Update News March 09, 2017

Today News, Directorate General Of Tax, The Ministry Of Finance, Noted That The Tax Amnesty Program Has Seen The Payment Of Rp113 Trillion In Retribution Fees Based On Tax Returns (Ssp) As Of March 8, 2017.

From Infrastructure Sector, First Phase (Lebak Bulus-Bundaran Hi) Of Mass Rapid Transit (Mrt) Project Construction Keeps On Accelerating. This Mass Transportation Project Is Targeted To Be Finished On March 2019.

In The News



Jokowi To Lead Cabinet Meeting To Discuss Strategic Projects
The Jakarta Post, Thu, 09 March 2017

President Joko “Jokowi” Widodo Is Set To Lead A Limited Cabinet Meeting On Thursday At The Presidential Office To Discuss National Strategic Projects And Priority Programs In Central Sulawesi And East Kalimantan As The Government Commitment To Accelerating Infrastructure Development To Boost Economy.

The Issues Will Be Considered In Two Separated Meetings In The Afternoon,” State Palace Media Bureau Head Bey Triadi Machmudin Said.

There Are 225 Projects Nationwide Which Comprise Of 47 Highway Projects, Five National Non-Toll Roads, 12 Railway Projects, Seven Of Facilities And Urban Train, 11 Airport Revitalization Works, Construction Of Four New Airports And The Development Of The Two Airports, Building 13 Ports, Three-Phase Of One Million Homes Development.

The Projects Are Stipulated In Presidential Decree (Perpres) No.3/2016 And Presidential Instruction (Inpres) No.1/2016, Giving Public Officials The Authority To Revise Or Replace Rules That Hamper Development Work And To Have Land Acquisitions Processed More Quickly. (Dan)
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Tax Amnesty Retribution Fees At Rp113tn As Of March 8
Tempo.co Thursday, 09 March 2017

Tempo.Co, Jakarta - Directorate General Of Tax, The Ministry Of Finance, Noted That The Tax Amnesty Program Has Seen The Payment Of Rp113 Trillion In Retribution Fees Based On Tax Returns (Ssp) As Of March 8, 2017.

The Retribution Fees Were Paid Based On The Receipt Of Asset Declaration Letter (Sph) Amounting To Rp4,463 Trillion Comprising Of Rp3,300 Trillion In Declared Domestic Assets, Rp1,018 Trillion In Declared Overseas Assets And Rp145 Trillion In Repatriated Funds.
All In All, Some 737,957 Asset Declaration Letters And 788,602 Tax Returns Have Been Submitted To The Tax Dg. As Many As 711,026 Taxpayers Have Joined The Tax Amnesty Program.

Tax Dg Official Hestu Yoga Said That Those Failing To Join The Tax Amnesty Program, Which Will End In March 31, Will Face Law Enforcement Under The Tax Amnesty Law.

“Meanwhile, Taxpayers Who Have Joined [The Program], But Still Hide Their Assets, If We Found The Assets They Will Be Subject To Tax Rate Of Up To 30 Percent And 200 Percent In Fines,” He Added.
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Indonesia-Japan Partnership Expected To Grow
The Jakarta Post Wed, March 8, 2017

Japan's Deputy Foreign Affairs Minister, Nobuo Kishi, Has Said Japan And Indonesia Could Benefit From Strengthening Ties, As The Two Countries Share Many Similarities. 

“Japan And Indonesia Are Archipelagic States That Are Connected Through The Sea. Hence, We Have Big Potential To Strengthen Collaboration In The Future,” Kishi Said On Tuesday After Meeting With Coordinating Maritime Affairs Minister Luhut Pandjaitan In Jakarta.

Japan Is Currently The Second-Largest Foreign Investor In Indonesia, With Investment Reaching Us$5.4 Billion In 2016, Far Above The $2.87 Billion Recorded In The Previous Year.

