Update News October 13, 2017

In The News

Jokowi to Inaugurate Binjai - Medan - Tebing Tinggi Toll Road
TEMPO.CO 13 October 2017

TEMPO.CO, Medan - President Joko Widodo (Jokowi) today, Oct. 13, will inaugurate Binjai - Medan - Tebing Tinggi toll road.

Public Works and Public Housing (PUPR) Ministry staffer Hadi Purnama said that Jokowi and PUPR Minister Basuki Hadimuljono will unveil Binjai-Medan-Tebing Tinggi toll road from Kualanamu Airport toll road at around 4 pm.

Jokowi is also slated to distribute 6,000 free land titles to the people of North Sumatra in various cities.

Deli Serdang Land Agency director Hiskia Simarmata said that a symbolic handover of land titles by President Jokowi will be held at Deli Serdang Regent’s office.

Back to top

Minister: There is No SOEs Domination in Infrastructure Project
TEMPO.CO 13 October 2017

TEMPO.CO, Jakarta - Public Works and Public Affairs Ministry has reacted to criticism from the Indonesia Chambers of Commerce and Industry (Kadin) that State-Owned Enterprises (SOE) are playing a dominant role in infrastructure projects.

Basuki said that there are 11,910 packages of infrastructure projects this year worth Rp81.7 trillion. SOEs are only given 109 packages worth Rp19.95 trillion. “The portion for SOEs is only 24.41 percent,” he said at the House of Representatives building on October 12.

Moreover, Basuki said that SOEs can only work on projects worth over Rp100 billion, whereas private firms are fully entitled to those worth fewer than Rp100 billion.

He said that there are 9,124 packages of projects worth Rp11.2 trillion in the category of projects worth fewer than Rp5 billion, some 2,471 packages worth around Rp5 to Rp50 billion and 206 packages worth Rp50 to Rp100 billion.

Meanwhile, there are only 109 projects worth over Rp100 billion. Basuki said that SOEs do not enjoy all projects in the category by themselves.

The government has called on SOEs working on projects worth above Rp100 billion to join hands with private firms, including road and apartment development.

Kadin deputy chairman Boy Thohir earlier urged the government to allow private firms to handle infrastructure projects. “I believe that to build a great nation, we need private firms, not only SOEs,” he said on October 3.

Back to top

Jokowi Inaugurates South Sumatra`s First Toll Road
TEMPO.CO 12 October 2017

TEMPO.CO, Jakarta - President Joko Widodo (Jokowi) inaugurated the first section of the Palembang - Indralaya toll road. The section, which runs 7.5 kilometers from Palembang to Pemulutan, is the first toll road in South Sumatra.

 "I am very happy, this is the first toll road in South Sumatra," Jokowi said in Palembang, Thursday, October 12.

The Pelembang-Pemulutan Toll Road is made of three sections with a total length of more than 21 kilometers. The president said that he has visited the toll road four times, including to motivate the construction workers.

President Jokowi came accompanied by Cabinet Secretary Pramono Anung, Public Works and Public Housing Minister Basuki Hadimuljono, and the project's constructor Hutama Karya President Director I Gusti Ngurah Putra.

Back to top

Bandung Mayor: Online Taxi App Impossible to Stop  
TEMPO.CO 13 October 2017

TEMPO.CO, Jakarta - Bandung Mayor Ridwan Kamil released a statement in relation to the temporary bans on online transportation services in West Java until the revision to Transportation Minister’s Regulation No. 26/2017 is finalized in November.

“While waiting for the central government’s decision related to the online transportation regulation, which was revoked by the Supreme Court, let us maintain the order in the city,” Ridwan Kamil said via his Facebook page today, Oct. 12.

The statement was his response to a strike plan initiated by public transportation drivers in Bandung. However, the strike was canceled after the West Java Transportation Agency reached an agreement with the Transportation Aspiration Alliance Forum (WAAT) on Monday.

Ridwan Kamil explained that the decision whether to ban or allow online transportation services is in the central government’s hands. Ridwan Kamil added that it would be impossible to stop the development of online taxi-hailing apps.

Therefore, the Bandung Mayor suggested that stakeholders need to respond the online taxi development wisely to allow a win-win solution.

Back to top

Councillors to continue deliberating Jakarta reclamation bylaws
The Jakarta Post 13 October 2017

The Jakarta City Council has decided to continue deliberating two bylaws following the lifting of a moratorium on reclamation in the Jakarta Bay.

The two bylaws are on the North Jakarta coastal spatial plan and the zoning plan on coastal areas and small islands.

