Update News November 07, 2017

Today News, Jakarta Governor Anies Baswedan requested Jakarta’s entire regional work unit (SKPD) to redesign the sidewalks that are currently being restored on Central Jakarta’s Jendral Sudirman – MH Thamrin street.

From Transportation  Sector, State-owned ship operator PT Pelayaran Nasional Indonesia (Pelni) has announced that it will purchase six secondhand ships to strengthen its fleet as part of the implementation of tol laut (maritime fast route), a concept introduced by President Joko “Jokowi” Widodo.

In The News

Anies Baswedan Redesign Sidewalks Left by Former Governor Djarot
TEMPO.CO, 07 November 2017

TEMPO.CO, Jakarta - Jakarta Governor Anies Baswedan requested Jakarta’s entire regional work unit (SKPD) to redesign the sidewalks that are currently being restored on Central Jakarta’s Jendral Sudirman – MH Thamrin street.

Anies Baswedan suggests that the original design did not make any space available for motorcyclists to travel through the major street in Jakarta. Anies wants every type of vehicle to be able to pass the street, including motorcycles.

The governor has his own view regarding urban sidewalks and argues that it must act as a place for pedestrians to socially interact with each other. He also wants sidewalks to feature positive community activities.

“It must be sheltered [by trees] so that pedestrians can travel through it not just in the afternoon or evening. Jakarta is blistering hot and humid, and without trees, few people utilize sidewalks,” said Governor Anies Baswedan on November 6.

Interestingly, Anies suggested that sidewalks should not only be used for pedestrians to travel through, but it should also act as a place to hold interactions either economically, culturally, and socially.

“We have even planned cultural areas, which features art-related activities, such as music, visual arts. Sidewalks should not just be a place for plants and business areas, but should be an arena for cultural activities,” said Anies Baswedan.

Jakarta is currently conducting a massive restoration throughout the sidewalks located at Jendral Sudirman and MH Thamrin street, which is dubbed as ‘Our Sidewalks’. The project is expected to be complete in July 2018.

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Pelni purchases six secondhand ships to serve ‘tol laut’ routes
The Jakarta Post, 06 November 2017

State-owned ship operator PT Pelayaran Nasional Indonesia (Pelni) has announced that it will purchase six secondhand ships to strengthen its fleet as part of the implementation of tol laut (maritime fast route), a concept introduced by President Joko “Jokowi” Widodo.

Pelni’s cargo and logistics director Harry Boediarto said his company had spent Rp 500 billion (US$37 million) to purchase the ships, four of which were expected to arrive in late 2017 and two others that would be delivered early next year.

“We bought secondhand ships with ages under 10 years,” Harry said in Jakarta on Monday as reported by tempo.co, adding that the ships’ measurements ranged from 200-300-feet equivalent units (TEUs) to 350-400 TEUs.

The official said the ships were also equipped with cranes to facilitate loading and unloading activities at ports.

Pelni has been tasked by the government to service seven tol laut routes, mostly in eastern Indonesia.

Pelni spokesman Akhmad Sujadi previously said his company needed the immediate arrival of the ships to improve the frequency of its tol laut routes, which were only served by one ship each. (bbn)

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Q3 Economic Growth at 5.06 Percent
TEMPO.CO, 07 November 2017

TEMPO.CO, Jakarta - The Central Statistics Agency (BPS) recorded Indonesia's growth based on expenditure grew 5.06 percent year-on-year (yoy) as of the third quarter this year. Agency chief says the increase was driven by all components.

"All components of GDP expenditure grew positively, the highest was exports. Meanwhile government consumption and investment also grew well," BPS chief Suhariyanto said in a press conference in Jakarta, Monday.

The highest growth on an annual basis was achieved by goods and services exports, which reached 17.27 percent (yoy). This component accounted for 20.50 percent to the GDP structure.

Non-oil exports grew 20.51 percent (yoy) with vegetable fats and oils as main commodities. Meanwhile, oil and gas exports recorded a growth of 3.20 percent (yoy).

