What's new

Indonesia Economy Forum

Interesting Quora answer.
Why is Indonesia attracting fewer foreign tourists than other the Southeast Asian countries, such as Thailand, Malaysia, Singapore, and the Philippines?


Nazafarin Yusuf
, studied at University of Technology, Malaysia
Answered 9h ago

My dear, you need to get your fact straight!

OP and others are commenting about Indonesia being the least attractive for foreigner tourists in the region, but let me give you some real data.

main-qimg-9eab8a41051169cfca20e528e7a4c024

As what the picture tells, Indonesia’s tourist arrival was smaller than those in Thailand, Malaysia and Singapore but larger than Philippines., like twice as many tourists than the Philippines received last year.

As a matter of fact, tourism in Indonesia has more than doubled over the past decade that 2017 saw over fourteen million tourists visit the archipelago state.

main-qimg-ce189431f170a9f81d2f6065da71ba73

Strong growth is expected for the Indonesian industry, with indirect and induced incomes predicted to reach $141.3 billion annually by 2027, according to the World Travel & Tourism Council report.

According to that tourist arrival number, those other three countries (TH, MY, SG) tourism industries appeared to be way larger than Indonesia. But is this assumption correct? Let’s look at another fact.

These statistics come from The Travel and Tourism Competitiveness Report 2017 by the World Economic Forum which is showing hows the overall size of each tourism industry by country.

main-qimg-cf7b48e5452288b4b1fb6de8dd7d7913

As what the picture tells, the revenues from tourism amongst those countries:

  1. Thailand : $ 36.4 B
  2. Indonesia : $ 28.2 B
  3. Singapore : $ 13.9 B
  4. Malaysia : $ 13 B
  5. Philippines : $ 12.5 B
Despite Indonesia attracted much less tourists than Malaysia & Singapore, turns out Indonesia had higher Average in tourist spending than both countries.

As for Malaysia, the figure of its tourist arrival came out so big because Singaporeans and Bruneians cross border to Johor and Sarawak in Borneo just for daily needs shopping and weekend vacation... But in spending, they are less than others.

Malaysia has less to offer for tourists. Unlike Thailand, Indonesia and the Philippines, it has many islands it can offer. And in order to go to these islands, you need to travel by air, ship, land, and you need to spend money cheap or not to stay in hotels. Most developed countries spends more in beaches, than staying in Cities. Buildings are common for them that's why they prefer to spend money in beaches. It's not being cheap, it's about how much they can offer. Tourists are willing to spend more as long they enjoy their stay.. Same for the Philippines, despite being the least peaceful country in Asean, tourists are willing to spend more in the Philippines than in Malaysia, Vietnam and Singapore.

Like for example, Malaysia earns $13B/26M tourists: tourists only spends an average of $500.

Meanwhile Indonesia earns $28.2B/14M tourists: tourists spends an average of $2,014

Indonesia is also cheap for tourists, it's just we have lots to offer, tourists visit Bali, Lombok, Batam, , Yogyakarta, Bandung, Raja Ampat, Komodo island, etc. that's why we earn more.

The ministry of Tourism also notes that Westerners spend at least 50 to 60% more per visitor, mainly because they stay longer in Indonesia, typically stay two weeks or longer. Asians also have much less holiday days per year than Europeans.

So the key difference is basically that Indonesia is focusing on increasing the yield per tourists rather than the number of tourists itself.

In Malaysia, a majority of tourists are from ASEAN countries. Only a small number of tourists who come to Malaysia are Westerners.

Let’s look at another fact. These statistics come from Wikipedia:

main-qimg-f377b4baaecbababbc1a1e3fd7c871dc

About 12.5 mil in 2017 or almost half Malaysian tourist arrivals are… Singaporeans. (FYI, Singapore and Brunei population only 5.5 mil and 423,196 respectively and yet Malaysia claimed the number of tourists who came from both countries were 12.4 mil and 1.6 mil, ironic huh?)

A big chunk of these are those that cross the border everyday to work then return home in Johor and Sarawak at night.

