Indonesia Economy Forum
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Indonesia has such potential in ship building, but I don't know why the capital investment is lacking in Indonesian ship building industry!!!
Indonesians should develop a massive, high-tech ship building industry...They can get training from Chinese/South Koreans...
Antara News : Indonesia`s shipbuilding industry still dependent on import for components
Article says that 65% of components needed to build ships in Indonesian shipyards are imported. Indonesians must invest heavily in manufacturing sector..so that they can become more competitive.
E.Asians produce like 80%+ of world's ships...while Europeans produce less than 1% ...Amazing!
E.Asia is really kicking ***...Indonesians should avail this opportunity...
Indonesians should develop a massive, high-tech ship building industry...They can get training from Chinese/South Koreans...
Antara News : Indonesia`s shipbuilding industry still dependent on import for components
Article says that 65% of components needed to build ships in Indonesian shipyards are imported. Indonesians must invest heavily in manufacturing sector..so that they can become more competitive.
E.Asians produce like 80%+ of world's ships...while Europeans produce less than 1% ...Amazing!
E.Asia is really kicking ***...Indonesians should avail this opportunity...
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Govt Projects GDP Per Capita to Reach $5,000 in 2014
By Agustiyanti & Ezra Sihite on 3:20 pm August 16, 2013.
Category News, Politics
Tags: Indonesia economy, Indonesia GDP, Susilo Bambang Yudhoyono SBY
In his annual national speech, President Susilo Bambang Yudhoyono said that Indonesia’s projected GDP per capita will likely reach a new milestone by the end of 2014 — with a commensurate reduction in the country’s poverty rate.
“In 2004, our GDP per capita was $1,177, and in 2009 it increased to $2,299,” he said. “The figure kept on rising to $3,592 last year. By the end of 2014, our GDP per capita will reach $5,000.”
“Our economy grows at a rate of 5 or 6 percent, business sectors grow and we can also decrease unemployment and poverty,” he said. “The state’s income will increase, and we can keep expenditure and the fiscal deficit below 3 percent.”
Official data show 11.37 percent of Indonesians lived in poverty as of March 2013. In 2004, the figure was 16.6. The unemployment figure fell from 9.89% in 2004 to 5.92% in February of this year.
Yudhoyono gave examples of successful government programs that had contributed to the nation’s prosperity. “The government has carried out many programs to support the people,” he said. “We have financial-assistance programs for the poor, senior citizens and people with disabilities. We have also carried out rice-assistance programs, family programs and operational assistance for schools.”
Arief Budimanta, member of Commission IX in the House of Representatives, said the increase in the price of subsidized fuel would, however, likely push more people into poverty.
“The current [poverty] rate is 11.3 percent and it may increase to 12 percent,” he said. “Inflation has been crazy these past few months.”
Arief said that the government usually only relied on National Program in Society Empowerment and the Direct Financial Assistance stimulus in fighting poverty, but infrastructure programs and small-middle economic programs had yet to create a significant impact.
Govt Projects GDP Per Capita to Reach $5,000 in 2014 - The Jakarta Globe
Balinese Hindus celebrate
Pagerwesi
Ni Komang Erviani, The Jakarta Post, Buleleng | Archipelago | Thu, August 15 2013, 10:17 AM
Sacred ritual: A woman splashes holy water on a man’s hands during the commemoration of Pagerwesi at Jagatnatha temple in Denpasar, Bali, on Wednesday. The celebration, observed every 210 days, honors the lord of the universe. JP/Agung Parameswara
Balinese Hindu devotees celebrated Pagerwesi on Wednesday by performing prayers in temples throughout the island.
In some parts of the island, Pagerwesi is a minor religious holiday, not on par with Galungan and Kuningan, during which the Balinese Hindus celebrate the victory of virtues over vices.
In Buleleng, the northern coastal region, however, Pagerwesi, is a major event, and the locals celebrate it in a lively way.
For many people in Buleleng, this has always been considered a time to show their love to their family. Hence, Buleleng natives who work in other cities in Bali return home to celebrate Pagerwesi with their families.
From early morning, people flocked to Kahyangan Tiga temples — the three temples dedicated to Brahma, Wisnu and Siwa — in their villages. Together with family, they also visited their ancestral temples.
For Buleleng natives, the celebration always ends with a prayer performed in cemeteries to pay homage to deceased relatives who have not yet been cremated. The living present an offering of rice, cakes and fruit to the deceased and at the end of the ritual they feast on the offering.
Pagerwesi — which means iron fence — is observed every 210 days to honor Sanghyang Pramesti Guru, or God as the “teacher” of the universe. Sanghyang Pramesti Guru is also referred to as Siwa and believed to be the manifestation of God who destroyed all evil in the world.
Hindu scholar Ketut Wiana said that the celebration of Pagerwesi symbolized worship of God as the true teacher. “Living without a teacher means living without guidance,” Wiana stated.
With economic development, and tourism in particular, the number of Balinese who have left their home villages and families to seek their fortunes in southern Bali has continuously grown. A local holiday, such as Pagerwesi, provides these Balinese with a precious opportunity to gather with their relatives.
Kadek Suartiningsih, a Buleleng resident who lives with her small family in Busungbiu village in Buleleng, took advantage of Pagerwesi to gather with her family, traveling to Singaraja with her husband and two children to be with her parents.
“Pagerwesi is a good opportunity to gather with all the family, as many of my sisters and brothers living in Denpasar also come home,” she said.
Wiana said that the merrier celebration of Pagerwesi in Buleleng was only part of tradition. “Every part of Bali has different traditions inherited from their ancestors, including Buleleng, which has always celebrated Pagerwesi more merrily than other regencies,” he said.
http://www.thejakartapost.com/news/2013/08/15/balinese-hindus-celebrate-pagerwesi.html
By Agustiyanti & Ezra Sihite on 3:20 pm August 16, 2013.
Category News, Politics
Tags: Indonesia economy, Indonesia GDP, Susilo Bambang Yudhoyono SBY
In his annual national speech, President Susilo Bambang Yudhoyono said that Indonesia’s projected GDP per capita will likely reach a new milestone by the end of 2014 — with a commensurate reduction in the country’s poverty rate.
“In 2004, our GDP per capita was $1,177, and in 2009 it increased to $2,299,” he said. “The figure kept on rising to $3,592 last year. By the end of 2014, our GDP per capita will reach $5,000.”
“Our economy grows at a rate of 5 or 6 percent, business sectors grow and we can also decrease unemployment and poverty,” he said. “The state’s income will increase, and we can keep expenditure and the fiscal deficit below 3 percent.”
Official data show 11.37 percent of Indonesians lived in poverty as of March 2013. In 2004, the figure was 16.6. The unemployment figure fell from 9.89% in 2004 to 5.92% in February of this year.
Yudhoyono gave examples of successful government programs that had contributed to the nation’s prosperity. “The government has carried out many programs to support the people,” he said. “We have financial-assistance programs for the poor, senior citizens and people with disabilities. We have also carried out rice-assistance programs, family programs and operational assistance for schools.”
Arief Budimanta, member of Commission IX in the House of Representatives, said the increase in the price of subsidized fuel would, however, likely push more people into poverty.
“The current [poverty] rate is 11.3 percent and it may increase to 12 percent,” he said. “Inflation has been crazy these past few months.”
Arief said that the government usually only relied on National Program in Society Empowerment and the Direct Financial Assistance stimulus in fighting poverty, but infrastructure programs and small-middle economic programs had yet to create a significant impact.
Govt Projects GDP Per Capita to Reach $5,000 in 2014 - The Jakarta Globe
Balinese Hindus celebrate
Pagerwesi
Ni Komang Erviani, The Jakarta Post, Buleleng | Archipelago | Thu, August 15 2013, 10:17 AM
Sacred ritual: A woman splashes holy water on a man’s hands during the commemoration of Pagerwesi at Jagatnatha temple in Denpasar, Bali, on Wednesday. The celebration, observed every 210 days, honors the lord of the universe. JP/Agung Parameswara
Balinese Hindu devotees celebrated Pagerwesi on Wednesday by performing prayers in temples throughout the island.
In some parts of the island, Pagerwesi is a minor religious holiday, not on par with Galungan and Kuningan, during which the Balinese Hindus celebrate the victory of virtues over vices.
In Buleleng, the northern coastal region, however, Pagerwesi, is a major event, and the locals celebrate it in a lively way.
For many people in Buleleng, this has always been considered a time to show their love to their family. Hence, Buleleng natives who work in other cities in Bali return home to celebrate Pagerwesi with their families.
From early morning, people flocked to Kahyangan Tiga temples — the three temples dedicated to Brahma, Wisnu and Siwa — in their villages. Together with family, they also visited their ancestral temples.
For Buleleng natives, the celebration always ends with a prayer performed in cemeteries to pay homage to deceased relatives who have not yet been cremated. The living present an offering of rice, cakes and fruit to the deceased and at the end of the ritual they feast on the offering.
Pagerwesi — which means iron fence — is observed every 210 days to honor Sanghyang Pramesti Guru, or God as the “teacher” of the universe. Sanghyang Pramesti Guru is also referred to as Siwa and believed to be the manifestation of God who destroyed all evil in the world.
Hindu scholar Ketut Wiana said that the celebration of Pagerwesi symbolized worship of God as the true teacher. “Living without a teacher means living without guidance,” Wiana stated.
With economic development, and tourism in particular, the number of Balinese who have left their home villages and families to seek their fortunes in southern Bali has continuously grown. A local holiday, such as Pagerwesi, provides these Balinese with a precious opportunity to gather with their relatives.
Kadek Suartiningsih, a Buleleng resident who lives with her small family in Busungbiu village in Buleleng, took advantage of Pagerwesi to gather with her family, traveling to Singaraja with her husband and two children to be with her parents.
“Pagerwesi is a good opportunity to gather with all the family, as many of my sisters and brothers living in Denpasar also come home,” she said.
Wiana said that the merrier celebration of Pagerwesi in Buleleng was only part of tradition. “Every part of Bali has different traditions inherited from their ancestors, including Buleleng, which has always celebrated Pagerwesi more merrily than other regencies,” he said.
http://www.thejakartapost.com/news/2013/08/15/balinese-hindus-celebrate-pagerwesi.html
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our concern is on Manufacturing sector, lack of adequate infrastructure, rampant corruption in bureaucracy system, level of unemployment among total workforce age, and if Indonesia can correct this in next 10 years i think Indonesia will up itself into developed economy country like Singapore and Korean did twenty years ago
and this is the most challenging homeworks for the next president and his/her cabinet after 2014 election.
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Govt Targets 6.4% Growth for 2014 in Unveiling of State Budget
By Jakarta Globe on 2:20 pm August 17, 2013.
Category Business, Economy, News
Tags: Indonesia budget, Indonesia economic growth, Indonesia economy, Indonesian President Susilo Bambang Yudhoyono
President Susilo Bambang Yudhoyono set out the national budget on Friday and announced that the government has projected 6.4 percent economic growth for 2014.
“Through cautious monetary policies, we can maintain realistic economic expectations and rupiah exchange-rate stability,” Yudhoyono said in his annual budget address.
The government set growth at 6.8 percent economic growth in the 2013 State Budget, but revised expectations down to 6.3 percent in June’s revised budget.
Next year’s inflation target has been marked at 4.5 percent, while the rupiah is projected to trade at an average Rp 9,750 against the US dollar. The three-month treasury bill (SPN) was expected to stand at 5.5 percent.
Oil production, meanwhile, is expected to be 870,000 barrels per day, while natural gas extraction has been pitched at 1,240,000 barrels of oil equivalent per day.
“In the last couple of years, the production capacity of the two natural resources showed decline…” he said.
While conceding that 2013 had not been the easiest of years, Yudhoyono added that the global economic situation was predicted to be slightly improved in 2014.
Uncertainties around the paring back of US quantitative easing and fluctuating commodity prices would impact the Indonesian economy, the president said, but badly needed infrastructure projects and ongoing efforts to improve the country’s investment climate would continue to strengthen its ability to compete in the region.
“In 2014, our trade balance is expected to improve because there are improvements in our export commodities,” Yudhoyono said. “The government will also prioritize domestic industries to lessen our dependence on imports.”
The government plans a total of Rp 1,816.7 trillion in spending next year, up 5.2 percent from this year’s expenses. State revenue, meanwhile, is targeted at Rp 1,662.5 trillion, increasing by 10.7 percent. The deficit is projected at 1.49 percent of the GDP, down from this year’s projected figure of 2.38 percent.
The Ministry of Defense is slated to be the top recipient of state funds next year, with Rp 83.4 trillion allotted for the institution.
“We’ll allocate the funds to support the modernizing and growth of our main weaponry,” Yudhoyono said. “The aim is to accelerate the development of a minimum essential force.”
