Indonesia Economy Forum

[Nike]

Mercedes benz had assembly and production center for their truck product in Wanaherang, although only in small number of only seven units of heavy duty trucks produced every day, but it is still good considering there is indeed heavy competition against Japanese local brand here

 

[trishna_amṛta]

Mercedes benz had assembly and production center for their truck product in Wanaherang, although only in small number of only seven units of heavy duty trucks produced every day, but it is still good considering there is indeed heavy competition against Japanese local brand here

Japanese brands was never major player in Indonesia heavy truck and bus market. The major players has always been (and still does) were Mercedes, Volvo, Scania, and Caterpillar.
In fact most for intercity buses the market has always been dominated by Mercedes.

 

[Nike]

South Sumatra LRT to be operational next month
Minggu, 24 Juni 2018 22:02 WIB - 0 Views

Reporter: A Saragih

Light Rail Transit (LRT) . (ANTARA PHOTO/Nova Wahyudi)

Jakarta, (ANTARA News) - The 23 kilometer track of Light Rail Transit (LRT) of South Sumatra will be operational next month to be ready to facilitate transport of athletes in Asian games to be held in Palembang, the capital city of the province of South Sumatra.

The elevated track with 13 stations extends between the International Airport of Mahmud Badaruddin and the sport city of Jakabaring.

The completion of the project, built by state construction company PT Waskita Karya, is timed to be ready to support the Asian games.

Palembang and Jakarta will co-host the Games opening in August, 2018.

The LRT, to be operated by state railway company PT Kereta Api Indonesia (KAI), will facilitate transport of people from the airport to the city including the athletes to the Jakabaring sports city.

It will reduce the need for the use of private cars in the city of provincial city which is already faces problem of traffic jams almost everyday.

The project is estimated to cost Rp10.9 trillion must cheaper than Rp817 billion per kilometer for Malaysian LRT and Rp907 billion for the Philippinen LRT.

President Joko Widodo is expected to officially commissioning the operation of the LRT. (AS/a014)

(T.SYS/B/H-ASG/A014) 24-06-2018 19:16:09
Editor: Suharto

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[Nike]

There is huge market in Laptop segment, we are currently importing more than 3 millions Laptop, and only able to assemble at least 15.000 units locally. And resulting in huge deficit in this sector

Senin, 25 Jun 2018 14:01 WIB

Impor Laptop RI Naik Jadi US$ 426 Juta
Hendra Kusuma - detikFinance

Foto: Rifkianto Nugroho

FOKUS BERITABanjir Laptop China

Jakarta - Nilai impor Indonesia per Mei 2018 mengalami kenaikan 9,17% atau menjadi US$ 17,64 miliar dibandingkan bulan sebelumnya. Angka ini meningkat 28,12% jika dibandingkan dengan Mei 2017.

Kepala Badan Pusat Statistik (BPS) Suhariyanto mengatakan produk imporyang meningkat tinggi adalah barang-barang yang masuk dalam golongan mesin-mesin atau pesawat mekanik, salah satunya adalah laptop.

"Kenaikan yaitu mesin-mesin, kemudian laptop dari Tiongkok," kata Suhariyanto di kantor pusat BPS, Jakarta, Senin (25/6/2018).

Baca juga: Perang Dagang AS-China Tak Ganggu Ekspor RI

Berdasarkan data BPS, nilai impor laptop termasuk notebooks per Mei 2018 sebesar US$ 100,1 juta atau naik 94,34% dari April 2018 yang sebesar US$ 51,5 juta.

Sedangkan secara kumulatif dari Januari-Mei 2018 angka impor laptop termasuk notebooks sebesar US$ 425,9 juta, angka ini lebih besar dibandingkan periode yang sama di tahun 2017 yang sebesar US$ 301,9 juta, atau naik 41,06%.

"Angka impor ini berasa dari gabungan, bukan hanya dari Tiongkok," kata Kepala Subdirektorat Impor BPS Rina Dwi Sulastri.

(zlf/zlf)

 

[Nike]

Indonesian government determined to protect domestic steel market
Senin, 25 Juni 2018 21:51 WIB - 0 Views

Reporter: Sella Panduarsa Gareta

A worker is welding a 20 inch steel pipes at the Production Unit of PT. KHI Pipe Industries, a subsidiary of PT. Krakatau Steel Tbk, in Cilegon, Banten (ANTARA Photo/Asep Fathulrahman)

Jakarta (ANTARA News) - The Indonesian government is determined to protect the domestic steel market from the onslaught of imported product, along with increased production capacity, at a global level.

