Indonesia Economy Forum

[Nike]

Good job @Marine Rouge @trishna_amṛta @Logam42 @pr1v4t33r @Indos

We got quality growth in 2018, with low inflation rates per year 3.13 percentage in 2018, and not much growth in HNWI (high net worth individual) . Means more income for average people

 

[trishna_amṛta]

Good job

I won't read too much of it. 2019 is really big political year for Indonesia, thus so many things could go south very fast. One of the major contributing factor in 1Q 2019 growth is the temporarily dovish Fed, if the Fed decide to go hawkish again (let's say in 3Q 2019) it's going to be a really rough ride. The current Indonesia monetary policy is to seek stability rather than growth.

We got quality growth in 2018, with low inflation rates per year 3.13 percentage in 2018, and not much growth in HNWI (high net worth individual)

Those high net worth individuals are the ones who create jobs, thus stimulating the increase of consumer demand (growth) as byproduct!

Means more income for average people

Than how come I'm still poor?!

 

[Nike]

iPhone manufacturer Pegatron to start operating in Batam in April

• Fadli
  The Jakarta Post
  

Batam, Riau Islands / Fri, February 15, 2019 / 11:38 pm

Seeking opportunities: Hundreds of job seekers flock to the Batamindo Industrial Park in Mukakuning, Batam, Riau Islands,. (Tribun Batam/File)
Pegatron Corporation, the maker of Apple’s iPhones, is scheduled to start operating in Batam, Riau Islands, in April this year after the Taipei-based manufacturer agreed to rent a factory in a specially designated economic zone.

The company is planning to invest up to US$300 million in the long run.

The general manager of Batam’s Batamindo Industrial Park, Mook Sooi Wah, confirmed the company would rent a 2-hectare manufacturing plant in the park.

"The company will officially start operations in April," Mook told The Jakarta Post recently.

Batam Development Industrial Authority (BP Batam) chief Edy Putra Irawadi said Pegatron's total investment could reach $300 million with an initial investment of $40 million. However, he said his side had not heard of confirmation from the company regarding its plan to build a manufacturing plant in Batamindo.

"The company wants to build a large manufacturing plant in Batam as the city has the spare land it needs," Edy said.

A trade war between the United States and China prompted the company to leave the latter and enter ASEAN countries, including Indonesia. In December, it announced its partnership contract with Batam-based listed electronics manufacturer PT Sat Nusapersada for the purpose of assembling various electronic products to be exported to the US.

Pegatron's plan to build a manufacturing plant in April coincides with the government's deadline for the settlement of dual leadership in Batam. Previously, both the Batam Development Industrial Authority (BP Batam) and the Batam administration had the authority to issue business licenses, creating confusion among investors because of frequent policy changes.

There are doubts over the merger plan with the presidential election just around the corner.

Riau Islands' Chamber of Commerce and Industry (Kadin) chairman Makruf Maulana said the government's decision to merge the two bodies was not fully supported by its coalition parties.

"Let's wait until the presidential election ends and see whether the policy will be implemented. Some politicians in Jakarta still want the central government to meddle in Batam's affairs due to the region's proximity to a number of countries. The central government's role is channeled through BP Batam," he said.

Office of the Coordinating Economic Minister secretary Susiwijono assured that the presidential election in April would not affect the merging process of the two bodies. He said his side would accelerate the transition process, which is currently being led by recently inaugurated BP Batam chief Edy.

The government assigned the Batam mayor as the BP Batam ex-officio chief, although a government regulation for the appointment has yet to be amended. Coordinating Economic Minister Darmin Nasution previously said the deadline for the amendment was April 30.

"What we are working on right now are the problems lying right before us, which are the investments and the work plans. We are also reviewing the deputy chief post as the Batam mayor will be busy with his administrative work," Susiwijono said, adding that his side would accelerate the revision of government regulation PP 46/2007 on Batam's free trade zone.

Vice President Jusuf Kalla said the policy to designate the Batam mayor as the BP Batam ex-officio chief would be implemented soon to put an end to the dual leadership.

"There must be one coalition and one policy, instead of two policies. Both bodies surely need to adjust, so the city administration and BP Batam will be represented by one person and will implement one policy," Jusuf Kalla said during his recent visit to PT Satnusa Persada Tbk in Batam, Riau Islands.

Edy said Batam's status would also be changed to special economic zone (KEK) from free trade zone (FTZ).

"The change of Batam's status from FTZ to KEK does not mean that there will be borders installed in the region. What will be built are virtual borders, meaning there will be documents required for the movement of goods," he said.

Batam Mayor Muhammad Rudi refused to comment as he was still waiting for the policy to be implemented so he could be named ex-officio chief.

