Indonesia Economy Forum

[Nike]

Indonesian govt to optimize tax receipts through database
Senin, 16 Januari 2017 21:07 WIB - 0 Views

Minister Sri Mulyani Indrawati. (ANTARA)

Jakarta (ANTARA News) - The optimization of tax revenues in 2017 and efforts to improve the tax ratio, which is still low, will be conducted through the use of a taxation database, according to Finance Minister Sri Mulyani Indrawati.

"We will see how large the countrys tax base actually is," the minister stated here on Monday.

Mulyani said projections related to the taxation database will be made to evaluate the potential of tax revenue that could actually be collected by the government by taking into account the economic conditions.

"If for an economic activity, with a gross domestic product (GDP) size of Rp13 thousand trillion, we need to know how much has been deducted from the non-taxable income and how many taxpayers have been given non-taxable facilities and unpaid value-added taxes, and non-finalized income taxes," the minister explained.

Mulyani has ensured the task will be carried out by a tax reform team, as the optimization of tax revenue can be conducted more effectively through the presence of an adequate taxation database.

"This is to be done by the tax reform team to check whether there are tax bases, activities, collected data, ability to collect taxes, and regulation constraints," she noted.

Hence, the finance minister has expressed hope that in the long term, the tax ratio, which is presently at 11 percent, would be improved, and tax revenue will no longer slip away from the target as it is today.

"The tax ratio, which is still 11 percent, is small, while we have the potential (to increase it). Now, what is the problem? Cant we see it or we have no ability to collect it? I would not say the target (taxes) is high or not, but the tax ratio can still be and must be corrected," she affirmed.

The government is targeting a tax revenue of Rp1,307.67 trillion in the 2017 Budget. Tax revenues in 2016 had reached Rp1,104.9 trillion, with contribution from the tax amnesty program reaching Rp107 trillion.
(Uu.A014/INE/KR-BSR)
Editor: Priyambodo RH

COPYRIGHT © ANTARA 2017

http://m.antaranews.com/en/news/108969/indonesian-govt-to-optimize-tax-receipts-through-database

 

[GraveDigger388]

City improvement project : Cihampelas Skywalk, Bandung

Guess I gotta take a walk...

 

[Nike]

Japan to submit proposal for railway project
Selasa, 17 Januari 2017 10:04 WIB - 0 Views

Jakarta (ANTARA News) - Japan will submit an initial proposal to cooperate in the revitalization of the Jakarta-Surabaya railway lines, Indonesian Transportation Minister Budi Karya Sumadi said here on Monday.

Based on the results of the meeting between President Joko Widodo and Japanese Prime Minister Shinzo Abe, the Indonesian government has requested Japan to draw up an initial proposal for the project on Javas north coast.

"The President has given an opportunity to the Japanese government to submit the proposal," he said.

Budi said the proposal would also contain a pre-feasibility study and agreement on the investment for the project.

He said the proposal from Japan would later be matched with the results of a study made by Indonesia's National Development Planning Board.

"We will conduct a study, while Japan also submits a proposal, and later the two will be matched," he said.

The minister said the Indonesian government has asked Japan to write an initial proposal as a prudential standard, in view of the value of the project, which is Rp80 trillion.

"This regards the future of the nation's transportation, so we have a prudential standard for it," he said.

Japan had earlier requested a government-to-government cooperation scheme for the project, but the National Development Planning Board has offered other funding options besides seeking funds from the national budget, such as a government to business cooperation scheme.

"The head of the National Development Planning Board has offered a government to business scheme, but Japan is still insisting on a government-to-government scheme," the Director General of Railway Service of the Ministry of Transportation, Prasetyo Boeditjahjono, said.

He added that Japan has continued insisting on the government-to-government scheme, because they considered it to be a quicker route to funding and development.

He said Japan thought it would be difficult to implement G-to-G or Business-to-Business schemes, because Japan knew more about transportation infrastructure development.

He said the greatest possibility for the implementation of the government-to-business scheme was for the procurement of facilities and maintenance, because it would be difficult to return the entire investment for the project.