One of my friends from AirAsia has clarified this statement (thanks WF!). Singaporean tourists are only counted if they spend at least ONE NIGHT in Malaysia, which Tourism Malaysia is following international guidelines on.

main-qimg-35fc200ab195015a6cfdf59e2134fe60-c

The low exchange rate is giving Singaporeans more disposable income, with more Singaporeans coming to Malaysia to shop for groceries, clothing or simply to holiday there. They’re mostly the middle-income group who come there to cut costs, since they pay a fraction of the price for the same stuff.

So in conclusion, except for Thailand, the rest Asean countries are not always more popular than Indonesia after all.
 
.
Interesting Quora answer.
Why is Indonesia attracting fewer foreign tourists than other the Southeast Asian countries, such as Thailand, Malaysia, Singapore, and the Philippines?


Nazafarin Yusuf
, studied at University of Technology, Malaysia
Answered 9h ago

My dear, you need to get your fact straight!

OP and others are commenting about Indonesia being the least attractive for foreigner tourists in the region, but let me give you some real data.

main-qimg-9eab8a41051169cfca20e528e7a4c024

As what the picture tells, Indonesia’s tourist arrival was smaller than those in Thailand, Malaysia and Singapore but larger than Philippines., like twice as many tourists than the Philippines received last year.

As a matter of fact, tourism in Indonesia has more than doubled over the past decade that 2017 saw over fourteen million tourists visit the archipelago state.

main-qimg-ce189431f170a9f81d2f6065da71ba73

Strong growth is expected for the Indonesian industry, with indirect and induced incomes predicted to reach $141.3 billion annually by 2027, according to the World Travel & Tourism Council report.

According to that tourist arrival number, those other three countries (TH, MY, SG) tourism industries appeared to be way larger than Indonesia. But is this assumption correct? Let’s look at another fact.

These statistics come from The Travel and Tourism Competitiveness Report 2017 by the World Economic Forum which is showing hows the overall size of each tourism industry by country.

main-qimg-cf7b48e5452288b4b1fb6de8dd7d7913

As what the picture tells, the revenues from tourism amongst those countries:

  1. Thailand : $ 36.4 B
  2. Indonesia : $ 28.2 B
  3. Singapore : $ 13.9 B
  4. Malaysia : $ 13 B
  5. Philippines : $ 12.5 B
Despite Indonesia attracted much less tourists than Malaysia & Singapore, turns out Indonesia had higher Average in tourist spending than both countries.

As for Malaysia, the figure of its tourist arrival came out so big because Singaporeans and Bruneians cross border to Johor and Sarawak in Borneo just for daily needs shopping and weekend vacation... But in spending, they are less than others.

Malaysia has less to offer for tourists. Unlike Thailand, Indonesia and the Philippines, it has many islands it can offer. And in order to go to these islands, you need to travel by air, ship, land, and you need to spend money cheap or not to stay in hotels. Most developed countries spends more in beaches, than staying in Cities. Buildings are common for them that's why they prefer to spend money in beaches. It's not being cheap, it's about how much they can offer. Tourists are willing to spend more as long they enjoy their stay.. Same for the Philippines, despite being the least peaceful country in Asean, tourists are willing to spend more in the Philippines than in Malaysia, Vietnam and Singapore.

Like for example, Malaysia earns $13B/26M tourists: tourists only spends an average of $500.

Meanwhile Indonesia earns $28.2B/14M tourists: tourists spends an average of $2,014

Indonesia is also cheap for tourists, it's just we have lots to offer, tourists visit Bali, Lombok, Batam, , Yogyakarta, Bandung, Raja Ampat, Komodo island, etc. that's why we earn more.

The ministry of Tourism also notes that Westerners spend at least 50 to 60% more per visitor, mainly because they stay longer in Indonesia, typically stay two weeks or longer. Asians also have much less holiday days per year than Europeans.

So the key difference is basically that Indonesia is focusing on increasing the yield per tourists rather than the number of tourists itself.

In Malaysia, a majority of tourists are from ASEAN countries. Only a small number of tourists who come to Malaysia are Westerners.

