Update News September 27, 2017





In The News





Govt to Pitch Three Airports to Foreign Operators
TEMPO.CO 27 September 2017

TEMPO.CO, Jakarta - Transportation Ministry will pitch three airports to foreign operators at Asia-Europe Transportation Ministry Meeting on September 26-28 in Bali.

Transportation Minister Budi Karya Sumadi said that the three airports are Balikpapan, Lombok and Kualanamu. He said that the policy is aimed at boosting airport performance and passenger traffic. “There are [companies from] Japan, China, South Korea, etc,” Budi said in North Sumatra last week.

Kualanamu Airport in North Sumatra has agreed to cooperate with an Indian airport operator GVK. State-owned airport operator PT Angkasa Pura II has signed an agreement with GVK to turn the international airport into a regional flight hub, particularly for western Indonesia. “We have now opened cooperation opportunities with other companies,” Budi said.

GVK has earlier joined hands with Angkasa Pura I to operate Ngurah Rai International Airport in Denpasar. The conglomerate that operates India’s second largest airport Chhatrapati Shivaji in Mumbai is also working closely with Angkasa Pura I to develop a new airport in Kulon Progo, Yogyakarta.

GVK said in its official website that it is negotiating an agreement with Angkasa Pura II to operate Silangit Airport in North Sumatra that will be turned into an international airport to boost Lake Toba tourism.

Budi earlier instructed Angkasa Pura II to complete the airport’s runway overlay project to accommodate 737 Boeing aircraft. On October 28, the airport is expected to open its first international flight marked by the landing of flag carrier Garuda Indonesia chartered plane of Singapore-Silangit route. “I hope within the following six months there would be regular international flights,” Budi said last week.

Meanwhile, Lombok International Airport in Praya, also pitched to foreign operators, is specifically designated to serve low-cost flights. The concept is similar to that of Malaysia’s Kuala Lumpur International Airport (KLIA) in Sepang. Premium flights will mainly operate in Ngurah Rai, Denpasar, Budi said. “The aim is to reduce Ngurah Rai’s burden.”

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Pertamina Commences Drilling at Mahakam Block
TEMPO.CO 27 September 2017

TEMPO.CO, Jakarta - State-owned oil and gas company PT Pertamina has commenced drilling at Mahakam oil and gas block in East Kalimantan in a bid to maintain the old oil rig’s output.

Pertamina Upstream Director Syamsu Alam said that as of September the company has drilled six oil wells. He did not elaborate on the total oil reserves generated from the activity. He only said that the results have been on target thus far.

He said that the company is preparing to discover the seventh oil well, adding that a total of 15 wells will be needed. Pertamina plans to drill two more wells.

The company will prepare investment of around US$187 million. However, the drilling will be carried out by the operator, Total.

Pertamina will only take over Mahakam block in 2018. The drilling is being carried out during the transition period since Energy and Mineral Resources Minister Ignaisus Jonan expect the company to maintain production in the area.

Meanwhile, Total will invest around US$1 billion this year to drill six wells. The remaining budget will be used to maintain oil fields. The company predicts that next year’s gas output will reach around 1.4-1.5 trillion cubic feet, fewer than this year’s target of 1.7 trillion cubic feet.

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Jokowi Hands Out Rp7.2bn in Aid to Mount Agung Refugee
TEMPO.CO 27 September 2017

TEMPO.CO, Jakarta - President Joko Widodo (Jokowi) hands out Rp7.2 billion in aid to the refugees of Mount Agung, Bali.

“The aid supplies consist of blankets, mattresses, masks, rice, bathing equipment and kidswear,” Presidential Secretariat spokesman Bey Machmudin stated in a press release received by Tempo on September 26.

Jokowi arrived at the refugee shelter at around 3:30 pm Central Indonesia Time. He later received an explanation about the refugee condition from the National Disaster Mitigation Agency (BNPB) chief Willem Rampangieli.

“They also inspected the readiness of refugees to anticipate increased activity of Mount Agung,” he said.

Jokowi also visited other refugee shelters in Karangasem Regency and Klungkung Regency.

The President was accompanied by the First Lady Iriana Widodo, Cabinet Secretary Pramono Anung, Education and Culture Minister Muhadjir Effendy, Social Affairs Minister Khofifah Indar Parawansa, Public Works and Public Housing Minister Basuki Hadimuljono, Health Minister Nila Moeloek and Bali Governor I Made Mangku Pastika.

After inspecting the Mount Agung refugee shelters, Jokowi and his entourage departed for Jakarta by Presidential Plane Indonesia-1.

