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Indonesia Economy Forum

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Peninjauan Tol PanturaRombongan mobil kepolisian melintas di area tol Pemalang Batang di Kabupaten Batang, Jawa Tengah, Senin (5/6/2017). Untuk mengamankan arus mudik maupun balik, Polda Jateng menyiapkan penambahan personel sebanyak 1.105 petugas yang dibagi dari Tegal hingga Kendal, dan memasang patok-patok bantuan di sepanjang jalan tol yang diberi stiker "scotlight" per 25 meter. (ANTARA FOTO/Harviyan Perdana Putra)

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Peninjauan Tol PanturaRombongan mobil kepolisian melintas di area tol Pemalang Batang di Kabupaten Batang, Jawa Tengah, Senin (5/6/2017). Untuk mengamankan arus mudik maupun balik, Polda Jateng menyiapkan penambahan personel sebanyak 1.105 petugas yang dibagi dari Tegal hingga Kendal, dan memasang patok-patok bantuan di sepanjang jalan tol yang diberi stiker "scotlight" per 25 meter. (ANTARA FOTO/Harviyan Perdana Putra)

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Peninjauan Tol PanturaKapolda Jateng Irjen Condro Kirono (kanan) didampingi Kapolres Batang AKBP Juli Agung Pramono (kiri) meninjau perkembangan jalan tol Pemalang-Batang di Kabupaten Batang, Jawa Tengah, Senin (5/6/2017). Untuk mengamankan arus mudik maupun balik, Polda Jateng menyiapkan penambahan personel sebanyak 1.105 petugas yang dibagi dari Tegal hingga Kendal, dan memasang patok-patok bantuan di sepanjang jalan tol yang diberi stiker "scotlight" per 25 meter. (ANTARA FOTO/Harviyan Perdana Putra)
 
I just hope that current political situation will not throw this great progress and plan into dissaray. Those social justice warriors and the towelheads they are brawling with contribute almost nothing to such progress.

It's very fortunate that we have a level-headed leader in the very top position, that can wisely embrace all differences and not drawn into senseless bickering and hostility. Keep calm and work, work, work.

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Trans Sumatra Toll Progresses


Land clearing for trans sumatra autobahn section Minas-Kandis

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Massive intersection of the North Sumatra section. 10 months ago, this area was just plantations

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Part of trans sumatra toll in Lampung province, the southernmost province of Sumatra island
 
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State firms form joint venture firm to manage Trans-Java toll road

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State-owned toll road operator PT Jasa Marga and PT Waskita Toll Road (WTR) have established a joint venture company, PT Jasamarga Transjawa Tol, according to a statement published by the Indonesia Stock Exchange (IDX) on Wednesday.

The new company will run Trans-Java toll road services, including road construction, operation, maintenance and any other related businesses.

Jasa Marga contributed Rp 812.5 million (US$61,048) to the joint venture and owns 65 percent of the shares.

Meanwhile, WTR -- a subsidiary of publicly listed state construction firm PT Waskita Karya -- owns the remainder of the shares.

"The joint venture will ease the integration of operational management for the Trans-Java toll road," Jasa Marga operational director Mohammad Sofyan wrote in the statement.

“It will boost efficiency and improve services for customers and increase the firm's share in the Trans-Java toll road development and operations."

source : thejakartapost
 

PLN to issue bonds and sukuk worth Rp10 trillion
Rabu, 7 Juni 2017 04:35 WIB - 1.310 Views

Jakarta (ANTARA News) - State electricity company PT Perusahaan Listrik Negara (PLN) plans to issue bonds worth Rp8 trillion and sharia bonds (sukuk) worth Rp2 trillion this year to build electricity infrastructures.

"Proceeds from the issuance of bonds and sukuk will be used to meet investment needs to build electricity infrastructures," Chief of PLN Corporate Communication Unit I Made Suprateka said in a press statement released on Tuesday.

PLN expected to receive Rp2 trillion consisting of Rp1.6 trillion from the issuance of bonds and Rp400 billion from the issuance of sukuk this year, he said adding the rest will be obtained in the following years.

He said local rating agency PT Pemeringkat Efek Indonesia (Pefindo) has assigned its AAA ratings for the two kinds of debt securities.

