Update News July 17, 2017

Today News, , The Energy and Mineral Resources Ministry plans to revise a ministerial regulation on the use of natural gas by power plants in a bid to provide more affordable gas in the power generation sector.

From the Technology Sector, Indonesia, through the Agency for Assessment and Application of Technology (BPPT) and its consortium, is ready to conduct a flight test for its larger Medium Altitude Long Endurance (MALE) drone in 2019.



In The News




Government to revise gas price policy for power generation

The Jakarta Post 16 July 2017

The Energy and Mineral Resources Ministry plans to revise a ministerial regulation on the use of natural gas by power plants in a bid to provide more affordable gas in the power generation sector.

Energy and Mineral Resources Ministerial Regulation No. 11/2017 sets the maximum gas price of 8 percent of the Indonesian Crude Price (ICP) per million British thermal units (mmbtu) for all gas wellhead power plants. Meanwhile, the price for non-wellhead plants is set at a maximum of 11.5 percent of the ICP per mmbtu.

If the gas price for non-wellhead facilities surpasses its maximum limit, electricity firms, including state-owned PLN, may use liquefied natural gas (LNG) at the same limit with free on board (FOB) shipping.

Then, if the LNG price is still higher than 11.5 percent of the ICP per mmbtu, such firms may import LNG, providing the price does not exceed the limit.

“Even if they [electricity firms] can get LNG for a price of 11.4 percent of the ICP, it would still be  unfeasible because they would also need to bear the transportation and regasification costs,” Deputy Energy and Mineral Resources Minister Arcandra Tahar said recently.

It is possible that the maximum limit will be revised to provide a more affordable gas price for power generation, he said.

The ICP, used as a benchmark to calculate non-tax income in the state budget, averaged US$48.90 per barrel in the first half of this year.(hwa)

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Indonesia ready to conduct MALE drone flight test in 2019

ANTARA News, 16 July 2017

Jakarta (ANTARA News) - Indonesia, through the Agency for Assessment and Application of Technology (BPPT) and its consortium, is ready to conduct a flight test for its larger Medium Altitude Long Endurance (MALE) drone in 2019.

"For next drone development, we will develop larger MALE drone. It can fly for a longer distance, more loads and longer flight duration which can reach 24 hours. It will be used for border surveillance 

operations as part of the efforts to maintain security and defense," Wahyu Pandoe of the Engineering and Designing Industry Technology of the BPPT, said in Jakarta on Sunday.

Head of BPPT's Drone Program Joko Purwoto said Indonesia would have been able to conduct a flight test for its MALE drone in 2019.

The drone is being built by the BPPT in cooperation with its consortium, consisting of, among others, Indonesia's aircraft maker PT Dirgantara Indonesia, state-owned electronic firm PT LEN, the Ministry of Defense and Security and the Bandung-based Institute of Technology.

Unlike the Alap-alap, the smaller drone built by the BPPT which consumes octane-98 gasoline, the larger MALE drone will use avtur aircraft fuel. 

This drone is developed with a capability to fly for 24 hours at the altitude of 30,000 feet and with a load of not only cameras but also radars. 

Previously, BPPT has developed a number of types of drones such as the Wulung and Alap-alap PA-4 and Alap-alap PA-5. The Wulung drones which were built for surveillance activities were able to fly at a radius of 120 kilometers for four hours at an altitude of 8,000 feet.

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Logistics firm Sidomulyo eyes coal transport business

The Jakarta Post 16 July 2017

Publicly listed transportation and logistics firm PT Sidomulyo Selaras expects to diversify its services after seeing a potential to provide coal transport services in Kalimantan starting from this year.

“We have been invited by several coalminers in Kalimantan for cooperation,” president director Tjoe Mien Sasminto said in a recent press briefing, adding that project bids for such services were ongoing.

Sidomulyo, which has been in operation since 1993, specializes in transporting hazardous and toxic materials ( B3 ). It also provides logistics services for transporting crude transport in South Sumatra and Jambi.

The firm is currently participating in a tender to provide logistics services for Australia-based oil firm Cooper Energy Ltd.’s oil wells in South Sumatra, said Tjoe Mien.

Sidomulyo financial director Erwin Hardiyanto said the company had submitted paperwork related to the tender.

“The tender was recently opened. We have only submitted documents [related to the tender]. We do not know yet how many [oil] barrels we will have to transport,” said Erwin.

Sidomulyo has allocated Rp 20 billion (US$1.5 million) in capital expenditure this year, said Erwin. He added that the capex would be used to buy 25 vehicles to expand its current fleet of 362 vehicles.