"This is because the allocation of funding for facilities could reach 80 percent of the total cost of development, and that is huge. How will the investment be repaid?" he asked.

He also said the project, on the other hand, was different from a toll road development project, in which capital return is faster.

"The two projects are far different," he said.

In view of that, Prasetyo said the medium-high speed railway project was the obligation of the government.

"Until now, we have used the national budget as the reference to ease discussions," he said.

He noted that the decision, with regard to the funding of the project, would only be made after the feasibility study and detailed engineering designs were finished.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017
http://m.antaranews.com/en/news/108981/japan-to-submit-proposal-for-railway-project

 

[striver44]

How Will the Indonesian Economy Perform in 2017?
Indonesia’s central bank predicts that the economy will grow between 5% and 5.4% in 2017.

The Indonesian economic center of Jakarta. (Photo source: Pixabay/Fuzz)

Jakarta, GIVnews.com – As Indonesia becomes one of the most important emerging markets in the world, its economic performance is monitored by businesses and investors around the world.

The Indonesian economic grew by 5.02% in the third quarter of 2016, faring no better than the previous quarter’s growth of 5.18%, as reported by nusantaranews.co.

Believed to have been affected by a decreasing trade value and export, the economic growth did not meet government’s target of 5.2%.

On such target, Finance Minister Sri Mulyani had previously warned that Indonesia should be realistic in setting up economic growth target.

The minister is in the opinion that Indonesia could only reach 5.0% to 5.1% of growth as a results of an increasing interest rates set by the US central bank – the Fed – and Superior Energy Services (SPN).

Nonetheless, despite a slowing economic growth in the last quarter, Indonesia performed better compared to neighboring countries. China’s reported economic growth was stagnant at 6.7% in the same quarter, while Singapore’s growth slowed down from 2.0% to 0.6%.

The non-oil and gas sector had contributed to 17.28% of the of the gross domestic product (GDP) in the third quarter of 2016, as reported by Republika. Among them, four subsectors that formed the significantly contributed to the non-oil and gas sector were the food and beverages industry (33.61% contribution), the metal items, computer, electronics, optics, and electrical equipment industries (10.68% contribution), the transportation equipment industry (10.35%), and the chemical, pharmaceutical and traditional medicine industry (10.05%).

From January to November 2016, the non-oil industry has booked $99.65 billion or 76% of the total national export, which is higher than the same period last year. In addition, there is also a 19.6% increase in domestic investment and a 53.6% increase in foreign investment compared to the same period last year. As a result, in August, there was a 1.87% increase of total employment in the industry sector as compared to the same period on the previous year.

Meanwhile for 2017, the Indonesian economy is expected to grow faster than in 2016. But according to Bank Indonesia Senior Deputy Governor Mirza Adityaswara, such growth is affected by the Chinese economy and the US interest rate.

“If we were to talk about the 2017 (economic) outlook, that will depend on two things. First, the Chinese economy; second is the US interest rate. These are the biggest factor that could influence the Indonesian economy,” said Indonesia’s central bank Mirza Adityaswara said as reported by okezone.com.

China’s economic improvement will reportedly increase commodity price, boosting economic growth in Sumatra and Kalimantan, the two regions that depends on both the mining and plantation industries.

Indonesia’s central bank predicts that the economy will grow between 5% and 5.4% in 2017.

 

[Kalazan]

Indonesia Among Asia's Top Destinations Attracting Investors: ECN Survey
Jakarta. Indonesia is among Asia's most attractive investment destinations, thanks to a robust private demand combined with expectation of improvements in its business climate, a survey from The Economist Corporate Network (ECN) showed.

Published on Tuesday (17/01), the survey — titled "Navigating Asia's Risks and Rewards: Asia Business Outlook Survey 2017" — asked 223 Asia-based business executives in November last year about how their business were performing and their expectation for the year ahead.

ECN is The Economist Group's global advisory service that offers business intelligence briefings, presentations and advice to its subscribers in the so-called "growth markets."

"Respondents viewed government responses to political and economic risks in Indonesia, Myanmar, Vietnam and India as most likely to positively impact business prospects in 2017," a report from the ECN that details the survey said.