"As the basic component of economic growth in each country, steel industry is the mother of industry for machinery, appliance, automotive, maritime, and electronic industries," Industry Minister Airlangga Hartarto said on the sidelines of the South East Asia Iron and Steel Institute (SEAISI) 2018 Conference and Exhibition held in Jakarta on Monday.

He stated that steel producers in developing countries are anticipating an overcapacity of global steel production, which recorded a surplus of up to 700 million metric tons last year.

"In 2017, the global crude steel production saw a surplus of 1.7 billion tons, almost 50 percent of which came from China, while Southeast Asian production made up 1.5 percent of the total production," he noted.

He predicted the overproduction to have an impact on a number of aspects, including prices, job opportunities, utilization rate, and steel manufacturers` profit.

In addition, it also runs the risk of disrupting the continuation of industries, economic growth, and public welfare, he added.

On the other hand, the US, as the main steel consumer, has planned to protect its domestic steel industry by raising duties on imported steel by 25 percent.

The US policy will, no doubt, have an impact on the supply and demand in the global steel market and will eventually affect steel producers in developing nations, he remarked.

"Steel from other main steel producers, such as Japan, India, and South Korea, will likely flood the Southeast Asian market. This poses a challenge for us to anticipate any eventuality in the domestic market in the near future," he explained.

Domestic demand for crude steel currently stands at almost 14 million tons, while national crude steel production reaches 8 to 9 million tons per year. The rest is imported from China, Japan, South Korea, Taiwan, and India.

Editor: Andi Abdussalam

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[Nike]

Indonesian, Japanese foreign ministers meet to hold strategic dialog
Senin, 25 Juni 2018 18:49 WIB - 0 Views

Reporter: antara

Foreign Minister Retno Marsudi (right) received a visit from Japanese Foreign Minister Taro Kono to hold the sixth Indonesian-Japanese strategic dialogue at the Foreign Ministry, Jakarta, Monday (25/6/2018). (ANTARA/Sigid Kurniawan)

Jakarta (ANTARA News) - Indonesian Foreign Minister Retno Marsudi and her Japanese counterpart Taro Kono met to hold a strategic dialog between the two countries at the Foreign Ministry`s Office here on Monday.

Japanese Foreign Minister Kono is on his first visit to Indonesia on June 24-26, 2018, for holding a strategic dialog with Marsudi in conjunction with the 60th anniversary of diplomatic relations between Indonesia and Japan.

Marsudi and Kono met to boost bilateral cooperation in the fields of politics, security, economy, trade, and investment, among other things.

Apart from bilateral issues, the two ministers also discussed other regional and global issues of concern to both countries.

Marsudi and Kono have identified strategic cooperation, realized through the development in bilateral cooperation.

Japan is a strategic partner of Indonesia, and both ministers agree on the importance of increasing cooperation in the field of investment, particularly in infrastructure.

Foreign Ministers Marsudi and Kono also agreed to explore the possibility of making Indonesia a production base for Japanese-manufactured products aimed at third markets, including markets in the ASEAN countries.

In addition, it is important to encourage the completion of the two-day 2018 ASEAN-Indonesia General Assembly Economic Cooperation Agreement as part of the 60th anniversary of Indonesia-Japan diplomatic relations.

With regard to climate change cooperation, the two ministers welcomed the Joint Crediting Mechanism and agreed that cooperation should be implemented to offer added value and to improve Indonesia`s capacity in handling the impacts of climate change.

Both ministers also agreed on the importance of encouraging South-South and Triangular cooperation to strengthen support for economic development in Palestine and other African countries.

During the meeting, the two foreign ministers welcomed positive developments in the Korean Peninsula that are expected to bring peace and stability to the region.

Reporting by Yuni Arisandy
(O001/INE)
(T.SYS/A/KR-BSR/A/H-YH)
Editor: Heru Purwanto

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[Nike]

Import hike needed to support production sector: Finance Minister
Selasa, 26 Juni 2018 05:43 WIB - 0 Views

Reporter: Satyagraha

Workers pack chip production at a chip cottage industry in Surabaya (ANTARA Photo/Didik Suhartono)

Jakarta (ANTARA News) - Finance Minister Sri Mulyani Indrawati has stated a rise in May 2018 imports was needed to support investment in the production sector.

"The import hike was needed to support the production sector," she said in a press conference on developments in the 2018 state budget here on Monday.

The imports mostly comprised capital goods and raw materials to support production activities in various economic sectors, she said.

If the imports were reduced in a short run, investment would be disrupted and economic growth would come under pressure, she said.

After all, the government is determined to build industries producing raw materials in medium and long terms to reduce the country`s dependence on imports, she said.

"The government will always intensify its policy to build domestic industries so that the country can meet the need for intermediate goods and capital goods on its own," she said.

