Update News October 05, 2017




In The News





Capital Flow to Developed Countries Exceeds One Trillion Dollars
TEMPO.CO 05 Oct 2017

TEMPO.CO, Jakarta - The research conducted by the Institute of International Finance (IIF) shows that developed countries will attract capital investments exceeding US$1 trillion or Rp13,463.6 trillion in 2017. According to IIF Executive Director Hung Tran, the positive atmosphere first started in 2014 during the improved economy of developing countries.

In a report published on Tuesday in Washington, IIF stated that the economic growth of developing countries far exceeds the growth in developed countries. Hung Tran views that the accelerated economic growth of developing nations is becoming the only factor that attracts investors.

Based on IIF records, non-resident capital flows towards developing countries reached US$ 1.1 trillion during this year, which will increase to US$1.2 trillion in 2018. Tran argues that the aspects that can improve investments in 2018 are debt portfolio, equity, and banking conditions that far exceeds expectations.

IIF revised its investment flow forecast analysis to US$ 970 billion in June, which is US$290 billion higher than the previous projection on February when Donald Trump first took office as the President of the United States. At the time, investors were worried that Trump’s protectionist economy would cause the economic weakening of developed countries.

The International Monetary Fund (IMF) predicts that the growth of the global economy will advance from 3.5 percent to 3.6 percent throughout 2017-2018. Although, as the research by the World Economic Outlook suggests, IMF has reduced its forecast for economic growth in developed countries such as the United States and the United Kingdom.

Back to top



Industrial Ministry Pushes for Better Use of Technology
TEMPO.CO 05 Oct 2017

TEMPO.CO, Jakarta - The Ministry of Industry is attempting to further advance the technological applications of the industrial sector, one of it is by making the industry of electronics and telematics as the country’s flagship sector.

The reason behind it is the fact that Indonesia is currently placed in the 31st position based on the level of innovation at the Global Competitiveness Report 2017-2018 that was released by the World Economic Forum (WEF).

The country’s technological preparedness also disappointingly ranks at 80th spot from 137 countries that were scored.

“Throughout 2015 - 2019, the industrial sector will be greatly developed, one of it is related to smart mobile phones and telecommunication transmissions,” said Ngakan Timur Antara, Head of Industrial Research and Development Agency at the Ministry of Industry on Wednesday, October 4.

Ngakan asserted that one of many factors that influence the level of technological preparedness is the availability of the latest technologies, a company’s technological absorption, and transfer of technology directly from foreign direct investments.

Another alternative suggested by Ngakan is to implement the turnkey project in technology procurement. This means that tech providers are required to conduct a transfer of technology with domestic companies in order for Indonesian companies to better adapt and implement the latest technology in the industrial scale as it is regulated by Law No 3/2014 on Industrialization.

Back to top



Sri Mulyani Pushes For Greater Income in the Freeport Negotiation
TEMPO.CO 05 Oct 2017

TEMPO.CO, Jakarta - In regards to the Freeport Indonesia deal, Finance Minister Sri Mulyani Indrawati recently said that Indonesia’s potential income from the coal and minerals (Minerba) sector must be greater than the previous period.

Sri Mulyani said that the Finance Ministry is the leader in this particular problem, which is why the ministry is formulating the regulation based on the Coal and Minerals Law No 4/2009. It involves details such as income tax, Value-added tax, property tax, royalty and regional taxes.

“Nothing is secret and no concession is given to any particular company. This applies to every company in the field of mineral and coal, which is being regulated under many forms of regulations such as contract of work, Working Agreement on Coal Mining Concession (PKPK2B), and there is also a special mining permit (IUPK),” the Minister explained.

The Indonesian government will refer to Article 128 of the Minerba Law for the fiscal treatment in the mining permit and special mining permit. Meanwhile, the government will hold on to Article 169 in formulating matters related to customs, non-tax state income and regional income that are explicitly explained by the Law.

Back to top



Tax office collects 60% of tax revenue target as of September
The Jakarta Post 05 Oct 2017

Finance Minister Sri Mulyani Indrawati met on Tuesday President Joko “Jokowi” Widodo to report that, as of September, 60 percent of the Rp 1.28 quadrillion (US$95.16 trillion) tax revenue target had been met this year.

The minister did not mention the exact value of the collected funds, but based on the this year's target figure, it is about Rp 770 trillion.

She said the positive performance in the tax collection was in line with significant growth in several business sectors, including the manufacturing sector, which grew 13 percent, and the mining sector, which grew more than 30 percent.

