Indonesia Economy Forum

[Nike]

IHSG plunges at Thursday's closing following low inflation rate
2nd Jan 2020 21:22

Jakarta (ANTARA) - The Indonesia composite share price index (IHSG) of the Indonesia Stock Exchange (BEI) plunged at 15.96 points or 0.25 percent to 6,283.58 at the stock trade closing on Thursday after the Central Statistics Agency (BPS) announced inflation rate in 2019 hit 2.72 percent, all-time-low records for the last 20 years.

Meanwhile, the index of the 45 most liquid stocks, or LQ45, depreciated by 2.86 points, or 0.28 percent, to 1,011.62.

"Inflation records is below the analyst's forecast and an estimation of Purchasing Manager Index (PMI) predicted by Manufacturing Indonesia is below than 50 which signals there may be a contraction at manufacturing industry in the country. That may cause IHSG to plunge further," an analyst of Binaartha Securities, M Nafan Aji Gusta Utama, expounded in Jakarta, Thursday.

At the opening, IHSG had risen to 13.59 points, or 0.22 percent, to 6,313.13. Meanwhile, the index of the 45 most liquid stocks, or LQ45, rose by 2.68 points, or 0.26 percent, to 1,017.

During Thursday's transactions, net foreign buy reached Rp170.26 billion, while 5.3 billion shares worth Rp4.17 trillion were traded at the market.

In the mean time, regional markets that strengthened this evening comprised Hang Seng Index at 353.77 points, or 1.25 percent, to 28,543.52; and the Straits Times Index rose 29.17 points, or 0.91 percent, to 3,252.

Related news: Inflation rate throughout 2019 at 2.72%: BPS

Related news: Jokowi kicks off stock trading in 2020, IHSG opens higher
Translated by: Citro Atmoko/Genta Tenri Mawan
Editor: Rahmad Nasution

 

[Indos]

Indonesia target 5 key sectors to increase its manufacturing contribution to GDP which are food industries, garment, automotive, electronics, and chemicals.

A good read to know our manufacturing current condition and its future expansion 5 years from now.

The report also show Indonesian economy and its manufacturing sector grows more rapidly under an economy that is less open than Today (1980-1997).

The report also suggest that without government interference, it is difficult to grow industry that has high value added. Having an open market is not necessarily create manufacturing sector with sophisticated product.

https://www.adb.org/sites/default/f...-manufacturing-sector-indonesia-2020-2014.pdf

 

[Kansel]

Finance Minister Sri Mulyani Indrawati, left, and Bank Indonesia Governor Perry Warjiyo. (Antara Photo)

Indonesia Receives $16b Foreign Capital in 2019
BY :INVESTOR DAILY

JANUARY 03, 2020

Jakarta. Capital flow to Indonesia totaled Rp 224,2 trillion, or $16 billion, throughout last year – likely to bring the country's balance of payment into positive territory, the central bank announced on Friday.

Bank Indonesia also confirmed the rupiah was stronger in 2019 and expected Indonesia's foreign reserves would also increase when the final report is delivered later this month.

Bank Indonesia Governor Perry Warjiyo said Indonesia's foreign capital comprised Rp 168.6 trillion in state securities, Rp 50 trillion in stocks, Rp 3 trillion in corporate bonds and Rp 2.6 trillion in Bank Indonesia certificates.

"We concluded 2019 with stable external conditions and quite a large capital inflow. Our foreign reserves should increase as well," Perry told reporters at his office in Central Jakarta.

He said the strong capital flow would help the balance of payment reach a surplus and raise the foreign reserves, but did not elaborate on the process.

The rupiah was among Asia's best-performing currencies throughout 2019, gaining 3.68 percent to finish at Rp 13,880 against the dollar.

"The rupiah was consistent during the whole year, just a little lower than the Thai baht and more or less equal to the Philippine peso," he said.

Indonesia's foreign reserves rose to $126.6 billion in November last year from $120.1 billion in January.

The balance of payment suffered a $46 million deficit in the third quarter of last year, but that was a very strong comeback from a ballooning deficit of $2 billion in the previous quarter.

