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Local Manufacturers Stand to Gain as Plants Leave China

Jakarta.
Relocating manufacturers from China will quicken that sector's growth in Indonesia until 2021, providing ample investment opportunities in the country's numerous industrial complexes, according to a report by real estate consultant Jones Lang LaSalle, or JLL, released on Thursday (20/04).

The study, titled "A Revival of Southeast Asian Manufacturing Hubs," said low-cost, export-oriented foreign manufacturers are facing the new reality of rising labor and land costs at a time when China is trying to refocus its economy towards higher domestic consumption rates, increased services and larger exports.

Typical manufacturing wages are now $3.90 per hour in China, compared to around $1-1.40 per hour in Indonesia and Vietnam, the report said.

"Our top picks for investing in industrial real estate are in Indonesia and Vietnam," said Regina Lim, head of Southeast Asia capital markets research at JLL.

"Indonesia's manufacturing sector is expected to grow 6-7 percent annually until 2021 – up from 5 percent in 2016 – thanks to a stabilizing currency and changes to economic policy. Meanwhile, Vietnam's edge is in its young and skilled workforce, relatively low cost base and stable political climate."

Indonesia recently implemented policies to encourage foreign participation in the country's industrial sector by providing tax incentives and relaxing restrictions in its negative investment list.

The JLL report also noted that Indonesia is looking forward to strong levels of domestic consumption as the country's middle-income population is expected to increase to 80 million by 2020 – providing wider markets for manufacturing goods.

However, there are still few listed industrial property developers in the country – the largest of which include Bekasi Fajar Industrial Estate, Kawasan Industri Jababeka, Lippo Cikarang, Puradelta Lestari, Surya Semesta Internusa and Intiland Development.

The sector grew 11.6 percent so far this year – according to Jakarta Globe's calculations – outperforming Jakarta Composite Index's total 6 percent increase.

This year, Indonesia will welcome new investments from at least eight footwear companies that plan to relocate production bases to the country from China and South Korea, said Achmad Sigit Dwiwahjono, the Industry Ministry's director general for chemicals, textile and miscellaneous industries.

Those companies will invest nearly Rp 7.6 trillion ($570 million) in Indonesia this year, much higher than last year's Rp 1.9 trillion investments in the footwear and leather products industry.

The government initially set a target of Rp 2 trillion investments in the sector this year.

JLL warned, however, that Indonesia and its Southeast Asian counterparts need to implement lasting reforms to sustain long-term manufacturing growth.

"The ability of Southeast Asia to move up the value chain will depend on the extent to which China's costs increase. It will also hinge on the growth of domestic consumption in these markets, the quality of education provided, the availability of infrastructure and the ease of doing business," Lim said.


http://jakartaglobe.id/news/local-manufacturers-stand-gain-plants-leave-china/
 
Kadin to discuss investment, trade with US VP
14 hours ago | 350 Views
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Rosan Perkasa Roeslani. (ANTARA/Rivan Awal Lingga)

Jakarta (ANTARA News) - The Indonesian Chamber of Commerce and Industry (Kadin) will meet the US delegation led by Vice President Michael Richard Pence here on Friday to discuss investment and trade potentials in the two countries.

"We will meet with him (Pence) tomorrow. We will discuss trade and investment issues," Kadin Chief Rosan Perkasa Roeslani said here on Thursday (April 20).

At the meeting, Kadin will raise the question of how to increase Indonesias exports to the US and vice versa, he stated.

"When I spoke to the (US) embassy, they did not ask us to reduce our trade or exports to the US. They want to increase exports to Indonesia. Therefore, the exports will not be reduced but will be increased," he noted.

He remarked that he will also check the Indonesian commodities which are in demand in the US at the meeting. Basically, the US needs goods and services from other countries.

Meanwhile, Pence expressed his belief that both countries will be able to scrap trade barriers, he said in a joint press briefing with President Joko Widodo (Jokowi) at the Merdeka Palace here.

He also expected the US to cooperate with Indonesia to make progress in the economic field, in particular.

He also expressed gratitude to the Indonesian government for its openness to start talks with the US team in the next few weeks. ***3***

(S012/INE)

Reported by Afut Syafril

EDITED BY INE/H-YH

http://www.antaranews.com/en/news/110557/kadin-to-discuss-investment-trade-with-us-vp
 
BRI posts net profit of Rp6.47 trillion in first quarter
16 hours ago | 348 Views
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Direktur Utama PT Bank Rakyat Indonesia (BRI) Suprajarto. (bri.co.id)

Jakarta (ANTARA News) - State lender Bank Rakyat Indonesia (BRI) posted a net profit of Rp6.47 trillion in the first quarter of 2017, an increase by 5.5 percent compared to Rp6.1 trillion in the same period last year.