In addition, it will also strengthen the country`s competitive edge in order to improve its export performance and reduce its trade deficit, she said.

Earlier, the Central Statistics Agency (BPS) announced that Indonesia suffered a deficit of US$1.52 billion in its foreign trade.

Indonesia`s exports in May 2018 were valued at US$14.54 billion, up 16.31 percent compared to the previous month and up 22.28 percent year on year (yoy).

Meanwhile, imports rose 9.17 percent to US$17.64 billion compared with the previous month and up 24.75 percent yoy.

The agency noted that the oil and gas sector contributed US$1.24 billion to the trade deficit, while the non-oil/non-gas sector contributed US$1.23 billion.


Editor: Andi Abdussalam

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[Nike]

Japan to Invest More, Strengthen Maritime, Security Cooperation With Indonesia
Japanese Foreign Minister Taro Kono and Foreign Minister Retno Marsudi at the beginning of their meeting in Jakarta, Indonesia on Monday (25/06). (Reuters Photo/Willy Kurniawan)


By Sheany on 5:14 pm Jun 25, 2018
Category News , Featured , Foreign Affairs , Maritime
Jakarta. Foreign Minister Retno Marsudi and her Japanese counterpart, Taro Kono, have agreed to strengthen bilateral cooperation in maritime affairs, counterterrorism, infrastructure development and manufacturing, with the Japanese willing to expand their production base in Indonesia.

"Indonesia and Japan are not just strategic partners, we are also two important countries in the region. Our partnership contributes not only to the prosperity of Indonesia and Japan, but also to regional peace, stability and prosperity," Retno said in a press statement after a meeting Kono in Jakarta on Monday (25/06).

Retno said the two countries are working to make Indonesia Japan's production base for its Association of Southeast Asian Nations (Asean) market.

In order to facilitate this, they will review their economic partnership agreement this year.

"We agreed to intensify and expedite the general review of the Indonesia-Japan Economic Partnership Agreement [IJ-EPA] to conclude it by the end of this year," Retno said.

The IJ-EPA was established in July 2008, but has been under review for renegotiation since 2013, after concerns that it was not mutually beneficial.

In 2017, total trade between the two countries increased by around 13 percent to more than $33 billion, making Japan Indonesia's second biggest trade partner, just after China.

Last year, Japan was the second largest investor into Indonesia, making up 15.5 percent of total foreign direct investment (FDI) with $5 billion.

"Japan will help Indonesia develop infrastructure and improve business environment to attract more Japanese investment," Kono said.

Indonesia and Japan also agreed to speed up a number of ongoing investment projects, including the MRT, Patimban Port in Subang, West Java, and Jakarta-Surabaya railway development.

They will also strengthen cooperation in maritime affairs, which will cover capacity building, fisheries and maritime safety.

On Monday, the two countries signed an exchange of note on the Integrated Marine and Fisheries Centers and Fish Market to enhance cooperation in developing fisheries centers on Indonesia's outer islands, including Biak in Papua, Morotai in North Maluku and Sabang in Aceh.

According to Brahmantya Satyamurti Poerwadi, director general of marine spatial planning at the Ministry of Maritime Affairs and Fisheries, development of ports in the selected outer islands will be realized soon.

"Our objective is to prioritize these outer islands for Indonesia's fisheries industry," Brahmantya said, adding that investment to develop these areas will amount to around $54 million.

In order to improve tourism relations, Kono said the two countries will strengthen their people-to-people exchange.

"We are trying to increase the level of people-to-people exchange to 1 million people both ways. We would like to promote tourism further."

He also said Japan will support Indonesia's efforts to counter violent extremism.

Japan has been providing Indonesia with technical assistance for the 2018 Asian Games. Kono said it includes a biometric security system at the Gelora Bung Karno stadium in Jakarta, but did not elaborate further.

This year marks the 60th anniversary of Indonesia-Japan relations.

http://jakartaglobe.id/news/japan-invest-strengthen-maritime-security-cooperation-indonesia/

In conclusion,

1. Japanese corporations agree to made Indonesia as their production hub center and outsourcing much of their products to be made in Indonesia
2. Japan had giving green light to financing Jakarta Surabaya fast train
3. MRT Jakarta phase two will be started in last 2018, and all of the routes will be made underground
3. Patimban port project will commence
4. To increasing Indonesian students in Japan
Etc..

 

[Logam42]

1. Japanese corporations agree to made Indonesia as their production hub center and outsourcing much of their products to be made in Indonesia
2. Japan had giving green light to financing Jakarta Surabaya fast train
3. MRT Jakarta phase two will be started in last 2018, and all of the routes will be made underground
3. Patimban port project will commence
4. To increasing Indonesian students in Japan
Etc..

