Updates News October, 24 2018


In The News

 

Banking industry needs to strengthen capital: ojk
Antara News, 23 october 2018
 
Jakarta (ANTARA News) - Financial Service Authority (OJK) Deputy Commissioner Slamet Edy Poernomo said national banks need to reinforce their capital so that they remain competitive.

The strengthening of capital is needed by banks to face the current high interest rates.
"Therefore, OJK supports banking consolidation in the framework of strengthening banking capital," Peornomo stated.

He also said the consolidation of banking could be carried out through a merger or through acquisitions. Over the past year, the OJK has conducted assessments on the condition of respective banks.
"We want to provide directives. It is impossible for us to reduce the number of banks," noted Poernomo.

Banking consolidation, he continued, can also assist OJK`s task in regulating and supervising the banking industry, supported by increasingly developing technology.

"The control is even better. So we monitor only the bank, because the small bank is included in it. So the issue is going forward, with consolidation there will be a strengthening of capital, it can be done with mergers, with acquisitions," said Slamet.

Meanwhile, senior economist at the Indonesia Stock Exchange (IDX), Poltak Hotradero, said in learning from the 1998 crisis, the strengthening of capital was, indeed, a necessity.

"Whether it is a merger, acquisition, or adding capital through the capital market, that is an option," said Poltak.
Likewise, related to the source of capital, whether domestic or foreign capital, he considered this not to be a problem."They are very necessary. It is not a matter of a black cat or white cat, yet it is important to catch mice," he said.
 
 
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Rupiah moves weaker on external sentiment
Antara News, 23 october 2018
 
Jakarta (ANTARA News) - The rupiah exchange rate in interbank transactions in Jakarta on Tuesday morning moved down by 26 points to Rp15,197 as compared to the previous position of Rp15,171 per US dollar.

"The US dollar strengthened against almost all of the world`s strong currencies, driven by the return of uncertainty in the European financial markets," Samuel Securities economist Ahmad Mikail stated here on Tuesday.

He noted that uncertainty in Europe was driven by the issue of an increase in the Italian state budget deficit and the return of the process of Britain`s exit from the European Union.

In addition, he remarked that appreciation of the US dollar was triggered by the prospects of the U.S. Federal Reserve hiking its Federal Funds Rate.

"The external sentiment has put pressure on the rupiah against the US dollar," he stated.

He added that ahead of Bank Indonesia`s (BI`s) Board of Governors` Meeting on Tuesday, it is expected to maintain the BI seven-day reverse repo rate or its benchmark interest rate at 5.75 percent.

CSA Research Institute senior analyst Reza Priyambada expects market participants to respond positively to BI`s policy that is expected to maintain the interest rates.

"Interest rates are maintained, and it is expected to lend a positive sentiment to the rupiah`s movement," he added.
 
 
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Anies, Jokowi Distribute 5,000 Land Certificates in South Jakarta
Tempo.co, 24 october 2018
 

TEMPO.CO, Jakarta - Jakarta Governor Anies Baswedan accompanied President Joko Widodo or Jokowi to distribute 5,000 certificates to South Jakarta residents on Tuesday, October 23. Jokowi handed over the certificates symbolically to several residents.
 
“5,000 certificates for 18 villages in South Jakarta,” said Anies Baswedan in his remarks on the Ahmad Yani field, Kebayoran Lama, South Jakarta.
 
The Minister of Agrarian Affairs Sofyan Djalil, representative of the Ministry of National Defense Agency, and the Mayor of South Jakarta were also attended.
Jokowi said that for South Jakarta, it is targeted that the certificates of 40,600 lands will be completed by the end of this year. “Because this land dispute becomes a report that I always hear every time I travel around Indonesia,” said Jokowi.
 
Jokowi said the land certificates distribution had been carried out since 2017. At that time, the government distributed 5 million certificates, in 2018, it is targeted to be 7 million, and for the next year, the target is 9 million.
 
“Before I order the distribution of certificates, the government only issue 500,000 certificates per year,” Jokowi said.
 
Jokowi advised the community to use the land certificate as best as possible. “Do not pawn it to buy a car,” said Jokowi accompanied by Anies Baswedan.
 
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Moeldoko Explains Reason Govt Focus on Infrastructure Program
Tempo.co, 23 october 2018

 

TEMPO.CO, Jakarta - Presidential Chief of Staff Moeldoko explained reasons the government of President Joko `Jokowi` Widodo and Vice President Jusuf Kalla during the four-year office focused on the infrastructure development. According to Moeldoko, building the infrastructure was the same as building human civilization.
 
Moeldoko said people in the border region previously faced many challenges and even questioned themselves of being an Indonesian citizen or not.

