Update News March 10, 2017

In The News

BRI launches full digital branches, counters
The Jakarta Post, Fri, 10 March 2017

State-owned lender Bank Rakyat Indonesia (BRI) has officially launched 13 full digital branches and 100 digital counters across Indonesia, allowing customers to experience self-service banking transactions.

The service is part of BRI’s effort to fulfill the needs of its millennial and digital savvy customers in the growing digitalization trend, said BRI president director Asmawi Syam in Jakarta on Thursday.

“[Many] Millennials do not want to bother themselves standing in line and filling out paper forms in conventional banks. These full digital branches exist as a solution for them. Everything is quick and complete as served by high-tech machines,” Asmawi added.

As simulated during the launch, it took only three minutes to create a new bank account using the hybrid machine in the BRI full digital branch guided by live video banking service.

The digital branches would operate in three airports and 10 malls in 12 big cities across the country. The 100 digital counters are available in the conventional bank branches as part of the learning media for customers before going to full digital service.

BRI hopes the number of BRI full digital branches increases to 25 and 200 for digital counters by the end of 2017.
BRI is the largest bank in micro, small and medium enterprises (UMKM) with Rp 1.003 trillion consolidation assets and Rp 25.8 trillion net profits in 2016. It has 10,643 branches and 24,292 ATM machines in the country. (dra/bbn)
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Shell launches first fleet card in Indonesia
The Jakarta Post,Fri, 10 March 2017

PT Shell Indonesia, the local subsidiary of global oil and gas giant Royal Dutch Shell, launched on Thursday the Shell Fleet Card platform, the first post-paid gas transaction card in Indonesia for corporate users.

The card offers customers a dashboard monitoring facility that automatically updates transactions at each of the company’s gas stations in real time. A report is sent daily to the corporate user.

The platform is expected to minimize time-consuming reports and prevent fuel fraud and unintentional fuel transactions due to lost proofs of transaction.

“We are glad to take this step forward to promote a cashless society within Indonesia,” Shell Indonesia retail director Wahyu Indrawanto said in a statement.

Globally, Shell Fleet Card has served 1.65 million customers in 34 countries. Among these customers are international logistics companies DHL Express and FedEx.

At present, Shell Indonesia operates 79 gas stations in Greater Jakarta, Bandung and North Sumatra.
“After more than 10 years operating in Indonesia, we believe this is the right time to launch the Shell Fleet Card as we have been able to build quite a strong network of gas stations, especially in Greater Jakarta,” Wahyu said during the launch of the card in Jakarta.

The card also allows managements to set a velocity profile for the number of transactions each day, the number of liters, frequency and location. Each card contains the vehicles’s license plate, allowing further control for fleet managers monitoring the dashboard. (bbn)
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WIKA secures new contracts worth Rp13.32 trillion
Antara News, Fri, 10 March 2017

Jakarta (ANTARA News) - State construction firm PT Wijaya Karya Tbk (WIKA) has signed new contracts for the construction of various projects worth Rp13.32 trillion until early March 2017.

The contracts accounted for 30.80 percent of the target for the whole year at Rp43.24 trillion, WIKA Finance Director Kosasih said here on Thursday.
"The target of new contracts for 2017 represents a 47.5 percent increase compared to the previous year," he stated.

To finance the projects, the company is in the process of applying for a syndicated loan of Rp5 trillion, which will be repaid in three years with competitive interest, he noted.

In addition, the company will also issue bonds worth Rp5 trillion to Rp10 trillion, with a maturity period of 5 to 10 years.
"WIKA has secured good rating from international rating agencies. Our rating is far better than those of similar companies," he remarked.

He pointed out that WIKA had just won a tender for the construction of Cengkareng-Batu Ceper- Kunciran toll road.

The company won the tender for the project worth Rp2.172 trillion after it passed a series of evaluations including administrative, technical, and price qualifications, he underlined.

"We hope the project could be completed in 457 calendar days," he assured.
WIKA has set the target of net profit for 2017 Rp1.219 trillion, up 20.45 percent from Rp1.102 trillion a year earlier.
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President evaluates strategic projects in C Sulawesi
Antara News, Fri, 10 March 2017

President Joko Widodo chaired a limited meeting at the Presidential Office here on Thursday to evaluate the realization of national strategic projects and priority programs in Central Sulawesi province.