Over the same period, the current account deficit was minus $7.7 billion, equivalent to 2.7 percent of the GDP, improving slightly from minus $8.2 billion.

https://jakartaglobe.id/business/indonesia-receives-16b-foreign-capital-in-2019

 

[Indos]

@eldarlmari Here the news related to your country


Indonesia to stop gas supply to Singapore

Sabtu, 30 November 2019 6:27 WIB

Illustration - A worker rotates a valve to put gas into pipe at the gas receiving and distributing station Bojonegoro, Serang, Banten (FOTO ANTARA/ Dhoni Setiawan)

Jakarta (ANTARA) - The Energy and Mineral Resources Ministry plans to stop gas supply to Singapore from the Suban Blok Corridor Field in 2023 to increase domestic supply.

"Gas is still abundant in Sumatra. Gas supply to Singapore will end in 2023 and will be used for domestic consumption," Energy and Mineral Resources Minister Arifin Tasrif said in a written statement released on Friday.

The gas will be diverted to Duri Dumai pipelines to meet domestic consumption particularly on Sumatra Island, he said.

Sumatra Island will also receive additional gas supply from several wells in which the government is negotiating to purchase gas, he said.

The gas will also be sent to Java Island through several pipelines connecting Gresik, Semarang, Cirebon to Jakarta and the gas will be derived from Blok Saka Kemang and Jambi Merang.

Gas will be supplied to Kalimantan through the Trans Kalimantan pipelines. It will come from i Blok East Natuna, he added.

The Energy and Mineral Resources Ministry had signed an agreement with Singapore to supply 140 million cubic feet of gas per day for 17 years. The gas is supplied from Gajah Baru Field in West Natuna.

https://sulteng.antaranews.com/berita/86720/indonesia-to-stop-gas-supply-to-singapore

 

[Nike]

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PT PAL should renamed themselves as PAL Heavy industry and restructuring their business just like Hyundai heavy industry

 

[Indos]

The balance of payment suffered a $46 million deficit in the third quarter of last year, but that was a very strong comeback from a ballooning deficit of $2 billion in the previous quarter.

Over the same period, the current account deficit was minus $7.7 billion, equivalent to 2.7 percent of the GDP, improving slightly from minus $8.2 billion.

https://jakartaglobe.id/business/indonesia-receives-16b-foreign-capital-in-2019

We still have trade deficit last year but the figure is much decreasing compared to 2018 data. If the trend is continued so there is big possibility that we are going to score surplus trade balance this year. It also means balance of payment can turn into positive, so we possibly see much stronger Rupiah along the year. This condition will help our military acquisition plan and also our KFX/IFX program.

With expected stronger Rupiah along the year, it also means our stock market performance will likely be better this year.

Jokowi second administration should also focus on building oil refinery and chemical industry. This task can be taken by Pertamina. We imported too much oil finished products and chemical products. If our refinery and chemical plant production can supply all of our domestic demand, this will help our trade balance performance significantly.

I hope oil refinery project can be started this February. Jokowi himself has given death line to Pertamina to start building the refinery not more than 30 days, he has said that 10 days ago. Jokowi has failed to build oil refinery in his first term, so I guess he doesnt want to be seen as making just rhetoric since building oil refinery is his promise since his first election.

 

[The Ronin]

Indonesian Military on Full Alert in North Natuna Sea After Border Intrusion by Chinese Vessels

The Indonesian Military has raised combat alert for its forces stationed in the Natuna archipelago – in the south part of the disputed South China Sea – in response to Chinese vessels trespassing into Indonesia’s exclusive economic zone (EEZ).

“Our Navy and Air Force are armed and have been deployed to the North Natuna Sea,” TNI spokesman Maj. Gen. Sisriadi said on Friday (Dec 3)

The TNI has also deployed surveillance and early detection systems to ensure no more ships from China would trespass again.

The Indonesian Foreign Affairs Ministry stated last week that Chinese vessels, including a coast guard boat, had entered Indonesian territory that the country had christened as the North Natuna Sea.

China has been claiming that the area part of its territory, bordered by its self-imposed nine-dash line.

“We are not only deploying ships, but also fighter jets. We are on full alert,” Sisriadi said.

The TNI said they have enough forces at the ready to handle a clash with the Chinese fleet.

He said the TNI would also soon activate a Maritime Information Center to detect any movement by vessels violating Indonesia’s sea borders.

