ASEAN Affairs Forum

[Viet]

A master plan to promote ASEAN’s image


Updated : 3/13/2013 10:27:41 AM

(VOV) -The second ASEAN Communications workshop was held by the Ministry of Information and Communications (MIC) in Hanoi on March 12.

Participants were informed about the government’s Programme of Action to Promote ASEAN Cooperation and its plan to set up the National Information Committee on ASEAN and disseminate information on the bloc’s social and cultural affairs from now until 2015.

Nguyen Thi Hoang Thuy, a representative from the Ministry of Industry and Trade (MoIT), suggested related agencies create a channel to receive people’s feedback about ASEAN.

Regarding to upgrading of the Ministry of Foreign Affairs (MoFA) website, Thuy said other ministries should have their own websites linked to the MoFA to improve the quality of information.

Quan Duy Ngan Ha, MIC Director General of Department of International Cooperation, said the plan to promote ASEAN’s image until 2015 aims to highlight ASEAN’s important role, position and remarkable achievements, as well as each member country’s history, culture and daily life.

 

[Viet]

Vietnam, Japan establish ASEAN's first BPO partnership


English.news.cn 2013-03-13 15:52:23
Xinhua

HANOI, March 13 (Xinhua) -- Vietnam's FPT Software and Japan' s Agrex have signed a memorandum of understanding to establish the first joint venture of Business Process Outsourcing (BPO) in the ASEAN region, reported by Vietnam News on Wednesday.

The venture, known as F-Agrex, is designed to implement global BPO.

Specifically, Agrex's 50 years in implementing BPO and FPT's 15-year experience in managing large-scale software projects will be fully tapped to deploy high-quality and competitively priced BPO projects in the Japanese market.

F-Agrex plans to expand its BPO service to other potential markets, including Vietnam and other ASEAN countries.

According to FPT Software chairman Hoang Nam Tien, BPO is a sector that needs much human resources, but Vietnamese businesses have not yet paid much attention to it. So, F-Agrex would open a new trend for Vietnamese BPO service.

The venture is scheduled to be operational from July this year, first providing BPO service for Japanese businesses, then later globally.

The number of staff in the first year of operation would be 100 people, and up to 500 people in the following year.

FPT Software is a subsidiary of Vietnamese software giant FPT Corporation (FPT), and Agrex of Japan's IT Holdings.

 

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Building Palm Oil Sovereignty Indonesia

It has been 1 year after Indonesia started the implementation of Indonesia Sustainable Palm Oil (ISPO) standards in March 2012.

As the largest palm oil producer in the world, this country wants full sovereignty in production while still sticks to the agreed standard guidelines. When introducing the ISPO, the Government promised to submit ISPO notifications to the World Trade Organization (WTO) after 1 year of implementation.

The application of the ISPO standards should be related to the WTO provisions. Hopefully, ISPO can be recognized by the consuming countries to avoid non-tariff barriers.

As we know, Indonesia and Malaysia are the two major manufacturers of crude palm oil (CPO) which controls 90% world palm oil market. Indonesia’s actual production last year reached 26.5 million tons, while Malaysia to 18.7 million tons.

In global market, palm oil is the closest rival of vegetable oils, such as soybean oil and sunflower oil produced by European countries and the United States.

Indeed, the existence of ISPO aims to replace certification organized by the Roundtable on Sustainable Palm Oil (RSPO) formed by Europeans. Besides citing the cost of more expensive, RSPO forum often considered unfair because it is not voicing the interests of producers of palm oil.

In the dialog on a private television, the Minister of Agriculture Suswono said the Government now faces a great deal of work to take care of ISPO certification. Application of ISPO certification is mandatory for any future oil palm plantation companies in Indonesia that sanctions will be set up for companies that do not have this certificate.

From 1,212 palm oil companies that exist today, only 200 companies will receive ISPO certification this year. Looking ahead, ISPO certification of all CPO producers should be completed in 2014.

At the external level, the Government has to deliver academic verification in international forums.

In the near time, Indonesia should be able to use the momentum of Asia-Pacific Economic Cooperation (APEC) forum in Bali as a venue to introduce the application of ISPO.

Through this forum, the government must emphasize CPO is an eco friendly product with low carbon emission, so it couldn’t endanger environment as alleged by Environmental Protection Agency.

Another thing should be concerned by government is to improve land efficiency. If we compared with Malaysia CPO’s production, Indonesia’s CPO productivity is still in lower level.

For comparison, Malaysia’s CPO product last year came from 4 million hectare, whereas Indonesia from 9 million hectare. Mathematically, if we refer to Malaysia’s CPO productivity level, Indonesia should be able to produce palm oil up to 42 million tons through maximizing the existing land area.

Therefore, CPO producers need land management to enhance production. The effort also needs support from researchers to develop high yield palm oil varieties in order to increase productivity.

In addition, we couldn’t ignore infrastructure improvement such as access road to the palm oil field including expanding harbor to back up CPO trade activity. On the other hand, the government efforts to accelerate downstream sector must be continued in creating value added for CPO’s derivative with stick and carrot approach.