Overall, spending for the education sector is slated to increase by 7.5 percent to 20.4 percent of the state budget.
Next top spenders will be the Ministry of Public Works with Rp 74.9 trillion, the Ministry of Religious Affairs with Rp 49.6 trillion, the Ministry of Health with Rp 44.9 trillion, the National Police with Rp 41.5 trillion and the Ministry of Transportation with Rp 39.2 trillion.
“We also prioritize on spending for the National Police because it is as important as national defense,” Yudhoyono said. He added the funds would be used to reform the police force, enhance their capacity in outlying regions and increase the number of police officers nationwide.
“We want to increase the police to people ratio by 1 per 575, which will include recruiting 20,350 new National Police members in 2014,” Yudhoyono said.
Subsidy spending is planned at Rp 336.2 trillion, down 3.4 percent from this year.
The president added that the government would set aside Rp 17 trillion for legislative and presidential election expenses next year.
Govt Targets 6.4% Growth for 2014 in Unveiling of State Budget - The Jakarta Globe
Our government budget for next year is around 1,816.7 trillion rupiah or approximately 192 billion US dollar with 9600 Rupiah per US dollar exchange value for the next year forecast, not bad for an emerging nation
.
By Jakarta Globe on 2:20 pm August 17, 2013.
Category Business, Economy, News
Tags: Indonesia budget, Indonesia economic growth, Indonesia economy, Indonesian President Susilo Bambang Yudhoyono
President Susilo Bambang Yudhoyono set out the national budget on Friday and announced that the government has projected 6.4 percent economic growth for 2014.
“Through cautious monetary policies, we can maintain realistic economic expectations and rupiah exchange-rate stability,” Yudhoyono said in his annual budget address.
The government set growth at 6.8 percent economic growth in the 2013 State Budget, but revised expectations down to 6.3 percent in June’s revised budget.
Next year’s inflation target has been marked at 4.5 percent, while the rupiah is projected to trade at an average Rp 9,750 against the US dollar. The three-month treasury bill (SPN) was expected to stand at 5.5 percent.
Oil production, meanwhile, is expected to be 870,000 barrels per day, while natural gas extraction has been pitched at 1,240,000 barrels of oil equivalent per day.
“In the last couple of years, the production capacity of the two natural resources showed decline…” he said.
While conceding that 2013 had not been the easiest of years, Yudhoyono added that the global economic situation was predicted to be slightly improved in 2014.
Uncertainties around the paring back of US quantitative easing and fluctuating commodity prices would impact the Indonesian economy, the president said, but badly needed infrastructure projects and ongoing efforts to improve the country’s investment climate would continue to strengthen its ability to compete in the region.
“In 2014, our trade balance is expected to improve because there are improvements in our export commodities,” Yudhoyono said. “The government will also prioritize domestic industries to lessen our dependence on imports.”
The government plans a total of Rp 1,816.7 trillion in spending next year, up 5.2 percent from this year’s expenses. State revenue, meanwhile, is targeted at Rp 1,662.5 trillion, increasing by 10.7 percent. The deficit is projected at 1.49 percent of the GDP, down from this year’s projected figure of 2.38 percent.
The Ministry of Defense is slated to be the top recipient of state funds next year, with Rp 83.4 trillion allotted for the institution.
“We’ll allocate the funds to support the modernizing and growth of our main weaponry,” Yudhoyono said. “The aim is to accelerate the development of a minimum essential force.”
Overall, spending for the education sector is slated to increase by 7.5 percent to 20.4 percent of the state budget.
Next top spenders will be the Ministry of Public Works with Rp 74.9 trillion, the Ministry of Religious Affairs with Rp 49.6 trillion, the Ministry of Health with Rp 44.9 trillion, the National Police with Rp 41.5 trillion and the Ministry of Transportation with Rp 39.2 trillion.
“We also prioritize on spending for the National Police because it is as important as national defense,” Yudhoyono said. He added the funds would be used to reform the police force, enhance their capacity in outlying regions and increase the number of police officers nationwide.
“We want to increase the police to people ratio by 1 per 575, which will include recruiting 20,350 new National Police members in 2014,” Yudhoyono said.
Subsidy spending is planned at Rp 336.2 trillion, down 3.4 percent from this year.
The president added that the government would set aside Rp 17 trillion for legislative and presidential election expenses next year.
Govt Targets 6.4% Growth for 2014 in Unveiling of State Budget - The Jakarta Globe
Our government budget for next year is around 1,816.7 trillion rupiah or approximately 192 billion US dollar with 9600 Rupiah per US dollar exchange value for the next year forecast, not bad for an emerging nation
.
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SCG Eyes Expanding in Indonesia’s Paper Industry Through Expansion
By Tito Summa Siahaan on 10:20 am August 17, 2013.
Category Business, Corporate News
Tags: Indonesia pulp and paper industry, SCG, Thailand
Bangkok. SCG, the largest building material and petrochemical producer in Southeast Asia, is looking to expand its paper business in Indonesia, in a move that would fulfill the Thai firm’s core businesses in the region’s largest economy.
Kan Trakulhoon, SCG’s president and chief executive, said that the company is talking “diligently” with partners to acquire assets in the paper business in Indonesia.
“Why paper? Because we are the largest paper [products] manufacturer in Southeast Asia but have very little business in Indonesia,” Kan added. He refused to disclose more details but confirmed that the company will enter Indonesia’s paper market through acquisition.
Indonesia’s pulp and paper industry attracted Rp 8.86 trillion ($860 million) in foreign and domestic investment last year, according to the Investment Coordinating Board (BKPM). The industry had total value-added sales of Rp 46 trillion in 2010, according to Industry Ministry data.
SCG will compete against powerhouses like Asia Pulp & Paper, Indonesia’s largest paper producer, which is owned by Sinar Mas group.
SCG as a group has five lines of business: cement production, building material, paper and packaging, chemicals and distribution. In Indonesia it has acquired a stake in a building material producer and a distribution company and has made an investment to build a new cement plant.
SCG owns a 30 percent interest in Chandra Asri, the country’s largest petrochemical producer. It also controls Kokoh Inti Arebama, a distributor of building materials, and Keramika Indonesia Assosiasi, which manufactures building materials.
Last year, SCG invested a total of $532 million to build a lightweight concrete block manufacturing plant with a 6 million-square-meter capacity, for the construction of a cement plant with a 1.8 million-ton production capacity, and the purchase of a ready-mix concrete producer.
The cement plant will begin production in the second half of 2015.
Southeast Asia outside of Thailand made up 15 percent of SCG’s business portfolio. Of that amount Indonesia alone accounted for more than half. In Indonesia, SCG had revenue of Rp 2.1 trillion in the first six months, up 17 percent from a year earlier.
The Jakarta Globe was in Thailand as a guest for the celebration of SCG’s 100-year anniversary, which focused on the company’s attempts to increase the value of its business through innovation.
SCG Eyes Expanding in Indonesia
Pertamina Featured on Fortune Global 500 List in Indonesian First
By ID/Retno Ayuningtyas on 2:11 pm July 11, 2013.
Category Business, Corporate News
Tags: Indonesia oil and gas industry, Karen Agustiawan, Pertamina
The Pertamina logo is displayed on the side of a fuel truck at the company’s fuel depot in Jakarta on June 21, 2013. (Bloomberg/Dimas Ardian)
State-owned oil and gas company Pertamina became the first Indonesian company to be featured in Fortune Magazine’s annual Fortune Global 500 list.
“This is our pride, Indonesia’s pride,” Karen Agustiawan, president director of the company, said on Wednesday night during a break fast event in Jakarta.
The list, which ranks global corporations by revenue, ranked Pertamina 122 out of 500 companies after it booked $70.9 billion in revenue for 2012.
Additionally, according to its own data, the company made Rp 665.29 trillion ($66.53 billion) in income, Rp 25.9 trillion of which was profit.
Pertamina’s production in 2012 reached 196,066 barrels of oil per day and 1,539 million standard cubic feet of gas per day (MMSCFD).
Karen said that Pertamina is aiming to increase its output and become one of the top 100 oil and gas companies in the world.
In order to attain that goal, Pertamina needs to book an extra $200 billion worth of income, another $40 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) and produce another 2.2 million barrels of oil per year.
“Pertamina needs to target expansion. The projects we are managing must achieve quicker yields and better return rates,” Karen said.
From January to May this year, Pertamina booked an income of $28.79 billion, $2.09 billion of which was profit.
The number, however, represents a slight decline from the same period last year, during which the company made $29.73 billion in income and made a profit of $2.4 billion.
The income decrease can be attributed to a weakening rupiah. In 2012, the rupiah traded at Rp 9,572 per US dollar, while this year the currency is selling for Rp 9,714 per dollar.
Also, Indonesia’s crude price (ICP) was $120 per barrel last year, while from January to May 2013, oil was selling at $106 per barrel.
Karen is optimistic, though, that this year’s income and net profit goals can be achieved since the company is expanding and acquiring oil and gas blocks overseas.
“We have acquired many blocks this year, which could boost our production by more than 20,000 barrels per day,” she said.
Oil giant Royal Dutch Shell, meanwhile, ranked number one on the list, with $481.7 billion in revenue.
http://www.thejakartaglobe.com/business/pertamina-featured-on-fortune-global-500-list-in-indonesian-first/
By Tito Summa Siahaan on 10:20 am August 17, 2013.
Category Business, Corporate News
Tags: Indonesia pulp and paper industry, SCG, Thailand
Bangkok. SCG, the largest building material and petrochemical producer in Southeast Asia, is looking to expand its paper business in Indonesia, in a move that would fulfill the Thai firm’s core businesses in the region’s largest economy.
Kan Trakulhoon, SCG’s president and chief executive, said that the company is talking “diligently” with partners to acquire assets in the paper business in Indonesia.
“Why paper? Because we are the largest paper [products] manufacturer in Southeast Asia but have very little business in Indonesia,” Kan added. He refused to disclose more details but confirmed that the company will enter Indonesia’s paper market through acquisition.
Indonesia’s pulp and paper industry attracted Rp 8.86 trillion ($860 million) in foreign and domestic investment last year, according to the Investment Coordinating Board (BKPM). The industry had total value-added sales of Rp 46 trillion in 2010, according to Industry Ministry data.
SCG will compete against powerhouses like Asia Pulp & Paper, Indonesia’s largest paper producer, which is owned by Sinar Mas group.
SCG as a group has five lines of business: cement production, building material, paper and packaging, chemicals and distribution. In Indonesia it has acquired a stake in a building material producer and a distribution company and has made an investment to build a new cement plant.
SCG owns a 30 percent interest in Chandra Asri, the country’s largest petrochemical producer. It also controls Kokoh Inti Arebama, a distributor of building materials, and Keramika Indonesia Assosiasi, which manufactures building materials.
Last year, SCG invested a total of $532 million to build a lightweight concrete block manufacturing plant with a 6 million-square-meter capacity, for the construction of a cement plant with a 1.8 million-ton production capacity, and the purchase of a ready-mix concrete producer.
The cement plant will begin production in the second half of 2015.
Southeast Asia outside of Thailand made up 15 percent of SCG’s business portfolio. Of that amount Indonesia alone accounted for more than half. In Indonesia, SCG had revenue of Rp 2.1 trillion in the first six months, up 17 percent from a year earlier.
The Jakarta Globe was in Thailand as a guest for the celebration of SCG’s 100-year anniversary, which focused on the company’s attempts to increase the value of its business through innovation.
SCG Eyes Expanding in Indonesia
Pertamina Featured on Fortune Global 500 List in Indonesian First
By ID/Retno Ayuningtyas on 2:11 pm July 11, 2013.
Category Business, Corporate News
Tags: Indonesia oil and gas industry, Karen Agustiawan, Pertamina
The Pertamina logo is displayed on the side of a fuel truck at the company’s fuel depot in Jakarta on June 21, 2013. (Bloomberg/Dimas Ardian)
State-owned oil and gas company Pertamina became the first Indonesian company to be featured in Fortune Magazine’s annual Fortune Global 500 list.
“This is our pride, Indonesia’s pride,” Karen Agustiawan, president director of the company, said on Wednesday night during a break fast event in Jakarta.
The list, which ranks global corporations by revenue, ranked Pertamina 122 out of 500 companies after it booked $70.9 billion in revenue for 2012.
Additionally, according to its own data, the company made Rp 665.29 trillion ($66.53 billion) in income, Rp 25.9 trillion of which was profit.
Pertamina’s production in 2012 reached 196,066 barrels of oil per day and 1,539 million standard cubic feet of gas per day (MMSCFD).
Karen said that Pertamina is aiming to increase its output and become one of the top 100 oil and gas companies in the world.
In order to attain that goal, Pertamina needs to book an extra $200 billion worth of income, another $40 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) and produce another 2.2 million barrels of oil per year.
