Indonesia Economy Forum

[katarabhumi]

Indonesia's Growth Momentum Seen Supported by Spending Boost
By Karlis Salna, May 4, 2019, 5:00 PM EDT

Indonesia’s economy probably maintained momentum in the first quarter, helped by solid spending that was further boosted as elections were held across the country.

Gross domestic product grew 5.18 percent in the three months through March from a year earlier, according to the median estimate of 18 economists surveyed by Bloomberg. That pace is the same as the growth in the fourth quarter of last year.


Key Insights

• Southeast Asia’s biggest economy is forecast to grow 5.3 percent this year, the fastest pace since 2013. That’s still well below the 7 percent target set by President Joko Widodo when he took office in 2014
• While growth has been hovering around 5 percent since 2016, there are questions over whether the economy can hit the government’s projections for 2019, as Indonesia wrestles with a slump in manufacturing
• There is some “bigger homework ahead for tax officials” amid signs of a potential slowdown, said Satria Sambijantoro, an economist from PT Bahana Sekuritas in Jakarta. Tax revenue from Indonesia’s manufacturing sector, the largest contributor to GDP and which normally accounts for about a third of total tax revenue, fell almost 9 percent in the first quarter, he said
• While six interest rate hikes since May last year restricted growth, Bank Indonesia has said its benchmark rate is now probably near its peak. The prospect that policy easing could be on the table is a boost for Widodo, known as Jokowi, as he looks to reboot his economic plans ahead of a second five-year term
• With the election out of the way, investors who sat on the sidelines during a campaign that started back in September could start pumping in money. Retail sales have been strong over the first three months of the year, growing by 9 percent in February and 8 percent in March. The February growth was the fastest since December 2016

What Economists’ Say

• Enrico Tanuwidjaja, the head of economics and research for PT UOB Indonesia in Jakarta, said some inventory build-up and steady household consumption, as well as some election campaign spending, likely added to overall growth in the first quarter
• UOB sees headline growth will remain “sluggish” for the full year, at around 5.2 percent. “The medium-term challenge is in attracting FDI into more export oriented sectors, hopefully in areas where more and more local content is used,” he said

Get More

• Sequentially, GDP fell 0.42 percent in the three months to March, according to the median estimate of 14 economists surveyed by Bloomberg. That’s better than the 1.69 percent contraction in the three months ended December

https://www.bloomberg.com/news/arti...wth-momentum-seen-supported-by-spending-boost

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[Logam42]

Get More

• Sequentially, GDP fell 0.42 percent in the three months to March, according to the median estimate of 14 economists surveyed by Bloomberg. That’s better than the 1.69 percent contraction in the three months ended December

https://www.bloomberg.com/news/arti...wth-momentum-seen-supported-by-spending-boost

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...what? That last part doesn't make sense.

 

[NEKONEKO]

Indonesia, South Korea target to complete IK-CEPA talks this year

Trade Ministry international trade negotiations director general Iman Pambagyo (Courtesy of Trade Ministry/File)

Indonesia and South Korea aim to complete negotiations for the Comprehensive Economic Partnership Agreement (IK-CEPA) this year to boost bilateral trade and other economic relations, an official has said.

According to Trade Ministry international trade negotiation director general Iman Pambagyo, both countries had exchanged initial trade in goods requests during the eighth round of IK-CEPA negotiations, which will be followed by initial offers held in June.

He said both nations were committed to improving the offers they had made in the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN-South Korea Free Trade Areas (ASEAN-South Korea FTA).

“Indonesian-South Korean trade could have reached US$20 billion,” he said as quoted by Kontan.co.id.

Other issues to be discussed include reviews on trade in services, role of origin (ROO) and customs procedures and trade facilitation (CPFT).

With regard to trade in services, both parties had reviewed text that had been agreed on in the previous round, he said.

Iman stressed the importance of completing IK-CEPA negotiations as soon as possible because trade between the two countries had not been optimally explored.

Last year, bilateral trade between the two countries reached $18.6 billion, of which Indonesia enjoyed a $443.6 million surplus.