Let’s look at another fact. These statistics come from Wikipedia:

main-qimg-f377b4baaecbababbc1a1e3fd7c871dc

About 12.5 mil in 2017 or almost half Malaysian tourist arrivals are… Singaporeans. (FYI, Singapore and Brunei population only 5.5 mil and 423,196 respectively and yet Malaysia claimed the number of tourists who came from both countries were 12.4 mil and 1.6 mil, ironic huh?)

A big chunk of these are those that cross the border everyday to work then return home in Johor and Sarawak at night.

One of my friends from AirAsia has clarified this statement (thanks WF!). Singaporean tourists are only counted if they spend at least ONE NIGHT in Malaysia, which Tourism Malaysia is following international guidelines on.

main-qimg-35fc200ab195015a6cfdf59e2134fe60-c

The low exchange rate is giving Singaporeans more disposable income, with more Singaporeans coming to Malaysia to shop for groceries, clothing or simply to holiday there. They’re mostly the middle-income group who come there to cut costs, since they pay a fraction of the price for the same stuff.

So in conclusion, except for Thailand, the rest Asean countries are not always more popular than Indonesia after all.

Very well explained. Besides, Singapore - Johor (mal-asia) travel for both Singaporeans and mal-asians are more like a cross provincial travel than an international cross border.

Foreign invasive species would destroy local Brantas river ecosystem and could bring harmful side effects to the river (spreading of unknown parasites) and the communities along the river that may be depend on it for their livelihood. Those predators are known for attacking human.


Mass production of vehicles to boost agricultural sector in 2019
Indonesia is set to begin mass producing special multipurpose vehicles in January 2019 to support the development of the country’s agricultural sector.

5ad88e04e607c1524141572-preproptotype.jpg


Industry Minister Airlangga Hartarto said in Jakarta on Tuesday that a prototype of the vehicle, called the rural multipurpose mechanical tool (AMMDes), was being finalized and undergoing a trial run in the field in Bogor, West Java.

The minister said the trial run, which began in April, tested the performance of the vehicle's engine, chassis, suspension and transmission.

He said the prototype was made using 70 percent domestic content. “We are cooperating with more than 70 industries to supply the AMMDes components, mostly from small and medium enterprises,” said Airlangga.


The multipurpose vehicle will be launched during the 2018 Gaikindo Indonesia International Auto Show (GIIAS) in August at the Indonesia Convention Center (ICE) in Tangerang, Banten.

AMMDes is manufactured by PT Kiat Mahesa Wintor Indonesia (KMWI). The main users of the cars would be village cooperatives, village-owned enterprises and farmer or fishermen groups to boost agricultural productivity.

Airlangga said he hoped that the vehicles would speed up the distribution of goods to and from villages.

http://www.thejakartapost.com/news/...les-to-boost-agricultural-sector-in-2019.html

So cuuuute!!! Too cute to be a garbage truck. They should learn marketing from Humvee on how to market their product from pure-functional vehicle to consumer vehicle. I think it would sell well for eco-adventure tourist operators.
 
.
@Star Bugs @pr1v4t33r

Here is an advert from when the product was geared for Palm Oil Plantation.

Like bloody hell, the amount of variants this thing has is AMAZING.
Reminds me of Panzer IV and its Ausf.A to Ausf.J variants. :V

That said, it also reminds me on how this could be an interesting off-road alternative:
kettenkrad_copy.jpg

15c6a499ef41a61998e6d5117baccea7.png

838aab65f17b5d199fdf1f1c7f8065c7.jpg


Like this design was so useful that some of these sd.Kfz.2 were in active use until the 1980s.

I've seen enough of Trans7 'IndonesiaKu' to that this hybrid would be appreciated.
 
.
Pelayaran Perdana Trayek T-4 Tol Laut Rute Tanjung Perak-Makassar-Tahuna
BERITA, FOTO BERITA | MOSA MA'U | JUNE 28, 2018 15:42 | 10 PENGUNJUNG
Batasnegeri.com: Pelni Layani Tol Laut.