"Generally, all factions agree to continue the deliberation not on reclamation but instead on the spatial plan. We have no business deliberating reclamation but do on spatial planning and coastal areas," said council speaker Prasetio Edi Marsudi as quoted by kompas.com on Thursday.

Prasetio further explained that as some reclaimed islets had been built, the councillors were obligated to deliberate the spatial planning.

He said it was necessary so that the islets would not be fully controlled by developers.

The bylaws, he added, would rule which areas could be fully controlled by developers and which areas were for the public.

Nonetheless, he explained, the bylaws would not be discussed during the administration of incumbent Governor Djarot Saiful Hidayat, who ends his term on Monday. (agn)

Back to top

Exports to Be Dominated by Innovative Products
TEMPO.CO 13 October 2017

TEMPO.CO, Jakarta - Handito Joewono, head of the permanent committee for export development at the Indonesian Chamber of Commerce and Industry (Kadin), said the most prospective non-oil and gas products would be those with added value.

According to Handito, exports of commodities, such as palm oil and paper, will remain lucrative. “However, we want to promote innovative products,” Handito said at ICE BSD in Tangerang today, Oct. 12.

Handito explained innovative products that can be developed include food, footwear, and fashion. He added that one way to boost exports of such products is to train new exporters.

“We’re promoting exports for products manufactured by start-up companies. Therefore, young generations are called on to be export-oriented,” he said.

Handito pointed out that existing exporters would be encouraged to continue to expand their businesses. However, he said that they are not the only ones expected to manufacture innovative products.

“We need to encourage young people, including university graduates who have not had big companies yet,” he explained.

Back to top

Italy expresses admiration for values of Pancasila
ANTARA News  13 October 2017

Jakarta (ANTARA News) - The Italian government has expressed admiration for the values of five principles, Pancasila, as an ideal example of unifying the nation, as stated in a press statement from the Ministry of Foreign Affairs of Indonesia received here on Thursday.

The values of Pancasila, which is the foundation of the life of the nation and state, can be an example of the process of integration in Italy.

Therefore, the Italian Government invited Indonesia to share the best practices through interfaith dialogue, titled "Pluralism and Integration in Indonesian and Italian Societies: Perspective, Opportunities, Challenges" at the Italian Ministry of Foreign Affairs, Rome, on Wednesday (Oct 11).

"Indonesia and Italy share a common understanding on the importance of promoting interfaith dialogue in the midst of intensified terrorism, extremism, and radicalism issues," Director General of Information and Public Diplomacy of the Ministry of Foreign Affairs, Cecep Herawan, noted.

Herawan stated that the government of Indonesia was committed to promote interfaith dialogue by prioritizing socio-cultural approaches through empowering stakeholders, particularly religious leaders, national figures, academics, and youth.

Meanwhile, Professor Azyumardi Azra from State Islamic University Syarif Hidayatullah Jakarta, who became one of the speakers from Indonesia, explained that Pancasila emphasized the principle of acceptance of whoever becomes a part of the nation.

President of the Islamic Religious Community (COREIS) in Italy, Imam Yahya Pallavicini, remarked that the motto "Unity in Diversity" was very relevant for the process of integration of Italian society.

In addition, the Indonesian policies that promote youth involvement can make the process more effective for the long term.

The issue of integration is currently emerging in Italy.

With the highest number of refugees and asylum seekers in the EU, the Italian Government sees an important process of sociocultural assimilation between migrants and local people.

President Joko Widodo earlier called on all components of the nation to maintain Pancasila and unity through education and improvement of ideological values.

"Therefore, I call on clerics, priests, monks, teachers, educators, artists, media agency players, governments, military, and police to jointly maintain Pancasila," Widodo urged.

The understanding of Pancasila should be improved. In addition, the values contained in the five principles should also be implemented by the community.

Back to top

Bali ready to host 2018 IMF-WB Annual Meeting
ANTARA News  12 October 2017

Washington (ANTARA News) - The Indonesian government has affirmed Balis readiness to host the IMF-WB Annual Meeting to be held in October 2018.

"Our preparations have run smoothly, and we are working together to solve the problem," Chairman of the National Committee for the Implementation of the IMF-WB 2018 Annual Meeting Luhut Pandjaitan stated in Washington DC, the US, on Wednesday evening.

The statement was delivered by Coordinating Minister for Maritime Affairs Pandjaitan during the Gala Dinner titled "The Voyage to Indonesia 2018." 

The Gala Dinner was also attended by corporate leaders from the US and Indonesia, US high-ranking officials, members of the US Congress, Finance Minister Sri Mulyani Indrawati, and Governor of Bank Indonesia Agus Martowardojo.

"We are still on track while monitoring Mount Agungs volcanic activity, as we cannot make predictions," the minister remarked.