"The hike was fueled by the distribution of credits, which grew above the average industrial growth as well as by a rise in fee-based income," BRI President Director Suprajarto stated at a press briefing on the banks first-quarter financial performance here on Thursday (April 20).

The bank distributed Rp653.1 trillion in credits as of late March 2017, an increase by 16.4 percent from Rp561.1 trillion as of late March 2016.

BRI earned a fee-based income of Rp2.5 trillion in the first quarter of 2017, a 29.3 percent increase compared to the same period last year when it was recorded at Rp2 trillion.

(Reported by Calvin Basuki/Uu.INE/KR-BSR/H-YH)

http://www.antaranews.com/en/news/110559/bri-posts-net-profit-of-rp647-trillion-in-first-quarter

Kalla, Pence discuss energy cooperation
15 hours ago | 415 Views
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Indonesian VP M. Jusuf Kalla (right) with United States VP Michael R. Pence in Jakarta, Thursday (April 20, 2017). (ANTARA/Rosa Panggabean)

Jakarta (ANTARA News) - Indonesian Vice President Jusuf Kalla and US Vice President Michael Richard Pence discussed energy cooperation at the Vice Presidential Office in Jakarta on Thursday.

"The discussion of the energy sector in a more macro-scope is expected to improve the Indonesian economy," Energy and Mineral Resources (ESDM) Minister Ignatius Jonan said in a press statement.

Jonan, who accompanied Vice President Kalla in the bilateral meeting added that his side will optimize the role of US Power Working Group for Indonesia, which was formed on September 25, 2015.

"I will continue to work together through this established business group, especially as we also have a target of electrification ratio up to 99 percent in 2019 and 100 percent in 2020," he said.

US Power Working Group for Indonesia consists of 42 companies and 11 agencies of the US Government.

The business group was formed to support the 35,000 MW program launched by the government.

In addition to the electricity, continued Jonan, the United States also wants to explore cooperation in the field of renewable energy (EBT).

"both countries have established cooperation in the EBT subsector through the utilization of appropriate technology to convert waste into electrical energy. Hopefully it will be intertwined with other cooperation in the same EBT sector," he said.

Meanwhile, Pence said his visit this time would enhance the strategic partnership between the two countries.

"We want to prioritize Indonesia as a business partner in the energy sector," he said as quoted in the same press statement.

Earlier, Kall asaid he had discussed with his counterpart various areas of strategic cooperation, particularly in the economic and political fields.

"Our talks with Mike Pence were centered around two issues. One of them is Indonesias economic relations with the US. Of course, we should first understand what they refer to as American first. They are thinking of how to enhance trade and investment relations with other countries, including Indonesia," Kalla noted at the Vice Presidential Palace.

Kalla said the Indonesian government is keen to witness the bilateral economic cooperation scheme that the US will develop through a comprehensive strategic partnership. Hence, Foreign Minister Retno Marsudi and Trade Minister Enggartiasto Lukita will depart for the US in May 2017.

"They (the US) want to develop relations on a bilateral basis rather than a multilateral basis, such as the TPP (Trans-Pacific Partnership) trade deal. Indonesia is not part of the TPP. Hence, we will soon negotiate on forging a strategic partnership with the US, particularly in the economic field," he stated.

The US, which initiated the TPP in 2013, has decided to drop its membership in February 2017 shortly after President Donald Trump came to power.

Regarding the focus of political cooperation, Kalla said the US, as the worlds largest democratic country, and Indonesia, as the worlds third-largest democratic nation, are seeking stable global security and peace.

"Of course, we think together of ways (to maintain) peace in many countries. Indonesia is ready to play its role (in this respect) because the country, as an ASEAN member state, does not have a say and is not part of a bloc with other countries," he explained.

Indonesia is also ready to enhance cooperation with the US in the field of counterterrorism by exchanging intelligence information and holding joint security exercises, he stated.

Pence arrived here on Wednesday night for a two-day visit. After holding bilateral talks with Kalla on Thursday, Pence visited the Istiqlal Mosque and held a dialog with figures of different faiths.

The US Vice President Pence arrived at Halim Perdana Kusuma Airport, Jakarta, Wednesday night (April 19). He was picked by ESDM Minister Ignatius Jonan and Foreign Minister Retno Marsudi, who was assigned by President Joko Widodo (Jokowi).
(Uu.A014/H-YH/INE/KR-BSR)

http://www.antaranews.com/en/news/110562/kalla-pence-discuss-energy-cooperation
 
Friday, 21 April, 2017 | 15:52 WIB
PT INKA Expands in Africa
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TEMPO.CO, Madiun - State-owned train maker PT INKA will expand its activities to Africa.

PT INKA financial and human capital director Muhamad Nur Sodiq said that the company’s commercial director late this month will be visiting Ethiopia, Zambia, Mozambique, and South Africa to promote its products.