However, he promised that the business license would be issued in mere hours under his leadership as opposed to days. (ars)

 

[Logam42]

iPhone manufacturer Pegatron to start operating in Batam in April

• Fadli
  The Jakarta Post

Batam, Riau Islands / Fri, February 15, 2019 / 11:38 pm

Seeking opportunities: Hundreds of job seekers flock to the Batamindo Industrial Park in Mukakuning, Batam, Riau Islands,. (Tribun Batam/File)
Pegatron Corporation, the maker of Apple’s iPhones, is scheduled to start operating in Batam, Riau Islands, in April this year after the Taipei-based manufacturer agreed to rent a factory in a specially designated economic zone.

The company is planning to invest up to US$300 million in the long run.

The general manager of Batam’s Batamindo Industrial Park, Mook Sooi Wah, confirmed the company would rent a 2-hectare manufacturing plant in the park.

"The company will officially start operations in April," Mook told The Jakarta Post recently.

Batam Development Industrial Authority (BP Batam) chief Edy Putra Irawadi said Pegatron's total investment could reach $300 million with an initial investment of $40 million. However, he said his side had not heard of confirmation from the company regarding its plan to build a manufacturing plant in Batamindo.

"The company wants to build a large manufacturing plant in Batam as the city has the spare land it needs," Edy said.

A trade war between the United States and China prompted the company to leave the latter and enter ASEAN countries, including Indonesia. In December, it announced its partnership contract with Batam-based listed electronics manufacturer PT Sat Nusapersada for the purpose of assembling various electronic products to be exported to the US.

Pegatron's plan to build a manufacturing plant in April coincides with the government's deadline for the settlement of dual leadership in Batam. Previously, both the Batam Development Industrial Authority (BP Batam) and the Batam administration had the authority to issue business licenses, creating confusion among investors because of frequent policy changes.

There are doubts over the merger plan with the presidential election just around the corner.

Riau Islands' Chamber of Commerce and Industry (Kadin) chairman Makruf Maulana said the government's decision to merge the two bodies was not fully supported by its coalition parties.

"Let's wait until the presidential election ends and see whether the policy will be implemented. Some politicians in Jakarta still want the central government to meddle in Batam's affairs due to the region's proximity to a number of countries. The central government's role is channeled through BP Batam," he said.

Office of the Coordinating Economic Minister secretary Susiwijono assured that the presidential election in April would not affect the merging process of the two bodies. He said his side would accelerate the transition process, which is currently being led by recently inaugurated BP Batam chief Edy.

The government assigned the Batam mayor as the BP Batam ex-officio chief, although a government regulation for the appointment has yet to be amended. Coordinating Economic Minister Darmin Nasution previously said the deadline for the amendment was April 30.

"What we are working on right now are the problems lying right before us, which are the investments and the work plans. We are also reviewing the deputy chief post as the Batam mayor will be busy with his administrative work," Susiwijono said, adding that his side would accelerate the revision of government regulation PP 46/2007 on Batam's free trade zone.

Vice President Jusuf Kalla said the policy to designate the Batam mayor as the BP Batam ex-officio chief would be implemented soon to put an end to the dual leadership.

"There must be one coalition and one policy, instead of two policies. Both bodies surely need to adjust, so the city administration and BP Batam will be represented by one person and will implement one policy," Jusuf Kalla said during his recent visit to PT Satnusa Persada Tbk in Batam, Riau Islands.

Edy said Batam's status would also be changed to special economic zone (KEK) from free trade zone (FTZ).

"The change of Batam's status from FTZ to KEK does not mean that there will be borders installed in the region. What will be built are virtual borders, meaning there will be documents required for the movement of goods," he said.

Batam Mayor Muhammad Rudi refused to comment as he was still waiting for the policy to be implemented so he could be named ex-officio chief.

However, he promised that the business license would be issued in mere hours under his leadership as opposed to days. (ars)

Oh thank god, they're finally gonna create a singular body. If not it wouldn't matter if Indonesia invests billions of dollars in Batam since the two bodies seemed hell-bent on producing two totally opposed policies, all while the f**king mayor/governor of batam kept on jacking up minimum wage well ahead of national increases.

Batam has been a bloody joke for decades. Lets hope having a singular body will at least mean that a single policy will be focused on, which is better than 2 policies even if it isn't perfect.

___________________
​

https://asia.nikkei.com/Economy/Indonesia-doubles-trade-missions-to-Muslim-markets-in-export-push

(Only have access to it on my phone, I'll probably post the article tmrw. Summary is that Indonesia is pivoting to fellow muslim-majority nations to counteract the effects of trade war. This has been successful in Bangladesh & Pakistan, with inroads being made to muslim African nations such as Senegal, Tunisia, and Morocco. Right now our main competitor in these markets is China, but due to wariness on Chinese ambitions and our own ability to deliver good products & value, we've been quite successful.