Both the bonds and sukuk will be issued in three series --series A with a tenure of five years, series B with a tenure of seven years and series C with a tenure of 10 years.

PLN has appointed PT Bahana Sekuritas, PT Danareksa Sekuritas, PT Indo Premier Securities, and PT Mandiri Sekuritas as joint lead underwriters, with PT Bank Tabungan Negara (Persero) Tbk (BTN) acting as a trustee agent.

The book-building period started on June 6 and will end on 15, while the public offering period will start on July 3 and end on July 6. The bonds and sukuk will be floated to Indonesia Stock Exchange on July 12.

By the end of last year, the number of PLN customers reached 64.3 million, up by 5 percent from 61.2 million a year earlier. The company posted a net profit of Rp10.5 trillion in 2016, jumping 75.04 percent from Rp6 trillion the year before.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017
 
BPPT and ITB sign MoU on railway feasibility study
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Bandung, W Java (ANTARA News) - The Technology Application and Study Body (BPPT) and the Bandung Institute of Technology have signed a memorandum of understanding (MoU) on pre-feasibility study on increasing train speed between Jakarta and Surabaya.

"The study is to have an objective description before making a decision on the choice of technology, financing and implementation of the plan," BPPT chief Unggul Priyanto said here on Tuesday.

Unggul said the pre-feasibility study is conducted on an order from the Transport Ministry in cooperation with three higher learning institutes - ITB, Diponegoro University (Undip) and Institute of Technology of Sepuluh November (ITS).

"The feasibility study is to determine the ideal train speed between Jakarta and Surabaya. There will be study per region. Jakarta-Cirebon by ITB, Cirebon-Semarang by Undip, and Semarang-Surabaya by ITS," he said.

Cooperation between the three institutes would help the team of engineers of BPPT in settling the job soon. The feasibility studies will include geo-technical survey.

Earlier it was decided that the Jakarta-Surabaya train would equal the planned Jakarta-Bandung speed train in speed. The Jakarta-Bandung speed train is to have a speed of 300 km/hour. However, later BPPT decided the speed would be 160 kilometers per hour.

"The state railway company PT KAI wants to cover the distance in 6-7 hours. The transport Ministry wanted a speed to cover the distance in 4-5 hours. We want the type of the Jakarta-Bandung speed train, but the cost is too expensive," Unggul said.

The Jakarta-Surabaya speed train would help reduce the congestion in the Jakarta-Surabaya highways . A speed of 160 kilometers per hour could make PT KAI more competitive in speed with airlines.

"Most important is to attract more travelers to going by trains rather than by air . The ticket prices are not different too far," he added.

The pre-feasibility study is to be wrapped up toward the end of this year and BPPT will submit the study report to the Transport Ministry and the Railway Directorate General.

"After the study has been completed , the government will decide when construction is to start. It will depend on the financial condition," he said. :lol:

Meanwhile, the government has decided to select Japan as its partner in the revitalization of the railway connecting Jakarta and Surabaya, East Java.

Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan was quoted as saying earlier the preliminary feasibility study for the project started in May.

"There will be joint study with Japan and we hope that [the construction] will finish in the fourth quarter of 2019," Luhut said.

Japan lost to China in the tender for the construction of rail track for high-speed train between Jakarta and Bandung.(*)

source : antaranews
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if the speed is about 160km/h that could be mini-shinkansen, since japan also operate it. cars of them are smaller than standard Shinkansen cars.
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Government expresses commitment to increase quality of economic growth

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Jakarta (ANTARA News) - The government has expressed its commitment to increasing the quality of economic growth in an attempt to help reduce poverty, unemployment and gaps.

"The government will continue to direct its development strategy to boost economic growth and stable community revenues," Finance Minister Sri Mulyani said here on Tuesday.

To achieve quality economic growth, she noted, the government will create more job opportunities as part of its efforts to improve peoples welfare fairly.

With regard to the 2018 fiscal policy, the government has set the theme "Strengthening Fiscal Management to Accelerate Fair Growth".

The fiscal policy was directed to address several development challenges, including poverty and gaps reduction, improvement of productivity and fiscal capacity, as well as maintaining macroeconomic stability.

"To support implementation, the fiscal policy should be able to control risks both ishort and long term. In addition, the policy should be more productive, efficient, and sustainable," she stated.