The survey also said that "executives were most optimistic about Indonesia, Myanmar, Vietnam and India. These countries were ranked by around 50-60 percent of those surveyed as having responded to risks in ways that will result in some kind of improvements for business."

On Indonesia, the survey says about 53.7 percent of the respondents said they will increase their investment in Indonesia, Southeast Asia's largest economy.

The archipelago nation also only falls behind China (71.6 percent) and India (55.7 percent) in the category of top destinations for attracting investors.

The ECN said Indonesia will comfortably remain Asean's largest economy next year, with a GDP in cash terms about two-and-a-half times that of Thailand, the bloc's next-largest economy.

Despite receiving positive notes from respondents, the ECN's report says it "remains skeptical" about the ability of President Joko Widodo "to enact significant business reforms."

On the positive side, "robust private demand" is expected to lift corporate revenue streams.

Overall, respondents were bullish about the prospects of their businesses within Asia this year amid political and economic headwinds.

This year's survey even showed the most improved sentiment among executives in the last five years.

About 53 percent of the Asia-based respondents at the end of 2016 said their companies' expectations for revenue growth in the coming year had improved. Compare it to 37 percent a year earlier.

"On the political front, nationalism and anti-globalism are gaining momentum while on the economic front, commodities, currencies and emerging markets are facing enormous strains," Rob Koepp, The Economist Corporate Network director, said in a statement.

Koepp said the survey's results will allow companies to counter these business threats by developing strategies that are "rooted in realities on the ground."



jakartaglobe.id

Good news for Aceh Province...

North Sumatra–Aceh train to operate by 2019

State-owned railway company PT Kereta Api Indonesia (KAI) has set a target to reactivate the trans-Sumatra train connecting Medan in North Sumatra to Aceh by 2019.

The vice president of the company’s regional division I North Sumatra, Mateta Rijalulhaq, said that the project had been speeded up to meet the high public demand for a train to serve the route.

“I was told by the railway directorate general that the trans-Sumatra railway track will be ready for operation by 2019,” Mateta told The Jakarta Post at his office on Monday.

He said that the target was not too ambitious, considering that so far, three railway stations, ones that had been built during the Dutch colonial era and subsequently closed, had been reactivated in Aceh since November 2016.

The three stations are Krueng Geukeuh, Bungkaih and Krueng Mane. All are located in North Aceh. They are connected by tracks with a total length of 11.3 kilometers and are served by the Cut Meuthia train with 10 return trips a day.

In March 2016, President Joko “Jokowi” Widodo officially launched the reactivation of the trans-Sumatra railway’s 80-kilometer Binjai-to-Besitang section.

According to recent data, 299.85 km of the trans-Sumatra railway track are in operation. Of that distance, 288.5 km are located in North Sumatra.

Of the planned 1,574.5 km of track to be operated for the transSumatra railway train, 411.5 km will be located in North Sumatra, while 600 km will be built in Aceh and the remaining 563 km will be in Riau.

The construction of the whole length of track is expected to be completed by 2021. The total budget needed for this project is Rp 22.073 trillion (US$1.6 billion).

Mateta said the operation of the passenger and freight trains has received a warm welcome from locals, adding that in Aceh between 200 and 300 passengers had been using the service daily for a fare of Rp 1,000 per trip.

He said the three available stations would later be connected directly to the stations in Medan. “People do hope to have a train that connects North Sumatra to Aceh,” said Mateta.

He added that the reactivation of the North Sumatra–Aceh railway track was started from Binjai Station in North Sumatra. The operation would be gradually extended to the Medan-Besitang route, covering a distance of 80 km, and afterwards continued to Langsa and then North Aceh.

Mateta also said that most of the tracks used for the trans-Sumatra railway were a legacy from the Dutch colonial administration.

“Except in Bireun, we will build a new track there,” he said, adding that most parts of the route passed by local people’s plantations and residences.

