Update News March 02, 2017

In The News

Jakarta Creative Hub, Ahok : The Real Oke Oce
Tempo, 02/03/2017

Jakarta Governor Basuki Tjahaja Purnama commonly known as Ahok, does not evade the impression that the Jakarta Creative Hub, which he just inaugurated, is similar to the Oke Oce program that has been proposed by Sandiaga Uno, his rival at the Gubernatorial Election.“That’s the real-life Oke Oce,” Ahok said on Wednesday, March 1, 2017.

The Jakarta Creative hub is located at Wahid Hasyim Street, Central Jakarta. This location will be a vessel to accommodate youth creativity.

The place stands on a vast 1,500 square meter land. The youth can utilize the facility to channeling their creativity and to create products. The place can also be used by the micro, small, and medium enterprises (SMEs).

The co-working space features 12 rooms that can be used for meeting, training, communicative forum, either by entrepreneurs or communities in general.

Besides, the Jakarta administration also provides the spot with supporting infrastructures, such as a sewing machine, wood cutter machine, 3-D printer, and many more.

The building is scheduled to be open for eleven hours a day, starting from 10:00 to 21:00. The Jakarta Creative hub also features a café which is complete with air conditioning.

The Oke Oce program is being offered by Ahok's gubernatorial rival; Jakarta regional leader candidate pair Anies Baswedan and Sandiaga Uno. Oke Oce, stands for “One Kecamatan (district) One Center for Entrepreneurship,” will be a business kick starter intended for Jakarta’s youth.

Back to top

Ahok Fast-track Cheap Apartment Development
Tempo, 02/03/2017

Jakarta Governor Basuki Tjahaja Purnama also known as Ahok, said that he will accelerate the development of affordable apartments for Jakarta residents until the end of his office term.

Development of apartments in several locations will be expedited in a bid to relocate Ciliwung riverside dwellers."Our main project is apartment development in Pasar Rumput and Pasar Minggu," Ahok said at the City Hall on Wednesday, March 1, 2017.

According to Ahok, Jakarta administration will build affordable apartments primarily for Jakarta residents subject to river normalization. Ahok said that the city will be flood-free if the normalization of Jakarta rivers runs smoothly.
Ahok said that he has no choice other than to normalize Ciliwung River to address flooding problem despite rejections from residents.

Ahok is aiming to normalize all rivers in Jakarta. Ahok has told riverside dwellers in Jakarta to move house or be relocated to affordable apartments.

"Some affordable apartments have been completed, such as Daan Mogot apartment, I can't recall the rest. But this year the apartments must be completed fast. That of Penjaringan can also be completed, many will be completed by December, 2017," Ahok said.

Back to top

Jakarta Offers New Co-Working Space for Young Entrepreneurs
The Jakarta Globe, 02/03/2017

The city administration has established a co-working space, known as the Jakarta Creative Hub, to serve as an incubator where young entrepreneurs, startup companies and small and medium enterprises can enjoy access to various facilities at low cost.

Governor Basuki "Ahok" Tjahaja Purnama inaugurated the 1,500-square-meter facility at Graha Niaga Thamrin in Jalan Mas Mansyur, Central Jakarta, on Wednesday (01/03).

Development of the facility, which offers, among others, a workshop area, café, library, meeting rooms, communal office space and computers, started in November last year.

The facilities are available for use by eligible entrepreneurs at a subsidized cost to allow them to meet with partners and clients, collaborate on ideas and plans, and grow their marketing networks.

Ahok, who is a businessman-turned-politician, said apart from offering a co-working space, the hub – only accessible to people holding Jakarta identity cards –  will also offer entrepreneurship training, including craftsmanship training, supported by experts and players in the creative industry.

Other than that, the Jakarta government also offers a financing scheme to fund budding entrepreneurs, where they get to keep 80 percent of their profit from the business, while the city administration takes the remainder to fund hub.

Veronika Tan, chairwoman of the Jakarta chapter of the National Handicraft Council (Dekranasda), said she expects this facility to positively inspire the capital's youth, while the Jakarta government can leverage the skills of talented young people who wish to become entrepreneurs, but who may be constrained by hurdles such as capital, office space, ideas and access to marketing.

"The way it will work, is just like when we grant a scholarship. Those qualifying for it must be the smart and committed ones," said Veronica, who is also Ahok's wife.

Leonard Theosabrata, a consultant involved in the establishment of the Jakarta Creative Hub, said it is expected to become self-financing in the future. "We don't want to rely on funding from the Jakarta administration," he said.

