Indonesia Economy Forum

[Nike]

Indonesian, Omani oil companies develop grass root refinery in Bontang
Senin, 10 Desember 2018 18:08 WIB - 3 Views

Reporter: antara

Pertamina (ANTARANews/ferly)

Jakarta (ANTARA News) - Indonesian oil and gas company Pertamina and Omani company Overseas Oil & Gas (OOG) here on Monday expressed commitment to developing the Grass Root Refinery (GRR) project or constructing a new refinery in Bontang, East Kalimantan.

This commitment was voiced in a framework agreement between the two companies, asserting that they will build a refinery, with a capacity of 300 thousand barrels per day, and a petrochemical plant in Bontang, East Kalimantan.

OOG is a company from Muscat, Oman, offering downstream oil and gas business services, with business scope including providing services in commercial structure (development), designing services with experienced personnel, providing construction and project management, covering operations and maintenance, and offering solutions for engineering and construction designs.

OOG was selected as Pertamina`s partner after clearing a partner selection mechanism for the Bontang GRR in January 2018.

The OOG attained the strategic partner status to work on this project with Pertamina after competing with several other competitors.

Pertamina`s Deputy President for Corporate Communication Adiatma Sardjito stated that Pertamina will derive several benefits from this cooperation project, one of which is optimizing capital expenditure to conduct other refinery expansion and construction projects, for instance, in Balikpapan in East Kalimantan, Cilacap in Central Java, Balongan in West Java, and Tuban in East Java.

Pertamina will also act as the off-taker in the fuel produced by GRR Bontang to meet domestic needs, especially of gasoline, aviation turbine, and liquefied petroleum gas.

"With the signing of the framework agreement with OOG today, we can advance the project to the next level, which is to conduct a Bankable Feasibility Study. This study will offer us a better understanding of the technical configuration of the refinery and the economical calculations of the project. This study will also recognize the risks that should be anticipated early since the project is started that is timely. Hence, the project is expected to run within the scope of the budget and focus on specifications, regulations, and economic targets," Adiatma explained.

Meanwhile, Pertamina`s President Director Nicke Widyawati emphasized that the most important aspect about this cooperation was the intergovernmental business scheme, or G-to-G.

The framework agreement will be valid for 12 months. The agreement will be continued with a Bankable Feasibility Study and Advanced Energy Study.

Reporting by Afut Syafril Nursyirwan
Editing by Libertina, Rahmad Nasution
Editor: Heru Purwanto

COPYRIGHT © ANTARA 2018

 

[Nike]

@Indos @pr1v4t33r @nufix @Reashot Xigwin

Minister confirms Rp400 trillion allocation for infrastructure in 2019
Rabu, 12 Desember 2018 14:33 WIB - 0 Views

Reporter: Antara

Finance Minister Sri Mulyani Indrawati is at Ceo Network event in Jakarta on Monday (3/12/2018). (ANTARA News/Anggarini Paramita)

Semarang, C Java (ANTARA News) - Finance Minister Sri Mulyani has revealed that funds amounting to Rp400 trillion will be allocated in the State Budget for the development of infrastructure across Indonesia in 2019.

Funds for the 2019 State Budget will reach a total of Rp2,461 trillion for expenses, the minister revealed while speaking at a seminar on the Central Java Investment and Business Projection in 2019, here, Wednesday.

"The huge sum aims to improve the quality of economy and public welfare," she noted.

The minister outlined that allocation for infrastructure will reach Rp400 trillion; health sector, Rp120 trillion; and education, Rp500 trillion.

Funds amounting to Rp860 trillion will be transferred from the State Budget (APBN) to the regional administrations` bank accounts, she added.

In 2019, Indonesia will enjoy a healthy APBN and protected economic momentum, the minister affirmed.

The deficit in APBN in 2018 is the best over the past five years, according to Mulyani.

"Until late December, it is expected to be maintained, and even if possible, it will be better," he added.

