Update News July 13, 2017

Today News, Indonesias Coordinating Minister for Economic Affairs Darmin Nasution stated here on Wednesday that the countrys economic growth is sound and hence is worth boasting.

From Infrastructure Sector, The Ministry of Transportation has approved the construction project of the sea toll line en route from the Tanjung Perak port in Surabaya city of East Java province, to Biak District of Papua province.

In The News



Greater Jakarta LRT to use moving block signaling

The Jakarta Post July 12, 2017


The government has decided to use moving block signaling -- a signaling system in which the blocks, or sections of track, are defined in real time by computers as protected zones around each train – for the Greater Jakarta light rail transit (LRT).


With a moving block system, trains can transport more passengers than when a fixed block system is used, said Transportation Minister Budi Karya Sumadi.


Budi said that by using moving block signaling, the LRT could transport up to 750,000 passengers per day while with fixed block it would only be able to transport 500,000.


 “We want the system that offers a shorter headway. [With moving block], headway can be shortened to one minute,” said Budi as reported by kompas.com on Wednesday after attending a meeting to discuss the LRT project with Maritime Coordinating Minister Luhut Pandjaitan in Jakarta on Wednesday.


The cost of moving block signaling for the LRT project will be Rp 200 billion (US$14.96 million) to Rp 300 billion, Budi added.


Seventeen percent of the Greater Jakarta LRT has been developed to date. The system will have three three lines, namely Cawang-Cibubur, Cawang-Bekasi Timur and Cawang-Kuningan-Dukuh Atas. (bbn)

Back to top

Jakarta's transit projects on track: Djarot

The Jakarta Post July 12, 2017


Jakarta Governor Djarot Saiful Hidayat has ensured President Joko “Jokowi” Widodo that the city administration will complete several mass transportation projects, including the commuter line, the MRT and the Light Rail Transit (LRT).


The city’s commitment was conveyed during a meeting at the State Palace on Tuesday. 


“Jokowi said the LRT, MRT and commuter line networks should be integrated,” Djarot said on Wednesday as quoted by kompas.com.


Djarot said the city administration would also reach out to transportation networks throughout Greater Jakarta to form a more cohesive system.

For example, the LRT in the inner-city could be integrated into LRT lines serving routes in Greater Jakarta.


“The LRT [serving Greater Jakarta] will be integrated with the LRT from Kelapa Gading to Rawamangun, so that transportation in Jakarta will be seamless,” Djarot said.

Djarot added that the MRT and LRT would be ready for a trial run in August 2018. (cal/wit)

Back to top


Luhut urges Anies to continue reclamation

The Jakarta Post July 12, 2017


Coordinating Maritime Affairs Minister Luhut Pandjaitan has told Jakarta governor-elect Anies Baswedan and deputy governor-elect Sandiaga Uno that the Jakarta Bay reclamation project should be continued as it is one of the central government's long-awaited projects that date back to the Soeharto era.


During the campaign period for Jakarta gubernatorial election earlier this year, Anies and Sandiaga repeatedly vowed to stop the project, saying it was environmentally unfriendly and would disrupt the livelihoods of fisherfolk.


Luhut said research on and development of the artificial islets had been conducted since the former president Susilo Bambang Yudhoyono administration and was being continued under the leadership of President Joko “Jokowi” Widodo.


“Whoever the leader is, he should respect the [project] review issued by a credible institution. You can’t change [the ongoing project] as you wish just because you’re the new official,” Luhut said on Tuesday as quoted by kompas.com.


“As a country, we could be scorned by other people [if we don’t continue the reclamation], as they will think we’re not consistent with the study conducted by the previous administration,” he added.


Anies and Sandiaga should study the research on the project before deciding to stop it, Luhut said.


He went on to say that the reclamation project would benefit the city, such as by mitigating land subsidence.


Earlier, Sandiaga said that after his inauguration in October, he and Anies would review the reclaimed islets, including from an environmental perspective. (cal/wit)

Back to top

Indonesia`s economic growth is worth boasting: Senior minister

ANTARA News July 13, 2017


Jakarta (ANTARA News) - Indonesias Coordinating Minister for Economic Affairs Darmin Nasution stated here on Wednesday that the countrys economic growth is sound and hence is worth boasting.

"At international forums, we can say with pride that our economic growth, though it is not very high, is good," he noted at a national symposium.

Nasution pointed out that the improvement in growth could be visible by evaluating the indicators of inflation, poverty rate, gap, and unemployment rate. 

He said the rate of inflation had improved as compared to four or five years ago, while poverty had consistently been elevated in the past decade.

"The gap has been improving again in the past two years after declining in the past 10 years due to the 1998 crisis that led to the utilization of natural resources, such as mining and plantation, worsening the gini ratio," he revealed.