After Wednesday's inauguration, the hub will put hold an open house to welcome guests to inspect the facilities, submit their proposals to use it and register.

He said the hub is intended to create new entrepreneurs and help shape the ideas and business plans of young businesspeople before they submit funding proposals.

Back to top

Ministry to Build Largest Dam in East Nusa Tenggara
Tempo, 02/03/2017

The Public Works and Public Housing Ministry plans to build this year Temef Dam in South Central Timor Regency, East Nusa Tenggara (NTT). The dam is dubbed the largest in NTT with a capacity of 81.15 million cubic meters.

The dam will be built to serve irrigation needs of 6,000 hectares of land, the Ministry said in a written statement on Wednesday. Moreover, it will serve the need for raw water of 0.13 cubic meters per second and generate 2.8 megawatts of electricity.

Public Works Minister Basuki Hadimuljono expects the development of the dam and three others to solve NTT’s drought problem. NTT is the most drought-stricken province in Indonesia.

“People have been getting water from bored wells maintained by PDAM [regional-owned water company] with pumps. In rural areas, those who have not enjoyed the plumbing system must collect water from its source far away from home,” Basuki said.

The Public Works Ministry is currently building three dams in East Nusa Tenggara: Raknamo in Kupang, which is 87.11 complete, Rotiklot in Belu, which is 44 percent complete, and Napun Gete in Sikka, which is 0.7 percent complete.

Back to top

Qantas to Offer More Sydney-Denpasar Flights
The Jakarta Globe, 02/03/2017

Qantas is increasing the frequency of its Sydney-Denpasar flight to respond to customer demand, the company said in a statement on Wednesday (01/03). The Australian flag carrier will fly seven days a week using Boeing 737-800 from Sydney to Denpasar starting March 26.

Previously Qantas offered the flight only four days a week. However, the flight will be scaled back down to four days a week during low season, from April 27 to May 28. In December last year, Qantas announced its previously seasonal Sydney to Denpasar flight will be available all year long.

The airline had stopped the routine flight in 2008. Other airlines that offer a direct flight to Denpasar, Bali, aside from Qantas, are Indonesia's flag carrier Garuda, Virgin Australia and Qantas subsidiary Jetstar.

Only Jetstar currently offers the flight every day of the week.  Indonesia — Bali in particular — is one of Australians' top overseas travel destinations.

According to the latest data from Indonesia's statistics agency, 1.03 million overseas tourists visited the country in January, 10.2 percent of which from Australia.

Back to top

King Salman Eyes Investment in Oil, Tourism Sectors
Tempo, 02/03/2017

House of Representatives deputy speaker Taufik Kurniawan said that Saudi King Salman bin Abdulaziz al-Saud’s visit to Indonesia is expected to strengthen economic ties between Indonesia and Saudi Arabia in oil and tourism sectors.

According to Taufik, Saudi Arabia-based oil company Aramco’s investment in Cilacap, Central Java, has been going well. With a visit from King Salman, Taufik hopes that the Indonesian government will seize the opportunity to boost the bilateral cooperation.

In the tourism sector, Taufik viewed that Bali has a huge investment potential for King Salman. In addition to Saudi Arabia, a number of Middle Eastern countries and Malaysia are also interested in investing in Bali’s tourism sector. Taufik added that King Salman’s visit would open a possibility to develop Bali’s tourism sector.

“King Salman’s visit can also boost Indonesia’s economy,” Taufik said after inspecting the House’s preparation to welcome the King on Wednesday, March 1, 2017.

Taufik added that Saudi King’s visit would strengthen emotional ties amid debates related to the diplomatic relationship between the two countries.“A visit from the Arab King after 47 years is expected to strengthen the bilateral relationship,” Taufik said.

Back to top

Pertamina to Build Centralized Crude Terminal in East Kalimantan
Tempo, 02/03/2017

Rachmad Hardadi, director of processing and petrochemical megaproject at state oil company Pertamina, said that his company has planned to build a centralized crude terminal in Lawe-Lawe, East Kalimantan, to support Pertamina’s refineries in Balikpapan and Bontang.

“This [terminal] is for strategic petroleum reserves. If we use pipes, the distance [from the terminal] to Bontang is 80 or 100 kilometers,” Rachmad said in Jakarta on Tuesday, February 28, 2017.