The evaluation is expected to enable the even distribution of development gains and welfare in the province.
The president stated that the even distribution of development gains and welfare is the goal of the national development for the country, including Central Sulawesi.

Although Central Sulawesi recorded high economic growth in the past few years, it still has high poverty rate, he added.
In 2016, the Central Sulawesi economy grew 9.98 percent, well above the average national growth rate of 5.02 percent. The high growth is expected to serve as a momentum to increase developmental activities and lower the high poverty rate, he noted.

"We also hope that the high economic growth momentum will have a direct impact on the efforts to cut down poverty rate, which currently stands at 14.09 percent. Likewise, we also hope it would expedite the even distribution of development gains in all parts of Central Sulawesi," he underlined.

The president remarked that the key sectors that have the potential to develop into core businesses in the province include nickel mining, cacao, coffee, coconut and clove plantations, and rattan and ebony wood forests.

"I want the agricultural, forestry, and mining commodities to be processed in Central Sulawesi so as to provide added value and multiple benefits to the community," he asserted.

The president also asked the related parties to pay special attention to the development of potential businesses in the forestry and marine tourism sectors.

"I call for steps to expedite the development of infrastructures to increase access to tourist destinations. The project includes the revitalization of Mutiara airport, the construction of Palu-Parigi toll road, the development of Palu port, and the improvement of Parigi ports capacity," he stated.(*)
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Japanese musical instrument manufacturer to invest $43.4 M in Indonesia
Anatara News, Fri, 10 March 2017

A Japanese musical instrument manufacturer has committed to investing US$43.4 million in Indonesia, according to the Investment Coordinating Board (BKPM).
The Japanese investor will avail the three-hour investment licensing service and direct construction investment incentive (KLIK).

BKPM Deputy for Investment Promotion Himawan Hariyoga stated that the Japanese investor will produce acoustic pianos, electric and digital pianos, violas, and piano components.

"The exports of the products are expected to reach $84.7 million per year," he noted in a press statement released on Thursday.He said nearly 99 percent of the products will be exported, and the rest will be sold in the domestic market.

The Japanese company will build its plant on 15 hectares of land in an industrial estate in Bekasi, West Java, utilizing the KLIK facility and will employ 1.6 thousand workers once the construction work on the plant is completed, he revealed.

He said the construction of the plant will be started in May 2017 and completed a year later. The company is expected to start exporting its products in September 2018.

"They have obtained a permit through the three-hour licensing service at the BKPM. In applying for the permit, they were accompanied by a Japanese integrated promotion team at the BKPM," he noted.

According to the BKPM, the realization of Japanese investment in Indonesia had reached $5.4 billion last year, placing Japan in the second position after Singapore.
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Indonesia, S Africa explore cooperation in transportation
Antara News, Fri, 10 March 2017

The governments of Indonesia and South Africa are exploring cooperation on air transportation and railways development in Kalimantan, Minister of Transportation Budi Karya Sumadi stated.

"The cooperation is a follow-up of a meeting between President Joko Widodo and his South Africas counterpart Jacob Gedleyehlekisa Zuma," Sumadi said in a press statement received here on Thursday.

A South African company has expressed interest in developing railways in Kalimantan to transport coal."Mining field in South Africa has developed in recent years," the minister stated.

The transportation ministry will study the cooperation in detail.Meanwhile, the governments of Indonesia and South Africa have agreed to increase cooperation in the field of aviation.

Widodo expected that Indonesia could be hub for flights to Asian countries as South Africa is set to be hub for flights to African countries.Meanwhile, Indonesian Ambassador to South Africa Suprapto Martosetomo noted that South Africa had a lot of business opportunities which could be explored by Indonesia."South Africa has advanced in technology. We can develop the railway sector in South Africa," he stated.

The cooperation between Indonesia and South Africa, particularly in the air transport sector, started since 1997. In that year, a treaty was signed to open the air links between the two countries.

In 2013, both countries signed a MoU related to the management of air transport rights. The MoU contained the agreement to open service flights on Indonesia-South Africa route with a frequency of seven times a week.

The two countries agreed to open the entire flight access through their respective international airports.
South Africa has three major international airports, namely Cape Town International Airport, Tambo International Airport (Johannesburg), and Durban International Airport.

