Update News January 04, 2018

In the News

Jakarta government sets up corruption prevention committee
Antara News, 04 January 2018

Jakarta (ANTARA News) - The Jakarta Government has set up a corruption prevention committee (PK Committee) and appointed Bambang Widjojanto, former commissioner of the National Corruption Eradication Commission (KPK), as its chairman.

The committee would help make sure that the Jakarta Administration would apply good governance principles, Anies Baswedan, Jakarta Governor, said here on Wednesday.
The good governance includes accountable, clean, law-abiding, effective, efficient, and participative principles. 

The committee will develop an integrated data system and improve the integrity of the Jakarta Administration`s personnel.
Corruption prevention is a priority of the Jakarta Government. Accountability and good governance principles are among the commitments of Baswedan and his deputy, Sandiaga Uno.

Members of the PK Committee are Nursyahbani Katjasungkana (NGO activist), Oegroseno (former deputy chief of the national police), Tatak Ujiyati (expert in administration management), and Muhammad Yusuf (former chairman of the Governor`s team for development deceleration). 

Widjojanto remarked that Jakarta, as the country`s capital city, should become a role model for the implementation of good governance principles. 

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Trans Sumatra and Trans Java toll roads to operate in 2018
Antara News, 04 January 2018

Jakarta (ANTARA News) - Public Works and Housing (PUPR) Minister Basuki Hadimuljono said the country`s longest toll roads - 2,900 kilometer Trans Sumatra and 660 kilometers Trans Java - will be fully operational before the end of this year. 

Land clearing, the biggest drag in the implementation of toll road projects is expected to be wrapped up in January that implementation could be accelerated, the minister said. 

"Progress in land clearing has come close to 100 percent," he said after attending a coordinating meeting with Minister for State Enterprises Rini Soemarno, Agrarian Affairs and Layout Minister Sofyan Djalil, here on Wednesday. 

He said there is no more difficulty in land clearing for Trans Java toll road project as well as for Trans Sumatra toll road project."If the process of land clearing is completed in January, construction of Trans Java and Trans Sumatra toll road could be operational before the end of this year," he repeated. 

In August the section of the Trans Sumatra toll road could be put into function ahead of the Asian Games in 2018 in Palembamg and in June in a number of other areas ahead of Ied ul Fitr, he said. 

Trans Java`s sections of Pemalang-Batang, Batang-Semarang, Semarang-Solo, Solo-Ngawi, Ngawi-Kertosono, and Pandaan-Malang-Parusuan, would be operational in 2018 ; and the sections of Pasuruan-Probolinggo-Banyuwangi is expected to follow in 2019. 

Land clearing for the 49.5 kilometer section of Ngawi-Kertosono, already reached 99.88 percent , and land clearing for the 77.64 section of Semarang-Solo had been 99.15 percent completed; for the 39.2 kilometer section of Pemalang-Batang reached 99.29 percent, for the 57.5 kilometer section of Pejagan-Pemalang already reached 99.99 percent, the minister said. 

Meanwhile, construction of the Trans Sumatra toll road sections of Bakauheni-Terbanggi Besar, Terbanggi Besar-Pematang Panggang, and Pematang Pangang-Kayu Agung-Palembang is to be finished in May 2018, he said. 

"We could be assured that the construction of the Trasn Java and Trans Sumatra toll roads could completed as expected with the land clearing expected to be finished in January 2018," he said.
The government also is yet to build by phases a 4,350 kilometer Trans Papua toll road, he added. 

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Jokowi urges state officials to increase human resources training programs
Antara News, 04 January 2018

Jakarta (ANTARA News) - President Joko Widodo (Jokowi) has urged state officials to increase human resources training program in 2018.

"In 2018, we should be concerned about human resources training program. Our population is 250 million, of which 60 percent are young people," Jokowi stated during the plenary cabinet meeting at the State Palace here on Wednesday.