Finally, government's efforts to internationalize CPO as well as must support by industry to maintain Indonesia as the largest palm oil producer. At least, the government could break down the US and allies black campaign on CPO. (aph)

 

[Reashot Xigwin]

Enter, Indonesian Dragon - The Long Reach Of Asia's Next Booming Economy

Makassar's economic leap forward - (Jerry Toisa) By Bruno Philip and Chloé Hecketsweiler
LE MONDE/Worldcrunch

MAKASSAR – The nostalgic traveler who goes to Indonesia with the idea of walking in the footsteps of Joseph Conrad and living out their own Spice Route literary adventures will be stunned by the sheer luxury of Makassar’s airport.

A symbol of Indonesia’s rapid modernization and economic growth, this city of 1.5 million inhabitants does not look anything like the quaint capital of the old Sultans of Gowa, described by Conrad at the end of the 19th century as the “most beautiful city in Netherlands East Indies.” In its streets, McDonald's and Starbucks now stand alongside the local shops.

Situated 1,400 kilometers northeast of the Indonesian capital, Jakarta, Makassar is on Sulawesi Island (formerly known as Celebes). It is one of the symbols of the economic rebirth of Indonesia, which is now the fastest-growing economy of the G20 countries after China – 6.3% in 2012. A recent report published by McKinsey Global institute said that with a 8.6% growth rate, Makassar was one of the fastest-growing middleweight Indonesian cities.

Mayor Ilham Arief Sirajuddin is quite happy to explain why Makassar is now so successful: “First, you need to know that Makassar is ideally situated – we have become the ‘hub’ of Eastern Indonesia for both transportation and trade because we are strategically located between Borneo and Papua New Guinea,” he explains. “From the moment I became mayor, I sensed that Makassar could be a boon for investors.” Makassar, which has been called “the gateway to East Indonesia” must now become the region’s “living room,” to quote Mayor Sirajuddin’s favorite metaphor – it must become a “place to stay, not just a place to stop over.”

To understand Makassar’s rapid growth, it must be placed in a historical context. Indonesia is a young nation – its real independence dates back to 1949, when the Dutch colonizers decided to relinquish control for good. But the country only started to turn itself around in 1998, when President Suharto, a ruthless dictator, was forced out of the post he had been occupying since 1967. The transition toward democracy hailed in a new political and economical era that turned this mostly Muslim (88%) country of 246 million people upside down.

Foreign investors rushing in

According to Sofjan Wanandi, an ex-Suharto crony turned businessman, “Our success started at the beginning of the 2000s, and really grew these past eight years, during which we have benefitted from an unprecedented political stability.”

“About 50 million Indonesians earn between $3,500 and $5,000 a year,” less than China or Thailand but more than India or Vietnam, says Wanandi. “We have a dynamic demography and many agricultural and mineral resources. Our only big problem is the lack of infrastructure,” says the 70-year-old magnate, wearing a colorful batik shirt. “If we had better infrastructure, the country’s growth rate could be higher than 8%,” he says.

The government of President Susilo Bambang Yudhoyono, who will finish his second mandate in 2014, is well aware of that. Last year the government unblocked a $420 billion fund to finance a network of highways, airports and seaports. This is a blessing for the Indonesian industry, which has witnessed in a short period of time the emergence of very powerful companies, such as the one owned by Vice-President Jusuf Kalla, who is building Makassar’s new airport.

Foreign investors are eager to join the party – their investments grew by 37% in 2011, reaching $19 billion, a number the IMF believes could grow to $21 billion this year. “The Japanese and Koreans are by far the top investors but the Europeans are starting to get on board,” says Jean-Pierre Felenbok from Bain & Company, which just opened an office in Jakarta. “The French have been reluctant to invest here since the Asian crisis of 1997, so they’re a bit late to the party, but things are starting to change.” As a matter of fact, some French companies have already been investing in Indonesia for a while: Alstom, Schneider, Total, Lafarge, Danone or even L’Oréal, which inaugurated in September 2012 its biggest factory in the world near Jakarta.

For all foreign companies investing in the archipelago, the objective is double: to benefit from the huge internal demand, but also to use the country as a base for exports in the region. And as an added bonus, Indonesia’s labor costs are relatively low compared to other southeastern Asian nations, and even compared to China. “Today, Indonesian labor costs half as much as Chinese labor in the big industrial cities of eastern China,” says Felenbook.

Bureaucracy and corruption

The only drawback is that democracy brought with it a certain bureaucratic red tape that didn’t exist during the dictatorship. “The decision process is very slow, very complicated nowadays. Every project must be approved by the central government, then the local governments, via the Parliament,” explains Wanandi.

Fauzi Ichsan, one of the directors of the Standard Chartered Bank in Jakarta explains: “We had the choice between two models: India or China. We chose India, by trying to imitate its combination of liberal economy and democracy. Unfortunately the side-effects of our choice include the bureaucratic inefficiency of local governments.”

Another thing foreign investors complain about is Indonesia’s corruption problem. Despite efforts by the government to reduce corruption, it is deeply rooted in the country. In Transparency International’s 2012 list of most corrupt countries, Indonesia fell down 18 places – to 118th out of 176.

The mayor of Makassar dismisses these critics: “Here, we go fast. We speed things up, we can get you a building permit in three days, instead of 12; or an export license in a month, whereas it will take much longer in other provinces,” says Sirajuddin. These kinds of practices are inherited from Makassar’s long history of being a commercial hub. Since the 16th century, Portuguese, Chinese, Arabic, Indian, Javanese, Siamese and Malay traders have been sailing to Makassar to buy gold, pearls, copper and spices.