Rachmad explained that if a pipeline project can be built for this project, the Bontang refinery project will no longer need to build a large crude terminal. In addition, the Lawe-Lawe crude terminal is expected to serve Pertamina’s refineries in Balikpapan.

“Therefore the capital expenditure for the Balikpapan [refineries] can be lower,” Rachmad explained.
Rachmad revealed that the crude terminal construction is expected to be completed by 2021. The centralized crude terminal will be built on a 1,100-hectare land owned by Pertamina.

Rachmad explained that the crude terminal will be built with the build operation and transfer. According to Rachmad, Pertamina will be willing not to have shares from the project.“Many investors are interested [in the project]. After 15 or 20 years, the terminal will be handed over to Pertamina,” Rachmad said.

Rachmad hopes that the project expose for the centralized crude terminal project will be conducted in March. However, Rachmad admitted that Pertamina will discuss the project at the board of director level.

Back to top

Aramco, Pertamina Sign Agreement Following King Salman`s Visit
Tempo, 02/03/2017

King Salman bin Abdulaziz al-Saud State-owned met with President Joko Widodo at the Bogor Palace yesterday. In the meeting, Saudi Aramco agreed to invest USD6 billion or roughly IDR80.1 trillion.

Foreign Minister Retno Marsudi said that Jokowi has welcomed the signing of the refinery development master plan (RDMP) Cilacap by state-owned oil and gas company Pertamina and Saudi Aramco. “We encourage a prompt establishment of a joint venture and basic engineering design,” Retno said in Bogor on March 1, 2017.

Retno said that the agreement between Pertamina and Saudi Aramco will commence this year. Agreements in other sectors will be performed gradually.

Aside from RDMP Cilacap, other energy projects were also discussed. The Indonesian government has touted RDMP Dumai, Balongan and Bontang. The projects of mine mouth power plant in Jambi and infrastructure development have also been offered.

Back to top

King Salman-Jokowi Meeting Results in 11 Agreements
Tempo, 02/03/2017

Saudi Arabia`s King Salman bin Abdulaziz al-Saud and President Joko Widodo, also known as Jokowi, witnessed cooperation signings at the Bogor Place on Wednesday, March 1, 2017. The Indonesia-Saudi Arabia bilateral meeting resulted in 11 agreements.

Foreign Minister Retno Marsudi said that two key topics discussed in the meeting were economy and Muslim affairs.“The President appreciated the decision to return hajj quota for Indonesians to 211,000,” Retno said in Bogor on Wednesday, March 1, 2017.

President Jokowi also positively welcomed additional quota for 10,000 hajj pilgrims in 2017. The Indonesian government expressed its commitment to removing barriers in the trade sector.

President Jokowi called on King Salman to provide access for Indonesian products, particularly halal products, to Saudi Arabia’s market.
Retno added that the Saudi government expressed its commitment to financing development projects in Indonesia and pledged US$1 billion worth of investment fund.

The Indonesian government also called on the Saudi government to protect Indonesian migrant workers in Saudi Arabia. President Jokowi and King Salman also discuss the Israel-Palestine conflict.

Back to top

Indonesia Signs LoI With Switzerland On Vocational Education
Antara News, 02//03/2017

Indonesia and Switzerland signed a letter of intent (LoI) for cooperation to strengthen Indonesia’s vocational education system in the manufacturing sector.

The cooperation will come under a dual education-and-training system. Switzerland Ambassador to Indonesia Yvonne Baumann said the dual system would allow students to combine learning processes at school and in the workplace.

“Switzerland has consistently ranked among the world’s most competitive economies and has one of the lowest rates of youth unemployment in the world,” she said after the LoI signing with the Industry Ministry in Mojokerto, East Java, on Tuesday.

“One of the reasons for that success is our education system and the dual vocational education and training system, which has been crucial for Switzerland’s economic performance.”

In addition to signing the LoI, the two parties are also seeking to assist a certain manufacturing sector and link it with vocational schools (SMK) in the next three to six months.

The embassy has stated that Switzerland has allocated 75 million Swiss Franc (US$74.36 million) for various development projects in the 2017-2020 period to enhance bilateral relations with Indonesia.The funds will be allocated for macroeconomics assistance, private sector development, infrastructure and trade.

Meanwhile, earlier on Tuesday, the Industry Ministry launched a demand-driven vocational program named "Link and Match" in an industrial area in Mojokerto to address the lack of skilled workers, a problem that hampers the development of some industries.

Back to top