several western countries are looking towards Asian countries and cities for developing further partnership in several sectors," Prevot remarked, while adding that he planned to visit his counterpart in Bandung next year.

Hence, he explained that the establishment of a sister-city agreement will serve as a platform to share knowledge and experiences between the two regions. 

Meanwhile, Bandung City Mayor Ridwan Kamil stated soon after arriving at the Brussels Airport that he had outlined three missions in Belgium. 

The missions include the signing of a sister-city partnership agreement with Namur, launching the "Little Bandung," a center to promote Indonesian products crafted by small- and middle-scale enterprises, and participating in the Europalia festival to be held this month in Belgium.

Kamil further noted that the plan to develop the Little Bandung business center was first discussed during the visit of Princess Astrid Jisephine from the Kingdom of Belgium to Bandung last year.

Some major products, such as jewelry, batik fabric, footwear, crafts, and traditional dishes, were showcased to the public at the business center. 

Miya Panama, a local residing since a decade in Namur, expressed happiness on the inking of the sister-city agreement between the two regions, as the partnership would be beneficial to the people of Bandung and Namur to flourish together. 

Apart from the agreement, Indonesia has also been appointed as the host country of the Europalia biennial arts event at the Mont des Arts in Brussels, Belgium, this month.

Established since 1969, the event has not only showcased art exhibitions but also other performances and workshops. 

According to the Europalia official website, this years event featured some main attractions, including the presentation of Indonesian coffee, workshop on the paper cutting technique, traditional music and dance performances, as well as an exhibition on Indonesian ancestors and artifacts.

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Indonesia, Italy agree to intensify bilateral cooperation
Anatara News, 11 October 2017

Jakarta (ANTARA News) -  Indonesia and Italy agreed to intensify bilateral relations in various sectors during Indonesian Foreign Affairs Minister Retno Marsudis visit to Rome on Monday.

During a bilateral meeting with her Italian counterpart Angelino Alfano in Rome, Italy, Minister Marsudi said Italy is one of Indonesias important partners in the European Union (EU), while the country is also the third-largest trading partner of Indonesia in the EU, according to a press release received here on Tuesday.

Issues related to bilateral trading and investment became the common concern of both countries during the meeting.

Minister Marsudi emphasized that Italian entrepreneurs had long been active in Indonesia, especially in the fields of energy and infrastructure.

"Indonesias open economy has created greater opportunities for cooperation between the two countries entrepreneurs in various other sectors," Minister Marsudi pointed out.

Specifically highlighting palm oil issues, Marsudi called for ensuring fair treatment to prevent discrimination against Indonesian palm oil.

Marsudi offered an overview to the Italian foreign minister that the palm oil industry receives significant attention from the Indonesian government, as it concerns the livelihoods of some 20 million Indonesian citizens.

In addition to focusing on issues related to bilateral trade, the two ministers also discussed the progress in negotiations for the Indonesia-EU Comprehensive Economic Partnership Agreement. 

The Indonesian foreign minister affirmed that success in the negotiations will open up opportunities to forge economic cooperation for countries in the region, including Italy.

Indonesia has also raised the interfaith dialogue cooperation issue with Italy.

"I welcome the holding of an interfaith dialogue seminar in Rome for the fourth time on this October 11, 2017. This seminar bears the theme pluralism and integration," Marsudi remarked.

Both ministers also exchanged ideas on the handling of migration issues in each region.

Indonesia elaborated on its active role in addressing the issue of migration in the region through the Bali Process.

The two ministers agreed on the importance of cooperation with the country of origin, including through the development of an inclusive economy.

Italy ranks in the 19th position as a destination country for Indonesias non-oil and gas exports.

Italy is also the largest destination country of Indonesias crude palm oil exports in the EU and a development partner of Indonesias creative industry.

The total bilateral trade between both countries in 2016 was recorded at US$2.96 billion, with a surplus of $185 million for Indonesia.

Earlier, prior to the bilateral meeting, Minister Marsudi had attended a dialogue in which over 50 Italian think tanks and entrepreneurs had participated.

The dialogue was held by the Italy-ASEAN Association and was led by Executive Vice President of the association, Ambassador Pipan.