Tapping into the muslim African markets is the first step to enter the rest of Africa, and get an indirect trade route to Europe should Indonesian products later be blocked (such as palm oil). Furthermore, the Islamic World is forecasted to grow nearly 3 times the global average in the next 10 years, so its a good idea to use our identity to leverage trade and get a head start before everyone else does.)

 

[Nilgiri]

 

[katarabhumi]

Indonesia, South Korea aim to sign trade deal by November
Tuesday, 19 February 2019

JAKARTA (Reuters) - Indonesia and South Korea agreed on Tuesday to resume talks on a bilateral trade and investment agreement and aimed to sign a deal by November.

Speaking at a business conference in Jakarta, Trade Minister Enggartiasto Lukita said an agreement could boost two-way trade to $30 billion within three years from $20 billion in 2018.

Indonesia had put the negotiations on hold in 2014 due to a change of government in Jakarta and various technical reasons, said Iman Pambagyo, a trade ministry official.

Lukita said Indonesia reopened negotiations to avoid being “left behind”, adding that Vietnam’s trade with South Korea had reached $60 billion.

“South Korea has so much potential for investment and trade,” he said, adding it was the fifth largest foreign direct investor in the Southeast Asian nation.

South Korea was seeking to collaborate in technology and heavy industries, including the chemical and construction sectors, Trade Minister Kim Hyun-chong told the conference.

Indonesia aims to increase exports of agriculture and fishery products, as well as textiles and machinery to South Korea, trade officials said.

https://www.reuters.com/article/us-...ign-trade-deal-by-november-idUSKCN1Q80MG?il=0

.

 

[NEKONEKO]

Repsol unveils biggest gas discovery in Indonesia in 18 years

MADRID (Reuters) - A consortium led by Repsol has found new gas resources in Indonesia estimated at least 2 trillion cubic feet, the Spanish oil and gas firm said on Tuesday, equivalent to around two years’ worth of Spanish demand.

The discovery at the Sakakemang block in South Sumatra is among the 10 largest finds worldwide in the last 12 months, and the biggest in Indonesia for 18 years, Repsol said.

Following its strategy to maximize the use of gas as major economies phase out carbon, Repsol plans to drill another appraisal well in the area in the coming months, it said.

The Madrid-based firm operates the well and holds a 45 percent stake, while Malaysia’s Petronas owns 45 percent and Japan’s MOECO the remaining 10 percent.

The find would translate into more than 350 million barrels of oil equivalent. Before this find, Repsol had global gas reserves equivalent to around 1.7 billion barrels of oil.

https://www.reuters.com/article/us-...covery-in-indonesia-in-18-years-idUSKCN1Q81PU

 

[NEKONEKO]

Indonesia to open fishing zone near disputed S. China Sea

JAKARTA - Indonesia plans to open a fishing zone within its exclusive economic zone at the southern edge of the disputed South China Sea, most of which is claimed by China, later this year, to prevent foreign encroachment, a Cabinet minister said Wednesday.

Coordinating Minister for Maritime Affairs Luhut Pandjaitan told a press conference the fishing zone is located in the Natuna Sea, a section of the South China Sea, which is within Indonesia's EEZ but which China claims to be part of its "traditional fishing grounds."

"We have now a tanker ship there that will supply fuel at sea for our fishermen...and naval patrol boats," Pandjaitan said, expressing hope that by developing the area, "there will be no countries who claim that the zone is their traditional fishing grounds."


China made such a declaration in 2016 after some Chinese fishing boats were caught by the Indonesian authorities for operating illegally in Natuna Sea.

According to Pandjaitan, a fish market, a cold storage and a fish-processing center, as well as other facilities, including a possible boarding house for fishermen, will be built on the Natuna Islands as parts of the fishing zone that will be opened in the third quarter of this year.

Its opening will follow that of a military base with over 1,000 personnel on Natuna Besar Island, located in the middle of the Natuna Islands, which are situated between Borneo and the Malay Peninsula, more than a 1,000 kilometers from Jakarta, in December.

Replacing an unsophisticated airbase and a small naval base, the new base has a hangar for an unmanned aerial vehicle squadron and it will be improved in accordance with threat levels.

In 2017, the Indonesian government unveiled an updated national map in which the country's EEZ north of the Natuna Islands was renamed the North Natuna Sea. It was previously described as being part of the South China Sea.

Immediately after the name change, China expressed opposition to the move, saying changing an internationally accepted name complicates and expands the dispute, affects peace and stability and will not be conducive for the peaceful bilateral relations.

Indonesia countered, however, that it had the right to name its territorial waters and the North Natuna Sea falls within them.

In 2002, Indonesia renamed the section of the South China Sea within its EEZ as the Natuna Sea, except for the waters north of the Natuna Islands. With the latest name change, the term South China Sea is no longer used for any part of Indonesia's territorial waters.