The meeting was attended by Vice President Jusuf Kalla, Ministers of the Working Cabinet, TNI Commander Marshal Hadi Tjahjanto, Police Chief General Tito Karnavian, and other state officials.
"Demographic bonuses should be used as our strengths and opportunities, through vocational education and training that have started since 2017," he remarked.

The president also urged his ministers to help improve the labor qualification pyramid in an attempt to increase the skills of workers."As a result, the skilled workers can be absorbed in our industries," Jokowi stated.

Therefore, the skills taught in vocational schools should be in line with the needs of the industry.Moreover, the majority of prospective workers had just finished elementary and junior high school.

"We should improve their skills through job training program, apprenticeship, and certification program. We should expand those programs based on the needs of the industries," the president pointed out.

In addition, the president instructed all ministries and agencies to immediately execute programs and work activities after submitting the 2017 budget execution list."We should focus on eliminating poverty and inequality," he stated.

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Domestic factors cause rupiah`s strengthening: BI
Antara News, 04 January 2018

Jakarta (ANTARA News) - The rupiah strengthened against the US dollar at the start of 2018 thanks to the improving domestic economy, Bank Indonesia (BI) Governor Agus Martowardojo said.
"I think the confidence in the domestic economy has played a great role," he stated here on Wednesday.

The improving domestic economy is reflected by the rising inflow of foreign fund to the capital market, adding to foreign currency supply, he noted. 
"In general, the rupiah has strengthened thanks to the good domestic economy despite risks from external factors," he added.

He assured that domestic economic fundamentals will remain unaffected despite volatile global situation due to the Fed rate adjustment and the US tax reforms.

"The external factors will not more or less change very much, but confidence in the domestic economy is good, as reflected by the capital market and the rupiah`s manageable exchange rate throughout 2017," he remarked.

The rupiah rose 25 points to close at Rp13,489 per dollar at the Jakarta inter-bank spot market on Wednesday morning, as compared to the previous closure of Rp13,514 per dollar.
Money market observer Rully Nova of Bank Woori Saudara Indonesia revealed that the relatively conducive domestic sentiments have pushed the rupiah to appreciate against the dollar.

"The domestic economic data which have been released are quite positive, so that the fluctuation of the rupiah`s exchange rate remains controllable," he pointed out.
He explained that the inflation rate, which met the government target range, has been one of the positive factors for the domestic money market. )

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Government seeks to lower poverty rate to below 10 percent this year
Antara News, 04 January 2018

Jakarta (ANTARA News) - The National Development Planning Agency (Bappenas) has set itself the target of lowering poverty rate to less than 10 percent of the total Indonesian population this year.

"(The poverty rate of) 10.12 percent is the lowest in Indonesian history. We hope it will stay below 10 percent this year," Bappenas Chief Bambang Brodjonegoro said, following a cabinet plenary meeting at the State Palace here, on Wednesday.

The Central Statistics Agency (BPS) earlier stated that the number of Indonesian people living in poverty stood at 26.58 million, or 10.12 percent of the population, as of September 2017. The figure fell 0.52 percent from 27.77 million as of March 2017.

The national poverty rate reached 11.13 percent as of September 2015 and 10.70 percent as of September 2016.
The Bappenas chief noted that he had briefed the House of Representatives (DPR) on the target of poverty rate for this year.

He added that although the poverty rate has declined, the deepness and severity had worsened last year. But this year, the poverty rate declined, with the deepness and severity being slightly good.

To lower poverty rate to less than 10 percent this year, the deepness and severity should be improved, he explained.
Right now, the group of very poor people includes those who live below 80-percent poverty line, he added.

"To promote their living standard, we must improve the deepness and severity by ensuring that social assistance reaches the target recipients," he remarked.
He elaborated that the high poverty rate in 2016 resulted from the fact that the distribution of rice social assistance did not match the target, quantity, and time."If we make improvement this year, the target of 10 percent will most likely be achieved," he pointed out. 