“[The facility] will be able to detect and identify every ship that enters Indonesian waters,” Sisriadi said.

https://navalnews.net/indonesian-mi...DR0FlDTL43VoewNRx8uZGtBe4BKlV_MbS_ehDFO1b3Lco

Puffing tom In Enies Lobby and Water seven
in real life

You watch One Piece? Anime or Manga? Or is it both? Anything else you read or watch?

 

[Nike]

Indonesian Military on Full Alert in North Natuna Sea After Border Intrusion by Chinese Vessels

The Indonesian Military has raised combat alert for its forces stationed in the Natuna archipelago – in the south part of the disputed South China Sea – in response to Chinese vessels trespassing into Indonesia’s exclusive economic zone (EEZ).

“Our Navy and Air Force are armed and have been deployed to the North Natuna Sea,” TNI spokesman Maj. Gen. Sisriadi said on Friday (Dec 3)

The TNI has also deployed surveillance and early detection systems to ensure no more ships from China would trespass again.

The Indonesian Foreign Affairs Ministry stated last week that Chinese vessels, including a coast guard boat, had entered Indonesian territory that the country had christened as the North Natuna Sea.

China has been claiming that the area part of its territory, bordered by its self-imposed nine-dash line.

“We are not only deploying ships, but also fighter jets. We are on full alert,” Sisriadi said.

The TNI said they have enough forces at the ready to handle a clash with the Chinese fleet.

He said the TNI would also soon activate a Maritime Information Center to detect any movement by vessels violating Indonesia’s sea borders.

“[The facility] will be able to detect and identify every ship that enters Indonesian waters,” Sisriadi said.

https://navalnews.net/indonesian-mi...DR0FlDTL43VoewNRx8uZGtBe4BKlV_MbS_ehDFO1b3Lco



You watch One Piece? Anime or Manga? Or is it both? Anything else you read or watch?

Both, but more like the manga though. Doraemon is my liking

 

[Nike]

Investment target for industrial sector set at Rp351 trillion in 2020
6th Jan 2020 21:24

Jakarta (ANTARA) - The Ministry of Industry set the investment target for the industrial sector at Rp307 trillion to Rp351 trillion by the end of 2020, a figure greater than the projected investment in 2019 of Rp188.8 trillion to Rp204.6 trillion.

"It certainly needs to be supported by the completion of investment constraints and the certainty of trying to trim regulations through the draft of the omnibus law which is currently being discussed by the government," Minister of Industry, Agus Gumiwang Kartasasmita, said in Jakarta on Monday.

As investment in the industrial sector increases, the minister noted, the trend of labor absorption also continues to grow.

This was seen in the period of 2015 to August 2019, where the number of workers in the industrial sector had reached 18.93 million people.

Meanwhile, in 2020, the number of workers in the industrial sector is estimated at 19.59-19.66 million people.

"The industrial era 4.0, which brought changes to the digital-based economy, will be able to absorb a lot of new workers, especially utilizing the demographic bonus that is being experienced by Indonesia until the year 2030," he explained.

To facilitate investment coming into the country, the Government continues to prioritize the spread of industries outside Java, one of which is through the development of priority industrial areas.

In 2020-2024, there are 27 priority industrial areas which are planned, namely 14 on the island of Sumatra, six in Kalimantan, one in Madura, one in Java, three on the Sulawesi and Maluku Islands, one in Papua, and one in West Nusa Tenggara.

"The government is overseeing several investments from the large industrial sector from Taiwan and the United States, including CPC Corporation (Taiwan) in the petrochemical industry sector, LiteMax (Taiwan) in the electronics industry sector and Smart City, Taiwan Sugar Corp (Taiwan) in the sugar industry sector, and UNICAL (US) in the aerospace industry sector," he said.

The Ministry of Industry earlier created new breakthroughs in industrial development by issuing policies that can accelerate national industry development and attract investment, through the creation of the National Industrial Information System (SIINas) among others.

The effort is to support the government's priority program in preparing the Industrial era 4.0, which is in line with the direction of the road map of Making Indonesia 4.0. "We continue to simplify regulations and improve public services through SIINas," Minister of Industry, Airlangga Hartarto, said in a statement at Jakarta Wednesday.