While China recognizes Indonesian sovereignty over the Natuna Islands, it insists the two countries have overlapping claims to maritime rights and interests in the area that need to be resolved -- a claim that Indonesia rejects.

In the South China Sea, home to some of the world's busiest sea lanes, China has overlapping territorial claims with the Philippines, Vietnam, Malaysia and Brunei, as well as Taiwan.
https://news.abs-cbn.com/overseas/02/21/19/indonesia-to-open-fishing-zone-near-disputed-s-china-sea


Pemerintah Bangun Sentra Penangkapan Ikan di Natuna
Liputan6.com, Jakarta - Menteri Koordinator bidang Kemaritiman, Luhut Binsar Panjaitan tengah menyiapkan pembangunan sentra penangkapan ikan di wilayah Natuna. Pembangunan pusat penangkapan ini sekaligus menjaga daerah NKRI.

"Kita sekarang sedang menyiapkan fishing dome, untuk nelayan di Kepulauan Natuna, sehingga dengan demikian tidak ada negara yang mengklaim," kata dia, dalam acara afternoon tea, di Kantornya, Jakarta, Rabu (20/2/2019).

Menurut Luhut, dengan kehadiran pusat penangkapan ikan di Natuna itu, para nelayan akan semakin terbantu. Selain itu, upaya ini merupakan bagian dari pengoptimalan pengelolaan sumber daya maritim Indonesia.

"Kita di daerah ZEE (Zona Ekonomi Eksklusif) itu kan ikannya banyak tuh, jadi di sana kita bikin satu area penangkapan ikan, nah di situ nanti kita siapkan kapal pengantar BBM nya, kemudian ada patroli angkatan laut kita sekalian, mereka menangkap di situ dan ikannya nanti bisa langsung di bawa ke pulau Natuna, di Natuna diproses, ada pasar ikannya dan sebagainya," jelas dia.

"Kapalnya itu bisa beberapa bulan di tengah laut, dan itu saya tanyakan kepada nelayan kita dari sana, Terjal, Muramayu, maupun Rembang, mereka sangat senang kalau itu ada, karena selama ini juga mereka lakukan itu di Papua, sekarang punya pilihan juga di daerah sana, sehingga masalah ini bisa nanti apa namanya tangkapan ikan kita lebih banyak lagi," imbuhnya.

Kehadiran pusat penangkapan ini diyakini bakal menambah jumlah pusat penangkapan dan pengelolaan ikan yang sudah dibangun pemerintah selama ini.

"Ya, tempat penangkapan fishing zone kita kan, fishing zone kita ada 12, karena itu kita teliti lagi, memungkinkan daerah itu kita dapat, karena itu berada di derah ZEE kita," ungkapnya.

Mantan Kepala Staf Kepresidenan ini menargetkan pembangunan pusat penangkapan ikan di Natuna tersebut dimulai pada kuartal III/2018. Meskipun demikian, dia belum dapat menyampaikan secara rinci terkait nilai investasi.

"(Investasi?) Ya bisa jadi besar sekali di sana, karena itu kita buka peluang untuk nelayan kita, untuk bisa mereka dapat, alternatif untuk melakukannya, daripada orang lain yang ambil ikan kan, setuju tidak?" tandas dia.
https://m.liputan6.com/bisnis/read/3900169/pemerintah-bangun-sentra-penangkapan-ikan-di-natuna#

TNI AL Kembali Tangkap Kapal Vietnam yang Curi Ikan di Laut Natuna

NATUNA, KOMPAS.com - Koarmada I kembali berhasil menangkap Kapal Ikan Asing (KIA) asal Vietnam yang masih melakukan pencurian ikan (Ilegal Fishing) di Laut bagian utara Natuna, Minggu (17/2/2019).

Kadispen Koarmada I Letkol Agung Nugroho mengatakan penangkapan ini dilakukan karena KIA asal Vietnam ini diduga melaksanakan kegiatan di dalam Landas Kontinen Indonesia tanpa dilengkapi dokumen.

"Dari hasil pemeriksaan diketahui nama Kapal BT 99506 TS dengan Tonage 99 GT berbendera Vietnam, dengan Nahkoda Hanghuu dan jumlah ABK 3," kata Agung melalui pesan singkatnya, Senin (18/2/2019).

Agung menjelaskan penangkapan berawal saat KRI Bung Tomo-357 melaksanakan patroli sektor di wilayah Perairan Indonesia dan kemudian mendapatkan kontak kapal yang dicurigai melakukan kegiatan pelanggaran di dalam wilayah Landas Kontinen Indonesia pada posisi 05° 51’ 40” U - 105° 49’ 50” T, tepatnya di Perairan Laut Natuna Utara.