Suhariyanto said most of Indonesia's exports go to China, USA, Japan, India and Singapore.

Read: Economic Growth to Reach 6 Percent in 2020-2021: Bank Indonesia

According to the BPS, the Indonesian economy based on GDP at the current prices of Q3/2017 reached Rp3,502.3 trillion. Based on the constant prices of 2010, the figure reached Rp2,551.5 trillion.

With an economic growth of 5.06 percent (yoy), the year-to-date cumulative growth rate as per quarter three is 5.03 percent.

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PDIP Backs Asrun-Hugua for 2018 Southeast Sulawesi Election
TEMPO.CO, 07 November 2017

TEMPO.CO, Jakarta - The Indonesian Democratic Party of Struggle (PDIP) officially announced that they would endorse Asrun and Hugua for the 2018 Southeast Sulawesi Gubernatorial Election.

PDIP Spokesman Sultra Agus Sanaa confirmed the party’s move and its official recommendation has been sent to the pair on Monday, November 6.

“It is true that the recommendation has been issued,” said Sultra.

The official letter of recommendation towards Asrun-Hugua was signed by PDIP Party Council Chairman Bambang D.H. and Secretary General Hasto Kristiyanto.

Asrun is currently PAN’s regional parliament chairman and former Mayor of Kendari, meanwhile, Hugua is PDIP’s regional parliament chairman and former Regent of Wakatobi.

The move by PDIP for the election would mean that the pair Asrun – Hugua has officially obtained three official recommendations from three political parties which include PAN (national mandate party), PKS (Prosperous Justice Party), and PDIP.

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Government to allocate Rp3.17 trillion for infrastructure development near Malaysia border
ANTARA News , 07 November 2017

Nunukan, N Kalimantan (ANTARA News) - The central government is set to allocate another Rp3.17 trillion for the construction of several facilities near the border with Malaysia in North Kalimantan province.

In a press statement released on Monday, North Kalimantan Governor Irianto Lambrie said he has received information that the central government would increase the budget fund for the construction of several facilities in the new province.

"Next year, North Kalimantan will receive another Rp3.17 trillion to build a number of facilities near the border with Malaysia," he stated.

He noted that Rp1.14 trillion of the funds will be allocated to the province, through the Public Works and Housing Ministry, to build 127.5 kilometers of road parallel to the borders.

The fund will also be used to build 10 low-cost houses for the poor in Malinau district and eight social houses for the low-income people in Lindung Payau. 

In addition, the fund will also be used to build 25 houses in Bulungan district and for the construction of the second phase of clean water networks in the district.

The Home Affairs Ministry plans to build a village head office in Bahau Ulu, Malinau district, and 16 village offices in Nunukan district, comprising of six units in Lumbis Ogong sub-district, four units in Krayan Selatan, and eight units Tulin Onsoi sub-district.

The Defense Ministry will build an air base in Tarakan, including improving the living standard of Indonesian Air Force personnel.

The Transportation Ministry will build RA Bessing Airport in Malinau district at a cost of Rp41.7 billion.

The provincial government will also receive Rp99.4 billion to upgrade Nunuka Airport, including subsidy for the operation of ferry boats for Tarakan-Nunukan, Nunukan-Sebatik, and Nunukan-Seimenggaris routes.(*)

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World Bank sees low contribution of indonesia`s FDI
ANTARA News , 07 November 2017

Jakarta (ANTARA News) - The World Bank has witnessed low contribution of foreign direct investment (FDI) in Indonesia, despite its improvement in ease of doing business (EODB) rank to 72 among 190 surveyed countries.

"Indonesia is yet to do its best in investment," the World Banks Chief of Country Program on Equitable Growth Youngmei Zhou stated at a discussion on Indonesias EODB here on Monday.

Zhou noted that Indonesia has a low rank of FDI competitiveness index from the Organization for Economic Cooperation and Development (OECD), despite President Joko Widodos effort to improve the ranking.

