Updates News January, 25 2018

In The News




Anies-Sandi 100 Days in Office, Expert: Too Many Publicity Stunts
Tempo.co, 24 January 2018

TEMPO.CO, Jakarta - Today marks the first 100-day Anies Baswedan and Sandiaga Uno in office as the Governor and Deputy Governor of Jakarta.During the 100-day of administration, Anies-Sandi has issued several policies which attracted support and rejection from the public.

Head of Trisakti University public policy review center Trubus Rahadiansyah observed the policies they issued since they took office. He views that they still tend to issue the policies just for the sake of public image or pencitraan.

“I have observed the new governor’s policies throughout their 100-days, most of them are for the sake of public imaging, I have yet to see any concrete policies,” said Trubus in an interview on Tuesday, January 23.

One example he gave is the zero-down-payment (0 Percent DP) housing program. “It was originally meant for residents with low-income. They initially promised it to take the form of independent houses, but it turned out to be vertical apartment housings. 

After having difficulties building arusunami (apartments sold for personal ownership) now they are changing it to arusunawa (leased apartments). It’s simply being indecisive. Their policies keep on changing,” said Trubus.

Trubus went on to break down the reason why he considers the 0 Percent DP program as a publicity move. He compared the Jakarta regional minimum wage of Rp3.6 million with the houses that were offered.

“A type 21 house is valued at Rp185 million, laborers can lease it for 15-20 years with a monthly flat installment of Rp2.1 million. The question is, could they afford it with their regional minimum wage? No. It’s still burdensome, that’s actually a public deception, a publicity move,” Trubus explained.

Furthermore, Trubus suggested Anies-Sandi better off continuing the leased apartment housing program introduced by the former Jakarta Governor Basuki Tjahaja Purnama or Ahok.“No need to innovate if it’s not backed by a fixed plan,” said Trubus.

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Indonesia studying Bitcoin’s use in investment: Official
The Jakarta post, 24 January 2018

Earlier on the same day, Bank Indonesia Governor Agus Wartowardojo said that using Bitcoin as a payment and transaction instrument violated Law No. 7/2011 on currency, which designated the rupiah as the only official transaction and payment instrument in the country.

Agus also threatened to revoke the permits of financial services providers that used the cryptocurrency as a payment and transaction instrument.
Bachrul said Bappebti was studying the possible use of Bitcoin as an investment instrument. He did not, however, mention when the study would be completed.

He added that Bappebti considered Bitcoin as a commodity. “Through the study, we want to see if Bitcoin can be treated as a digital asset,” he said.
Market supervision and development bureau head Dharmayugo Hermansyah at Bappebti said the organization saw great potential in Bitcoin product trading.

Separately, Finance Minister Sri Mulyani Indrawati said that no regulation in the country prohibited its citizens from investing in the cryptocurrency. “It is up to the people to use Bitcoin as an investment instrument,” she stressed. 

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PGN to enter Pertamina on Jan 25, step toward oil and gas holding
The Jakarta post, 24 January 2018

State-owned gas distributor PT Perusahaan Gas Negara (PGN) will hold an extraordinary shareholders meeting on Thursday as an initial step toward the establishment of an oil and gas holding firm, together with state-owned energy firm Pertamina.

One issue that will be discussed during the shareholder meeting is a handover of 57 percent of PGN shares to Pertamina, said Pertamina human resources development director Nike Widyawati in Jakarta on Tuesday, as reported by kompas.com.“So, on Jan. 25, there is a formal step for PGN to enter to Pertamina,” said Nike at the State-Owned Enterprises (SOEs) Ministry.

Meanwhile, SOEs Ministry deputy for mining business, strategic industry and media affairs Fajar Harry Sampurno added that during the shareholders meeting, PGN would only seek approval from the shareholders for asset handover to Pertamina, known as the inbreng mechanism.

Therefore, Fajar added, such a process did not need to wait for the issue of a government regulation (PP) on oil and gas holding SOEs.“So the steps are as follows: extraordinary shareholders meeting, issuance of PP and the issuance of inbreng certificate,” Harry added.

