Indonesia Economy Forum

[pr1v4t33r]

Mount Agung Eruption Means Fewer Foreign Tourists for Indonesia

Still, the % increase is more than double from the previous year. Looking at the number, if the promotion efforts going well and there're no major disasters happen, 17 million foreign visitor in 2018 looks possible.

 

[Nike]

Export Performance of Indonesia Improved But Lags Behind Peers
02 February 2018 |

• Indonesia Trade Promotion Center
• Enggartiasto Lukita
• Trade
• Export

Enggartiasto Lukita, Indonesian Trade Minister, said the nation's full-year 2017 exports climbed 16.2 percent year-on-year (y/y) to USD $168.7 billion. This is a positive growth pace. However, Indonesian President Joko Widodo, expressed his anger at Minister Lukita as Indonesia's export performance (especially in terms of value) lags far behind its counterparts in the Southeast Asian region.

For comparison, exports of Thailand, Malaysia and Vietnam all reached far above the USD $200 billion mark last year. Considering Indonesia is the largest economy of Southeast Asia - and contains a multitude of mining and agricultural commodities - it is frustrating for Widodo to see the nation lagging behind in terms of exports.

However, when we take a look at export volumes, then Indonesia ranks better in the regional ranking, hence one key problem for Indonesia is that its export products consist of a high amount of low added value products, such as crude palm oil (CPO). Therefore, the government should raise its efforts to push for downstream industrial development in order to become an exporter of added value products.

Another key problem is that Indonesia's logistics costs are notoriously high amid the weak state of its infrastructure, including seaport handling (fortunately the central government has been pushing for infrastructure development across the country, although it will take several years to receive the fruits of this strategy).

Meanwhile, the performance of Indonesia Trade Promotion Centers should be evaluated. These centers, which are spread across 16 cities around the world (and its network may be expanded soon by adding centers in Bangladesh, Russia, and Pakistan), aim at smoothing trade between Indonesia and the world. But one can question whether these centers function optimally.

These promotion centers, combined, cost around IDR 100 billion (approx. USD $7.5 million) each year (taken from the central government's state budget). But reportedly only around 15 percent of these funds go to promotional activities and exhibitions abroad. If more would be spent on promotional activities, then it could impact positively on Indonesia's export performance, especially if it is joined by stronger coordination between the various government ministries and agencies (currently most overseas exhibitions are organized per ministry separately, while in many cases it would be better to coordinate exhibitions with other ministries or government agencies).

https://www.indonesia-investments.c...nesia-improved-but-lags-behind-peers/item8562

 

[Nike]

India exempts Indonesian coated paper from antidumping investigation

• News Desk
  The Jakarta Post
  

Jakarta | Fri, February 2, 2018 | 02:52 pm

Oke Nurwan is the Trade Ministry's director general for international trade. (Courtesy of/kemendag.go.id)

• 
  

The Indian Directorate General of Anti-Dumping and Allied Duties (DGAD) has exempted Indonesian coated paper from its antidumping investigation, widening the opportunities for Indonesian exports to the country.

“The DGAD has exempted Indonesia, because they did not find any preliminary evidence that Indonesian coated paper exports harm Indian domestic industries,” Trade Ministry International Trade Director General Oke Nurwan explained in a written statement on Friday.

Oke said India was only investigating coated paper from China, the European Union and the United States, according to the investigation notification dated Jan. 23.

The investigation targets paper classified under HS Code 4810, which is commonly used for making magazines, catalogues, books, brochures, labels, calendars and other products.

Oke added that the exemption was proof that Indonesian exporters could compete fairly in international trade. “The government is committed to opening and securing market access for Indonesian exports,” Oke said.

According to the Central Statistics Agency (BPS), India only accounted for 5-9 percent of Indonesian exports in the years 2013 to 2017.

India’s DGAD has investigated Indonesian coated paper in 2002 and in 2003, but the Indian government decided against imposing an antidumping duty on Indonesian coated paper. (ami)

http://www.thejakartapost.com/news/...ted-paper-from-antidumping-investigation.html

 

[Nike]

Property in Indonesia: Astra & Hongkong Land to Launch New Project
02 February 2018 |

• Arumaya
• Hongkong Land
• Astra Land Indonesia
• Astra Group
• ASII
• Property

Astra International, one of Indonesia's largest diversified conglomerates, announced it will develop a luxurious residential apartment complex, called Arumaya, in South Jakarta in cooperation with Hongkong Land, a Hong Kong-based multinational property investment, management and development group. The complex is estimated to require investments worth IDR 1 trillion (approx. USD $75 million).