The World Bank has identified some factors, namely the restriction of foreign ownership in some regions, discriminative investors screening, restriction in land buying, capital, as well as in profits, as reasons behind the low FDI in Indonesia, Zhou remarked.

"The Indonesian government should improve on this," she added.

Meanwhile, Chief of the Indonesias Coordinating Board of Investment (BKPM), Thomas Trikasih Lembong remarked that the achievement in EODB is not everything, but it could be seen as a barometer that could be seen globally.

"Of course, apart from the EODB, there are plenty of regulations in licensing as well as business climate that need to be improved," Thomas explained.

In the annual report of "Doing Business 2018," released by the World Bank, Indonesias EODB in 2018 has improved to rank 72 from 190 surveyed countries.

The report measures the regulations that enhance business activity and those that constrain it. Data in Doing Business 2018 are current as of June 1, 2017.

In EODB report 2017, Indonesias position increased 15 ranks from 106 to 91, and it was put on the list of "10 Reformers" countries.

During the past two years, Indonesias position has increased by 34 ranks. Before 2017, the countrys EODB rank ranged between 116 and 129.

In 2018, Indonesia is ranked six among ASEAN countries, after Singapore (rank 2), Malaysia (24), Thailand (26), Brunei Darussalam (56), and Vietnam (68).(*)

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Indonesia superpower country of culture: UNESCO
ANTARA News , 07 November 2017

Paris (ANTARA News) - The United Nations Educational, Scientific and Cultural Organization (UNESCO) has considered Indonesia to be a superpower country in terms of culture.

The statement was made by UNESCOs ADG Culture, Fransesco Bandarin, during a meeting with Indonesian Education and Culture Minister, Muhadjir Effendy, on the sidelines of the 39th UNESCO General Assembly that takes place at UNESCO Headquarters in Paris until Nov 14, 2017.

"There is no country in the world which has cultural heritage as rich as Indonesia, Effendy stated, quoting Bandarin, in an interview with ANTARA in London, on Sunday (Nov 5).

From wayang (shadow puppets), keris (traditional daggers), batik (traditional textile originally from Java), batik training, angklung (traditional music instrument from Sunda), noken (Papuan traditional woven bags), to Saman dance from Aceh and Balinese dance, Indonesias intangible cultural heritages have been widely recognized by UNESCO.

Almost 600 intangible cultural heritages are nationally listed from Indonesia, Alternate Permanent Delegation to UNESCO T.A. Fauzi Soelaiman remarked.

UNESCOs recognition of Indonesia as having a huge diversity of cultures and heritages encourages the government to carry out inventory and maintenance measures of intangible objects, as regulated through the Law No. 5 of 2017 on the Advancement of Culture.

"Now, we must no longer hesitate in taking care of and promoting our cultural heritages," Effendy explained.

The multidimensional educator and intellectual revealed that various cultural heritages scattered throughout Indonesia will be handed over to the local government to be selected and certified for national recognition, as well as global recognition by UNESCO.

In addition, various cultural products also have additional value, which will be useful for improving the national economy.

A number of Indonesian heritages that have received UNESCO recognition are Borobudur and Prambanan temples in 1991, as well as the Cultural Landscape of Bali Province: the Subak System.

This year, the unique collection of more than 250 ancient tales revolving around the mythical Javanese Prince Panji, which is curated by Leiden University Libraries (UBL), has been acknowledged as world heritage by UNESCO.

Leiden collection of Panji tales is included in the UNESCO Memory of the World Register, along with similar collections maintained by the national libraries of Indonesia, Malaysia, and Cambodia.

In the years to come, Indonesia expect the Phinisi Ship to be listed as UNESCOs intangible cultural heritage, Old City of Jakarta to be UNESCOs world cultural heritage, as well as Pantun Melayu and Pencak Silat as UNESCOs intangible cultures.(*)

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Economic growth prospect to be better in Q4: BI
ANTARA News , 07 November 2017

Jakarta (ANTARA News) - The prospect of Indonesias economic growth would be better in the fourth quarter due to increasing price of commodities and improvement in the worlds economy, according to Bank Indonesia (BI).