“We can see the economic growth momentum from the tax revenue collection. We will continue to create a situation conducive to strengthening the growth momentum up to the end of this year,” Sri Mulyani said in Jakarta on Tuesday as reported by kontan.co.id.

Directorate General of Taxation tax revenue and compliance director Yon Arsal expressed satisfaction over the tax collection performance, saying that last year, the tax office only collected 58.6 percent of the target up to September.

Center for Indonesia Taxation Analysis (CITA) executive director Yustinus Prastowo said, however, that the achievement was slightly below the target of 61.5 percent by September.

Yustinus estimated that the tax office would fail to achieve its target, falling short by about Rp 180 trillion by the end of this year. (bbn)

Back to top



Energy ministry to focus on implementing electrification program in Papua
ANTARA News 05 Oct 2017

Jakarta (ANTARA News) - The Energy and Mineral Resources Ministry is focusing on implementing an electrification program in the easternmost Indonesian province of Papua as part of the efforts to develop its potentials.

Papua has large energy and mineral potentials, the ministry said in a press statement released on Wednesday.

The government will always make every effort to develop the potentials while at the same time developing infrastructure in the energy sector in such a just manner that it will benefit the local people, the statement said.

Under the electrification program, the government will prioritize the development of rural electricity, and new and renewable energy-based power plants and the installation of solar energy efficient lamps (LTSHE).

The other programs that the government will implement in Papua are the construction of urban gas networks and clean water facilities and the implementation of single oil price policy, the statement said.

"To enable the community to enjoy welfare, the government will make every effort to increase the national electrification ratio which currently stands at 92.8 percent, higher than the target of 92.75 percent, curb energy subsidy as much as possible without sacrificing the peoples purchasing power, develop infrastructure such as gas distribution networks to serve households nationwide," Energy and Mineral Resources Minister Ignasius Jonan said.

To supply electrical power to the two eastern Indonesian provinces of Papua and West Papua, the government will build 29 gas-and coal-fired power plants consisting of 20 in Papua and 9 in West Papua until 2019.

Back to top



Indonesia allocates Rp 810b for IMF-World Bank meeting
The Jakarta Post 05 Oct 2017

The government has allocated Rp 810.17 billion (US$60.12 million) to host the International Monetary Fund-World Bank meeting in Bali, next year.

"We allocated Rp 810.17 billion for the meeting. Rp 672.59 billion will be provided by the Finance Ministry and Rp 137.58 billion will be provided by Bank Indonesia," said Finance Minister Sri Mulyani Indrawati in Jakarta on Wednesday.

She said it was the smallest amount compared to the funds allocated for similar events in other countries.

In 2006, Singapore spent Rp 994.4 billion to host the meeting at the Suntec Singapore Convention and Exhibition Centre. Turkey constructed the Rp 1.25 trillion Istanbul Congress Center to host the meeting in 2009.

"Turkey's Rp 1.25 trillion in spending excluded event organizing costs. With both of the costs, it would be more than twice our allocation," she said during a budget meeting with the House of Representatives.

Meanwhile, Japan allocated Rp 1.1 trillion when it hosted the meeting in 2012 while Peru, which hosted it in 2015, allocated Rp 2.29 trillion, including funds for the construction of the Lima Convention Center (LCC).

The IMF-World Bank 2018 annual meeting, scheduled to be held next year from Oct. 8 to 14 in Bali, would use only Indonesian suppliers, she said. (bbn)

Back to top



Operation of Soekarno-Hatta Airport Skytrain to be Increased
TEMPO.CO 04 Oct 2017

TEMPO.CO, Tangerang - State-owned airport operator Angkasa Pura II will gradually add the operation hours of Skytrain at the Soekarno-Hatta Airport. It will operate six times per hour.

“There will be an increased operation hours for the Skytrain. From its original six times to twelve times for every two hours,” said Angasa Pura II Spokesman Yado Yarismano today, October 4.

According to Yado, the current operational hours of the unmanned transport system is conducted three times a day at 07:00 to 09:00, 12:00 to 14:00, and 17:00 to 19:00. “Even though it only operates three times a day, [we were] able to double its operational hours since September 17,” he said.

M. Putra Pariadi, Vice President Electrical and Mechanical engineering of Angkasa Pura II, said that the gradual improvement of Skytrain’s operation hours will be continued until it reaches 24 hours.

