Update News September 13, 2017


In The News

Indonesia to have largest geothermal power capacity by 2021: Ministry
ANTARA News 13 September 2017
Jakarta (ANTARA News) - The Ministry of Energy and Mineral Resources has projected that Indonesia will become the worlds largest geothermal power producer by 2021.
This projection is based on the growth of geothermal power plant installations that continue to increase rapidly from year to year.
"Based on our analysis, the capacity of geothermal power plants in Indonesia will beat the worlds largest producers, such as the US and the Philippines, by 2021," the ministry spokesman, Dadan Kusdiana, noted in a statement received by ANTARA here, Tuesday.
He explained that by 2018, Indonesia will surpass the Philippines to become the worlds second-largest geothermal energy user in the world, with consumption of 2,023.5 megawatts (MW) of electricity.
The increase in capacity will come from the Sarulla power plant, 2 x 110 MW; Karaha power plant, 30 MW; Sorik Marapi power plant, 2 x 20 MW; and Lumut Balai power plant, 55 MW.
Furthermore, based on the roadmap, Indonesia will become the worlds largest geothermal energy producing country, defeating the US by 2021, with a geothermal electricity capacity reaching 3,559.5 MW.
The projection takes into account the geothermal development in the Philippines that has reached its existing reserves, while geothermal development in the US will not increase significantly due to the absence of incentives.
Kusdiana said the current geothermal utilization in Indonesia is only 1,698.5 MW, or some 10 percent of the reserves. In fact, there are 331 potential geothermal locations across the country and are strategic for investment.
"We have 17,506 MW of geothermal reserves and 11,073 MW of resources. These figures have not been optimized. Hence, it is an opportunity for investors to develop geothermal power plants," Kusdiana noted.
Kusdiana further explained that the government continues to facilitate geothermal investors through fiscal and non-fiscal incentives. In addition, the government has issued special regulations on geothermal in the form of Law No. 21 of 2014 on Geothermal and Government Regulation No. 7 of 2017 on Geothermal for Indirect Use, as well as other technical regulations.(*)
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ASEAN to promote trade with Russia and EAEU
ANTARA News 13 September 2017
Jakarta (ANTARA News) - ASEAN Economic Ministers agreed to expand trade with Russia and those grouped in the Eurasian Economic Union (EAEU).
The cooperation would be cemented with a memorandum of understanding on trade expansion between the two sides, Director of International Trade Negotiations Iman Pambagyo said.
Imam said currently ASEAN and Eurasian Economic Union (EEC) are seeking to finalize the MoU expected to be wrapped up in November, 2017.
"ASEAN and EEC are finalizing the MoU to promote economic cooperation between the two sides and it is expected to be signed during the ASEAN Summit in November 2017," Iman said in a written statement received here on Tuesday.
Senior officials of the two economic groupings will soon wrap up the MoU that it could be signed together with Eurasian Economic Commission (EEC) - supranational body - of EAEU and secretary general of ASEAN, representing ASEAN member countries.
EAEU groups Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan.
The 49th Asean Economic Minister meeting was closed with the 6th AEM-Russia Consultations and the 14th AEM-India Consultations in Pasay, the Philippines. The Russian delegation was headed by Deputy Economic Development Minister Maxim Oreshkin and the Indian delegation by Minister for Commerce and Industry Suresh Prabhakar Prabhu.
The ministers also ratified revision of the ASEAN-Russia Trade and Investment Cooperation Road Map together with Post 2017 ASEAN-Russia Trade and Investment Cooperation Work Program developed from the ASEAN-Russian Trade and Investment Cooperation Road Map.
The Ministers discussed development of Russian recommendation about feasibility study on ASEAN-EAEU free trade area.
"AEM Ministers are of the opinion ASEAN needs to study and know first the trade system in EAEU before deciding on more intensive cooperation with EAEU. The methods could be in the form of workshop and dialog about trade policy," Iman said.
Based on ASEAN statistic data, the ASEAN-Russian trade was valued at US$12 billion in 2016 or 5 percent of ASEAN total trade. Russian direct investment in ASEAN was valued at US$60 million in 2016.(*)
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"Wonderful Indonesia" promoted in different countries 

