Indonesia Economy Forum

[barjo]

That is a very interesting statement, I hope it doesnt mean that closely regulated company/field of business is doom to failure

Anyway perhaps he has a point. Creating fintech company is easy, less regulation, tax grey area, etc. Easy to start in short. Nowadays I even heard about group of individual Investor backed by maybe one of Indonesia big company (or so I heard) creating an affordable virtual office in "Segitiga Emas area". I was like what the hell they doing in the virtual office business? Turns out that they eyeing those small fintech startup who work at their establishment and ready to invest in that startup fintech. I was like OMG so thats why they started virtual office business in a first place! Smart and slick move at the same time I must say

Best take any chances before the door baricades bro, step up than "masalah urusan belakangan" LOL, for some reason like the gojek case, or uber the net inovation sometime leap the regulation that regulator or vendor figure out latter what is the problem. I guest convensional mentality as rules control is not so populer in our culture and likely it also apply in this field of internet commerce. My self i try follow some regulation in export gods back years ago, and damn i would not say it was easy, to much reggulation and permit in convensional way so it is a chance to do some commerce in the simpleist way, not doing paper work with bank or custom... Is heaven bro LOL

 

[Nike]

• NEWS
• BUSINESS

Manufacturing sector exports up 9.8 percent

• News Desk
  The Jakarta Post
  

Jakarta / Fri, July 12, 2019 / 04:55 pm

Industry Minister Airlangga Hartarto (Courtesy of/the Industry Ministry)
Manufacturing sector exports grew 9.8 percent year-on-year (yoy) in the first five months of 2019 with a value of US$51.06 billion, or 74.59 percent of the country’s total exports recorded at $68.46 billion from January to May.

“The manufacturing sector consistently accounts for the largest part of our exports,” said Industry Minister Airlangga Hartarto in a press statement issued on Thursday.

He added that the food and beverage industry had contributed $10.56 billion, making it the largest contributor, followed by the metal industry ($6.52 billion) and chemical industry ($5.38 billion).

“The food industry contributed 20.69 percent of the total exports of manufacturing sector products from January to May,” he said, adding that the garment industry had contributed $3.55 billion, while the paper industry had contributed $3 billion.

“The government continues to encourage investment in and expansion of the manufacturing sector to boost its production capacity to meet [demand from] domestic and global markets.”

The main export destinations for Indonesian products are the United States, China, Japan, Singapore and India.

Airlangga said the government also worked hard to attract more investors, particularly those who could manufacture import-substitute products to reduce the trade deficit, which was $1.02 billion in the first half of 2019.

The government also continued its reform agenda to improve the investment climate, simplifying licensing procedures, guaranteeing legal certainty and offering fiscal incentives, the minister said, adding that the government encourage industries to upgrade their operations with Industry 4.0 technology.

Amid the global economic slowdown, Airlangga still expressed optimism that the non-oil and gas industry could grow 5.4 percent this year. (bbn)

 

[Nike]

Indonesia investment in Ethiopia is on the rise

https://www.cnbcindonesia.com/news/...duk-lokasi-buat-investasi-ri-di-ethiopia-naik

 

[barjo]

Indonesia investment in Ethiopia is on the rise

https://www.cnbcindonesia.com/news/...duk-lokasi-buat-investasi-ri-di-ethiopia-naik

You should see coffee estate in there sis...
https://www.duniafintech.com/negara-ethiopia-dengan-blockchain/
Myself and some my friend try to do so to integrate the commerce chain betwen farmer and market

 

[Gundala]

Best take any chances before the door baricades bro, step up than "masalah urusan belakangan" LOL, for some reason like the gojek case, or uber the net inovation sometime leap the regulation that regulator or vendor figure out latter what is the problem. I guest convensional mentality as rules control is not so populer in our culture and likely it also apply in this field of internet commerce. My self i try follow some regulation in export gods back years ago, and damn i would not say it was easy, to much reggulation and permit in convensional way so it is a chance to do some commerce in the simpleist way, not doing paper work with bank or custom... Is heaven bro LOL

Permit? OMG good luck with that hehehe. Well we have a progress, we have a automated system in some area, its the "old habit/culture" that is hard to change. But yea, why dealing with those permit when there is new business where they havent mess it up et

Indonesia investment in Ethiopia is on the rise

https://www.cnbcindonesia.com/news/...duk-lokasi-buat-investasi-ri-di-ethiopia-naik

Nice!! I cant believe ethiopia, the country I used to make a joke with now growing like this. Shame on me

 

[barjo]