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Helmuth Ludwig, Siemens’ Global Head of Information Technology, highlights joint development projects with Bentley Systems at Year in Infrastructure 2017 Conference
Anatara News 11 october 2017

SINGAPORE--(Antara/BUSINESS WIRE)-- In his keynote at Bentley’s annual event for sharing thought leadership relevant to infrastructure design, construction, and operations, Helmuth Ludwig, Global Head of Information Technology for Siemens, presented a scenario illustrating the companies’ shared contributions towards digital workflows and digital cities, and provided an update on the various joint development projects underway with Bentley Systems, initiated as part of their strategic alliance that was announced in November 2016. 

These jointly funded and resourced development projects will result in jointly offered cloud services to advance their respective users’ strategies in going digital.

“Siemens and Bentley recognize the unprecedented opportunity that ubiquitous connectivity brings for assets with digital engineering models that incorporate both their physical and functional characteristics,” said Mr. Ludwig. “Siemens’ PLM has a head start in what we call the product digital twin, production digital twin, and performance digital twin. 

Combined with Bentley’s BIM head start we will especially take the performance digital twin to a new level, and we can accelerate realizing the full potential of digital cities, such as here in Singapore. 

Our cooperative developments are advancing rapidly, which I think can be attributed to our shared commitment to openness and interoperability.”

Mr. Ludwig’s presentation illustrated the approach Siemens takes to integrating and digitalizing the entire customer value chain in general, and as a particular example, he described the advances for connected asset visibility that can be achieved with the integration of Siemens and Bentley technologies. 

In the workflow described by Mr. Ludwig, a process plant was captured, through digital photography, in its as-operated state with Bentley’s ContextCapture software, providing immersive visual context of the plant. 

That 3D “production digital twin” was then linked to the IoT-enabled components in the operating plant via MindSphere, Siemens’ cloud-based, Internet of Things operating system. Using Bentley’s AssetWise, the MindSphere inputs were configured in a browser, and in the context of the 3D model, as the user navigated the “performance digital twin” to query asset health of various components—in particular a motor vibrating to failure. 

The “product digital twin” of a replacement motor was accessed with Siemens PLM software, and bespoke motor mounts designed and analyzed to solve the vibration problem—and then 3D-printed. 

The same logic can be applied to digital cities, so that through such connected asset visibility, engineering problems can not only be detected but also solved, leveraging fully digital workflows to improve asset performance.

Other digital projects are uniquely bridging Siemens and Bentley technology to address some of today’s critical infrastructure imperatives. 

For example, in energy management, new distributed energy resources (DER) like wind, solar, and energy storage, require electrical grids to be bi-directional, so the GIS and network design capabilities in Bentley’s OpenUtilities are being linked with Siemens PSS SINCAL for network analysis modeling to deliver an integrated DER planning and design assessment solution.

The global push for urbanization and the increasing requirements of mobility of people and goods have accelerated the demand for rail electrification via overhead and rigid contact lines. 

To meet this demand, the two companies are working together to industrialize the electrification process by integrating Siemens Sicat Master, for rail catenary overhead contact line modeling and analysis, with Bentley’s newly announced OpenRail Designer.

These new joint developments build on the continued collaborative work done between Siemens and Bentley converging Bentley’s BIM and reality modeling software with Siemens’ product design and production process engineering solutions, and with the integration of Siemens’ COMOS and Bentley’s OpenPlant. Additional joint projects spanning other Siemens divisions will be announced over the coming year.

Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability, and internationality for more than 165 years. 

The company is active in more than 200 countries, focusing on the areas of electrification, automation and digitalization. 

One of the world’s largest producers of energy-efficient, resource-saving technologies, Siemens is a leading supplier of efficient power generation and power transmission solutions and a pioneer in infrastructure solutions as well as automation, drive and software solutions for industry. 

The company is also a leading provider of medical imaging equipment – such as computed tomography and magnetic resonance imaging systems – and a leader in laboratory diagnostics as well as clinical IT.

 In fiscal 2016, which ended on September 30, 2016, Siemens generated revenue of €79.6 billion and net income of €5.6 billion. At the end of September 2016, the company had around 351,000 employees worldwide. Further information is available on the Internet at www.siemens.com.

About Bentley Systems

Bentley Systems is a global leader in providing engineers, architects, geospatial professionals, constructors, and owner-operators with comprehensive software solutions for advancing the design, construction, and operations of infrastructure. 