The Indonesian Government Has Intended To Persuade Japan To Give Further Support For Various Strategic Projects, Such As Jakarta’s Mrt System, The Patimban Deep-Sea Port In West Java, The Semi High-Speed Railway Connecting Jakarta And Surabaya In East Java And The Development Of The Gas-Rich Masela Block In The Arafura Sea.

 “Among Several Topics Discussed With The Minister [Luhut], There Were Ones Related To Patimban Port And The Semi High-Speed Railway. The Discussion Was Quite Constructive,” Kishi Said.

Total Investment Value For The Patimban Project And Semi High-Speed Railway Are Estimated At Around Rp 40 Trillion ($3 Billion) And Rp 102 Trillion, Respectively. (Bbn)
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North Kalimantan To Be Developed As Smelting Center
Antara News, Thursday, 09 March 2017

Jakarta (Antara News) - The Indonesian Province Of North Kalimantan Will Be Developed Into A Smelting Center, Industry Minister Airlangga Hartarto Stated Here On Wednesday.

"Mines May Be In Papua, Maluku, Or Other Eastern Indonesian Regions, But The Smelters Will Be Built In North Kalimantan That Enjoys A Strategic Location In Terms Of Sea Routes To Other Continents, Such As Australia, Asia, Africa, And (North And South) America," He Remarked After Attending The North Kalimantan Investment Forum 2017.

He Pointed Out That North Kalimantan Is Still Open To The Idea Of Developing Industrial Centers Due To The Availability Of Land. Its Geographic Location Offers A Special Benefit For The Youngest Province In The Country, He Added.

He Said The Decision To Develop The Region Into An Industrial Zone Was Made, As It Was Included In The National Industrial Development Master Plan For The 2015-2035 Period.

It Is Also Included In The Plan For The Development Of Power Plants, With A Capacity To Generate 6,600 Megawatts (Mw) Of Electricity, He Noted.

The Minister Remarked That Industrial Development In The Region With Cover The Tanah Kuning International Port And Industrial Zone As Well As The Development Of Roads, Bridges, Seaport, And Airport.

The Tanah Kuning Industrial Zone Was Proposed By The Ministry Of Industry And Has Been Approved As A National Strategic Project.

North Kalimantan Is Located In The Second Indonesian Archipelagic Sea Lane, Which Is An International Trading Lane And Located In The Future World Economic Center And Directly Facing The Neighboring Countries.

Right Now, The Aluminum And Bauxite Potential In Kalimantan And Indonesia Has Not Been Optimally Exploited, Airlangga Affirmed.

The 6,600-Mw Power Plant Project In The District Of Bulungan Is Expected To Provide Electricity At Cheap And Competitive Rates To Industries, Especially Aluminum And Its Derivatives, In Future.

The Tanah Kuning Industrial Zone Covers An Area Of Up To 10 Thousand Hectares In Which Core Industries Will Be Developed Besides Mineral Processing Industries As Well As Palm Oil And Cacao Processing Industries And Fisheries.(*)
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President Jokowi Receives Sri Lankan Counterpart
Antara News, Thursday, 09 March 2017

Jakarta (Antara News) - President Joko Widodo (Jokowi) Received His Sri Lankan Counterpart Maithiripala Sirisena At The Merdeka Palace Here On Wednesday To Strengthen Cooperation In Several Areas, Including The Maritime Sector.

The Sri Lankan President, Who Is In Indonesia As Part Of A State Visit, Arrived At The Merdeka Palace At 10 A.M. Local Time And Was Greeted By Numerous Elementary School Students Dressed In Their Traditional Attire.

During The Visit, The Two Heads Of State Held A "Veranda Talk" In The Palace Yard.

Jokowi Was Wearing A Blue Suit And A Red Tie, While The Sri Lankan President Was In His White National Costume.

After The Veranda Talk, The Two State Leaders Held A Bilateral Meeting With Several Ministers From The Two Countries.

