Updates News November, 29 2018

In The News

 

 

 

Jokowi officially commissions Sragen-Ngawi toll road

Antara News,29 November 2018

Sragen, C. Java (ANTARA News) - President Joko Widodo (Jokowi) on Wednesday commissioned the 51 kilometer Sragen-Ngawi toll road in Central Java.
The new toll road is part of the 90.43 km Solo-Ngawi toll road.

With the operation of the Sragen-Ngawi section, the 90- km Solo-Ngawi toll road would be fully operational as the 35.22 km Kartasura-Sragen section was already operational in July this year.

The Solo-Ngawi toll road itself is part of the Trans Java toll road linking Merak in the western part of Java and Banyuwangi in the eastern end of the island.
With the Solo-Ngawi toll road fully completed, all toll road sections of the Trans Java toll road would be fully operational by the end of this year.

 By the end of this year toll toad between Jakarta and Surabaya would be connected and in operation by the end of this year, the president said.
Director General of Highway Construction and Maintenance (Bina Marga) Sugiyartanto said the 90.43 km Solo-Ngawi toll was built under a 40-year contract of Rp11 trillion.Construction began in 2011It is important for the economic development in that region, he said.
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Jakarta to build three overpasses next year

Antara News,29 November 2018

 

The Jakarta administration is planning to build three overpasses in Tanjung Barat, South Jakarta; Cakung, East Jakarta and Sunter Permai, North Jakarta.

 Bina Marga Road Agency acting head Harry Hamdani said the overpasses would be built soon to support the toll roads according to Presidential Regulation (Perpres) No. 55/2018 on the 2018-2029 Greater Jakarta transportation masterplan.“Perpres No. 55/2018 [mandates that] construction should start soon,” Harry said on Wednesday as reported by kompas.com.

He added that five overpasses had been planned for next year, but two were scrapped, namely on Jl. Bintaro Puspita in South Jakarta and Jl. Latumenten in West Jakarta.Harry said the three overpasses would be built over a two-year period.

According to the 2019 city draft budget, the Tanjung Barat overpass will cost Rp 103.2 billion (US$7.1 million), Cakung Rp 90.9 billion and Sunter Permai Rp 87.3 billion.The Jakarta Council budget committee (Banggar) approved the 2019 city draft budget on Tuesday.

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Economic uncertainty feared to continue through 2019: Jokowi

Antara News,28 November 2018

 

Surakarta, C. Java (ANTARA News) - President Joko Widodo said uncertainty besetting global economy is feared to continue through 2019. "The global economy at present is potential to be hit by uncertainty," President Jokowi said in a national leadership meeting of the Indonesian Chamber of Commerce and Industry (Kadin) in Solo, Central Java on Wednesday.

He said the recent summit meeting of the Asia Pacific Economic Cooperation (APEC) showed that there has not been signs that trade war between the United States and China is about to end.

The United States and China are yet to meet again in the G20 summit conference, but Jokowi said he did not expect much from the meeting.
It is still difficult to bring the two countries to a compromise, Jokowi said.

However, Jokowi said, the trade war also opens new opportunity. "According to Kadin and Himpi many foreign investors planned to relocate their factories to ASEAN including Indonesia," he said.
High import tariff slapped by the United States forced China to look for other partners, he said.
"This is the opportunity. We have to grab that opportunity by making them our partners in investment and to increase exports," he said.

Jokowi said the country`s main problem is deficits in trade balance and in current account balance.
"Big problem confronting us is trade deficit and current account deficit that could be cop0ed with by an increase in exports," he went on to say.

 

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Jokowi urges CEOs of companies in Indonesia to spot opportunities

Antara News,29 November 2018

 

Jakarta (ANTARA News) - President Joko Widodo (Jokowi) has called on the chief executive officers (CEOs) of companies in Indonesia to spot opportunities in line with Indonesia`s increasing competitiveness in the eyes of the world.

In a statement received on Wednesday, several sources said that Indonesia`s Global Competitiveness Index continued to improve, rising to the 45th rank from 140 countries in 2018, as compared to ranking 47 in 2017.
Indonesia`s "Ease of Doing Business (EoDB)" ranking continues to soar, occupying 72nd position in 2017, from the ranking of 106 in 2015. This surge indicates continuous structural improvements.

In President Jokowi`s administration, Indonesia had also succeeded in achieving an Investment-Worthy rating from three of the world`s leading rating agencies: Standard & Poor`s, Moody and Fitch. Standard & Poor`s had given Indonesia a Non-Worthy investment grade rating in 2014.

Speaking at the opening of the Kompas100 CEO Forum held at the Jakarta Convention Center, Tuesday (Nov 27), Jokowi invited CEOs to continue to remain optimistic and seize opportunities that could be utilized.