The minister remarked that the governments efforts could be realized through, among others, maintaining a conducive business climate in order to encourage economic activities that create jobs, maintaining public purchasing power, increasing the effectiveness of State Budget in terms of revenues and expenditures (subsidies and targeted social assistance ), and the basic needs of the poor.

An annual economic growth rate of five percent is not adequate for the country to boost its peoples welfare, Bank Indonesia (BI) Governor Agus Martowardojo earlier stated.

"We know that the five percent growth is not sufficient to promote the peoples welfare, and so the economy must grow above five percent. To achieve it, we need structural reforms, both in the fiscal and monetary sectors as well as the financial sector," he noted during the launch of a book titled "Study of Financial Stability" here on Wednesday.

The governor said the efforts to achieve an economic growth of over seven percent must be accompanied by steps to maintain macroeconomic stability and the financial system in a way that the economy will grow at a higher pace.

"If we want the economy to grow, we must ensure that it is strong, sound, and sustainable. Sound economic growth cannot be achieved if there is no macroprudential and financial system stability," he emphasized.

He pointed out that the Indonesian economy remains stable, but the country needs to stay alert for global challenges and uncertainties, which will still cast a shadow on the Indonesian economy.

The BI has anticipated global economic pressure by strengthening the macroprudential policy and adopting several strategies, including intensifying supervision.

Other strategies adopted by BI are strengthening crisis management and expanding communication and coordination with the Committee for Financial System Stability and consulting with the House of Representatives on a mix policy.(*)

source : AntaraNews

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I Just read about the "Development gap is Shrinking among Beijing- Tianjin- Hebei" i really wish that someday in the future we can achive like what china did. not only jakarta but most city in indonesia.
 
Government to provide 60,000 hectares of land for garlic plantation
Senin, 5 Juni 2017 23:20 WIB - 2.669 Views

Jakarta (ANTARA News) - The Indonesian Government is to provide 60,000 hectares of land to grow garlic to increase the countrys production of that commodity.

"Currently we need to import no more than 500,000 tons of garlic a year. An additional plantation of 60,000 hectares of land for plantation would be needed to meet the requirement," Agriculture Minister Amran Sulaiman said here on Monday.

Temanggung in Central Java is one of potential area for garlic plantations, Amran said after a meeting with President Joko Widodo to discuss food price stability during the Islamic fasting month of Ramadhan.

In 2016, the country had only 150 hectares of garlic plantations, but currently the plantations have expanded to more than 1,000 hectares, he said.

"Next year we hope to expand the plantations to 5,000 - 10,000 hectares," he said.

The minister said the government could provide up to 60,000 hectares of land suitable for garlic plantations.

In 2017, the ministry hoped to expand garlic plantations in Temanggung to 800 hectares and to 10,000 hectares in 2018 and 20,000 hectares in 2019.

The ministry also provided aid program of Rp15 billion for farmers to grow garlic in Temanggung.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017


preparation to fight vampir
 
Indonesia ready to develop Nigeria`s palm oil industry
6th June 2017 | 2.623 Views

Jakarta (ANTARA News) - During a visit to Abuja on Monday (June 5), Indonesian Foreign Minister Retno Marsudi conveyed to her Nigerian counterpart Geoffrey Onyeama that Indonesia is ready to cooperate to develop Nigerias palm oil industry.

Both foreign ministers discussed cooperation in the palm oil industry, as Nigeria is currently diversifying its economy, including the development of the palm oil industry.

To this end, the Indonesian government has invited Nigeria to join the Council of Palm Oil Producing Countries established by Indonesia and Malaysia.

"Close cooperation between palm oil producing countries will contribute to creating price stability and ensuring sustainable palm oil production," Marsudi noted in a press release received by ANTARA on Tuesday.

During the bilateral meeting with Onyeama, Marsudi also conveyed that Indonesia and Nigeria are two big economies in their regions with complementary economic advantages.

Hence, it is only natural that trade and investment relations between the two countries should be intertwined and improved.

"The focus of Indonesias foreign policy on Africa has offered a strategic momentum to enhance Indonesias economic cooperation with Nigeria," Marsudi stated.

The two foreign ministers also focused on discussing efforts to improve trade and investment cooperation, as there is still plenty of room to increase trade and investment cooperation between the two countries.