In its official statement, the central bank stated that investment would also increase in line with increasing exports in the fourth quarter due to acceleration of economic structural reform and conducive investment climate.

"The relaxation of monetary policy is expected to boost the momentum of economic growth," the banks head of communications department, Agusman, revealed.

He admitted that in the third quarter, growth of household consumption had been slower than in the previous quarter, but there has been an improvement in the governments consumption, exports, and investment.

"Improvement in the export performance is driven by improvement in the price of commodities, such as crude palm oil and coal, as well as improvement in the worlds economy," he explained.

Based on Central Bureau of Statistics data, household consumption in the third quarter of 2017 grew 4.93 percent, a bit slower than in the second quarter, which was at 4.95 percent.

Agusman revealed that investment grew the highest since the first quarter of 2013, driven by investment in construction and non-construction sectors.

"Construction investment grew high due to infrastructure development, while non-construction investment grew high because of purchase of machineries and equipment," he pointed out.

The central bank considered the realization of 5.06 percent economic growth in the third quarter of 2017 to be better than in the previous quarter and also the same period last year.

Referring to BIs previous statement, realization of economic growth at 5.06 year-on-year in the third quarter of 2017 was lower than the banks expectation at 5.1-5.2 percent.(*)

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Govt to intensify job creation in 2018
The Jakarta Post, 06 November 2017

The government is to intensify its labor programs next year in 100 regencies and cities in its effort to boost job creation, kontan.co.id reported on Monday.

The program will be undertaken by a number of ministries, including the Villages, Disadvantaged Regions and Transmigration Ministry, the Public Works and Public Housing Ministry, and the Transportation Ministry.

Villages, Disadvantaged Regions and Transmigration Minister Eko Putro Sandjojo has said that 30 percent of the ministry’s Rp 60 trillion (US$4.44 billion) budget would be allocated for its labor intensification program, which was expected to create 5.7 million jobs.

Meanwhile, the Public Works and Housing Ministry will disburse Rp 11.2 trillion to create an estimated 236,656 jobs.

“Each worker will receive Rp 3.314 million per month, which will be paid weekly or monthly,” Public Works and Public Housing Minister Basuki Hadimuljono was quoted by kontan.co.id on Monday.

Meanwhile, Transportation Minister Budi Karya Sumadi said his ministry would allocate 7 percent of its Rp 48 trillion budget for the labor intensification program.

He said most new workers would be employed in the airport construction and expansion projects. "Airport projects create many jobs, because there will be land clearing work and also construction work,” Budi Karya said on Sunday.

Home Minister Tjahjo Kumolo said the government would issue a joint regulation for ministries that will be participating in the labor intensification program. (bbn)

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Nuclear energy most expensive power: Deputy minister
The Jakarta Post, 06 November 2017

Deputy Energy and Mineral Resources Minister Arcandra Tahar has said that nuclear energy is the most expensive of all energy.

“The price range of nuclear energy all over the world is between 7.7 and 13.6 US cents per kilowatts per hour, while the national basic procurement cost of electricity is 7.39 cents,” he said when discussing the results of talks with nuclear energy stakeholders.

“Historically, the price of energy nuclear has always been above the national basic procurement cost,” he said as reported by kompas.com on Monday.

Read also: Expert says public perception foils nuclear plant development
The government has not decided whether to develop nuclear energy, he said, adding that if the government constructed nuclear plants it could sell the energy at higher prices or provide a subsidy.

Arcandra mentioned claims that nuclear energy was cheaper than conventional energy. “I have not received any data proving that commercially nuclear energy is cheaper. It is only discourse. [Nuclear plants] involve a large amount of money. We cannot base anything on discourse,” he added.

He said Indonesia had the technology and human resources to develop nuclear plants.

However, he said public acceptance of nuclear plants was also a consideration the government had to take into account. (bbn).

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