Bentley users leverage information mobility across disciplines and throughout the infrastructure lifecycle to deliver better-performing projects and assets. 

Bentley solutions encompass MicroStation applications for information modeling, ProjectWise collaboration services to deliver integrated projects, and AssetWise operations services to achieve intelligent infrastructure– complemented by managed services offered through customized Success Plans.

Founded in 1984, Bentley has more than 3,000 colleagues in over 50 countries, more than $600 million in annual revenues, and since 2011 has invested more than $1 billion in research, development, and acquisitions.

Additional information about Bentley is available at www.bentley.com. For Bentley news as it happens, subscribe to an RSS feed of Bentley press releases and news alerts. Visit The Year in Infrastructure Conference website for highlights of Bentley’s premier thought-leadership event. To view a searchable collection of innovative infrastructure projects from the annual Be InspiredAwards, access Bentley’s Infrastructure Yearbooks. To access a professional networking site that enables members of the infrastructure community to connect, communicate, and learn from each other, visit Bentley Communities.

To download the Bentley Infrastructure 500 Top Owners ranking, a unique global compendium of the top public- and private-sector owners of infrastructure based on the value of their cumulative infrastructure investments, visit BI 500.

About The Year in Infrastructure 2017 Conference

Bentley’s Year in Infrastructure 2017 Conference is a global gathering of leading executives in the world of infrastructure design, construction, and operations. 

The conference features a series of forums, presentations, technology demonstrations, and interactive workshops exploring the intersection of technology and business drivers, and how they are shaping the future of infrastructure project delivery and asset performance. For more on the conference, visit www.bentley.com/yii2017.

The Year in Infrastructure 2018 Conference will be held in London, 16-18 October.

Bentley, the “B” Bentley logo, Be, AssetWise, ContextCapture, MicroStation, OpenPlant, OpenRail, and ProjectWise are either registered or unregistered trademarks or service marks of Bentley Systems, Incorporated or one of its direct or indirect wholly owned subsidiaries. All other brands and product names are trademarks of their respective owners.

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Investors Needed to Develop 30 Ports, Airports
Tempo.co, 11 October 2017

TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi has invited both local and foreign investors to become the operators of 20 ports and 10 airports. 

According to him, the government will support investment in the maritime and logistics sectors. “Including by deregulation. Scrapping rules that do not support investment,” Budi said in his opening speech yesterday at Indonesia Transportation Logistics & Maritime Week 2017 at JIExpo Kemayoran, Central Jakarta.

Budi promised that he will evaluate ministerial regulations that hamper investment. He said that the government is determined to create an opportunity for private firms, both home and abroad to operate 30 ports and airports.

The airports include those in Belitung, Bengkulu, Palangka Raya, Tarakan, Samarinda, Banyuwangi, Palu, Kendari and Jayapura and ports in Probolinggo, Bima, Sintete and Waingapu.

In the past two months, the Transportation Ministry has allowed private firms to operate ports in Probolinggo, Sintete, Waingapu and Dima. 

Budi said that several companies have already make investment, such as state-owned Pelindo II, Pelindo III and Pelindo VI. “We now encourage private firms to join us, but negotiation is ongoing,” he said.
 
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Jokowi Signs Rule on 16th Economic Policy Package
Tempo.co, 11 October 2017

TEMPO.CO, Jakarta - President Joko Widodo (Jokowi) has signed the Presidential Regulation on the 16th economic policy package, which covers the acceleration of business licensing.

The Presidential Regulation registered as PP No. 91/2017, was signed today, Coordinating Minister for the Economy Darmin Nasution said told reporters at the presidential palace on Tuesday, October 10.

The 16th economic policy package was first introduced by Jokowi in August. In addition to expediting licensing process, the policy package was also issued to resolve obstacles in the implementing and utilizing information technology.

Darmin said that he had proposed to the president to hold a plenary cabinet session to discuss necessary follow-ups to the policy package. 

The goal, he said, is to make ministries and state agencies understand how the policies will be implemented and carried out, such as by establishing task forces.

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BI teams up with Go-Jek to distribute 1 million e-money cards in Greater Jakarta
The Jakarta post 11 october 2017

Bank Indonesia (BI) has teamed up with popular ride-hailing application Go-Jek to distribute electronic money following the introduction of non-cash payments on toll roads, particularly in Greater Jakarta.