Wibowo Muljono, President Director at Astra Land Indonesia, said the Astra Group has been active in Indonesia's property sector since 2013 and in an attempt to strengthen its presence in this sector it formed a joint venture - named Brahmayasa Bahtera - with Hongkong Land in October 2016. Astra holds a 60 percent stake in this joint venture, while Hongkong Land owns the remaining 40 percent. Both companies are affiliates of British conglomerate Jardine Matheson Holdings.

Similar to the automotive industry where Astra has a lucrative partnership with Toyota, Astra selected Hongkong Land because this company is regarded a valuable and strategic partner to conquer the property sector. Arumaya is Brahmayasa Bahtera's third project after the Andamaya Residence on Sudirman Road in Central Jakarta, and the Asya residential complex in Cakung, East Jakarta.

Muljono said Brahmayasa Bahtera will launch the Arumaya project in February 2018. The project will consist of 262 residential units in a 22-story apartment built on a 2.6-hectares sized plot of land next to the busy T.B. Simatupang road in South Jakarta. There will be three types of units: (1) one bedroom; 55 m2, (2) two bedrooms; 82 m2, and (3) three bedrooms; 119 m2. The price is expected to be in the range of IDR 35 - 41 million (approx. USD $2,835) per square meter.

Considering the Indonesian government is eager to push for infrastructure development (the project is located near two future MRT stations: Lebak Bulus and Fatmawati), the property sector of Indonesia is finally showing some encouraging signs (after having stagnated since 2013), and the macro-economy of Indonesia is improving, Astra regards it the right moment now to launch this luxurious property project. The project is scheduled to be completed by 2022.

Muljono added that the joint venture may launch two more property projects this year (both in the Jakarta region). In total, Astra set aside a combined IDR 3.7 trillion (approx. USD $276 million) for the three projects.

Shares of Astra International rose 1.46 percent to IDR 8,700 a piece on Friday (02/02). So far this year the company's shares have climbed 4.82 percent. Astra International is one of the top companies in terms of market capitalization on the Indonesia Stock Exchange.

https://www.indonesia-investments.c...-hongkong-land-to-launch-new-project/item8563

 

[pr1v4t33r]

https://centreforaviation.com/insig...a-group-to-overtake-garuda-sia-in-2018-392739

 

[pr1v4t33r]

With Fastest Growth in Four Years, Indonesia Enters Trillion Dollar Club

Indonesia's full-year gross domestic product growth last year accelerated at the fasted pace in four years, as robust exports and investment growth compensate for weak household consumption, the Central Statistics Agency, or BPS, revealed on Monday (05/02).

The agency said the economic growth rate was 5.07 percent, the highest since 2014. In 2015, the economy grew only 4.88 percent, while in 2016 at a 5.03 percent rate.

Indonesia's nominal gross domestic product was Rp 13,558 trillion, or $1 trillion at the 2017 exchange rate. This places Indonesia in a group of countries with economies above $1 trillion, like Australia, South Korea and India.

http://jakartaglobe.id/business/fastest-growth-four-years-indonesia-enters-trillion-dollar-club/

 

[Nike]

Chandra Asri starts construction of polyethylene plant

• News Desk
  The Jakarta Post
  

Jakarta | Mon, February 5, 2018 | 02:15 pm

PT Chandra Asri Petrochemical has a manufacturing complex in Cilegon, Banten. (tribunnews.com/File)

• 
  

PT Chandra Asri Petrochemical Tbk (TPIA), Indonesia’s integrated petrochemical company, started construction on a polyethylene (PE) plant in Cilegon, Banten, on Monday.

The company said in a statement that the plant would more than double Chandra Asri’s polyethylene production capacity to 736 kilotons per annum (KPA).

The groundbreaking ceremony for the project was held at the integrated petrochemical factory complex in Cilegon, where the new plant will be constructed, with total investment of US$350 million. Chandra Asri president director Erwin Ciputra and representatives of engineering, procurement and construction companies attended the event.

The new plant, which is scheduled to be completed by the end of 2019 and start operations in early 2020, will produce high density polyethylene (HDPE), linear low density polyethylene (LLDPE), and metallocene LLDPE (mLLDPE).

The products will be used, among other purposes, for rice sacks, bottle lids and shopping bags.

The factory is being built to anticipate rising domestic demand for polyethylene, fueled by the rapid growth of the plastics and packaging industries in Indonesia, the statement says.

“Indonesia’s current PE market demand is estimated at around 1.4 million tons per annum and will continue to grow along with the country’s GDP,” Erwin said in a statement.