The head of state revealed that one of the opportunities that could be utilized was the high interest of global businesses to move their factories to ASEAN countries, including Indonesia.

"Now, this is an opportunity. This is what we can fill. This is all potential. Both the potential to strengthen our industry and to increase our exports. This is the opportunity. All we have to do is take this opportunity or not. We can take this opportunity or not," the president stated.

To this end, the government will lend support in utilizing existing opportunities.
In the midst of the current global and regional chaos, the president encourages entrepreneurs to not be careless and focus on opportunities that are in sight.

At last year`s Kompas100 CEO Forum, the president had conveyed changes in consumption patterns, from offline to online, which opened up tremendous opportunities in e-commerce.

In addition, the tourism sector has become a new engine of economic growth.He noted that world tourism had grown at seven percent, quite high as compared to the global economic growth of only 3.5 percent.
"This means that tourism growth is double the growth of the world economy. We need to see trends like this, where do we go.

 That is what we want to calculate. We want to calculate why we want to build 10 New Bali. Yes, because there is this opportunity, the tourism growth is seven percent," he explained.

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Link and match scheme connects industries and vocational graduates

Antara News,29 November 2018

 

Jakarta (ANTARA News) - Deputy Minister of Energy and Mineral Resources, Archandra Tahar, has stated that link and match partnership scheme is a fairly effective step to connect the workforce, especially graduates of vocational schools, and industries.

"Link and match is one of many ways; besides that, of course, there are many others. We think this scheme is effective, because in developed countries, for example the United States, the program is also implemented," Tahar stated after opening a discussion forum here on Wednesday.

He noted that the link and match scheme in Indonesia was facilitated by the government, especially the ministry, but in the US, the business meeting program was held by the private sectors.

"In the US, for example, there are many private sectors holding link and match programs. Someone who has competence and skills is selected from graduates of junior college after one to two years of study.

Here, we also have vocational schools, but there are some differences," Tahar remarked.

At the discussion, entitled "the Improvement of Competency of Vocational Graduates through Competence Certification in the Oil and Gas Sector in the Link and Match Framework in Jakarta" Tahar mentioned several issues that should be considered by experts and observers who were present at the discussion.

The issues include how vocational graduates and vocational schools face the economy, which is entering the era of industrial revolution 4.0, and how the graduates respond to the ASEAN economic community (AEC), which will open employment opportunities for workers from other countries in the Southeast Asia region.

What do we expect from vocational graduates? Do we want them to create jobs or just enter jobs that have been created by industries?" Tahar stated.According to him, there is a role that should be played by vocational graduates and the workforce generated from public higher education.Thus, there is a need for a link and match scheme to connect each graduates and industries in order to meet the industrial needs related to qualified workforce.

 A signing of a Memorandum of Understanding between vocational schools and industries was also held at the discussion.

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Bank Indonesia Gives Award to PayTren on SME

Tempo.co ,29 November 2018

 

TEMPO.CO, Jakarta - The financial technology PT Veritra Sentosa Internasional or PayTren was one of the recipients of the 2018 Bank Indonesia Award for a category of the active digital platform in supporting country’s SMEs development through its trading platform with an electronic-based payment system.

PayTren owner and president commissioner Yusuf Mansur said the award was obtained due to God’s willing and the company’s hard work, “as well as support from many people and many improvements,” said Yusuf on Tuesday, November 27.

Bank Indonesia (BI) presented the award in the annual meeting of Bank Indonesia 2018 in Jakarta Convention Center, Jakarta. Attending the meeting was President Joko ‘Jokowi’ Widodo and Cabinet Ministers, speakers and members of the House of Representatives (DPR) and Regional Legislative Council (DPRD), regional heads, and banking leaders.

During the event, Bank Indonesia honored the awards and gave national recognition to those partners that supporting its duties.

There were 40 awards in 4 areas and 14 categories, including management sector on monetary stability and financial system, payment system and rupiah management, the supporter of BI regulation, and individual contribution.

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Jakarta Ratifies 2019 Regional Budget Draft worth Rp89tn

Tempo.co ,29 November 2018

 

TEMPO.CO, Jakarta - Regional Budget Draft (RAPBD) of Jakarta set at Rp89.09 trillion. Jakarta Legislative Council (DPRD) speaker Prasetio Edi Marsudi and Governor Anies Baswedan signed the MoU on Wednesday afternoon, November 28.

“The 2019 RAPBD increases up to 7 percent compared to the last year’s APBD which amounted to Rp83.26 trillion,” said Anies in the Plenary Meeting of Jakarta DPRD.