The innovation and simplification in regulations have been carried out in stages by the ministry, the minister revealed.

The strategic step of the ministry is expected to attract more investments so that it can offer more jobs to Indonesians.

"Based on our data, there are already a number of manufacturers who will carry out expansion and relocation plans in Indonesia. They are the transportation, electronics, petrochemical, and oleochemical sectors," the minister said.

Related news: Indonesia's reputation as investment destination must be maintained
Related news: Indonesia's net international investment liability position slides
Related news: Indonesia needs Rp1,000 trillion in investments for growth



Translated by: Sella Panduarsa, Azis Kurmala
Editor: Sri Haryati


https://en.antaranews.com/news/1392...dustrial-sector-set-at-rp351-trillion-in-2020

 

[Indos]

Economics
Indonesia Short on Policy Ammunition as It Targets Higher Growth
By
Karlis Salna
January 6, 2020, 4:00 AM GMT+7

• 
  Central bank is taking a more cautious approach on rate cuts
• 
  Fiscal stimulus is also limited by budget deficit ceiling

Indonesia’s government and central bank are running into policy limits as they try to stimulate Southeast Asia’s largest economy.

Read: Indonesia’s Cabinet Is Discussing Relaxing Fiscal Deficit Cap

Economic growth has been hovering around the 5% mark for several years now. The government forecast 5.1% for 2019 -- down from an initial 5.3% -- and sees growth rebounding to as much as 5.6% this year.

Front-loading
To support the economy, the central bank cut interest rates by a total of 100 basis points in 2019. It has kept the benchmark rate unchanged at 5% at its past two meetings as the Federal Reserve signals a prolonged pause in U.S. rates.

For its part, the government has been widening the budget deficit and planning to front-load spending in the first quarter to support the economy. Last year’s deficit was projected to come in at about 2.2% of GDP amid a revenue shortfall. The government is targeting a deficit of 1.76% of GDP in 2020, but says it will be flexible on the target.

“On one hand we will continue to maintain prudent debt management, but at the same time we will also be supportive and flexible enough when the economy is under strong pressure coming from the global economy,” Finance Minister Sri Mulyani Indrawati said in November.

Deficit Ceiling
President Joko Widodo has held discussions with the cabinet about adjusting the deficit ceiling, but no immediate change is expected, according to the Finance Ministry.

Economists surveyed by Bloomberg expect the central bank to lower its benchmark rate to 4.75% this year. Inflation, which eased to 3% in November, is forecast to stay within the central bank’s new target of 2%-4%, while the economy is projected to grow about 5%.

“The monetary policy space looks limited,” said Charu Chanana, deputy head of Asia research at Continuum Economics in Singapore. “Fiscal easing is likely to be more effective to lift credit demand, and we see room for the Indonesian government to announce targeted measures despite the revenue and deficit ceiling constraints.”

https://www.bloomberg.com/news/arti...policy-ammunition-as-it-targets-higher-growth

 

[Nike]

Short term strategy is more liberation on daftar negatif investasi, second to obliterate unsupportive acts and law and giving more backed up toward investment. Major transportation sector like railway and energy like electricity should be liberated for foreign and private investor, for railway they can open new access and manage the system in Borneo, Sulawesi or some area in Sumatra just like how private industry operating toll roads.

 

[Indos]

Short term strategy is more liberation on daftar negatif investasi, second to obliterate unsupportive acts and law and giving more backed up toward investment. Major transportation sector like railway and energy like electricity should be liberated for foreign and private investor, for railway they can open new access and manage the system in Borneo, Sulawesi or some area in Sumatra just like how private industry operating toll roads.

Better give more easiness for small and medium enterprises to set up office in residential areas so that they can set up office at their home thus reduce operating cost significantly. Currently Jakarta administration relax the regulation and allow companies to set up virtual office to meet the regulation. That is a good policy. But in order to give small and medium enterprises some kind of assurance, the regulation to allow small businesses to have office at residential area and also allow some part at their house being used as office should be made.

Bill gates also started his business from his garage. As long as the business operation doesnt disturb neighbor and spoil environment it should be permitted. The sector that can be benefited from this is IT, financial services, home scale manufacturing, PR services, and others. Many multinationals company actually have been here and exploit our market. Local companies need extra ammunition to compete them, particularly the small and medium size ones.