Seriously... I wonder how much of this is because Indonesia is increasingly seen as a major ballast against China's influence in ASEAN.

Japan is already gonna invest millions to improve our fishery in the Natuna area, and India has committed to footing the cost of a naval base.

 

[trishna_amṛta]

Seriously... I wonder how much of this is because Indonesia is increasingly seen as a major ballast against China's influence in ASEAN.

Japan is already gonna invest millions to improve our fishery in the Natuna area, and India has committed to footing the cost of a naval base.

It's mostly due to the Jokowi "Global Maritime Fulcrum" doctrine, and we do backing it up with diplomacy and real action to fortify Natuna islands (which is extremely strategic chokepoint)

Although if we dig in further into Jokowi "Global Maritime Fulcrum" doctrine it's actually merely an actualization of the good old "Wawasan Nusantara" doctrine, which in turn can be trace it's root to the 13th century "Cakravala Mandala Dvipantara" doctrine.

Another contributing factor is Indonesia GDP (nominal) which is currently stand at over $1 trillion with pretty stable 5% GDP growth.

There is huge market in Laptop segment, we are currently importing more than 3 millions Laptop, and only able to assemble at least 15.000 units locally. And resulting in huge deficit in this sector

Importing laptop is cheaper. Furthermore there isn't any computer manufacturing industry in Indonesia.

 

[Bennedict]

 

[Logam42]

It's mostly due to the Jokowi "Global Maritime Fulcrum" doctrine, and we do backing it up with diplomacy and real action to fortify Natuna islands (which is extremely strategic chokepoint)

Although if we dig in further into Jokowi "Global Maritime Fulcrum" doctrine it's actually merely an actualization of the good old "Wawasan Nusantara" doctrine, which in turn can be trace it's root to the 13th century "Cakravala Mandala Dvipantara" doctrine.

Another contributing factor is Indonesia GDP (nominal) which is currently stand at over $1 trillion with pretty stable 5% GDP growth.

Well you know what they say, "The more things change the more they stay the same" At least our leadership is smart enough to fallback to tried and tested wisdom. And yeah, our economic size and stability is a main reason why we've become a good economic strategic partner.

Also, due to the 'Economic Diplomacy' the government is pushing, I think that Indonesia is going to enter a lot of new markets in the coming years. It must have been awkward for our diplomats to start acting like merchants, but the economy benefits in the end.

 

[Nike]

Amdal causes a drag in development of salt factory in NTT
Senin, 25 Juni 2018 21:45 WIB - 0 Views

Reporter: Antara

Industry Minister Airlangga Hartarto addresses the inauguration of a PT. UNIchemCandi Indonesia's consumer and industrial salt factory in Gresik, East Java. (ANTARA News/Industry Ministry's Public Relations)

Kupang, E Nusa Tenggara (ANTARA News) - Director of PT Puncak Keemasan Garam Dunia (PKGD), Ziwan Hendriawan, said a plan to build a salt factory in the district of Kupang, East Nusa Tenggara (NTT) still remained in the pipeline because the license of Analysis of Environmental Impact (Amdal) has not been approved by the district administration.

"We are serious in building the factory to cost around Rp1.8 trillion in the district of Kupang , but the plan could not yet be implemented as the Amdal license is not yet approved by Regent Ayub Titu Eki," Ziwan Hendriawan said here on Monday.

He said PT PKGD plans to use a land plot of 3,720 hectares acquired by PT PKGD in 2017 from PT Pangung Guna Ganda Semesta (PGGS).

He said the local people are enthusiastic with the plan .

He said the factory is to have a production capacity of 400,000 tons per year. (AS/H-YH)


Editor: Andi Abdussalam

COPYRIGHT © ANTARA 2018

 

[Nike]

Trade balance performance estimated to improve: BI
Selasa, 26 Juni 2018 18:29 WIB - 0 Views

Reporter: antara

Bank Indonesia (BI) (ANTARA)

Jakarta (ANTARA News) - Trade balance performance is estimated to improve in line with the continued global economic recovery and high price of global commodities.

"Such development will support the improvement of economic growth prospect and current transaction performance," the director of BI`s communications department, Arbonas Hutabarat, said in a statement here on Tuesday.

Bank Indonesia considers the trade balance deficit closely relates to the increasing activities in production and investment, in line with the improving domestic economic prospect and influence of increasing price of imported goods.

Indonesia`s trade balance in May 2018 records a deficit of 1.52 billion US dollar, decreasing compared to the trade balance deficit in the previous month of 1.63 billion US dollar.