“Pertamina needs to target expansion. The projects we are managing must achieve quicker yields and better return rates,” Karen said.
From January to May this year, Pertamina booked an income of $28.79 billion, $2.09 billion of which was profit.
The number, however, represents a slight decline from the same period last year, during which the company made $29.73 billion in income and made a profit of $2.4 billion.
The income decrease can be attributed to a weakening rupiah. In 2012, the rupiah traded at Rp 9,572 per US dollar, while this year the currency is selling for Rp 9,714 per dollar.
Also, Indonesia’s crude price (ICP) was $120 per barrel last year, while from January to May 2013, oil was selling at $106 per barrel.
Karen is optimistic, though, that this year’s income and net profit goals can be achieved since the company is expanding and acquiring oil and gas blocks overseas.
“We have acquired many blocks this year, which could boost our production by more than 20,000 barrels per day,” she said.
Oil giant Royal Dutch Shell, meanwhile, ranked number one on the list, with $481.7 billion in revenue.
http://www.thejakartaglobe.com/business/pertamina-featured-on-fortune-global-500-list-in-indonesian-first/
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We Can Produce Our Own Technology: Pertamina CEO
By Tito Summa Siahaan on 9:49 pm August 23, 2013.
Category Business
Tags: Indonesia energy industry, Pertamina
State energy company Pertamina is committed to enhancing its research capabilities and developing its own commercially viable new energy technologies, president director Karen Agustiawan says.
As keynote speaker at an annual lecture on Friday to mark the founding of the Indonesian Institute of Sciences (LIPI) in 1967, Karen said research and development would be crucial to the company’s achievement of its long-term objectives.
Karen also urged Indonesia’s scientific community to focus on the commercial applicability of their academic and applied- research activities.
The president director identified research and development as one of three pillars underpinning Pertamina’s aim of becoming a major global energy player by 2025.
She also said that Pertamina would eventually evolve from an oil-and-gas company to an energy enterprise harnessing technologies like coal-bed methane, geothermal, solar energy and biomass.
Karen said that in the past Pertamina had invested little in R&D because the connection between the technology studied and its contribution to the economy was too weak.
This made Indonesia a passive user or “follower” of technologies developed by foreign oil and gas players.
This trend is seen in Pertamina’s decision to partner with more technologically sophisticated companies to use enhanced recovery methods that allow additional oil to be extracted from aging fields.
Karen acknowledged that Pertamina lacked the type of research facilities that it needs.
She said individual Pertamina business units were doing research in a piecemeal way. “Pertamina activities in research and development aren’t properly integrated,” the corporate chief said.
Changes involving more aggressive research into both conventional and emerging energy tech are already afoot at Pertamina, which this week announced it had completed a feasibility study for a $6 billion oil refinery, which would be its seventh.
The refinery, which the company aims to open in 2018, is expected to boost Pertamina’s oil production capacity by 300,000 barrels per day from its current 1 million bpd.
“We realize that oil and gas is running out and therefore more resources will be channeled to alternative energy in order to sustain our business,” Karen said.
She also spoke of plans to establish a Pertamina university.
Asked how much Pertamina spent on R&D, Karen declined to answer but said the corporate sector should not artificially constrain R&D budgets.
“You can’t say how much research and development [is enough] because it’s such a big part of the business,” she said.
Technology Minister Gusti Muhammad Hatta told the LIPI anniversary celebration that only a small proportion of the technological innovations that Indonesia has produced on its own have been commercially applied, “but we intend to change [that].”
We Can Produce Our Own Technology: Pertamina CEO - The Jakarta Globe
21 Pilot School Graduates Join Garuda Ranks
By SP/Joy Hadozi on 8:15 pm August 23, 2013.
Category Business
Tags: Bali International Flight Academy (BIFA), Garuda Indonesia, Indonesia aviation industry
A Garuda Indonesia Airbus 330-200 plane. (AFP Photo/Adek Berry)
Twenty-one fresh graduates of Bali’s International Flight Academy (BIFA) will join the fleet of national flag carrier Garuda Indonesia, though they do not know what kind of aircraft they will be flying, one of the airline’s executives said on Friday.
All 21 pilots were trained for 16 months by Garuda to obtain their Private Pilot License, Commercial Pilot License and Instrument Rating certification. The graduation ceremony was held at the Garuda City Center Auditorium in Cengkareng, West Jakarta.
“This cooperation with BIFA is really helpful for Garuda Indonesia’s future expansion program, especially in meeting demand for pilot human resources. This is in line with Garuda’s fleet development plan,” said Novijanto Herupratomo, the airline’s director of operations.
Novijanto said that the 21 new pilots will undergo further training for six months to receive their “type rating,” which determines what kind of aircraft each one of them will fly.
BIFA chairman Robby Johan said that the training cooperation — which has been conducted for four years *— has produced more than 280 pilots for Garuda.
The first pilots who graduated under the program joined the airline’s fleet in March 2010.
Garuda maintains similar training partnerships with the Indonesian Flight Academy in Curug, West Java, as well as several other institutions.
Under Garuda’s expansion program, the airline will receive 24 new airplanes this year — four Boeing 777-300ERs, three Airbus A330s, 10 Boeing 737-800NGs and seven Bombardier CRJ1000 NextGens.
Under the program, named “Quantum Leap,” the airline is aiming at operating a total of 194 aircraft by 2015. Garuda Indonesia currently has 112 planes with an average of five years of age.
http://www.thejakartaglobe.com/business/%EF%BB%BF21-pilot-school-graduates-join-garuda-ranks/
By Tito Summa Siahaan on 9:49 pm August 23, 2013.
Category Business
Tags: Indonesia energy industry, Pertamina
State energy company Pertamina is committed to enhancing its research capabilities and developing its own commercially viable new energy technologies, president director Karen Agustiawan says.
As keynote speaker at an annual lecture on Friday to mark the founding of the Indonesian Institute of Sciences (LIPI) in 1967, Karen said research and development would be crucial to the company’s achievement of its long-term objectives.
Karen also urged Indonesia’s scientific community to focus on the commercial applicability of their academic and applied- research activities.
The president director identified research and development as one of three pillars underpinning Pertamina’s aim of becoming a major global energy player by 2025.
She also said that Pertamina would eventually evolve from an oil-and-gas company to an energy enterprise harnessing technologies like coal-bed methane, geothermal, solar energy and biomass.
Karen said that in the past Pertamina had invested little in R&D because the connection between the technology studied and its contribution to the economy was too weak.
This made Indonesia a passive user or “follower” of technologies developed by foreign oil and gas players.
This trend is seen in Pertamina’s decision to partner with more technologically sophisticated companies to use enhanced recovery methods that allow additional oil to be extracted from aging fields.
Karen acknowledged that Pertamina lacked the type of research facilities that it needs.
She said individual Pertamina business units were doing research in a piecemeal way. “Pertamina activities in research and development aren’t properly integrated,” the corporate chief said.
Changes involving more aggressive research into both conventional and emerging energy tech are already afoot at Pertamina, which this week announced it had completed a feasibility study for a $6 billion oil refinery, which would be its seventh.
The refinery, which the company aims to open in 2018, is expected to boost Pertamina’s oil production capacity by 300,000 barrels per day from its current 1 million bpd.
“We realize that oil and gas is running out and therefore more resources will be channeled to alternative energy in order to sustain our business,” Karen said.
She also spoke of plans to establish a Pertamina university.
Asked how much Pertamina spent on R&D, Karen declined to answer but said the corporate sector should not artificially constrain R&D budgets.
“You can’t say how much research and development [is enough] because it’s such a big part of the business,” she said.
Technology Minister Gusti Muhammad Hatta told the LIPI anniversary celebration that only a small proportion of the technological innovations that Indonesia has produced on its own have been commercially applied, “but we intend to change [that].”
We Can Produce Our Own Technology: Pertamina CEO - The Jakarta Globe
21 Pilot School Graduates Join Garuda Ranks
By SP/Joy Hadozi on 8:15 pm August 23, 2013.
Category Business
Tags: Bali International Flight Academy (BIFA), Garuda Indonesia, Indonesia aviation industry
A Garuda Indonesia Airbus 330-200 plane. (AFP Photo/Adek Berry)
Twenty-one fresh graduates of Bali’s International Flight Academy (BIFA) will join the fleet of national flag carrier Garuda Indonesia, though they do not know what kind of aircraft they will be flying, one of the airline’s executives said on Friday.
All 21 pilots were trained for 16 months by Garuda to obtain their Private Pilot License, Commercial Pilot License and Instrument Rating certification. The graduation ceremony was held at the Garuda City Center Auditorium in Cengkareng, West Jakarta.
“This cooperation with BIFA is really helpful for Garuda Indonesia’s future expansion program, especially in meeting demand for pilot human resources. This is in line with Garuda’s fleet development plan,” said Novijanto Herupratomo, the airline’s director of operations.
Novijanto said that the 21 new pilots will undergo further training for six months to receive their “type rating,” which determines what kind of aircraft each one of them will fly.
BIFA chairman Robby Johan said that the training cooperation — which has been conducted for four years *— has produced more than 280 pilots for Garuda.
The first pilots who graduated under the program joined the airline’s fleet in March 2010.
Garuda maintains similar training partnerships with the Indonesian Flight Academy in Curug, West Java, as well as several other institutions.
Under Garuda’s expansion program, the airline will receive 24 new airplanes this year — four Boeing 777-300ERs, three Airbus A330s, 10 Boeing 737-800NGs and seven Bombardier CRJ1000 NextGens.
Under the program, named “Quantum Leap,” the airline is aiming at operating a total of 194 aircraft by 2015. Garuda Indonesia currently has 112 planes with an average of five years of age.
http://www.thejakartaglobe.com/business/%EF%BB%BF21-pilot-school-graduates-join-garuda-ranks/
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World’s 2nd-Tallest Statue to Be Built in Bali
By Made Arya Kencana on 5:54 pm August 23, 2013.
Category Business, Corporate News, News
Tags: Alam Sutera Realty, Bali, Garuda Wisnu Kencana
Nyoman Nuarta’s Garuda, which will form part of the 126-meter-high statue. (Reuters Photo)
Denpasar. One of the country’s major property developers has revived a Bandung-based sculptor’s extraordinary ambition to construct a 126-meter-high showpiece that has been mothballed ever since the Asian financial crisis 15 years ago.
“This statue will not only be a major work of art, but also a symbol of pluralism,” said Jean Couteau, a French-born expert on Balinese culture.
Alam Sutera Realty has announced investment of Rp 450 billion ($41.9 million) to continue the development of Garuda Wisnu Kencana (GWK) arts park in Jimbaran, Bali. Two-thirds of that money will be used to resume construction of what will be the world’s second-tallest statue, two meters shorter than the 128-meter Vairocana Buddha in Lushan, China.
The statue will be made from more than 4,000 tons of copper and brass. It will feature a likeness of Hindu god Visnu riding on the back of a Garuda, the Indonesian national symbol.
Harjanto Tirtohadiguno, the president director of Garuda Adrimata Indonesia, which operates GWK cultural park, said that the company had made the investment mindful of Bali’s strength as a tourism destination.
“Rp 300 billion will be used to continue the establishment of the Garuda Wisnu Kencana statue, while the rest is for the supporting infrastructure around the park,” he said at the groundbreaking ceremony at GWK on Friday.
Nuarta, meanwhile, said that the new investment could mean a completed statue within three years.
“Some pieces of the statue will be delivered to Bali from Bandung,” he said. “It takes around 400 trucks.”
The head of the Garuda Wisnu Kencana foundation, Gde Ardika, said that the continuation of the project was an accurate reflection of Balinese heritage commensurate with the resort island’s cultural and commercial tone. Meanwhile, Jean Couteau, a French-born expert on Balinese culture, said that Nuarta’s vision would be viewed by many on the same level as the Eiffel Tower or Statue of Liberty, which is a third of the size of Nuarta’s design.
Alam Sutera acquired an 82 percent stake of Garuda Adhimatra Indonesia for Rp 738 billion in June last year.
Harjanto said the park had plenty of potential as a going concern, given the consistent expansion of Bali’s tourism industry.
To ensure the project did not run into financial difficulties, the park would not escape Indonesia’s love of the retail trail — plans to construct a mall at the park, one of Indonesia’s preeminent arts spaces, were underway, he said.
“We will make sure there is balance between cultural heritage and investment,” he said.
World's 2nd-Tallest Statue to Be Built in Bali - The Jakarta Globe
Indonesia Announces Moves to Reduce Imports, Lift Investment
By Reuters on 12:55 pm August 23, 2013.
Category Business, Economy, Featured
Tags: Finance Minister Chatib Basri, Hatta Rajasa, Indonesia economy
[Updated at 2:56 p.m. on Friday, August 23, 2013]
Indonesia announced on Friday a package of policy measures to reduce imports and boost investment in labor-intensive industries as it struggles to revive confidence and consumer spending in Southeast Asia’s largest economy.