“Hopefully, they will give a positive response,” he said in Madiun on Friday, April 21.

He noted that ASEAN member states have already used INKA products and the company is participating in a tender for diesel-electric locomotive procurement in Sri Lanka.

“We are entering the South Asian market and starting to enter Africa,” Sodiq said.

Aside from export market, he explained, the company is also improving its domestic market services, which include the launch of airport train and light rail transit (LRT) projects, as well as the production of train components and other transportation modes like articulated buses.

INKA is currently working on the Soekarno-Hatta Airport train project and collaborating with state-owned railway company PT KAI to rejuvenate its carriages.

In view of, INKA is targeting Rp2.6 trillion in sales for 2017, higher than last year at Rp1.6 trillion, which was exceeded after the company netted Rp1.8 trillion in sales.

ANTARA
 
Gov't Makes Progress on Japan-Backed Patimban Port Project

Jakarta
. The government has issued confirmation letters for location and environmental permits for the new Patimban Port in Subang, West Java, paving way for securing a crucial loan from Japan to fund the project.

"We have completed all the requirements for an environmental permit, the spatial plan for the project and confirmed the location. From our side, there should be nothing to hold back us from securing the loan," Tonny Budiono, the director general of sea transport at the Ministry of Transportation, said on Tuesday (18/04).

Japan International Cooperation Agency (JICA) is expected provide an $1.7 billion loan to finance the new port.

Patimban will help ease traffic at Tanjung Priok Port, which currently handles more than two thirds of Indonesia's international trade.

Tonny said the transport ministry signed the confirmation letter last Thursday, earmarking five villages with a total area of 372 hectares to be converted into the new port. The environmental permit was already issued in February, he said.

Under a 2015 presidential regulation about land acquisition for public interest, land owners in project areas cannot sell their land to any other party except the government at the market price after the government issued the confirmation letter.

The government has set aside Rp 500 billion ($38 million) to acquire the land, a process which should have been started by the Central Java land agency this week, Tonny said.

He said development will begin right after the signing of the funding agreement in June or July, slightly delayed from the previous deal-signing plan in May.

http://jakartaglobe.id/business/govt-makes-progress-japan-backed-patimban-port-project/
 
@madokafc I can't find any tourism thread on Indonesia so I would ask you here . Am currently based in Malaysia and looking for a holiday in Indonesia for 4-5 days . My friends are opting for Bali but am trying to persuade them to somewhere near the Malaysian peninsula for lesser Air Costs . Do you have any nice beach resorts in mind that are closer to Malaysia than Bali ? I will be applying for a visa from the Indonesian embassy in Kuala lumpur (which approves visa in a day for Pakistani passports ) .
 
@madokafc I can't find any tourism thread on Indonesia so I would ask you here . Am currently based in Malaysia and looking for a holiday in Indonesia for 4-5 days . My friends are opting for Bali but am trying to persuade them to somewhere near the Malaysian peninsula for lesser Air Costs . Do you have any nice beach resorts in mind that are closer to Malaysia than Bali ? I will be applying for a visa from the Indonesian embassy in Kuala lumpur (which approves visa in a day for Pakistani passports ) .
there're a lot of places in sumatra island for having a holiday near the ocean.. for example: belitong is nice. but you might need to take several flight to get there from KL.
so i would like to suggest Padang.... or anywhere else in West Sumatra. but if it must be a beach resort then Padang... there're some beach resorts there. and some island resort too... plus there's a direct KL-Padang flight.
google keywords: west sumatra beach resort
 
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@madokafc I can't find any tourism thread on Indonesia so I would ask you here . Am currently based in Malaysia and looking for a holiday in Indonesia for 4-5 days . My friends are opting for Bali but am trying to persuade them to somewhere near the Malaysian peninsula for lesser Air Costs . Do you have any nice beach resorts in mind that are closer to Malaysia than Bali ? I will be applying for a visa from the Indonesian embassy in Kuala lumpur (which approves visa in a day for Pakistani passports ) .

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Anambas Islands
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Natuna Islands
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@madokafc I can't find any tourism thread on Indonesia so I would ask you here . Am currently based in Malaysia and looking for a holiday in Indonesia for 4-5 days . My friends are opting for Bali but am trying to persuade them to somewhere near the Malaysian peninsula for lesser Air Costs . Do you have any nice beach resorts in mind that are closer to Malaysia than Bali ? I will be applying for a visa from the Indonesian embassy in Kuala lumpur (which approves visa in a day for Pakistani passports ) .

You are alone or with your family? if you are alone, try to visit Batam and Bintan Islands. You can get there through Hang Nadim International Airport. Air Asia, Lion Air, Jet star and Citilink offering many direct flight from KL to Hang nadim and all of them is very affordable.



