Update News January, 23 2018

In The news

Indonesia-Japan Fast-track Infrastructure Projects
Tempo.co, 22 january 2018

TEMPO.CO, Jakarta - The government plans to accelerate the development of several strategic infrastructure projects done in collaboration with Japan.
Public Works and People's Housing Minister Basoeki Hadimoeljono said the two countries have been having intensive discussions since Indonesia's visit to Japan in July last year."We are pushing to obtain JICA's funding for the construction of the Padang-Bukittinggi-Pekanbaru toll road tunnel," he said in a press release last weekend.

Basuki said that for the Padang-Bukittinggi-Pekanbaru toll project, the Japanese government is committed to finance the construction of a 40-kilometer road—including a 7-km tunnel. Financing is provided in the form of loans to the Indonesian government."The total construction cost of the 255.8 km toll road is Rp65 trillion. The construction period if from 2018 until 2023," he said.

Other projects that Indonesia is carrying out with the help of the Japanese government include the Port Patimban access road, the Central Jakarta Waste Management System (Jakarta Sewerage System), as well as the semi-bullet train between Jakarta and Surabaya.

Back to top



Vietnam expects more investors from Indonesia
Antara News, 22 January 2018

Jakarta (ANTARA News) - Vietnam is expecting more investors from Indonesia to come to that country to increase business relations between the two countries.
Vietnam`s wish was conveyed during a meeting between Indonesian Chamber of Commerce and Industry (Kadin) and Vietnam Chamber of Commerce and Industry (VCCI) in Vietnam on Jan 18.

In his official statement received here on Monday, VCCI chairman Vu Tien Loc stated that the opportunities for Indonesia to invest in Vietnam are big, especially in the high-tech agricultural field, tourism promotion, transportation infrastructure, and clean energy.

"We wish many more investors from Indonesia would come to Vietnam to increase business relations between the two countries. We hope we can learn from you," he noted before Kadin delegation visit to that country, led by general chairman Eddy Ganefo.

According to VCCI and PwC surveys, Vu Tien Loc remarked that Vietnam, along with the US and China, are among the 21 countries in the Asia Pacific region which have the most potential economy for investment."An action plan and cooperation between the two countries` chambers are expected in the years to come," he pointed out.

Ganefo remarked that Indonesia has planned to import rice from Vietnam. He added that "rice production cost in Vietnam has been known to be very low, and a cooperation agreement on it will be signed between Kadin and VCCI."

Petrus Tjandra, a Kadin delegation member, explained that rice production cost in Indonesia is higher than in Vietnam, while production condition in the two countries is the same."Therefore, we hope we can cooperate with Vietnam in rice production," he revealed.

He elaborated that Indonesia would import rice from Vietnam to meet the shortage in the domestic stock and will export the remaining supply to other countries.

Kadin also hoped to cooperate with VCCI in coal production, especially anthracite coal."So far, Indonesia has imported a lot of anthracite coal from Vietnam for iron smelting and to meet the needs of smelters," he noted.

In connection with that, Ganefor hoped for a barter with Indonesia; for example, exporting aircraft, cocopeat, and others to Vietnam, while that country exports anthracite coal and others to Indonesia, with regard to balance trade between the two countries.

Kadin plans to coordinate with VCCI to arrange a business delegation to explore Indonesian market and a forum to realize cooperation programs between the two.
Trade between the two countries has increased from US$4.6 billion in 2012 to $5.6 billion in 2016, growing at a rate of around five percent a year.Vietnam`s exports to Indonesia include rice, crude oil, cement, electronic components, and agricultural produce.It imports fertilizers, petroleum oil, machinery, paper, and sweets. 

Back to top



INKA signs contract worth Rp127.3 billion with Philippine Railways
Antara News, 23 January 2018

Jakarta (ANTARA News) - State-owned train manufacturer PT Industri Kereta Api (INKA) has signed a contract worth Rp127.3 billion with Philippine National Railways (PNR), regarding the purchase of diesel railway train (KRD).