Reporting by Immanuel CS, Fardah Assegaf
Editing by Bustanuddin


Editor: Yosep Hariyadi

COPYRIGHT © ANTARA 2018

https://m.antaranews.com/en/news/12...rillion-allocation-for-infrastructure-in-2019


@jek_sperrow @mandala @GraveDigger388 @Svantana @trishna_amṛta @Logam42 @Mr. Woof Woof and other

This one of the biggest sum for infrastructure budget ever in Indonesia history, almost touching 1/5 of overall National budget assumption for 2019

 

[pr1v4t33r]

This one of the biggest sum for infrastructure budget ever in Indonesia history, almost touching 1/5 of overall National budget assumption for 2019

This year infrastructure budget even bigger, amounting 410 trillion Rupiah. Infrastructure budget recorded the highest growth in 2017.

 

[Nike]

This year infrastructure budget even bigger, amounting 410 trillion Rupiah. Infrastructure budget recorded the highest growth in 2017.

2019 budget for infra reach 415-420 trillion

https://databoks.katadata.co.id/dat...15-triliun-untuk-membangun-infrastruktur-2019

https://m.detik.com/finance/infrast...kan-rp-420-triliun-belanja-infrastruktur-2019

 

[pr1v4t33r]

2019 budget for infra reach 415-420 trillion

Nice, we need to continue this upward trend at-least till the next decade..

 

[GraveDigger388]

@Indos @pr1v4t33r @nufix @Reashot Xigwin

Minister confirms Rp400 trillion allocation for infrastructure in 2019
Rabu, 12 Desember 2018 14:33 WIB - 0 Views

Reporter: Antara

Finance Minister Sri Mulyani Indrawati is at Ceo Network event in Jakarta on Monday (3/12/2018). (ANTARA News/Anggarini Paramita)

Semarang, C Java (ANTARA News) - Finance Minister Sri Mulyani has revealed that funds amounting to Rp400 trillion will be allocated in the State Budget for the development of infrastructure across Indonesia in 2019.

Funds for the 2019 State Budget will reach a total of Rp2,461 trillion for expenses, the minister revealed while speaking at a seminar on the Central Java Investment and Business Projection in 2019, here, Wednesday.

"The huge sum aims to improve the quality of economy and public welfare," she noted.

The minister outlined that allocation for infrastructure will reach Rp400 trillion; health sector, Rp120 trillion; and education, Rp500 trillion.

Funds amounting to Rp860 trillion will be transferred from the State Budget (APBN) to the regional administrations` bank accounts, she added.

In 2019, Indonesia will enjoy a healthy APBN and protected economic momentum, the minister affirmed.

The deficit in APBN in 2018 is the best over the past five years, according to Mulyani.

"Until late December, it is expected to be maintained, and even if possible, it will be better," he added.

Reporting by Immanuel CS, Fardah Assegaf
Editing by Bustanuddin


Editor: Yosep Hariyadi

COPYRIGHT © ANTARA 2018

https://m.antaranews.com/en/news/12...rillion-allocation-for-infrastructure-in-2019


@jek_sperrow @mandala @GraveDigger388 @Svantana @trishna_amṛta @Logam42 @Mr. Woof Woof and other

This one of the biggest sum for infrastructure budget ever in Indonesia history, almost touching 1/5 of overall National budget assumption for 2019

Excited for new train tracks and routes!

 

[Nike]

European investors begin to invest in Indonesia`s cotton processing sector
Kamis, 13 Desember 2018 14:08 WIB - 3 Views

Reporter: Antara

Sulistyo Wibowo, the Directorate General of Taxation. (Antara News/Anggarini Paramita)

Jakarta (ANTARA News) - Indonesia`s cotton processing sector has caught the attention of European investors, a business and investment observer stated.

A European investor is reportedly eyeing and planning to invest in the cotton processing sector in Indonesia, according to a press statement of Djoko Kurniawan, a business and investment observer of DK Consulting, here on Thursday.