Permit? OMG good luck with that hehehe. Well we have a progress, we have a automated system in some area, its the "old habit/culture" that is hard to change. But yea, why dealing with those permit when there is new business where they havent mess it up et

No automatic is not like that in some "perijinan", one door? Yes it was one door.. The front door, LOL but its not like that... You need to go to such as despirindakop, kantor pajak, payment guaratee from the bank etc is ton of document.. Some can be done by gov. Online service some not, specially with the bank. Terutama pengurusan ijin eksport, npwp, ijin usaha/SIUP, surat keterangan BI (for not being trouble with bank LOL) custom weeeww... Etc

 

[Gundala]

No automatic is not like that in some "perijinan", one door? Yes it was one door.. The front door, LOL but its not like that... You need to go to such as despirindakop, kantor pajak, payment guaratee from the bank etc is ton of document.. Some can be done by gov. Online service some not, specially with the bank. Terutama pengurusan ijin eksport, npwp, ijin usaha/SIUP, surat keterangan BI (for not being trouble with bank LOL) custom weeeww... Etc

Yea I can feel you man, Ive been in a same boat as you before. LOL "one door=front door" thats funny.
Any chance what you do to be applied for our "Petani"? They need direct buyer, not those tengkulak who push the price too low in some cases.

 

[katarabhumi]

Indonesia books $200 million trade surplus in June
The Jakarta Post / Mon, July 15, 2019 / 01:58 pm

Indonesia secured a monthly trade balance surplus of US$200 million in June, the fourth surplus recorded after February, March and May, Statistics Indonesia (BPS) has reported.

Month-to-month (mtm) exports went down by a staggering 20.54 percent to $11.78 billion because of a 19.4 percent mtm decrease in non-oil and gas exports to $11.03 billion and a 34.36 percent mtm decrease in oil and gas exports to $750 million.

Mtm imports were also down by 20.7 percent to $11.58 billion, thanks to a 20.5 percent mtm decline in non-oil and gas imports to $9.87 billion and 21.5 percent mtm decline in oil and gas imports to $1.7 billion.

BPS head Suhariyanto told a press briefing on Monday that both exports and imports had declined because the first nine days of June had been part of the extended Idul Fitri holiday, triggering a decline in production and overall trade.

Nevertheless, he pointed out that there had been sharp downturns in several commodity prices that were largely contributed to lower exports, even though their export volumes had actually increased.

For instance, the Indonesia Crude Price (ICP) contracted to $61 per barrel from $68.07 in May. The prices of coal, which comprised 15 percent of Indonesia’s total exports, as well as crude palm oil, kernel oil and zinc had also decreased, said Suhariyanto.

The surplus had led to a $1.93 billion trade deficit throughout the first half of 2019, considerably deeper than the deficit in the same period last year at $1.2 billion. Exports in the first half were down by 8.6 percent year-on-year (yoy) to $80.3 billion, while imports were down by 7.6 percent yoy to $82.2 billion.

“Certainly, we hope that this positive trend will continue in the coming months with more [supporting] policies from the government, whose implementation will continue to be monitored,” said Suhariyanto. (bbn)

https://www.thejakartapost.com/news...-books-200-million-trade-surplus-in-june.html

.

 

[Gundala]

Indonesia books $200 million trade surplus in June
The Jakarta Post / Mon, July 15, 2019 / 01:58 pm

Indonesia secured a monthly trade balance surplus of US$200 million in June, the fourth surplus recorded after February, March and May, Statistics Indonesia (BPS) has reported.

Month-to-month (mtm) exports went down by a staggering 20.54 percent to $11.78 billion because of a 19.4 percent mtm decrease in non-oil and gas exports to $11.03 billion and a 34.36 percent mtm decrease in oil and gas exports to $750 million.

Mtm imports were also down by 20.7 percent to $11.58 billion, thanks to a 20.5 percent mtm decline in non-oil and gas imports to $9.87 billion and 21.5 percent mtm decline in oil and gas imports to $1.7 billion.

BPS head Suhariyanto told a press briefing on Monday that both exports and imports had declined because the first nine days of June had been part of the extended Idul Fitri holiday, triggering a decline in production and overall trade.

Nevertheless, he pointed out that there had been sharp downturns in several commodity prices that were largely contributed to lower exports, even though their export volumes had actually increased.

For instance, the Indonesia Crude Price (ICP) contracted to $61 per barrel from $68.07 in May. The prices of coal, which comprised 15 percent of Indonesia’s total exports, as well as crude palm oil, kernel oil and zinc had also decreased, said Suhariyanto.