The contract was signed by PNR General Manager, Junn B Magno, and President Director of PT INKA (Persero), Budi Noviantoro at PNR office, Tutuban, Manila, on Monday, based on a press statement received here on Monday.

The signing of the agreement was witnessed by Secretary of the Department of Transportation of Philippines, Arthur P Tugade; Trade Attach? of Indonesian Embassy in Manila, Irawan; and other officials from Philippine National Railways (PNR) and state-owned train manufacturer PT Industri Kereta Api (INKA).

Magno remarked that the Philippine government had committed to provide reliable and affordable public transportation, in an attempt to shorten the distance and to provide comfort for the community."Diesel railway train will be operated in the route connecting Tutuban Station and Alabang Station, Metro Manila," Magno stated.

President Director of PT INKA (Persero), Budi Noviantoro, has expressed appreciation to the Philippine National Railways (PNR) for becoming part of transportation development in the Philippines."In addition, our goal is to produce high-quality products and provide the best service for PNR," Noviantoro revealed. 

Back to top



President hands over land certificates in Palembang city
Antara News, 23 January 2018

Palembang, S Sumatra (ANTARA News) - President Joko Widodo (Jokowi) distributed 5,534 land certificates to residents of South Sumatra Province and 505 waqf land certificates for the development of places of worship at the Palembang Sport and Convention Center on Monday.

Jokowi symbolically distributed land certificates to 12 representatives of all recipients. In addition to the recipients who were unable to attend and several citizens having more than one certificate, some four thousand beneficiaries were present at the event.

He stated that the government`s target of distributing five million certificates in 2017 had been achieved, while it is aiming to hand over seven million certificates in 2018 and nine million certificates in 2019.

"When I visit regions, I always receive a complaint on land dispute from all locations, as a total of 87 million plots of land are not yet certified, so all of them should be certified in 2025," he pointed out.

In addition to Agrarian and Spatial Planning Minister Sofyan Djalil, the event was attended by Chief of the Indonesian Police General Pol Tito Karnavian, Head of the Office of Presidential Staff Moeldoko, and Transportation Minister Budi Karya S.

"If the targets are not achieved, be careful. I have discussed with the respective minister that he/she will quit; that is how it works," he remarked.
According to Jokowi, the ranks of the Agrarian and Spatial Planning Ministry have to work hard to realize the targets.

On the occasion, he also called on communities to maintain a conducive situation and live in harmony during and after the regional head elections to be held across 171 regions in 2018."South Sumatra will organize a gubernatorial election and regional head elections in five districts and four cities.

The elections are a democratic process. Choose the best leaders in the respective regions. Do not be hostile to neighbors owing to different choices," he stated.

Meanwhile, Djalil noted that in 2017, the land certification target in South Sumatra Province had reached 230 thousand plots of land."Same as last year, we are looking for the same target this year," he added.

Back to top



13 Railway Projects to be Operational in 2018
Tempo.co, 23 january 2018

TEMPO.CO, Jakarta - The Directorate General of Railways of the Ministry of Transportation will complete 13 railway projects, which are expected to be operational in 2018."The Directorate General of Railways, Ministry of Transportation is accelerating these projects in the beginning of 2018. 

This year started with the inauguration of the Soekarno-Hatta Airport railway, which continued with the signing of a contract on Maintenance and Operation of State Railway Infrastructure in 2018," the Director General of Railways, Zulfikri, said on Monday.

The 13 railway development projects  include the 26-kilometer-long railway line of Minangkabau International Airport and 85-kilometer-long Prabumulih-Kertapati national railway line in South Sumatra. Another train is the dual railway line of Martapura-Baturaja in South Sumatra, which is 32 kilometers long.