Anies explained the hike on budget draft was based on several indicators. In 2019, Jakarta economic growth, he mentioned, was projected to rise 6.6 percent.“The figure is higher than the realization of economic growth in mid-2018 which recorded at 5.93 percent,” Anies said.

The second consideration, household consumption, also experienced growth and improved investment. Anies said the increase was in line with the infrastructure development of MRT phase 2 and the calming political tension.

Besides, private investment was estimated to strengthen as in line with the series of general elections. “So, such a ‘wait and see’ act will likely decrease,” Anies noted.

DPRD’d Budget Committee cut off several strategic activities proposed by Jakarta administrationThe cutting was discussed in a joint meeting with the budget unit of Jakarta administration during the past two weeks.

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Piece of Eiffel Tower Staircase Sells for 169,000 Euro in Auction

Tempo.co ,28 November 2018

 

TEMPO.CO, Paris - A piece of the original spiral staircase from the Eiffel Tower, Paris` most famous attraction, was sold for 169,000 euros (190,885 dollars) on Tuesday, Nov. 27, a spokesman for auction house Artcurial said, three times the initial estimate.

The successful bidder, an unidentified collector from the Middle East, acquired a section of the 129-year-old iron landmark that measures 4.3 metres (14 feet) in height, weighs about 900 kilos (1,984 pounds) and includes about 25 steps.

The piece, which came from a private collection in Canada, had connected the top two floors of the Eiffel Tower.It is one of 24 sections that were cut out in 1983 following the installation of a lift between the two floors.

Other sections of the staircase can be found in sites such as the Yoishii Foundation gardens in Japan, near the Statue of Liberty in New York and in Disneyland in California.

The piece sold on Tuesday had been on public display for 20 days in the courtyard of the auction house on the Champs-Elysees.Tuesday's bidding was less frenetic than in 2016, when another portion of the Eiffel Tower went for 523,800 euros, exceeding its estimate tenfold. 

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Garuda Reopens Jakarta-Nagoya Route

Tempo.co ,28 November 2018

 

TEMPO.CO, Jakarta - Flag carrier Garuda Indonesia will reopen the Jakarta-Nagoya flight beginning March 23 next year, after the state-owned airlines closed the route several years earlier.

"The opening of the route again is part of the network expansion commitment of Garuda Indonesia," Garuda Indonesia President Director Ari Askhara said in a written press statement on Tuesday.

He said that network expansion was being done through flight capacity development and fleet utilization on prospective flight routes.

The Jakarta-Nagoya route will be served four times a week vice versa on Tuesday, Friday, Saturday and Sunday. Garuda will operate Airbus A330 dual class planes, consisting of economy and business classes.

"The service for this route is part of the positive step taken by Garuda in maintaining market ceiling in its Japan-Indonesia service," he said.

Moreover, Japan-Indonesia routes continue to grow and promising where the number of Japanese tourist arrivals in Indonesia continue to increase significantly, especially in Jakarta which is the country`s biggest economic center.

Nagoya, which is the capital of Aichi Prefecture is a very potential market for Garuda Indonesia, especially tourism businesses and passengers.

"We hope that the opening of direct flight routes will further strengthen good relations between the two countries, especially in improving economic, trade and tourism relations between the two countries", Ari AskharasaidIn addition, Aichi Prefecture is known as one of the busiest industrial and manufacturing cities in Japan.

"We are optimistic that the opening of direct services for Jakarta - Nagoya can support efforts to accelerate the pace of the business climate and economic potential between the two countries," he said.

Japan is one of the most important market shares for Garuda Indonesia. For more than 50 years, Garuda Indonesia has shown its support for strong bilateral relations between Indonesia and Japan.

With the opening of this service, passengers are expected to to enjoy more choices of flights and destinations to Japan and Indonesia and vice versa.

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LIPI Reports Climate Change Eventually Damages Coral Reefs

Tempo.co ,28 November 2018

TEMPO.CO, Jakarta - Indonesia’s coral reefs that are in poor condition was reflected in the study done by the Indonesian Institute of Sciences (LIPI). It states that there is only 6.56 percent that is in a good condition. 

LIPI came to the conclusion that the global climate change is the perpetrator of the coral reefs’ declining condition.“Generally speaking, the coral reef damage is caused by the global climate change. It can also be caused by natural elements and anthropogenic, such as earthquakes, tsunamis, high population of polycarang predators and the global climate change,” said Giyanto, Head of LIPI Oceanography Research Center today, Nov. 28.

Furthermore, LIPI Oceanography Research Center studied that any activity involving fishermen or businesses taking natural coral reefs are considered in the non-detrimental finding (NDF) set by CITES and does not significantly contribute to the current damage. 

