Indonesia Economy Forum

[Nike]

Japan’s J Trust Gets Regulatory Approval to Own Bank Mutiara
By M. Zakky Ramadhany on 08:16 am Nov 12, 2014

Jakarta. Indonesia’s financial regulator has approved Japanese finance company J Trust’s proposed purchase of Bank Mutiara, two officials said on Tuesday.

Bank Mutiara, formerly Bank Century, was bailed out by the Indonesian government during the global financial crisis in 2008.

The Indonesian Deposit Insurance Corporation or Lembaga Penjamin Simpanan (LPS) started a public bidding process for its 99.996 percent interest in Bank Mutiara in April.

“We have received the result of the fit-and-proper test from OJK [Indonesia’s Financial Services Authority], that J Trust has been approved by OJK to be the new owner of Bank Mutiara,” Samsu Adi Nugroho, an LPS official, said in a text message.

LPS will hold a meeting soon for a transfer in the share ownership and complete the transaction, Nugroho said.

Nelson Tampubolon, executive head of banking supervision at the regulator, confirmed that it had sent its approval.

Nugroho and Tampubolon declined to disclose the transaction price, but an Indonesian lawmaker said in September that J Trust had offered to buy Bank Mutiara for Rp 4.5 trillion ($368.85 million).

Reuters

Japan’s J Trust Gets Regulatory Approval to Own Bank Mutiara - The Jakarta Globe

 

[Nike]

Indonesia Rolls Out Red Carpet to Investors, Promises Reforms
By Eveline Danubrata & Nicholas Owen on 07:59 am Nov 12, 2014

Jakarta. Indonesia’s new government is launching a bid to convince skeptical foreign investors to pour billions of dollars into improving the country’s dilapidated infrastructure, promising to reduce corruption and bureaucracy.

Entrenched graft, burdensome red tape and confusing regulations have scared off investors at a time when disarray in the sprawling country’s infrastructure is a major obstacle to economic growth — which has been slowing.

Statements by President Joko Widodo and ministers indicate a priority will be resolving land acquisition problems, long a big obstacle to infrastructure improvement.

“A lot of investors, when they come to me, they always complain about land acquisition,” Joko on Monday told chief executives in Beijing for the Asia-Pacific Economic Cooperation (APEC) summit.

“I will push my ministers, my governors, my mayors to help clear this problem,” he said.

Joko, who started a five-year term on Oct. 20, used his first foreign trip to try to repair Indonesia’s poor reputation, inviting global CEOs to invest in Indonesia’s ports, power plants, roads and railways.

“I was a businessman … I’m very happy because we can talk about business, about investment with all of you,” Joko said.

Andrinof Chaniago, head of Indonesia’s national development planning agency, told Reuters that under its five-year infrastructure plan, Joko’s government wants to build many ports, 25 dams, 10 airports, 10 industrial parks and 2,000 kilometers of roads.

Indonesia needs at least Rp 6,000 trillion ($493.4 billion) in infrastructure investment over five years, according to Bastary Pandji Indra, director of the agency’s public-private partnership development.

Joko’s signature project is to build 24 small feeder ports and five deep-sea ones. More than half of the estimated $5.75 billion cost should come from private firms, said Coordinating Minister for Maritime Affairs Indroyono Soesilo.

Companies, however, want to see major reforms before investing.

Ports “are really big investments so there needs to be openness about designs and also the whole tender process needs to be more transparent and simplified,” said Jakob Sorensen, chief executive of the Indonesia unit of shipping firm AP Moeller Maersk.

Building ports could be hindered by land-title issues that have stymied construction of power plants.

In July, a joint venture between Japan’s Itochu, Electric Power Development and Indonesia’s Adaro Energy declared force majeure on a $4 billion project in Central Java due to a land acquisition problem.

Fixing the problems

Last week, Joko pitched infrastructure opportunities to a group of global institutional investors who manage a combined $8 trillion.

His presentation included a photo of him sitting with residents who long refused to sell their land, blocking completion of a Jakarta road project. Joko, then Jakarta governor, got the residents to sell, and the project was completed.

“That’s the sort of concrete deliverable that investors really appreciate. He gets down into the field himself to help resolve the situation,” said Tom Lembong, chief executive of Quvat Management, a Singapore-based private equity firm that invests in Indonesia.

“Jokowi is a huge magnet for investors,” Lembong said. “He speaks the language of business.”

The Joko administration aims to create a “one-stop shop” to slash the time needed to get investment permits to 15 days, instead of a multi-stop process taking up to three years, Chaniago said. It may also offer tax incentives for strategic sectors such as renewable energy.

If Indonesia doesn’t attract enough private investment, it could consider the new China-based $50 billion Asian Infrastructure Investment Bank (AIIB) as a source, Soesilo said.

Indonesia hasn’t decided whether to join AIIB, seen as challenging the Western-dominated World Bank and Asian Development Bank.

Reuters

Indonesia Rolls Out Red Carpet to Investors, Promises Reforms - The Jakarta Globe

 

[Reashot Xigwin]

Growth Isn't God in Indonesia

3 Nov 19, 2014 5:01 PM EST
By William Pesek

Joko Widodo's rise from nowhere to Jakarta governor and then the presidential palace showed the wonders of Indonesia's democracy. Now, he wants to democratize the economy as well, focusing as much on the quality of growth as the quantity.