The European investor will likely explore two possibilities, the first being to build a factory of its own using a foreign direct investment, or FDI, scheme while the second is to partner with a domestic company.

"I think the European investor will choose the second option by partnering with a local company. It is an effort to mitigate business risk in Indonesia," he noted.

If the plan is realized, it can be said that the European investor is categorically aggressive to conduct expansion in Indonesia owing to the fact that it was reported that Vivendi SA, a French media conglomerate, is planning to acquire parts of PT Global Mediacom (MNCN) share.

Apart from Vivendi that will try a television station, Michelin has earlier taken a step forward by realizing its investment.

It is partnering with PT Chnndra Asri Petrochemical (TPIA). The two developed a synthetic rubber factory, with an investment worth US$435 million.

Another French investor, Vinci, also cooperated with Indonesian state-owned firm Indonesian Tourism Development Cooperation (ITDC) and is planning to build a MotoGP circuit at the tourism area of Mandalika, Lombok, worth $1 billion.

Kurniawan believes the entry of foreign investors into Indonesia is a positive development, as it indicated that the investment climate in Indonesia is conducive.

Apart from its large population, Indonesia`s natural resources are still attractive to foreign investors.

"The entry of foreign investors can help develop the local industry because of the strength of the capital they have. This can happen if the local industry is involved as a local partner," Kurniawan noted.

The increase in European investment is a result of the Indonesian government`s seriousness in inviting foreign investors to invest in this country, one of the measures being through the provision of tax holiday facilities.

Meanwhile, Sulistyo Wibowo of the Directorate General of Taxation remarked that 12 investors will currently receive these facilities.

"The 12 investors invested Rp210.8 trillion," Wibowo noted.

Especially, in the cotton processing sector, companies not solely from Europe but also at least two other countries -- China and South Korea -- share similar interests to develop the cotton business in Indonesia.

This is due to the limited rules in each of these countries, so they cannot develop the cotton business there. The cotton processing sector in Indonesia, which is not included on the negative investment list, also helped attract foreign investors.

Cotton producers for beauty, health, and industries, integrated from upstream to downstream in Indonesia, are also limited, with only two firms, one of which is a public company, whose shares have been listed on the Indonesia Stock Exchange.

Reporting by Afut Syafril Nursyhirwan, Andi Abdussalam


Editor: Fardah Assegaf

COPYRIGHT © ANTARA 2018

 

[Nike]

Asian Agri to have 10 units of biogas power plants
Jumat, 14 Desember 2018 11:07 WIB - 0 Views

Reporter: Antara

oil palm plantation in Indonesia . ANTARA FOTO/Wahdi Septiawan/aww.

Medan, N Sumatra (ANTARA News) - Asian Agri, an oil palm plantation company, said it will build more biogas power plants (PLTBg) when three units now under construction are completed soon in North Sumatra.

"Altogether the company will have 10 units. Currently, the company already has seven units in operation," Head of Plantation of Asian Agri for North Sumatra and Riau Omri Samosir said in Asahan, on Thursday.

The company has a target to increase the number of its bio-gas triggered power plants to 20 units in 2020, Omri said when welcoming Deputy Governor of North Sumatra coming to visit PLTBg? of Pabrik Gunung Melayu Satu (PGMS) of PT Saudara Sejati Luhur, owned by Asian Agri in Asahan in the province.

Omri said the plan to build more units of PLTBg is part of Asian Agri`s contribution to the government in reducing green house gas emissions.

"Though there is commercial element in the plan, development of units of PLTBg instead of other types of power plant by Asian Agri is more preferable to protect the environment," he said.

Omri Samosir said PLTBg constitutes the result of utilization of liquid waste of palm oil processing factories.

"Environmental preservation is important especially with the negative issues against palm oil abroad," he said.

The use of PLTBg?will reduce the risk of releasing methane gas to the air which is one of the causes of global warming.

