Indonesia Economy Forum

[striver44]

Yup, Sumatra needs to be industrialized further. The palm oil industry there should be stopped from expansion mode forever. Government itself is already quite serious with the idea that make them decide to stop supplying Singapore with gas right after the contract is finished in 2023 and use the gas for industrializing Sumatra island further.

The Sumatra highway with length of 2700 km will also be finished in 2024 according to the plan. There will be many areas along the road that can be chosen for another industrial complex zone. Beside in North Sumatra, Riau province is also very strategic due to the location which is near Singapore. Batam island (next to the Singapore) has already been quite full with a lot of industry. Gas pipe line form gas field in Riau that currently still supply Singapore (and will be stopped in 2023 inshaAllah) will be easier to supply industry complex around Riau Province.

Just look at the vast inhabited land across the road between Riau province capital, Pekanbaru, into Dumai city where the container port is planned to be built there. Actually that vast land has already been occupied with palm oil but I believe it will not be difficult to convert some of them into industrial complex zone. The minimum wage in Riau is higher than in Central Java where Batang industrial complex is located but is still much quite competitive than Singapore and Malaysia. And even it is still half the Minimum wage of Batam island.

New High Way, Pekan Baru-Dumai

Bintan and Galang Island (Next to Singapore)

Bintan Island itself, island which is next to Batam will be used more on tourism and aerospace industry (particularly MRO Industry). Bintan island airport construction is almost finished.

Bintan is relatively quite empty with island larger than Singapore and has its own fresh water supply.

The industrialization in Bintan and Galang Island will likely be speed up after the bridge connecting Batam-Galang-Bintan island is finished in 2025 inshaAllah. The residential areas in the island need to be in the form of apartment than houses, in order to spare more land for industry and green zone (to retain fresh water supply)

Batam-Galang-Bintan bridge proposal

can't agree more, palm tress industry need to add value by actually erecting specialized palm oil processing factory to make processed product instead of relying on solely exporting raw palms abroad,by this not only we increase the value of the commodity we also stop the almost daily forest fire as a result of greedy plantation expansions.

the highway and infrastructure connecting these cities must be expedite and expanded:
-Medan
-Pekanbaru
-Dumai
you see these cities are very close to world capitals and financial centers like KL and SG, erecting a cross strait bridge like the one proposed (here)will integrate these areas more into the world economy, catapulting Sumatra into our next economic powerhouse.

 

[UMNOPutra]

can't agree more, palm tress industry need to add value by actually erecting specialized palm oil processing factory to make processed product instead of relying on solely exporting raw palms abroad,by this not only we increase the value of the commodity we also stop the almost daily forest fire as a result of greedy plantation expansions.

the highway and infrastructure connecting these cities must be expedite and expanded:
-Medan
-Pekanbaru
-Dumai
you see these cities are very close to world capitals and financial centers like KL and SG, erecting a cross strait bridge like the one proposed (here)will integrate these areas more into the world economy, catapulting Sumatra into our next economic powerhouse.

Yup .. The Malacca - Dumai bridge will be good and profitable for both countries .. Malaysia can relocate its labor intensive industry to Indonesia because there are huge cheap labor and many natural sources available in Sumatra... So, we can focus to high tech sector with higher added value with supply of material from Sumatra and also let Sumatra to be a new center for our labor intensive industry ..

Another benefit .. Malaysia can also offer his "global network" to promote your products with higher prices and margin after we labelled it as our product/brand from Malaysia or "Made in Malaysia". It will be more profitable for Indonesia export and distribute its product globally through Malaysia than Singapore.

This should be a win - win scheme for both negara serumpun ... we highly appreciate that Indonesia will support the construction of this bridge soon ...The consortium from Malaysia has also committed to fund 80% of all construction cost if Indonesia issue its consent to build it ...