Sixteen years ago, Indonesia was cascading toward failed statehood. In 1998, as riots forced dictator Suharto from office, many wrote off the world's fourth-most populous nation. Today, Indonesia is a stable economy growing modestly at 5 percent, with quite realistic hopes of more.

There's plenty for Widodo, known by his nickname "Jokowi," to worry about, of course. Indonesia still ranks behind Egypt in corruption and near Ethiopia in ease-of-doing-business surveys. More than 40 percent of the nation's 250 million people lives on less than $2 a day. A dearth of decent roads makes it more cost-effective to ship goods to China than across the archipelago. Retrograde attitudes abound: to this day, female police recruits are subjected to humiliating virginity tests.

But this week, Jokowi reminded us why Indonesia is a good-news story -- one from which Asian peers could learn. His move to cut fuel subsidies, saving a cash-strapped nation more than $11 billion in its 2015 budget, showed gumption and cheered investors. Even more encouraging is a bold agenda focusing not just on faster growth, but better growth that's felt among more than Jakarta elites.

This might seem like an obvious focus in a region that's home to a critical mass of the world's extreme poor (those living on $1 or $2 a day). But grand rhetoric about "inclusive growth" hasn't even come close to meeting the reality on the ground. In India, for example, newish Prime Minister Narendra Modi boasts that he will return gross domestic product to the glory days of double-digit growth rates, as if the metric mattered more than what his government plans to do with the windfall.

The "Cult of GDP," the dated idea that booming growth lifts all boats, has long been decried by development economists like William Easterly. The closer growth gets to 10 percent, the more likely governments are to declare victory and grow complacent. In many cases rapid GDP growth masks serious economic cracks. In her recent book, "GDP: A Brief but Affectionate History," Diane Coyle called the figure a "familiar piece of jargon that doesn't actually mean much to most people."

Jokowi appears to see through the hollow superlatives global consumer companies toss around when it comes to Indonesia -- a middle class that will double to 141 million by 2020; a population where half of Indonesians are under 30. Per capita income -- $4,000 at best -- significantly lags peers like Malaysia and Thailand. For all the hype about Indonesia's supposed middle-class boom, many households still grow rice and other crops for a few hundred dollars per harvest. That's why Jokowi's early policies are populist in thrust: welfare programs, handouts to local governments and improved access to health and education.

But Jokowi also is taking five vital steps that should do more than add a few dollars to daily salaries: attacking official corruption; cutting the red tape that turns off foreign investors; launching an ambitious infrastructure-improvement program; increasing tax-collection efforts among the politically-connected elite; and strengthening industry, particularly manufacturing, to boost incomes broadly.

While each is crucial, the last one could be Jokowi's most important legacy. The idea is to emulate Japan, South Korea and Taiwan in making added-value products through better training and infrastructure. That would diversify an economy that still relies too much on exporting natural resources to China.

Roadblocks abound, not least an opposition eager to maintain its privileges and cozy business dealings. Nor will it be easy to balance pro-investor strategies with protectionist currents in Jakarta. But for neighbors like Vietnam, Myanmar and even Thailand, which also suffers from dramatic levels of inequality, Jokowi's agenda provides a pretty decent roadmap to spreading the benefits of growth. Good news, indeed.

To contact the author on this story:
William Pesek at wpesek@bloomberg.net

To contact the editor on this story:
Nisid Hajari at nhajari@bloomberg.net

 

[Nike]

Finance minister, US ambassador discuss investment
Kamis, 20 November 2014 12:28 WIB | 377 Views

Jakarta (ANTARA News) - US Ambassador to Indonesia Robert O Blake has visited Finance Minister Bambang Brodjonegoro to discuss development of the countrys manufacturing sector.

The US envoy recommended acceleration of development of the infrastructure sector to boost investment in the manufacturing sector, Bambang said after the meeting here on Wednesday.

"They suggested development of the manufacturing sector not only in Jakarta but also in various other areas," he said.

The US ambassador suggested that more US investors would be encouraged to do business in the country if infrastructure is adequately available, he said.

"They want infrastructure to be built first to cut logistic cost, which they said too high in the country," he said.

Earlier, the minister received a call from Australian ambassador discussing similar issues.

British and Japanese ambassadors are also scheduled to call on the minister

The investment sector is one of the major economic growth drivers expected by the government in 2015.

President Joko Widodo has pledged simplification of licensing procedure for foreign investors.

Meanwhile, the government has cut subsidies on consumptive sector to be appropriated for productive sector to give a fiscal space of Rp110 trillion-Rp140 trillion partly to be used for infrastructure development.

Sea toll road project is one of the infrastructure projects to be accelerated to cut logistic cost.

Sea toll road project will include revitalization of old ports and development of new ports and procurement of new ships to bring the eastern and western regions of the country closer.(*)

Finance minister, US ambassador discuss investment - ANTARA News

 

[Nike]

Indonesia maritime axis to enhance inter-island connectivity
Sabtu, 15 November 2014 19:54 WIB | 1.586 Views
Pewarta: Otniel Tamindael

Photo document of activities at Tanjung Priok, North Jakarta, which became one of the mainstay of economic and military port in Indonesia. (ANTARA/M. Agung Rajasa)

Jakarta (ANTARA News) - Envisioned by President Joko "Jokowi" Widodo, converting Indonesia into a global maritime axis would expand inter-island connectivity and upgrade port infrastructures within the Indonesian archipelago.