"Methane gas is more potential than carbon dioxide (CO2), therefore, release of megas has to be reduced or prevented," he said.

He said power from some of the PLTBgs of the company has been sold to the state electricity company PT PLN, but most of the power production has been used by the company itself.

Asian Agri has contributed environmentally friendly energy to meet energy requirement in North Sumatra, he added.

The seven units of PLTBg already operational include two units in North Sumatra (Asahan and Negeri Lama Labuhanbatu), two units in Jai and three units in Riau .

The three units under construction and soon to be operational are all in North Sumatra -- two units in Gunung Melayu, Asahan, Aek Nabara and one in Tanjung Selamat,Labuhanbatu.

? He said the investment for a unit of PLTBg is US$6 million.

"The company has strong commitment to contributing to the program of preserving healthy environment," he said.

Technical Controller of Mill for Asahan Asian Agri, Budi Darmawansyach, said PLTg using liquid waste of a palm oil processing plant with a processing capacity of 60 tons of fresh fruit bunches of oil palm could generate up to 2.2 megawatts of electricity.

"Cooperation with PLN would continue to be increased," Budi said.

Deputy Governor of North Sumatra H Musa Rajekshah said the North Sumatra administration hopes that all palm oil processing factories in the province will build their own PLTBg .

? "PLTBgs are important as they could reduce greenhouse gas emission especially to protect the future generation," Musa Rajekshah said, adding PLTBg operation would help the government provide electricity for the public.

Reporting by Evalisa Siregar, A Saragih
Editing by Suharto
Editor: Fardah Assegaf

COPYRIGHT © ANTARA 2018

 

[Nike]

Chinese company invests US$1 billion in Tanjung Lesung
Jumat, 14 Desember 2018 19:31 WIB - 0 Views

Reporter: antara

Tanjung Lesung area, Pandeglang, Banten. (ANTARA PHOTO/Wahyu Putro A/foc.)

Beijing (ANTARA News) - A Chinese company has committed to investing US$1 billion in the tourism sector in Tanjung Lesung, Banten Province.

The commitment was outlined in the Letter of Intent (LoI) signed by the Director of Yunnan Ice Sea Investment Group, Wei Xiao Lin, and the President Director of Jababeka, Budianto Liman, at the 2018 Investment, Trade and Tourism Forum here on Friday.

The exchange of the LoI document between the two companies was witnessed by the Indonesia Minister of Tourism, Arief Yahya, and the Indonesian Ambassador to China, Djauhari Oratmangun.

Tanjung Lesung is one of 10 tourist destinations, besides Bali, which is known as "the Ten New Bali Destinations".

The 10 destinations are Borobudur in Central Java, Mandalika on Lombok Island (West Nusa Tenggara), Labuan Bajo in Flores (East Nusa Tenggara), Bromo-Tengger-Semeru in East Java, Pulau Seribu in North Jakarta, Lake Toba in North Sumatra, Wakatobi in Southeast Sulawesi, Tanjung Lesung in Banten, Morotai in the northern region of Halmahera in the Maluku islands and Tanjung Kelayang in Belitung (Bangka Belitung).

Until 2024, the 10 new destinations need an investment of $35 billion.

"The investment in the 10 tourist sites is divided into two categories, namely, tourism investment and tourism funding," the Tourism Minister said, adding that the Indonesian government had invested $12 billion.

"However, we still need additional investment worth $23 billion from the private sector. Tourism investment from the private sector will be directed to develop hotels, restaurants, recreational parks, ports and other facilities," Arief said.

According to the minister, during the period 2013-2017, investment in the tourism sector had reached $5.47 billion. Of that amount, around $4.23 billion came from foreign investors.

Foreign investors in the tourism sector are dominated by Singapore with $460 million and China with $330 million.

Minister Arief said China had made the biggest contribution to the development of Indonesia`s tourism sector in the past three years.