Makassar is now a modern city, open onto the strait that bears its name. A futuristic-looking mosque, blue and white, looks at the newly-concreted seafront. Along the waterfront, huge red letters spell out Makassar’s big ambitions.

You have to go past the street that leads to the port, with its shady bars and brothels disguised as karaoke parlors, to realize the full measure of Makassar’s fast-growing expansion. In the port, huge cranes are loading containers onto cargos, while further down, passengers embark and disembark from boats headed to Java, Papua New Guinea and Maluku Islands.

In the cargos leaving Indonesia, there is mostly coal – Indonesia is the world’s first coal exporter – oil, gas, gold, nickel, cobalt, rubber, and of course palm oil. All of these resources are fuelling Indonesia’s economic growth and making Indonesian multinationals like Sinar Mas, Wilmar, Golden Agri-Resources (all of them are in the palm oil business), Bumi Resources and Adaro energy (coal) prosper. Wilmar alone, one of Asia’s top agribusiness companies, has 90,000 employees. Its 2011 benefits topped $44 billion.

Indonesia’s exports only represent 25% of the country’s GDP, compared to 70% on average for the rest of Southeast Asia.

The true force of this country is their huge internal market, powered by the fast developing middle class – 50 million Indonesians who earn more than $4000 a year. “And this figure grows by 3 to 5% every year!” adds Felenbok.


Photo by - Jerry Toisa

All rights reserved ©Worldcrunch - in partnership with LE MONDE

Crunched by: Leo Tilmont

 

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Foreign Capitals Boost JCI To New Highest Record

Small party thrown in Jakarta Composite Index, IDX Building.

JAKARTA – Strong foreign capital inflow into the market boosted Jakarta Composite Index (JCI) to new highest record by 28 times in this year.

The foreign funds as of March 2013 reached IDR20.28 trillion, while it was around IDR15.36 trillion last year. JCI also booked 12.32% higher this year.

Mutual Fund Benchmark Index CIMB-Principal IDX30 managed by PT CIMB-Principal Asset Management incised return of 12.9%, or recorded tracking error of 0.85% from IDX’s benchmark, IDX30, which gained a return of 13.75%.

Meanwhile, the mutual funds index 45 owned by PT Kresna Asset Management scored 12.12% return. In that period, return LQ-45 index has grown 13.15%. Mutual funds Nusadana LQ45 Tracker OSK also obtained return below its benchmark index which is equal to 12.44%.

Vice President and Head of Investment CIMB-Principal Fadlul Imamsyah sees the yield spread of mutual fund products with the performance of LQ30 is relatively safe. Since, CIMB had pegged the maximum tracking error at 2%. (t03/msw)

 

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Golden Agri to spend $550m for expansion

The world’s second-largest oil palm plantation firm Golden Agri-Resources Ltd. (GAR), part of the Sinar Mas Group conglomerate, is earmarking US$550 million for capital expenditure (capex) this year as it plans to acquire more concession areas and increase the capacity of its refineries.

About $200 million of the capex figure would be allocated for its upstream business, while the rest would be channeled to its downstream business.

GAR plans to acquire between 35,000 and 40,000 hectares of new concession areas, mostly located in Kalimantan. By year-end, it hopes to have up to 503,400 hectares of plantation areas, including plasma, 8.6 percent higher than 2012.

In its downstream division, the firm is expanding the capacity of its North Sumatra refineries and expects to produce 2.6 million tons of refined products in 2013, up 30 percent from the previous year.

GAR, which is 49.9 percent owned by the family of tycoon Eka Tjipta Widjaja through investment company Flambo International Limited, operates in Indonesia and China. In Indonesia, it owns and runs oil palm plantations, mills, refineries and also produces palm oil derivative products, such as cooking oil, margarine and shortening. In China, it owns and operates crushing and refinery facilities, and manufactures refined edible oil and food products.

The firm is aiming to book between 5 percent and 10 percent growth in palm-product output by the end of 2013. Based on its 2012 unaudited financial report, its crude palm oil (CPO) production volume rose slightly by 9 percent to 2.36 million tons, while that of palm kernel climbed 14 percent to 554,000 tons.

GAR’s total revenues increased 1.7 percent to $6.05 billion. Indonesia accounted for $4.76 billion or 78.7 percent of the revenues, followed by China with 21.3 percent.

CPO remained the biggest contributor to the revenue figure at 44 percent. Unbranded refined palm products, branded products, soybean meal and soybean oil made up 29 percent, 8 percent, 8 percent and 4 percent of revenues, respectively.

Meanwhile, PT Sinar Mas Agro Resources and Technology, a GAR subsidiary, is planning to build a new oleo-chemical plant this year in an effort to diversify its business. According to Sinar Mas Group managing director G. Sulistiyanto, the $245 million plant will be located in Dumai, Riau province.

He said that Sinar Mas Agro had submitted a proposal to the government as it was looking to acquire incentives in the form of a tax holiday. “We are still waiting for feedback,” he added.

On Wednesday, Sinar Mas Agro, along with GAR, launched a forest conservation pilot project, which focuses on preserving high carbon stock (HCS) forests. Sinar Mas Agro president director Daud Dharsono said that the project was expected to help Indonesia, as the world’s largest palm oil producer, cope with the growing demands for HCS forest conservation.

 

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Iraq Offers Urea Fertilizer Project to Indonesia
BY NURUL FITRIANI

JAKARTA – Iraqi Government offers opportunity for Indonesia to build urea factory in the country. Hatta Rajasa, Coordinating Minister for Economic Affairs, said that the government prefers partnership in fertilizer raw materials procurement first.