Separately, spokesperson of PT KAI’s Divre I North Sumatra, Joni Martinus, said that people’s interest in using trains for transportation was high as shown by the increasing number of railway passengers every year. “This year, we have the target to serve 3,289,208 passengers, a 7 percent increase compared to last year’s figure of 2,998,994,” Joni said.

jakartapost.id

 

[striver44]

Infrastructure Update Indonesia: LRT, Energy, Airports & Toll Road
09 January 2017
The controversial Batang power plant in Central Java is expected to be completed in 2020 now all land acquisition disputes have been resolved. This USD $4.2 billion power plant experienced a long delay as about a dozen of local farmers were reluctant to sell their land to the developers of the project. In February 2016 Indonesia's Supreme Court ruled in favor of the project developers. Indonesian President Joko Widodo is a supporter of this project.

The support of Widodo implies that he prefers to look at the wider economic and social benefits of the project, namely enlarging the country's infrastructure and energy capacity, over the preference of a limited number of local residents who try to maintain their ancestral land. This is a bit similar to the "Suharto-approach" although the government now has to rely on the courts (rather than the army) to expel landowners (and therefore it takes much more time). Widodo's support for the project has led to some concerns about human rights (abuses) in Indonesia.

The 2 GW coal-fired Batang power plant will be connected to the Java-Bali power grid and state utility firm Perusahaan Listrik Negara (PLN) will purchase electricity generated by the power plant under a 25-year power purchase agreement. After this period, ownership will be transferred to PLN (under the so-called "build, operate, own and transfer" scheme).

Ayu Widianingrum, spokeswoman for Bhimasena Power Indonesia (BPI), said the Batang power plant will become the largest plant in Southeast Asia and is to use the latest environment-friendly technologies.

Bhimasena Power Indonesia constructs the plant and afterwards will also operate the plant. BPI is a joint venture (JV) created by Indonesian coal miner Adaro Energy and Japan’s Itochu Corporation and Electric Power Development Co. Ltd. (J-Power). The Japan Bank for International Cooperation (JBIC) agreed to a USD $3.4 billion loan for the construction of the Batang power plant.

Light Rail Transit (LRT) in Jakarta

Meanwhile, in March 2018 the first passengers are expected to take the light rail transit (LRT) system that connects Cibubur to Cawang in East Jakarta. According to Indonesian Transportation Minister Budi Karya Sumadi, the technical progress of this 14.5-kilometers LRT project is now completed for 12 percent and therefore it should be able to open in early 2018 (before the 2018 Asian Games). He added that it uses precast technology that is also used in China, Hong Kong, Singapore and Japan.

The LRT system aims to enhance connectivity, particularly between Jakarta and the satellite cities such as Bogor, Depok, and Bekasi. The Jakarta LRT, which is Indonesia's first LRT system, is one of the many infrastructure projects in Indonesia that was delayed for many years. However, after the central government and local Jakarta administration set aside their differences about the route, rail model and other issues, they finally gave the green light for the start of the project in mid-2016. This project consists of one LRT track within Jakarta and one outside Jakarta that connects the satellite cities (Bogor, Depok, Tangerang and Bekasi) around Jakarta.

Operations of Airport Transferred

The Indonesian Transportation Ministry also announced that it plans to transfer operations of two airports - Radin Inten II in Lampung (Sumatra), Sentani Airport in Jayapura (Papua), or Komodo Airport in Labuan Bajo (East Nusa Tenggara) - to state-owned operators Angkasa Pura I and Angkasa Pura II in a bid to allow more commercial management of domestic airports.

In the future, more operations of airports will be transferred to state-owned airport operators (from the Transportation Ministry's technical operative unit), a process that will be conducted in stages. This will enhance flexibility in terms of pursuing commercial expansion of the airports as the Transportation Ministry is limited to funding from the state budget.

The Indonesian government opened airport management to foreign investors. Foreigners can now own up to 67 percent of local airport operators (but not the airport itself). A local company will need to take up the remaining 33 percent by teaming up with the foreign investor.

Toll Road Development in Indonesia

The Indonesian government also plans to open the toll road connecting Jakarta to Semarang (Central Java) before mid-2017 in order to provide an alternative for motorists and limit severe traffic congestion during the Idul Fitri exodus in June.