The Indonesian archipelago is made up of five major islands, including Sumatra, Java, Kalimatan, Sulawesi, and Papua; and more than 17 thousands smaller islands, though many of them remain unconnected to their neighbors.

Lack of connectivity is more noticeable in the outlying islands of Eastern Indonesia, such as Maluku and North Maluku.

As part of the maritime axis policy, President Jokowi's government plans to build some 24 sea and deep sea ports in the next five years.

"Yes, we plan to develop 24 seaports in the next five years and that is why we visited Tianjin, because its port is the largest and has already had a blueprint for its development over the next 50 to 100 years," Jokowi said, while riding a train that took him from a visit to Tianjin to Beijing last Sunday.

He realized that Indonesias port infrastructure has suffered from neglect and financial constraints over the years, and many of them are in poor shape and impede the countrys internal and external maritime commerce, in the form of revenue losses, time-lags and procedural delays.

The president expressed hope that restoring Indonesias maritime infrastructure, including the development of better ports and ships, could transform the country into a hub for regional maritime trade and commerce.

For the president, inter-island connectivity is expected to enable effective use of island resources and prevent external poaching of maritime resources.

During his visit to Myanmar to attend the East Asia Summit on November 12-13, 2014, President Jokowi said some Asian countries have extended offers to cooperate with Indonesia in the maritime sector.

He noted that the cooperation with Asian countries holds immense potential, but meticulous evaluation was necessary to ensure that all parties benefit and no losses are borne by Indonesia.

"Besides China, South Korea and India are interested in our maritime axis policy and want to build partnerships with Indonesia in the maritime sector," Jokowi remarked.

He revealed that India and South Korea have shown an interest in cooperating with Indonesia in the area of maritime defense, while China is keen to extend cooperation with Indonesia in the maritime industry.

"Two-thirds of Indonesia is made up of oceans, and it attracts them to cooperate with us," Jokowi noted, adding that cooperation in the maritime sector could be in the fields of fisheries, natural gas, crude oil, and other commodities.

But, the president asserted that any form of cooperation should be profitable for Indonesia.

"Therefore, we have to calculate the percentage of profit and loss in this cooperation. What percent will they get and how much will we get. It is good for the cooperation, but for what, if we get nothing," Jokowi added.

In the meantime, the Indonesian Institute of Sciences (LIPI) Head of Research Center for Oceanography, Zainal Arifin, remarked here on Wednesday that the maritime axis should lead to greater economic security.

"The maritime axis should be able to create food and energy security and defense that lead to economic security," Zainal emphasized.

He stated that as President Jokowi was an entrepreneur, so it was natural that the maritime axis concept encompassed a maritime toll road, seaports, shipping and transportation.

According to him, infrastructure development should be prioritized to make Indonesia a global maritime axis and promote the fisheries sector in Indonesia.

"Transmigration of fishermen in the past was successful enough, but the fishery products at the time were not highly salable. In the province of Maluku, for instance, fish catches were extremely abundant, but in a particular season the catch was wasted due to inadequate post-harvest infrastructures," he noted.

Zainal pointed out that Indonesia is a country with abundant marine fishery potential and, therefore, infrastructure development to strengthen Indonesia as a maritime axis should also include fisheries post-harvest technologies.

"Actually, the fishermen have knowledge of several traditional post-harvest technologies, but they should be developed into appropriate technologies," he remarked.

He noted that several post-harvest technologies have been developed. LIPI, for instance, has developed cold fogging technology without the use of fire.

At a discussion about Indonesias self-reliance as a global maritime axis here on Thursday, Director of Archipelago Solidarity Foundation Engelina Pattiasina stated that President Jokowi should elaborate on the direction and implementation of the maritime axis concept.

She said the public had the right to obtain further information about Jokowis maritime axis concept.

"One of the Jokowi-JK presidential tickets missions, as per their election campaigns, was to make Indonesia a self-reliant, advanced and strong maritime state whose priority will be national interest," she added.

Engelina, who is also a former member of the Indonesian Democratic Party of Struggle (PDIP) faction in the House of Representatives (DPR), pointed out that the maritime axis concept contains international, regional and domestic dimensions and covers multi-sector interests.

The absence, however, of any explanation about the concept has led to concerns that the Indonesian maritime policy will complement the grand concept of Chinas Maritime Silk Route, she said.

"This silk road will be very strategic. Looking at Chinas serious campaigns in the region, it seems the route will most likely be created," she remarked.

The plan to help in the realization of the silk road project has led to questions, such as how will Indonesia benefit by its involvement in the project, she explained.

Indonesia must be consistent with its vision to emerge as the main player in the global maritime sector, because it has all the resources required to become a global maritime axis, she noted.