For your info ... Menyatukan Sumatra dan Semenjanjung juga adalah "Mimpi dan Cita-Cita Besar" founding father kami Tunku Adul Rachman (TAR) dan para pejuang kemerdekaan negara kami pra merdeka yaitu menubuhkan negara "Melayu Raya" ..mengulangi kembali kejayaan Kerajaan Melaka ...Bagi majority bangsa melayu di Malaysia ...selain Tanah Melayu Semenanjjung .. Sumatra juga adalah adalah juga tanah air mereka ... Bagi sebgian besar melayu Malaysia ... keberadaan jembatan yang akan dibangun itu bukan hanya menguntungkan kedua belah pihak dari sisi ekonomi .. tetapi juga akan menjadi simbol emosional penyatuan bangsa melayu nusantara .. khasnya melayu Sumatra dan melayu Semenanjung ....

 

[NEKONEKO]

can't agree more, palm tress industry need to add value by actually erecting specialized palm oil processing factory to make processed product instead of relying on solely exporting raw palms abroad,by this not only we increase the value of the commodity we also stop the almost daily forest fire as a result of greedy plantation expansions.

the highway and infrastructure connecting these cities must be expedite and expanded:
-Medan
-Pekanbaru
-Dumai
you see these cities are very close to world capitals and financial centers like KL and SG, erecting a cross strait bridge like the one proposed (here)will integrate these areas more into the world economy, catapulting Sumatra into our next economic powerhouse.

Java-Sumatra bridge sounds more promising.
Or batam-singapore.

 

[Bungaterakhir]

New Country Classification by Income level : World Bank 2020 july

Sudan : From Lower-Middle-Income to Low-Income

Benin : From Low-Income to Lower-Middle-Income
Nepal : From Low-Income to Lower-Middle-Income
Tanzania : From Low-Income to Lower-Middle-Income
Algeria : From Upper-Middle-Income to Lower-Middle-Income
Sri lanka : From Upper-Middle-Income to Lower-Middle-Income

Indonesia : From Lower-Middle-Income to Upper-Middle-Income

Mauritius : From Upper-Middle-Income to High-Income
Nauru : From Upper-Middle-Income to High-Income
Romania : From Upper-Middle-Income to High-Income

Source : https://datahelpdesk.worldbank.org/.../906519-world-bank-country-and-lending-groups

 

[Bungaterakhir]

Country Classification by Income level : World Bank 1987-2020 (Status)

Singapore : High-Income Level before 1987

Brunei Darussalam : High-Income Level before 1987

Malaysia : Upper-Middle-Income Level Since 1992
/ / / / / / / Lower-Middle-Income Level before 1987

Thailand : Upper-Middle-Income Level Since 2010
/ / / / / / / Lower-Middle-Income Level before 1987

Indonesia : Upper-Middle-Income Level Since 2019
/ / / / / / / Lower-Middle-Income Level Since 2003
/ / / / / / / Low-Income Level Since 1998
/ / / / / / / Lower-Middle-Income Level Since 1993
/ / / / / / / Low-Income Level before 1987

Philippines : Lower-Middle-Income Level before 1987

Vietnam : Lower-Middle-Income Level Since 2009
/ / / / / / / Low-Income Level before 1987

Laos : Lower-Middle-Income Level Since 2010
/ / / / Low-Income Level before 1987

Myanmar : Lower-Middle-Income Level Since 2014
/ / / / / / / / Low-Income Level before 1987

Cambodia : Lower-Middle-Income Level Since 2015
/ / / / / / / / Low-Income Level before 1987

Source : World Bank

 

[Bungaterakhir]

The Yogyakarta-Solo Electric Commuter Rail to Operate in december 2020
.

.
The Solo-Jogja-Kutoarjo electric commuter rail (KRL) will be operational in the end of 2020.The Central Java Region I Railroad Technical Center began auctioning the construction of the Upper Flow Electricity (LAA) construction for the Jogja-Solo relation. The tender was a repeat tender because it had previously been offered. The LAA development plan is divided into 13 packages. The packages offered begin construction of the LAA from km 107 to km 154 for the Jogja-Solo relation. Value of packages offered varies between IDR36 billion to IDR53 billion.
.

So far, Jogja-Solo commuter rail use diesel (DMU) trains. The DMU train, called Prambanan Express (Prameks), is yellow livery train, carrying millions of Yogya and solo residents and their surroundings. And every year the increase is booming. It is possible that the EMU trains that will be used on the Yogyakarta-Solo electric commuter train are locally made or Indonesian-made trains produced by PT. INKA. There are 2 types, one of which might be used for this relation. Namely KFW i9000 and BN-Holec. Both are still and have been used on Greater Jakarta commuter rail. At present, the Greater Jakarta commuter rail is dominated by Japanese-made EMU trains.