Such improvement is attributable to the decreasing deficit in non-oil and gas trade balance exceeding the increasing deficit in oil and gas trade balance.

With such development, cumulatively from January until May 2018, Indonesia`s trade balance records a deficit of 2.83 billion US dollar.

Non-oil and gas trade balance in May 2018 records a decreasing deficit to 0.28 billion US dollar, decreasing from the previous month of 0.52 billion US dollar.

The improvement of non-oil and gas trade balance is primarily attributable to the increasing oil and gas export.

Non-oil and gas export in May 2018 increases by 1.23 billion US dollar (mtm), primarily boosted by the increasing export of machinery and electrical device, ore, crust, metal ash, iron and steel, knitted goods, and lead.

Meanwhile, non-oil and gas import increases by 0.99 billion US dollar (mtm), primarily due to the increasing import of machine and mechanical device, machinery and electrical device, cereals, sugar and candies, as well as vessels and floating structures.

The increasing non-oil and gas import is attributable to strong production and investment activities. Cumulatively from January until May 2018, non-oil and gas trade balance still records surplus of 2.20 billion US dollar.

Deficit in oil and gas trade balance increases in line with the increasing import, which exceeds the export increase.

Oil and gas trade balance in May 2018 records a deficit of 1.24 billion US dollar, increasing from 1.11 billion US dollar in April 2018.

Such development is affected by the increasing import of 0.49 billion US dollar (mtm) in May 2018, boosted by the import of crude oil, oil products, and gas, higher than the increasing oil and gas export of 0.35 billion US dollar (mtm).

A063/o001
(T.A063/A/KR-BSR/A/O001)
Editor: Heru Purwanto

COPYRIGHT © ANTARA 2018

 

[Nike]

Indonesians to benefit from two financed projects: World Bank
Selasa, 26 Juni 2018 19:07 WIB - 0 Views

Reporter: antara

Illustration. World Bank. (ANTARA News/special)

Jakarta (ANTARA News) - Better nutrition for millions of Indonesian children and modernized irrigation systems for hundreds of thousands of Indonesian farming families are the key goals of the two new loans approved by the World Bank.

"We welcome the Government of Indonesia`s significant investments in infrastructure and in human capital, both of which are crucial to accelerate economic growth and reduce poverty. If the country invests on these two priorities now, its future will be more promising," World Bank Country Director for Indonesia and Timor-Leste, Rodrigo A. Chaves, said in a statement here on Tuesday.

The US$400 million loan Investing in Nutrition and Early Years Program seeks to reduce stunting by increasing access for pregnant mothers and children under two years old to key services from health and nutrition to education and sanitation.

"World Bank financing will be complemented by crucial knowledge, including best practices and lessons learned from around the world, which will help make efforts to reduce stunting more effectively," he remarked.

This loan, which will link disbursements to specific results, will support the country?s $14.6 billion National Strategy to Accelerate Stunting Prevention that aims to benefit 48 million pregnant mothers and children under two years old in the next four years.

In the entire country, the program will also benefit from a $20 million grant from the Global Financing Facility, a multi-stakeholder partnership that helps countries tackle the greatest health and nutrition issues affecting women, children, and adolescents.

The $250 million loan financing the Strategic Irrigation Modernization and Urgent Rehabilitation Project will benefit around 887 thousand farming households through a more reliable and climate-resilient irrigation system.

This financing is part of an ongoing National Reform Agenda that focuses on decentralization, democratization, and modernization and is based on the principles of participatory irrigation management.

This irrigation project is co-financed by the Asian Infrastructure Investment Bank, with a $250 million loan.

Stunting is one of the most urgent challenges in Indonesia and a top priority for the government. More than one out of every three Indonesian children under five years of age, which is almost nine million children, are stunted; two out of three don not complete the full package of immunizations in their first and second year; and iron supplementation and deworming are also low, which is at 33 and 26 percent, respectively.

In Indonesia, a country highly vulnerable to climate change effects, 60 percent of the poor -- those who earn less than $1.25 per day -- rely on agriculture for their income.

Therefore, improved irrigation in agriculture is critical to enhance food security in the country.

The new irrigation project will focus on rehabilitation and modernization of drainage systems in nearly 300 thousand hectares and will support the overall project management and implementation, which is focused on increased accountability, transparency, and cost-effectiveness.

The World Bank?s support to Indonesia?s nutrition sector and irrigation is an important component of the World Bank Group`s Country Partnership Framework for Indonesia, which focuses on government priorities for transformational development impact.

(A063/INE/B003)
(T.A063/A/KR-BSR/B003)
Editor: Heru Purwanto

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