Update News September 26, 2017

In The News

President optimistic toll road target of 1,800 km achieved
ANTARA News 26 September 2017

Salatiga (ANTARA News) - President Joko Widodo (Jokowi) said he was optimistic the target to build 1,800 kilometers of toll road until 2019 would be achieved.

Jokowi said he was convinced by Public Works and Housing Minister Basuki Hadimulyono that the target could be reached.

Three years earlier, Indonesia had only 780 kilometers of toll road, far lagging behind neighboring countries, he said. 

In 2019 we will have an addition of 1,800 kilometers, the president said after commissioning a new 17 kilometer toll road between Bawen and Salatiga on Monday. 

"In more than 10 year we have only 780 kilometers of toll road. China builds up 4,000 to 5,000 kilometers a year," he said .

In 1977 when first the country had its first 77 kilometer Jagorawi toll road, many other countries wanted to study the management and construction of the toll road, he said.

"But soon they already had thousands of kilometers, leaving us lagging behind with only 780 kilometers three year ago," he said. 

Jokowi said the main drag in the development of toll roads in the country is land clearing as the land owners raised the price of their land when they know the government wanted the land.

"Now we see the key . We already found the key. We are not inferior in construction if the land has been cleared," he added. 

The president said the toll roads are expected to significantly cut the logistic cost.

He said the transport cost for goods is more than two times higher in Indonesia than in Singapore and Malaysia.

The president, therefore, hopes that construction of Trans Java toll road could be completed in 2018 after years in the process of construction. (*)

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Transport minister to offer 10 major projects in ASEM
ANTARA News 26 September 2017

Jakarta (ANTARA News) - Transport Minister Budi Karya Sumadi said he will offer ten projects to foreign investors when Asian and European transport ministers meet in the 4th Asia-Europe Meeting (ASEM) in Denpasar, Bali, September, 26-28.

Budi said he would utilize the meeting with theme of "Connectivity and Investment Business Meeting" to attract foreign investors to invest in the 10 transport infrastructure projects. 

"We want investment to grow with low inflation. The investment projects would be discussed in bilateral meetings," he told reporters at a news conference here on Monday. 

Budi said the ten projects include the Makassar New Port, New Priok Development project Terminal 1 and 2, New Deep Port Kijing Fase I, port of Sorong, port of Tanjung Carat, Inland Waterways Cikarang, port of Tanjung Api-api, Kualanamu airport and Lombok airport.

He said foreign investors have attracted a number of the projects such as Japanese investors eyeing the Bandung LRT project and the Surabaya Tram project; Dutch and Chinese investors eyeing the Kuala Tanjung port project , the Philippine investor eyeing vocational school project , European and Chinese investors eyeing the Tanjung Priok port expansion project and South Korean and Indian investors eyeing the Kualanamu airport expansion project . 

He said the projects are estimated to draw up to Rp40 trillion investment, adding the Kuala Tanjung project alone is estimated to cost an investment of Rp5 trillion and the Tanjung Priok project Rp5 trillion. 

Budi said the Capital Investment Coordinating Board (BKPM) was also invited to the forum that it could encourage local investors to take part in the projects. 

There will be Bali Declaration which will attach importance on connectivity for all dimensions. ASEM is a strategic forum to promote cooperation between Asia and Europe. Increase in the role of the private sector or financial agencies in transport infrastructure project would bring to reality through effective and efficient technology.(*)

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Jakarta Admin Grants Ministerial Decree on Islet C, D Reclamation
TEMPO.CO 26 September 2017

TEMPO.CO, Jakarta - Environment and Forestry Ministry has issued a decree that revokes a moratorium on the reclamation of islets C and D in Jakarta Bay. “We have received the letter last week,” Jakarta Development Planning Head Tuty Kusumawati told Tempo yesterday.

Tuti explained that the decree to repeal a moratorium on islets C and D was issued on Friday two weeks ago.