He said that Iraq also invited PT Inti to modernize broadband networks in the country. (*)

Iraq Offers Urea Fertilizer Project to Indonesia - Indonesia Finance Today



Astra International Sells 103,501 Cars as of February
BY SOPIA SIREGAR

JAKARTA – Indonesia's PT Astra International Tbk (ASII) recorded 103,501 car sales for January to February period. Mulawarman, Public Relations Astra International, said sales grew 8.2 percent from 95,667 units in the same period last year.

Toyota brand contributed 71,274 units from the total sales, followed by Daihatsu with 26,409 units.

Astra International Sells 103,501 Cars as of February - Indonesia Finance Today

 

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Pertagas assigns $500m for Java gas pipeline
Linda Yulisman, The Jakarta Post, Jakarta | Business | Fri, March 15 2013, 12:28 PM

Pertamina Gas (Pertagas), a subsidiary of state-owned oil and gas firm Pertamina, will spend up to US$500 million this year to build a 267-kilometer gas pipeline from Gresik, East Java to Semarang, Central Java, a company executive says.

Gunung Sardjono Hadi, the president director of Pertagas, which transmits and distributes natural gas, said it had already secured all permits to build the pipeline and was waiting for the final investment decision from its shareholders to deliver natural gas from East Java to Central Java.

“We expect to begin construction by the middle of the year and can finalize construction by the end of 2014,” he told The Jakarta Post on the sidelines of an energy seminar on Wednesday in Jakarta.

The pipeline was designed with capacity of up to 500 million standard cubic feet per day (mmscfd) once it commences operations.

Earlier this year, Pertagas revealed its plan to invest $500 million to build 350 kilometers gas pipeline to connect Belawan Port in North Sumatra and Arun regasification plant in Aceh.

The pipeline, equipped with a capacity of 200 mmscfd, will transport natural gas shipped from Tangguh liquefied natural gas (LNG) plant in West Papua, totaling around 80 mmscfd, for state-owned utility firm PLN and the rest for the industry surrounding Medan in North Sumatra.

The pipeline project is scheduled to commence in April, while the completion is expected by the end of 2014. For the operation of the planned Gresik-Semarang pipeline, Pertagas expects to win an ongoing bid to secure natural gas from Madura Strait offshore block operated by Canada’s Husky Energy Inc., according to Gunung.

It is eyeing up to 70 mmscfd from several fields in the block that will produce a total output of 120 mmscfd.

“We hope to have an announcement on the utilization of the gas fields by the end of March,” Gunung said.

Apart from the Madura Strait block, the firm is also looking toward natural gas from other fields in East Java, including Terang Sirasun Batur field operated by Kangean Energy Indonesia, he added.

Based on estimates, East Java will have a natural gas surplus of between 130 mmscfd and 250 mmscfd from 2013 through 2015 due to an absence of pipelines to move the energy source from Gresik to Semarang.

Pertagas’ pipeline is designated as “open access”, meaning any party can utilize it to deliver gas by paying usage fees as long as the capacity of the pipeline is still sufficient.

The Gresik-Semarang pipeline is a part of the Trans Java pipeline project that will stretch more than 600 kilometers, connecting Bekasi and Cirebon in West Java, Cirebon and Semarang, and Semarang and Gresik.

Once the Trans Java pipelines come into operation, it will help supply the industry, particularly on Java island, currently the home of the majority of industrial activities, industry officials have said.

Indonesia is the world’s third-biggest liquefied natural gas exporter after Qatar and Malaysia. However, a lack of distribution infrastructure greatly hinders the industry from benefiting from the country’s abundant gas supply.

Pertagas assigns $500m for Java gas pipeline | The Jakarta Post

 

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Brio Sales Brisk for Honda in Indonesia
Jakarta Globe | March 15, 2013

Honda in Indonesia International Motor Show 2012

Honda’s Brio hatchback subcompact has seen strong demand from Indonesian consumers since its introduction in August.

Total accumulative sales of the car reached nearly 10,000 units as of February, according to a statement by Jonfis Fandy, marketing director at Honda Prospect Motor. HPM is the sole distributor of Honda cars in Indonesia.

That represents more than 12 percent of Honda’s total share in the first two months of 2012, which stood at 15,275 units.

“Honda Brio [sales] are expected to surpass the 10,000 milestone in March. This is a great achievement,” Jonfis said.

Honda controls roughly 7.6 percent of the car market in Indonesia.

The Brio retails at around Rp 160 million ($16,500) to Rp 180 million, cheaper than the Honda Jazz hatchback, usually priced above Rp 200 million.

Jonfis said other products aside from the Brio also performed well.

Sales leaders include the Honda Jazz, Honda CR-V (sports utility vehicle), Honda City (sedan) and Honda Civic (sedan).

The Honda Jazz, which just had a facelift, saw a 28 percent monthly rise in sales to nearly 3,000 units as of end of February.

Car sales in Indonesia as a whole jumped 22.76 percent in January and February of this year, data from the Indonesia Automotive Industry Association (Gaikindo) showed.

Sales in January alone surged by more than 25 percent.

Indonesians bought 199,984 units of cars in the first two months of this year, up from 162,913 for the same period in 2011.