Meanwhile, the PP draft on oil and gas holding SOEs has been signed by Finance Minister Sri Mulyani Indrawati and SOEs Minister Rini Soemarno. Currently the draft is in the State Secretariat, waiting for an approval from President Joko “Jokowi” Widodo.

Under the oil and gas holding, PGN will become a subsidiary of Pertamina, which will be responsible for midstream and downstream gas business. (bbn

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Wika issues bonds worth Rp5.4 trillion
Antara News, 25 January 2018

Jakarta (ANTARA News) - State-owned construction firm PT Wijaya Karya Tbk (Wika) has issued rupiah-denominated bonds worth Rp5.4 trillion (US$405.46 million).

"Proceeds from the bond issue will be used to refinance its corporate debts, working capital, and capital expenditures," the company`s acting corporate secretary, Puji Haryadi, said in an official statement released on Wednesday.

Bond pricing was conducted on Monday (Jan 22) using the Jakarta Interbank Spot Dollar Rate of Rp13,318 per dollar for Tuesday (Jan 23), he stated.Nine days after the bond pricing, the company will settle its bonds and sign an indenture with Bank of New York Mellon, in its capacity as trustee, he noted.

The bonds are offered outside the Indonesian territory, in accordance with Regulation S and Rule 144A of the United States Securities Act of 1933, he remarked.
The issuance and offering of the bonds do not constitute public offering, as referred to in the Law No. 8/1995 on the capital market, he explained. 

On the same date, the company also signed purchase agreements with BNP Paribas, the Hong Kong and Shanghai Banking Corporation Limited, Mandiri Securities Pte Ltd, and MUFG Securities Ltd, in their capacity as initial purchasers, he revealed. 

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Expert Compares Zero DP Housing Program with Ahok`s Flats
Tempo.co, 25 January 2018

TEMPO.CO, Jakarta - Public Policy expert Trubus Rahadiansyah reasons that the housing program launched by former Jakarta Governor Basuki Tjahaja Purnama (Ahok) is better than the zero down payment housing program by Anies Baswedan – Sandiaga Uno.

According to Trubus, Ahok’s program was able to reach the lower income residents of Jakarta while the zero down payment (DP Rp0) program could only be accessed by Jakarta’s middle class. “People with an income under Rp3 million can rent a space at the rusunawa (low-cost flats) Ahok introduced,” said Trubus.

Based on that reason, Trubus suggested that the current Jakarta Governor should continue the program already run by the previous governor. “The policy should be continued, don’t innovate if it’s not backed by a well-thought plan,” he added.

The Head of Trisakti University public policy review center reasons that the policies Governor Anies Baswedan issued since he took office one hundred days ago have yet to solve public issues. “Most of them are for the sake of public imaging (Pencitraan), I have yet to see any concrete policies,” said Trubus on Tuesday, January 23.

He argues that the housing program promised by Anies Baswedan during his campaign was to provide independent housings, not flats. The governor’s promise was difficult to be realized considering the limited space that is available in Jakarta.

“After having difficulties building a rusunami (apartments sold for personal ownership) now they are changing it to a rusunawa (leased apartments). It’s simply being indecisive. Their policies keep on changing,” said Trubus.

Anies Baswedan placed officially commenced the construction of zero down payment housing flat at Klapa Village, in East Jakarta on January 18. He claims that it fulfills his campaign promise of providing homes for Jakarta residents.

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ABB wins $40 million national power grid project
The Jakarta post, 25 January 2018

Swiss electricity company ABB has won the tender for a project worth more than US$40 million from a consortium comprising Doosan Heavy Industries and state-owned construction company PT Hutama Karya. 

The project involves upgrading and expanding the Muara Tawar combined-cycle power plant in West Java to boost the supply of clean energy for Greater Jakarta.The power plant is operated by state-owned electricity company PT Perusahaan Listrik Negara (PLN).