In Batam the nightlife is quite active 24 hours (Batam is an industrial city, kind of Singapore satelite city, but everything is cheaper there) Batam itself had many beach spots and then you can try to get to Bintan by ferry and find yourself surrounded by good and beauty beach and lagoon.
 
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@madokafc I can't find any tourism thread on Indonesia so I would ask you here . Am currently based in Malaysia and looking for a holiday in Indonesia for 4-5 days . My friends are opting for Bali but am trying to persuade them to somewhere near the Malaysian peninsula for lesser Air Costs . Do you have any nice beach resorts in mind that are closer to Malaysia than Bali ? I will be applying for a visa from the Indonesian embassy in Kuala lumpur (which approves visa in a day for Pakistani passports ) .

somewhere near malaysia, well which part of malaysia you stay ? if you stay in KL you can go to Bintan Island, if you life in Sarawak, you can visit West Kalimantan. but my advice, you should go to Bintan since it more close to malaysia or even more close to singapore.

come and stay in Canopi resort, @Bintan Treasure Bay ! Asia 2nd largest Pool

special offer for every sunday IDR 299.000 for adult.
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$10 bln investment agreements signed during U.S. VP`s visit
Sabtu, 22 April 2017 06:39 WIB - 0 Views

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Vice President of the United States Michael R. Pence gave a speech in Business Leaders and Commercial Deal Signing, Jakarta, Friday (April 21, 2017). (ANTARA FOTO/Rosa Panggabean/P003)

Jakarta (ANTARA News) - The U.S. and Indonesian business sectors agreed on investment proposals worth more than US$10 billion during U.S. Vice President Michael Pences visit to Indonesia on April 20 and 21.

"This agreement reflects how great the American companies interest in investing in Indonesia is," Pence said in his address at Hotel Shangrila here on Friday (21/4).

During the visit, the two countries signed 11 business agreements, which are mostly related to information technology and energy, including oil, gas and renewable energy.

Pence and Indonesian Vice President Jusuf Kalla witnessed the signing of the newest Memorandums of Understanding (MoU), including those between Pertamina and Exxon Mobil for an LNG project worth US$6 billion, and those between Perusahaan Listrik Negara (PLN) and Pacific Infra Capital for the development of electricity generator turbines worth US$2 billion in Java and Bali.

The two countries also signed nine MoUs on the development of existing projects in the presence of Indonesian Energy and Mineral Resources Minister Ignasius Jonan and U.S. Deputy Ambassador to Indonesia, Brian McFeeters.

The MoUs were signed between Perusahaan Listrik Negara (PLN) and Applied Materials, Jababeka Infrastructure and Greenbelt Resources, PLN and Halliburton, PT Dirgantara Indonesia and Honeywell Aerospace, the Indonesian Defense Forces (TNI) and Lockheed Martin, and PT Indonesia Power, PT Pembangkitan Jawa Bali (PJB) and Power Phase.

Three other MoUs were signed earlier. They include those signed between the Samarinda city government in East Kalimantan and Next Gen, PLN and Ormat, and PLN and General Electric.

(Reported by Azizah Fitriyanti/Uu.S012/KR-BSR/B003)
Editor: Priyambodo RH

COPYRIGHT © ANTARA 2017
http://m.antaranews.com/en/news/110577/10-bln-investment-agreements-signed-during-us-vps-visit
 
Growing flight frequency of Mideast airlines to benefit Bali tourism
Senin, 24 April 2017 20:11 WIB - 0 Views

Denpasar (ANTARA News) - The Bali branch of the Indonesian Association of Tour Operators (Asita) said increase in the flight frequency planned by major Mideast airlines - Qatar Airways and Emirates Airlines between Middle East and Bali would significantly contribute to the islands tourism growth.

Qatar Airways said through its Instagram it would increase flights to three times between Doha to Bali starting May 7, 2017.

"Now there will be more reasons to see the yet untouched beauty of Bali," the airline wrote in its social media account that drew more than ten thousands of comments.

Earlier this month, another major airline from that region, Emirate Airlines of the United Arab Emirates already announced plan to increase flight frequency to twice everyday from Dubai to Bali starting July 2 this year.

The increase in the flight frequency by the two world class airlines would further draw foreign tourists to Bali, Chairman of the Bali branch of Asita Ketut Ardana said here on Monday.

Ardana said the recent holidaying visit of Saudi King Salman bin Abdulaziz Al Saud to Bali has added to the attraction of Bali for tourists from Middle East.

"Bali is already attractive but with the visit of the Saudi King and his large entourage made Bali more attractive for holiday makers from Middle East," he said.

The increase in the flight frequency by the two airlines would facilitate the transport of tourists from that region to Bali, he added.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017
 
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