Menindaklanjuti hal tersebut, dengan sigap KRI Bung Tomo-357 melakukan prosedur Pengejaran, Penangkapan dan Penyeleidikan (Jarkaplid) dilanjutkan dengan Peran Pemeriksaan dan Penggeledahan terhadap muatan, personel dan dokumen kapal tersebut.

"Ternyata kapal tersebut merupakan KIA asal Vietnam yang melakukan penangkapan ikan tanpa mengantongi izin di wilayah perairan Indonesia," jelas Agung.

Saat ini kapal sedang dalam perjalanan menuju ke Lanal Batam untuk proses pemeriksaan dan penyidikan lebih lanjut.

"Dari dugaan pelanggaran tersebut, maka Komandan KRI Bung Tomo-357 Kolonel Laut (P) Amrin memerintahkan agar Kapal BT 99506 TS di adhoc ke Lanal Batam untuk proses pemeriksaan dan penyidikan," pungkasnya.

https://regional.kompas.com/read/20...p-kapal-vietnam-yang-curi-ikan-di-laut-natuna

Illegal fishing vessel from Vietnam caught in North Natuna Sea by KRI Bung Tomo-357.

 

[katarabhumi]

Indonesia launches first internet-only satellite with SpaceX rocket
Norman Harsono - The Jakarta Post - Tuesday, 26/02/2019

Over 300 people crowded the lobby of telecommunications company Pasifik Satelit Nusantara (PSN) in South Jakarta at 8:30 a.m. on Friday.

They stared intently at a giant LED screen showing a live broadcast of a SpaceX Falcon 9 space rocket located over 17,400 kilometers away at the Cape Canaveral in Florida, the United States.

This was a make-or-break moment for the PSN as the rocket was carrying its sixth and the country's highest capacity satellite to date – the Nusantara Satu satellite – that promises to help bridge Indonesia’s digital gap and thus boost economic activity in the regions outside of Java.

PSN finance director Ravi Talwar was among the viewers in Jakarta.

“I was anxious. It had to work. We had hundreds of people working on this for four years," he said.

His anxiety was justified as the Nusantara Satu project cost US$230 million, financed by the PSN’s internal funds at 30 percent and state-owned export credit agency Export Development Canada at 70 percent.

His hopes were not in vain. Elon Musk’s SpaceX launched the rocket, which also carried two other payloads: a US Air Force experimental spacecraft and an Israeli moon lander that, if it successfully lands in eight weeks, will become the world’s first privately funded moon landing.

This form of “ride-sharing” halved the cost of launching the Nusantara Satu, which used four tons out of the Falcon 9’s maximum seven-ton capacity.

Once reaching its geostationary orbit above Papua within two weeks, the Nusantara Satu, which has a capacity of 15,000 megabits per second (Mbps), is expected to provide internet connectivity of up to 3Mbps for 10,000 Indonesian villages this year.

PSN president director Adi Rahman Adiwoso told reporters during a press conference that his company was very optimistic on growth because poor telecommunications infrastructure outside of Java meant that many people had to rely on the satellite-facilitated internet.

“We cannot enter Java because it has enough internet connectivity, either through 4G or fiber optic. So our service, which is more expensive, cannot compete there,” he said.

Instead, PSN directly sells its satellite internet to remote villages at a pricy rate of Rp 100,000 (US$7.13) per gigabyte (GB), whereas other providers sell 30 GB for Rp 30,000 in Java.

Furthermore, PSN’s promised 3 Mbps internet speed is slower than the last recorded average speed of 7.2 Mbps in Indonesia, according to Akamai Technologies.

Nevertheless, PSN calculated that there were at least 25 million Indonesians, mostly in eastern Indonesia, who could not access conventional internet facilities and thus would have to buy satellite internet.

“We also noticed 40 to 50 percent of Indonesians use video call, which usually consumes above 1 GB of data,” said PSN commerce director Agus Budi Tjahjono.

Talwar said his company expected to record $55 million in revenue each year from Nusantara Satu's operations.

The company is so optimistic over its market potential that it has already begun working on two more satellites named the Nusantara Dua and Nusantara Tiga, which are slated for launch in 2020 and 2022 respectively.

Indonesian Telecommunication Society chairman Kristiono, for his part, supports private sector companies such as PSN that can overcome infrastructure barriers and improve internet penetration in the country.

“It all depends on the private sector because infrastructure problems are a neverending story,” he said.

Communications and Information Minister Rudiantara also expressed support for PSN’s satellite when he attended the announcement of the official launch in December last year.

“We appreciate the private sector’s support for the government’s plan to connect Indonesia and improve economic efficiency,” he said.

The ministry is also working on its own Satria 1 satellite, slated for launch in 2022. The satellite will have a larger capacity of 150 gigabits per second than the Nusantara Satu, but its connectivity will be focused on public facilities, such as schools, clinics and regional administrative offices.