"Therefore, if Indonesia joins the silk road project, it might affect our sovereignty," she said, adding that the government of President Joko Widodo and Vice-President Jusuf Kalla must be aware of this situation.
(T.O001/ INE/A014)

Indonesia maritime axis to enhance inter-island connectivity - ANTARA News

 

[Nike]

ndonesia fuel subsidies diverted for public welfare
Selasa, 18 November 2014 19:30 WIB | 720 Views
Pewarta: Otniel Tamindael

President Joko Widodo (Jokowi), accompanied by Vice President M. Jusuf Kalla and Minister of the Interior Tjahjo Kumolo when the announced price increases of fuel oil at the State Palace, Jakarta, on Monday night (November 17, 2014). (ANTARA/Andika Wahyu)

Jakarta (ANTARA News) - The government of President Joko Widodo and Vice President M. Jusuf Kalla finally decided to raise the price of subsidized fuels and to divert the subsidies to productive sectors.

These steps were taken for the progress and welfare of the people at large.

President Joko Widodo, better known as Jokowi, said here on Tuesday that if the pattern of subsidies were not altered, the burden of fuel subsidy on the state budget would reach Rp714 trillion in five years.

"Imagine that in five years, the fuel subsidy can amount to Rp714 trillion. However, we need Rp507 trillion for infrastructure development, Rp202 trillion for health, and for railway infrastructure in Sumatra, Kalimantan, Sulawesi and Papua, we need Rp360 trillion. Also, with that amount, we can build more than a thousand dams for irrigation," the president explained.

Therefore, Jokowi remarked that diverting the subsidies to those productive sectors was necessary for the welfare of all people, the poor and the rich alike.

On Monday night, the government announced fuel price hikes, raising the price of subsidized gasoline to Rp8,500 from Rp6,500 per liter and that of subsidized diesel oil to Rp7,500 from Rp5,500 per liter.

President Jokowi stated that the government needed sizable amount of funds to finance the development of infrastructure and improve education and health services.

He added that raising the subsidized fuel prices was a choice that the government needed to make to divert subsidies from consumptive to productive sectors, including those of infrastructure and education.

Deputy Secretary General of the Golkar Party Nurul Arifin said here on Tuesday that the Jokowi-Kalla government should ensure transparency while implementing their decision to divert the fuel oil subsidy.

"There must be transparency, and an explanation must be given for the fuel price hike," Arifin commented here on Tuesday in response to the governments decision to hike the subsidized fuel oil prices from Rp6.5 thousand to Rp8.5 thousand per liter.

She opined that the decision to raise the fuel oil prices would certainly lower public trust in the government as the political promise made by Jokowi during his election campaign that he would not implement such a hike was still fresh in their minds.

Arifin further noted that the governments promise to divert the fuel oil subsidy to productive sectors, such as for the development of infrastructure, should be fulfilled at the earliest.

"It must be realized as soon as possible so that the public can enjoy the benefits they are being promised by the government," she added.

Moreover, Karyono Wibowo, an observer at the Indonesian Public Institute, also remarked here on Tuesday that the government policy to raise the subsidized fuel oil prices could reduce public trust in President Jokowi.

"It is feared that public trust in Jokowi will decline because in less than a month after being inaugurated as president, he has burdened the low-income community with the subsidized fuel price hikes," Wibowo pointed out.

He stated that the government should have postponed the fuel price hikes and looked for solutions to overcome the budget deficit by optimizing the income tax sector, which has soared to hundreds of trillions of rupiahs.

He added that the government could have also plugged the budget leak that occurred in the country and optimized expenditure of state revenues through state-owned enterprises.

"Thorough audit of the oil and gas sector from upstream to downstream also needs to be done," the study team leader of the Trisakti Study Circle explained.

Wibowo explained that raising fuel prices has a big impact on the social and economic lives of people as energy is a vital commodity in their everyday lives.

"The world is dependent on energy. Therefore, it would not be an exaggeration to say that one who controls energy controls the world," he remarked.

Furthermore, a senior politician of the Indonesian Democratic Party of Struggle (PDIP), Pramono Anung, said here on Tuesday that the subsidized fuel price hikes would help to fix the state budget and fiscal deficit.

"The fuel price hike is aimed at fixing the state budget in the long run. If the policy had not been implemented by the president, the government would not have been able to realize its other programs," Anung noted here on Tuesday.

According to him, the increase in fuel prices was an unpopular policy decision and that the Jokowi-Kalla government had taken a major risk.

"If the fuel price hike is an unpopular policy, the government is willing to accept the risks involved to nourish the states fiscal domain," he affirmed.

In addition, Indonesian President Jokowi assured that members of his government were not worried about implementing an unpopular plan to reduce fuel oil subsidies.

During a gathering with the Indonesian community in Brisbane on Friday night, Jokowi remarked that the government did not worry about the policy being unpopular as long it was beneficial for the people.

The president noted that the large amount of funds that were allocated for fuel oil subsidy could be diverted to aid farmers by providing them with irrigation facilities, seeds, and fertilizers, or to help fishermen by providing them with fishing boats, machines and cold storage units. These would be more beneficial than helping those who own cars through fuel oil subsidies.

"If we give people a true and reasonable explanation, they will accept it," President Jokowi said, adding that he did not worry about whether his popularity would decline because of the policy.

He emphasized that public interest was top priority and that the budget should be right on target.
(Uu.O001/INE/KR-BSR/A014)

Indonesia fuel subsidies diverted for public welfare - ANTARA News

 

[Nike]

Indonesia to adopt e-Government policy from ROK
Kamis, 20 November 2014 21:02 WIB | 961 Views
Pewarta: Roberto Calvinantya Basuki

Jakarta (ANTARA News) - Indonesia plans to adopt the Republic of Koreas e-Government system and aims to fully implement it by 2019, an Indonesian minister said here on Thursday.