 

[Nike]

The Yogyakarta-Solo Electric Commuter Rail to Operate in december 2020
.

.
The Solo-Jogja-Kutoarjo electric commuter rail (KRL) will be operational in the end of 2020.The Central Java Region I Railroad Technical Center began auctioning the construction of the Upper Flow Electricity (LAA) construction for the Jogja-Solo relation. The tender was a repeat tender because it had previously been offered. The LAA development plan is divided into 13 packages. The packages offered begin construction of the LAA from km 107 to km 154 for the Jogja-Solo relation. Value of packages offered varies between IDR36 billion to IDR53 billion.
.

So far, Jogja-Solo commuter rail use diesel (DMU) trains. The DMU train, called Prambanan Express (Prameks), is yellow livery train, carrying millions of Yogya and solo residents and their surroundings. And every year the increase is booming. It is possible that the EMU trains that will be used on the Yogyakarta-Solo electric commuter train are locally made or Indonesian-made trains produced by PT. INKA. There are 2 types, one of which might be used for this relation. Namely KFW i9000 and BN-Holec. Both are still and have been used on Greater Jakarta commuter rail. At present, the Greater Jakarta commuter rail is dominated by Japanese-made EMU trains.

Great news, Prameks using listrik aliran atas Will Usher a new era of commuter life and urban transport in Central Java greater area, next is in Eastern Java Greater Surabaya.

 

[Indos]

China’s Alibaba to open third cloud center in Indonesia next year

• Norman Harsono
  The Jakarta Post
  

Jakarta / Fri, July 3, 2020 / 09:34 am

An Alibaba Cloud data center. The cloud provider is tight-lipped over the whereabouts of its data centers in Indonesia. (Alibaba/Alibaba)
Chinese tech behemoth Alibaba plans to open its third cloud data center in Indonesia by next year in expanding its presence in the Indonesian market amid rising competition.

Alibaba Cloud, a subsidiary of Alibaba, said Tuesday the latest data center would minimize data loss-related risks by dividing workloads between the company’s three centers in Indonesia. The first center was built in 2018 and the second in 2019.

Read also: Google launches first Cloud region in Indonesia

“This is very important as many businesses – including traditional enterprises such as banks – are shifting their IT infrastructure to the cloud amid the pandemic,” wrote Alibaba Cloud in a statement.

The cloud provider neither disclosed the centers’ investment value nor their general location.

Indonesia’s major cities, starting with Jakarta, formally entered a partial lockdown in late April, causing an uptick in demand for digital services including e-commerce, finance, online media, education and video games. All these services are lucrative markets for Alibaba.

However, rival tech giants Google and Amazon also plan to expand their cloud service subsidiaries in Indonesia, which is the single largest digital economy in Southeast Asia.

Google Cloud opened a new Jakarta region in late June, bringing its services closer to local customers, while Amazon Web Services plans to build a data center in 2022.

Alibaba Cloud country manager Leon Chen said his company would also build a data scrubbing center alongside the third data center in Indonesia.

Read also: Alibaba adds new cloud-native services in Indonesia

Scrubbing would improve system reliability as cybersecurity attacks “have grown in intensity and technology with many businesses moving their IT infrastructure to the cloud,” he said.

Communications and Information Minister Johnny G. Plate, in the statement, reminded Alibaba Cloud to comply with Indonesian policy and regulations over data management.

“We hope data management processes will be carried out in accordance with the Indonesian government’s principles on data management, which are principles of legal validity, compliance and transparency,” he said.

https://www.thejakartapost.com/news...hird-cloud-center-in-indonesia-next-year.html

 

[Indos]

Pertamina expects to begin running Cilacap biorefinery in 2021

Norman Harsono
The Jakarta Post

Jakarta / Fri, July 3, 2020 / 11:10 am

RU IV Lomanis refinery owned by state-owned oil giant Pertamina in Cilacap, Central Java, is pictured in this undated photo. (Antara/Idhad Zakaria)

State-owned oil giant Pertamina expects its new biofuel refinery in Cilacap, Central Java, to begin first-phase operations next year as part of the government’s biodiesel push.