Making a legal companies like PT is essential particularly for businesses who play in Business market (B2B). Getting financing will also be easier if businesses have become legal.

 

[Nike]

Government targets Rp89.6 trillion investment in new SEZs
3 hours ago

Secretary of the Coordinating Ministry for Economic Affairs Susiwijono (Antara News/Dewa Wiguna)

The development of the three new SEZs by 2024-2025 will absorb tens of thousands of workers and is expected to drive the regional economy and society
Jakarta (ANTARA) - The Indonesian government is looking for an investment of nearly Rp89.6 trillion in stages in the three special economic zones (SEZs) established through government regulations (PP). "We will evaluate the target every year," Secretary of the Coordinating Ministry for Economic Affairs Susiwijono said in Jakarta, Monday, after submitting a copy of the PP to the relevant regional government and business entities proposing three SEZs, namely Singhasari in East Java, Kendal in Central Java and Likupang in North Sulawesi.

The evaluation was conducted through the National Council of Special Economic Zones covering the achievement targets and the development process, he said.

The development of the three new SEZs by 2024-2025 will absorb tens of thousands of workers and is expected to drive the regional economy and society, Susiwijono explained.

The investment target in the Singhasari Special Economic Zone reached Rp12.5 trillion by employing 6,863 people with businesses such as tourism and the digital economy being rolled out, he revealed.

The special economic zone is expected to become a center for digital economic development by cooperating with several multinational technology companies such as Amazon, IBM, Apple, and Google. The operator of the special economic zone will work with several leading universities in the world.

Meanwhile, the Likupang Special Economic Zone has a gradual investment target of around Rp7.1 trillion, which is engaged in the tourism sector, and can attract around 400 thousand tourists, he said.

The Likupang Special Economic Zone would absorb around 65 thousand workers both directly and indirectly, he estimated.

The Kendal Special Economic Zone has a gradual investment target of around Rp70 trillion with estimated employment of 20 thousand people.

The government targeted the Kendal Special Economic Zone to realize the value of exports in the first year or 2021 of at least US$500 million and import substitution of at least $250 million, he said.

To date, the government has established 15 special economic zones consisting of nine for industry and six for tourism.

Of the 15, 11 of which have operated or have served investors.

The total investment commitment reached Rp88.7 trillion until 2019 from the 11 special economic zones that had been operated with a workforce absorption of around 8,686 people, Susiwijono said.

President Joko Widodo had previously approved the establishment of three new special economic zones through Government Regulation (PP) No. 68 of 2019 for the Singhasari special economic zones in Malang Regency, East Java).

Then there was PP Number 85 Year 2019 for the Kendal special economic zones in Central Java, and PP Number 84 Year 2019 for Likupang special economic zones in North Minahasa District, North Sulawesi. (INE)
Related news: Government launching two special economic zones in Batam in 2020
Related news: Jokowi believes three SEZs to drive equitable development

Reporter: Dewa Wiguna, Azis Kurmala
Editor: Suharto
COPYRIGHT © ANTARA 2020

https://en.antaranews.com/news/139232/government-targets-rp896-trillion-investment-in-new-sezs

 

[Indos]

Indonesia's state budget deficit reaches 2.2 percent of GDP

31 minutes ago

Finance Minister Sri Mulyani Indrawati in Jakarta on Tuesday (Jan 7, 2020) made a press statement on state budget 2019 realization. (ANTARA/Astrid Faidlatul Habibah/sh)

Jakarta (ANTARA) - Indonesia's budget deficit during the period from January to December 2019 had reached Rp353 trillion, or 2.2 percent of the gross domestic product (GDP), Finance Minister Sri Mulyani Indrawati stated here on Tuesday.

The deficit was higher than the deficit of Rp296 trillion targeted in the 2019 state budget, which would have been 1.84 percent of the GDP.

It was an increase of 31 percent (yoy) from the 2018 deficit of Rp269.4 trillion, equal to 1.82 percent of the GDP, Indrawati remarked.

"Our deficit in 2019 is at the level of 2.2 percent of the GDP to reach Rp353 trillion owing to a shortfall in revenue, while state expenditure can be maintained," she remarked.