“Our new PE plant will be an additional source of domestic supply of PE products, replacing imports and reducing the country’s foreign exchange outflow.” (kmt/bbn)
http://www.thejakartapost.com/news/...tarts-construction-of-polyethylene-plant.html

 

[Lego Jangkar]

PT Sharprindo Dinamika Prima is a manufacturing company its manufactured from the air compressor , chain saw ,water pump,gasoline-diesel engine

 

[katarabhumi]

IMF sees Indonesia's growth rising to 5.6%
Feb 8, 2018, 5:00 am SGT

WASHINGTON • The International Monetary Fund (IMF) said Indonesia's annual growth will gradually rise to about 5.6 per cent over the medium term, led by robust domestic demand, but it cautioned against building up too much debt in the country's drive to boost infrastructure investment.

The IMF, in its annual review of Indonesia's economic policies released on Tuesday, projected inflation to remain at around 3.5 per cent, with well-anchored inflation expectations.

Indonesia's current account deficit is expected to remain at near 2 per cent of gross domestic product (GDP) due to firm commodity prices and robust exports, the fund said.

The IMF report projected Indonesia's GDP growth rate this year at 5.3 per cent, compared with 5.1 per cent last year.

"Risks to the outlook remain tilted to the downside, including spikes in global financial volatility, uncertainty around US economic policies, lower growth in China and geopolitical tensions," the IMF said.

While global growth and commodity prices could surprise on the upside, aiding Indonesia's outlook, the IMF said domestic risks include tax revenue shortfalls and larger fiscal financing needs due to higher interest rates.

The IMF welcomed Indonesia's progress in boosting infrastructure investment, but stressed the pace should be aligned with available financing and the economy's ability to absorb new investment.

"Priority should be given to financing infrastructure with domestic revenue, as well as greater private sector participation, including foreign direct investment," the IMF board said in its assessment. "This would limit the build-up of corporate external debt and contingent liabilities from state-owned enterprises."

The IMF board also called for the authorities to reduce state control and the role of state-owned enterprises in some sectors of the economy, and to improve the level and quality of education spending.

http://www.straitstimes.com/business/economy/imf-sees-indonesias-growth-rising-to-56
http://www.straitstimes.com/business/economy/imf-sees-indonesias-growth-rising-to-56
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[Nike]

Foreign exchange reserves rise to $131.9 billion: BI

• News Desk
  The Jakarta Post
  

Jakarta | Thu, February 8, 2018 | 11:53 am

Bank Indonesia has its headquarters on Jl. MH Thamrin in Central Jakarta. (JP/Wienda Parwitasari)

• 
  

Bank Indonesia has reported that Indonesia`s foreign exchange reserves increased to US$131.9 billion as of late January, up from $130.2 billion in the previous month.

The increase was attributed to tax and foreign exchange receipts from the government`s share of oil and gas exports, the withdrawal of the government`s foreign loans and proceeds from the auction of foreign currency-denominated Bank Indonesia Securities (SBBI).

"The foreign exchange receipts are needed particularly to repay the government`s foreign debt and maturing SBBI in foreign currency," BI spokesman Agusman said on Wednesday, as reported by news agency Antara.

According to the central bank, the foreign exchange reserves are enough to finance 8.5 months of imports or 8.2 months of imports and government foreign debt obligations.

The foreign exchange reserves far exceed the international adequacy standard at around three months of imports.

BI said it believed the foreign exchange reserves would help maintain the positive trend in national economic growth. (bbn)

 

[Svantana]

 

[katarabhumi]

Indonesia prepares for jump in number of airline passengers
Jakarta | Fri, February 9, 2018 | 11:12 am

The government is preparing for a significant increase in the number of domestic passengers carried by Indonesian airlines, which is estimated by the International Air Transport Association (IATA) to reach 355 million in 2036.

“We have to be ready for this jump in the number of passengers,” Transportation Minister Budi Karya Sumadi told The Jakarta Post on the sidelines of a meeting in Jakarta on Thursday. “That is why we are building more and more airports across Indonesia.”

According to an IATA press release, Indonesia is one of the fastest-growing air travel markets, ranking in the top five for the projected increase in yearly passengers by 2036. Some 355 million passengers are expected in Indonesia that year, almost three times the 120 million carried in 2016.

That figure would make Indonesia the fourth-largest air travel market in the world, ranking behind China, the United States, India and Turkey.

Previously, the minister said the government had expanded many airports across the country to anticipate the boost in both domestic and international flights, as the country also aimed to increase tourist arrivals.