Sejumlah kontainer milik Pelni logistik tertumpuk di dekat KM Lambelu yang bersandar di dermaga Pelabuhan Makassar, Sulawesi Selatan, Kamis (28/6). PT Pelayaran Nasional Indonesia (Pelni) merilis pelayaran perdana trayek T-4 Tol Laut dengan rute Tanjung Perak-Makassar-Tahuna yang juga sebagai salah satu trayek tol laut yang melayani pengiriman barang ke pulau-pulau terdepan Indonesia di perbatasan.

Kapal Logistik Nusantara 4 yang melayani tol laut menurunkan kontainer muatannya saat bersandar di dermaga Pelabuhan Makassar, Sulawesi Selatan, Kamis (28/6). PT Pelayaran Nasional Indonesia (Pelni) merilis pelayaran perdana trayek T-4 Tol Laut dengan rute Tanjung Perak-Makassar-Tahuna yang juga sebagai salah satu trayek tol laut yang melayani pengiriman barang ke pulau-pulau terdepan Indonesia di perbatasan.


Kapal Logistik Nusantara 4 yang melayani tol laut menurunkan kontainer muatannya saat bersandar di dermaga Pelabuhan Makassar, Sulawesi Selatan, Kamis (28/6). PT Pelayaran Nasional Indonesia (Pelni) merilis pelayaran perdana trayek T-4 Tol Laut dengan rute Tanjung Perak-Makassar-Tahuna yang juga sebagai salah satu trayek tol laut yang melayani pengiriman barang ke pulau-pulau terdepan Indonesia di perbatasan.

JIBI/Bisnis/Paulus Tandi Bone
TAGS: KAPAL PELNI, PELAYANAN, PERBATASAN, TOL LAUT
_________________

A/N: And the sea highway lanes are starting to form up! The end of the Maiden voyage pictured here, during unloading. Judging from the "Tol Laut" containers, it appears that the government hasn't forgotten to also support the acquisition of containers. Looking forward to how this would go.
 
.
WonderfulIindonesia advertised in Russia
Kamis, 28 Juni 2018 12:54 WIB - 0 Views

Reporter: Triono Subagyo

0627_kbri-moskow_bus-wonderful-indonesia-1.jpeg

Some buses in Moscow promote Wonderful Indonesia of Borobudur Temple (ANTARA/HO/KBRI Moskow)

Moskow (ANTARA News) - Indonesian Ambassador to the Federation of Russia, and the Republic of Belarus M. Wahid Supriyadi said the "Wonderful Indonesia" advertisement in Russia is expected to draw more Russian tourists to Indonesia.

The "Wonderful Indonesia" advertisement of the Tourism Ministry is put up in a number of public passenger buses in Moscow and St St.Petersburg.

Wahid said the number of Russian tourists visiting Indonesia is predicted to grow 26 percent this year thanks to the advertisement.

"After twice holding Festival of Indonesia here , the number of Russian tourist arrivals in Indonesia grow rapidly with a growth of 22.5 percent to 80,514 in 2016 and to 110,529 arrivals or a growth of 37 percent in 2017," he said, adding it was the highest growth among foreign tourist arrivals in Indonesia that year.

This year, with Indonesian Festival to be held again in August 3-5 with digital ads by the Tourism Minist5ry, the number of Russian tourists arrivals in Indonesia is expected to rise 26 percent to 150,000, he said on Wednesday.

The ambassador said if the UTair airline starts as planned direct flights between Moscow and Denpasar of Bali in October this year, the target could be easily reached.

Meanwhile, the embassy`s first secretary Enjay Diana said the advertisement Wonderful Indonesia in Russia is expected to better introduce Indonesia in Russia.

"Russians generally like to travel holidaying in tropical countries and Indonesia has many favorite places for holidaying for Russians," Enjay said.

The Wonderful Indonesia advertisement displays tourists destinations including Bali, the Borobudur Temple in Central Java, Raja Ampat, ancient dragon Comodo , Lake Tobaand the Asian Games 2018.

"Wonderful Indonesia" advertisement is also seen in the sweaters worn by Indonesians watching the World Cup now underway in Russia.

Wonderful Indonesia has also been advertised in a number of other countries in a bid to draw more foreign tourists to the country.