Launch video :

https://www.thejakartapost.com/news...ternet-only-satellite-with-spacex-rocket.html

.

 

[trishna_amṛta]

Instead, PSN directly sells its satellite internet to remote villages at a pricy rate of Rp 100,000 (US$7.13) per gigabyte (GB), whereas other providers sell 30 GB for Rp 30,000 in Java.

Furthermore, PSN’s promised 3 Mbps internet speed is slower than the last recorded average speed of 7.2 Mbps in Indonesia, according to Akamai Technologies.

That price is extremely too expensive even for Ku-Band. With that kind of price PSN need to provide client side equipment (VSAT terminal + dish) to make it attractive enough for customer.

 

[Nike]

Vast tea plantation becomes center of railway project

• Stefanno Reinard Sulaiman
  The Jakarta Post
  

Jakarta / Tue, February 26, 2019 / 08:04 am

A worker cleans debris out of the construction site of a giant tunnel for the Jakarta-Bandung High Speed Train in Walini, West Bandung regency, West Java on Thursday. The railway is to stretch about 142 kilometers from Jakarta to Bandung. (The Jakarta Post/Wienda Parwitasari)
The moment could not be more perfect for the Walini Tea Plantation in West Java four years ago when the High-Speed Train project, which will connect Jakarta and Bandung, West Java, was being discussed by the government.

Several years before the US$6.07 billion-train project officially kicked off in January 2016, the 1,200-hectare plantation, which is owned by state plantation firm PTPN VIII, had become unproductive, both for tea and other kinds of fruits.

“Due to its proximity to the [Cipularang] toll road, the heat [negatively] affected our plantation. Hence, it is no longer suitable for any crop, so we had to come up with other options,” said Denny Yusdiana, a former employee of PTPN VIII.

“We came with a plan to turn the land into an agroindustrial complex in 2010, not long after the train project came. So, the moment was perfect; at a time when we wanted to find added value for this land.”

PTPN VIII also benefited from being included in the project’s consortium, which is made up of three state-owned enterprises (SOEs), namely state construction company Wijaya Karya (Wika), state rail firm KAI and state toll road operator Jasa Marga.

Called Pilar Sinergi BUMN Indonesia (PSBI), the consortium then created a joint venture firm with five Chinese firms (Bejing Yawan), resulting in the creation of PT Kereta Cepat Indonesia China (KCIC).

As a train and property developer, KCIC recently pledged to finish the 142.3-kilometer project, which is fully funded by China Development Bank (CDB), by 2021.

The whole project is called the Jakarta-Bandung High-Speed Train (KCJB) and it will drastically cut travel time to only 36 minutes (direct trip) from the current three and a half hours by regular train.

It will also be followed by major transit-oriented development (TOD) projects at four locations along the railway: at Halim in East Jakarta, Karawang in West Java, Walini in West Bandung and Tegalluar in Bandung.

Watch your step: Workers stand on scaffolding above a giant tunnel built for the Jakarta-Bandung high-speed railway project in Walini, West Bandung regency, West Java, on Feb. 21. (The Jakarta Post/Wienda Parwitasari)

Denny, who is now KCIC’s spokesperson, said Walini is one of the project’s “22 critical spots” or a subproject that needs to be finished first due to its complexity.

“Walini has a hilly topography. And a high-speed train needs a relatively straight railway that is not too tilted. The structure of the land means it’s also prone to landslides,” he said.

There are at least three tunnels in the Walini are that in total will stretch 7.44 km. As of Thursday, 240 meters of one 800-m tunnel and 108 m of a 2.19-km have been excavated.

Meanwhile in terms of land procurement, though he did not disclose the exact percentage, Deny said there were no problems as some the affected areas were owned by PTPN VIII.

“Some locations [in Walini] still need to be released and are currently in a legal process through the court using Law No. 2,” he said, referring to the Law No. 2/2012 on land procurement for public infrastructure.

During Thursday’s visit, The Jakarta Post observed that the tea plantation lacked farming activities, with only one or two farmers were seen collecting grass. A small village and an elementary school were still seen near the project site.

In total, the whole project will have 13 tunnels, seven of which have started their excavation phase, putting KCJB’s progress at 8 percent completion as of December 2018.

Previously, Wika president director Tumiyana said the company expects to wrap up 60 percent of construction this year, before its full completion in 2021.

“Current development is going well as the company has reached 8 percent of the target by the end of last year, while 90.1 percent of the land has been cleared,” he said.

The excavation of tunnels will become the biggest boost to development, comprising 60 percent of the target, Deny said.

He added that the target was realistic, given the fact that work involving external parties, such as land procurement, was complete, leaving only construction.

“The 60 percent work by the end of this year will be in the form of several completed tunnels and finished foundation, such as piles for elevated bridges,” Deny said.