 

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Toyota Officiates Kerawang II Factory
15 MAR 2013 | BY EKARINA

Toyota Karawang Plant

KARAWANG – PT Toyota Motor Corporation (TMC) officiated the second factory in Karawang under PT Toyota Motor Manufacturing. Masahiro Nonami, President Director of Toyota Manufacturing, said initial capacity will be around 70,000 units per year, and will gradually increased to 120,000 units by early 2014.

He said total production capacity from factory I and II will reach 250,000 units per year by 2014. (*)

Toyota Officiates Kerawang II Factory - Indonesia Finance Today

 

[Reashot Xigwin]

Indonesia aims for universal health care by 2019


Photo: Alisa Tang/IRIN

Who picks up his bill?

JAKARTA, 15 March 2013 (IRIN) - A new healthcare-for-all programme in Indonesia’s capital, Jakarta, is under scrutiny following the recent death of two patients who allegedly received inadequate hospital care. National officials are monitoring the city’s response and experience ahead of the rollout of a government scheme to provide universal health care by 2019.

Last November the Indonesian capital’s governor, Joko Widodo, launched a healthcare programme that sought to cover all 10 million of Jakarta’s residents by 2014.

Under the initial phase of the programme, called Kartu Jakarta Sehat (Healthy Jakarta Card), 4.7 million people will be eligible for affordable health care in third class hospital wards (the cheapest ward where one room is occupied by three or more patients) in more than 90 of the city’s 147 hospitals this year, said Dien Emawati, head of Jakarta Health Department. The governor has said he wants all public hospitals to join the programme.

“Kartu Jakarta Sehat has some shortcomings, but it’s working and it’s progress compared to the previous programmes,” Emawati told IRIN.

Unlike the healthcare scheme under the previous governor, residents are not required to prove their income status, a lengthy process that often involved bribing officials.

Automatic eligibility has resulted in an increase of up to 70 percent in the number of people treated, Emawati said.

“Some hospitals have been overwhelmed by patients, partly because the programme has prompted underequipped and understaffed `puskesmas’ [government-run health clinics] to refer patients directly to hospitals [rather than attempting treatment first],” she said.

When local media reported the death of a premature baby in February after she was denied neonatal intensive care by at least eight hospitals, the public’s attention - and fury - turned on the new healthcare programme.

The Health Ministry said the baby was not refused treatment because of the family’s inability to pay, but rather because a hospital’s neonatal intensive care unit was full, or it did not have such a facility.

In the latest case, a 14-year-old girl died from an intestinal infection on 9 March after hospitals reportedly denied treatment.

Government response

In response to the rising number of patients as well as complaints about inadequate treatment, Emawati said her office is working with the University of Indonesia’s medical school and Cipto Mangunkusomo national hospital in Jakarta to improve health workers’ skills.

The Jakarta administration also seeks to strengthen the role of hospital medical committees to ensure appropriate treatment. The medical committee includes doctors appointed by the Jakarta government to oversee implementation of the citywide health care programme and audit the appropriateness of treatment (including drug dispensation).

Following local protests over the baby’s death, the administration set up “Hotline 119” for people to get information on the availability of class III rooms in hospitals across the capital.

From most to least expensive, the hospital wards are: VVIP, VIP, first class, second class and third class. By law, at least 25 percent of a hospital’s patient wards must be third class.

Governor Widodo has urged hospitals to convert some of their second class wards into third class ones to cope with rising demand for care among the poor, and warned of sanctions if patients were turned away based on income.

When the government rolls out universal health coverage nationwide in 2014, it may face similar problems as Jakarta does now, said Kartono Mohamad, a health care reform proponent and former chairman of the Indonesian Medical Association.

“In the first few months demand will be high [and] hospitals will struggle to cope,” Mohamad said. “Even people with minor complaints will seek treatment. These kinds of things will need to be anticipated, both in terms of infrastructure and resources.”

“Trade-offs are inevitable” in trying to reach efficiency, equity, and sustainability in health care access, concluded research on nine low and middle-income countries’ experiences with national insurance schemes.

Health insurance for all

Indonesia is seeking to provide all Indonesians with health insurance by 2019, as mandated by a 2004 law.

The government has set up an administering body called BPJS Kesehatan, which will begin operating in January 2014 with an initial investment of US$2.6 billion to harmonize existing national and regional health schemes launched in recent years to help the poorest access health care.

Mohamad said in the early phase of its operation, BPJS will take over the role of one of the state insurance companies currently covering 27 million residents, which means it will serve civil servants and salaried employees who already have insurance policies with that company. Both state insurance companies will eventually be disbanded, and their assets taken over by BPJS.

Currently about 60 percent of Indonesia’s 240 million people are covered by health insurance.

A government health waiver for the poor, Jamkesmas, covers 76 million people while state-run insurance companies cover another 45 million.

There is still disagreement within the government about the amount of premiums to be paid to BPJS. The Health Ministry proposes 22,000 rupiah ($2.30) per person monthly, with the government covering this for the poorest, while the People’s Welfare Ministry is seeking a lower premium of $1.50.

For universal health care to work nationwide, Indonesia also needs to regulate the pharmaceutical sector, said Mohamad, adding that “invisible costs” like kickbacks to hospital staff and officials have boosted drug prices multi-fold.

“The absence of a drug policy has prompted pharmaceutical companies to compete to persuade hospitals and doctors to prescribe their products. The practice leads to doctors being bought and as a result, drugs have become increasingly expensive,” he said.