Meanwhile, in Greater Jakarta, after the completion of Terminal 3 at Soekarno-Hatta International Airport in Tangerang, Baten, state-owned airport operator PT Angkasa Pura II (AP II) plans to renovate terminals 1 and 2. The latter will be used for domestic flights, while the new Terminal 3 will be used exclusively for international flights. (bbn)

http://www.thejakartapost.com/news/...for-jump-in-number-of-airline-passengers.html

Can you please re-post them on to this thread? >> https://defence.pk/pdf/threads/1001-indonesia.494080/

and of course if you have something else interesting to share please do share them there also...

.

 

[pr1v4t33r]

 

[Nike]

Indonesia posts US$1b balance of payments surplus in 4th quarter of 2017

• Marchio Irfan Gorbiano
  The Jakarta Post
  

Jakarta | Fri, February 9, 2018 | 10:53 pm

A pedestrian passes through Bank Indonesia building in the capital Jakarta. (*/TRIBUNNEWS)

• 
  

Indonesia recorded a US$1 billion balance of payments surplus in the fourth quarter of 2017 on the back of improving capital and financial accounts amid rising inflows.

The overall balance of payments surplus throughout 2017 reached $11.6 billion, indicating balanced external conditions supporting macroeconomic stability, said Bank Indonesia’s (BI) undersecretary for communications Junanto Herdiawan in a statement.

Capital and financial accounts saw a surplus of $6.5 billion in the fourth quarter last year amid investor optimism toward Indonesia’s economy and improvement in yields of domestic financial assets. However, the surplus recorded was lower compared to a quarter earlier.

The lower surplus in capital and financial accounts was caused by several factors, the first being a declining surplus in direct investment, including in oil and gas.

Another factor was a decrease in surplus of portfolio investment because of outflows of foreign money in rupiah-denominated securities given the rising uncertainty in global financial markets in the early fourth quarter of 2017.

However, the country remained to see rising capital inflows, which helped drive its foreign exchange reserves to its highest point at $130.2 billion as of December last year, sufficient to finance up to 8.3 months of imports and foreign debt.

The deficit in the current account, meanwhile, rose to $5.8 billion, or 2.2 percent of the country’s gross domestic product (GDP), in the fourth quarter of 2017. The deficit was higher compared to $4.6 billion, or 1.7 percent of GDP, recorded in the earlier quarter.

The overall current account deficit throughout 2017 stood at $17.3 billion, or 1.7 percent of GDP.

Junanto attributed the rising current account deficit to the declining surplus in the trade balance because of higher increases in imports compared to exports, and the surging deficit in the services balance.(gda)
http://www.thejakartapost.com/news/...-payments-surplus-in-4th-quarter-of-2017.html

 

[Nike]

Pertamina, PGN to connect 78,367 households through city gas network in 2018

• Viriya P. Singgih
  The Jakarta Post
  

Jakarta | Sun, February 11, 2018 | 05:24 pm

Energy and Mineral Resources Minister Ignasius Jonan (right), accompanied by Surabaya Mayor Tri Rismaharini (center), listens to the explanation from a technician of state-owned distribution company PT Perusahaan Gas Negara (PGN) after officiating a gas network in Surabaya in this file photo. State-owned energy giant Pertamina and state-owned gas company PGN will build a city gas network covering 78,367 households in 16 regions throughout this year. (Antara/ Didik Suhartono)

• 
  

The Energy and Mineral Resources Ministry has assigned state energy firms Pertamina and Perusahaan Gas Negara (PGN) to develop a city gas network connecting 78,367 households in 16 regions this year.

Funded by the state budget, the project is expected to help reduce the high proportion of imports of liquefied petroleum gas (LPG).

It is part of the larger, long-term plan outlined by the ministry to build city gas facilities connecting 3 million households by 2025 and 5 million households by 2030.

During the 2009-2017 period, it constructed the city gas infrastructure connecting 235,925 households in 31 regions across the country, of which 59,809 were linked last year alone.

Read also: Jambi proceeds with city gas program
By optimizing the use of natural gas through such a network, the ministry claims it has been able to slash LPG imports by 25,500 tons a year and cut Rp 178 billion (US$12.46 million) in subsidies annually.

“Our LPG consumption stands at 6.5 million tons a year, of which 4.5 million tons are met through imports,” Energy and Mineral Resources Minister Ignasius Jonan said on Friday.

The heavy dependence on LPG has gradually increased over the years. LPG accounted for 72.38 percent of total household energy consumption in 2016, up significantly from 41.51 percent in 2010.

Jonan further reasoned that while Indonesia’s natural gas production has reached 1.2 million barrels of oil equivalent per day, it mostly comprised methane gas, instead of the propane or butane gas used to produce LPG. (lnd)
http://www.thejakartapost.com/news/...seholds-through-city-gas-network-in-2018.html