He said the highest ratio in 2013 was recorded at 0.413, and last year, it had improved to 0.394.

He expressed confidence that economic growth in the past 10 years would be sustained since the government has formulated just economic policies to streamline those in effect so far.

"As a note, President Jokowi initiated steps for the welfare of the people by reducing subsidy and using the funds for social assistance and infrastructure development," he noted.(*)

Back to top

ASEAN should invest 1 percent of GDP into renewable energy

ANTARA News July 13, 2017

Jakarta (ANTARA News) - ASEAN will need to invest one percent of its Gross Domestic Product (GDP) annually into renewable energy capacity to reach its 23 percent target.

"The power sector will consume 75 percent of the investment volume needed to boost capacity," Manager of ASEAN Plan of Action for Energy Programme, ASEAN Centre for Energy, Christoper Zamora, said during a discussion on Investing in ASEANs Renewable Energy Resources here on Wednesday.

He stated that US$7.5 billion per year must be invested in solar PV and $6.3 billion in hydropower.

"The average annual investment to reach 23 percent renewable energy (RE) would total $27 billion.

A total amount of $13 billion is needed for references, whereas $9 billion and $ 5 billion are for new investment on installed capacity and for re-directed fossil fuel respectively, he remarked.

He pointed out that increased investment in renewable energy is one of the key to sustainable growth in ASEAN.

"Individual country market that becomes regional can also potentially reduce costs in recent times," he stated.

Foreign Direct Investment (FDI) is one of the channels of economic openness that can stimulate the investment cost reduction

"Southeast Asia is one of the most targeted region for RE investment by foreign developers," he concluded.(*)

Back to top

Indonesia faces challenges to meet target of national energy mix

ANTARA News July 13, 2017

Jakarta (ANTARA News) - Indonesia is facing formidable challenges to meet the portion of natural gas in the national energy mix at 25 percent by 2025. 

As a growing nation, Indonesia sees its energy needs increasing, commercial director of state gas firm PT Perusahaan Gas Negara (Persero) Tbk (PGN), Danny Praditya said at the Gas Indonesia Summit & Exhibition 2017 here on Wednesday.

"The energy needs must be met in such way that ensures energy security, self-reliance and sovereignty," he said in a press statement.

The portion of gas in the national energy mix at 23 percent by 2025 means that in the next nine years the domestic gas consumption must double the consumption in 2016, he said.

"This is either big challenges or opportunities for all sides," he said.

Danny said one of the challenges is how to expedite the development of market and infrastructure.

"The target to be achieved in 2025 is to build another 40,000-kilometer gas pipelines and several LNG hubs as part of distribution system. For its part, we have to make breakthroughs in technology, business model and good governance," he said.

In addition, Indonesia is also required to be more competitive to meet demand from industries for competitive gas prices, he said.

The other challenge is that Indonesia must be able to manage needs to expedite development while at the same time it must use budget more efficiently, he added. (*)

Back to top

Indonesia, Singapore Intensively Discuss AEoI  

TEMPO.CO 12 JULY, 2017 

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati promised that she would continue to approach Singapore to implement the Automatic Exchange of Information (AEoI).

Indonesia and Singapore will sign the Bilateral Competent Authority Agreement (BCAA) to implement the AEoI.

“We will continue to approach all countries to implement the AEoI. We will also continue to communicate with Singapore,” Sri Mulyani said at the International Monetary Fund-Indonesia Summit in Jakarta on Wednesday, July 12, 2017.

The Singaporean Finance Ministry said in a press release that they are ready to work with Indonesia in relation to the AEoI. Singapore revealed that it has listed Indonesia as a partner in the Multilateral Competent Authority Agreement (MCAA).

Hestu Yoga Seksama, spokesperson of the Finance Ministry’s Tax Directorate General, said that after the G20 Summit in German, Singapore expressed its commitment to following up the process of data exchange with Indonesia.

“The BCAA signing is just a matter of time,” Hestu said.

Back to top

Halal Certificate a Protection for Consumers: Expert

TEMPO.CO 13 JULY, 2017 

TEMPO.CO, Jakarta - Head of the Thoyyib Halal Study Center of the Brawijaya University Sukoso said halal certification is useful in protecting consumers and for economy.

"In consumers protection, halal certification is a form of respect for the rights of Muslim people," Sukoso said when giving expert opinion at the Constitutional Supreme Court on Wednesday.

Sukoso was asked by the Indonesia Halal Watch as an expert in the session of material test on the Law No. 33 of 2014 about Guarantee of Halal Product.

"Halal foods have become part of faith for Muslim people, and Muslims make up the vast majority of the Indonesian people," Sukoso said.

In economic aspect halal certification will contribute to strengthening the competitive edge of products in a wider market, he added.

He said many countries adopt the halal certificate even if Muslims are the minority such as Japan and Thailand.