Indonesia has 25 health workers per 10,000 residents on average - which meets the World Health Organization’s minimum of 23 workers per 10,000 residents - but most of this resource is in densely-populated urban centres, leaving parts of the archipelago completely uncovered.

“The idea of universal health coverage as mandated by the law is still far off,” Mohamad concluded.

ap/pt/cb

IRIN Asia | Indonesia aims for universal health care by 2019 | Indonesia | Health & Nutrition

I cried a little when I read the news.

 

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Indonesia Executes First Convict in Four Years
Camelia Pasandaran & SP/Erwin Sihombing | March 15, 2013

A Nigerian drug dealer was executed by firing squad on Thursday night in Indonesia's first execution of a convicted felon since 2008.

“Last night, Adami Wilson was executed, [he was] a drug dealer,” Indonesia's Attorney General Basrief Arief said on Friday. “The [execution] place was around the Thousand Islands.”

Basrief said that the Attorney General's Office (AGO) planned to execute nine more convicts this year.

Despite Indonesian courts sentencing 113 people to death in 2012, the government has mulled over commuting death sentences as part of a wider push to move away from capital punishment. Three Islamic militants involved in the 2002 Bali bombings were the last convicts to be executed in Indonesia in November 2008.

Adami, 48, was sentenced to death in 2004 for smuggling 1 kilogram of heroin by the Tangerang District Court, according to reports in Majalah Detik. He filed an appeal the same year, but it was declined.

In prison, Adami ran a drug distribution ring in an attempt to earn enough money to buy his way off death row, he told the magazine. He had heard from other convicts that inmates could bribe their way to a life sentence for Rp 1 billion ($103,050).

In September of last year, Adami was temporarily admitted to a nearby hospital for treatment. The National Narcotics Agency (BNN) re-arrested Adami after they caught one of his couriers carrying drugs.

Adami was executed Thursday night as the first of 10 scheduled executions to be held this year.

His embassy told the Jakarta Globe that police failed to inform them of the execution of a Nigerian national.

Yakubu Adamu, the first secretary of the Nigerian embassy in Indonesia, declined to offer additional details about their interaction with Adami.

“We have protocols to follow and you will have to talk directly to the ambassador,” Yakubu said, adding that he still wanted to find out more information about the case before speaking with the press.

Bilateral cooperation

Indonesia and Nigeria signed a memorandum of understanding to fight drug trafficking between the two countries just last month, when President Susilo Bambang Yudhoyono and Foreign Minister Marty Natalegawa visited the country to meet their counterparts — Nigerian President Goodluck Jonathan and Foreign Minister Joy Ogwu.

Insp. Gen. Anang Iskandar, head of the BNN, who was part of the president's entourage on the two-day visit in February, had said the cooperation included an information exchange on drug smuggling activities from Nigeria to Indonesia.

“This MoU between Indonesia and Nigeria is very important. As we know, there are many Nigerians that [are] involved in the drug networks in Indonesia,” said Anang, as quoted by PresidenSBY.info.

Anang, who said at least 13 Nigerians had been sentenced to death in Indonesia, explained that the Nigerian government had made no special request to reduce sentences or to extradite their citizens who had been arrested for drug-related crimes in Indonesia.

But after their visit on Feb. 2, Nigeria's presidential spokesman, Reuben Abati, tweeted several posts contradicting Anang's comment.

“Pres. Jonathan requested for stay of execution of Nigerians on death row in Indonesia while both explore agreement on exchange of prisoners,” Reuben tweeted on his account @abati1990.

“Both Presidents pledged to work together towards attaining a more balanced and mutually beneficial relatnship btw (sic) Nigeria and Indonesia.”

Human rights

A human rights organization told the Jakarta Globe that Adami's execution would not deter other drug-related offenders.

“We need to uphold human rights instead of executing people who took the opportunity from the bad system that allows drug distribution in the country, as well as inside the jail,” said Bhatara Ibnu Reza, the operational director of human rights group Imparsial.

“No pro-death sentence arguments can prove that the death penalty can successfully uphold the law, or have a deterrent effect.”

Bhatara said that the death sentence as ultimate punishment would not result in a moral society, but would instead make the society embrace violence as the only punishment.

“We will become a draconian society,” he said. “Indonesia surely will be condemned by other countries for this.”

In a press conference last year, Marty said the policy of commuting a death sentence for a drug crime is not something that happens just in Indonesia.

"This policy is also practiced in other countries, and Indonesians are among the beneficiaries of such clemency."

Last year, Yudhoyono spoke out against the death penalty, saying that Indonesia was moving against a global push to end capital punishment.

“We must not wrongly punish people,” Yudhoyono said after commuting a death sentence for a convicted drug trafficker to life in prison in October. The move later garnered criticism after the convict, Meirika Franola, was caught allegedly running a drug ring behind bars. Yudhoyono said later that he would review the sentence.

According to data from the AGO, there are 20 inmates on death row in Indonesia whose sentences are final, meaning that all efforts to appeal or seek remission have been denied.