The facility will have a “small capacity” of 3,000 barrels per day (bpd) but the output will be “100 percent made from crude palm oil,” said Ignatius Tallulembang, president director of Pertamina’s refinery arm, PT Kilang Pertamina Internasional (PT KPI), on Wednesday.

“Late next year we will have a capacity of 3,000 bpd. We will raise the capacity to 6,000 bpd by 2022,” he told House of Representatives lawmakers in Jakarta.


The biorefinery is small compared to Pertamina’s headline oil refinery projects, whose output levels are over 100,000 bpd each. Such projects include another refinery in the Cilacap compound from which development partner, Saudi Arabia’s Aramco, recently pulled out.

“We will focus on our biorefinery first,” said Ignatius.

The Cilacap refinery will support the government’s ongoing 30 percent palm oil-mixed (B30) biodiesel program meant to slash Indonesia’s oil imports, which are a major contributor to the country’s gaping trade deficit.

However, the palm oil industry behind B30 has also been linked to deforestation and raging forest fires that environmentalists warn may offset carbon emission reductions from reducing oil consumption.

https://www.thejakartapost.com/news...egin-running-cilacap-biorefinery-in-2021.html

 

[CountStrike]

Indonesia says trade, investment deal with Australia takes effect

• News Desk
  Reuters
  
  

Jakarta, Indonesia / Mon, July 6, 2020 / 09:43 am
Done deal: Indonesian then Trade Minister Enggartiasto Lukita (right) shakes hands with his Australian counterpart Simon Birmingham after the Indonesia-Australia Comprehensive Economic Partnership Agreement in Jakarta on March 4, 2019. The trade deal will come into force on July 5, 2020. (AFP/Adek Berry)


An Indonesia-Australia deal that eliminates most trade tariffs between the two nations and aims to open up investment, took effect on Sunday, Indonesia's Trade Ministry said.

The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), signed last year and ratified by the Indonesia's parliament in February, aims to boost bilateral trade that was worth $7.8 billion in 2019.

"COVID-19 has resulted in economic slowdown in nearly all countries," Trade Minister Agus Suparmanto said in a statement. "IA-CEPA momentum can be used to maintaining Indonesian trade and improve competitiveness."


In a signing ceremony last year, the two countries said the pact would eliminate all Australian tariffs on imports from Indonesia, while 94% of Indonesian tariffs would be gradually removed.

Australia aims to boost exports including wheat, iron ore and dairy, while Indonesia hopes to increase automotive exports, textile and electronics. The deal opens up investment, including for Australian universities in Indonesia.

The ministry said in the statement it has issued three regulations to allow for implementation of the deal.

 

[Indos]

Indonesian firm obtains US patent for organic fertilizer

• Apriza Pinandita
  The Jakarta Post
  

Jakarta / Tue, July 7, 2020 / 05:28 pm

An Indonesian fertilizer producer has obtained a patent from the United States for its coal-based fertilizer production technique.

The patent was granted by the US Patent and Trademark Office (USPTO) on June 16 to R. Umar Hasan Saputra, an Indonesian citizen who owns Glogens Organic Micro-Carbon Fertilizer, according to the Foreign Ministry’s website.

The patent allows the business to enter the US agricultural market, which currently is one of the largest in the world. The company will also be able to expand its investment by establishing a factory in the US to supply the country and the world market.


Umar said the US patent would highlight the quality of his company’s product, which in Indonesia is marketed under the brand Futura by his company, PT Saputra Global Harvest.

He added that the fertilizer was manufactured using low-calorie coal that could be found in many countries. The fertilizer is organic, ecofriendly and can repair the condition of the soil. It is easier to produce than chemical-based fertilizers and is therefore less costly.

Read also: 'It's like the Pentagon': New ministry's control center to improve agriculture data collection

Umar said his company had been developing the product for 11 years before it was adopted by farmers in Indonesia. He said the fertilizer could increase the productivity of various types of plants.