Indonesia currently has two CEPA agreements, namely with Australia (IA-CEPA) and with the European Free Trade Association (Indonesia-AFTA CEPA). (bbn)

https://www.thejakartapost.com/news...rget-to-complete-ik-cepa-talks-this-year.html

 

[Indos]

Indonesia state owned company profit in 2018 is more than Rp 200 trillion

News is in Indonesian https://money.kompas.com/read/2019/...=Dlvrit&utm_source=Facebook&utm_medium=Social

 

[Bungaterakhir]

Construction visible from space, edited by Alarvas

Yellow lines are toll roads in operation
Red lines are visible construction sites.

Expressway project inside and around Jakarta
The picture is taken from BPJT-GIS, with additional edit.
Source: http://gis.bpjt.pu.go.id/

Magenta lines denote toll road in operation
Bluish grey lines denote toll road under construction
Dark orange lines denote toll road in strategic plan 2019-2024.
Light orange lines denote newly proposed toll road by corporations or local government with a high chance for approval.

Toll roads in operation are not explained in the legend.
1. CGK Airport - Kunciran (14,2 km)
2. Kunciran - Serpong (11,2 km)
3. Serpong - Cinere (10,14 km)
4. Cinere - Jagorawi Toll Road (Cimanggis) (14,4 km)
5. Cimanggis - Cibitung (25,21 km)
6. Cibitung - Cilincing (Tj. Priok Port) (32,02 km)
1-6 are 2nd Jakarta Outer Ring Road, 107,16 km in total, the segments will be opened one by one between 2019 and 2020.

7. Sunter - Pulogebang (9,44 km) - expected for operation in 2020
8. Semanan - Sunter (20,23 km)
9. Ulujami - Tanahabang (8,7 km)
10. Pasarminggu - Casablanca (9,15 km)
11. Duri Pulo - Kp. Melayu (12,65 km)
12. Kp. Melayu - Kemayoran (9,6 km)
7-12 are 2nd Jakarta Inner Ring Road and its connecting routes, 69,77 km in total.

13. Development of Tj. Priok Toll Road Access
14. Becakayu Toll Road, 21,04 km, partly operational.
15. Depok - Antasari, 21,54 km, partly operational.
16. Serpong - Balaraja, 39,8 km
17. Kamal - Teluk Naga - Rajeg, 39,4 km
18. South Japek (Jakarta-Cikampek), 60 km
19. Elevated Japek (above the existing Japek), 36,36 km

Expressway projects in the western part of Java.

Similar legend as the above picture, three blue dots denote existing or newly developed ocean port.
1. Serang - Panimbang, 84 km
2. Ciawi - Sukabumi, partly operational, 53,6 km
3. Cisumdawu Toll Road, partly finished but not operational, 60,3 km
4. Sukabumi - Ciranjang - Padalarang, 57 km
5. Patimban Port Access Toll Road, 37,7 km
6. Bandung Intraurban Toll Road (several segments, the priority segments are still debated), North-South Link could be constructed first, 14,3 km
7. Tol Cigatas, with further development to Cilacap, 180 km in total.
8. Sukabumi - Pelabuhan Ratu, ? km
9. Bogor Ring Road, partly operational, 11 km in total, with further development routes are still debated.

The length of the operational expressway in the western third of Java up to this time is 700 km. Addition of new expressway until 2022: 892,97 km. Total length could be 1692 km. Expressway in other regions are not included.

 

[GraveDigger388]

Construction visible from space, edited by Alarvas

Yellow lines are toll roads in operation
Red lines are visible construction sites.

Expressway project inside and around Jakarta
The picture is taken from BPJT-GIS, with additional edit.
Source: http://gis.bpjt.pu.go.id/

Magenta lines denote toll road in operation
Bluish grey lines denote toll road under construction
Dark orange lines denote toll road in strategic plan 2019-2024.
Light orange lines denote newly proposed toll road by corporations or local government with a high chance for approval.