Nigeria is Indonesias largest trading partner in Sub-Saharan Africa, with trade value between the two countries reaching US$1.5 billion in 2016.

Nigeria is also the main destination country for Indonesian investment in Africa, as some 14 Indonesian companies are investing in the country. In addition, Nigeria is one of the important countries for realizing Indonesias energy security.(*)

http://www.antaranews.com/en/news/111253/indonesia-ready-to-develop-nigerias-palm-oil-industry

1.000 tons of rice aid from Indonesia arrive in Somalia
Rep: Febrianto Adi Saputro, Sri Handayani/ Red: Reiny Dwinanda
Feisal Omar/Reuters
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Children in Al Cadaala refugee camp, Mogadishu, Somalia.

REPUBLIKA.CO.ID, MOGADISHU -- The ship brought 1.000 tons of rice aid from Indonesian people arrived at Mogadishu Harbor, Somalia on Monday (June 5). The rice were received by Somalian Minister of Humanity and Disaster Mariam Kasim.

The ceremony was attended by Deputy Governor of Mogadishu Mohammad Salah and a wellknown Islamic priest in Somalia Syeikh Bashir. Ministry of Humanity was a new ministry to resolve famine.

A small ceremony held in Port of Mogadishu. Forty containers were taken out from MSC Capri, which sailed from Tanjung Perak Harbor, Surabaya, 35 days ago.

“Thanks to Allah, we say thank you to Indonesia which has collect the aid for their brothers in Somalia. May Allah repay it all. I would asked the Somalian Famine Committee to distribute the rice to the needs," said Maria Kasim in a press release received by Republika.co.id, Thursday.

In Mogadishu Port, an ACT volunteer Ahyudin stated his gratitude for the aid for Mogadishu. He hoped it could alleviate the suffering of the people there.

Director of Global Humanity Response ACT, Bambang Triyono said the aid would be distributed to 200 thousands of people in three provinces in Somalia. About 500 tons would be distributed to Banaadir, 250 to Southwest State, and 250 to Hirsshabelle.

“This is come from the goodness of Indonesian people, please pray Indonesia to be a strong nation, a blessing country by Allah SWT," he said.


http://en.republika.co.id/berita/en...-of-rice-aid-from-indonesia-arrive-in-somalia
 
Nigeria interested in Indonesian railway coach
Rep: Dessy Suciati Saputri, Sri Handayani/ Red: Reiny Dwinanda
Antara/Aditya Pradana Putra
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PT KAI's railway coach

REPUBLIKA.CO.ID, JAKARTA – Foreign Minister Retno Marsudi said Nigeria was interested in the railway coaches produced by PT. Industri Kereta Api (KAI). In her visit to Nigeria, both countries talked about potential cooperation on the business.

Retno said President Joko Widodo (Jokowi) had instructed to follow up the cooperation. “To follow it up, we had processed some, for example by PT Inka. They talked to ministry of transportation and Nigerian corporations. Some were interested to buy it,” said her in Presidential Palace, Jakarta, on Thursday (June 8).

Nigeria was not only interested in buying Indonesian railway coaches, but they also asked capacity building for its human resources. There were also a signing of cooperation between Garuda Maintenance Facility and a Nigerian Airways in plane maintenance. Retno said the two-years-cooperation valued about 3.4 million US dollar.

During her visit, Retno joined a meeting with 14 Indonesian corporate operated in Nigeria. Most of them had dominated their own markets. Business on instant noodles had been developed in Nigeria and brought good chances for Indonesia.

http://en.republika.co.id/berita/en...igeria-interested-in-indonesian-railway-coach
 
Indonesia to increase exports to Nigeria
Red: Reiny Dwinanda
Antara/Sigid Kurniawan
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Foreign minister Retno Marsudi

REPUBLIKA.CO.ID, JAKARTA -- The Indonesian government strives to increase its exports to Nigeria to strengthen bilateral economic cooperation, one of them by offering strategic products of PT Dirgantara Indonesia and PT PAL, foreign minister Retno Marsudi has said.

"Therefore, we tried to diversify (the exports) by not only focusing on the export of goods but also other things of good prospects," the minister said here on Thursday after meeting President Joko Widodo to discuss the results of her visit to Nigeria undertaken to establish direct trade.