 

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European, US Carmakers Race Japanese in Indonesia
Olivia Rondonuwu | March 17, 2013

This photo taken on March 9, 2013 shows Ferrari luxury sports cars displayed in the lobby of an upscale commercial center in the Indonesian capital of Jakarta. Western companies experiencing a slowdown in sales close to home are turning to Southeast Asia\'s biggest economy, looking to take advantage of both a burgeoning middle class willing to spend and an elite looking for high-end toys. Indonesians are buying new motors in big numbers, with 288 new cars hitting Jakarta\'s roads every day, worsening its already crippling traffic and polluted air. (AFP Photo/Romeo Gacad)

Bentleys and McLarens could become a more common sight alongside three-wheeled pedicabs and Japanese cars on Jakarta’s roads, with European auto giants making a push into the Indonesian market.

Western companies experiencing a slowdown in sales close to home are turning to Southeast Asia’s biggest economy, looking to take advantage of both a burgeoning middle class willing to spend and an elite looking for high-end toys.

In 2012, Indonesia’s car market grew 25 percent to a record 1.1 million units, IHS automotive analyst Jessada Thongpak said.

But Indonesia, with its 240 million inhabitants, “will emerge as the largest market in the region from 2014,” Thongpak told AFP.

Indonesians are buying new motors in big numbers, with 288 new cars hitting Jakarta’s roads every day.

However, Western car makers complain they are losing out to Japanese firms owing to Indonesia’s high tariffs on imported sedans and luxury cars and the absence of a free trade agreement. Japanese firms have the benefit of a trade agreement and no levies. Added to this is the fact European makers are subject to higher safety standards than their Japanese competitors.

The EU has been in talks with Jakarta on a deal to open its market and allow European firms to compete on a level playing field.

That comes as new-car registrations in Europe dropped 8.7 percent on-year in January to the lowest level for that month since 1990, according to the European Automobile Manufacturers’ Association.

But progress is slow and brands such as Mercedes, BMW and Chevrolet, are upping assembly and output Indonesia to get around the taxes — cars face a 40 percent tax if imported as finished products but just 10-15 percent if put together in the country.

“All global brands are already in Indonesia and they are heavily investing and expanding their production capacity,” Thongpak said.

Germany’s Volkswagen is planning to build an assembly plant in the next four years, and Chevrolet has revived its dormant plant outside Jakarta to assemble 40,000 cars a year, including its new multi-purpose vehicle (MPV) Spin which was designed for the Indonesian market.

But Japanese brands are still the favorites, with firms such as Toyota and Nissan popular thanks to the development of cars that can carry families while also being strong enough to negotiate tough driving conditions.

Taking a spin around the busy Hotel Indonesia roundabout in the heart of Jakarta, every other car is a Toyota or Daihatsu, with those brands having more than 50 percent of Indonesia’s car market.

Taking Mitsubishi and Nissan into account, Japanese brands supply around 95 percent of the Indonesian market.

Toyota’s success began in the 1970s, when it produced the Kijang, a family car and favorite in Indonesia. It scored another success in 2003 when it began producing the Avanza and Daihatsu Xenia, MPVs for under $20,000.

And European carmakers are looking to build on their share of the high-end market, with BMW and Volkswagen introducing more expensive motors for those who need not worry about the huge tariffs.

Expensive European cars, usually considered those that cost upwards of $55,000.

Luxury and sports cars are becoming a more common sight, particularly in the capital, as Indonesia’s elite grows in millions in the recent years.

“I live in Jakarta and it’s fascinating. In Brussels, you can drive around for many kilometers, and you won’t see any Ferraris,” trade first secretary for the EU in Indonesia Walter van Hattum said.

“But in Jakarta, you have Rolls-Royces parked next to a shopping mall.”

British brand McLaren is preparing to launch its first showroom in a Jakarta shopping mall lobby in May beside Bentley and Jaguar showrooms.

McLaren Automotive Asia told AFP that it expects to each year sell 20 units of passenger cars with off-road price tags between $670,000 and $740,000 to add to the current 12 McLaren cars in the country.

“Key for us is the desire by Indonesia’s discerning elite to own a McLaren,” its Asia Pacific director Ian Gorsuch told AFP in an emailed statement.

“Obviously they will not be able to enjoy its full potential during the rush hour,” he admitted.

Agence France-Presse

 

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indonesia's Local Vendors Aggressively Market Tablets
18 MAR 2013 / BY CORRY ANESTIA

MITO Tablet

JAKARTA - PT Intech Surya Abadi, tablet computer vendor of Advan brand, and PT Maju Express Indonesia, handset vendor of Mito Mobile Indonesia, aggressively market tablets this year, aiming at increasing both brand’s market share in Indonesia.

Marketing Director of Intech Surya Tjandra Lianto said the company plans to focus on marketing 8-inch screen tablets this year. The company estimated last year the contribution from 8-inch tablets remained around 15 percent towards total marketed tablets.




R80 Aeroplane, The next N250 that will exceed ATR

IPTN N250, A 50 seats passenger propeller plane.

Jakarta - The eldest son of former Indonesian President BJ Habibie, Ilham Habibie has ambitions to continue his father's dream that produce the Regio Prop 80 (R80).


So how R80 is built, what its prospects? Do the same with the R80 aircraft N-250? Here's an interview with Ilham detikFinance when met at his office in Mega Kuningan, last weekend.

What's the difference Ghatotkacha N-250 from BJ Habibie Regio Prop 80 from a Ilham Habibie and his friends?

N-250 with the R80 is very different. The difference is in the size of them, R80 is much larger than the N-250, because the R80 has a capacity up to 80 seats while the N-250 just 50 seats.

The wing length is much larger and, because it was bigger so it needed a big wing to lift weights. Landing Gear is also much greater because the fuselage is bigger than the N-250.