The minister is optimistic that the IMF-WB Annual Meeting in Bali would run smoothly and have a positive impact on the economic activities in Indonesia.

The IMF-WB Annual Meeting is one of the largest and influential events in the areas of finance and economy and brings together Central Bank governors and finance ministers from 189 countries along with prominent players from the private sector, academics, non-governmental organizations, and media.

In total, there will be some 15 thousand participants. Events to be held on the sidelines include seminars, an investment forum, FGD, workshop, and cultural events. 

Bali will take all necessary steps to ensure that the IMF-WB Annual Meeting will be a memorable experience. The IMF-WB Annual Meeting will benefit Indonesia, both in the short- and long-term, particularly in boosting foreign exchange reserves, trade and investment, tourism, and Indonesian leadership in the region. 

The main objective of hosting the IMF-WB Annual Meeting is to showcase Indonesia and Asia as reformed, resilient, and progressive economies.

On the same occasion, Finance Minister Indrawati emphasized that Indonesias economy is stable and growing well.

Indonesia is working to encourage infrastructure development and improve the peoples welfare to ensure sustainable growth, Indrawati pointed out.

"The current macro and monetary policies are also favorable. The condition was monitored by the Ministry of Finance, Bank Indonesia, and the Financial Service Authority (OJK)," she stated. 

The Gala Dinner is a series of preparatory events by Indonesia to host the IMF-WB Annual Meeting in Bali in October 2018.

The event provides an opportunity for the government to introduce Indonesias culture and tourism destinations as well as provide information related to the current economic and social conditions.

The event was also attended by Freeport McMoran President and CEO Richard Adkerson, US Congressman and Co-Chair of the US Congressional Caucus on Indonesia Vern Buchanan, and US Co-Chair of USINDO Ambassador Robert O. Blake.(*)

Back to top

Japanese investments create 4.7m jobs in Indonesia: Ambassador
The Jakarta Post 13 October  2017

The Japanese government is eager to strengthen its presence in the Indonesian economy, after seeing more than 1,500 Japanese business entities settle in Indonesia and create jobs for 4.7 million employees, equaling to 93.3 percent of workers in those entities.

The Japanese entities in Indonesia generated 18.1 percent of the country's total exports, and support 53.4 million of the working population in the informal sector, according to a data from The Jakarta Japan Club.

The Japanese Ambassador to Indonesia Masafumi Ishii said that his government strongly maintained its commitment to building a long term mutual partnership with Indonesia, as one of its "most important strategic partners."

"The economic partnership is based on a long-term perspective and leads to a win-win relationship," he said during a general lecture at Darma Persada University, in Jakarta, on Thursday.

According to a 2016 survey conducted by Bank of Japan for International Cooperation, Indonesia placed third as the most targeted country by Japanese manufacturing companies. India and China led in the first and second positions, respectively.

Ishii further explained that Japanese entities contributed 10 percent of formal sector gross domestic product (GDP) in Indonesia, worth US$52.5 billion last year. In terms of infrastructure, Japanese investors have been participating in power plant projects in Indonesia with a total combined capacity of 8,740 megawatts. (ags)

Back to top

Sinar Mas seals MoU with Canaan to supply palm oil products to Thailand
The Jakarta Post 13 October  2017

PT Sinar Mas Agribusiness and Food has signed a memorandum of understanding (MoU) with Canaan Enterprise Company Ltd to boost shipment of derivative products of crude palm oil (CPO) to Thailand.

The MoU was sealed during the 32nd Trade Expo Indonesia at International Convention Center (ICE) BSD City, Tangerang, Banten, on Thursday, witnessed by Trade Minister Enggartiasto Lukita, Indonesian Ambassador to Thailand Ahmad Rusdi, and Sinar Mas managing director Saleh Husein.

Under the MoU, Canaan is appointed to be Sinar Mas' sole agent with exclusive rights to distribute and resell margarin, shortening and lauric acid manufactured by the Indonesian conglomerate for Thailand market.

"The agreement is founded on a partnership between Sinar Mas Agribusiness and Food and Canaan that has been forged since 2013. We see good potential in the Thailand market," said Sinar Mas Agribusiness and Food director Gianto Widjaja, in a press statement.

In 2017, Sinar Mas Agribusiness and Food set a target to supply 2,000 tons of palm oil-based consumer products to Canaan, with an estimated value of US$1.5 million. 

Canaan director Theeraphat Denprasert said the partnership helped the company to penetrate palm oil business in Thailand.

"Their knowledge and expertise in the market will ensure the sustainability of our success, amid the increasing demand in Thailand,” he said. (ags)

Back to top