Marsudi further stated that the Garuda Maintenance Facility, PT INKA, and BP POM (food and drug supervision agency) were also ready for cooperation both in the field of aircraft maintenance and supply of railway carriages and pharmaceutical industries.

The Indonesian government is paving the way for the development of Indonesia's investment abroad, such as Nigeria, by sharing the experience of companies already investing in the country, she disclosed.

"Hence, we tried to see whether any obstacles occur in each of the (exported goods). Later, it is discussed in my meeting with the Nigerian foreign minister and (Nigeria's) acting president to attract their attention," Marsudi revealed.

The total trade of Indonesia and Nigeria in 2016 was recorded at US$1.5 billion. Nigeria is home to 180 million people, making it a potential economic cooperation partner for Indonesia in the African continent.

Marsudi paid a courtesy call to the Vice President of Nigeria Yemi Osinbajo, who also acts as the acting president of the country.

During the visit, a Memorandum of Understanding (MoU) on aircraft maintenance cooperation between Garuda Maintenance Facility (GMF) and Max Air Ltd Nigeria worth $ 3.4 million was signed.

The MoU mentioned that GMF will undertake various maintenance of Boeing 747-400 aircraft belonging to Max Air, including providing technical assistance for the onsite support operation in Nigeria.

Marsudi noted that although some Indonesian products are already well known in Nigeria, such as instant noodles, radial tires, pharmaceutical products, soaps, beverages and other food products, a very large room is still open to improve trade and investment cooperation.

During the visit, Marsudi also attended the Indonesia-Nigeria business forum, which was participated by around 140 Nigerian entrepreneurs, among others from the pharmaceutical sector, transportation, food and beverages, as well as manufacturing.

Some business sectors from Indonesia attending the forum include representatives of the Indonesian Chamber of Commerce and Industry (Kadin), the Garuda Maintenance Facility, PT INKA, Indonesia Eximbank, PT Sasa Inti, and BP POM.

Marsudi added that direct trade can provide additional benefits to both countries.


http://en.republika.co.id/berita/en...d414-indonesia-to-increase-exports-to-nigeria
 
International confidence to boost capital inflow: President
Jumat, 9 Juni 2017 05:06 WIB - 213 Views

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President Joko Widodo (ANTARA PHOTO/Rosa Panggabean)

Jakarta (ANTARA News) - President Joko Widodo expressed his belief that investment grade ratings that have been awarded to the country by international rating agencies so far would boost investment and capital inflows.

"This will create inflows of money, capital, and investment," he said in an interview with ANTARA here on Thursday.

He stated that he believed the capital inflow would not only stop at portfolio or shares in the stock market but will also go to the real sector.

"We will push the flow to the real sector. They may build factories, industrial zones, or infrastructure that we need to open as much employment as possible for the people," he remarked.

He said that the investment grade ratings reflected the international confidence in Indonesia, especially with regard to the ease of investing in the country.

"This is important for us to continue to conduct reform, simplify licensing procedures, provide more infrastructure that would determine our competitiveness, and overcome high cost at sea ports, airports, and roads," he said.

Regarding the impact of investment for ordinary people, Jokowi explained that with the inflow of capital and investment money circulation in regions would be bigger and open up employment for the local people.

"I think people will enjoy their positive aspects and job opportunities, and with bigger money circulation, welfare will be improved," he revealed.

Jokowi said that bigger money circulation in the regions would increase regional economies.

"There will be job opportunities which, in combination with bigger money in circulation, will in turn increase peoples buying power," he remarked.

He said that the buying power of the people for local commodities would rise to make farmers able to sell their produce at better prices and so will the fishermen with their catch.

"The chain effect will be like that. People often ask about the connection between investment and poverty. That is the connection. Investment will open more jobs and increase money in circulation," he pointed out.

On the occasion, Jokowi expressed his gratitude that Indonesia has been able to receive investment grade ratings from various international agencies.

"After Fitch Rating, there are Moodys, S&P, and then UNCTAD that has also increased its rating on Indonesia from eighth to fourth after US, China, and India, he explained.

The United Nations Conference on Trade and Development has put Indonesia in the fourth rank as a prospective investment destination in 2017-2019. The position is higher than in 2016, when it was at the eighth rank.