In 2017, the number of Chinese tourists visiting Indonesia was 1.97 million, up 35.7 percent compared to that of 2016.

In 2018, the Ministry of Tourism expected 2.6 million Chinese tourists. During the period January-October 2018, the number of tourists amounted to 1.87 million.

"Therefore, we still expect more Chinese tourists," Arief said at the event, which saw the participation of Indonesian and Chinese businessmen.

Reporting by M. Irfan Ilmie
Editing by Libertina, Bustanuddin
Editor: Heru Purwanto

COPYRIGHT © ANTARA 2018

 

[Nike]

Yogyakarta`s Nyia airport to become operational in april 2019: Minister
Jumat, 14 Desember 2018 23:58 WIB - 1 Views

Reporter: Antara

New Yogyakarta`s International Airport (NYIA) in Kulon Progo District, the special region of Yogyakarta, can become operational in April 2019, Transportation Minister Budi Karya Sumadi stated. (ANTARA /Andreas Fitri Atmoko)

Kulon Progo, Dec 14 (ANTARA News) - New Yogyakarta`s International Airport (NYIA) in Kulon Progo District, the special region of Yogyakarta, can become operational in April 2019, Transportation Minister Budi Karya Sumadi stated.

The minister made the remark here on Friday, adding that currently, the terminal`s construction had reached 40 percent completion; the runway, 19 percent; while other buildings are still being constructed simultaneously.

"Later, in March, the runway will be 100 percent complete. We are optimistic that the International Airport will have been operating for international flights," Sumadi revealed.

He said airlines from South Korea, Japan, and China had shown keen interest in the NYIA Airport. The number of passengers from this country is large, so it is expected to draw many tourists to Yogyakarta.

"What is clear is that we are ready. In addition, flights from Saudi Arabia (will also arrive)," he pointed out.

PT Angkasa Pura I Managing Director Faik Fahmi noted that all work on the airside and runway would have been completed in March 2019. PT AP I has already taken into account everything. Later, in April 2019, the runway and apron can be fully ready.

The eight thousand-square meter terminal, once ready, will be used for international flights first. This terminal building can accommodate two to three million passengers. Later, it will be gradually developed for domestic flights.

"We are targeting the end of 2019 (for the airport`s construction) to have been completed," he further stated.

Speaking in connection with PT AP I prioritizing the construction of an international terminal, Fahmi explained that the passenger potential is high, noting that NYIA Airport has a runway length of 3,250 meters.

International flights are expected to carry tourists through the NYIA Airport.

PT AP I has currently opened an international logging slot. So far, only flights from Singapore and Malaysia are being operated.

"This is open for Umrah (minor hajj). Surely, Arab flights are interested, as the runway is very long, or 3,250 meters. Hence, large-bodied aircraft, such as Boeing 777, will be able to land at the NYIA Airport," he added.


Reporting by Sutarmi
Editing by Bustanuddin

Editor: Eliswan Azly

COPYRIGHT © ANTARA 2018

 

[Logam42]

Markets
It Turns Out Indonesia's Influx of Foreign Workers Doesn't Exist
By
Karlis Salna
14 December 2018, 08:53 GMT+7

Laborers work at a construction site in Jakarta. Photographer: Dimas Ardian/Bloomberg

Is Indonesia really being overwhelmed by foreign workers? We should be so lucky, says the nation’s investment chief.

As the country heads toward an election that will be fought over jobs and the economy -- against the backdrop of a rise in nationalist sentiment -- President Joko Widodo is battling to counter claims from lawmakers and opposition parties that Indonesia is facing an influx of workers from China and elsewhere.

“This paranoia about foreign dominance in our country is a fabrication of the politicians,” and the workforce actually needs far more overseas labor, Tom Lembong, chairman of the Investment Coordinating Board and a former trade minister, said at a World Bank event in Jakarta on Thursday.
The most recent data back him up. Foreigners make up less than 1 percent of Indonesia’s labor force and that share is dwarfed by regional peers such as Thailand and Malaysia. Lembong says the country lacks the right policies to attract global talent and up-skill its 131 million-strong workforce.