At least three toll road sections - Pejagan-Pemalang, Pemalang-Batang and Batang-Semarang - should be ready by June 2017. This would cover a total of 171.5 kilometers and is estimated to cost IDR 23.1 trillion (approx. USD $1.7 billion).

The Indonesian government seeks to build 395 kilometers of new toll roads in 2017, bringing the total distance of the nation's toll road network to 567.9 kilometer. The government wants to expand the network further to 1,182.7 kilometers in 2018 and 1,851.4 kilometers in 2019.

 

[Nike]

World Bank estimates Indonesia to grow at 5.3 percent
Rabu, 18 Januari 2017 14:03 WIB - 0 Views

Jakarta (ANTARA News) - In the Indonesia Economic Quarterly report released here on Wednesday, the World Bank has forecast that Indonesias gross domestic product will reach 5.3 percent in 2017.

According to the report, Indonesias fiscal policy credibility has been improving coupled with more realistic revenue setting mentioned in the Budget 2017.

"In the Budget 2017, there has been an improvement in the quality of government spending, and fund allocation has been maintained for development in areas of infrastructure, health, and social assistance," World Bank Country Director for Indonesia Rodrigo Chaves stated.

He believes that the government budget is allocated to realize better targets for energy subsidies and social assistance programs for the poor.

"It is important for Indonesia to maintain the momentum of the reforms in order to achieve development targets effectively," Chaves noted.

According to the World Bank report, two steps can be taken to improve the quality of government spending.

Firstly, expenditure should be relocated to the priority sectors of infrastructure, health, and social assistance, with low-level expenditure that can have a positive impact on poverty reduction and growth.

Secondly, maximizing the impacts of spending in all sectors, including agriculture, education, and social assistance.

The report also highlighted that better growth in 2017 will be supported by private investment, which has shown an increase, due to the monetary policy in 2016 and a better investment climate.

Private consumption is also expected to increase in 2017 due to low inflation and improving consumer confidence, which is supported by the stable value of the rupiah.

However, low revenue poses risks in lowering the growth due to global policy uncertainty and financial turmoil in financial markets.

To increase tax revenues, Indonesia needs to accelerate administrative reforms and tax policies.

Meanwhile, continuous recovery in the commodity prices can increase growth risk.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017

http://m.antaranews.com/en/news/109000/world-bank-estimates-indonesia-to-grow-at-53-percent

 

[striver44]

'It Looks Like a Cricket': Jakarta's Acting Governor Wants MRT Trains to Be Redesigned

Jakarta. Jakarta's acting governor Sumarsono said on Tuesday (17/01) he wants the trains for the city's MRT, or Mass Rapid Transit, system to be redesigned as they currently "look too much like a cricket."

Sumarsono, temporarily taking the governor mantle from Basuki "Ahok" Tjahaja Purnama who is on leave for his re-election campaign, said the current design of the trains is not aerodynamic and has not been consulted with the Jakarta administration.

"When the contractors presented the design, around 90 percent of the people in the meeting said, 'How did we end up with this design?' No one remembered approving it," Sumarsono told reporters at Jakarta's City Hall.

Sumarsono had also told the reporters that the current train design looked like a cricket.

The Jakarta administration has asked the Japanese contractors, Nippon Sharyo and Sumitomo Corporation, to redesign the train.

"We expect it wouldn't cost us that much more to redesign the train," Sumarsono said.

He added that redesigning the train should not delay the completion of the MRT project, which was set to start operations in March 2018.

The MRT network is expected to relieve traffic congestion in Indonesia’s capital.

Its North-South line, the first to be completed since the project was inaugurated in October 2013, will connect Kampung Bandan in North Jakarta and Lebak Bulus in South Jakarta on a 23.3 kilometer-long track.

The first phase of the project, funded by the Japan Bank for International Cooperation (JBIC) that later merged into the Japan International Cooperation Agency (JICA), is expected to open in 2018.

The Jakarta MRT is estimated to cost at least $1.7 billion and should be fully completed by 2027.

The Jakarta administration will be the main owner of the project.