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Indonesian ambassador appointed chief of IAEA Board of Governors
ANTARA News 27 September 2017

London (ANTARA News) - Indonesian Ambassador to Austria Dr. Darmansjah Djumala, in the capacity as Indonesian permanent representative accredited at the International Atomic Energy Agency (IAEA), was inaugurated as the chief of the IAEA Board of Governors for the 2017-2018 term on Monday. 

Indonesia has again enjoyed the trust to hold the important post of IAEA after it waited for a quite long time since 1985, the ambassador said in a press statement released on Tuesday. 

The IAEA Board of Governors is one of the supreme decision-making body, which is made up of 31 countries representing different regional groupings.

Djumala will be assisted by two deputy chiefs, namely Ambassador Liselotte Kjrsgaard Plesner from Denmark, and Ambassador Andrej Benedej from Slovenia, in performing his duties as the chief of the IAEA Board of Governors.

At the inauguration ceremony, Djumala expressed gratitude to IAEA member countries for their support and trust given to Indonesia to lead the IAEA Board of Governors.

He also praised his predecessor, Ambassador Tebogo Seokolo of South Africa, for his achievement during his term of office as chief of the IAEA Board of Governors.

Djumala expressed the commitment of Indonesia as the chief of the IAEA Board of Governors to strengthen the agencys important role in translating the motto of "Atoms for Peace" in each activity.

IAEA is an independent organization, set up on July 29, 1957, with the aim of promoting the peaceful use of nuclear energy and thwarting its use for military purposes.

IAEA functions as an inter-governmental forum to promote scientific and technical cooperation for the peaceful use of nuclear technology and nuclear energy worldwide.

The IAEA Secretariat is based in Vienna, Austria. The agency now has 168 member countries.(*)

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BI predicts C Kalimantan`s economy to grow 7.4 percent in Q4
ANTARA News 27 September 2017

Palangka Raya, C Kalimantan (ANTARA News) - Bank Indonesia (BI) has predicted the Central Kalimantan economy to grow from 7 to 7.4 percent in the fourth quarter of 2017, fueled by an increase in household consumption, exports, and government spending. 

The expansion of productive oil palm plantations and the development of processing industry and trade will also contribute to the economic growth in Q4, Chief of BI Representative Office in Central Kalimantan, Wuryanto, stated here on Tuesday.

"In the fourth-quarter of 2017, the global economy is also expected to start showing signs of improvement, fueled by the US economy. The US government data showed an improvement in unemployment rate until the second quarter of 2017, and the trend is expected to improve until the end of 2017," he remarked.

Although the Central Kalimantan economic growth will stay above 7 to 7.4 percent, BI has warned the province to stay alert for the prospect of inflation rate. BI has predicted the provinces inflation rate in the fourth quarter of 2017 to increase and stay at a range of between 4.20 and 5.60 percent year-on-year compared to the same quarter last year, he noted.

Wuryanto added that the provinces inflation is based on disaggregation groups in the fourth quarter of 2017, including volatile food, administered prices, and core inflation. The pressure of volatile food is expected to increase in the fourth quarter of 2017.(*)

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Minister admits Indonesia has too many state-owned enterprises
The Jakarta Post 27 September 2017

Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan has said that Indonesia has too many state-owned enterprises that act as competitors to private companies operating in the country.

Luhut said he had advised President Joko “Jokowi” Widodo to either restructure or sell existing state-owned enterprises and their respective subsidiaries.

“I have told the President it is not healthy,” Luhut said in Jakarta on Tuesday as quoted by tribunnews.com.

Previously, the World Bank criticized the Indonesian government over the domination of state-owned enterprises in the country’s economy.

The bank said Indonesia should not have established state-owned enterprises to compete with private companies.

It further advised the Indonesian government to support the role of private companies in developing the country. (bbn)

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Minister discusses transportation cooperation with Britain, Poland
ANTARA News 27 September 2017

Denpasar, Bali (ANTARA News) - Transportation Minister Budi Karya Sumadi held bilateral meetings with British Consultants and Polish Delegates to discuss transportation cooperation at the 4th Asia Europe Meeting - Transport Ministers Meeting (ASEM-TMM) here on Tuesday.

The transportation minister, accompanied by officials of the Indonesian port operator Pelindo I, held the first meeting with the British Consultants to discuss cooperation potential for vessels guide in the Malacca Strait.