The result of UNCTADs business survey on a number of multinational companies showed that Indonesia received 11 percent responses out of the total business executives being surveyed.

The first rank went to the US collecting 40 percent responses, followed by China with 36 percent, and India with 20 percent.

Thailand was ranked fifth after Indonesia, while the Philippines was at 10th, Vietnam at 12th, and Singapore at 13th position.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017
 
For indonesian rich people..

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New Helicopter Service at Soekarno-Hatta Airport to Be Available in 2018

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Jakarta. Whitesky Aviation, a Jakarta-based charter flights company, has started the construction of a Rp 260 billion ($19.5 million) heliport in Neglasari, near Soekarno-Hatta International Airport in Tangerang, Banten, allowing immediate medical evacuation and VIP transportation to the airport.

The heliport, which is reportedly going to be the most sophisticated helicopter landing spot in the country, is located 20-kilometers the airport. It is expected to start operations next year, with a capacity of 20 helicopters at a time.

"The facilities include a helipad, a shooting point, hangar, an exclusive waiting room, office rooms, and facilities for medical evacuation," Whitesky Aviation chief executive Denon Prawiraatmadja said on Wednesday (07/06).

Whitesky is collaborating with state airport operator Angkasa Pura II and flag carrier Garuda Indonesia to develop and run the heliport.

Whitesky has a 30-year land leasing contract with AP II for the port, while Garuda Indonesia will offer the so-called helicity service for its passengers. Helicity service is Whitesky Aviation's air taxi service to transport passengers from Soekarno-Hatta to 170 landing spots in the Greater Jakarta area and 53 spots in Bandung, West Java.

Each passenger will be billed around Rp 2 million for the service.

The state ground controller AirNav Indonesia has prepared 10 corridors in Jakarta and its surrounding areas, allowing helicity service to operate at night. Currently, helicopters are only allowed to operate between 06.00 a.m. and 06.00 p.m..




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Indonesia's Foreign Reserves Hit Record High in May

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Jakarta. Indonesia's foreign exchange reserves reached a record high of $124.95 billion at the end of May, $1.7 billion more than in April, Bank Indonesia said in a statement on Thursday (08/06).

The previous record of $124.6 billion was achieved in August 2011, when Indonesia and other commodity-based economies were enjoying the global commodities boom.

The reserves are enough to cover 8.9 months of imports or 8.6 months of imports and government foreign debt repayments, the central bank's spokesman Tirta Segara said in the statement.

"The increase was primarily attributed to foreign exchange receipts, tax revenues, the government's oil and gas export, and Bank Indonesia's foreign exchange bills auction," Tirta said.

"The receipts surpassed the use of foreign exchange for repayments of the external debt, and Bank Indonesia's foreign exchange bills matured during the period."

Tirta said Bank Indonesia considers the official reserve assets as "able to strengthen the resilience of the external sector," while maintaining the sustainability of the country's economic growth.

Bank Indonesia expects the economy to grow between 5 percent and 5.4 percent this year, compared to last year's 5.02 percent, on the back of improving exports and investment.

Jakartaglobe
 
Largest Chinese firm to invest in power plants in Indonesia
Jumat, 9 Juni 2017 18:55 WIB - 197 Views

Beijing (ANTARA News) - The largest Chinese power company "China Huadian Corporation" has the opportunity to invest in power plants in Indonesia.

"The Chinese firm wants to invest in our power plants. I have suggested that it should find a good local partner," Energy and Mineral Resources Minister Ignatius Jonan informed ANTARA in Beijing on Thursday night.

According to Jonan, China Huadian Corporation is the largest power company in China, and its assets are about twice that of Indonesias state electricity company (PLN).

Jonan said that with regard to investment matters, his ministry will not discriminate investors based on certain countries.

"We do not differentiate, whether it is China, Japan, or any other country. What matters is that we are fit with it; that is all," he said after the Eighth Ministerial Conference on Clean Energy (CEM8).

One of the opportunities offered to China Huadian Co. is the construction of power plants in the governments 35 thousand-megawatt power plant program.

"This is in accordance with the directives of President (Joko Widodo) during the OBOR Conference (One Belt, One Road), which encouraged Chinese investment in Indonesia. I am following up on it," Jonan, who is a former minister of transportation, stated.