Toll roads in operation are not explained in the legend.
1. CGK Airport - Kunciran (14,2 km)
2. Kunciran - Serpong (11,2 km)
3. Serpong - Cinere (10,14 km)
4. Cinere - Jagorawi Toll Road (Cimanggis) (14,4 km)
5. Cimanggis - Cibitung (25,21 km)
6. Cibitung - Cilincing (Tj. Priok Port) (32,02 km)
1-6 are 2nd Jakarta Outer Ring Road, 107,16 km in total, the segments will be opened one by one between 2019 and 2020.

7. Sunter - Pulogebang (9,44 km) - expected for operation in 2020
8. Semanan - Sunter (20,23 km)
9. Ulujami - Tanahabang (8,7 km)
10. Pasarminggu - Casablanca (9,15 km)
11. Duri Pulo - Kp. Melayu (12,65 km)
12. Kp. Melayu - Kemayoran (9,6 km)
7-12 are 2nd Jakarta Inner Ring Road and its connecting routes, 69,77 km in total.

13. Development of Tj. Priok Toll Road Access
14. Becakayu Toll Road, 21,04 km, partly operational.
15. Depok - Antasari, 21,54 km, partly operational.
16. Serpong - Balaraja, 39,8 km
17. Kamal - Teluk Naga - Rajeg, 39,4 km
18. South Japek (Jakarta-Cikampek), 60 km
19. Elevated Japek (above the existing Japek), 36,36 km

Expressway projects in the western part of Java.

Similar legend as the above picture, three blue dots denote existing or newly developed ocean port.
1. Serang - Panimbang, 84 km
2. Ciawi - Sukabumi, partly operational, 53,6 km
3. Cisumdawu Toll Road, partly finished but not operational, 60,3 km
4. Sukabumi - Ciranjang - Padalarang, 57 km
5. Patimban Port Access Toll Road, 37,7 km
6. Bandung Intraurban Toll Road (several segments, the priority segments are still debated), North-South Link could be constructed first, 14,3 km
7. Tol Cigatas, with further development to Cilacap, 180 km in total.
8. Sukabumi - Pelabuhan Ratu, ? km
9. Bogor Ring Road, partly operational, 11 km in total, with further development routes are still debated.

The length of the operational expressway in the western third of Java up to this time is 700 km. Addition of new expressway until 2022: 892,97 km. Total length could be 1692 km. Expressway in other regions are not included.

Can't wait for Cigatas. Nagreg will be liberated, at last.

 

[Nike]

BUSINESS
Freeport to fully operate 500-km underground mine in Papua

• News Desk
  The Jakarta Post
  

Jakarta / Mon, May 6, 2019 / 03:11 pm

Three workers talk underground at the Grasberg mine in Timika, Papua, in this undated photograph. (Courtesy of/PT Freeport Indonesia)
Mining giant PT Freeport Indonesia (PTFI) will close its open-pit mine this year and will soon fully operate an underground mine, which features a 500-kilometer tunnel the company had been building since 2015.

The company has started to produce gold and silver from Deep MLZ.

“It is not a straight [tunnel]. It has branches [and] there are mines that are spiral deeper into the ground,” PTFI vice president corporate communication Riza Pratama said as quoted by kontan.co.id on Sunday.

He was speaking to officials from the Energy and Mineral Resources Ministry who visited the underground mine last Friday.

Riza explained that the air inside the underground mine was clean because each corner of the mine had been equipped with large fans that ensure air flow by pumping out the air from inside the mine and bringing in fresh air from outside.

At about 7 kilometers from the entrance, Riza said the walls of the 7-meter-wide and 10-m-high tunnel were made of concrete.

“This location is in safe and stable condition,” he added.

Meanwhile, light sources inside the tunnel were bright enough to support the operation of heavy equipment. The underground mine is also equipped with a mosque and church, toilets and clean water facilities.