At A Joint News Conference, President Jokowi Remarked That Sirisenas State Visit To Indonesia Was The First Since A Sri Lankan President Had Visited The Country 41 Years Ago.

"This Visit Is More Special, As 2017 Is The 65th Year Of Diplomatic Relations Between Indonesia And Sri Lanka," Jokowi Pointed Out.

The President Said Indonesia Was Ready To Support The Ongoing Development In Sri Lanka And To Follow It Up By Preparing A "Free Trade Agreement."

"The Second Priority Is In The Field Of Democracy, And We Agreed To Increase Cooperation Through Capacity Building And The Exchange Of Experiences," The President Noted.

The Two Heads Of State Ended The Meeting With A Luncheon, Attended By The Delegates And Ministers.

President Sirisena Will Return To The Sri Lankan Capital Of Colombo On Wednesday Afternoon.

Sirisena Has Also Participated In The Iora Summit 2017 At The Jakarta Convention Center That Produced The Jakarta Concord, Emphasizing Cooperation In The Field Of Combating Terrorism And Violence.(*)
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Australia Explores Possibility Of Investment In W Nusa Tenggara
Antara News, Thursday, 09 March 2017

Central Lombok, W Nusa Tenggara (Antara News) - A 15-Member Australian Delegation Visited Mandalika Special Economic Zone In Central Lombok District, West Nusa Tenggara Province, To Look Into The Possibility Of Investment In The 1.2 Thousand-Hectare Economic Zone.

The Delegation, Which Comprised Of Investors And Consultants, Have Expressed Keen Interest In Investing In The Economic Zone, Spokesman For The Australian Embassy In Jakarta, Chris Bandy, Said In Tanjung Aan Beach In Central Lombok On Wednesday.

"They Stated That The Location Was Good. It Has A Very Good Potential For Australian Investors To Invest There," He Noted.

The Australian Delegation Visited Tanjung Aan Beach And Merese Hill To Look Into The Potential Businesses That They Can Develop In The Economic Zone, He Remarked.

"This Is In Line With The Australian Embassys Decision To Focus On Lombok And Increase (The Number Of) Tourist Sites In Lombok," He Underlined.

Director Of Indonesia Tourism Development Corporation (Pt Itdc) Dharma Setiawan Pointed Out That The Australian Delegations Visit To Lombok Is Part Of Indonesia-Australia Business Week Held In Jakarta.

Before Visiting Lombok, The Australian Delegation Explored The Possibility Of Investment In Other Tourist Destinations In The Country, He Said.

"They Are Interested In Mandalika Now," He Added.(*)
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First Phase Of Mrt Project Targeted To Finish March 2019
Tempo, Thursday, 09 March, 2017

Tempo.Co, Jakarta - First Phase (Lebak Bulus-Bundaran Hi) Of Mass Rapid Transit (Mrt) Project Construction Keeps On Accelerating. This Mass Transportation Project Is Targeted To Be Finished On March 2019.
"Train Have Been Produced. First Train Will Arrive On Next Year's April," Said William Sabandar, President Director Of Pt Mrt At City Council Building, Tuesday (3/7).

He Expressed The First Phase Of Mrt Project Cost Is Rp 15 Trillion. 13 Mrt Stations To Be Provided From Lebak Bulus To Bundaran Hi With Distance Of 30 Minutes.

"Before 2018 Asian Games, All Constructions Of Mrt First Phase Is Targeted To Be Finished," He Said.

He Added That His Side Also In The Middle Of Accelerating Mrt Construction Project For Second Phase (Bundaran Hi-Ancol) Along 14.6 Kilometers That Targeted Will Start To Build In The Beginning Of Next Year.

"Recent Mrt First Phase Progress Has Reached 66 Percent. Until The End Of This Year We Targeted To Reach 93 Percent," He Closed.
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Coal Miner Adaro Books 126 Percent Increase In Net Profit
The Jakarta Post, Wed, March 8, 2017

Publicly Listed Coal Miner Pt Adaro Energy Booked A 126 Percent Annual Increase In Net Profit To Us$341 Million In 2016 Amid Volatility In Global Coal Prices, Thanks To A 14 Percent Drop In Cost Of Revenue To $1.84 Billion.