ANTARA News 12 September 2017

Jakarta (ANTARA News) - When it comes to attracting as many foreign tourists as possible, Indonesia certainly does not stay relaxed while waiting for it to happen out of the blue.
Instead, the country has been aggressively promoting its tourism brand of "Wonderful Indonesia" in different parts of the world, such as in Asia, Australia, and Europe.
In Asia, Wonderful Indonesia was promoted in Chinas three main cities of Hefei, Wuxi, and Hangzhou from Aug 29 to Sept 1, 2017, in an effort to boost the visit by foreign tourists from the "Country of Bamboo Curtain" to Indonesia.
Vinsensius Jemadu, the Ministry of Tourism Deputy Assistant for Tourism Market Development in Asia Pacific, remarked in a written statement recently that he had also extended the reach of tourism promotion and marketing to other cities in mainland China such as Shanghai, Guangzhou, Beijing, and Shenzhen.
According to him, China is a major tourist market because of the country's significance among other markets in terms of quantity and growth.
"The number of Chinese tourist visiting Indonesia until June was almost 1 million people, or the largest among any market, and its year-on-year growth rate in the Jan-June 2017 period was almost 50 percent," Jemadu explained.
Moreover, a number of Indonesian airlines have also opened flights to major cities in China, making the promotion of Indonesian tourism in the country a necessity.
In the meantime, Wonderful Indonesia will also be promoted during the Pacific Asia Travel Association (PATA) Travel Mart, which will be held from Sept 13 to 15, 2017.
Hosted by Macao Government Tourism Office, PATA Travel Mart is Asia Pacifics premier travel trade show, attracting tourism officials and professionals from tourist destinations in the Asia Pacific region and beyond to Macao.
Jemadu noted that Indonesias participation in the PATA Travel Mart in Macau aims to promote its attractive tourists destinations among Chinese tourists.
"PATA Travel Mart 2017 in Macau is the right event to promote Wonderful Indonesia to tourism businesses in the Asia Pacific region as one of the focus areas of our tourism market," he noted.
Jemadu added that Indonesia has rented a land area of 108 square meters that will be designed with the nuance of Wonderful Indonesia and the Indonesian pavilion that characterizes the diversity of Indonesian culture with a modern touch.
He invited 12 domestic industry players, including Garuda Indonesia, to participate in the PATA Travel Mart to market the tour packages to Indonesia.
PATA Travel Mart is one event that has a strong credibility and is recognized by the worlds tourism industry, Jemadu explained.
Besides Asia, tourist attractions in Indonesia will also be promoted by numerous tourist buses in Paris, France, for a month, starting from Sept 12 to Oct 9, 2017.
Chief of Visit Indonesia Tourism Office (VITO) in France, Eka Moncarre, remarked on Tuesday that September will be full of Visit Indonesia activities.
Hence, he remarked that September would be the right month for tourist buses in Paris to promote Wonderful Indonesia to local communities and tourists visiting the city.
In addition, he noted that Wonderful Indonesia will also adorn every street in Paris and every corner of the city during the Visit Indonesia activities.
Moncarre added that the promotion of Wonderful Indonesia in Paris aims to attract as many European tourists as possible to visit Indonesia.
Two years after the opening of VITO Frances office to the public, the marketing of Wonderful Indonesia in the country has been more and more intense in order to capture French tourists to Indonesia.
Some 16 Open Tours Buses in Paris are being decorated with beautiful scenery in Indonesia such as Borobudur Temple, beautiful Balinese dancers, Komodo dragon, Lake Toba, and beautiful Raja Ampat.
Promotion of Wonderful Indonesia in Paris aims to be an invitation to explore Indonesia, in addition to explaining about the natural beauty of Indonesia and its culturally friendly people.
In the meantime, Indonesian-Australian Students Association in Western Australia (PPIA-WA) has promoted Wonderful Indonesia in Perth.
Tourism Ministrys Deputy for Tourism Development and Marketing Abroad I Gde Pitana remarked in a written statement to Antara on Sunday that the promotion of Wonderful Indonesia on Sept 9, 2017, was supported enthusiastically by both Indonesian and Australian communities in Western Australia.
Pitana revealed that he also supported the promotion of Wonderful Indonesia in Western Australia, as one of the focus of Indonesian tourism market.
"The event is a golden opportunity for the Indonesian students in Western Australia to showcase the beauty of their countrys tourism, culture, arts, music, and culinary delicacy," Pitana explained.
According to him, the event that took place at the Rocks 26 Cecil Avenue Cannington 6107 in Perth was attended by more than 1 thousand people from Western Australian students and communities.
Themed "Modern Retro," Wonderful Indonesia was enlivened by the performance of Malang Carnival, the performance of vocalist Kunto Aji from Yogyakarta, comic Fikri from Bogor, and Ran Band.
Even in Jakarta, My Trip My Adventure (MTMA) Community has also participated in promoting Wonderful Indonesia by involving young children interested in adventure tourism.
Tourism Ministrys Deputy for Tourism Marketing Development Esthy Reko Astuti remarked recently in a written statement that she positively welcomed the MTMA Community that took part in promoting Wonderful Indonesia.
"This community-based generation holds regular activities for promoting Indonesias charm. They use blogs and other social media (platforms) to promote Indonesian tourism to a wider community," Astuti noted.
According to Astuti, most members of the MTMA Community belong to the millennial generation that is familiar with gadgets and is in tune with the digital world to promote Indonesias tourism.
"Every episode has always been explored with new tourist sites that are rarely visited and showcased. With around 2 thousand members in 80 regions all over Indonesia, the MTMA Community is part of the Tourism Ministry to promote tourist destinations in the country," she concluded.(*)
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ASEAN, Hong Kong conclude negotiations on free trade agreement
ANTARA News 12 September 2017
Jakarta (ANTARA News) - ASEAN and Hong Kong have concluded negotiations on a free trade agreement and a related investment agreement at the second ASEAN Economic Ministers-Hong Kong, China Consultations (AEM-HKC Consultations) held in Pasay, the Philippines, on Sept 9.
The two agreements will be signed during the 13th ASEAN Summit to be held in the Philippines in Nov this year, Indonesian Trade Minister Enggartiasto Lukita stated recently.
Besides discussing preparations for the signing of the agreements, the ASEAN and Hong Kong economic ministers at the meeting also agreed to endorse Economic and Technical Cooperation (ECOTECH) Work Program, which will serve as a guide to implement cooperation in capacity building, particularly for ASEAN member states.
One of Hong Kongs commitments to enhance economic cooperation with ASEAN is realized through a financing scheme to implement ECOTECH work program worth HK$25 million or US$3.2 million for five years.
"Indonesia will benefit from the scheme to increase its capacity in several areas of cooperation, including professional services; micro, small, and medium business; customs; trade or logistic facilitation; and e-commerce," he noted.
He expressed hope that Indonesia will be able to take maximum advantage of Hong Kongs potentials as a hub to increase its trade.
Data from the ASEAN Secretariat reveal Hong Kong to be ASEANs sixth largest trade partner last year. Trade between ASEAN and Hong Kong reached $93.3 trillion, accounting for 4.2 percent of the regional groupings trade with the rest of the world.
Hong Kongs foreign direct investment (FDI) in ASEAN was recorded at $9.6 billion last year, accounting for 9.9 percent of the total FDI in the region in the same year.
ASEAN also has a chance to enhance cooperation with Japan, as shown at the 23nd AEM-Minister of Economy, Trade and Industry (METI) of Japan Consultations.
At the meeting, the ministers also warmly welcomed the progress achieved in the implementation of ASEAN-Japan 10-year Strategic Economic Cooperation Roadmap in various sectors, including, human resources development, infrastructure development, innovation, and transfer of technology.(*)
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Coachbuilder Laksana Eyeing Bus Exports to South Africa
TEMPO.CO 13 September 2017
TEMPO.CO, Jakarta - Coachbuilder Laksana is eyeing bus exports to South Africa. Laksana Bus finance director Alvian Arman said the opportunities to export buses to the country are wide open.
“We expect to realize it in the near future,” Alvin said yesterday at coachbuilder Laksana plant in Semarang.
The company plans to export medium and large regular public transport buses, according to Alvin. “They are similar to buses in Indonesia, but will certainly be adjusted to the regulations and requirements of the said country,” he said.
Coachbuilder Laksana has been exporting various types of buses to Fiji since 2009, Alvin said. In Indonesia, consumers usually purchase the chassis themselves while Laksana builds the bodies, he added. “As for exports, we supply the chassis and bodies. But it depends on consumers’ request,” he said.
The company turns 40 this year, celebrating it by launching All New Tourista bus. Together with Legacy type, Tourista is one of the company’s leading products. The company has produced 4,200 units of Tourista bus since being introduced in 2012. Laksana plans to offer All New Tourista in various passenger capacities.