Indonesia has been more aggressive in advertising its tourism wealth abroad and has succeeded in recording a strong growth in number of foreign tourists from . The Tourism Ministry has been given a target to draw at least 20 million foreign tourists to the country in 2019.

The number of tourist arrivals grew from 10.4 million in 2015 to 14.04 million in 2017. The number of arrivals fell short of the target of 15 million in 2017 as a result of the eruption of Mount Agung in Bali, the country`s main tourist destination .



Tourism in Indonesia has been an important component of the the country`s economy as well as a significant source of its foreign exchange revenues. The vast country of sprawling archipelago has much to offer, from natural beauty, historical heritage to cultural diversity.

According to the World Travel and Tourism Council, the direct contribution of travel and tourism to Indonesia`s GDP in 2014 was US$26,162 million constituting 3.2% of the total GDP. By 2019, the Indonesian government wants to have doubled this figure to 8 percent of GDP with the number of tourist arrivals expected to reach 20 million. The tourism sector ranked as the 4th largest among goods and services export sectors.
Editor: Otniel Tamindael

COPYRIGHT © ANTARA 2018
 
.
@Star Bugs @pr1v4t33r

Here is an advert from when the product was geared for Palm Oil Plantation.

Like bloody hell, the amount of variants this thing has is AMAZING.
Reminds me of Panzer IV and its Ausf.A to Ausf.J variants. :V

That said, it also reminds me on how this could be an interesting off-road alternative:
kettenkrad_copy.jpg

15c6a499ef41a61998e6d5117baccea7.png

838aab65f17b5d199fdf1f1c7f8065c7.jpg


Like this design was so useful that some of these sd.Kfz.2 were in active use until the 1980s.

I've seen enough of Trans7 'IndonesiaKu' to that this hybrid would be appreciated.

An excellent range of variants. It event has a track option. It definitely is a tough cookie and looks fun to drive too. I'm pretty sure some eco-adventure tour operators will be interested too. In times of war, well you've posted those nazi mules, so Wintor could be a light tactical vehicle too.
 
. .
We are acting more mature and decisive

Tourism minister applies Bali Tourism Hospitality program
Jumat, 29 Juni 2018 19:04 WIB - 2 Views

Reporter: antara

antarafoto-bandara-ngurah-rai-dibuka-290618-wra-4a.jpg

A number of passengers rested waiting for the flight schedule at Ngurah Rai Airport, Bali, Friday (29/06/2018). (ANTARA PHOTO/Wira Suryantala)

Jakarta (ANTARA News) - Tourism Minister Arief Yahya has activated the Bali Tourism Hospitality program in response to the eruption of Mount Agung in Bali.

"We have activated the Bali Tourism Hospitality program as a precautionary measure against all issues related to tourists who are, will, and have been traveling to Bali," Minister Arief Yahya noted in a written statement received by ANTARA here on Friday.

Bali Tourism Hospitality will serve as a Crisis Center of the Ministry of Tourism while providing information services and minimizing the impacts of eruptions on Bali`s tourism sector.

Earlier, I Gusti Ngurah Rai International Airport had to be closed temporarily on Friday June 29, 2018, from 3 a.m. to 7 p.m. local time, but it reopened at 2:30 p.m. local time.

The Ministry of Tourism has taken some on-field precautionary steps.

"Firstly, we apologize to tourists in Bali for this inconvenience," Yahya noted, adding that he has ensured that his team will continue to monitor and collect important information in Bali.

The second step is to temporarily stop Bali`s promotional programs across all media platforms, including online and conventional, at home and abroad, until the situation returns to normal.

"This is the standard procedure outlined by UNWTO - United Nations World Tourism Organization," Yahya pointed out.

The third step is activating the dark sit service on web indonesia.travel to provide accurate and up-to-date information related to the activities of Mount Agung.

The fourth step is that the government and industry players come up with a solution for some 160 thousand tourists, who are stranded as their flights are canceled, and they should be transferred to Juanda airport in Surabaya, East Java, and Lombok International Airport, West Nusa Tenggara.

Ngurah Rai Airport`s General Manager Yanus Suprayogi pointed out that based on the daily schedule, 446 flights cannot operate on Friday (June 29), and 74,928 passengers are forecast to be affected due to this condition.