Umar said Glogens would apply for a license to sell the product in the US. The company was preparing a plot of land in California for a trial of the product on rice and a plot in Indiana for a trial on corn.

Meri Binsar Simorangkir, the Indonesian Consul General in Chicago, said on Monday that the Indonesian Consulate General in Chicago and the Indonesian Trade Promotion Center (ITPC) would help the company get certifications needed in the US. The institutions would also help to promote the brand in the US market, especially in the Midwest, the breadbasket of the US, which produces significant amounts of soybeans, corn and wheat.

“The Midwest is a potential market for Futura,” said Meri.

His company is also cooperating with the government of Zimbabwe to procure land for research and development. Umar is considering marketing his product in Africa, particularly in Kenya, Zambia, Namibia and Ghana.

The Indonesian government has expressed hope that Umar’s achievement will open other doors for the sale of coal-based fertilizer in Europe, Asia and Australia. (asp)

https://www.thejakartapost.com/news...obtains-us-patent-for-organic-fertilizer.html

 

[Nike]

Indonesian firm obtains US patent for organic fertilizer

• Apriza Pinandita
  The Jakarta Post

Jakarta / Tue, July 7, 2020 / 05:28 pm

An Indonesian fertilizer producer has obtained a patent from the United States for its coal-based fertilizer production technique.

The patent was granted by the US Patent and Trademark Office (USPTO) on June 16 to R. Umar Hasan Saputra, an Indonesian citizen who owns Glogens Organic Micro-Carbon Fertilizer, according to the Foreign Ministry’s website.

The patent allows the business to enter the US agricultural market, which currently is one of the largest in the world. The company will also be able to expand its investment by establishing a factory in the US to supply the country and the world market.


Umar said the US patent would highlight the quality of his company’s product, which in Indonesia is marketed under the brand Futura by his company, PT Saputra Global Harvest.

He added that the fertilizer was manufactured using low-calorie coal that could be found in many countries. The fertilizer is organic, ecofriendly and can repair the condition of the soil. It is easier to produce than chemical-based fertilizers and is therefore less costly.

Read also: 'It's like the Pentagon': New ministry's control center to improve agriculture data collection

Umar said his company had been developing the product for 11 years before it was adopted by farmers in Indonesia. He said the fertilizer could increase the productivity of various types of plants.

Umar said Glogens would apply for a license to sell the product in the US. The company was preparing a plot of land in California for a trial of the product on rice and a plot in Indiana for a trial on corn.

Meri Binsar Simorangkir, the Indonesian Consul General in Chicago, said on Monday that the Indonesian Consulate General in Chicago and the Indonesian Trade Promotion Center (ITPC) would help the company get certifications needed in the US. The institutions would also help to promote the brand in the US market, especially in the Midwest, the breadbasket of the US, which produces significant amounts of soybeans, corn and wheat.

“The Midwest is a potential market for Futura,” said Meri.

His company is also cooperating with the government of Zimbabwe to procure land for research and development. Umar is considering marketing his product in Africa, particularly in Kenya, Zambia, Namibia and Ghana.

The Indonesian government has expressed hope that Umar’s achievement will open other doors for the sale of coal-based fertilizer in Europe, Asia and Australia. (asp)

https://www.thejakartapost.com/news...obtains-us-patent-for-organic-fertilizer.html

Hope other companies followed the suit and after the largest market in the world

 

[Nike]

TransJakarta plans to start operating 100 electric buses by 2020-end
6th Jul 2020 13:44

Jakarta (ANTARA) - PT Transportation Jakarta (TransJakarta) plans to operate 100 electric buses in the capital city by 2020-end to support the Jakarta Blue Sky Program initiated by the Jakarta provincial government.

"We only have two electric buses for the trial run. We, the TransJakarta management, have planned to conduct a trial run of 100 buses until the end of the year," TransJakarta Director Sardjono Jhony Tjitrokusumo remarked after a memorandum of understanding was inked between TransJakarta and Bakrie Autoparts for the trial run of the EV1 electric bus serving Balai Kota (the City Hall)-Blok M route at the TransJakarta Office here on Monday.

The electric bus plying on the Balai Kota-Blok M route will serve passengers on a daily basis at a 45-minute frequency, starting from 10 a.m. local time to 8 p.m. local time.