Aside from the decree, Tuty said, Jakarta administration has also received a recommendation letter from the Ministry to supervise the reclamation project. “It’s a follow-up letter on the Environment Ministry’s decree on the repeal of sanctions for islets C and D,” she said.

The letter says that Jakarta administration should review the strategic environmental study (KLHS) within two years and actively opens dialogues with and access to information to the public.

The decree, Tuty said, will serve as a basis for Jakarta administration to file a request to the Regional Legislative Council (DPRD) to resume the deliberations on the bylaws on coastal area and islets zoning plan and North Jakarta coast strategic area spatial planning.

The DPRD earlier refused to deliberate on the bylaws due to the moratorium. Moreover, a DPRD member was nabbed by the Corruption Eradication Commission (KPK) for accepting bribes in from the reclamation developer in April. “The letter will hopefully be received by the House this week,” Tuty said.

DPRD Jakarta Deputy Speaker Muhammad Taufik has earlier said that Jakarta administration is expected to file a request to resume the deliberations on the bylaws. He has also agreed to the resumption.

The Environment and Forestry Ministry could not immediately be reached for comment.

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39 countries confirm attendance at ASEM-TMM
ANTARA News 26 September 2017

Jakarta (ANTARA News) - As many as 39 countries have confirmed their planned participation in the 4th Asia-Europe Meeting - Transport Minister Meeting (ASEM - TMM), which will open in the resort island of Bali on Sept 26, Transportation Minister Budi Karya Sumadi said.

"The 4th Asia-Europe Meeting will take place at the Westin Hotel in Nusa Dua, Bali, from Sept 26 to 28. We have invited 51 ASEM member countries to attend the meeting, and 39 Asian and European countries and two international organizations have confirmed their attendance," he stated in a press conference here on Monday. 

He noted that 18 transportation ministers from six European countries, including Britain, Russia, Latvia, Hungary, Luxembourg, and Poland, and 12 Asian countries, including Malaysia, the Philippines, Singapore, Myanmar, Laos, Mongolia, Cambodia, Japan, China, Korea, India, and Brunei Darussalam, will attend the meeting.

The delegates of the two international organizations, who will attend the meeting, will be the European Commissioner for Mobility and Transport and the ASEAN Deputy Secretary General, he added.

He remarked that President Joko Widodo (Jokowi) has given directives for the international event to be used as a means to introduce and promote the countrys potentials.

"Mr. Jokowi has given directives on the optimum use of the ASEM-TMM to attract investors to invest in Indonesia," he explained.

"ASEM is a strategic forum to intensify Asian-European cooperation. This is Indonesias effort to attract investors so that investment will increase and inflation rate can be kept down. I have the initiative to turn it not only into a mere meeting but also into a business meeting," he asserted.

The ASEM-TMM will also serve as a means to promote the tourism sector in Bali, he stated.

"The other benefit of organizing the ASEM-TMM is that it will contribute to the economy of Balinese community from the tourism sector," he reiterated.

The meeting will discuss a number of issues related to connectivity, investment, and other strategic issues in the two continents. (*)

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Pertamina to Invest USD1.54bn in Jambaran Tiung Biru Project
TEMPO.CO 26 September 2017

TEMPO.CO, Jakarta - State-owned oil and gas company Pertamina, through its subsidiary Pertamina EP CEPU (PEPC), will invest USD1.457 billion in Jambaran Tiung Biru (JTB) gas field unitization project in Bojonegoro Regency, East Java.

Pertamina CEO Elia Massa Manik said that the development of Jambaran Tiung Biru will give a new hope to Indonesia. “Particularly to address gas supply deficit in Central and East Java,” he said in a written statement received by Tempo on September 25.

Pertamina expects that gas reserves totaling 2.5 trillion cubic feet (TCF) in JBT will secure supply to Central and East Java industries and help boost the national economy. Elia is also hopeful that JTB gas field will create new jobs and reduce poverty.

In January, the government instructed Pertamina to fully develop JTB field and conclude the transfer of the gas field with ExxonMobil Cepu Limited.