ABB is a pioneering technology leader in electrification products, robotics and motion, industrial automation and power grids.
The company serves customers in various sectors around the world, including utilities and industry, as well as transportation and infrastructure. 

It operates in more than 100 countries, employing about 136,000 people. Having been in the field for the last 130 years, ABB is writing the future of industrial digitization today to drive the fourth wave of the industrial revolution.

According to a press release made available on Jan. 23 to The Jakarta Post, the innovative project will expand the national power grid by 650 megawatts. 

The order was booked in the fourth quarter of 2017. In order to improve the efficiency of the plant and provide clean energy to Greater Jakarta, the project will upgrade the current 1,150 MW gas-fueled generator and convert it into a 1,800 MW combined-cycle power plant.

A combined-cycle power plant uses both gas and steam turbines to produce more electricity from the same amount of fuel than a traditional simple-cycle plant. Waste heat from the gas turbine is routed to an adjacent steam turbine, which generates extra power.

As part of the turnkey project, ABB is responsible for the plant’s design, engineering, installation and commissioning of supporting components and auxiliary systems. 

The company will also supply a 500-kilovolt air-insulated switchgear (AIS) substation. Key product supplies include generator circuit breakers, medium- and low-voltage switchgear, as well as transformers and protection equipment.

ABB also recently inaugurated a new manufacturing factory for high-voltage switchgear on the outskirts of Jakarta in Tangerang, Banten. This is part of ABB’s continued expansion in the country, which also includes the establishment of a new factory for medium-voltage products in 2015 at the same location.

Indonesia is the world’s fourth most populous country and one of the fastest growing economies in Asia. This has spurred the need for electricity, and according to PLN, demand is projected to grow at around 8.5 percent per annum between 2015 and 2025. In response, the government has outlined a plan to add 35,000 MW in new power generation capacity between 2015 and 2019.

Indonesia aims to connect 99.7 percent of all households to the nation’s electricity grid by 2025. To accomplish this mission, the nation requires an additional power generation capacity of over 80 gigawatts. The government is also targeting 23 percent renewable energy sources in its energy mix by 2025. 

The Muara Tawar upgrade and conversion project will contribute significantly to these goals.“ABB has a long-standing presence, expanding footprint and proven track record in Indonesia. 

Therefore, we are pleased to be able to contribute further to the development of the country’s power infrastructure to serve the country’s growing economy and vibrant population,” said ABB Power Grids Division President Claudio Facchin in the press release. “We are proud to be a part of this innovative project, which supports our vision of enabling a stronger, smarter and greener grid.”

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China expects greater RI participation at 2018 import expo
The Jakarta post, 24 January 2018

China has called on Indonesia to join the China International Import Expo (CIIE), scheduled in November this year, as one of the ways to boost trade between the two countries.

Other than showcasing high-tech equipment, consumer goods, foodstuff, agricultural products and services, the CIIE will allow participants to conduct online and offline transactions through a "one-stop" transaction platform, the Chinese Embassy in Indonesia said in a press statement.

Wang Liping, the economic and commercial counselor at the embassy, said companies from Indonesia could join firms from the United States, Japan, Australia, Brazil, Thailand and other countries to exhibit its products at the CIIE and expand its business in China.

"Businesses from all over China will attend the expo to procure goods and services. It is estimated that more than 150,000 domestic and foreign buyers will participate in the expo," Wang said in the statement.

The Chinese government expected that Indonesia could do more to promote specialties like woodcarvings, gems and prawn crackers, which have become more popular in China, on top of conventional products like bird's nest, coffee, coconuts, coal, palm oil and rubber.

"Indonesia's products deserve greater popularity. Indonesia is the fourth largest coffee producer in the world and its civet coffee is world renowned," Wang said.In 2017, the volume of China's total imports reached US$1.8 trillion and is expected to reach $10 trillion in the next five years.

Indonesia continues to lag behind other countries in ASEAN in exporting goods to China. In 2017, the value of Malaysian export to China reached $49.2 billion, while the export figure for Indonesia is $25.6 billion.


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