 
“Now, the access is open as wide as possible. President has a concept of Indonesiasentris, which is the development not only focus in Java and Bali,” said Moeldoko in the BPPT building, Monday, Oct 22.
 
Moeldoko opined the government’s focus on building infrastructure aimed at advancing the human because infrastructure made life easier for the community.
 
According to him, the infrastructure development also provided convenience in the investment sector, and that was seen by the increased rank of Indonesia in the ease of doing business. “Investment rapidly flows to Indonesia,” he said.
 
However, Moeldoko admitted the infrastructure program during the era of Jokowi-JK was still required further enhancement and participation from all parties was needed. “There is something lacking in Nawacita [nine flagship programs of Jokowi-JK].
 
Let’s repair it together. Because the government does not have an allergy towards criticism, we are all open,” he said.
 
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Pertamina Seeks US$4bn Proceeds from Global Bonds Offering
Tempo.co, 23 october 2018
 
TEMPO.CO, Jakarta - State-owned oil and gas company Pertamina is planning to issue global bonds. The company is targeting an offering's proceed of US$2bn to US$4bn, which it will use as capital expenditure (capex).
 
"We are now doing a roadshow to meet with investors," Pertamina finance director Pahala N. Mansury said on Monday, October 22.
Separately, the SOE Ministry's deputy for business restructuring and development Aloysius Kiik Ro said that Pertamina had kicked off its roadshow.
 
The bonds proceeds, Aloysius said, will be used to finance the company's projects.
Some of Pertamina`s future plans include business expansions, the constructions of new oil refineries as well as revitalizing old ones
 
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4-Year Jokowi Admin, Deficit of BPJS Kesehatan Becomes Problem
Tempo.co, 24 october 2018
 
EMPO.COJakarta - The Indonesian Institute Social Researcher Umi Lutfiah said the Health and Social Security Agency (BPJS Kesehatan) deficit was a stumbling block to the four-year administration of Joko Widodo and Jusuf Kalla.
 
“If the government is still reluctant to increase the monthly contribution, then the BPJS Kesehatan deficit will continue to increase.
 
This is in line with the increasing number of participants from year to year and made worse by arrears of contributions by independent participants,” Umi said in a written statement on Tuesday, October 23.
 
In the 4-year report of the Jokowi-JK administration, said Umi, it was known that the social protection budget increased from year to year.
 
Umi said it was also balanced by an increase in the coverage of participants and the number of first-level health facilities (FKTP) and advanced referral health facilities (FKRTL) in collaboration with BPJS Kesehatan.
 
Until now, Umi said the deficit reached Rp16,5 trillion. But the government does not want to raise the monthly contribution.
 
The class I independent participants must pay Rp80,000, class II Rp51,000 and class III Rp25,500.
In fact, since 2015, the National Social Security Board (DJSN) has provided recommendations.
 
For class I independent participants must pay Rp80,000, class II Rp63,000 and class III Rp33,000.
Umi said the use of cigarette excise funds that are relied on to cover the deficit must also be balanced with promotive and preventive services.
 
“Remember that the diseases due to unhealthy lifestyles such as heart disease and stroke are diseases that absorb the BPJS Kesehatan claims the most. One of the efforts to suppress it is to intensely promote promotive/preventive programs,” said Umi.
 
Singapore to host RHT ASEAN Summit 2018 to boost sustainable growth
In an effort to throw more light on sustainable growth in Southeast Asia, Singapore will host the RHT ASEAN Summit 2018 on Wednesday (Oct. 24) at the Suntec Singapore Convention & Exhibition Center.
 
The summit, which has theme of  “The Future for ASEAN Economy: Greening for Sustainable Growth”, will bring together sustainability-driven leaders, investors, innovators and professionals across all industries to ignite, initiate and inspire sustainability and corporate social responsibility initiatives for a green Singapore and ASEAN.
 
Not just delegates from Singapore, but also diplomats and business leaders from ASEAN and European countries will attend this important gathering.
 
For example, the Philippines’ leading property developer, Ayala Land, will share its experience in championing sustainable responsible business, as well as insights on the economic outlook and real estate investment in the Philippines.
 
The guest of honor and the keynote speaker of the summit will be Singapore’s Senior Minister of State for the Environment and Water Resources and Health Dr. Amy Khor, who is expected to highlight Singapore’s efforts and directions for businesses to achieve sustainability.
 
As a further boost to the Sustainable Singapore Climate Action 2018, Minister Amy will witness a mass climate action pledge by 300 delegates and 20 organizations.
 
So far more than 300,000 individuals and organizations have made similar climate action pledges in Singapore.
 
The Year of Climate action is a Singaporean national campaign to raise public awareness on the need to take collective action to fight climate change and ensure a sustainable living environment for our future generations.
 