The surplus had led to a $1.93 billion trade deficit throughout the first half of 2019, considerably deeper than the deficit in the same period last year at $1.2 billion. Exports in the first half were down by 8.6 percent year-on-year (yoy) to $80.3 billion, while imports were down by 7.6 percent yoy to $82.2 billion.

“Certainly, we hope that this positive trend will continue in the coming months with more [supporting] policies from the government, whose implementation will continue to be monitored,” said Suhariyanto. (bbn)

https://www.thejakartapost.com/news...-books-200-million-trade-surplus-in-june.html

.

Good news indeed

 

[Nike]

KEIN confident of SMEs supporting economic growth of seven percent
16th Jul 2019 13:22

Deputy Chairman of KEIN Arief Budimado

Jakarta (ANTARA) - The National Committee for Economy and Industry (KEIN) reckons that Small- and Medium-Scale Enterprises (SMEs) can boost economic growth by seven percent, as the revenue of SMEs can be increased by 30 percent.

"We should give serious attention to SMEs. Indonesia's economic growth can exceed seven percent if we drive the revenue of SMEs by 30 percent," Deputy Chairman of KEIN Arief Budiman stated in Jakarta on Monday

Budiman noted that micro and small entrepreneurs currently reach some 63 million, divided into 62 million micro entrepreneurs and 750 thousand small entrepreneurs. If the entrepreneurs are upgraded, Indonesia will be able to overcome the five percent stagnation.

"SMEs contribute 60 percent to Indonesia's gross domestic product (GDP), but banking access only reaches 20 percent. They will be upgraded, if they are offered more access," he noted.

Access to capital and the market is deemed necessary to boost revenue. In the meantime, greater SMEs involvement in investment and export activities is required.

Moreover, large companies are not allowed to seize the market of SMEs.

"SMEs have a very large market. There are two main problems in the form of market and capital access. If we hard work, the economic growth will reach seven percent," he noted.

Moreover, Budiman's teams are also proposing a revision of the tax value for SME players. The limit on the taxable object should be applied to help SMEs.

"The association must propose that revenue of up to Rp1.1 billion for small and micro entrepreneurs is not subjected to tax. Hence, we have a proper administrative mechanism in place," he explained.

Budiman noted that the increase of SMEs' capacity can boost the income of households, reduce poverty, and narrow gaps.

Editor: Bambang Purwanto

COPYRIGHT © ANTARA 2019

 

[Nike]

PNG keen to observe Merauke's rice and fishing boats: official
17th Jul 2019 12:03

(Archive) - A paddy field in Solar Indah Village, Merauke, Papua Province. (ANTARA/ West Papua/Rahmat Nasution)

Jayapura, Papua (ANTARA) - Papua New Guinea's (PNG's) government looks to include Merauke's rice and fishing boats on the country's imported products' list as revealed by the PNG cabinet minister's visit to Indonesia's town, a local government official stated.

PNG's Vice Minister of Foreign Affairs and Trade Sekie Agisa undertook the visit on Tuesday to closely review Merauke's rice production potential, Suzana Wanggai told ANTARA here on Wednesday.

"Mr Sekie Agisa is keen to observe the rice fields in Merauke," Wanggai, tasked with intensifying border and overseas cooperation at the Papua provincial administration, noted.

Agisa had also expressed keenness to purchase fishing boats produced at the local people's shipyards in Merauke. "May the PNG government's keenness to buy Merauke's rice and fishing boats soon be realized," she remarked.

Related news: Indonesia, PNG relations getting stronger: FM

During his two-day visit, apart from observing the agricultural centers and the local people's shipyards in Merauke, Agisa also visited the PNG-Indonesia border area of Sota, she revealed.

In connection with the PNG-Indonesia efforts to strengthen their bilateral trade ties, both nations' ministers have held regular meetings.

PNG is also recorded as one of Indonesia's main export destinations in the Pacific apart from Australia, New Zealand, Timor Leste, and Fiji, with several commodities and products, ranging from palm oil and tobacco to tires and electronic components.

As part of Indonesia's efforts to forge deeper cooperation with countries in the Pacific, Indonesian Foreign Minister Retno Marsudi had paid a visit to Auckland for the First Pacific Exposition held on July 12-14, 2019.

Related news: Indonesia strives for export diversification in Pacific countries

The Indonesian government facilitated 30 companies engaged in various businesses, including food and beverage, textile and fashion, energy, infrastructure, and services, finance, skilled labor agencies, hotels, and aesthetics, during the expo.