According to data from KCIC, the construction of bridges will be its greatest task as they will span 68 km, while the tunnels will altogether be 16 km long.

Local farmers become construction workers

Basor, 47, a health, safety and environment (HSE) officer at the Walini site, said local residents have responded positively to the project as it would provide job opportunities.

“Some residents are now part of the cleaning staff, some are working in steel processing and some in welding. They will also be [trained and certified],” he told The Jakarta Post.

Basor, who lives about an hour from the site, further said that some residents were able to sell their land for 10 times their original price.

“[Land acquisition wasn’t] that bad, I heard that some of them were able to go to Mecca [for haj]. Prior to the project, they would have received Rp 10,000 [71 US cents] per meter, while at present, they could get up to Rp 100,000 per meter,” he added.

China’s hands all over the project

During Thursday’s visit to the Walini site, it was hard not to see the “China factor” in the project, as almost aspect of it – from the heavy equipment to technicians – was from China.

The ratio between China’s workers and Indonesian workers was set at 1:4, meaning there must be four Indonesian workers for every Chinese worker.

According to KCIC data, the project involves 4,749 workers.

Into the light: Workers arrange equipment inside a giant tunnel built for the Indonesia-China high-speed railway project in Walini, West Bandung regency, West Java, on Feb. 21. (The Jakarta Post/Wienda Parwitasari)

One of the Chinese’s workers is Nan Lee, 30, a quality control and safety officer who said he had worked at the Walini site for three years.

“I am happy to have the chance to work here in Indonesia. […] I have no problems so far in communicating with the fellow Indonesian workers as we have translators,” said Lee, who comes from Shan Xi province in northern China.

The Walini site has 63 local workers and 27 Chinese workers, which does not meet the set ratio, but Deny said the former did not include indirect workers such as third-party truck drivers.

One of the brands of heavy equipment roaming the Walini site is China’s Sany Heavy Industry Co., Ltd.

When asked about the proportion between China and Indonesia in terms of used equipment or material, Deny acknowledged that China contributed mainly to the project’s heavy equipment.

“That’s what the contract [KCJB] stipulates, as we also need [the heavy equipment] to comply with the technology that we use. But the raw materials we use, like sand, are from [Indonesia],” he said.

Agus Supriadi, 43, a Wika workshop supervisor for the KCJB project at Walini, said the technology from China helped minimize the manpower required on-site, such as the rebar cage machine.

“Besides allowing us to learn about the technology, these machines also help us work faster,” he said.


https://www.thejakartapost.com/news...tation-becomes-center-of-railway-project.html

 

[Robin Wong]

The Differences between MRT, LRT and Commuter Line

• Jakarta, which has topped various lists of cities with the world’s worst traffic, enters a new era this year. This month, it will welcome the country’s first mass rapid transit (MRT) and the capital’s first light rail transit (LRT).
  
• The gov't hopes the new transit modes will see more people leave their cars or motorbikes at home and opt for public transportation to get around the city.
  
• Passengers can expect to easily hop between different modes of transportation on a trip.

Jakarta MRT

Jakarta LRT

JaBoDeTaBek Commuter Line (KRL)

 

[Nike]

Three Strategic National Projects of Indonesia to Be Completed in 2019
11 February 2019 |

• New Yogyakarta International Airport
• Patimban Seaport
• National Strategic Projects
• MRT Jakarta
• Infrastructure

The construction of three national strategic projects - worth a combined IDR 70 trillion (approx. USD $5 billion) - is targeted to be completed before the end of 2019. These three projects are: (1) the first phase of Jakarta's mass rapid transit (IDR 16 trillion), (2) the New Yogyakarta International airport (IDR 10.8 trillion), and (3) the Patimban seaport in Subang, West Java (IDR 43.2 trillion).

When an infrastructure project is labelled a 'national strategic project' it means the project is regarded a priority project that brings great benefit to the economy and society as a whole. The priority status further means that all ministers, government agencies and governors need to support the development of the project.

Patimban Seaport

Indonesia's Transportation Minister Budi Karya Sumadi said the Patimban seaport is expected to start operations in December 2019. Currently, construction is mainly focused on the waterside. Karya emphasized that there are no obstacles and therefore he does not expect to see a delay.

The Patimban seaport is envisaged to become an international seaport with a 7.5 million twenty-foot equivalent units (TEU) capacity, hence relieving busy traffic at Jakarta's Tanjung Priok port (Indonesia's busiest port that handles around 65 percent of the nation's international trade). The Patimban seaport will particularly become an important port for incoming and outgoing shipments of cars. The seaport will be able to handle 600,000 vehicles per year in the first phase of the project.

MRT Project Jakarta

Meanwhile, at the end of March 2019, the new mass rapid transit (MRT) should start commercial operations in Jakarta. Starting from 26 February there will be a testing period (in which local people are invited to participate).