The intervention by President Susilo Bambang Yudhoyono comes after a punishing week for emerging markets, with currencies from Brazil to India hit hard by fears of higher global borrowing costs and a reduction in cheap cash from the United States.
Indonesia has faced sell-offs in the rupiah, stocks and bonds after an unexpectedly large second-quarter current-account deficit triggered fears that the weak global economy will only further erode exports at a time when a surge in inflation is crimping domestic demand.
Chief Economic Minister Hatta Rajasa said the government will increase the import tax on luxury cars, seek to reduce oil imports and provide tax incentives for investment in agriculture and in metals industries. Details of some measures are expected to be provided by the central bank governor and finance minister later on Friday.
“The government and Bank Indonesia will take steps particularly in the financial sector and current account, and combined with structural policy, to maintain economic growth at a realistic level,” Hatta told reporters.
The government revised its GDP growth estimate for this year to 5.9-6.0 percent, down from 6.3 percent earlier, Finance Minister Chatib Basri said.
Growth in the second quarter of 5.8 percent was the slowest since 2010.
“We are taking every step to deal with the impact of global turbulence,” Chatib told reporters in the capital Jakarta.
“I have always said that bad times make good policies.”
Chua Hak Bin, economist at Bank of America Merrill Lynch in Singapore, said most of the measures looked more medium- and long-term, such as tax incentives and simplifying permits. “The near-term impact on the current-account deficit from these measures is less clear,” he said.
A slowdown in growth in China has squeezed demand and prices for Indonesia’s most lucrative exports — from coal to tin and palm oil, while foreign portfolio investment and foreign investment has slowed sharply on expectations the US Federal Reserve will taper its bond-buying program later this year.
The slide in exports is coinciding with strong domestic demand for imports, stoking a trade deficit. In the second quarter, Indonesia’s current-account deficit was a worse-than-expected $9.8 billion, among the highest on record.
That’s turned the rupiah into one of Asia’s worst performing currencies this year. In 2013, the rupiah has weakened about 11 percent against the dollar.
Indonesia Unveils Steps Aimed at Lifting Its Economy: The Highlights
Following are some of the measures announced by the government. The central bank made a separate statement on steps it is taking:
1. For containing the current account deficit and defending the rupiah:
boosting exports by giving additional tax deduction to labor intensive sectors that exports a minimum 30 percent of their total production
lowering oil and gas imports by increasing the mandatory position of biodiesel used in diesel
lifting luxury tax for imported completely built-up (CBU) cars from around 75 percent to 125-150 percent.
improving mineral exports by relaxing procedure related to quota
2. For maintaining export growth and purchasing power, and combating inflation:
additional deductions for labor intensive industry
relaxation in facility restrictions to bonded areas for domestic products
scrapping value-added tax for books
scrapping luxury tax for base products which have not been categorized as luxury goods.
Revising the trading system for beef and horticulture, from a quota system to a price mechanism
3. For increasing investment:
expediting and simplifying investment licensing
expediting revision of the “negative investment list” to make it more investor-friendly
expediting investment in crude palm oil, cocoa, rattan, metal, bauxite, nickel, and copper by giving tax holidays and tax allowances as incentives
Reuters/AFP
http://www.thejakartaglobe.com/business/indonesia-announces-moves-to-reduce-imports-lift-investment/
By Made Arya Kencana on 5:54 pm August 23, 2013.
Category Business, Corporate News, News
Tags: Alam Sutera Realty, Bali, Garuda Wisnu Kencana
Nyoman Nuarta’s Garuda, which will form part of the 126-meter-high statue. (Reuters Photo)
Denpasar. One of the country’s major property developers has revived a Bandung-based sculptor’s extraordinary ambition to construct a 126-meter-high showpiece that has been mothballed ever since the Asian financial crisis 15 years ago.
“This statue will not only be a major work of art, but also a symbol of pluralism,” said Jean Couteau, a French-born expert on Balinese culture.
Alam Sutera Realty has announced investment of Rp 450 billion ($41.9 million) to continue the development of Garuda Wisnu Kencana (GWK) arts park in Jimbaran, Bali. Two-thirds of that money will be used to resume construction of what will be the world’s second-tallest statue, two meters shorter than the 128-meter Vairocana Buddha in Lushan, China.
The statue will be made from more than 4,000 tons of copper and brass. It will feature a likeness of Hindu god Visnu riding on the back of a Garuda, the Indonesian national symbol.
Harjanto Tirtohadiguno, the president director of Garuda Adrimata Indonesia, which operates GWK cultural park, said that the company had made the investment mindful of Bali’s strength as a tourism destination.
“Rp 300 billion will be used to continue the establishment of the Garuda Wisnu Kencana statue, while the rest is for the supporting infrastructure around the park,” he said at the groundbreaking ceremony at GWK on Friday.
Nuarta, meanwhile, said that the new investment could mean a completed statue within three years.
“Some pieces of the statue will be delivered to Bali from Bandung,” he said. “It takes around 400 trucks.”
The head of the Garuda Wisnu Kencana foundation, Gde Ardika, said that the continuation of the project was an accurate reflection of Balinese heritage commensurate with the resort island’s cultural and commercial tone. Meanwhile, Jean Couteau, a French-born expert on Balinese culture, said that Nuarta’s vision would be viewed by many on the same level as the Eiffel Tower or Statue of Liberty, which is a third of the size of Nuarta’s design.
Alam Sutera acquired an 82 percent stake of Garuda Adhimatra Indonesia for Rp 738 billion in June last year.
Harjanto said the park had plenty of potential as a going concern, given the consistent expansion of Bali’s tourism industry.
To ensure the project did not run into financial difficulties, the park would not escape Indonesia’s love of the retail trail — plans to construct a mall at the park, one of Indonesia’s preeminent arts spaces, were underway, he said.
“We will make sure there is balance between cultural heritage and investment,” he said.
World's 2nd-Tallest Statue to Be Built in Bali - The Jakarta Globe
Indonesia Announces Moves to Reduce Imports, Lift Investment
By Reuters on 12:55 pm August 23, 2013.
Category Business, Economy, Featured
Tags: Finance Minister Chatib Basri, Hatta Rajasa, Indonesia economy
[Updated at 2:56 p.m. on Friday, August 23, 2013]
Indonesia announced on Friday a package of policy measures to reduce imports and boost investment in labor-intensive industries as it struggles to revive confidence and consumer spending in Southeast Asia’s largest economy.
The intervention by President Susilo Bambang Yudhoyono comes after a punishing week for emerging markets, with currencies from Brazil to India hit hard by fears of higher global borrowing costs and a reduction in cheap cash from the United States.
Indonesia has faced sell-offs in the rupiah, stocks and bonds after an unexpectedly large second-quarter current-account deficit triggered fears that the weak global economy will only further erode exports at a time when a surge in inflation is crimping domestic demand.
Chief Economic Minister Hatta Rajasa said the government will increase the import tax on luxury cars, seek to reduce oil imports and provide tax incentives for investment in agriculture and in metals industries. Details of some measures are expected to be provided by the central bank governor and finance minister later on Friday.
“The government and Bank Indonesia will take steps particularly in the financial sector and current account, and combined with structural policy, to maintain economic growth at a realistic level,” Hatta told reporters.
The government revised its GDP growth estimate for this year to 5.9-6.0 percent, down from 6.3 percent earlier, Finance Minister Chatib Basri said.
Growth in the second quarter of 5.8 percent was the slowest since 2010.
“We are taking every step to deal with the impact of global turbulence,” Chatib told reporters in the capital Jakarta.
“I have always said that bad times make good policies.”
Chua Hak Bin, economist at Bank of America Merrill Lynch in Singapore, said most of the measures looked more medium- and long-term, such as tax incentives and simplifying permits. “The near-term impact on the current-account deficit from these measures is less clear,” he said.
A slowdown in growth in China has squeezed demand and prices for Indonesia’s most lucrative exports — from coal to tin and palm oil, while foreign portfolio investment and foreign investment has slowed sharply on expectations the US Federal Reserve will taper its bond-buying program later this year.
The slide in exports is coinciding with strong domestic demand for imports, stoking a trade deficit. In the second quarter, Indonesia’s current-account deficit was a worse-than-expected $9.8 billion, among the highest on record.
That’s turned the rupiah into one of Asia’s worst performing currencies this year. In 2013, the rupiah has weakened about 11 percent against the dollar.
Indonesia Unveils Steps Aimed at Lifting Its Economy: The Highlights
Following are some of the measures announced by the government. The central bank made a separate statement on steps it is taking:
1. For containing the current account deficit and defending the rupiah:
boosting exports by giving additional tax deduction to labor intensive sectors that exports a minimum 30 percent of their total production
lowering oil and gas imports by increasing the mandatory position of biodiesel used in diesel
lifting luxury tax for imported completely built-up (CBU) cars from around 75 percent to 125-150 percent.
improving mineral exports by relaxing procedure related to quota
2. For maintaining export growth and purchasing power, and combating inflation:
additional deductions for labor intensive industry
relaxation in facility restrictions to bonded areas for domestic products
scrapping value-added tax for books
scrapping luxury tax for base products which have not been categorized as luxury goods.
Revising the trading system for beef and horticulture, from a quota system to a price mechanism
3. For increasing investment:
expediting and simplifying investment licensing
expediting revision of the “negative investment list” to make it more investor-friendly
expediting investment in crude palm oil, cocoa, rattan, metal, bauxite, nickel, and copper by giving tax holidays and tax allowances as incentives
Reuters/AFP
http://www.thejakartaglobe.com/business/indonesia-announces-moves-to-reduce-imports-lift-investment/
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Agung Podomoro Plans for Construction of Three Superblocks Outside Java
By Jakarta Globe on 10:04 am August 23, 2013.
Category Business, Corporate News
Tags: Agung Podomoro Land, Indonesia property industry
Indonesian property developer Agung Podomoro Land plans to invest some Rp 7 trillion ($645 million) in the construction of three superblock developments outside of Java.
The company will construct the Borneo Bay superblock on a five-hectare plot of reclaimed land in Balikpapan. The development will include two apartment towers totaling 1,100 apartments, a mall, a hotel and a beach club. The project is expected to cost Rp 1.5 trillion and is targeted for a 2017 completion.
In Medan, the developer will construct the Rp 4.5 trillion Podomoro City superblock on a 5.2-hectare tract of land. In Batam, the sprawling 37-hectare Orchard Park will construct 2,200 housing units and 140 apartments at a cost of Rp 1 trillion.
“Superblocks are usually developed in big cities such as Jakarta, but we’ve observed the market conditions in several other regions, which are fairly good,” Agung Podomoro Land vice president Indra Widjaja Antono told Bisnis.com.
Agung Podomoro Plans for Construction of Three Superblocks Outside Java - The Jakarta Globe
Indonesia Plans Policy Stimulus to Woo Investors And Help Rupiah
By Agus Suhana on 9:49 am August 23, 2013.
Category Business, Economy
Tags: fiscal stimulus, Indonesia economy, Indonesia rupiah currency
Indonesia plans policies that may include a fiscal stimulus and tax holidays for companies, as the country relies on investment to shore up a current account deficit and flagging economic growth.
President Susilo Bambang Yudhoyono may announce the stimulus and tax changes on Friday as part of a policy package to address the economic situation, Firmanzah, a senior official at the presidential office, told reporters in Jakarta on Thursday.
The government will also speed up a planned revision of limits on foreign investment in certain industries, Hatta Rajasa, the senior minister for the economy, said Thursday, without elaborating when it will be announced.
The government is seeking to take action as the rupiah fell 4 percent and the Jakarta stock market slid 8.7 percent in the first four days of this week, after worse-than-expected economic data. Indonesia’s current-account deficit widened to a record in the second quarter and foreign direct investment grew at its slowest pace in three years.
“Tax holidays might interest some more investors but that is not an overnight fix,” Keith Loveard, head of risk analysis at Concord Consulting in Jakarta, said in an e-mail on Thursday.
“Nothing has been done during the good times to fix the structural problems.”
Economic growth has held above four percent since Yudhoyono came to power in 2004, and he gave a favorable assessment of his record in a speech on Aug. 16.
Expansion has slowed for the last four quarters, dipping below 6 percent in the three months through June for the first time since 2010. It will be difficult to reach the government’s target of 6.3 percent this year, Yudhoyono told reporters on Aug. 21.
Share buybacks
Dealing with the current-account deficit and stabilizing the rupiah were two of the main priorities, Rajasa said Thursday, after a flurry of ministerial meetings to work on the package.
The government is coordinating its policies with the private sector and the monetary authority, he said.
The central bank raised interest rates by a total of 75 basis points in June and July to calm food and fuel price pressures that drove inflation to a four-year high in July.