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State railway operator's tourism train offers different experience for tourists
The Jakarta Post 13 September 2017
PT Kereta Api (KA) Wisata, a subsidiary of state railway operator PT Kereta Api Indonesia (KAI), offers seven different types of train that target tourists. One of them, named Kereta Wisata Nusantara, features 19-seat train adorned in Indonesian-style interior and is equipped with beds, karaoke, mini bar and toilet.
The company also offers Kereta Wisata Bali, Toraja and Sumatra.
Those who seek to travel on these trains would need to book for the entire car. However, solo travelers can opt for other types of train service, namely Priority and Imperial.
Additionally, each seat on the trains is equipped with a touchscreen monitor and audio and video entertainment.
The Kereta Wisata is scheduled to depart from Jakarta every Friday night and travel to Solo and Yogyakarta. The return trip is every Sunday evening.
“In the future we will open a new route to Surabaya,” said PT KAI president director Totok Suryono.
Tourism Ministry's archipelago tourism marketing development deputy Esthy Reko Astuti said such service offers more option for tourists who are fond of train travel.
“I hope [this service] can encourage tourists to travel not only across the provinces but also between them,” said Esthy, adding that the company should also provide tour packages to boost leisure as well as MICE tourism. (kes)
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Reclamation islets’ property tax set at low value
The Jakarta Post 13 September 2017
The Jakarta administration has set the taxable value of property (NJOP) of Jakarta Bay’s reclamation islets C and D at Rp 3.1 million [US$234.8] per square meter.
The Jakarta Financial Management Body (BPAD) has called on the city’s Tax and Levy Board (BPRD) to appraise the property tax value of islets C and D.
However, BPRD could not appraise a special object which was still under construction and, hence, had asked an independent appraiser to do so, said BPRD head Edi Sumantri.
Such appraising authority is stipulated in Law No. 28/2009 on regional taxation and levies, in addition to Jakarta Bylaw No. 16/ 2011 on land and building tax in rural and urban areas.
"After the first NJOP appraisal, we will determine the islets’ further NJOP in the coming years [after those are used],” said Edi as quoted by kompas.com on Tuesday.
Separately, Jakarta Governor Djarot Saiful Hidayat said the low NJOP values were because the islets had yet to be constructed.
"When they are built with buildings, the values will be different. The current values are too cheap,” he said.
Based on the observations of The Jakarta Post, some buildings, which appear to be shop houses have already been built on islet D.
Djarot further said that the values were based on the independent measure of the appraiser and not because of a request from the developer of islet C and D, PT Kapuk Naga Indah.
"We cannot be dictated to by developers," he added. (agn)