Elia said that Pertamina is trying to complete negotiation on transfer of participating interest (PI) to develop JTB. The company currently holds 45 percent participating interest. Once the transfer completed, it will hold 91 percent PI and the remaining 9 percent will be owned by a regional-government owned enterprise (BUMD).

As the negotiation continues, the company signed a gas purchase deal with state-owned electricity company PT PLN at USD7.6 per MMBTU on August 8. “The agreement marks the start of the development of JTB gas field since we already have a buyer,” Elia said.
JTB field drilling will start after PEPC appoints PT Rekayasa Industri (Rekind) and PT Japan Gas Corporation as the winning bidders. The gas field has a high complexity with CO2 content of 24 percent, gas processing facility of 330 million metric standard cubic feet per day (MMSCFD) and 172 MMSCFD of gas sales.

Elia said that Pertamina is confident that JTB field will start production by 2021 and help accelerate gas pipeline transmission utilization between Gresik and Semarang.

Pertamina subsidiary PT Pertamina Gas (Pertagas) is aiming to complete 267-kilometer pipeline construction between Gresik and Semarang worth USD515.7 million. “The progress of EPC construction is 85 percent; the project will go onstream in mid-2018,” he said.

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Cikarang Listrindo kicks off 2nd power plant
The Jakarta Post 25 September 2017

Publicly listed independent power plant producer PT Cikarang Listrindo has increased its total installed capacity to 1,144 megawatts (MW), as its second coal-fired power plant begins operations.

Cikarang corporate secretary Christanto Pranata said the commissioning of the second unit was an important step in enabling the company to meet the electricity demand from five industrial estates in Cikarang, Bekasi, West Java.

“This is a significant milestone for the company, with a new type of electricity generation. We are also delighted with both units’ performance,” he said in a press statement on Monday, adding that the first unit of the coal-fired power plant was currently running at its base load.

The company selected steam turbines from the Germany-based Siemens AG, the leading energy provider for reliable high-technology products. It also installed boilers with a circulating fluidized bed (CFB) technology from Finland-based firm Valmet Technologies Oy.

The boilers have been designed for a low combustion emission, better than the standard set by the World Bank and the Environment and Forestry Ministry. The boilers are also equipped with electrostatic precipitators (ESP) to reduce particle emissions into the air. (ags)

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Indonesia`s pepper exports up 16.57 percent
ANTARA News 26 September 2017

Jakarta (ANTARA News) - Indonesias pepper exports in the January-August 2017 period rose 16.57 percent to 24.46 thousand tons from 23.56 thousand tons in the same period last year, according to the Agriculture Ministry. 

Indonesia produced 82.17 thousand tons of pepper in 2016, up 0.82 percent from 81.50 thousand tons a year earlier,Chief of the ministrys data center and information system, Suwandi said here on Monday.

"Pepper production in 2017 is expected to increase 0.97 percent to 82.96 thousand tons from (82.17 thousand tons) in 2016," he said. 

Last year, Indonesia exported 53.10 thousand tons of pepper valued at US$431.14 million.

The increase in pepper production had reduced the countrys pepper imports to 690 tons in the January-August 2017 period from 2,663 tons the year before, he said.

"This means that pepper imports have declined significantly by 74 percent. This proves that Indonesia has the potentials to develop pepper plantations so it will regain glory as it did 500 years ago," he said.

Pepper is mostly grown in the five provinces of Bangka Belitung, Lampung, South Sumatra, East Kalimantan and South Sulawesi.

Bangka Belitung and Lampung provinces are the main pepper producers in Indonesia, contributing 58.32 percent of the national production. Pepper production from South Sumatra, East Kalimantan and South Sulawesi accounted for 41.68 percent of the national production.(*)

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Private lenders partake in Greater Jakarta LRT project
The Jakarta Post 26 September 2017

Coordinating Maritime Minister Luhut Pandjaitan has revealed that several private banks have agreed to disburse loans for the Greater Jakarta light rail transit (LRT) project that will link the capital to its neighboring cities in West Java.