Zulfikri added that between June and September 2018, two light rail transit (LRT) in South Sumatra, along 23.4 kilometers, and Jakarta LRT (Jakpro), along 5.8 kilometers, will be operational.
In order to support Sei Mangkei Special Economic Zone (KEK) in North Sumatra, a railway to the port, with Bandar Tinggi-Kuala Tanjung route of 21.5 kilometer long, will operate.

Meanwhile, in order to support double track double (DDT) crossing Manggarai-Cikarang, five new stations, namely Kranji Station, Cakung Station, Klender Station, Klender Baru Station, and Buaran station, and also Cipinang railway locomotive, will operate. "In Sulawesi region, the 44-kilometer-long Barru-Palanro railway line will operate. 

This is a historic moment because in October 2018, a railway will be operated back in Sulawesi," he noted.From November to December 2018, the government plans to operate major urban railway transports partially/per segment.

The early-operated segments are Madiun-Jombang (East Java) segment along 84 kilometers, and Solo-Kedungbanteng (Central Java) segment, along 42 kilometers.
The government will also operate the 13.5-kilometer-long Adi Soemarmo Airport railway and two railway lines of Maja-Rangkasbitung segment, which are 17 kilometers long.

Zulfikri added that the railways lines in Sumatra will also be operational. They are the 10-kilometer-long Medan-Bandar Khalifah route, and the 80-kilometer-long Binjai-Besitang route. "The Directorate General of Railways is working hard to realize various railway projects in line with the plan, with a budget of Rp17.7 trillion (US$1.2 billion). The Directorate General of Railways will optimally and efficiently use the budget to realize the projects," he revealed.

The government hopes that the railway projects, which have been and will be inaugurated in 2018, can serve people's need for mass public transportation and provide economic growth for the areas where the railways are built.

Back to top


President Jokowi to Start Five South Asian Nation Tour
Tempo.co, 23 january 2018

TEMPO.CO, Jakarta - Indonesian President Joko Widodo (Jokowi) said he had no intention of changing his planned visit to Afghanistan despite security problem in the conflict-torn country. 
He is set to start a five-South Asian nation tour which will take him to Sri Lanka, India, Pakistan, Bangladesh and Afghanistan on Wednesday (Jan 24).
"We already have plan to visit there," Jokowi said in the Jakabaring City in this South Sumatra capital on Monday.

Jokowi wanted to see the real condition in Kabul and Afghanistan in general. He will hold state visit to Afghanistan toward the end of this month on request to help create peace in that country long stricken by civil war.

"The planned visit is to honor an Afghan request for Indonesian involvement in peace building in that country," Foreign Minister Retno Marsudi said earlier.
Jokowi will also attend ASEAN-India Summit to mark 25 years of ASEAN-India partnership, and the other four South Asian nations to enhance bilateral ties.

Foreign Minister Retno Marsudi said, the five countries are Indonesia's longstanding friendly partners. Some of them worked with Indonesia in the early days of struggle to organize Asia-Africa Conference, form Non-Aligned Movement and so on, she said. "Right now the countries are Indonesia's friendly partners, with which Indonesia has good economic relations. 

The value of our trade with the countries is quite large and we want to strengthen (the cooperation)," she said.

For its part, Indonesia is proposing preference trading arrangement (PTA) to them, she said. "Some of the countries have given a positive response to it, while the others have recommended a FTA (free trade area)," she said.

Indonesia agreed to a proposal for free trade, yet it will be realized in stages, she said. "Therefore, I always coordinate with the trade minister to hold negotiations (with them)," she said.
She went on to say the president's visit to the five South Asian nations is also aimed at fostering friendship and peace. "This way Indonesia can continue to disseminate the value of peace," she said.

She said the president's visit to Bangladesh is linked to unavoidable humanitarian issue as both countries have long cooperated in handling refugees from Myanmar's Rakhine state. "When the president visits there, we will also offer extra assistance," she said.