The gathering will mainly focus on sustainability challenges and opportunities in green initiatives to encourage organizations to embrace sustainable practices and values.
 
It will also discuss Singapore’s potential as a green finance hub and blockchain as a game changer in Sustainable Development Goals (SDGs).
 
The summit -- which will be organized this year by RHTLaw Taylor Wessing LLP -- is already in its fourth year.
 
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“ASEAN will face multiple challenges on sustainable development as it continues to experience significant growth.
The Jakarta post, 23 october 2018
 
The RHT ASEAN Summit 2018 is a platform for regional thought leaders to highlight the sustainability challenges and opportunities in green initiatives, in an effort to encourage more organizations to take sustainability seriously,” Azman Jaafar, deputy managing partner of RHTLaw Taylor Wessing, said. 
 
“Singapore’s position as a major financial and trading hub creates significant potential for local businesses to spearhead sustainability initiatives, which will have a long-term positive impact on ASEAN’s economy, environment and communities,” Azman, who is also the chairman of the ASEAN Plus Group, stated.
 
The RHTLaw Taylor Wessing LLP is a Singapore law firm with an extensive international reach, and RHT Academy is a leading provider of transformational training, development and continuing education for legal, governance, risk and compliance professionals and senior executives
 
During this summit, RHT Rajan Menon Foundation, a charity organization and one of the key sponsors of the gathering, will commission its key initiative called GAIL (Greening ASEAN Initiatives and Leadership) to encourage organizations to embed sustainability into their operating models.
 
There will be also sustainability workshops -- organized by the summit’s strategic partners Independent Consultants 1920 LLP and Sustainability Consultants 1920 LLP -- for participants during the summit.
 
The main sponsors of the summit are ASEAN Plus Group and its partner firms from Asia, RHT Rajan Menon Foundation, CMIG International, Taylor Wessing, Automobile Association of Singapore, Sentosa Golf Club and Ayala Land International.
 
For more information or to attend the RHT ASEAN Summit 2018, please visit
 
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LRT stations to be integrated with Transjakarta shelters
The Jakarta post, 24 october 2018
 
Phase two of the light rapid transit (LRT) railway project connecting the Jakarta International Velodrome in Rawamangun, East Jakarta, and Dukuh Atas in South Jakarta will have stations integrated with Transjakarta bus shelters.
 
PT Jakarta Propertindo project director Iwan Takwin said the three LRT stations at the Velodrome, Pulomas and Kelapa Gading depots in East and North Jakarta, respectively, will have a skybridge connecting them to bus shelters.
 
"The LRT is sticking to its concept of integration with other modes of transportation," Iwan said on Tuesday as quoted by kompas.com.
 
PT LRT Jakarta president director Allan Tandiono has mentioned a similar plan.
 
Velodrome Station, for instance, would be connected to Transjakarta's Corridor 4 (Pulogadung-Dukuh Atas), with the nearest shelter being on Jl. Pemuda, Allan said.
 
"A Transjakarta shelter already exists there, just 100 meters away from the [Velodrome] station. We'll connect them with a skybridge," he said.
 
The integration is expected to shorten commuters’ travel time. The trip from Kelapa Gading to Dukuh Atas should take 45 minutes, he added. (vla)
 
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Government targets 19.58% tax revenue growth in 2019
The Jakarta post, 23 october 2018
 
The government is targeting Rp 1.62 quadrillion (US$106.53 billion) in tax revenues for 2019, or 19.58 percent higher than this year's target.
 
Meanwhile, it has set a 12.11 percent tax-to-gross domestic product (GDP) ratio.
“We have implemented tax amnesty. It was an initial step. We also have access to banking data.
 
The AEOI [Automatic Exchange of Information] is already to be implemented,” tax revenue and compliance director Yon Arsal of the Taxation Directorate General said on Monday in Jakarta.
 
“We will carry out tax reform based on the problems that occurred in the past and on the results of our evaluation,” he added as reported by kontan.co.id.
 
Yon said the government would focus on enhancing tax services, such as simplifying taxpayer registration, opening more service outlets and expanding the coverage of its e-filling facility.
 
He added that the government would tighten taxpayer supervision, implement the AEOI and enforce the regulation on access to financial information that authorizes the tax office to access taxpayers' bank accounts.
 
“The AEOI will be implemented in a credible and accountable manner,” said Yon.
He also said that the tax office would follow up on its tax amnesty findings to intensify collecting taxes from micro, small and medium enterprises (MSMEs) through the business development service (BDS), a joint program with the customs and excise office and to improve the quality of taxpayer data.
He assured that law enforcement measures against non-compliant taxpayers would be implemented fairly and transparently.
 
Improvements in human resource quality and information technology would further support the tax office's efforts to achieve its target, he added. (bb
 
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