Currently, PTFI has 7,096 permanent employees, but including contract-based workers and vendors, the figure goes up to 30,542 people. (bbn)

https://www.thejakartapost.com/news...operate-500-km-underground-mine-in-papua.html

 

[Nike]

An infrastructure boom is under way in Indonesia, after the administration of President Joko Widodo committed to developing $414.6bn of new public works projects between 2015 and 2019, including large-scale transportation, utilities and ICT projects, as well as new schools, hospitals, and water supply and treatment plants. In recent years the government has mobilised a coordinated effort to deliver planned projects, with dozens of state actors collaborating to develop new infrastructure policy, including an organised framework for public-private partnerships, new finance models and risk management reforms. Public expenditure on infrastructure is expected to hit a historic high in 2017.

This chapter contains interviews with Bambang Brodjonegoro, Minister of National Development Planning; and Jin Liqun, President, Asian Infrastructure Investment Bank.

https://oxfordbusinessgroup.com/indonesia-2018/infrastructure

 

[Nike]

Vice President of Argentina Michetti pays courtesy call to Kalla
7th May 2019 17:20

Vice President of Argentina Gabriela Michetti made a courtesy call to Vice President M Jusuf Kalla on Tuesday and the two held a closed-door meeting to discuss efforts to step up bilateral cooperation between the two countries, particularly in the field of trade.

Jakarta (ANTARA) - Vice President of Argentina Gabriela Michetti made a courtesy call to Vice President M Jusuf Kalla on Tuesday and the two held a closed-door meeting to discuss efforts to step up bilateral cooperation between the two countries, particularly in the field of trade.

"So far, our trade balance is at US$2 billion, and we suffer a deficit because we import agricultural products from Argentina," Kalla told the press following the bilateral meeting.

Indonesia will increase its exports to Argentina and the matter will be discussed by the trade ministers of the two countries, Kalla noted.

A ministerial-level meeting will be held to follow up on the results of the talks between Kalla and Michetti, especially regarding efforts to intensify trade and investment cooperation between the two nations.

Michetti said Argentina wanted to explore cooperation with Indonesia in the fields of agriculture, food, and infrastructure development.

"There are many businessmen in Argentina interested in investing in Southeast Asia, and in Indonesia in particular," Michetti said.

Argentina is Indonesia's second largest trade partner in South America.

EDITED BY INE


By Franciska N, Fardah

Editor: Eliswan Azly

COPYRIGHT © ANTARA 2019

 

[Nike]

Campaign for cooking with electricity hampered by households’ low power capacity

• Stefanno Reinard Sulaiman
  The Jakarta Post
  

Jakarta / Tue, May 7, 2019 / 01:57 pm

The government is preparing a nationwide program to promote induction cooking, which uses electricity to heat pots and pans, and reduce household dependency on imported liquefied petroleum gas (LPG), particularly subsidized LPG distributed in 3-kilogram canisters.

However, concerns have been raised that the weak power capacity of low-income homes may hamper the campaign.

According to Syamsul Huda, the Sulawesi business director for state-owned electricity company PLN, induction cooking cannot be used by households whose electricity capacity is 450 kilovolt-ampere (kVA).

“The government is still searching for a solution for 450-kVA electricity customers […] We have no problems in the side of supply, but it is merely a technicality issue as the subsidized electricity capacity is too weak [for induction cooking],” he said.

Syamsul explained that induction cookers have various power capacities, starting from 300 watts to 1,400 watts. To encourage customers to use induction cookers, PLN is offering a 75 percent discount for electricity capacity upgrades from March until the end of 2019.

Before March, 830 PLN customers had applied for the program and more than 10,000 PLN employees had used induction cookers.

“We have just begun to introduce the induction cooking to our customers. We have a special team to promote the benefits of these cookers, including the fact that they are less costly and safe,” Syamsul said, adding that the cooking equipment was also environmentally friendly.

Earlier on Monday, PLN’s board of directors met with Energy and Mineral Resources Minister Ignasius Jonan to discuss ways to increase electricity consumption.

Syamsul said the minister also called on PLN to boost electricity consumption not only in households but also in the transportation sector to cut oil imports.

The induction cooking program was introduced several years ago as the government wanted to cut the consumption of LPG, 70 percent of which was still imported.