The country needs aggressive monetary tightening such as raising the central bank rate and reducing liquidity, otherwise the selling pressure on the rupiah may continue, Irene Cheung, a strategist at Australia & New Zealand Banking Group in Singapore, said on Thursday in an interview.
Bank Indonesia needs to raise the policy rate by 50 basis points, Citigroup wrote in a note to clients on Aug. 21.
The government may introduce policies to reduce the balance of payment pressure, including incentives to boost exports and investment inflows, Euben Paracuelles, an economist at Nomura Holdings, in Singapore, said in an interview on Thursday.
It may also signal increased spending on projects, while regulations to allow state-owned companies to buy shares and help stabilize bonds are likely, he said.
The government has already given state-owned firms the go-ahead to buy back shares, and some firms are seeking shareholder approval to do so, Dahlan Iskan, the state enterprises minister, told Bloomberg TV Indonesia on Thursday, without giving details on firms.
“We’re studying whether we will buy back our shares,” Dwi Soetjipto, president director of state-owned cement maker Semen Indonesia, told reporters on Aug. 21.
“We still don’t understand why everyone is panicking on the financial situation.”
Additional reporting by Novrida Manurung, Eko Listiyorini and Yanping Li
Bloomberg
http://www.thejakartaglobe.com/business/indonesia-plans-policy-stimulus-to-woo-investors-and-help-rupiah/
By Jakarta Globe on 10:04 am August 23, 2013.
Category Business, Corporate News
Tags: Agung Podomoro Land, Indonesia property industry
Indonesian property developer Agung Podomoro Land plans to invest some Rp 7 trillion ($645 million) in the construction of three superblock developments outside of Java.
The company will construct the Borneo Bay superblock on a five-hectare plot of reclaimed land in Balikpapan. The development will include two apartment towers totaling 1,100 apartments, a mall, a hotel and a beach club. The project is expected to cost Rp 1.5 trillion and is targeted for a 2017 completion.
In Medan, the developer will construct the Rp 4.5 trillion Podomoro City superblock on a 5.2-hectare tract of land. In Batam, the sprawling 37-hectare Orchard Park will construct 2,200 housing units and 140 apartments at a cost of Rp 1 trillion.
“Superblocks are usually developed in big cities such as Jakarta, but we’ve observed the market conditions in several other regions, which are fairly good,” Agung Podomoro Land vice president Indra Widjaja Antono told Bisnis.com.
Agung Podomoro Plans for Construction of Three Superblocks Outside Java - The Jakarta Globe
Indonesia Plans Policy Stimulus to Woo Investors And Help Rupiah
By Agus Suhana on 9:49 am August 23, 2013.
Category Business, Economy
Tags: fiscal stimulus, Indonesia economy, Indonesia rupiah currency
Indonesia plans policies that may include a fiscal stimulus and tax holidays for companies, as the country relies on investment to shore up a current account deficit and flagging economic growth.
President Susilo Bambang Yudhoyono may announce the stimulus and tax changes on Friday as part of a policy package to address the economic situation, Firmanzah, a senior official at the presidential office, told reporters in Jakarta on Thursday.
The government will also speed up a planned revision of limits on foreign investment in certain industries, Hatta Rajasa, the senior minister for the economy, said Thursday, without elaborating when it will be announced.
The government is seeking to take action as the rupiah fell 4 percent and the Jakarta stock market slid 8.7 percent in the first four days of this week, after worse-than-expected economic data. Indonesia’s current-account deficit widened to a record in the second quarter and foreign direct investment grew at its slowest pace in three years.
“Tax holidays might interest some more investors but that is not an overnight fix,” Keith Loveard, head of risk analysis at Concord Consulting in Jakarta, said in an e-mail on Thursday.
“Nothing has been done during the good times to fix the structural problems.”
Economic growth has held above four percent since Yudhoyono came to power in 2004, and he gave a favorable assessment of his record in a speech on Aug. 16.
Expansion has slowed for the last four quarters, dipping below 6 percent in the three months through June for the first time since 2010. It will be difficult to reach the government’s target of 6.3 percent this year, Yudhoyono told reporters on Aug. 21.
Share buybacks
Dealing with the current-account deficit and stabilizing the rupiah were two of the main priorities, Rajasa said Thursday, after a flurry of ministerial meetings to work on the package.
The government is coordinating its policies with the private sector and the monetary authority, he said.
The central bank raised interest rates by a total of 75 basis points in June and July to calm food and fuel price pressures that drove inflation to a four-year high in July.
The country needs aggressive monetary tightening such as raising the central bank rate and reducing liquidity, otherwise the selling pressure on the rupiah may continue, Irene Cheung, a strategist at Australia & New Zealand Banking Group in Singapore, said on Thursday in an interview.
Bank Indonesia needs to raise the policy rate by 50 basis points, Citigroup wrote in a note to clients on Aug. 21.
The government may introduce policies to reduce the balance of payment pressure, including incentives to boost exports and investment inflows, Euben Paracuelles, an economist at Nomura Holdings, in Singapore, said in an interview on Thursday.
It may also signal increased spending on projects, while regulations to allow state-owned companies to buy shares and help stabilize bonds are likely, he said.
The government has already given state-owned firms the go-ahead to buy back shares, and some firms are seeking shareholder approval to do so, Dahlan Iskan, the state enterprises minister, told Bloomberg TV Indonesia on Thursday, without giving details on firms.
“We’re studying whether we will buy back our shares,” Dwi Soetjipto, president director of state-owned cement maker Semen Indonesia, told reporters on Aug. 21.
“We still don’t understand why everyone is panicking on the financial situation.”
Additional reporting by Novrida Manurung, Eko Listiyorini and Yanping Li
Bloomberg
http://www.thejakartaglobe.com/business/indonesia-plans-policy-stimulus-to-woo-investors-and-help-rupiah/
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Pertamina Completes Feasibility Study for 7th Refinery
By Erwida Maulia & Tito Summa Siahaan on 9:13 pm August 22, 2013.
Category Business, Corporate News
Tags: Indonesia oil and gas industry, Pertamina
[This story is updated at 9:13 p.m. on Aug. 22, 2013]
Pertamina’s six refineries, which have a combined capacity of 1 million barrels of crude oil per day, include this facility in Cilacap, Central Java. (Reuters Photo)
State-owned energy firm Pertamina said on Thursday that it had completed a feasibility study for what would be its seventh refinery, intended to reduce the country’s dependence on imported fuel.
The $6 billion oil refinery, which the company aims to open in 2018, is expected to boost Pertamina’s production capacity by 300,000 barrels per day from its current 1 million bpd. Indonesia currently consumes 1.4 million barrels per day of oil, leaving a shortfall that must be made up by imports.
“We’ve completed the feasibility study and are submitting [the result] to the government,” Pertamina vice president for corporate communications Ali Mundakir said on Thursday.
He said the results were given to the Ministry of Finance and the Coordinating Ministry for the Economy — the two government bodies that will ultimately decide if the project will be given the green light.
A subsidiary of the Kuwait Petroleum Corporation — Kuwait Petroleum International — has been linked with the project.
Ali declined to identify the location of the putative seventh refinery, saying only that Pertamina was considering three state-owned plots of land.
The government has said it must discuss key performance indicators and a request for tax incentives before the refinery can be approved.
Afdal Badahudin, Pertamina’s director for investment, said Pertamina is now working on “front end engineering design,” the next stage after the completion of a feasibility study.
“We are seeking incentives in the form of exemption from corporate income tax, custom tax and for the government to provide infrastructure,” Afdal said in a text message.
The refinery would add to the company’s six existing facilities in Balongan (West Java), Cilacap (Central Java), Balikpapan (East Kalimantan), Plaju (South Sumatra), Dumai (Riau) and Sorong (Papua).
Pertamina also plans to build a refinery with help from Saudi Aramco, which is currently conducting market and pre-feasibility studies. “For the moment, we have yet to make any requests. We intend to make the economic calculation without incentives,” Afdal added.
Pertamina and Saudi Aramco signed a memorandum of understanding to build the $8 billion facility in February. It is expected to have the capacity to process 300,000 barrels oil per day.
Additional reporting by Agustiyanti
Pertamina Completes Feasibility Study for 7th Refinery - The Jakarta Globe
Pertamina Said to Join Exxon Project in Iraq
By Charlie Zhu & Peg Mackey on 8:48 pm August 22, 2013.
Category Business, Corporate News
Tags: Indonesia oil and gas industry, Pertamina
China and Indonesia are set to join Exxon Mobil’s $50 billion project to develop a giant oil field in Iraq, company and industry sources said on Thursday.
Various scenarios for farming out Exxon’s 60 percent stake in the West Qurna-1 oil field are still under discussion, but at this stage China’s biggest energy firm PetroChina is expected to take 25 percent and Indonesia’s state-owned Pertamina 10 percent, they said.
Exxon would remain operator of the southern field, key to Iraq’ oil expansion plans, though its share could be cut to 25 percent. Royal Dutch Shell would retain its existing 15 percent share.
China is already the top foreign player in Iraq’s oil fields and such a big stake in West Qurna-1, around 50 kilometers northwest of the southern oil hub of Basra, would make PetroChina the single biggest foreign investor in Iraqi oil.
PetroChina confirmed it was in talks for a stake in West Qurna-1 at its interim results briefing on Thursday, though its president, Wang Dongjin, did not disclose the size.
For Pertamina, the deal could be its largest foreign acquisition and mark its first move into Iraqi oil and gas since US-led forces toppled leader Saddam Hussein in 2003. Iraqi oil would help Indonesia meet soaring fuel demand as Southeast Asia’s largest economy grows. Former OPEC-member Indonesia was once itself a big oil exporter, but it is struggling to arrest declining oil and gas output from its aging fields. The country already imports a million barrels a month of Iraqi oil.
Economic Minister Hatta Rajasa said in March that Pertamina was interested in buying into the project and was negotiating a 10 percent to 20 percent stake.
An Exxon Mobil spokesman declined to comment. A Pertamina spokesman said he was unaware of the deal.
Last year, Exxon offered to sell its entire 60 percent stake in West Qurna-1 after a dispute with Baghdad over contracts it signed with the autonomous Kurdistan in the north, deals which the central government rejects as illegal.
The US oil company later committed to further investment at the field — now pumping just under 500,000 barrels a day — and stepped back from making a full exit, talking to potential buyers about smaller stake sales.
Iraq’s oil fields are the largest in the Middle East open to foreign investment. The reserves are an alluring prospect for energy firms seeking to secure future oil supply, despite tough contract terms imposed by Baghdad.
Reuters
http://www.thejakartaglobe.com/business/pertamina-said-to-join-exxon-project-in-iraq/
By Erwida Maulia & Tito Summa Siahaan on 9:13 pm August 22, 2013.
Category Business, Corporate News
Tags: Indonesia oil and gas industry, Pertamina
[This story is updated at 9:13 p.m. on Aug. 22, 2013]
Pertamina’s six refineries, which have a combined capacity of 1 million barrels of crude oil per day, include this facility in Cilacap, Central Java. (Reuters Photo)
State-owned energy firm Pertamina said on Thursday that it had completed a feasibility study for what would be its seventh refinery, intended to reduce the country’s dependence on imported fuel.
The $6 billion oil refinery, which the company aims to open in 2018, is expected to boost Pertamina’s production capacity by 300,000 barrels per day from its current 1 million bpd. Indonesia currently consumes 1.4 million barrels per day of oil, leaving a shortfall that must be made up by imports.
“We’ve completed the feasibility study and are submitting [the result] to the government,” Pertamina vice president for corporate communications Ali Mundakir said on Thursday.
He said the results were given to the Ministry of Finance and the Coordinating Ministry for the Economy — the two government bodies that will ultimately decide if the project will be given the green light.
A subsidiary of the Kuwait Petroleum Corporation — Kuwait Petroleum International — has been linked with the project.
Ali declined to identify the location of the putative seventh refinery, saying only that Pertamina was considering three state-owned plots of land.
The government has said it must discuss key performance indicators and a request for tax incentives before the refinery can be approved.
Afdal Badahudin, Pertamina’s director for investment, said Pertamina is now working on “front end engineering design,” the next stage after the completion of a feasibility study.
“We are seeking incentives in the form of exemption from corporate income tax, custom tax and for the government to provide infrastructure,” Afdal said in a text message.
The refinery would add to the company’s six existing facilities in Balongan (West Java), Cilacap (Central Java), Balikpapan (East Kalimantan), Plaju (South Sumatra), Dumai (Riau) and Sorong (Papua).
Pertamina also plans to build a refinery with help from Saudi Aramco, which is currently conducting market and pre-feasibility studies. “For the moment, we have yet to make any requests. We intend to make the economic calculation without incentives,” Afdal added.