The firm expects to earn Rp 137 billion in revenue this year, a 15.92 percent increase from last year’s revenue. (mrc/hwa)

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Indonesia - Japan agree to enhance cooperation in health sector

ANTARA News, 16 July 2017

Jakarta (ANTARA News) - Indonesia and Japan have agreed to enhance bilateral cooperation in health services and human resource development, Indonesias Health Minister Nila Moeloek said.

"We need to enhance it toward a more formal and mutual cooperation, with our close bilateral relations," Moeloek said in a statement here, Sunday (July 16).

Moeloek and Japanese Health, Manpower and Welfare affairs Minister Yasuhisa Shiozaki have agreed to exchange expertise, experience and programs to improve health services.

The two ministers held bilateral meeting on the sideline of ASEAN-Japan Health Ministers Meeting on Universal Health Coverage and Population Ageing on July 14-15 in Tokyo, Japan.

Currently, Indonesia and Japan has a wide range bilateral cooperation under the Indonesia-Japan Economic Partnership (I-JEPA) as well as the Japan International Cooperation Agency (JICA).

The cooperation includes exchange of experts, research, and human resource development in health sector.

Under the I-JEPA, 593 nurses and 1,199 care givers have been trained in Japan and worked for some hospitals and nursing homes in the country.

Every year, Japan has provided training for 500 Indonesian nurses in the country.

Moeloek said, the government would need to further explore the opportunities to increase cooperation in paramedics recruitment, human resource development, health services, health information technology and disease prevention.

The cooperation, she said, is expected to open more chances for Indonesian nurses to participate in the training and to work in Japan, and to increase the number of Indonesian health expert studying in Japan.

Both ministers have expressed hope for the cooperation agreement to be signed during the next bilateral meeting.

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Indonesian minister calls on food, drink industries to increase exports

ANTARA News, 16 July 2017

Jakarta (ANTARA News) - Industry Minister Airlangga Hartarto called on national food and beverage industries to boost exports as part of its efforts to increase performance.

"The domestic and export markets are still big. So, it is important for food and beverage industry to have adequate raw materials to galvanize investment growth," Minister Hartarto said in a written statement in Jakarta on Sunday (July 16).

Minister Hartarto also urged the food and beverage industries to create breakthroughs and product innovation to attracts both domestic and overseas consumers.

The minister made the statement when attending a post-fasting get together or Halal Bihalal with the Indonesian Food and Beverage Business Association (GAPMMI) in Jakarta.

In order to prepare reliable human resources, the Ministry of Industry has the commitment to implement its program through the formulation of the Indonesian National Work Competence Standards (SKKNI); education and training development; and industry vocational education development.

"We appreciate the food and drink businesses for their part and support to the competence-based vocational education program with a link-and-match system to industry in East and Central Java," Hartarto said.

The program will be launched again on July 27, 2017.

Hartaro said the strategic program will increase food and drink industrial growth.

After all, food and drink industry has a big contribution in the non-oil and non-gas sector to the Gross Domestic Product. This sub-sector contributed 32.79 percent to the GDP in the first semester of 2017.

The growth of food and drink industry in the first semester of 2017 was recorded at 8.15 percent.

This indicates that food and drink businesses have significant roles in driving up the national economic growth. It could be seen through the value of its exports.

Food and drink product exports, including crude palm oil, win the January-May period of 2017 reached US$13.28 billion.

In the same period, the imports of food and drink products were recorded at $3.98 billion. 

The realization of investment in the food and drink sector in the second quarter of 2016 was recorded at Rp12.1 trillion for domestic investment and $476.32 million for foreign investment.

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Indonesian Transportation Minister launches online licensing system

ANTARA News, 16 July 2017

Jakarta (ANTARA News) - Transportation Minister Budi Karya Sumadi has launched online transportation licensing system in a bid to improve efficiency and avoid illegal levies.

"The government would continue to facilitate transportation operators, thus they dont have to come to our office to get the licenses as it would take time," Budi said here, Sunday (July 16).

On the occasion, Budi also launched fleet management system for state-run transportation operator PPD and conveyed rewards for drivers and machinist.

The minister said, development in transportation system is undoubtedly important to match with other countries.

Therefore, he added, the government would continue to improve its transportation system to make it competitive in global transportation system.

Currently, some 47.5 million people in Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek) used public transportation for their daily activities and they would need safe and comfortable transportation.

Under the online licensing system, Budi said, transportation operators could register their licenses at any time and any where without having to meet with officers.

"Therefore it would need to be familiarized intensively to encourage operators to use this facility," he said.

Meanwhile head of the Greater Jakarta Transportation Body (BPTJ) Bambang Prihartono said, the agency is ready to enter the era of online transportation licensing system to make it easier and more efficient.

"Under the system, licensing for public transportation is expected to be obtained faster and on time," Bambang said, adding that it has become the governments obligation to give its best services for the operators.