The transportation project will link the cities of Jakarta, Bogor, Depok and Bekasi.

He said that among the private lenders that had agreed to take part in the project were Bank Central Asia (BCA), the biggest private bank in terms of assets, and Malaysian-controlled Bank CIMB Niaga.

Read also: Double track to be built at Dukuh Atas transit hub
“With private banks stepping in, the loan proportion from state-owned banks will decline. The composition is not final yet, but this is an indication of a positive lending structure,” Luhut said.

The project is estimated to cost Rp 27 trillion (US$2 billion) with Rp 9 trillion coming from the government in the form of capital injection (PMN), while the remaining Rp 18 trillion is expected to come from bank loans.

Initially, the public transportation project relied on loans from state-owned banks — Bank Negara Indonesia (BNI), Bank Mandiri and Bank Rakyat Indonesia (BRI) — before the private lenders expressed interest in financing the project.

The Transportation Ministry claimed the infrastructure construction of the project had reached 50 percent completion as of last week.

The government aims to see disbursement of the loans in November.

State-owned railway operator PT Kereta Api Indonesia (PT KAI) is acting as a leading company to coordinate the loans, while state-owned construction firm PT Adhi Karya is the developer of the project. (bbn)

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Ministry to discuss permanent hiring of Jakarta contract employees
The Jakarta Post 26 September 2017

The Administrative and Bureaucratic Reform Ministry assured protesting contract workers from Jakarta city agencies on Monday it would discuss their demand to be appointed as permanent employees. 

“We appreciate their aspirations. As a follow up, we will invite the Jakarta Employment Agency [to discuss this issue], maybe next week,” the ministry’s spokesperson Herman Suriatman said.

“We cannot make any decision without supporting data and comprehensive mapping. We will evaluate [this matter] thoroughly,” Herman said as quoted by kompas.com, arguing that aspects like the city’s fiscal burden and officials’ workload should be taken into account when deciding whether to permanently hire the workers.

Hundreds of contract employees of the Jakarta Transportation Agency and the Public Order Agency (Satpol PP) staged a demonstration near the ministry in South Jakarta on Monday. The coordinator of the protest, Heri, said 1,620 Satpol PP officers and 180 workers of the Transportation Agency had not been appointed as permanent employees.

Jakarta Governor Djarot Saiful Hidayat had previously proposed the appointment of the workers as civil servants through proposal letter No. 595/082.71 to the ministry. However, the ministry rejected the proposal and extended the workers’ contracts instead. (vny)

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Turkish companies sign MoU with Aceh government
ANTARA News 26 September 2017

Banda Aceh, Aceh (ANTARA News) - Two Turkish compsnies - Hitay Holding A.S and Sksa Enerji Uretim A.S operating in energy sector have signed a memorandum of understanding with the government of Indonesian province of Aceh.

The cooperation is in the development of geothermal and gas-powered electricity plants in the region.

"According to information from Aceh delegation in Turkey two companies have signed cooperation agreement with the Aceh government," Aceh provincisl government spokesman Mulyadi Nurdin said here on Monday.

He said according to the head of capital investment service who was in Turkey said the MOU was personally signed by Aceh governor Irwandi Yusuf and chairman of Hitay Holding, Mehmet Emin Hitay, and director of Aksa Enerji Uretim, Nesim Ibrahimhakkioglu and Enersis chairman Sahin Uruc.

He said under the MOU Hitay Holding as investor and developer would develop the portfolio of geothermal project for geothermal power plant in Aceh.

"Hitay will cooperate with the Aceh government to get a license for an initial survey and exploration for the development of the power project and its financing," he said.

Hitay will also develop the site using a reliable contractor to carry out drilling, procurement and construction. Aksa Enerji Uretim in cooperation with Enersis on the other hand will manage the plant.

He said Aksa and Enersis will provide the tevhnology, goods and services needed for the investment project and its operation.

Aksa will cooperate with the Aceh government to get the license needed to develop, build and operate the power plant and arrange the financing.(*)

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