Last Year, The Company Saw A Nearly 6 Percent Annual Decrease In Net Revenue To $2.52 Billion. Due To The Lower Revenue, The Royalties To The Government Fell 6 Percent Year-On-Year To $259 Million. Royalties Accounted For 14 Percent Of Its Total Cost Of Revenue.

The Drop In Cost Of Revenue Was Also Triggered By A Lower Strip Ratio, A Lower-Than-Expected Fuel Price And Adaro’s Various Internal Efficiency Measures.

 “We Have Hedged Approximately 10 Percent Of Our Fuel Requirements For The Year 2017 At Prices Below Our Budget To Mitigate Risks Associated With Oil Price Fluctuations In The Coming Year,” The Company Stated In A Statement On Tuesday.

Moreover, Adaro’s Operational Earnings Before Interest, Taxes, Depreciation And Amortization (Ebitda) Increased By 22 Percent To $893 Million Year-On-Year. The Company Plans To Maintain The Operational Ebitda At Around $900 Million To $1.1 Billion In 2017.

Adaro Also Expects That It Can Produce Around 52 Million Tons Of Coal In 2017, More Or Less The Same With Its Production Last Year, With A Capital Expenditure Of Around $200 Million To $250 Million. (Bbn)
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Indonesia, Saudi Agree On Unlimited Flight Frequency
Tempo.co, Thursday, 09 March, 2017

Tempo.Co, Jakarta - Indonesia And Saudi Arabia Has Agreed On Unlimited Flight Frequency Between The Two Countries, An Official Of The Transportation Ministry Said On Wednesday.

The Unlimited Frequency Would Be Effective In Five Airports In Indonesia And Four Airports In Saudi Arabia, The Ministrys Director General Of Air Transportation Agus Santoso Said.

"Following The Meeting With Saudi King Salman, Five Airports Here And Four Airports There (In Saudi), Which Previously Had Limited Frequency, Will Now Serve Unlimited (Flights)," He Reiterated.

Meanwhile, The Director Of Air Transport Maryati Karma Said Five Indonesian Airports That Would Serve Unlimited Flights From Saudi Arabia Include Kualanamu Airport In Medan, Sultan Hasanuddin Airport In Makassar, Juanda Airport In Surabaya, Ngurah Rai Airport In Denpasar, And Soekarno-Hatta Airport In Jakarta.

The Four Saudi Airports Are Located In Madinah, Damam, Riyadh, And Thaif.
"Flight Frequency To The Airport In Thaif Is Currently Seven Flights Per Week," She Added.
The Agreement Would Be Effective For An Indefinite Period Of Time, Maryati Noted, Adding That It Has Been Effective Since Jan 27.

She Also Pointed Out Some Indonesian Airways That Have Served The Saudis Route, Namely Garuda Indonesia, Sriwijaya, Arab Saudi, Citilink, And Lion Air.

Previously, Indonesia And Saudi Arabia Had Limited The Flight Frequency Between The Two Countries To 35 Flights Per Week.

The Authority Has Also Set Three More Airports To Serve Flights To Saudi Arabia From Palembang, Solo, And Balikpapan.

"But It Was Not Unlimited; There Were Only Seven Flights Per Week," She Remarked.
Such A Reciprocal Cooperation Is Important For Both Countries. This Is Because Indonesia Has A Market Potential Of Hajj Pilgrims And Saudi Arabia Is Home To Mecca And Madinah, Maryati Added.
A Memorandum Of Understanding On The Cooperation Was Signed During King Salmans State Visit To Jakarta.

The King Has Also Agreed To Increase Hajj Quota For Indonesia By 10,000 In 2017.
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