She said Indonesia extended assistance to Rohingya Muslims in Myanmar and Bangladesh according to their desire. "We do not provide assistance that they do not want," she said.
The president will start his five South Asian nation tour in Sri Lanka on Jan 24-25. He will later visit India on Jan 25-26, Pakistan on Jan 26-27, Bangladesh on Jan 27-28, and Afghanistan on Jan 29.

Back to top



Angkot Drivers Rally against Anies Basweda’s Tanah Abang Policy
Tempo.co, 22 january 2018

TEMPO.CO, Jakarta - Hundreds of angkot (public minivan) drivers held a rally today to protest the latest policy introduced by Jakarta Governor Anies Baswedan on the Tanah Abang shopping district. 

The angkot drivers view that the governor’s policy will threaten their livelihood.“Our rights have been taken away by Governor Anies,” said Darmono, the representative of the M 10 angkot drivers serving a route passing the Tanah Abang shopping district.

Darmono claims that Transjakarta buses that are now operating along Jalan Jatiraya Baru at Tanah Abang have significantly reduced their income from normally Rp200,000 per day to just Rp75,000 per day.

Rally coordinator Andreas demands Anies Baswedan to revoke his policy banning public minivans from passing Tanah Abang.
“The policy is a violation itself,” said Andreas. “Many people felt the negative impacts [of the policy].”The protesters also demand Transjakarta buses to stop its operations at the shopping district.

Governor Anies Baswedan introduced the policy on December 22, 2017, in a bid to reorganize Jalan Jatibaru at Tanah Abang. 
The policy allows one lane of the public road to be used for street vendors, while the other lane is used for Transjakarta buses that basically make public minivans redundan in the area. 

Back to top



Indonesia Now among Countries with US$1tn GDP
Tempo.co, 22 january 2018

TEMPO.CO, Jakarta - CIMB Niaga chief economist Adrian Panggabean said Indonesia enters 2018 with a new status. The country is now one of the world's nations that has a gross domestic product (GDP) value of US$1 trillion.

In his review, Adrian wrote that there are only 16 out of 180 countries in the world that have an output above US$ 1 trillion.
As the world's 15th largest territory and 4th largest population, the GDP value will support Indonesia in its efforts to strengthen its geo-economic and geopolitical positions."Last year, the GDP grew 5.1 percent, driven mainly by public consumption and investments," he said last week.

Investments are also growing at a steady rate, driven by investments in the infrastructure and machinery sectors."Investment in 2017 grew at a rate of around 5.8 percent; much faster than in 2016," he said.For 2018, Adrian estimates Indonesia's GDP to grow by 5.2 percent. He said there aren’t many growth catalysts expected to emerge this year. 

In terms of the state budget posture—with an estimated fiscal deficit of 2.3 percent to the GDP, the 2018 State Budget looks more consolidative and populist as opposed to being expansive and populist.

Back to top



BI, government team up to control inflation
The Jakarta post, 22 january 2018

Bank Indonesia and the government agreed on five measures to maintain inflation at between 2.5 and 4.5 percent in 2018 on Monday.“The meeting of the National Inflation Control Coordination Center has agreed to five strategic measures, including maintaining volatile food prices” said BI spokesman Agusman in Jakarta as reported by Antara..BI and the government also assured that any measure to control inflation should guarantee food supply, he added.

Among the steps to control the volatile food prices include ensuring food production, strengthening the government’s food stock, distributing rice for the poor on time and developing an accurate database on rice production.Agusman said the government needed to prepare a policy to anticipate impacts from the introduction of administered prices.

Another measure is to strengthen coordination between central and regional governments as well as Bank Indonesia in controlling inflation, said the BI official, adding that the fourth measure was to strengthen quality control of government policies.

The last measure is ensuring that the central bank is able to control macroeconomic stability, Agusman said.“The government and Bank Indonesia are committed to strengthening coordination to maintain inflation between 2.5 and 4.5 percent in 2019 and 2 and 4 percent in 2020 and 2021,” said Agusman. (bbn) 


Back to top