The bilateral meetings with the British and Polish sides were held on the occasion of the ASEM-TMM in Denpasar, capital of the Indonesian tourist resort province of Bali, on Tuesday.

The British Consultants welcomed the idea of collaboration in vessel guides with European, Chinese, or Japanese.

"During the first discussion, I proposed to a team from Britain to create a collaboration with guide ships owned by Europe, China, and Japan, and they expressed their ability to do so," he noted.

Indonesia viewed the collaboration with various transportation stakeholders on the ship guide in the Malacca Strait as an initial step to influence and establish good relationships with shipping operators.

The minister also explained the results of his bilateral meetings with the Polish delegation, namely the Minister of Maritime, Economic and Interior Affairs of the Republic of Poland, Marek Grobarcyzk. The meeting produced at least two possible cooperation.

Firstly, cooperation in the maritime sector, which included efforts to modernize the port in Kuala Tanjung. Secondly, the offer of cooperation in the bus building industry, which included production and distribution to nearby countries.

"We are talking about Indonesias possibilities to become a bus-based industry so that it can be distributed to nearby countries. For this, there are special requirements that we give to Poland, in order to make Indonesia the center of its bus industry in Southeast Asia," he remarked.

The other bilateral meeting, which was held by the minister, was the one with the Polish aviation operators, namely LOT Polish Airlines.

Indonesia plans to increase investment in the operation of the Bali - Poland aircraft charter that has been done by the airlines.

In addition, the offer to open direct Bali-Poland or Jakarta-Poland flights is considered very important for an increase in airport connectivity in Indonesia and abroad.

"We can discuss the possibility of "code share" between flag carrier Garuda Indonesia and LOT Polish Airlines for potential steps of cooperation," the minister noted.

The bilateral meetings constituted one of the agenda of the minister of Transportation in the ASEM-TMM, which will continue until Sept 28, 2017, in Bali.

Deputy Transport Minister of Latvia Kaspars Ozolins agreed with Minister of Transportation Budi Karya Sumadi to discuss Asia and Europe connectivity.

"The big number of delegates attending ASEM event reflects the importance of the connectivity issues. Delegates are discussing and looking for ways to connect and work together to benefit each other, as globalization pushes the market to move faster and more effectively," Ozolins said.

He explained that the purpose of this meeting was to collaborate and build closer cooperation not only in business schemes but also in terms of friendship, Ozolin added.

In line with this, Sumadi remarked that the business forum offers an open opportunity of cooperation with various ASEM member countries. 

"In the business forum, there are photos and pictures that can provide information to investors related to infrastructure development in Indonesia. This could create connectivity in Asia and Europe," Sumadi explained.

In a press conference, Latvias Vice Minister of Transportation also gave support to Indonesia in organizing the 4th ASEM-TMM this year.

"Deputy Transport Minister of the Republic of Latvia, Kaspars Ozolin, who at the ASEM meet years ago acted as chairman, conveyed his support to the Indonesian government for the implementation of the 4th ASEM TMM this year," the Minister of Transportation revealed.(*)

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MRT Jakarta sends instructors to Malaysia for training
The Jakarta Post 27 September 2017

PT MRT Jakarta has sent two groups of train driving instructors to Malaysia to join a 30-day training program offered by the Rapid Rail Academy Malaysia.

The president director of PT MRT Jakarta, William P Sabandar, said the company had sent its staff members to Malaysia because the country used similar trains.

"We want to make sure that the trainers are qualified to train our drivers," William said on Tuesday as quoted by kompas.com.

During the training, the employees will learn about rolling stock systems and practice operating the trains and arranging the trains in the depot.

They will take examinations conducted by the Malaysia Human Resources Ministry to get certificates from the academy and the Malaysian government, William said.

Apart from that, MRT Jakarta will offer training and provide orientation programs to other employees, William added. (cal)

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Transportation Minister Pledges Deregulation for Investors
TEMPO.CO 26 September 2017

TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi said his institution would simplify regulations should they hamper investments in transportation infrastructure projects in Indonesia.

“I can say that a Ministerial Regulation is not everything. It means that if it causes difficulties, we can simplify it to gain significant benefits,” Budi said after the opening of the Asia Europe Meeting (ASEM) held in Nusa Dua, Bali, today, Sept. 26.

Budi claimed that deregulation could be conducted intensively to create a supporting investment climate. He also invited state-owned companies and private companies to work on potential programs.

As many as 12 projects will be pitched during ASEM TMM bilateral meetings, including the Makassar New Port, the Kualanamu Airport, the Lombok International Airport, the Bandung Light Rapid Transit (LRT) project, the Surabaya Tram project, and others.