"Because they are aware that halal certification gives positive contribution to the marketability of products as it would help convince Muslim consumers," Sukoso said.

Back to top

Indonesia to construct sea toll line en route Surabaya-Biak

ANTARA News July 12, 2017

Biak, Papua (ANTARA News) - The Ministry of Transportation has approved the construction project of the sea toll line en route from the Tanjung Perak port in Surabaya city of East Java province, to Biak District of Papua province. 

"The Ministries of Trade and Transportation have agreed on the construction proposal," the Biak administration secretary assistant II, Mahasunu, said here on Wednesday. 

In accordance with the regulation issued by the Transportation Ministrys Directorate General on Maritime Traffics R.A Tonny Budiono No.AL108/3/17DJPL-2017 on the distribution of goods in the sea, the sea line toll project will provide services from Tanjung Perak port to some Papuan provinces districts, including Manokwari, Wasior, Nabire, Serui, and Biak.

Meanwhile, the route from Biak would cover Serui, Nabire, Wasior, Manokwari, and back to Surabaya, Mahasunu added.

He hoped the T12 sea toll line project would help the business in terms of goods distributions to the districts. 

Additionally, the districts head of Industry and Trade Widiarto said the sea toll project is the governments most important program to support the companies to distribute goods to remote islands. 

"The project was originally proposed by the district government of Biak Numfor to the Trade and Transportation Ministries," Widiarto remarked. 

Earlier in 2014, the state-owned port operator PT Pelindo noted that some 24 ports would be repaired to accelerate the sea toll project, which was initiated by President Joko Widodo. 

The Pelindo III spokesman, Edi Priyanto, explained the firm would renovate some ports, including Tanjung Perak port in Surabaya, Benoa in Bali, and other nine ports located in Ambon, Biak, Makassar, Bitung, Manado, Sorong, Pare-Pare, Ternate, and Tarakan.

Back to top

Korean Air Charters Flight Directly to Lombok

TEMPO.CO 13 JULY, 2017 

TEMPO.CO, Jakarta - Korean Air is set to open a chartered flight from Incheon airport to Lombok, West Nusa Tenggara (NTB), starting on July 29. According to Head of the NTB tourism agency, Lalu Moh Faozal, the South Korean airline has prepared seven flights up to October 9.

“The flight will carry 200 passengers in each flight from Incheon,” said Faozal on Wednesday, July 12. Australian Jet Star will also open a flight from Sydney, Australia to Lombok.

South Koreans have been attracted to Lombok ever since a Korean drama series shot an episode in gili Trawangan and several other locations in Lombok.

Considering that Lombok has successfully grabbed the attention of international tourism community, Faozal urged the people of NTB to improve the quality of several aspects in NTB such as problems of traffic congestion and environmental problems.

Tourism has been the fourth largest contributor for Indonesia’s economy, devoting 9.3 percent to the national income compared to other national industrial aspects. Tourism also contributes 10 percent of Indonesia’s total gross domestic product (GDP).

Previously, South Korean ambassador, Taiyoung Cho met with the governor of West nusa Tenggara, Muhammad Zainul Majdi. “Lombok is really popular there,” said Taiyoung Cho. Korean businessmen will be diverted to invest in the property sector.

Direct flights between Incheon and Lombok by the Korean Air are expected to help improve foreign tourist arrivals in NTB.

Back to top

MRT and LRT to be Tested During 2018 Asian Games

TEMPO.CO 12 JULY, 2017 

TEMPO.CO, Jakarta - The mass rapid transit (MRT) and light rail transit (LRT) project scattered across Jakarta is expected to be complete and tested on August 2018. “The projects should be complete by the time the 2018 Asian Games is held,” said Jakarta Governor, Djarot Saiful Hidayat today.

Djarot admits that some parts of the project has experienced some delays such as the section in Haji Nawi in South Jakarta. It is currently hampered by land acquisition issues.

The MRT project will connect Bundaran HI or the Selamat Datang Monument located in Central Jakarta with Lebak Bulus in South Jakarta. That route is expected to be fully functional in 2019.

The MRT and LRT project will be integrated with other mass transportations such as commuter lines, Transjakarta busses, and bus rapid transits (BRT).

Other than to overcome Jakarta’s chronic congestion problem, the MRT and LRT project was also built to greet the 2018 Asian Games that will be held on August 18 until September 2, 2018, which will be held in Jakarta and Palembang.

DPRD promised to recommend a Rp2.5 trillion budget for the MRT project. Rp15 trillion was spent for the first phase of the 15.7 kilometer Lebak Bulus-Bundaran HI route. Meanwhile the second phase comprised of an 8.7 kilometer route from Bundaran HI-Kampung Bandan spent Rp22.5 trillion, besides the LRT project.

Back to top