The government had booked Rp1,957.2 trillion in revenue last year, or 90.4 percent of the state budget target at Rp2,165.1 trillion.

However, an audit on the State Audit Board (BPK) data has yet to be completed.

"This is the closing data as of December 31, but there might be some changes within the next one or two months since it was still under the audit of the BPK team," she remarked.

The minister noted that the state revenue had risen 0.7 percent (yoy) in comparison with Rp1,943.7 trillion in 2018 in spite of a global economic slowdown.

She expounded that the state revenue in 2019 was accrued from tax revenue of Rp1,545.3 trillion; non-tax revenue, Rp405 trillion; and grants, Rp6.8 trillion.

State expenditure during the period had reached Rp2,310.2 trillion, or 93.9 percent of the state budget target set at Rp2,461.1 trillion, comprising Rp1,498.9 trillion of the central government's expenditure and Rp811.3 trillion of regional transfer and village fund.

Indonesia's budget deficit was lower than Vietnam that had recorded 4.4 percent of the GDP, China, 6.1 percent; South Africa, 6.2 percent; India, 7.5 percent; the United States, 5.6 percent; and Brazil, 7.5 percent of the GDP.

"The government's combined efforts to keep its fiscal deficit has boosted the economy, and despite its wider deficit, it is still far below those of other peer emerging countries," Indrawati

https://en.antaranews.com/news/139283/indonesias-state-budget-deficit-reaches-22-percent-of-gdp

 

[Nike]

Erick Thohir tugasi enam BUMN bentuk kluster industri manufaktur
Selasa, 7 Januari 2020 15:12 WIB

Menteri BUMN menugaskan enam perusahaan untuk membentuk kluster industri manufaktur
Jakarta (ANTARA) - Menteri BUMN Erick Thohir menugasi enam perusahaan BUMN untuk membentuk kluster industri manufaktur yang diharapkan bisa selesai tahun 2020.

"Menteri BUMN menugaskan enam perusahaan untuk membentuk kluster industri manufaktur," ujar Direktur Utama PT Barata Indonesia, Fajar Harry Sampurno di Jakarta, Selasa.

Fajar mengatakan keenam perusahaan yang akan membentuk kluster industri manufaktur tersebut terdiri dari Barata, Boma Bisma Indra (BBI), Dok Perkapalan Surabaya (DPS), Dok Kodja Bahari (DKB), Industri Kereta Api (Inka), dan Industri Kapal Indonesia (IKI) dengan Barata sebagai koordinatornya.

"Produksinya macam-macam seperti kapal, turbin, alat-alat berat, pokoknya berkaitan dengan industri produsen alat-alat berat," katanya.

Menurut Fajar, pembentukan kluster itu juga sekaligus untuk melakukan penyehatan dan melakukan konsolidasi.

Dengan demikian keenam perusahaan ini saling sinergi dalam produksi-produksi seperti pembuatan kapal laut, pemeliharaan, mendukung Pertamina untuk percepatan pembangunan kilang, lalu pembangkit untuk PLN.

"Tahapannya kita mengonsolidasikan operasi terlebih dahulu, pemeliharaan, kemudian kita juga mendukung Pertamina untuk percepatan pembangunan kilang, pembangunan pembangkit untuk PLN," ujar Fajar Harry.

Dia juga menambahkan bahwa yang ingin dicapai dari pembentukan kluster ini adalah skala bisnis, efisiensi, pertukaran tenaga kerja, lalu mempercepat rantai teknologi.

Menteri BUMN Erick Thohir, menurut Dirut Barata itu, menargetkan pembentukan kluster industri manufaktur tersebut dapat rampung pada tahun ini.

"Bentuknya mungkin holding, rencana sebelumnya bernama National Shipbuilding and Heavy Industry (NSHI) cuma sekarang dalam surat keputusannya Menteri berganti namanya menjadi kluster industri manufaktur mengingat PT PAL ikut kluster industri pertahanan," ujar Fajar Harry.
Pewarta: Aji Cakti
Editor: Ahmad Wijaya
COPYRIGHT © ANTARA 2020

https://m.antaranews.com/berita/123...m_medium=mobile&utm_campaign=popular_category

National turbine engine should be a priority as many project need turbine engines