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Sri Mulyani to pursue tax target using official data
Antara News, 04 January 2018

Jakarta (ANTARA News) - Finance Minister Sri Mulyani Indrawati said she would utilize official data held by tax authorities in collecting taxes in 2018. 
"Ahead we will take inventory of our taxation data," the minister said here on Wednesday. 

Sri Mulyani said the data include those recorded during the the last tax amnesty program and from the Automatic Exchange of Information (AEOI) to be adopted by the country in mid this year. 
Under the AEOI, all bank accounts in the world would be accessible for investigations of taxable assets.

"We will look for data from the last tax amnesty record and from AEOI," the minister said. 
In addition the taxation institution would seek harmonization of data of financial reports of tax payers with the Customs authorities, she said. 

"We will back up data about tax payers with data from the Customs office to keep consistency. If there are still tax payers who have three-four versions of financial reports we will put them in order," she said.

She said study would be held to ease the burden of each of tax service office to allow them to focus more securing tax revenues, adding, currently the working burden of the tax service offices has increased as a result of the growing number of tax payers. 

Sri Mulyani said she hopes incentive system provided for tax officers could help trigger an increase in tax revenues. Information technology would also be used in a bid to increase tax revenues in 2018, she said.

Sri Mulyani said the government would set a realistic target in tax revenues in 2018. "We don`t want to create contraction amid the depressed economy. We need to be careful to keep a breathing space for the economy to grow," she added. 

The government has set tax revenue target in the 2018 state budget at Rp1,618.1 trillion. Meanwhile realization of tax revenues in 2017 reached only Rp1,339.8 trillion or 91 percent of the target of Rp1,472.7 trillion.

Tax revenues from the sector outside oil and gas totaled only Rp1,097.2 trillion or 88.4 percent of the target of Rp1,241.8 trillion .  

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Oil, food prices influence 2018 inflation: BI
Antara News, 03 January 2018

Jakarta, Jan 3 (Antara) - Bank Indonesia (BI) Governor Agus Martowardojo has stated that the rise of the world`s oil prices and foodstuffs could affect inflationary movement in 2018. "What to watch out for are the food and oil price volatility ," Agus stated here on Wednesday.

He added that the world`s oil price fluctuation that tends to increase in recent months could affect inflation.

However, he assured that the potential for price rise of Pertamax gasoline, which is caused by the risk of world`s oil price, does not interfere with the 2018 inflation projection of 3.5 percent plus or minus one percent.

Pertamax is a high-Research Octane Number (RON) recommended for vehicles with compression of 9.1-10.1, especially those that have used technology equivalent to Electronic Fuel Injection (EFI) and catalytic converters.

Nevertheless, Agus admitted that oil prices above the assumed average in the 2018 State Budget of US$48 per barrel could have a positive impact on state revenues.
"This can make the budget absorption plan, especially government consumption and social assistance, to be realized and is good for economic growth," Agus remarked.

In addition, he expected that the food price, which has been a major contributor to inflation and has been well maintained throughout 2017, would not be hit by turmoil in 2018.
Earlier, the Central Bureau of Statistics (BPS) recorded an increase in electricity tariffs to become a dominant commodity against national inflation in 2017, which was recorded at 3.61 percent.

In addition to electricity tariffs, contributing to inflation of 0.81 percent in 2017, other dominant commodities contributing to inflation were vehicle registration renewal costs of 0.24 percent, fresh fish of 0.20 percent, and gasoline of 0.18 percent.

Under these conditions, administered price inflation in 2017 was recorded at 8.7 percent, followed by core inflation at 2.95 percent and volatile food prices at 0.71 percent.

"Efforts to maintain the volatility of food price in 2017 was quite successful, and this needs to be maintained for 2018 too. We will take this as a good experience to anticipate unnecessary volatility," BPS? Head Suhariyanto noted.

The achievement of inflation rate in 2017, amounting to 3.61 percent, is under the assumption of inflation set by the government in the State Budget Amendment of 4.3 percent.