During the trial period, passengers can ride free of charge but are required to insert their electronic wallet cards into the “Tap On Bus” machine installed on the bus.

Related news: Transportation Minister calls for development of electric buses

TransJakarta has two electric buses and is partnering with the BYD brand holders to conduct a trial run of the environment-friendly vehicles on the streets of the capital.

PT Bakrie Autoparts, as a BYD agent in Indonesia, used two K9-model single low-entry buses and a C6 medium bus type during the trial.

"Certainly, it is far from noisy. The bus operates without any sound and certainly does not emit any smoke since it runs on electricity," Sardjono expounded.

During the trial period, the performance of electric buses will be jointly evaluated and verified by Bakrie Autoparts, TransJakarta, Independent Consultants, and the Jakarta Transportation Agency.

"After three months, we will both see what it looks like, if it is worth it and whether their numbers will be increased and promoted," he stated.

The two electric buses, operated on a trial basis, have met the eligibility standards as stipulated in the Indonesian Transportation Ministry’s regulations.

In 2019, TransJakarta had conducted an electric bus trial run in several tourist areas, including Ancol, Monas, Taman Mini Indonesia Indah, and Kota Tua.

Related news: PLN goads people to transition to electric vehicles
Related news: Grab's electric cars to operate in Jakarta in January 2020
Translated by: Livia Kristianti, Fardah
Editor: Sri Haryati

https://en.antaranews.com/news/1518...tart-operating-100-electric-buses-by-2020-end

 

[Bungaterakhir]

Indonesia Listed Companies to Pay Lowest Tax rate in Southeast Asia
source : Link

Jakarta. Some of Indonesia's listed companies will enjoy a lower income tax rate of 19 percent this year and next year, with a further 3 percent cut starting in 2022 that would make the rate lower than Singapore's corporate income tax rate, the Finance Ministry said last week.

The government has already lowered the income tax for companies to 22 percent last month as part of its stimulus package to ease the impact of the Covid-19 pandemic to Indonesia's economy.

The cut introduced by the government would allow some listed companies to pay tax at a 16 percent rate, lower than 17 percent rate in Singapore which currently offers the lowest corporate income tax rate in Southeast Asia.

Grab Contributes IDR.77,4Trillion to Indonesian economy : Research

source : Link

Ride-hailing firm Grab Indonesia contributed Rp 77.4 trillion (US$5.45 billion) to the Indonesian economy last year, largely thanks to its food delivery service, while providing gig work for the country’s informal workers, research released Thursday has shown.

The research, conducted by the Centre for Strategic and International Studies (CSIS) and Tenggara Strategics, revealed that the biggest source of Grab’s contributions to the economy came from its food delivery service GrabFood, which contributed Rp 37.3 trillion of the total Rp 77.4 trillion. The overall 2019 figure marks a 58.3 percent increase from the firm’s Rp 48.9 trillion in 2018.

Alfa X by Alfamart

Alfa X as one of the latest major projects from Alfamart that aims to create a space for today's millennials without leaving the main function as a convenience store that provides goods. Millennials have standards for a gathering place, hanging out, or doing assignments. Aside from having a tasty and affordable menu, other things like the cafe design is certainly an added value in itself. Design is certainly expected can be present "accommodating" various millennial needs today, especially across the location site with a campus so that the first outlet can be a pilot project for Alfamart to develop Alfa X.

 

[Gundala]

Jakarta. Some of Indonesia's listed companies will enjoy a lower income tax rate of 19 percent this year and next year, with a further 3 percent cut starting in 2022 that would make the rate lower than Singapore's corporate income tax rate, the Finance Ministry said last week.

The government has already lowered the income tax for companies to 22 percent last month as part of its stimulus package to ease the impact of the Covid-19 pandemic to Indonesia's economy.

The cut introduced by the government would allow some listed companies to pay tax at a 16 percent rate, lower than 17 percent rate in Singapore which currently offers the lowest corporate income tax rate in Southeast Asia.

I like this. Even at 20% some Indonesians "shell" company will start to move it back to Indonesia including some of their "funds". This will be huge and we shoulda done it many-many years ago.