Pertamina and Saudi Aramco signed a memorandum of understanding to build the $8 billion facility in February. It is expected to have the capacity to process 300,000 barrels oil per day.
Additional reporting by Agustiyanti
Pertamina Completes Feasibility Study for 7th Refinery - The Jakarta Globe
Pertamina Said to Join Exxon Project in Iraq
By Charlie Zhu & Peg Mackey on 8:48 pm August 22, 2013.
Category Business, Corporate News
Tags: Indonesia oil and gas industry, Pertamina
China and Indonesia are set to join Exxon Mobil’s $50 billion project to develop a giant oil field in Iraq, company and industry sources said on Thursday.
Various scenarios for farming out Exxon’s 60 percent stake in the West Qurna-1 oil field are still under discussion, but at this stage China’s biggest energy firm PetroChina is expected to take 25 percent and Indonesia’s state-owned Pertamina 10 percent, they said.
Exxon would remain operator of the southern field, key to Iraq’ oil expansion plans, though its share could be cut to 25 percent. Royal Dutch Shell would retain its existing 15 percent share.
China is already the top foreign player in Iraq’s oil fields and such a big stake in West Qurna-1, around 50 kilometers northwest of the southern oil hub of Basra, would make PetroChina the single biggest foreign investor in Iraqi oil.
PetroChina confirmed it was in talks for a stake in West Qurna-1 at its interim results briefing on Thursday, though its president, Wang Dongjin, did not disclose the size.
For Pertamina, the deal could be its largest foreign acquisition and mark its first move into Iraqi oil and gas since US-led forces toppled leader Saddam Hussein in 2003. Iraqi oil would help Indonesia meet soaring fuel demand as Southeast Asia’s largest economy grows. Former OPEC-member Indonesia was once itself a big oil exporter, but it is struggling to arrest declining oil and gas output from its aging fields. The country already imports a million barrels a month of Iraqi oil.
Economic Minister Hatta Rajasa said in March that Pertamina was interested in buying into the project and was negotiating a 10 percent to 20 percent stake.
An Exxon Mobil spokesman declined to comment. A Pertamina spokesman said he was unaware of the deal.
Last year, Exxon offered to sell its entire 60 percent stake in West Qurna-1 after a dispute with Baghdad over contracts it signed with the autonomous Kurdistan in the north, deals which the central government rejects as illegal.
The US oil company later committed to further investment at the field — now pumping just under 500,000 barrels a day — and stepped back from making a full exit, talking to potential buyers about smaller stake sales.
Iraq’s oil fields are the largest in the Middle East open to foreign investment. The reserves are an alluring prospect for energy firms seeking to secure future oil supply, despite tough contract terms imposed by Baghdad.
Reuters
http://www.thejakartaglobe.com/business/pertamina-said-to-join-exxon-project-in-iraq/
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Mining Industry Lukewarm on Changes
By Tito Summa Siahaan on 11:36 am August 24, 2013.
Category Business, Economy, Featured
Tags: Indonesia economy, Indonesia mining
The mining industry has welcomed government plans to stimulate investment in the sector but flagged as concerns the preservation of a 20 percent tax on mining exports and a lack of policy detail.
As part of a package of policies announced after a cabinet meeting on Friday, companies in natural resources, including nickel, bauxite and copper, will be eligible for tax holidays and allowances.
The government also plans to relax its mineral export quotas, which determines the proportion of resources that are not quarantined for domestic consumption.
Agus Suhartono, the vice chairman of the mineral entrepreneurs association Apemindo, said the government’s policies demonstrated priorities in conflict with the industry’s.
“Mining companies don’t have a problem with the quota,” said Agus, adding that the industry had increased output volumes despite the quota system.
Indonesia Mining Association executive chairman Tony Wenas agreed, citing the growth in the nation’s nickel exports, which stood at 40 million tons for the first half of this year, up from 26 million tons in the same period in 2012.
Tony said the mining industry welcomed any government commitment to provide incentives, but added that the announcement lacked detail.
“If they want to provide incentives, then they need to detail what’s involved, the parameters of the tax holiday, the amount of the allowance and so on,” he said.
He said the mining industry could help the government narrow the trade deficit and bolster state currency reserves, since mining companies do business with foreign currencies.
“More mining activities mean increased exports, which, in turn, will improve Indonesia’s foreign exchange reserves,” Tony said.
But Apemindo’s Agus said the decision to relax export quotas would not directly result in an increase in output volume.
“If miners plan to ramp up production, then they have to place more orders for heavy equipment and tools, which usually take two or three months [to arrive at] mining sites,” he said.
“What the industry needs is to reduce costs, and the way to do that is by removing export taxes.”
He added that the ban on the export of unprocessed mineral products from 2014 would not help the industry.
“There are only a few months left in 2013. I wouldn’t increase production activities just for the sake of increasing export volumes, especially not with just a few months remaining in the calendar year,” Agus said.
He noted that a rise in exports would put pressure on prices, including in the domestic economy, where inflation has spiked in recent months.
On the Indonesia Stock Exchange on Friday, mining stocks responded positively to news of the policy changes, with the sector gaining 1.6 percent, clawing back some recent losses.
Vale Indonesia, the nation’s largest nickel mining company, jumped 9.4 percent to Rp 2,325, its highest closing position since June 19.
State-controlled gold and nickel miner Aneka Tambang rose 1.5 percent to Rp 1,380. State-controlled tin producer Timah rose 2.3 percent to Rp 1,330.
Indonesia is the world’s top exporter of nickel ore and refined tin and a significant exporter of bauxite and iron ore.
The government’s quota and tax rules are intended to encourage value-adding business activities in the mining sector.
The rules do not apply to big players such as Freeport McMoRan Copper & Gold and Newmont Mining.
Global prices of many commodities have fallen in recent month amid slowdowns in major import markets China and India.
Indonesian Mining Industry Lukewarm on Changes
By Tito Summa Siahaan on 11:36 am August 24, 2013.
Category Business, Economy, Featured
Tags: Indonesia economy, Indonesia mining
The mining industry has welcomed government plans to stimulate investment in the sector but flagged as concerns the preservation of a 20 percent tax on mining exports and a lack of policy detail.
As part of a package of policies announced after a cabinet meeting on Friday, companies in natural resources, including nickel, bauxite and copper, will be eligible for tax holidays and allowances.
The government also plans to relax its mineral export quotas, which determines the proportion of resources that are not quarantined for domestic consumption.
Agus Suhartono, the vice chairman of the mineral entrepreneurs association Apemindo, said the government’s policies demonstrated priorities in conflict with the industry’s.
“Mining companies don’t have a problem with the quota,” said Agus, adding that the industry had increased output volumes despite the quota system.
Indonesia Mining Association executive chairman Tony Wenas agreed, citing the growth in the nation’s nickel exports, which stood at 40 million tons for the first half of this year, up from 26 million tons in the same period in 2012.
Tony said the mining industry welcomed any government commitment to provide incentives, but added that the announcement lacked detail.
“If they want to provide incentives, then they need to detail what’s involved, the parameters of the tax holiday, the amount of the allowance and so on,” he said.
He said the mining industry could help the government narrow the trade deficit and bolster state currency reserves, since mining companies do business with foreign currencies.
“More mining activities mean increased exports, which, in turn, will improve Indonesia’s foreign exchange reserves,” Tony said.
But Apemindo’s Agus said the decision to relax export quotas would not directly result in an increase in output volume.
“If miners plan to ramp up production, then they have to place more orders for heavy equipment and tools, which usually take two or three months [to arrive at] mining sites,” he said.
“What the industry needs is to reduce costs, and the way to do that is by removing export taxes.”
He added that the ban on the export of unprocessed mineral products from 2014 would not help the industry.
“There are only a few months left in 2013. I wouldn’t increase production activities just for the sake of increasing export volumes, especially not with just a few months remaining in the calendar year,” Agus said.
He noted that a rise in exports would put pressure on prices, including in the domestic economy, where inflation has spiked in recent months.
On the Indonesia Stock Exchange on Friday, mining stocks responded positively to news of the policy changes, with the sector gaining 1.6 percent, clawing back some recent losses.
Vale Indonesia, the nation’s largest nickel mining company, jumped 9.4 percent to Rp 2,325, its highest closing position since June 19.
State-controlled gold and nickel miner Aneka Tambang rose 1.5 percent to Rp 1,380. State-controlled tin producer Timah rose 2.3 percent to Rp 1,330.
Indonesia is the world’s top exporter of nickel ore and refined tin and a significant exporter of bauxite and iron ore.
The government’s quota and tax rules are intended to encourage value-adding business activities in the mining sector.
The rules do not apply to big players such as Freeport McMoRan Copper & Gold and Newmont Mining.
Global prices of many commodities have fallen in recent month amid slowdowns in major import markets China and India.
Indonesian Mining Industry Lukewarm on Changes
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Young People Key in Making Australia-Indonesia Ties Prosper
By Bede Moore, Chris Urbanski & Karina Akib on 12:34 pm August 23, 2013.
Category Commentary, Opinion
Tags: Australia
For the Australia-Indonesia relationship to prosper in the Asian Century, young people from both countries must play a role. Strong people-to-people links at the youth level are vital to the future of our bilateral relations.
Luckily, a small cadre of culturally aware, bilaterally engaged youth already exist, and their efforts are helping to maintain and strengthen this critical relationship. But more must be done.
These emerging leaders will ultimately shape the state of relations in the years ahead. Already, they bring a valuable – and different – perspective to the big issues.
Their view of the relationship is less informed by the difficulties of the past than it is by the opportunities of the future. It is forward facing: they look towards the Asian Century and hope to benefit from the collective advantages this era could yield.
These young people know that the Australia-Indonesia relationship has weathered a good share of ups and downs.
How both sides talk excitedly about Australia’s involvement in the Indonesian independence movement, and with less enthusiasm about what happened in East Timor.
They hold fond memories of community and cooperation forged in the wake of the tsunami, or of our shared successes against terrorism, but bicker about boats and beef. They would rather they were memories too.
Fortunately, due to hard work in Jakarta and Canberra, our bilateral relations have reached a high ebb in the last few years.
We enjoy warm government-to-government relations, growing economic ties (two-way trade was almost $15 billion in 2011-12 up 8.3% on last year) and, according to David Hurley in the Strategic Review, an Indonesian Journal, our militaries are even talking about a strategic partnership.
Nevertheless, surveys in both countries show a mixed bag of perceptions. Some are positive, some less so.
Cross-border investment, whether in terms of commerce or in cross-cultural education, still falls a long way short of our aspirations.
Both our commercial and cultural landscapes still remain deeply foreign to the majority of our populations.
Nobody said it more clearly than Indonesian President Susilo Bambang Yudhoyono before his address to the Australian Parliament in 2010.
“Even in the age of cable television and internet, there are Australians who still see Indonesia as an authoritarian country, as a military dictatorship, as a hotbed of Islamic extremism or even as an expansionist power.
“On the other hand, in Indonesia there are people who remain afflicted with Australiaphobia — those who believe that the notion of White Australia still persists, that Australia harbors ill intention toward Indonesia and is either sympathetic to or supports separatist elements in our country.”
Our culturally aware young people know it is true.
This year the Australia-Indonesia Youth Association surveyed 250 Indonesia-engaged young Australians. The results were revealing. Young people believe cultural misunderstanding is the single greatest impediment to an improved bilateral relationship.
They believe that cultural-exchange initiatives are the most valuable experiences in deepening the collective understanding of each other. They are on the same wavelength as Yudhoyono.
It is only through shared bilateral experiences that young people can play a role in finding answers to other pressing questions facing the relationship: How can we work together to best navigate the challenges, and capture the benefits, created by the dynamic growth of our region? How can we, as young people, influence and change the relationship for the better? How do we move beyond our cultural misconceptions to build a common, broad-based understanding?
It is vital that young people have a voice in answering these questions. Yes, they are the future.
Statistically speaking, they are also the majority – 50 percent of Indonesians are under the age of 30. They are the ones who will bring cross-cultural experiences to the boardroom, in ways that ASX leaders have not.
And so we need to provide them with the opportunities to engage with one another, across borders, and led by the elders of the relationship who can point them to the successes and the mistakes.
In October the Australia Indonesia Youth Association will hold its inaugural bilateral conference, the Conference of Australian and Indonesian Youth or Causindy.
Fifteen delegates aged 21 – 35 from each country will come to Canberra to discuss the key issues affecting our bilateral relationship and offer their suggestions on where we should go from here: it’s our turn to decide.
Bede Moore, Chris Urbanski and Karina Akib are directors in the Australia-Indonesia Youth Association, and are responsible for the Conference of Australian and Indonesian Youth, which will be held in Canberra in October, 2013.
Young People Key in Making Australia-Indonesia Ties Prosper - The Jakarta Globe
By Bede Moore, Chris Urbanski & Karina Akib on 12:34 pm August 23, 2013.