Some 239 domestic flights and 207 international flights did not operate. Of the domestic flights, 118 were arrivals and 121 departures. Of the international flights, some 103 were arrivals and 104 were departures.

"Foreign tourists, who have to check out from Bali, will be transferred to Surabaya and Lombok. They are expected to gather at the Ngurah Rai Airport as the meeting point. All free of charge," Yahya noted.

Those who have to check out today may stay a night until tomorrow at the hotel, and it is free of charge. The next day, they will be charged the lowest rate of the hotel.

"Thanks to the tourism industry players in Bali. The more we give, the more we will receive," Yahya noted.

The minister also urged service providers to offer a comfortable and fun journey to tourists during the trip from Denpasar to Surabaya and from Denpasar to Lombok.

Banyuwangi, Jember, and some areas travelled by tourists can also be promoted, he added.

"I hope the eruption of Mount Agung would soon be over, so that the tourism climate in Bali will improve. The impact of the airport`s closure is quite significant, as Bali is a tourist destination that receives 40 percent of foreign tourists, who enjoy Wonderful Indonesia," he noted.

(KR-LWA/INE)
(T.SYS/B/KR-BSR/A/H-YH)
Editor: Heru Purwanto

COPYRIGHT © ANTARA 2018
 
.
Loan from World Bank to increase maritime logistics
Sabtu, 30 Juni 2018 12:53 WIB - 6 Views

Reporter: Satyagraha

Jakarta (ANTARA News) - The World Bank`s Executive Board of Directors approved a new 300-million-dollar loan that will be used to support the Indonesian government in conducting reforms to reduce costs and to improve the reliability of maritime logistics.

"Efficient maritime logistics are important for higher growth in the manufacturing, agriculture, and service sectors," World Bank Representative Chief for Indonesia and Timor Leste Rodrigo A. Chaves remarked in a statement in connection with the loan, received here on Saturday.

A better logistics system can improve competitiveness and help reduce the cost of goods and services in remote areas, especially in the eastern region of Indonesia, according to Chaves.

He said the loan was part of the Second Indonesia Logistics Reform Development Policy Loan to overcome obstacles faced in the flow of goods within and outside Indonesia`s borders.

At present, inefficient port operations, uncompetitive logistics service markets, and long trade procedures have hampered Indonesia`s competitiveness.

In addition, ports are often viewed as being an obstacle in the Indonesian logistics chain due to limited infrastructure, minimal regulation, and low productivity.

These obstacles contribute to higher logistics costs for Indonesia`s manufacturing sector as compared to Thailand and Vietnam.

Similar obstacles play a role in Indonesia`s lower logistics performance as compared to countries in the region, as measured in the World Bank`s Logistics Performance Index.

In the meantime, Senior Economist of the World Bank Massimiliano Cali stated that the loan could help Indonesia, which is currently the largest archipelagic country, with 17 thousand islands, to have a long and fragmented logistics chain.

"This loan project will help address some of the key constraints at various supply chain points," Cali noted.

The main focus of the project is to strengthen port governance and operations, foster a competitive business environment for logistics service providers, and make trading processes more efficient and transparent.




Editor: Otniel Tamindael

COPYRIGHT © ANTARA 2018
 
. .
im not surprise, for the last 10 years, we do some major improvement. and with jokowi ambitious reformation, we might get what we want. Goo Indonesia.
 
. .
Deals
Indonesia Says $4 Billion Grasberg Deal May Be Signed This Week
By
Tassia Sipahutar
July 1, 2018, 8:21 PM EDTUpdated on July 2, 2018, 10:13 AM EDT
  • Necessary documents being finalized, enterprises minister says
  • Talks between Grasberg, Rio Tinto and state-owned Inalum
360x-1.jpg

Freeport-McMoRan’s Grasberg copper and gold mining complex. Photographer: Dadang Tri/Bloomberg
Indonesia confirmed it’s closer to reaching an almost $4 billion agreement to take control of Freeport-McMoran Inc.’s giant Grasberg copper and gold mine after more than a year of negotiations.