They showcased their products during the expo with the intention of matching their businesses with that of their Pacific counterparts as well as building a network with potential buyers.

A total of 50 companies from 20 Pacific nations, including Indonesia, participated in the First Pacific Exposition held by the Indonesian Embassy in Wellington.

Related news: 123 companies participate in Auckland's First Pacific Exposition



Editor: Azizah Fitriyanti

COPYRIGHT © ANTARA 2019

 

[Nike]

Indonesia, Singapore discuss cooperation
17th Jul 2019 19:20

President Joko Widodo (right) welcomed Singapore's Foreign Minister Vivian Balakrishnan (center) at Bogor Palace, West Java, Wednesday (July 17, 2019). They discussed increasing cooperation between Indonesia and Singapore and preparations for the annual meeting of the leaders of the two countries. (ANTARA PHOTOS / Wahyu Putro A / Bambang Purwanto)

Batam (ANTARA) - Indonesia and Singapore discussed several fields for cooperation at the 7th Singapore-Indonesia Six Bilateral Economic Working Groups, Senior Officials' Meeting (SOM) in Singapore on Tuesday.

Dendi Gustinandar, Promotion Director and Public Relations for the Management Board of Batam's Free Trade Zone, said those at the meeting discussed several areas for cooperation in Batam, Bintan and Karimun, as well as the special economic zone, investment, labor, transportation, agribusiness and tourism.

"This meeting is a follow-up to the activities of the Co-chairs of the Batam, Bintan and Karimun (BBK) Joint Working Groups in Singapore on July 10, 2019," he said.

In relation to Batam, Dendi said, SOM discussed the success of Batam in attracting Pegatron, the second largest electronics manufacturer in the world.

The success of drawing Pegatron's investment is expected to be a positive trend in attracting Pegatron's supporting suppliers to invest in Batam.

In addition, those at the meeting discussed a number of infrastructure developments, in order to improve logistics in Batu Ampar Port by adding new facilities, such as a mobile crane and reach stacker, as well as additional routes for Batam-Singapore shipping.

"With these improvements, it is expected to reduce logistics costs in Batam by 50 percent to 250 to 350 SGD," he said.

Dendi had proposed a plan to cooperate with the Singapore Economic Development Board (EDB) for a logistics-related internship program in Singapore.

With the apprenticeship program, he said, participants could learn about the logistics process at the port of Singapore.

Related news: Jokowi addresses obstacle facing Likupang economic zone development

Related news: Mandalika development meets high standards: President

Related news: Indonesia to reclaim control of FIR above Riau from Singapore



Editor: Azizah Fitriyanti

COPYRIGHT © ANTARA 2019

 

[Nike]

VP calls for boosting automotive exports as GIIAS kicks off

• Rachmadea Aisyah
  The Jakarta Post
  

Tangerang, Banten / Thu, July 18, 2019 / 04:21 pm

Industry Minister Airlangga Hartarto (yellow shirt) and executives of PT Nissan Motor Indonesia pose for a photograph next to a Nissan Leaf electric car during the opening of the 27th Gaikindo Indonesia International Auto Show in ICE BSD, Tangerang, Banten, on Thursday. (JP/Rachmadea Aisyah)
Vice President Jusuf Kalla has urged the national automotive industry to push further into export markets amid tight competition with other countries in Southeast Asia.

Indonesia has set itself an ambitious target of shipping 1 million cars abroad by 2025, nearly four times the figure of 264,553 realized last year.

Twenty percent of the 1 million vehicles to be exported are expected to be electric cars, as Indonesia strives to build an electric vehicle industry by 2020. However, the lofty target is still below that of Thailand, which already exported more than 1.1 million cars in 2018.

“[Our exports] still lag behind Thailand, which means we are late, even though we have [entered] partnerships with various automotive firms,” Kalla said on Thursday at the opening ceremony of the 27th Gaikindo Indonesia International Auto Show (GIIAS) at the Indonesia Convention Exhibition (ICE) BSD in Tangerang, Banten.

The Association of Indonesian Automotive Manufacturers (Gaikindo), which hosts the international-scale expo, aims to increase car exports by 13 percent in 2019 to 300,000 units.

Exports this year are forecast to drop slightly from last year, when they leaped 14.4 percent from 2017.

Kalla noted that Indonesia’s automotive industry dated back to before the country gained independence, with General Motors opening its branch in Tanjung Priok, North Jakarta, in the 1920s. He added that the local content in cars assembled domestically had reached 80 to 90 percent.