"South Korea has a proven track record in implementing information andcommunication technology in governance," Minister for Administrative and Bureaucratic Reform Yuddy Chrisnandi stated at the RI-ROK e-Government Collaboration Forum. The theme of the forum is Smarter Strategy for Better Government.

e-Government, according to him, is perfect for modern governance through integrated information and communication technology.

He also suggested all government institutions to implement the system.

"Our goal is to create a more transparent, responsive, and sustainable government," Chrisnandi remarked.

According to the Deputy Minister for Institutional and Governance, Ministry of Administrative and Bureaucratic Reform, Rini Widyantini, the government has several targets to accomplish.

"We need to improve the quality of our public services, create effective and efficient government, and carry out bureaucratic reforms," she remarked.

Widyantini stated this collaboration will be fully accomplished by 2019.

"Our objective in 2014 is to prove the capability of information and communication technology in harmonizing government business processes," she noted.

The collaboration will mainly be carried out in six areas, namely, the government cyber security, government internet exchange, government bus service, integrated government data center, business permit system, and citizen services system.

Last year, Indonesia and S Korea signed an MoU for cooperation in e-governance and administrative reforms.

The two countries worked together for developing Indonesias e-Government Master Plan and enhancing its capacity.

Korean Ambassador to Indonesia Cho Tai-young welcomed the cooperation and said it was an important project for both countries.

"This is the new governments first forum that can create larger cooperation in the near future," he noted.
(T.SDP-89/Uu.KR-BSR/A014)

Indonesia to adopt e-Government policy from ROK - ANTARA News

 

[Nike]

Indonesian government plans to use railway to cut logistic cost
Jumat, 21 November 2014 17:08 WIB | 542 Views

Jakarta (ANTARA News) - The government plans to use railway transport service for the distribution of essential goods to cut logistic cost.

Logistic cost has been the main factor behind the prices of essential goods soaring high in the consumers market, Trade Minister Rachmat Gobel said here on Friday.

He said logistic cost in Indonesia is among the highest in ASEAN around 20 to 30 percent of the countrys Gross Domestic Product.

Based on Logistics Performance Index 2014 of the World Bank, the Indonesian logistic performance was the 53th in the world as against Singapore the fifth, Malaysia the 25th, Thailand the 35th and Vietnam the 48th, he said.

Gobel said he would discuss the matter with the transport minister how best to utilize the railway transport which would be faster and more cost efficient.

He said the plan would certainly need supporting facilities such as warehouses for storage in railway stations.

"The plan has to be running in 2015," he asked.

He said currently cost of distribution of essential goods is too high around 17-20 percent of price.

Therefore, the trade ministry would seriously study the possibility of utilizing the railway transport for farm products to the consumers market, he said.

"The transport cost is too high around 17 to 20 percent not to mention delay in the transport because of traffic jams that would need extra cost," he said.
(Uu.H-ASG/O001)

Indonesian government plans to use railway to cut logistic cost - ANTARA News

 

[Bong]

Every normal man must be a billionaire in Indonesia. Lol

My relative given me a 500 rupiah coin, as I collect international coins. And found out, that is relevant to 3 taka.
On the other hand a 500 taka is 80,000 rupiah

How this happened? Why rupiah is so low?

 

[Nike]

Every normal man must be a billionaire in Indonesia. Lol

My relative given me a 500 rupiah coin, as I collect international coins. And found out, that is relevant to 3 taka.
On the other hand a 500 taka is 80,000 rupiah

How this happened? Why rupiah is so low?

hyperinflation in the past (60 decades economic crises and 98 economic crises) and inadequate responses to adjust the value with GDP growth at the times

 

[Reashot Xigwin]

Indonesia clears path for geothermal energy as power needs rise
Thu Nov 20, 2014 9:00pm GMT

* Indonesia plans 25 tenders for new geothermal sites next year

* Aims to boost geothermal to 10 percent of power mix

* Industry expansion has been slowed by red tape, other hurdles

By Michael Taylor and Wilda Asmarini

JAKARTA, Nov 21 (Reuters) - Indonesia has unveiled ambitious targets to triple geothermal power output this decade, introducing a series of land and regulatory reforms aimed at becoming the world's largest producer of the fossil fuel alternative.

Sat atop the volcanic Pacific Ring of Fire, the world's fourth-most populous nation is anxious to exploit geothermal energy as a clean and abundant power source as it races to attract investors and meet soaring power demand.

"With Indonesia increasingly having to import oil, coupled with a growing electricity demand, it is critical that it diversifies it base for electricity generation," said Chris de Lavigne of consultancy Frost & Sullivan. "Indonesia has the potential to become the world's largest producer of geothermal."

As the world's third biggest geothermal producer with a capacity of 1.4 gigawatt (GW), Indonesia lags behind the Philippines and the United States with capacities of 1.9 and 3.4 GW each. Indonesia aims to up its capacity by 4.9 GW by 2019.

Yet progress has been slow due to red tape, uncompetitive power tariffs and uncertainty over asset ownership. The 25 years it has taken from the planning stage to breaking ground on its latest project show the formidable barriers the sector faces.