However, until now there are no airlines of Indonesia or South Africa that serve flights between the two countries.
Indonesia and South Africa earlier discussed efforts to increase trade cooperation and reduction of tariff and non-tariff barriers for their prime products and commodities.

Widodo expressed his happiness on receiving Zuma, who visited the country after 12 years, at a joint press conference following the meeting between the two countries delegations here on Wednesday.

"Indonesia and South Africa are two emerging countries and members of G20 who have been working together under the South-South cooperation scheme," he stated.

Jokowi, as he is also called, stated that he hoped the partnership between the two countries, including new Asia-Africa strategic partnerships, could be more intensified. Therefore, the bilateral meeting focused on talks for more efforts to increase trade cooperation.

Jokowi has proposed a wider trade cooperation to cover Indonesia-South Africa Custom Union (SACU) cooperation and pledged to send a concerned minister to follow it up.
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Bali to host int`l air show
Antara News, Fri, 10 March 2017

Mangupura, Bali (ANTARA News) - Bali province will host an "Aero Indonesia International Air Show" in Badung district in September 2018, chief of the events organizing committee Colonel Haryanto Arif said.

The air show will give another attractions to tourists visiting Bali, he said at a meeting with Badung District Head I Nyoman Giri Prasta here on Thursday.

"The air show is initiated by the National Air and Space Power Center of Indonesia (NASPCI) in association with many parties, including the Indonesian Air Force and the organizing committee of Dubai Air Show (Tarsus)," he said.

The event is expected not only to help promote the Indonesian tourism industry but also to encourage younger generations to love aviation, he said."Several countries that we have contacted agree to the appointment of Bali to host the event," he said.

Therefore, he added he met the Badung district head to ask for permission to hold the air show at Ngurah Rai International Airport in Badung district.

Badung District Head I Nyoman Giri Prasta warmly welcomed the plan to hold the air show in the district."Basically, we agree (to the holding of the air show) and are ready to facilitate what (the organizing committee) needs to hold the world-class air show," he said.

The event will help promote tourism in Badung in particular and Bali in general, he said.
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Indonesian-Made Aircraft N219 to Have Maiden Flight in April or May
Jakarta Globe, Fri, 10 March 2017

Indonesian-made small propeller plane N219 will have its maiden flight at the end of April or the beginning of May, the Minister of Research, Technology and High Education Mohamad Natsir said on Thursday (09/03).

The plane has been delayed for a year since its developers National Space and Aviation Agency, or Lapan, and Dirgantara Indonesia, or DI, the country's aircraft manufacturer, have been struggling to pass the certification process at the Ministry of Transport.Local media reported it was N219's unsatisfactory wiring and landing gear design that caused delay in the past twelve months.

Minister Natsir said the new plane is almost ready to face several more tests including electrical grounding bonding test, leak test, fuel tank cleaning test, landing gear drop test and electrical power test, before being cleared to fly for the first time.

"We hope for a maiden flight at the end of April or the beginning of May," Natsir said.Lapan and DI envisioned N219 as a an all-rounder plane capable of transporting people or cargo to remote regions in Indonesia.

The aircraft uses a 19-seat flexible door system, and can take off and land on short and rough airstrips.
Local airliners like Lion Air — Indonesia's largest budget airline, Nusantara Buana Air, Aviastar Mandiri and Trigana Air Service have already ordered 150 N219s from DI.
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Govt: Study on Giant Sea Wall will Affect Reclamation Project
Jakarta Post, Fri, 10 March 2017

Public Works and Public Housing Minister Basuki Hadimuljono said that the results of the feasibility study for giant sea wall will have a bearing on the Jakarta Bay reclamation project. The feasibility study will be commenced soon, he said.
"We can see that there will be the comparison from the feasibility study, we’ll see," Basuki Hadimuljono said in Jakarta, Thursday, March 9, 2017.

He explained, the feasibility study will contain an assessment whether the giant sea wall would be integrated with 17 reclaimed islands or would it only be integrated with the available islands today.

According to the minister, the result will be compared and would first need to be learned. "We’ll conduct a study about it and we’ll compare everything, that’s what the feasibility study is."

The Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan today held a meeting on the National Capital Integrated Coastal Development (NCICD). Beside himself and Minister Basuki, National Development Planning Minister Bambang Brodjonegoro and Environment Minister Siti Nurbaya also attended the meeting.
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