Giyanto explained that damages caused by anthropogenic are; overfishing that causes imbalance, the use of explosives and toxin, mining, sedimentation, tourism, the construction of beaches.

Meanwhile, another LIPI researcher Suharsono explained that Indonesia is the center ecosystem of coral reefs and revealed that Australia does not experience reef damages caused by humans, only because of tourism.

He said that coral reef bleaching only happens at Indonesia’s Western region while the country’s Eastern area never experiences this. 

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Indonesia and Algeria step up trade and investment

The Jakarta post,29 November 2018

Indonesia and Algeria have made a commitment to increase bilateral trade and investment. The two countries – Indonesia in Southeast Asia and Algeria in North Africa – have economic ties that go a long way back.

Algeria ranks sixth on the list of Indonesia’s biggest export destinations in Africa and is the fourth-biggest African exporter to Indonesia – both according to 2017 statistics.

On the list of Indonesia’s trading partners at the global level, meanwhile, Algeria ranked 46th as an export destination for Indonesia and 41st as an exporter to Indonesia.

The two countries announced their renewed commitment after Indonesian Trade Minister Enggartiasto Lukita conducted a bilateral meeting with Algerian Industry and Mining Minister Youcef Yousfi in the city of Algiers on Nov. 22.

During his visit to the country, Enggartiasto also conducted a meeting with Algerian Chamber of Commerce and Industry Chairman Mohamed Laid Benamor, who is also active as a prominent business practitioner in his country.

Benamor asserted that business practitioners in both countries were yet to grasp the huge economic potential that both countries could use to benefit each other.Enggartiasto responded by saying that the needs of Indonesia and Algeria actually overlapped with one another, thereby opening up opportunities for partnerships.

Algeria and Indonesia could work together to boost each other’s economic growth by tapping into each country’s strong economic potential.

For instance, Indonesia could benefit from Algeria’s status as a North African business hub, while Algeria could make use of Indonesia’s status as a big Southeast Asian country.

In addition to that, both sides of the equation could work together in a mutually beneficial cooperation, as Indonesia has ample natural and human resources, which are needed by Algeria, which is actively seeking not only business partners but also a potential market for its products.

“Algeria prioritizes a number of industrial sectors, including food processing and textiles. I have told them that Indonesia has a great resource capacity and have requested that the Algerian government facilitate Indonesian investment in the country,” Enggartiasto said.

On Nov. 21, a day before Enggartiasto conducted the meeting with Said Djellab, he had already held a bilateral meeting with Algerian Trade Minister Said Djellab.The two discussed a number of concrete efforts their countries could take to step up their trade relations.

For instance, Djellab said Algeria could learn from Indonesia about how to diversify away from oil and gas products, because Algeria had been relying too much on oil and gas products in its trading activities.

We have explored a number of action plans to boost non-oil and gas trade activities between the two countries.One of the steps we can take to achieve that goal is intensifying activities that promote trade between the two countries, as well as boosting the capacity of our small-to-medium enterprises,” Enggartiasto said.

Enggartiasto said activities that could promote trade between the two countries included inviting Algerian business players to attend business forums and exhibitions during the annual Indonesian Trade Expo to identify companies that had the greatest business partnership potential.

“I would like to invite the Algerian trade minister as well as the industry and mining minister to pay a visit to Indonesia. [I would also like Indonesia and Algeria] to get to know each other’s products, learn from one another and, if there are investors who would like to forge investment partnerships with Indonesia, we can arrange factory visits for them,” Enggartiasto said.

“Indonesia expects the Algerian government to provide the country’s businesspeople who have invested there with [easy business procedures] as well as economic certainty.

These two things are extremely important to boost export volumes, whether processed products or raw materials, from Indonesia to Algeria, as well as the deployment of Indonesian professionals to Algeria to process the raw materials,” Enggartiasto said.

According to Enggartiasto, two Indonesian companies are currently invested in Algeria, namely state-owned energy company Pertamina as well as state-owned construction company PT Wijaya Karya.

Indonesian food producer PT Indofood Sukses Makmur, meanwhile, is exploring possibilities of opening a factory in Algeria.Trade Ministry International Trade Negotiations Director General Iman Pambagyo said he was optimistic that Indonesia’s partnership with Algeria could help open doors to other markets as well.

“Algeria can serve as Indonesia’s strategic economic partner, [helping Indonesia] penetrate the African and Southern European markets, while Indonesia could also help Algeria penetrate the Southeast Asian markets as well as countries that are part of the Regional Comprehensive Economic Partnership (RCEP) free-trade agreement,” Iman said.


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