The government says reforms to curb the power of regional authorities to intrude on projects, as well as to make it easier to build in forest areas, should accelerate development of 25 project sites due for tender in early 2015.

"There are no more obstacles in this sector. It's time for us to work. It is a business opportunity," said Tisnaldi, director of geothermal, directorate general of renewable energy and energy conservation at the energy and mines ministry.

Geothermal investors hope the new government of President Joko Widodo will follow up with plans to reform power price caps in the same way it reduced subsidies for transport fuel, as well as tackle other obstacles.

"If you can lift the hurdle behind land acquisition and permits, that will help," said Fazil Alfitri, president director at PT Medco Power Indonesia, a firm active in geothermal power.

Geothermal projects typically tap heat below the earth's crust by pumping water into deep wells where it is converted into steam to drive turbines.

But they are susceptible to red-tape given they usually need long-term, complex government policy commitments. They also came under Indonesian mining laws, restricting developments in forest areas until recent amendments.

Indonesia's plans could see geothermal meet 10 percent of power demand by 2020, up from 3 percent today. Currently about half of power supplies are met by coal, a fuel it is keen to use less in order to boost exports. Gas makes up about 20 percent and oil 12 percent.

Many geothermally active countries are planning new plants, with global capacity jumping from 2 to 12 GW since 1980.

Frost and Sullivan's Lavigne said Indonesia's geothermal capacity could be as high as 29 GW, almost two-thirds of the country's current overall generation.

"GAME CHANGER"

The $1.6 billion Sarulla project in North Sumatra, the world's biggest, saw construction start this year, 25 years after it was first planned, delayed largely by a lack of finance and red tape.

Describing Sarulla as a "game-changer", Shamim Razavi, an energy lawyer at Norton Rose Fulbright, said it would mean financers would be prepared to look for new projects.

Most of the biggest existing plants, such as Chevron's Salak, are on densely populated Java island.

Sarulla will connect to the national grid, although some plants in remote spots are restricted to serving local areas. The 25 new sites set for tender in early 2015 are mostly in forest areas in Java and Sumatra. Sarulla will have a capacity of 330 MW, enough to power about 330,000 homes.

If successful, Indonesia could follow its Southeast Asian neighbour the Philippines, where geothermal fuel meets a quarter of electricity use, reducing pollution and fuel imports.

(Additional reporting by Fergus Jensen and Nicholas Owen in JAKARTA and Erik dela Cruz in MANILA; Editing by Henning Gloystein and Ed Davies)

Indonesia clears path for geothermal energy as power needs rise| Reuters

 

[Reashot Xigwin]

Building Up Indonesia
3:38 am EST Nov 12, 2014
By
I Made Sentana and Sara Schonhardt
share
Investors have had an eye on Indroyono Soesilo since he was named head of Indonesia’s new Coordinating Ministry for Maritime Affairs last month. The newly crafted position came without an office or much definition, but on Wednesday — as his boss continued to sell Indonesia overseas — Mr. Soesilo told a room of American diplomats and business people what is needed for Indonesia to develop.

• 200
  
  The number of permits currently required to build a harbor. Mr. Soesilo said the government would try to streamline the licensing process as part of President Joko Widodo’s plan to develop a sea transportation system that will connect the northernmost part of the archipelago with its far eastern area. It will need to do so if it hopes to meet a target of building 24 ports and deep seaports over the next five years to cut down on high transportation and logistics costs. As the world’s largest archipelago nation, Mr. Soesilo said Indonesia’s 5.8 million square kilometers of coastline need to be utilized “more optimally” to strengthen the country’s connectivity.
  
  
• 
  
• 16,500 kilometers
  
  The length of railway Indonesia hopes to achieve by 2019. That’s three times the 5,500 kilometers of railway track currently in the country, and will require significant support from the private sector. But the highly regulated nature of the industry has kept investors at bay. Ignasius Jonan, the country’s transportation minister, referred to the railways as “not a sexy industry” back in September when he was then the head of the state-owned railway company PT Kereta Api.
  
  
• 35,000MW
  
  The amount of additional power Indonesia is targeting to bring online in five years. It will include a mix of coal-generated power as well as alternative energy. “We’re seeking to move on with geothermal” and hydropower, said Mr. Soesilo. The population-dense island of Java currently has around 23,000MW of power, but he predicted it would need to add 1,800MW a year to meet the demands of a growing population and industrial sector. Otherwise “we’ll blackout in Java,” he said.
  
  
• 20 million
  
  The number of new tourist arrivals being target by 2019. The government aims to increase tourist arrivals to 10 million next year from 8.8 million in 2013. To draw more visitors the government recently approved visa-free entry for major tourist markets China, Australia, Japan, South Korea and Russia and any tourists who have visas to enter Singapore, Thailand and Malaysia.
  

Indonesia’s new male birth control pill is ‘99 percent effective’



Tests show it works as well as women’s birth control pills, with far fewer nasty side effects.



A pill that essentially disables sperm? Think of the possibilities. (Christopher Furlong/Getty Images)
BANGKOK — At first glance, it’s a dinky little shrub. Its leaves, however, are endowed with properties that could transform human sexuality.