 

[pr1v4t33r]

'It Looks Like a Cricket': Jakarta's Acting Governor Wants MRT Trains to Be Redesigned

Crickety design

Revised design

http://mashable.com/2017/01/18/indo...ource=feedburner&utm_medium=feed#IbO0.GWUngqY

 

[striver44]

i actually don't think those are really that much big of a problem, in fact those cricket face could someday be an icon of indonesian railways

 

[pr1v4t33r]

yeah, It's not a big deal. But i do prefer the new design... Now it's properly looks like caterpillar

 

[katarabhumi]

I like "cricket" design more coz it looks like something comes out from Tokusatsu hehe

 

[Nike]

Indonesian govt approves Rp6.43 trillion for infrastructure improvements
Rabu, 18 Januari 2017 20:09 WIB - 0 Views

Basuki Hadimuljono. (ANTARA)

Jakarta (ANTARA News) - The Ministry of Public Works and Public Housing has approved 952 contracts for infrastructure improvements in Indonesia worth Rp6.43 trillion.

Minister of Public Works and Public Housing Basuki Hadimuljono, said on Wednesday that at least 68 contracts out of the 952, worth RP1.58 trillion, have been approved by committee officers and contractors at the ministrys working meeting last Tuesday.

The approved construction projects include road maintenance, bridge construction, road construction at border areas, as well as some housing projects.

Other projects including extension of fresh water pipeline and restoration of irrigation channels have also been approved. The contracts were allocated during a project auction held in October 2016.

Hadimuljono appointed staff from his ministry to oversee all project auctions, where 10,403 contracts worth RP69.61 trillion up to March 2017 are up for auction.

He said his target for the ministry is to allocate 1,523 construction projects, worth RP11.58 trillion, by the end of January 2017.

He added that many local contractors participated and won construction projects at the auction. He hoped that these local contractors can improve both the quality of their work and their competitiveness.

The signing of the contracts also reflects an acceleration of infrastructure developments in Indonesia.

Hadimuljono hopes that his ministrys efforts can provide additional employment and improve Indonesias national development, as well as support its economic growth.

(Reported by Edy Sujatmiko/Uu.B019/INE/KR-BSR/A014)
Editor: Priyambodo RH

COPYRIGHT © ANTARA 2017

http://m.antaranews.com/en/news/109...p643-trillion-for-infrastructure-improvements

 

[striver44]

I like "cricket" design more coz it looks like something comes out from Tokusatsu hehe

we should give at least some sense of humor to our national project

 

[Nike]

Indonesia encourages increased Singaporean investment
Rabu, 18 Januari 2017 18:57 WIB - 0 Views

Deputy Foreign Affairs Minister Abdurrahman Mohammad Fachir. (ANTARA)

Singapore (ANTARA News) - Deputy Foreign Affairs Minister Abdurrahman Mohammad Fachir has encouraged Singaporean businesspersons to increase investment in Indonesia in line with the commemoration of five decades of diplomatic relations between both nations.

According to a press release from the Indonesian Embassy in Singapore on Wednesday, some 250 businessmen from Singapore gathered at the Hotel Mandarin Orchard to attend a business meeting themed "Indonesia-Singapore Business Partnership 50 Years and Beyond" on Tuesday.

The event to commemorate the 50th anniversary of diplomatic relations between the two countries offers the necessary momentum to boost economic cooperation in the midst of the continuing sluggish global economy.

This momentum was supported by a significant increase in Singaporean investment in the last 10 months in 2016, totaling US$7.1 billion, or 44 percent as compared to that in the previous period.

Organized jointly by the Indonesian Embassy in Singapore and Singapore Manufacturing Federation, the business meeting was inaugurated by Singapores Trade and Industry Minister Lim Hng Kiang and the Indonesian deputy foreign affairs minister.

Members from the Industry Ministry, Capital Investment Coordinating Board, Indonesian Chamber of Commerce and Industry, and Singapores business players addressed the meeting.
(Uu.O001/INE/KR-BSR/A014)
Editor: Priyambodo RH

COPYRIGHT © ANTARA 2017

http://m.antaranews.com/en/news/109006/indonesia-encourages-increased-singaporean-investment