Indonesia will go to the polls in April in a re-run of the 2014 election that saw Jokowi defeat Prabowo Subianto. While voters are enjoying a jobless rate near a 20-year low, growth in Southeast Asia’s biggest economy is stuck at about 5 percent and foreign investment has slumped.

The nation faces a real struggle to “catch up to the 21st century requirements of modern industry and the modern economy,” said Lembong. “The good news is President Jokowi likes to take a hacker approach to such issues. Being confronted with a recalcitrant bureaucracy has never stopped him."

____________________________

Note: Check link for actual graph.
https://www.bloomberg.com/news/arti...sia-s-influx-of-foreign-workers-doesn-t-exist

 

[Nike]

Outlook for Indonesia's Ceramic Industry Improves for Next 3 Years
14 December 2018 |

• Edy Suyanto
• Ceramic Export
• Ceramics Industry
• ASAKI
• Ceramic Production

After years of struggle the outlook for Indonesia's ceramic industry looks a bit more positive now. In recent years Indonesia's domestic ceramic industry has been plagued by subdued growth in Indonesia's property sector, while there also emerged increasing competition from Chinese counterparts (who are facing a structural ceramic oversupply at home and therefore, aggressively, try to penetrate the Southeast Asian market by offering their ceramic products at attractive rates).

However, since the Indonesian government decided - in September 2018 - to impose higher import tariffs on ceramics as well as on various other products in an effort to curtail imports - hence improve Indonesia's current account deficit and strengthen the value of the rupiah - there is room for some optimism. Moreover, a special regulation (issued by Indonesia's Finance Ministry) for import tariffs on ceramic tile products, which will be put in place for the duration of three years, was issued on 19 September 2018. Based on this regulation, a 23 percent import tariff is imposed on ceramic tile imports during the first year. In the second year, the tariff is reduced to 21 percent, while in the third year, the tariff drops further to 19 percent. The regulation aims at curbing the huge inflow of ceramic tiles into Indonesia, and which undermines the success of the domestic ceramic industry in Indonesia.

The improved outlook made four (big) existing players in Indonesia's ceramic industry - Arwana Citramulia, Mulia Group, Gemilang Mitra Sejahtera, and Jui Shin - decide to invest in new ceramic plants (which are expected to be opened in the second half of 2019). Together these plants will add some 40 million square meters (m2) in ceramic production capacity, meaning that Indonesia's combined annual installed ceramic production capacity is set to pass well beyond 600 million m2 (to approximately 620 million m2) at the end of 2019.

Edy Suyanto, Chairman of the Indonesian Ceramic Industry Association (ASAKI), said the new Finance Ministry regulation - that imposed import tariffs on ceramic tiles - brings a wave of fresh air into Indonesia's ceramic industry as it will reduce the competitiveness of imported ceramic tiles significantly. Therefore, Indonesia's national utilization rate (of total installed national ceramic production capacity) should rise from around 65 percent currently to the range of 70-73 percent by the end of 2019.

According to data from Ceramic World Review, China remained the world's top ceramic producer in 2017 with total annual production capacity at 6.4 billion m2, followed by India (1.08 billion m2), and Brazil (790 million m2).





While Suyanto is optimistic that domestic ceramic demand is set to rise next year, he is not so optimistic about Indonesian ceramic manufacturers' chances to gain ground in export markets as there exists fierce competition. Problematically, Indonesian ceramic manufacturers pay a USD $9 mmbtu gas price, while foreign counterparts in the region can enjoy a gas price in the range of USD $4 - $6 per mmbtu price. This is one of the main reasons why Indonesian manufacturers have difficulty to compete with foreign counterparts.

https://www.indonesia-investments.c...c-industry-improves-for-next-3-years/item9056

 

[pr1v4t33r]

Indonesia and 4 from Europe sign long-delayed trade deal

Indonesia on Sunday signed an economic agreement with the European Free Trade Association (EFTA) aimed at increasing trade and investment, concluding almost eight years of negotiations.