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Previously, cybersecurity was handled by a cyber desk in Wiranto`s office.
Tempo.co, 04 January 2018

Although the BSSN chief is directly accountable to President Joko Widodo (Jokowi), the coordination on cybersecurity, which involves BSSN, the Indonesian Defense Forces (TNI), the National Intelligence Agency (BIN), the National Counter Terrorism Agency (BNPT) and the National Narcotic Agency (BNN), is under Wiranto.

Meanwhile, Jokowi installed Major General of the Indonesian Army, Djoko Setiadi, as head of the BSSN at the State Palace on Wednesday.

Setiadi, the former chief of the State Code Agency, was sworn in by the president in the presence of Vice President Jusuf Kalla, several cabinet ministers, and some high-ranking government officials.

Also present at the occasion were Chief of the People`s Consultative Assembly Zulkifli Hasan; Deputy Chief of the Constitutional Court Anwar Usman; Governor of Bank Indonesia, the central bank, Agus Martowardojo; Military Chief Hadi Tjahjanto; Coordinating Minister for Political, Legal, and Security Affairs Wiranto; Cabinet Secretary Pramono Anung; and Chief of the Presidential Staff Teten Masduki.

Djoko`s inauguration was in accordance with Presidential Regulation No. 53 of 2017, signed on May 19, 2017, on the establishment of BSSN.
Under the regulation, the BSSN chief possesses ministerial-level authority.

The BSSN is a non-ministerial government agency, which is directly accountable to the president and is tasked with detecting and preventing cybercrimes through an effective and efficient cybersecurity system by using and consolidating all related elements.

Setiadi was born in Surakarta. After graduating from high school in 1977, he enrolled at the State Encryption Academy.
He had served as head of the National Encryption Agency for seven years and had earlier held several positions in various government institutions.

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Energy subsidy swells to Rp 97.6 trillion:  Sri Mulyani
The Jakarta Post, 03 January 2018

The government spent an additional Rp 7.7 trillion (US$ 539 million) on energy subsidies in 2017 due to the increasing global price of crude oil in recent months, according to Finance Minister Sri Mulyani Indrawati.

Energy subsidies reached Rp 97.6 trillion in total, from the Rp 89.9 trillion targeted in the 2017 state budget, she said at a press briefing in Jakarta on Tuesday.
The government had used a crude oil price of $49 per barrel for the state budget, but the price reached about $60 per barrel in the final months of 2017.

However, she added that the increase had a positive effect on the state budget because the resulting additional revenue was higher than the energy subsidy spent by the government.
The government collected Rp 1.34 quadrillion in tax revenue last year, or 91 percent of its target. 

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Three new airport trains to operate this year: Minister
The Jakarta Post, 03 January 2018

After the inauguration of the airport train in Jakarta by President Joko “Jokowi” Widodo on Tuesday, the government plans to operate airport trains in three other cities – Padang in West Sumatra, Palembang in South Sumatra and Surakarta in Central Java.

Transportation Minister Budi Karya Sumadi said on Tuesday in Jakarta that the airport trains in Padang and Palembang were scheduled to be operated in May, while another one in Surakarta was expected to begin operating in November.

“PT Railink will also be the train operator. The government is the sole investor of [the three airport trains],” said Budi, referring to the subsidiary of state-owned railway operator PT Kereta Api Indonesia (KAI), which is currently also the operator of the airport train in Jakarta as reported by kompas.com.An airport train from Kualanamu Airport in Medan was the first airport train to operate in Indonesia.

Currently, the airport train networks from Sultan Mahmud Badaruddin II Airport in Palembang, Minangkabau Airport in Padang and Adi Sumarmo Airport in Surakarta are being constructed, the minister added.

The airport train operates 42 single trips per day. Services from South Jakarta’s Sudirman Baru Station start at 3:51 a.m., with the last train departing at 9:51 p.m., as several facilities at Manggarai Station are still under construction.

From Soekarno-Hatta International Airport, trains run at hourly intervals, with the first train departing at 6:10 a.m. and the last train departing at 11:10 p.m. Tickets are available at a flat price of Rp 70,000 

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