Category Commentary, Opinion
Tags: Australia
For the Australia-Indonesia relationship to prosper in the Asian Century, young people from both countries must play a role. Strong people-to-people links at the youth level are vital to the future of our bilateral relations.
Luckily, a small cadre of culturally aware, bilaterally engaged youth already exist, and their efforts are helping to maintain and strengthen this critical relationship. But more must be done.
These emerging leaders will ultimately shape the state of relations in the years ahead. Already, they bring a valuable – and different – perspective to the big issues.
Their view of the relationship is less informed by the difficulties of the past than it is by the opportunities of the future. It is forward facing: they look towards the Asian Century and hope to benefit from the collective advantages this era could yield.
These young people know that the Australia-Indonesia relationship has weathered a good share of ups and downs.
How both sides talk excitedly about Australia’s involvement in the Indonesian independence movement, and with less enthusiasm about what happened in East Timor.
They hold fond memories of community and cooperation forged in the wake of the tsunami, or of our shared successes against terrorism, but bicker about boats and beef. They would rather they were memories too.
Fortunately, due to hard work in Jakarta and Canberra, our bilateral relations have reached a high ebb in the last few years.
We enjoy warm government-to-government relations, growing economic ties (two-way trade was almost $15 billion in 2011-12 up 8.3% on last year) and, according to David Hurley in the Strategic Review, an Indonesian Journal, our militaries are even talking about a strategic partnership.
Nevertheless, surveys in both countries show a mixed bag of perceptions. Some are positive, some less so.
Cross-border investment, whether in terms of commerce or in cross-cultural education, still falls a long way short of our aspirations.
Both our commercial and cultural landscapes still remain deeply foreign to the majority of our populations.
Nobody said it more clearly than Indonesian President Susilo Bambang Yudhoyono before his address to the Australian Parliament in 2010.
“Even in the age of cable television and internet, there are Australians who still see Indonesia as an authoritarian country, as a military dictatorship, as a hotbed of Islamic extremism or even as an expansionist power.
“On the other hand, in Indonesia there are people who remain afflicted with Australiaphobia — those who believe that the notion of White Australia still persists, that Australia harbors ill intention toward Indonesia and is either sympathetic to or supports separatist elements in our country.”
Our culturally aware young people know it is true.
This year the Australia-Indonesia Youth Association surveyed 250 Indonesia-engaged young Australians. The results were revealing. Young people believe cultural misunderstanding is the single greatest impediment to an improved bilateral relationship.
They believe that cultural-exchange initiatives are the most valuable experiences in deepening the collective understanding of each other. They are on the same wavelength as Yudhoyono.
It is only through shared bilateral experiences that young people can play a role in finding answers to other pressing questions facing the relationship: How can we work together to best navigate the challenges, and capture the benefits, created by the dynamic growth of our region? How can we, as young people, influence and change the relationship for the better? How do we move beyond our cultural misconceptions to build a common, broad-based understanding?
It is vital that young people have a voice in answering these questions. Yes, they are the future.
Statistically speaking, they are also the majority – 50 percent of Indonesians are under the age of 30. They are the ones who will bring cross-cultural experiences to the boardroom, in ways that ASX leaders have not.
And so we need to provide them with the opportunities to engage with one another, across borders, and led by the elders of the relationship who can point them to the successes and the mistakes.
In October the Australia Indonesia Youth Association will hold its inaugural bilateral conference, the Conference of Australian and Indonesian Youth or Causindy.
Fifteen delegates aged 21 – 35 from each country will come to Canberra to discuss the key issues affecting our bilateral relationship and offer their suggestions on where we should go from here: it’s our turn to decide.
Bede Moore, Chris Urbanski and Karina Akib are directors in the Australia-Indonesia Youth Association, and are responsible for the Conference of Australian and Indonesian Youth, which will be held in Canberra in October, 2013.
Young People Key in Making Australia-Indonesia Ties Prosper - The Jakarta Globe
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Movie Rew
Blind Girl’s Battle Conveys a Message
By Lisa Siregar on 3:00 pm August 12, 2013.
Category Features, Movies
Tags: film, Indonesia movie
Dianeersky plays the leading role in ‘Tania,’ a local film about a blind girl chasing her dreams, set for release next year. (JG Photo/Lisa Siregar)
Disability and poverty are in focus in “Tania,” a film set to hit Indonesian screens early next year. Wrapping up production in July after three weeks of filming in Solo and Pacitan in Central Java, the cast and crew of “Tania” gathered in Jakarta last Wednesday for a news conference at which they discussed the motivations for their involvement in the project.
The movie follows Tania (portrayed by 19-year-old newcomer Dianeersky), a young woman who has been blind since birth. Her boyfriend, Tara (played by Ferly Putra, also new to the big screen), encourages her to chase her dreams despite her physical disability. But more than anything, Tania dreams of the gift of sight. Her eyesight could return with eye surgery, a procedure that Tania’s working mother (played by Ike Muti) cannot afford.
She decides to pair Tania with Genta (Afdhal Yusman), a young and wealthy man who has the means to solve Tania’s problem instantly. Tania, uncomfortable with the choice she must make, reflects on whether she is willing to compromise on love in order to save her sight.
Director Agung NS Nanda , 27, said he knew that telling the story of a disabled person was always going to be difficult, especially for a directorial debut.
An art director in feature-length movies since 2008, Agung worked on the 2010 films “Jinx” and “Melodi” (“Melody”
and in 2011 worked on “Surat Kecil Untuk Tuhan” (“Small Letter for God” But most of his work has been directing music clips.
Agung directed “Tania” and also co-authored the script with fellow writer Novi. As an art director, Agung said he was used to being at the right hand of a director, yet he went into filming knowing exactly what kind of shots would serve the story.
“I wanted to know what they feel, and find out whether or not I could translate it into a movie. I have this certain sense or feeling that I wanted to portray and share with the audience,” he said.
Agung’s background as a music clip director partly explains why music plays a key role in “Tania.” While Tania is not a musician, she finds comfort in her violin, which symbolically connects her with the father she lost as a child. The soundtrack to the film and music score to “Tania” is by Eross Chandra, a guitarist from alternative rock band Sheila on 7.
Dianeersky (Diane) is a fan of 19th century Polish composer Frederic Chopin, but said she cannot play the violin in real life. But she has played classical piano since the age of 5.
“They loosened up the strings to mute the violin,” she said. “But even so, there’s a specific way to hold the violin and it took me a while to get used to it.”
Before landing the lead role in “Tania,” Diane was a teen model. Currently studying dentistry at university, she is very passionate about acting.
“The way I portrayed Tania in this film is for people to respect the blind and not just pity them,” she said. “Tania is a tough girl who wants to do things on her own.”
To get a better understanding of Tania’s world, Diane trained her sensitivity by doing things with her eyes closed. She also went to a special school for disabled people while researching the role. Before and during filming, Diane said she decided to pay attention to people’s movements and react to them.
“If you close your eyes when doing normal activities, you’ll realize that your sense of hearing becomes a lot more acute,” she said.
She says the role has affected her own senses and perception of the world.
“I try to feel people’s gesture and react to their tone, it’s not about their faces anymore,” Diane said.
“Tania” is scheduled for release in February 2014.
Blind Girl
Blind Girl’s Battle Conveys a Message
By Lisa Siregar on 3:00 pm August 12, 2013.
Category Features, Movies
Tags: film, Indonesia movie
Dianeersky plays the leading role in ‘Tania,’ a local film about a blind girl chasing her dreams, set for release next year. (JG Photo/Lisa Siregar)
Disability and poverty are in focus in “Tania,” a film set to hit Indonesian screens early next year. Wrapping up production in July after three weeks of filming in Solo and Pacitan in Central Java, the cast and crew of “Tania” gathered in Jakarta last Wednesday for a news conference at which they discussed the motivations for their involvement in the project.
The movie follows Tania (portrayed by 19-year-old newcomer Dianeersky), a young woman who has been blind since birth. Her boyfriend, Tara (played by Ferly Putra, also new to the big screen), encourages her to chase her dreams despite her physical disability. But more than anything, Tania dreams of the gift of sight. Her eyesight could return with eye surgery, a procedure that Tania’s working mother (played by Ike Muti) cannot afford.
She decides to pair Tania with Genta (Afdhal Yusman), a young and wealthy man who has the means to solve Tania’s problem instantly. Tania, uncomfortable with the choice she must make, reflects on whether she is willing to compromise on love in order to save her sight.
Director Agung NS Nanda , 27, said he knew that telling the story of a disabled person was always going to be difficult, especially for a directorial debut.
An art director in feature-length movies since 2008, Agung worked on the 2010 films “Jinx” and “Melodi” (“Melody”
and in 2011 worked on “Surat Kecil Untuk Tuhan” (“Small Letter for God” But most of his work has been directing music clips.Agung directed “Tania” and also co-authored the script with fellow writer Novi. As an art director, Agung said he was used to being at the right hand of a director, yet he went into filming knowing exactly what kind of shots would serve the story.
“I wanted to know what they feel, and find out whether or not I could translate it into a movie. I have this certain sense or feeling that I wanted to portray and share with the audience,” he said.
Agung’s background as a music clip director partly explains why music plays a key role in “Tania.” While Tania is not a musician, she finds comfort in her violin, which symbolically connects her with the father she lost as a child. The soundtrack to the film and music score to “Tania” is by Eross Chandra, a guitarist from alternative rock band Sheila on 7.
Dianeersky (Diane) is a fan of 19th century Polish composer Frederic Chopin, but said she cannot play the violin in real life. But she has played classical piano since the age of 5.
“They loosened up the strings to mute the violin,” she said. “But even so, there’s a specific way to hold the violin and it took me a while to get used to it.”
Before landing the lead role in “Tania,” Diane was a teen model. Currently studying dentistry at university, she is very passionate about acting.
“The way I portrayed Tania in this film is for people to respect the blind and not just pity them,” she said. “Tania is a tough girl who wants to do things on her own.”
To get a better understanding of Tania’s world, Diane trained her sensitivity by doing things with her eyes closed. She also went to a special school for disabled people while researching the role. Before and during filming, Diane said she decided to pay attention to people’s movements and react to them.
“If you close your eyes when doing normal activities, you’ll realize that your sense of hearing becomes a lot more acute,” she said.
She says the role has affected her own senses and perception of the world.
“I try to feel people’s gesture and react to their tone, it’s not about their faces anymore,” Diane said.
“Tania” is scheduled for release in February 2014.
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Indonesia launches pentavalent vaccine
Nadya Natahadibrata, The Jakarta Post, Jakarta | Headlines | Sat, August 24 2013, 10:26 AM
n an attempt to reduce the children-under-five mortality rate and expand the coverage of the national vaccination program, the government has launched the pentavalent vaccine, a vaccine that combines five antigens — Diphteria (DPT), Pertussis, Tetanus, Hepatitis B (HB) and Haemophilus Influenzae type b (Hib) — in one single shot for newborn babies.
Health Minister Nafsiah Mboi said on Thursday that with the new vaccine, the ministry aimed to expand the coverage of the vaccination program, because with only one injection for five antigens, it would be more convenient for both the baby and parent, while also lowering the cost of the immunization.
With the current vaccine used, a baby must get injected nine times for DPT, HB and Hib. The pentavalent vaccine reduced the number of injections to only three, with an interval of one month.
“The basic vaccination program that previously only focused on preventing seven diseases, would also be improved with this new vaccine, as it also prevents babies from having pneumonia and meningitis,” she said.
In 2012, 86.8 percent of children under five received basic vaccinations, which had exceeded the initial target of 85 percent, the minister said.
“We aimed to vaccinate all children, because the 15 percent figure is equal to 3.9 million babies who haven’t been vaccinated and that is a terrible condition and number,” she told reporters on Thursday.
Produced by Biofarma, the vaccine will initially be introduced in four provinces — West Java, Yogyakarta, Bali and West Nusa Tenggara — to vaccinate around 800,000 babies this year.
A public-private partnership GAVI Alliance, whose members include Unicef, WHO and the World Bank, disbursed initial funding that reached US$23.9 million to help provide the vaccine in the country.
“In addition to that, we have given vaccine implementation a $4 million grant to help train health workers for the new vaccine and give information to concerned parents,” Helen Evans, the deputy chief executive officer of GAVI Alliance said.
“We have a commitment to fund the vaccine until the end of 2016. We have a policy that the government provide contributions to the vaccine, and because Indonesia’s economy is growing, the Indonesian government will provide more and more for this pentavalent,” Evans said.
According to GAVI, the total cost to provide the vaccine between 2013 to 2016 is expected to be US$ 112 million. Of that amount, GAVI will pay a total of US$ 51.1 million which represents 45 percent of the vaccine cost between 2013-2016, while the rest of the cost will be paid by the Indonesian government. In 2017, the government will fully finance the vaccine without any support from the foreign aid.