Talks between state-owned PT Indonesia Asahan Aluminium, known as Inalum, Freeport and Rio Tinto Group have been completed and an agreement could be signed as early as this week, Indonesia’s State-Owned Enterprises Minister Rini Soemarno and Deputy Minister Fajar Harry Sampurno said on Saturday. On Monday, Freeport shares fell along with copper prices.

360x-1.jpg

Freeport-McMoRan’s Grasberg copper and gold mining complex.

Photographer: Dadang Tri/Bloomberg
“We are finalizing the necessary documents,” Soemarno told reporters in Jakarta. “They are asking for stability in investment. They want to have documents that provide clarity in investment calculations, clarity in tax. These are all being processed.”


Their comments came after Inalum Chief Executive Officer Budi Gunadi Sadikin said last week that negotiations were complete and the parties have agreed a price for Rio’s stake. The London-based company is ready to accept a $3.5 billion deal for its interest in Grasberg, people familiar with the discussions said last month.

The three-way deal also includes Freeport striking an agreement to transfer some of its stake to Inalum, according to the people. Freeport didn’t immediately respond to a request for comment, while Rio declined to comment.

Indonesia and Freeport have been locked in talks for more than a year to agree terms for the miner to cede majority ownership in Grasberg, part of a deal that will allow the producer to keep operating in the country. Foreign miners have been given until 2019 to comply with divestment obligations, imposed by President Joko Widodo to exert more local control over the Southeast Asian nation’s resources.

Success in striking the agreement will pave the way for Inalum to control 51 percent of Freeport Indonesia that controls Grasberg, the world’s No. 2 copper mine. Inalum now has 9.56 percent only on behalf of the Indonesian government. For Freeport, finalization of the deal will also ensure the future of its operations as the company has been operating under a temporary mining license, which is due to expire July 4.

Freeport shares were down 2.2 percent at 10:06 a.m. in New York as disappointing Chinese manufacturing data, a strengthening U.S. dollar and trade tensions sent copper toward its lowest closing price since December. Rio Tinto fell 2.5 percent in London.

With assistance by Danielle Bochove, and David Stringer.

Link :

https://www.google.com/amp/s/www.bl...billion-grasberg-deal-may-be-signed-this-week
 
.
Jokowi inaugurates first Indonesian wind farm in Sulawesi
  • Andi Hajramurni
    The Jakarta Post
Sidenreng Rappang, South Sulawesi | Mon, July 2, 2018 | 06:34 pm
2018_07_02_48632_1530529118._large.jpg

President Joko “Jokowi” Widodo inaugurates the 100-hectare Sidrap Wind Farm in Sindereng Rappang regency, South Sulawesi on July 2. (JP/Andi Hajramurni)
President Joko “Jokowi” Widodo on Monday inaugurated the 100-hectare Sidrap Wind Farm in Sindereng Rappang regency, South Sulawesi, the first wind power project in the country and the largest of its kind in Southeast Asia.

The Sidrap Wind Farm, which will produce 75 megawatts (MW) of electricity and can power up to 70,000 households, is part of the 35,000 MW electricity program.

“Seeing that all the blades of the wind turbines in Sidrap rotate, it means there is enough wind here. I feel like I'm in the Netherlands, although I'm in Sidrap,” said President Jokowi in his speech.

The wind farm project was constructed by UPC Renewables in collaboration with a local firm, with a total investment of US$150 million.

The electricity produced from the farm will be channeled to the networks of state-owned electricity company PLN and will be distributed to South Sulawesi, Southeast Sulawesi and West Sulawesi.

The President also said a similar project was being developed in Jeneponto, the construction of which is 80 percent complete. He added that another project was being developed in Tanah Laut, East Kalimantan, while another is set to be developed in Sukabumi, West Java.

The President said Indonesia was rich in sources of renewable energy, including geothermal and solar energy.

He added that power plants that sourced renewable resources had a total capacity of 2,000 MW and would continue to be developed to reach the target of a 23 percent contribution of renewable energy to the country’s electricity production by 2020. (bbn)
 
. .

Latest posts

Country Latest Posts

Back
Top Bottom