Jonan made assurance that next year, all residents of the island of Sumba, East Nusa Tenggara, will have access to electricity.

"Coincidentally, with the development of a steam power plant, Sumba may perhaps get an additional 50 megawatts of electricity," the minister, who was accompanied by Indonesian Ambassador to China Soegeng Rahardjo, noted.

The annual CEM event, held in Beijing, was attended by ministers and high-level officials from 24 countries.

At the eighth CEM, Jonan got the opportunity to hold a bilateral meeting with China, as the host.

On the occasion, Minister Jonan also encouraged several Chinese companies to increase their investment in the oil and gas sector in Indonesia.

"Some Chinese oil and gas companies have been investing in Indonesia for the past 15 years, but the number is still small and needs to be increased," Jonan added.

He said that unlike Chinese companies, oil and gas companies from the US have been investing in Indonesia for quite a long time.

"Chevron, which was known as Caltex in the past, and Exxon have been operating in Riau for about 100 years with a very big investment," Jonan pointed out.

China hosted the CEM8 in Beijing on June 6-8, 2017.

In addition to working sessions for energy ministers and other high-level policymakers, CEM8 featured a public-private action summit with keynote speakers, thematic panel discussions, and opportunities for high-profile announcements of ambitious clean energy efforts.

It also included a two-day technology exhibition demonstrating breakthrough clean energy technologies, products, and business models; and an Innovation Theater showcasing potentially game-changing clean energy innovations and inspirations.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017
 
"You cant win Southeast Asia without winning Indonesia" says Go-Jek founder

The founders of two of Indonesia's most successful companies talk growth strategies and international competition in their country's highly attractive market environment.


L-R: William Tanuwijaya of Tokopedia, Nadiem Makarim of GO-JEK and The Wall Street Journal's global techology editor, Jason Dean. (Credit: The Wall Street Journal's D.Live Asia Conference)

The beauty of building business in Indonesia today is that enterprising companies can learn from the mistakes made by their more developed neighbours, such as China and India. That insight comes from the CEOs of two of Indonesia’s most successful homegrown companies, online marketplace Tokopedia and cross-sector startup Go-Jek, speaking at The Wall Street Journal’s D.Live conference in Hong Kong today.

While Indonesia’s GDP per capita last year was around the same as China’s in 2008, according to William Tanuwijaya, CEO of Tokopedia, Indonesia today has various advantages that he thinks will lead to relatively faster growth for the ecommerce sector. “In Indonesia in 2016, if you compare, we have a $100 smartphone Android, which wasn’t available in China in 2008. We also have 4G now, which wasn’t available in China in 2008.”

“The opportunity in Indonesia is really massive,” agreed fellow panelist Nadiem Makarim, CEO and founder of Go-Jek Indonesia, which offers local transport, logistics, food and payment services and was the first startup in the country to be classified a “unicorn”, last year. “We totally skipped the desktop experience and went straight to smartphones,” he said.

Both companies have seen massive growth in recent times as a result. Tokopedia is 16 times larger today than it was in 2014, explained Tanuwijaya, while Go-Jek now has 10 million weekly active users and accounts for half of the transportations business and 98 percent of the food delivery market in Indonesia.

Both have ambitious plans for the next few years, too. “Our goal is to kill this,” said Makarim, holding up a wallet. “We target the highest-frequency middle class transactions that a person does in their daily life and move it to the smartphones. Transport, food, moving stuff, buying airtime...and then utilities, bills etcetera—our goal is to cover the gamut of transactions so you won’t be required to transact outside your smartphone.” In a country where 70 percent of the population is unbanked, he continued, it’s "practically an open market" for this kind of innovation.

This means, of course, said interviewer Jason Dean, The WSJ's global technology editor, that plenty of other companies besides Go-Jek and Tokopedia are eyeing up Indonesia a highly attractive market too. With big international players such as Grab, Uber, Alibaba, Amazon and Tencent making noise in the region, what makes the local firms think they can win, asked Dean.

Starting up as early as 2009 means Tokopedia has won a few wars already, said Tanuwijaya, mentioning eBay as one competitor his company has seen off. “We always see competition as a good thing. If you survive long enough you really win the market against all the odds,” he said.