The travel speed of the 176-passenger-capacity Skytrain will also gradually increased from 30 km/hour to 60 km/hour. When it is already fully operational, the headway will be set for every five minutes with a total travel duration of seven minutes.

Back to top



Timor Leste to revise air agreement: Indonesian Ambassador
ANTARA News 05 Oct 2017

Kupang, E Nusa Tenggara (ANTARA News) - Indonesian ambassador to Timor Leste, Sahat Sitorus, said here on Wednesday (Oct. 4) that the government of Timor Leste would soon revise its air agreement to support international flights in the country.

"There will be a revision of air agreement to open international flights in the near future," he stated at a meeting with the governor of East Nusa Tenggara province, Frans Lebu Raya.

He admitted that he had a special mission of discussing international flight between Dili (the capital of Timor Leste) and Kupang, the capital of East Nusa Tenggara that borders Timor Leste, in his current visit to the province with the local government officials.

East Nusa Tenggara and Timor Leste have very close ties and share common interests. They are highly dependent on each other, such as in the transportation sector and economy, in general.

In view of that, he noted that the meeting with Raya was very important with regard to building bilateral relations between the two countries and immediate realization of direct flights between the two regions that could support the cooperation.

He noted that besides developing bilateral relations, trilateral cooperation between Indonesia, Timor Leste, and Australia must also be carried out more concretely in all sectors, including licensing.

In the context of the wider cooperation, Sitorus remarked that he hoped for the continuous role of the local government in maintaining smooth cross-border human traffic. 

"People need to be always reminded that under international law, they need passports to cross borders," he added.

He explained that this was important to minimize possible immigration problems that could disrupt the good relations between the two countries.

"We need to safeguard the wider future interest of the two countries of advancing together. We support economic empowerment of people in the border in line with the "Nawacita" program of President Joko Widodo. In essence, we will also support all the programs of Raya," he revealed.

Raya asserted that the trilateral cooperation had so far gone well, although concretely it needed to be further deepened by implementing the cooperation that had been agreed upon in certain sectors.

Regarding licensing, he noted that it was important to encourage businessmen to invest in transportation as well as other sectors.

"East Nusa Tenggara has a lot of potentials that could attract investors. Tourism as well as fisheries and maritime sectors are among those that are promising for investment," he concluded.

Back to top



City, KPK works together to prevent corruption
The Jakarta Post 05 Oct 2017

As an attempt to prevent corrupt practices from taking place at the Jakarta administration, it is cooperating with the Corruption Eradication Commission (KPK) to further implement the electronic system for planning and budgeting.

With the collaboration, the KPK will assist the administration in implementing the electronic system, which has been implemented since 2015. The system is called e-budgeting and e-musrenbang (electronic system for Regional Development Planning Forums), that makes information transparent to the public.

“The public need transparency when it comes to the budget, so the move to implement an electronic system is highly appreciated,” KPK deputy chair Basaria Panjaitan said on the sidelines during the signing of the cooperation agreement between the administration and KPK on the prevention of corruption on Wednesday.

The electronic system of budgeting and planning is claimed to be effective in putting a stop to corruption as only selected officials can access it

Back to top



TNI Showcases Weapons Defense System During Its Anniversary
TEMPO.CO 05 Oct 2017

TEMPO.CO, Jakarta - The celebration the 72nd anniversary of the Indonesian National Armed Forces (HUT TNI) held in Indah Kiat Indah Dock, Banten, today is participated by roughly 5,932 members. They consist of several special celebration brigades from the army, air force, and navy.

The anniversary led by President Joko Widodo or Jokowi as the ceremonial inspector is dubbed as "Bersama Rakyat TNI Kuat" or ‘TNI is strong together with its people’. The theme was chosen based on the awareness that TNI originates from the Indonesian general citizens, and conducting actions together with the people.

TNI Commander General Gatot Nurmantyo said that the celebration is the responsibility of TNI. “It is our responsibility to showcase the improvement and development of our weapons defense system (Alutsista) and our troops so that we would be known and loved by the Indonesian citizens,” said Gatot.

TNI showcased several of its weapons defense system such as three Bush Master from the Kopassus, P6 ATAV, Junkie Kopassus, and nine armored personnel carriers (Anoa), M113 A1 tanks, Marder 2A1 tanks, INF Pandur H 8X8, Arisgator tanks, nine Leopard 2R1, Tarantula tanks, Panzer Pandur 105MM, Kaplan Tank, and Rhino Panser.
.
Back to top