Then cockpit technology, Aircraft flight control system is different, so you can imagine N-250 project began 15 years ago, of course the technology is now changing, just the computer how many times we change, how many times the phone has changed, certainly technology in aircraft N-250 and R80 would be much different.

But there are few similarities between the N-250 with R80, the wing is on top of the fuselage, still used as a propulsion propeller plane and if split fuselage curves or contours similar to the N-250.

You still maintaining engine aircraft with propellers. Some people are still hesitant to use aircraft that use propeller?

Yes we wear propellers. That's the truth, people have a lot of explanation. First aircraft use propellers or jet engines? the propeller, so the technology is more mature.

Many aircraft now use jet engine devoted to long distance.

Why did you choose the R80 still use a propeller?

Propeller plane designed for short distance. Why? with propellers fuel consumption will be much more efficient. Compare if airlines use jet planes for short distances.

In addition we see the extent of the state-Marauke Sabang, which is composed of many islands and the distance between one city to another if an aircraft is close enough. Mind you, at this time all airlines overburdened if the price of oil (Avtur) up, they dizzy, why? Because aviation fuel consumption by 50% over the cost of the entire operation.

Some countries are also currently implementing the rule, that the aircraft should be fuel efficient, because it concerns the emissions and the environment, many people says emissions above (plane) 8 times more harmful to the ozone layer than that of the mainland. Even the company is required production aircraft fuel-efficient aircraft as if they are not subject to penalties or fines could be very high tax.

And R80 is designed for distance less than 600 km or shorter distances. So that was certainly R80 will be very fuel efficient. So airlines like Citilink, Wingsair choose shorter routes using propeller engine aircraft such as the ATR.

You seem very ambitious to be able to produce the aircraft?

Ambitious? I am sure there are many people in Indonesia who have a spirit. Air and I was one of them.

Money? currently in the early stages needed U.S. $ 400 million dollars. But it's not just their own personal funds, there are some capital from some quarters but also personal, not corporate funds.

And someday, when the company or the R80 is evolving and require huge funds, we could sell its stake to the public.

Many people misunderstand, that we founded the company, PT Ragio Aviation Industries (RAI), which is a combination of his own company, PT Ilthabie Rekatama with PT Eagle Cap is a miik Erry Firmansyah who is a former Managing Director of the Indonesia Stock Exchange (BEI) will set up a rival aircraft manufacturer PT Dirgantara Indonesia (DI).

No, the true R80 production will use the PT DI, and later PT DI also will be one of the shareholders in PT RAI.

R80 later will enter which class? Rivaling Airbus, Boeing or ATR?

We should benchmark it on the ATR. Our reference market is ATR, they use the same propeller. But it will be going above R80 ATR, why? First our passenger capacity will be greater that 80 seats while only 70 seats maximum ATR, ATR has yet to be producing more than 70 seats.

Excess R80 more than the ATR, our machines faster but more fuel efficient, but not faster than the jet, because if the same pace with the jet means very wasteful of fuel.

R80 should be a benchmark in the ATR, but the price is much cheaper than the ATR. Cheaper it mandatory for our production in Indonesia, parts also made in Indonesia.

Will the R80 can compete with aircraft manufacturer in the world? Will selling well in the domestic market, wait for later in 2018.

R80 Yes our target production can have later in 2018.

 

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Indonesia's Economy to Grow 6.2% in 2013: World Bank
Randy Fabi | March 18, 2013




The World Bank on Monday cut its growth forecast for Indonesia to 6.2 percent this year, from its 6.3 percent estimate in December, citing an expected moderation in domestic investment growth.

"Investment will...continue to be a key source of growth but is expected to moderate somewhat from its rate of increase in 2012, as indicated by the slower pace of imported capital goods spending," the World Bank said in its quarterly economic outlook for Indonesia.

Growth in capital imports has been declining since early 2012, with capital imports down by 12.1 percent year-on-year in January 2013. Analysts say the fall in capital goods imports is partly due to the weakness in commodity prices, which has led to lower investment in mining and oil sectors.

Indonesia's resilience to the global economic slowdown has continued to attract foreign investment in recent years, but the country's first annual trade deficit in 2012 has put pressure on the rupiah currency.

As in much of the region, strong domestic demand has helped cushion the economy from the worst of the global downturn. The central bank has said it expects the current account to improve in the first quarter of this year, as exports are seen picking up with an economic recovery in major markets such as China and the United States.

Inflation in Southeast Asia's largest economy is expected at 5.5 percent this year and 5.2 percent in 2014, the World Bank projected.

The country's headline inflation hit a 20-month high of 5.3 percent in February, the statistics bureau said earlier this month, after restrictions on some food imports pushed prices higher.

"The outlook for CPI inflation is dominated by the risk of upside pressures from policy decisions relating to minimum wages, trade restrictions on foods, as well as the temporary effects of electricity tariff subsidy reform," the World Bank said.

Indonesia has managed to contain inflation by continuing to subsidize fuel costs, though that has meant heavy government spending on subsidies.

Many economists say the subsidies must be cut, but President Susilo Bambang Yudhoyono is reluctant to take this measure, especially with national elections due next year.

The World Bank estimated a fiscal deficit of 1.9 percent of Indonesia's GDP in 2013 due to higher projected fuel subsidy spending and potentially weaker revenue collection.

Reuters