First launched in Guyana in 2001, GAVI aims to immunize more than 550 million children by 2020.
The vaccine has apparently caused controversy in other countries including India, where 21 infants died after receiving the pentavalent vaccine.
The Economic Times reported that the government of India will soon conduct a study to ascertain the vaccine’s safety.
Meanwhile, Nafsiah said that the quality of the pentavalent vaccine should no longer be questionable.
“The vaccine is safe. A vaccination on a healthy baby will not cause any problems,” she said.
Indonesia launches pentavalent vaccine | The Jakarta Post
Top Indian CEOs to visit RI to boost ties
The Jakarta Post, Jakarta | Business | Sat, August 24 2013, 7:42 AM
A high-powered business delegation, mainly CEOs of top Indian corporate houses from India will be visiting Jakarta from Aug 25 until 27 to strengthen trade and investment relations between the two maritime neighbors.
The aim is to enhance B2B contacts at high levels as well as to meet the political leaders of Indonesia," the embassy said in a press release sent to The Jakarta Post on Friday.
The 24-member CEOs mission from the Federation of Indian Chambers of Commerce and Industry (FICCI) is being led by Naina Lal Kidwi, the FICCI president and executive director and country head of HSBC India.
Some of the big conglomerates like Modi Enterprises chairman, K.K. Modi , Indo Rama Synthetics (I) Limited managing director, O.P. Lohia, Mahindra & Mahindra Ltd president, Rajeev Dubey and PT Tata Motors Indonesia president director, Biswadev Sengupta are members of the delegation.
The Indian delegation is scheduled to meet Vice President Boediono, Trade Minister Gita Wirjawan, Industry Minister M.S. Hidayat, executives of ASEAN Secretariat, Indonesian Chambers of Commerce and Industry (KADIN) and Investment Coordinating Board (BKPM) during their visit.
With US$20.21 billion bilateral trade last year, Indonesia is India's second biggest trading partner in ASEAN after Singapore. India's trade with ASEAN in 2012 stood at $75.6 billion, a slight increase from $74.6 billion in 2011.
On the investment side, India's FDI in ASEAN reached $2.6 billion in 2012, while India's cumulative FDI (foreign direct investment) from April 2000 to August 2012 reached $608 million.
http://www.thejakartapost.com/news/2013/08/24/top-indian-ceos-visit-ri-boost-ties.html
RI wants RCEP to consider participants’ capacity
Linda Yulisman, The Jakarta Post, Jakarta | Business | Fri, August 23 2013, 12:15 PM
While regional comprehensive economic partnership (RCEP) talks in Brunei Darussalam are focusing on trade liberalization, Indonesia has proposed room for countries to discuss free trade exceptions.
Trade Minister Gita Wirjawan, who attended the ministerial meeting in Brunei, said room for discussion was necessary considering the differences in preparedness among country participants.
Gita said he was concerned over the tendency of certain countries to be “too aggressive” by putting several issues on the table, such as e-commerce and intellectual property rights, all at once for negotiation.
“If this happens, it will be hard to manage negotiations. The dynamism and traits of these negotiations are different from other negotiations,” he told The Jakarta Post in an emailed interview on Thursday.
Gita added that the RCEP was based on agreements between the Association of Southeast Asian Nations (ASEAN) and its Free Trade Agreement (FTA) partners: Australia, China, India, Japan, South Korea and New Zealand.
Not all of the six countries have signed free-trade deals with each other.
Gita made the comment after attending the first ministerial meeting on RCEP in Bandar Sri Begawan on Monday.
During the meeting, Indonesia also put strong emphasis on the necessity to negotiate in a frank manner with each country to reveal difficulties with any proposed commitment and to provide special treatment for least-developed countries in Southeast Asia — Cambodia, Laos and Myanmar.
Devised during the ASEAN Summit in Phnom Penh, Cambodia, last year, the RCEP will form the world’s biggest economic bloc by 2015 with a 16-country integrated market across the Asia Pacific.
It will encompass roughly 3.4 billion people with a combined gross domestic product of US$21.2 trillion last year.
Each of the non-ASEAN partners have sealed separate free trade agreements (FTAs) with the Southeast Asian grouping.
The RCEP is estimated to give income gains of approximately $644 billion by 2025, or equal to 0.6 percent of the world’s GDP, due to the faster flow of goods, services, investment and labor across participating economies, according to a study by the Asian Development Bank (ADB).
As for Indonesia, the deal will push up its GDP by more than 1 percent through the designated time line by forging the partnership.
In the first meeting, the ministers from 16 nations welcomed the establishment of three working groups — trade in goods, trade in services and investment — and the initial exchange of views among participating countries, according to a joint media statement.
The second round of negotiations is scheduled to take place in Brisbane, Australia, on Sept. 23 to 27.
For the next step, the RCEP trade negotiating committee will task working groups with developing modalities for negotiations, the committee’s chair Iman Pambagyo said.
Negotiators will follow guidance from the ministers suggesting that the application of the liberalization commitment run on a single schedule, despite some exceptions based on sensitivity within some
countries.
“We realize that there should be flexibility and frankness in negotiations because this is a historic initiative that any country has yet to undergo,” Iman told the Post.
http://www.thejakartapost.com/news/2013/08/23/ri-wants-rcep-consider-participants-capacity.html
Nadya Natahadibrata, The Jakarta Post, Jakarta | Headlines | Sat, August 24 2013, 10:26 AM
n an attempt to reduce the children-under-five mortality rate and expand the coverage of the national vaccination program, the government has launched the pentavalent vaccine, a vaccine that combines five antigens — Diphteria (DPT), Pertussis, Tetanus, Hepatitis B (HB) and Haemophilus Influenzae type b (Hib) — in one single shot for newborn babies.
Health Minister Nafsiah Mboi said on Thursday that with the new vaccine, the ministry aimed to expand the coverage of the vaccination program, because with only one injection for five antigens, it would be more convenient for both the baby and parent, while also lowering the cost of the immunization.
With the current vaccine used, a baby must get injected nine times for DPT, HB and Hib. The pentavalent vaccine reduced the number of injections to only three, with an interval of one month.
“The basic vaccination program that previously only focused on preventing seven diseases, would also be improved with this new vaccine, as it also prevents babies from having pneumonia and meningitis,” she said.
In 2012, 86.8 percent of children under five received basic vaccinations, which had exceeded the initial target of 85 percent, the minister said.
“We aimed to vaccinate all children, because the 15 percent figure is equal to 3.9 million babies who haven’t been vaccinated and that is a terrible condition and number,” she told reporters on Thursday.
Produced by Biofarma, the vaccine will initially be introduced in four provinces — West Java, Yogyakarta, Bali and West Nusa Tenggara — to vaccinate around 800,000 babies this year.
A public-private partnership GAVI Alliance, whose members include Unicef, WHO and the World Bank, disbursed initial funding that reached US$23.9 million to help provide the vaccine in the country.
“In addition to that, we have given vaccine implementation a $4 million grant to help train health workers for the new vaccine and give information to concerned parents,” Helen Evans, the deputy chief executive officer of GAVI Alliance said.
“We have a commitment to fund the vaccine until the end of 2016. We have a policy that the government provide contributions to the vaccine, and because Indonesia’s economy is growing, the Indonesian government will provide more and more for this pentavalent,” Evans said.
According to GAVI, the total cost to provide the vaccine between 2013 to 2016 is expected to be US$ 112 million. Of that amount, GAVI will pay a total of US$ 51.1 million which represents 45 percent of the vaccine cost between 2013-2016, while the rest of the cost will be paid by the Indonesian government. In 2017, the government will fully finance the vaccine without any support from the foreign aid.
First launched in Guyana in 2001, GAVI aims to immunize more than 550 million children by 2020.
The vaccine has apparently caused controversy in other countries including India, where 21 infants died after receiving the pentavalent vaccine.
The Economic Times reported that the government of India will soon conduct a study to ascertain the vaccine’s safety.
Meanwhile, Nafsiah said that the quality of the pentavalent vaccine should no longer be questionable.
“The vaccine is safe. A vaccination on a healthy baby will not cause any problems,” she said.
Indonesia launches pentavalent vaccine | The Jakarta Post
Top Indian CEOs to visit RI to boost ties
The Jakarta Post, Jakarta | Business | Sat, August 24 2013, 7:42 AM
A high-powered business delegation, mainly CEOs of top Indian corporate houses from India will be visiting Jakarta from Aug 25 until 27 to strengthen trade and investment relations between the two maritime neighbors.
The aim is to enhance B2B contacts at high levels as well as to meet the political leaders of Indonesia," the embassy said in a press release sent to The Jakarta Post on Friday.
The 24-member CEOs mission from the Federation of Indian Chambers of Commerce and Industry (FICCI) is being led by Naina Lal Kidwi, the FICCI president and executive director and country head of HSBC India.
Some of the big conglomerates like Modi Enterprises chairman, K.K. Modi , Indo Rama Synthetics (I) Limited managing director, O.P. Lohia, Mahindra & Mahindra Ltd president, Rajeev Dubey and PT Tata Motors Indonesia president director, Biswadev Sengupta are members of the delegation.
The Indian delegation is scheduled to meet Vice President Boediono, Trade Minister Gita Wirjawan, Industry Minister M.S. Hidayat, executives of ASEAN Secretariat, Indonesian Chambers of Commerce and Industry (KADIN) and Investment Coordinating Board (BKPM) during their visit.
With US$20.21 billion bilateral trade last year, Indonesia is India's second biggest trading partner in ASEAN after Singapore. India's trade with ASEAN in 2012 stood at $75.6 billion, a slight increase from $74.6 billion in 2011.
On the investment side, India's FDI in ASEAN reached $2.6 billion in 2012, while India's cumulative FDI (foreign direct investment) from April 2000 to August 2012 reached $608 million.
http://www.thejakartapost.com/news/2013/08/24/top-indian-ceos-visit-ri-boost-ties.html
RI wants RCEP to consider participants’ capacity
Linda Yulisman, The Jakarta Post, Jakarta | Business | Fri, August 23 2013, 12:15 PM
While regional comprehensive economic partnership (RCEP) talks in Brunei Darussalam are focusing on trade liberalization, Indonesia has proposed room for countries to discuss free trade exceptions.
Trade Minister Gita Wirjawan, who attended the ministerial meeting in Brunei, said room for discussion was necessary considering the differences in preparedness among country participants.
Gita said he was concerned over the tendency of certain countries to be “too aggressive” by putting several issues on the table, such as e-commerce and intellectual property rights, all at once for negotiation.
“If this happens, it will be hard to manage negotiations. The dynamism and traits of these negotiations are different from other negotiations,” he told The Jakarta Post in an emailed interview on Thursday.
Gita added that the RCEP was based on agreements between the Association of Southeast Asian Nations (ASEAN) and its Free Trade Agreement (FTA) partners: Australia, China, India, Japan, South Korea and New Zealand.
Not all of the six countries have signed free-trade deals with each other.
Gita made the comment after attending the first ministerial meeting on RCEP in Bandar Sri Begawan on Monday.
During the meeting, Indonesia also put strong emphasis on the necessity to negotiate in a frank manner with each country to reveal difficulties with any proposed commitment and to provide special treatment for least-developed countries in Southeast Asia — Cambodia, Laos and Myanmar.
Devised during the ASEAN Summit in Phnom Penh, Cambodia, last year, the RCEP will form the world’s biggest economic bloc by 2015 with a 16-country integrated market across the Asia Pacific.
It will encompass roughly 3.4 billion people with a combined gross domestic product of US$21.2 trillion last year.
Each of the non-ASEAN partners have sealed separate free trade agreements (FTAs) with the Southeast Asian grouping.
The RCEP is estimated to give income gains of approximately $644 billion by 2025, or equal to 0.6 percent of the world’s GDP, due to the faster flow of goods, services, investment and labor across participating economies, according to a study by the Asian Development Bank (ADB).
As for Indonesia, the deal will push up its GDP by more than 1 percent through the designated time line by forging the partnership.
In the first meeting, the ministers from 16 nations welcomed the establishment of three working groups — trade in goods, trade in services and investment — and the initial exchange of views among participating countries, according to a joint media statement.
The second round of negotiations is scheduled to take place in Brisbane, Australia, on Sept. 23 to 27.
For the next step, the RCEP trade negotiating committee will task working groups with developing modalities for negotiations, the committee’s chair Iman Pambagyo said.
Negotiators will follow guidance from the ministers suggesting that the application of the liberalization commitment run on a single schedule, despite some exceptions based on sensitivity within some
countries.
“We realize that there should be flexibility and frankness in negotiations because this is a historic initiative that any country has yet to undergo,” Iman told the Post.
http://www.thejakartapost.com/news/2013/08/23/ri-wants-rcep-consider-participants-capacity.html
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