William Sabandar, President Director of MRT Jakarta, said completion of the first phase of the project has reached 98.58 percent.

New Yogyakarta International Airport

Development of a new IDR 10.8 trillion (approx. USD $771 million) airport in Yogyakarta - called New Yogyakarta International Airport or Kulon Progo Airport - is still going on schedule. Actually construction is ahead of schedule. While initially the project was planned to be completed in July 2020, operations are now expected to start much earlier. In April, when construction is targeted to be completed for 75 percent, international flights will start arriving at the new airport (while domestic flights will still go through the old Adisutjipto Airport). In 2020, the new airport will also handle the domestic flights.

Considering the New Yogyakarta International Airport is located near the Indian Ocean - in a region that is known as the Pacific Ring of Fire - there is always the risk of tsunamis. Therefore, the developers have taken into account this risk when designing the structures of the airport to mitigate the possible damage that is done by a tsunami.

Construction costs of the new airport are estimated at IDR 6.7 trillion, while funds that were needed to acquire the land reached IDR 4.1 trillion. Once finished, Kulon Progo Airport is capable of handling 14 million air passengers per year.

 

[Nike]

Pertamina aims to drill 300 wells this year

• Stefanno Reinard Sulaiman
  The Jakarta Post
  

Jakarta / Tue, March 5, 2019 / 07:31 pm

An offshore oil rig on the Mahakam Block. (Tempo/SG Wibisono)
State-owned energy holding company Pertamina aims to drill 300 wells this year in a bid to jack up its oil and gas production to an average of 928,000 barrels of oil equivalent per day (boepd).

The company plans to drill 120 wells in its newly acquired Mahakam Block in East Kalimantan, on which production has been declining, Pertamina upstream director Dharmawan Samsu told the press in Jakarta on Monday.

“There isn’t another way [to increase production] except to conduct aggressive drilling,” Dharmawan said, adding that about 40 wells would be created in the Sanga-Sanga Block.

Pertamina, which is represented by its subsidiary Pertamina Hulu Sanga-Sanga (PHSS), took over the block on Aug. 8 from a United States oil and gas firm, the Virginia Indonesia Company (VICO), which had operated the block for more than four decades.

Oil exploration is crucial as Indonesia only has proven oil reserves of about 3.2 billion barrels, 0.2 percent of the world’s proven reserves.

Indonesia has been an oil importer since at least 2004 and currently the country consumes about 1.5 million barrels of oil, half of which is produced domestically.

Dharmawan said the target of 928,000 boepd would be hit mainly through its gas production, which is aimed to be 514,000 boepd.

Apart from drilling, Pertamina also plans to boost the production of existing wells through enhanced oil recovery (EOR) by pumping water, carbon dioxide, or other chemical substances, Dharmawan said, adding that the company also planned to acquire mature oil and gas fields in other countries.

“In other countries, we are not interested in exploration blocks, but we only seek mature assets.” he said. (bbn)

 

[Nike]

Household gas program cuts LPG monthly imports by Rp 18.08 billion

• Stefanno Reinard Sulaiman
  The Jakarta Post
  

Jakarta / Thu, March 7, 2019 / 08:14 am

A tenant checks a gas meter at the Marunda low-cost apartments in North Jakarta. (Antara/Wahyu Putro A)
The Downstream Oil and Gas Regulatory Agency (BPH Migas) says a gas network program that connects gas pipelines to households has helped reduce the import of liquefied petroleum gas (LPG) by Rp 18.08 billion (US$1.28 million) per month in 2018.

BPH Migas tariff regulatory section head Irawan Bayu Kusuma said by connecting gas networks to more households, fewer people would rely on LPG sold in 3 and 12 kilogram canisters.

“We managed to cut LPG imports by 2,831 tons per month, worth Rp 18.08 billion, in 2018,” said Irawan in Jakarta on Tuesday. Indonesia still imports 5 million tons of LPG, 60 percent of the country’s consumption.

Therefore, the official expressed the hope that the government could accelerate the gas network program to facilitate people in shifting from LPG in canisters.

Meanwhile, BPH Migas chairman Fansurullah Asa said in a press statement that the price of gas distributed through pipelines was lower than the price of LPG in canisters. He said the prices were based on the calculation of project profitability and people's purchasing power.

There are two schemes in gas pricing -- Rp 4,250 per cubic meter for household and small customers such as apartments and social service buildings and Rp 6,250 per cu m for middle to luxury houses and businesses. Both prices are 15 percent lower than the price of LPG in canisters.

Since its launch in 2009, the national gas network program has connected gas pipelines to 235,935 households in 31 regions as of 2017. In 2018, there were 89,906 more gas connections in at least 18 locations.

The government is targeting to connect 5 million households to gas pipelines by 2025. (bbn)