Makarim added that the local companies retain the advantages of agility and depth over the multinationals. “As William said, there are huge hidden costs of trying to do business in multiple countries at the same time. You can do one thing really well and replicate it across countries, or you can pick one market and go deep, as Go-Jek did. In this open market we decided ‘what can we defend?’. We will defend the consumer, we decided.”

The audience appeared to share their optimism. Polled on the question “Who will ultimately dominate Southeast Asia’s consumer internet?”, many more answered 'local companies' over those from China or the US.

Both Tanuwijaya and Makarim refused to comment on rumours of investment from big names such as JD or Tencent, but both admitted that international expansion is something they would consider—when the time is right.

"You can't win Southeast Asia without winning Indonesia," said Makarim. "We have to be comfortable across all verticles and we also dont believe in expanding just for the sake of expanding."

Source: Campaign Asia-Pacific

http://www.campaignasia.com/article...-winning-indonesia-says-go-jek-founder/437116


++++


June 9, 2017 5:07 am JST
Indonesia may hike infrastructure spending 17%
Southeast Asian nation looks to attract manufacturers

JUN SUZUKI, Nikkei staff writer

Indonesia will develop its infrastructure with support from a boost in tax revenue.

JAKARTA -- Indonesia is set to expand its budget for infrastructure outlays in fiscal 2018, with government proposals outlining a jump of as much as 17%, as part of a plan to attract more businesses to the Southeast Asian nation.

The government aims to eliminate obstacles such as a lack of roads and electricity that have kept companies from entering the Indonesian market.

According to local media outlets, up to 455 trillion rupiah ($34.2 billion) in infrastructure investments are being considered for fiscal 2018. The government hopes that these efforts will help it achieve gross domestic product growth of 5.4% to 6.1% that year, a significant jump from the 5% logged last year.

Indonesia has grown steadily, underpinned by a population of about 250 million. But slow progress in the country's manufacturing sector, which is the key to increasing incomes and consumer spending, has prevented it from accelerating its economic growth.

An expected increase in tax revenue will support the country's efforts to step up infrastructure development. The government's tax amnesty scheme conducted from July through March led 960,000 people, mostly affluent citizens, to declare their hidden assets. As a result of the scheme, the country's tax base is expected to broaden significantly. Currently just 4% of the population pays taxes annually.

Some officials say the government should aim for about 6% GDP growth in fiscal 2018 to shore up support for the Joko Widodo administration ahead of presidential elections in 2019. The plan to boost infrastructure spending is set to be included in the fiscal 2018 budget proposal due in August.

(Nikkei)

http://asia.nikkei.com/Politics-Economy/Economy/Indonesia-may-hike-infrastructure-spending-17
 
Govt. to allocate Rp 2.7t for Surabaya electric tram
  • Wahyoe Boediwardhana
    The Jakarta Post
Surabaya, East Java | Fri, June 9, 2017 | 11:06 pm
2016_07_21_8635_1469105552._large.jpg
Surabaya mayor Tri Rismaharini (left) explains the Smart City concept during a visit in Batam, Riau Islands, recently. (Antara Foto/M N Kanwa)
The Surabaya administration in East Java has decided to restore its electric tram construction plan in this year's state budget (APBN).

Surabaya Mayor Tri Rismaharini said the central government agreed to allocate Rp 2.7 trillion (US$203.1 million) from the state Sharia Sovereign Bonds (SBSN) and sukuk for the project, which is targeted to finish in 2019.

“The Transportation Ministry said in the meeting that the government would allocate Rp 100 billion from the APBN this year for the Surabaya electric tram. Next year the budget will be much bigger than that,” Tri Rismaharini told journalists on Thursday.

The administration has begun the construction process of the project by demolishing buildings around the electric tram's proposed track this week.

The administration has agreed that the initial phase of the construction will start on the North/South line. The construction will start from Jl. Tunjungan to Joyoboyo Station, which stretches for 11.4 kilometers. The station will function as a depot for 25 electric trams.

In the second stage the administration will start the project from Jl. Tunungan to Jembatan Merah a distance of 6.8 km.

Risma will coordinate with state railway operator PT Kereta Api Indonesia (KAI) to revive the operation of Joyoboyo Station, and with the Surabaya Legislative Council to decide the tram fares and the government subsidy. (ecn/ebf)
 

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