“We are trying to replace [LPG] with electricity. The cost is about 50 to 60 percent lower. Currently, we consume around 6.5 million tons of LPG annually, 4.5 million of which is imported,” he said. (bbn)

https://www.thejakartapost.com/news...ampered-by-households-low-power-capacity.html

 

[Nike]

Indonesia's forex reserves stable at US$124.3 billion in April 2019
8th May 2019 13:45

The central bank recorded a relatively stable level of Indonesia's foreign exchange reserves at US$124.3 billion at the end of April 2019 than $124.5 billion at March-end this year.

Jakarta (ANTARA) - The central bank recorded a relatively stable level of Indonesia's foreign exchange reserves at US$124.3 billion at the end of April 2019 than $124.5 billion at March-end this year.

The figure was equal to the financing of 7.1 months of imports or 6.8 months of imports and payment of the government's foreign debts, surpassing the international standards of three months of imports, Executive Director of Bank Indonesia's Communication Department Onny Widjanarko revealed in Jakarta on Wednesday.

Bank Indonesia believed the foreign exchange reserves were able to support the external sector resilience and maintain stability of the macroeconomic and financial system.

Foreign exchange earnings, receipts of other foreign currencies, and repayments of the government's foreign debts contributed to foreign exchange reserves worth $124.3 billion at the end of April 2019.

The central bank is also confident of adequate foreign exchange reserves of the country in future, driven by buoyancy in the good stability and prospects of the domestic economy.

Indonesia's economy recorded a 5.17 percent growth in 2018 than 5.07 percent a year earlier.

The Central Statistics Agency (BPS) had made an announcement early this month of the domestic economy recording a 5.07 percent growth in the first quarter of 2019 as compared to 5.06 percent in the same quarter last year.

However, the economic growth in the first quarter of 2019 was lesser than 5.18 percent in the previous quarter. EDITED BY INE


Editor: Eliswan Azly

COPYRIGHT © ANTARA 2019

 

[Bungaterakhir]

Expressway projects in the central third of Java

Magenta lines denote expressway in operation
Bluish grey lines denote expressway under construction
Dark orange lines denote expressway in the strategic plan (surely will be built)
Light orange lines denote expressway proposed by corporations or local government with a high chance for approval.
Three blue dots represent oceanic container port

1. Surakarta - Yogyakarta - New Yogyakarta International Airport (NYIA), construction will commence this year (92 km)
2. Bawen - Yogya, construction will commence this year (75 km)
3. NYIA - Kebumen - Cilacap (145 km)
4. Semarang - Gresik (satellite town of Surabaya) (245 km), the first phase, Semarang - Demak (27 km) will be started this year.
5. North section of Semarang Outer Ring Road (Mangkang - Arteri Utara) (14,18 km)
6. Other segments of Semarang Outer Ring Road, could be built as an arterial road (52 km).
7. Tegal - Cilacap (around 110 km), possibly linked with Purwokerto through Ajibarang - Purwokerto toll road, as the local government proposed.
8. Bandung - Cilacap toll road (180 km), mentioned in an earlier post.
NB: All expressway in the Yogyakarta province will be elevated above the existing road or canal, to avoid incursion into archaeological sites and socio-cultural reasons.

Expressway projects in the eastern third of Java

1. Krian - Legundi - Bunder - Manyar (unofficial Surabaya Outer Ring Road) (38,4 km), will be operational this year
2. Pandaan - Malang (38,48 km), could be operational next month, the last segment is re-routed because a new archaeological site discovered there.
3. Probolinggo - Banyuwangi (185 km), the last segment of Trans Java toll road.
4. Kertosono - Kediri (27 km), could be extended to Blitar or linked with Kepanjen.
5. Malang - Kepanjen (35 km), could be linked with Blitar
6. Batu - Singosari (around 15 km), Batu is a tourism city and nature escape in East Java, several proposed routes exist.
7. Probolinggo - Lumajang - Jember (around 80 km), proposed by the local cities and regencies.
8. Semarang - Gresik (245 km), linked with Central Java, mentioned earlier.
9. Mojokerto - Mojosari - Gempol (30 km), proposed by a state-owned construction company, with high demand from traffic and industrial areas there.