Called “gendarussa,” the plant provides the crucial ingredient in a long-awaited drug: birth control pills for men.

Tribesmen in Indonesia’s jungly island of Papua have long known this shrub prevents their wives from getting pregnant. In recent years, Indonesian scientists have tested pills synthesized from gendarussa on hundreds of male subjects.

The results? “It’s 99 percent effective,” says Bambang Prajogo, the research project’s lead scientist. He heads a team comprised of researchers from the government’s National Family Planning Coordination Board and Airlangga University, one of Indonesia’s top colleges.

GlobalPost first reported on Indonesia’s male birth control pill nearly four years ago. Since then, hopes for the pill have been buoyed by several successful clinical trials. We spoke to the research team to find out how men might actually use the pill once it’s released on the Indonesian market in 2016.

The gendarussa plant.
- J.M. Garg/Wikimedia Commons
How does it work?

The pill weakens enzymes in sperm that allow them to squirm into a woman’s ovum. Unlike female birth control pills, it doesn’t tinker with hormones, which causes so many unpleasant side effects.

How often will men have to take it?

Probably once a day. Tribesmen in Papua, who boil gendarussa in tea, drink a cup just 30 minutes before sex. The pill’s researchers are still perfecting the dosage, Bambang said, and may eventually develop a version that can be swallowed just one hour before sex.

Any side effects?

Very few. Some guys have gained weight on the pill. Some guys are endowed with a supercharged libido. At least one participant saw an increase in two types of enzymes (SGOT and SGPT) that can indicate a poorly functioning heart or liver (although it’s unclear whether this was related to the pill or some other health issue). But overall, researchers haven’t seen anything that remotely rivals the zits, nausea, sporadic bleeding and other effects many women endure on hormone-based birth control pills.

How long do men on the pill have to wait before they’re fertile again?

Just 30 days after they stop taking the pill, test subjects’ sperm returns to normal.

Are the results trustworthy?

Bambang and his university are well regarded in Indonesia. But ultimately this work must be legitimized through a much larger clinical study. The largest trial so far included 350 men. Indonesia’s version of the Federal Drug Administration wants a bigger trial to verify the findings.

Won’t some giant pharmaceutical firm try to get a piece of the action?

Of course. Bambang said he received an offer worth billions in funding and lab facilities from a major US firm, which he declined to name. The corporation, he said, also wanted his patent on the pill, which Bambang and his university secured in Indonesia. The offer was declined. So far, the team has operated on an incredibly low budget: only about $600,000.

Say the pill is proven to work. Will it ever be available in the US?

Even if larger clinical trials legitimize the pill, the US FDA could force researchers to repeat most of its clinical trials. That could tie up the pill’s potential introduction to the US market for 10 years or more.

Indonesia’s new male birth control pill is ‘99 percent effective’ | GlobalPost

 

[pr1v4t33r]

Ir. Joko Widodo - Secure our oceans!
instagram.com/p/wIlCM8l9ku/

Yesterday (12/03/2014), I went blusukan to Semarang, I visited the Police Academy, then went to see a fishing village in Tambak Lorok Semarang. This fishing village is the largest fishing village in Semarang. Frankly i felt sorrow when i saw this poor village. Emerged in my mind "why our fisherman still don't have access over the capital? don't become the ruler of their own ocean? whereas our oceans is vast, fish in our oceans abundant". Yes indeed, there are very big dangers of illegal fishing and making our fishermen poor is one of them.

Minister of Marine and Fisheries Mrs. Susi had told me some time ago " Sir, our fishermen poor but in front of their eyes they saw foreign trawl rob their fish" Obviously Mrs. Susi angry, her nationalism burned. The love for her people made her angry "why our fishermen poor, while the other rob our oceans all-out".

We must act, and I as the President who is also the Supreme Commander of the military has been ordered our security ranks " secure... secure... and once again secure our seas the from looters, foreign illegal fishing vessels ". This is the first step to settle illegal fishing problem in our oceans. According to what I read from the Audit Board's (BPK) report , there is a loss around $30 billion, and there are about 5,400 Illegal fishing ships, this number is not a joke, if we can secure $30 billion, how much capital inflows will enter this country, and definitely will increase the welfare of our fishermen.

How many fishermen cooperatives can be turned on, how many fisheries industries and its derivatives can be awakened? how much clinics, schools, coastal cultural centers can be developed? Houses of worship can be built? I do not want to see the Indonesian fishermen impoverished, stunned to see foreign trawl vessels rob their ocean, we have to change it. As President and Commander in Chief of the military I ordered our security ranks: Secure our oceans!


---------------------------------------------------------------------------------------------------------------------------


Ten years on, how they rebuilt Aceh from the mud of the Tsunami
click the link for separate defence.pk discussion thread

--------------------------------------------------------------------------------------------------------------------------

Indonesian defense equipment and arms exports
click the link for separate defence.pk discussion thread

--------------------------------------------------------------------------------------------------------------------------

Australian Bali Nine convicts to face firing squad after Indonesian President rules out pardoning any drug convicts on death row
click the link for separate defence.pk discussion thread

-------------------------------------------------------------------------------------------------------------------------

Indonesia Film Festival 2014 - Nominee for best film

Cahaya Dari Timur - The Winner

3 Nafas Likas

Sebelum Pagi Terulang Kembali

Soekarno

Sokola Rimba

 

[Nike]

849.750 barrels/day oil production in 2015 approved
Jumat, 12 Desember 2014 19:56 WIB | 431 Views

Jakarta (ANTARA News) - The Upstream Oil and Gas Regulatory Special Task Force has approved oil lifting in work program and set contractor budget for gas lifting in 2015 at 849.750 barrels per day and 6.592 million cubic per day.