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Motorcycle Sales Up 5 Percent in August
TEMPO.CO 13 September 2017
TEMPO.CO, Jakarta - Motorcycle sales went up by 5.19 percent to 554,923 units in August, the Indonesian Motorcycle Industry Association (AISI) reported on September 12.
All in all, the total motorcycle sales from January to August reached 3.79 million units, representing a slight decline of 0.05 percent compared to the same period last year.
Increased sales figure in August was not experienced by all brand holder agents (APM). PT Astra Honda Motor was the only agent that posted a significant growth at 7.73 percent.
Last month, Honda sold 418,931 motorcycles, representing an increase compared to August last year of 388,847 units.
Meanwhile, the sales figures of PT Yamaha Indonesia Motor Manufacturing and PT Suzuki Indomobil Sales are relatively stagnant. Yamaha’s sales dropped slightly by 0.28 percent to 123,620 units in August, whereas Suzuki’s slipped by 2.57 percent to 6,279 units.
Two other motorcycle brand holders, PT Kawasaki Motor Indonesia and PT TVS Motor Company Indonesia were not as lucky. Kawasaki’s sales declined by 25.5 percent to 6,009 units and TVS’ sales plunged by 55,08 percent to 84 units.
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Rajawali Sold Nusantara Infrastructure Stake for $65.5m
Jakarta Globe 12 September 2017
Jakarta. Indonesian conglomerate Rajawali Group said on Tuesday it had sold a 21 percent stake in infrastructure developer Nusantara Infrastructure to Matahari Kapital Indonesia for Rp 864 billion ($65.5 million).
Rajawali, through Hijau Makmur Sejahtera, sold 3.2 billion Nusantara shares at 270 rupiah each , the conglomerate said in a statement. Nusantara shares last traded at Rp 177.
"The release of the stake owned by Rajawali Group was done ... when the government is accelerating the development of the infrastructure sector to support economic growth," it said.
Rajawali, controlled by Indonesian tycoon Peter Sondakh, also has businesses in property, taxi and mining.
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Divers to Join Takabonerate Festival in Selayar Islands
TEMPO.CO 13 September 2017
TEMPO.CO, Jakarta - Dozens of foreign divers will join the Takabonerate Festival in the Selayar Islands, South Sulawesi, on October 23-27.
Selayar Islands Tourism Office head Ince Rahim said that the Takabonerate Festival 2017 will feature two categories, namely under water beauty and cultural-culinary events. “The events will mainly be held in the Fortress City of Selayar Islands,” he said in Makassar on Monday.
“Particularly in under water [events], we have admitted 90 participants. They consist of not only Indonesians divers but also foreign ones, such as Australia, Malaysia and Singapore,” he said.
He explained that the organizer will only admit a limited number of divers in Takabonerate due to the lack of diving equipment and as a precautionary action to protect marine biota.
Only those who have a diving certificate are allowed to become participants. “We only expect [a total] of 150 divers.”
Selayar Islands Regent Muh Basli Ali said that under water beauty of the area needs to be preserved and expected that Takabonerate Festival would not destroy it.

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