Under the deal, tariffs and non-tariff barriers would be eliminated for thousands of products traded between Indonesia and the EFTA countries - Switzerland, Liechtenstein, Norway and Iceland, according to government statements.

Among those products, Indonesian palm oil would get full market access in Iceland and Norway, with an exception of palm products for animal feed other than for fish, according to Jakarta's statement.


Switzerland would also grant easier access for palm oil, but under certain quotas, its embassy in Jakarta said in a statement.

Enggartiasto Lukita, Indonesian Trade Minister, said discussion on market access for palm oil was the sticking point that dragged negotiations on for years. The first round of talks were held in early 2011.

"They held back our palm," Lukita told reporters after the signing of the agreement.

"I said, we've gone a long way. You will benefit from this and I too. So if you don't open up for our palm, let's just forget about this," adding that he had threatened to leave Norwegian salmon out of the deal.

Swiss Federal Councillor Johann N. Schneider-Ammann said the agreement was based on sustainable palm oil production.

"As far as palm oil is concerned, believe me, we had intensive discussions in Switzerland as well and we found a solution with our partners here in Indonesia, a solution to balance the interests and to stay at the same time very respectful as far as the palm oil concern," he said at a news conference.

The world's top palm oil producer and exporter Indonesia has often tried to reassure buyers that its palm oil is produced sustainably.

Lukita on Sunday repeated the government's argument that palm oil production requires less land than other vegetable oils, making it unfair to blame deforestation on palm plantations.

Greenpeace said more than 74 million hectares of Indonesian rainforest - representing an area twice the size of Germany - have been logged, burned or degraded in the last half century, which the group blamed on palm oil and pulp and paper industries.

Other main Indonesian export products such as fish, coffee and textiles would also get preferential treatment under the deal, in exchange for greater access for the main products of the EFTA countries, such as gold, medicines and dairy products.

In 2017, Indonesia-EFTA trade was worth $2.4 billion, with Indonesia having a trade surplus of $212 million. EFTA countries put $621 million of foreign direct investment into Indonesia in 2017, according to Indonesian records.

https://asia.nikkei.com/Economy/Indonesia-and-4-from-Europe-sign-long-delayed-trade-deal

 

[Nike]

Indonesia waiting for study on Jakarta-Surabaya train project

• News Desk
  The Jakarta Post
  

Jakarta / Sat, December 15, 2018 / 09:15 am

Vice President Jusuf Kalla (left) and Japanese Prime Minister Shinzo Abe (right) meet in Tokyo on June 5. (Antara/ Akbar Nugroho Gumay )
The government is awaiting the result of a feasibility study on the Jakarta-Surabaya medium speed rail project conducted by the Japan International Cooperation Agency (JICA) before construction proceeds.

“Previously a pre-feasibility study had been conducted. Now, the feasibility study is still under way. It will take about one year or more,” said Transportation Ministry Railway Director General Zulfikri as reported by kompas.com on Friday.

He explained the feasibility study took a lot of time because it sought a formula to ensure the total investment would not exceed Rp 60 trillion (US$4.11 billion).

Read also: Kalla, Abe discuss acceleration of Jakarta-Surabaya railway project

“JICA needs to calculate the investment, which the ministers want to ensure does not exceed Rp 60 trillion,” Zulfikri said, adding that the ministry had informed JICA about several requirements for the project.

The requirements include the local content level for the project and the journey time, which is expected to be 5.5 hours to travel along a 700-kilometer railway.

The longer time taken for the study is also a result of dropping the initial plan for an elevated railway, Zulfikri said, adding that under the new revised project, JICA needed to find a way to deal with more than 1,000 railway crossings along the track. (bbn)

 

[Nike]