More or less..
Total existing expressway in the central and eastern part of Java: 696,1 km
Total addition of new expressway until 2024: 1130,06 km
Total length of expressway until 2024: 1826,16 km

Total existing expressway in Java Island: 1396,1 km
Total addition of new expressway until 2024: 2023,03 km
Total length of expressway until 2024: 3419,13 km

Southern part of Semarang Outer Ring Road is not included.

 

[Nike]

Government to build 500 vocational schools
5 minutes ago

Cikarang, Bekasi (ANTARA) - Industry Minister Airlangga Hartarto has said the Government has set a target of building 500 vocational schools by 2024.

The development of human resources could directly affect the country's economy, the minister said here on Friday, adding that the National Mid Term Development Plan (RPJMN) will focus on the development of human resources.

The construction of 500 new vocational schools will involve the Government and the private sector, and it will be at the high school, as well as the higher education levels, according to him.

"Hence, it's not only the Government, because we will also encourage industries to set up vocational schools and polytechnics. They are capable of and interested in setting up vocational education because they need human resources. The Industry Ministry has developed four vocational schools and polytechnics but the President has asked for the massive development of vocational education," he remarked.

President Director of PT Astra International Tbk Prijono Sugiarto has said Polman Astra Cikarang is the first vocational higher education college in Bekasi District, West Java Province.

Polman Astra does not only focus on the study program, but also develops competence certifications, such as the German Meister (master craftsman) certification in the automotive field.

"The Meister certification in Polman Astra in the first in Asia. We are indeed serious in developing this vocation. Some 60 percent of the graduates have been absorbed by Astra," he said.



Editor: Suharto

COPYRIGHT © ANTARA 2019

https://m.antaranews.com/en/news/125299/government-to-build-500-vocational-schools

 

[katarabhumi]

Indonesia plans to construct 4,479 km toll roads by 2030
The Jakarta Post - Thu, May 9, 2019 / 08:07 am

The government plans to develop 4,479.33 kilometers of toll roads by 2030 in addition to the 1,500 km toll road projects that are to be completed in 2024 to support mobility, an official has announced.

The Public Works and Housing Ministry’s road development director general, Sugiyartanto, said the new toll roads would particularly open access to tourist destinations and other new centers of economic growth.

“It is a vision toward 2030, while from 2020 to 2024, we will complete the 1,500 kilometer toll road program,” he said as quoted by kompas.com on Tuesday.

The new toll road project will be implemented on Java, Sumatra, Kalimantan, Sulawesi, Bali and Nusa Tenggara.

He said the implementation of the project would be adjusted to the needs of each region in line with the development of other infrastructure. He said the existing roads would not be able to accommodate the increasing transportation needs of all regions.

“So, the opening of new roads is needed to provide access for new industrial areas, special economic zones and new [and expanded] airports,” Sugiyartanto said.

He added that the medium toll road program required Rp 671.8 trillion (US$46.98 billion).

He stressed that the funds would not only come from the state budget but also from the private sector. (bbn)

https://www.thejakartapost.com/news...-to-construct-4479-km-toll-roads-by-2030.html

+++

Indonesia Introduces AI-Powered Batik Analyzer to Battle Cheap Knockoffs
BY : EMANUEL KURE - MAY 11, 2019

Jakarta. The government has made it easier for customers to distinguish between authentic batik and cheap knockoffs from abroad, by using just their smartphones.

The Ministry of Industry introduced Batik Analyzer, a smartphone application, during this year's Nusantara Batik Exhibition in Jakarta on Friday. The app is available for Android and iOS smartphone operating systems and uses artificial intelligence, which right now, can differentiate the original from a counterfeit item about 75 percent of the time, said Titik Purwati Widowati, head of the Yogyakarta Center for Crafts and Batik.

The center developed the app in cooperation with the industry ministry's Industrial Research and Development Agency (BPPI).

"The Batik Analyzer application is currently only available in first beta," Titik said, inferring that the app is fully functional, but may still contain several bugs.