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Telkom Ramps Up Mobile Network Service Ahead of Tour de Flores

Jakarta Globe, 16 July 2017

Jakarta. Telkom Indonesia, the country's largest telecommunications provider, has ramped up service on the island of Flores in East Nusa Tenggara to cater to hundreds of residents and tourists on the island to watch international cycling competition Tour de Flores 2017.

Telkom is the only service provider operating on the island, which the government seeks to quickly develop to accommodate rising numbers of tourists.

Ismono Adi Jatmiko, Telkom's general manager for East Nusa Tenggara, said the company strengthened network signals near event venues and the Tour de Flores cycling routes to ensure reliable service for networks belonging to its mobile phone operator unit, Telekomunikasi Selular.

"We also ensured the security of our backbone cable network by patrolling along major cable routes," Ismono said in a statement on Saturday (15/07).

The company also worked in cooperation with the Ministry of Public Works and Housing to ensure that heavy equipment used by several ongoing infrastructure projects on the island did not interfere with Telkom's cables.

Telkomsel provides 4G mobile broadband in all major towns in the island. The company claimed that there were fewer mobile blind spots on the island for this year's Tour de Flores compared to last year.

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Ministry hosts training for airport, hotel employees in Palembang

The Jakarta Post 16 July 2017

The Tourism Ministry has recently hosted a training for the employees of state-owned airport operator PT Angkasa Pura II Palembang and several front-line staff of Fave Hotel Palembang in South Sumatra.

Conducted on Thursday, the event aimed to improve the quality of human resources in tourism and managed to attract 200 participants.

 “The world of tourism is always associated with ‘to serve and be served’ motto. For instance, the staffs of Sultan Mahmud Badaruddin II International Airport have to always be friendly and at their prime when serving visitors,” said the ministry’s Tourism Development deputy Ahman Sya.

“To give the best service, the 3S of senyum sapa salam [smile, greet and regards] needs to be implemented,” he added.

According to the ministry, 75 percent of foreign tourists entered the archipelago through airports. (kes)

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Medco to acquire 44.3% stake in Australia’s MacMahon

The Jakarta Post 16 July 2017

On May 4, MacMahon signed an agreement with AMNT to provide mining services at the latter’s Batu Hijau mine in Sumbawa, which produced 798,000 ounces of gold and 216,363 tons of copper last year.

 Under the agreement, MacMahon will acquire moving mining equipment from AMNT. In return, it will issue around 954 million new shares priced at 203 Australian cents (16 US cents), equal to 44.3 percent of its enlarged share capital, for Singapore-based Amman Mineral Contractors, which is indirectly owned by AMNT.

“The approval of MacMahon’s shareholders is expected to be obtained in July. Under the agreement, the transaction will be completed on or before Sept. 29,” Medco stated in a statement published on the Indonesia Stock Exchange (IDX) website on Friday.

 During the first quarter of 2017, Medco booked US$210.26 million in net oil and gas sales, up 60.7 percent year-on-year. It recorded $43.05 million in net profit, marking a more than threefold increase from the $10.2 million earned in the same period last year.

 However, Medco’ total liabilities soared by 20.17 percent year-on-year to $2.64 billion following various acquisitions. Medco has stated that it will use one-third of its 2017 capital expenditure, estimated at $150 to $180 million, to repay some of its debts. (hwa)

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BI expects Q2 economic growth of 5.1%

The Jakarta Post 16 July 2017

Bank Indonesia (BI) has expressed its confidence that the country’s economy grew by 5.1 percent year-on-year (yoy) in the second quarter of this year as retail sales began to recover.

BI deputy governor Perry Wajiyo said the real sales index (IPR) in May rose by 4.3 percent yoy, slightly up from 4.2 percent yoy in April, according to its retail survey. The IPR data for June is not yet available, but BI estimates the June figure at a strong 6.7 percent.

“Retail sales improved [in the second quarter] thanks to [trading] activities during Ramadhan as well as the extra income from Idul Fitri bonuses,” Perry said Friday, as quoted by kontan.co.id.

The increase in sales was driven by food and beverage sales, which rose by 9.7 percent yoy in May and by an estimated 10.9 percent yoy in June.  

The higher retail sales would have helped support second-quarter economic growth, Perry said, adding that he expected GDP growth of 5.1 percent yoy for the April-June period.

“The initial data did not show [the possibility of reaching the target], but with the latest indicators, growth in the second quarter can still be achieved,” he said.

He further predicted that the economy throughout this year may expand by 5.2 percent.

In the 2017 state budget, the government set a 5.1 percent growth target, but it upgraded its outlook to 5.3 percent in the revised 2017 budget. (dea/lnd)

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