Under the agreement, consumers can use the feature Go-Mart to buy electronic cards from state-owned lenders incorporated in the State-Owned Banks Association (Himbara): Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI) and Bank Tabungan Negara (BTN), as well as private lender Bank Central Asia (BCA).

The agreement, however, has yet to include top-up services.
“Go-Jek is one of the companies with access to the people with effective and wide penetration,” said BI Jakarta branch head Doni Joewono in a press conference on Tuesday.

Aiming to fully implement the cashless program by Oct. 31, BI and toll operator PT Jasa Marga have widely disseminated information about the policy since last month.

By Oct. 9, electronic transactions on toll roads nationwide accounted for 75 percent of all payments. In Greater Jakarta alone, electronic payments accounted for 82 percent of all transactions.  

The figures reveal that to fully implement the payment system, 1.5 million more electronic cards are needed. Of the number, Greater Jakarta requires 800,000 to 1 million more cards.

Pingkan Irwin, Go-Jek’s marketing-core products vice president, said that Go-Jek drivers could help the public buy electronic cards in convenience stores or banks through the Go-Mart feature.

Although Go-Jek can currently only help in buying cards, she said there was a possibility that Go-Jek could help with credit top-ups.

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Garuda to retire Boeing 747-400s
The Jakarta post 11 october 2017

National flag carrier Garuda Indonesia announced on Monday that it will stop operating its Boeing 747-400 planes, which have been flying since 1994 and have logged up 89,900 hours flying time.
Garuda Indonesia president director Pahala N Mansury said the retirement of the three planes was part of the airlines’ effort to revitalize its fleet, which currently relies on Boeing 777-300 ER planes that consume less fuel.

Pahala said in his statement on Monday that the last of the planes to fly was on Oct. 6 from Medina in Saudi Arabia to Makassar.

“The last flight of aircraft PK-GSH marked the retirement of all three Boeing 747-400s owned by Garuda Indonesia. From 1994 to 2017, Garuda Indonesia operated three B747-400 planes with registration numbers PK-GSI, PK-GSG and PK-GSH,” the statement added.

Pahala said the planes, with a capacity of 428 seats, had played important roles in the operation of Garuda Indonesia for 23 years, including flying Indonesian haj pilgrims to Mecca, Saudi Arabia.

Currently the airline operates B777-300ER and A330-300/20 aircraft, which apart from being more fuel-efficient also provide a more comfortable flight for passengers, particularly on long-haul flights.
Garuda Indonesia’s B747-400 planes served a number of international routes including to Amsterdam, London, Frankfurt, Munich, Zurich, Paris, Madrid, Vienna, Tokyo Narita, Nagoya, Osaka, Seoul, Beijing, Shanghai, Hong Kong, Taipei, Singapore, Bangkok, Kuala Lumpur, Jeddah, Riyadh, Dammam, Medina, Abu Dhabi, Cairo, Melbourne, Sydney, Brisbane and Perth

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Papua to discuss distribution of 10% Freeport shares
The Jakarta Post 11 October 2017

Provincial and regental administrations in Papua are to discuss the distribution of 10 percent shares in gold and copper miner PT Freeport Indonesia after Freeport agreed to divest 51 percent of its shares, reported Antara.

Papua Governor Lukas Enembe said the shares should be distributed to the Papuan people through “one door”, suggesting that no single party should discuss the matter with the central government on behalf of the Papuan people.

“The provincial administration and the administrations of regencies surrounding the mining site, as well as leaders of customary communities, will discuss the details [instead],” Antara quoted Lukas's statement on Tuesday .

Read also: Freeport divestment deal still far from settlement
PT Freeport Indonesia's agreement to divest 51 percent of its shares was announced by Freeport McMoran CEO Richard Adkerson during a joint press conference n Aug. 29 with Finance Minister Sri Mulyani Indrawati and Energy and Mineral Resources Minister Ignasius Jonan. 

American mining giant Freeport McMoRan is the parent company of Freeport Indonesia.

“Once the central government agrees to give [Papua] 10 percent of the shares, we will buy them. We will discuss the technical details of the shares' purchase,” said Lukas, adding that his administration was following progress of the ongoing discussions between the central government and Freeport representatives.

Although Freeport agreed to divest its shares in principle, the company has not yet accepted the the government's proposed divestment scheme, which includes the shares' valuation and the divestment schedule. (bbn)

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