She said the agency will continue to improve the app to reach 95 percent accuracy soon.

Indonesian batik, recognized as world cultural heritage, relies on long lines of artisans to draw or print intricate patterns on the cloth by hand. Machine-made knockoffs, mainly from textile factories in China, have been flooding local markets in recent years and harmed the local industry due to these items being considerably cheaper than the original.

According to data provided by the Central Statistics Agency (BPS), imports of the cheap knockoffs amount to more than $30 million per year, which is nearly half the value of Indonesia's annual batik exports.

"This innovation originated from the difficulties encountered by members of the public to distinguish between batik and artificial fabrics available on the market, especially the flood of imported artificial batik products at very low prices," Titik said.

The app will give customers confidence to buy batik from Indonesian businesses because they can always check the originality of the products.

"This application is expected to be a solution to protect the national batik industry in the face of Industry 4.0," Titik said.

BPPI head Ngakan Timur Antara said the government encourages local industry to continue innovating to boost economic growth.

"To come up with innovations that meet the needs of the industrial world, the ministry continues to work with the private sector to contribute to research activities or technology transfers that support the progress of the national manufacturing sector," he said.

Indonesia's batik exports amounted to $52 million last year and the government hopes to increase this by between 6 percent and 8 percent this year.

Local batik output on the other hand, grew 19 percent in the first three months of this year, compared with the same period last year, according to the ministry. This topped the growth rate of all other types of manufacturing in the country, as well as growth in national output, which was 5.07 percent.

The batik industry currently provides around 212,000 jobs in 101 production centers, mainly in Java.

https://jakartaglobe.id/culture/ind...ered-batik-analyzer-to-battle-cheap-knockoffs

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[Nike]

Government projects tourism forex earnings to hit US$18 billion
14th May 2019 23:18

Tourism Minister Arief Yahya has projected that the tourism sector will contribute US$17.6-18 billion to the national economy. (Doc. Tourism Ministry)

Jakarta (ANTARA) - Tourism Minister Arief Yahya has projected that the tourism sector will contribute US$17.6-18 billion to the national economy, well above foreign exchange earnings from crude palm oil (CPO), which is now the country's largest foreign exchange earner.

The number of tourist arrivals in the country is projected to reach 18 million by the end of 2019, he said after swearing in administrative officials, supervisory officials, functional officials and officials of the authority boards at the ministry in Jakarta on Tuesday.

"I informed President Joko Widodo of this figure when he asked me about the tourism projections for this year," he said.

The projection of 18 million tourist arrivals represents a two-fold increase over the past five years, although it falls short of the target of 20 million for this year, he said.

"When I assumed the post of tourism minister in 2015, the number of tourist arrivals was 9 million. The figure increased two-fold to 18 million in the past five years," he said.

The government has projected that foreign exchange earnings from the tourism sector will reach US$17.6 billion-US$18 billion this year. The figure surpassed foreign exchange earnings from crude palm oil (CPO), which were listed as the country's largest exchange earner last year.

Foreign exchange earnings from the tourism sector were equal to those of CPO, when the number of tourist arrivals reached 16.4 million last year, with foreign exchange earnings recorded at US$16.1 billion.

The minister said the ministry will cooperate with tourism stakeholders to carry out four programs to achieve the target of 18 million tourist arrivals. The four programs include border tourism, hot deals, tourism hubs, and LCC Terminal.

"Through the border tourism program, we target (the number of tourist arrivals) to reach 3.4 million. Last year it stood at 18 percent, and is projected to increase to 20 percent of the target ot tourist arrivals this year," he said.

The hot deal program offers huge discounts during low season and is expected to contribute 2 million-2.5 million tourist arrivals.

"Through the hot deal program last year, we managed to sell 700,000 pax, with the largest share of 20 percent coming from Riau Islands," he said.

To implement the tourism hub program, the ministry is cooperating with Singapore and Kuala Lumpur, Malaysia. "This program is a solution for direct flights, which are difficult to find and take a relatively long time," he said.
Editor: Sri Haryati

COPYRIGHT © ANTARA 2019