Head adviser to Upstream Oil and Gas Regulatory Special Task Force Haposan Napitupulu said here Friday that the total budget for 2015 has been set at US$22.2 billion for oil and gas in accordance with a "work program and budget" (WP&B) cooperation agreement that has calculated oil price at US$105 dollar per barrel.

Of the total budget, US$1.3 billion will be utilized for the exploration of oil by drilling 54 two-dimension seismic wells along 947,2 km and three-dimension seismic wells along 2.300 km.

An amount of US$4.7 billion will be used for constructing wells, US$14.8 billion for the production of 952 "work over" wells, US$38.914 for the maintenance of wells, and the remaining US$1.5 billion is meant for general expenses.(*)

849.750 barrels/day oil production in 2015 approved - ANTARA News

Indonesia`s fuel imports estimated to reach 575 thousand bpd
Jumat, 12 Desember 2014 20:01 WIB | 1.151 Views

Jakarta (ANTARA News) - Indonesia is expected to import up to 575 thousand barrels of fuel oil per day (bpd) to cover its supply deficit in 2015.

Agus Cahyono Adi, the director of oil and gas program development of the energy and mineral resources ministry, stated here on Friday that the deficit infuel oil supply will continue to exist as long as the production capacity of the refineries is not increased.

"Fuel consumption is increasing while the production of refineries tends to be stagnant, and so, unless the capacity is increased, shortage will continue to occur until the next few years," he pointed out.

Increasing the capacity of the current refineries and building new refineries are the two schemes being implemented by the government so far to increase the supply, he stated.

"A new refinery can be built using the national budget, through public-private cooperation, or fully by private parties," he noted.

With regard to public-private partnership, he stated that the government has already conducted a study regarding its technical and socio-economic feasibility as well as refinery configuration.

The government has also conducted market consultations in Singapore in February to attract investors who will later cooperate with the state-owned oil company, Pertamina.

Investors in the public-private partnership scheme are required to bring high technology, to be able to ensure crude supply, produce petrochemicals, and have professional human resources, he emphasized.

He remarked that the government will provide easy licensing and various incentives, land, and facilities to them, while Pertamina will offtake the production of the refinery, with a capacity of 300 thousand bpd.

He stated that the government has already set aside 500 hectares of land in Bontang, East Kalimantan, for the project.

In the meantime, the government has also given permission to Pertamina to build refineries in other regions, if possible.

Initially, the government was keen to build a refinery by itself but finally decided to cooperate with private parties under the public-private partnership scheme, he revealed.

Pertamina has, so far, made preparations to increase the capacity of its current refineries from 820 thousand bpd to 1.68 million bpd by 2018-2019.

The Refinery Development Master Plan (RDMP) program will be implemented in five refineries with an investment estimated to reach around US$25 billion, he stated.

On December 10, 2014, Pertamina signed a memorandum of understanding (MoU) with the world-class oil company Saudi Aramco to increase the capacity of three refineries located in Dumai, Riau, Cilacap in Central Java, and Balongan in West Java.

It has also signed an MoU with Sinopec for increasing the capacity of its refinery in Plaju, South Sumatra and with JX Nippon Oil & Energy for the refinery in Balikpapan, East Kalimantan.

Under the RDMP program, the capacity of the refinery in Dumai is expected to increase from 140 thousand bpd to 300 thousand bpd and that in Cilacap from 270 thousand bpd to 370 thousand bpd, in Balikpapan from 220 thousand bpd to 360 thousand bpd, and in Balongan from 100 thousand to 350 thousand.

In the meantime, regular gasoline production is expected to increase 3.3 times from 190 thousand bpd to 630 thousand bpd, diesel fuel by 2.4 times from 320 thousand bpd to 70 thousand and avtur from 50 thousand bpd to 120 thousand bpd.

Besides this, fuel oils production of petrochemicals such as propylene and polypropylene will increase 9.5 times from 200 thousand to 1.79 million tons a year, he noted.

Currently, Indonesia has eight refineries with a capacity of 1.166 million bpd.

Six of them belong to PT Pertamina: a refinery located in Dumai, Riau, with a capacity of 177 thousand bpd; Plaju, South Sumatra, 128 thousand bpd; Balongan in West Java 125 thousand bpd; Cilacap in Central Java 348 thousand bpd; Balikpapan in East Kalimantan 260 thousand bpd; and Kasim in Papua 10 thousand bpd.

In the meantime, the refinery operated by PT Trans Pacific Petrochemical Indotama has a capacity of 100 thousand bpd, whereas that operated by Tri Wahana Unversal has a capacity of 18 thousand bpd.

With a total capacity of 1.166 million bpd, the refineries, however, have now been able to produce around 800 thousand bpd. (*)

Indonesia`s fuel imports estimated to reach 575 thousand bpd - ANTARA News

 

[pr1v4t33r]

Nihonjin in indonesia 2014