“So naturally we should give as much support to this industry as possible,” he remarked. (bbn)

 

[Indos]

Giant Investment

UPDATE 1-Japan's Inpex to launch engineering design for $20 bln Indonesian LNG plant
Wilda Asmarini

* Inpex gets Masela development design approval from Indonesia

* Govt approves contract extension to 2055

* Inpex targets LNG production in 2027-2028 (Adds details, background and comments)


JAKARTA, July 16 (Reuters) - Japan’s Inpex Corp plans to start front-end engineering design (FEED) on the $20 billion Masela gas project in Indonesia next year, Chief Executive Takayuki Ueda said on Tuesday, with LNG production at the giant field due to start by 2027-2028.

Inpex had secured the Indonesian government’s approval for the plan, as well as the company’s application for a 20-year extension to the production sharing contract (PSC) for the Masela project, Ueda told reporters in Jakarta.

The project will focus on meeting Indonesia’s gas demand in future, but the company is also looking at buyers from Japan, China and other Asian markets, Ueda said.

“Authorities also approved the application for a seven-year additional allocation and 20-year extension to the production share contract (PSC) for the Masela block,” he said, adding that will extend the contract term until 2055.

The $20 billion Masela project, also known as the Abadi LNG plant, had been delayed for years after Indonesia asked the Japanese company to shift it from an earlier offshore facility.

Indonesian President Joko Widodo witnessed the approval handover, Ueda said, adding that Widodo had “requested me to increase gas supply to Indonesian industry.”

Inpex plans to start liquefied natural gas production from Masela by around 2027-2028, said Nico Muhyiddin, vice-president at unit Inpex Masela Ltd.

The Japanese oil and gas company also aims to wrap-up its final investment decision (FID) in three to four years, Ueda said.

“There is potential to accelerate the FID and we are discussing with SKK Migas on how to accelerate it,” he said, referring to Indonesia’s upstream oil and gas regulator.

Advertisement

Under the revised plan, Inpex, which controls 65% of the project, will produce 9.5 million tonnes of LNG every year from the block, as well as distribute 150 million standard cubic feet per day (mmscfd) of gas through its pipeline.

Inpex is yet to decide on how to finance the project, but Ueda said the company is considering a trustee-borrowing scheme. (Writing by Fransiska Nangoy, Editing by Kenneth Maxwell, Ed Davies and Sherry Jacob-Phillips)

https://www.reuters.com/article/ind...for-20-bln-indonesian-lng-plant-idUSL4N24H1RE

 

[Nike]

• NEWS
• BUSINESS

Pertamina injects US$300m to boost upstream production

• News Desk
  The Jakarta Post
  

Jakarta / Fri, July 19, 2019 / 09:47 am

An officer of the state-owned oil and gas holding company Pertamina, Nicke Widyawati (right), along with new upstream director Darmawan Samsu (second left), human resources director Kuswiro Kushartanto (left) and the State-Owned Enterprises Ministry's strategic industry and media affairs undersecretary, Fajar Harry Sampurno, speaks to journalists in Jakarta on Aug. 29, 2018. (JP/Rachmadea Aisyah)
In a bid to reach the full-year production target of 922,000 barrels of oil equivalent per day (boepd), state-owned energy giant Pertamina recently increased its upstream budget by 10 percent from US$2.6 billion to $2.9 billion.

“Honestly, it isn’t an easy target to reach. The management supports us by increasing our budget to $2.9 billion,” Pertamina upstream director Dharmawan Samsu said on Thursday, adding that investment was needed to achieve the target.

Dharmawan said the increased budget allocation was approved by management after it considered the achievements in the first half of 2019.

Pertamina plans to construct 98 new upstream projects for a total investment of $1.9 billion, which would be taken from the $2.9 billion budget.

Most of the projects are to be handled by Pertamina’s upstream subsidiaries -- PT Pertamina EP (47 projects), Pertamina Hulu Energi (29 projects), Pertamina Hulu Indonesia (19 projects), Pertamina EP Cepu (two projects) and Pertamina EP Cepu ADK (one project).

“Of those 98 projects, [Pertamina] is exploring other potential in new areas, such as around the Mahakam Block,” Dharmawan said.

Dharmawan explained that not all of the additional allocation of $300 million would be disbursed for those new projects, but would also be allocated to finance activities in existing assets.

“[The additional budget] is also to fund the exploration activities and our production facility that needs to be repaired,” he said.

The $2.9 billion upstream budget is 7.4 percent higher than last year's budget, which was $2.7 billion. Meanwhile, the production target of 922,000 boepd is slightly higher than last year's realization of 921,000 boepd. (bbn)