The minister revealed that he would meet representatives from Japan to discuss existing and potential transportation projects. “I will discuss the Patimban Port [project] and the development of Mass Rapid Transit (MRT), Light Rapid Transit (LRT) and Jakarta-Surabaya High-Speed Train projects with Japan,” he said.

With China, Budi will discuss transportation infrastructure projects, resulted in the One Belt One Road (OBOR), in North Sumatra, Kalimantan, and North Sulawesi. He will also discuss the intelligent transport system with South Korea, the non-convention vessel standard (NCVS) topic with Malaysia, and air and sea transportation projects with Singapore.

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INFID Criticizes Govt over Implementation of SDGs
TEMPO.CO 27 September 2017

TEMPO.CO, Jakarta - Two years ago, heads of state and government agreed on the Sustainable Development Goals (SDGs) agenda comprising 17 goals and 169 targets.

The Indonesian government has issued the Presidential Regulation (Perpres) No. 59/2017 on the Implementation of Sustainable Development Goals.

Civil Society Coalition for SDGs sees that Indonesia has achieved very little despite the presidential regulation.

Mickael Bobby Hoelman, Senior Adviser of International NGO Forum for Indonesia Development (Infid) said that the government has been going nowhere with the implementation of SDGs as evidenced by the lack of clarity in the formation of the National Coordination Team for SDGs as mandated by the presidential regulation. The issue has raised questions over the Coordination Team’s success in achieving the President’s priority to reduce poverty and inequality.

“The lack of clarity over the National Coordination Team also left local governments confused whether to use the same approach in implementing SDGs,” he said today.

It is also evident in Indonesia’s position in SDG Index and Dashboards Reports as recently reported by Sustainable Development Solutions Network (SDSN).

The agency led by economist Jeffrey Sachs said that Indonesia dropped from 98th out of 149 countries in 2016 to 100th out of 157 countries in 2017.

Among the G20 countries, Indonesia only ranked better than Saudi Arabia (101), South Africa (108) and India (116). Among ASEAN members, Indonesia performed worse than Malaysia (54), Thailand (55), Singapore (61), Vietnam (68) and the Philippines (93).

Meanwhile, Migrant Care executive director Wahyu Susilo said that other countries see that Indonesia has done more in the implementation of SDGs. Indonesia is often seen as an example to follow due to its presidential regulation.

The fact is Indonesia still has some homework to do to achieve SDGs. For example, the government has yet to make an analysis on the funds needed to achieve SDGs by 2030, Wahyu added.

Misiyah, a female rights activist, executive director of Institute Kapal Perempuan, said that Indonesia should be more ambitious in achieving the SDGs. She said she has not seen the results, including in Indonesia’s target to reduce maternal deaths to 306 per 100,000 deliveries for the term 2014-2019 (based on the National Medium Term Development Plan/RPJMN).

Donny Ardyanto, TIFA Foundation Program Adviser, stressed that the government has never seriously offered new policy or programs to implement SDGs. Of 169 SDGs indicators that the government claimed to have been adopted into the RPJMN, only 13.7% have met global SDGs indicators.

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'Wayang golek’ makes appearance at World Festival of Puppet Theater in France
The Jakarta Post 27 September 2017

Jakarta | Wed, September 27, 2017 | 11:16 am 'Wayang golek’ makes appearance at World Festival of 
An illustration of Sundanese wooden puppets 'wayang golek'. (Shutterstock/File)

Bandung-based Sundanese art foundation Putra Giri Harja 3 ( PGH3 ) reportedly presented wayang golek (wooden puppet theater) at the 19th World Festival of Puppet Theater (FMTM) in Charleville-Mézières, Ardennes, France.

According to Antara news agency, the biennial event was held from Sept. 16 to Sept. 24 and featured 400 performers from 25 countries.

Surya Rosa Putra, education attache at the Indonesian Embassy in Paris, said on Tuesday that FMTM was the biggest puppet festival in Europe.

Founded in 1961, the event was said to attract 170,000 audience members in 2015.

Read also: Recalling the history of the gamelan

As for the wayang golek performance, the show took place at Place Ducale, the festival's main stage.

Helmed by Indonesian puppeteer Dadan Sunandar Sunarya, the group presented scenes from the Mahabharata and Ramayana stories.

Though the audience did not fully understand the conversation, the script, dalang (puppeteer) and music managed to keep them glued to their seats from the beginning until the end. (jes/asw)

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