Indonesia Economy Forum
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pr1v4t33r
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Indonesia gets $18.7 bln in direct investment since Widodo took office
Dec 19 (Reuters) - Indonesia has attracted $18.7 billion worth of prospective investments from domestic and foreign investors since the new President Joko Widodo took office in October, its Investment Coordinating Board said.
Most of the investments were in import substitution industry, maritime and mineral processing plant, the board said in a statement on Thursday.
During the first nine months of the year, Indonesia recorded 342.7 trillion rupiah ($27.44 billion) worth of domestic and foreign direct investment, according to data from the investment board. This was 75.1 percent of its target.
In the third quarter this year, Indonesia drew $6.4 billion foreign direct investment, a 16.9 percent growth from last year.
The data excludes investment in oil, gas and banking sector.
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Dec 19 (Reuters) - Indonesia has attracted $18.7 billion worth of prospective investments from domestic and foreign investors since the new President Joko Widodo took office in October, its Investment Coordinating Board said.
Most of the investments were in import substitution industry, maritime and mineral processing plant, the board said in a statement on Thursday.
During the first nine months of the year, Indonesia recorded 342.7 trillion rupiah ($27.44 billion) worth of domestic and foreign direct investment, according to data from the investment board. This was 75.1 percent of its target.
In the third quarter this year, Indonesia drew $6.4 billion foreign direct investment, a 16.9 percent growth from last year.
The data excludes investment in oil, gas and banking sector.
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pr1v4t33r
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Hope springs - The Economist’s country of the year
EVEN with the best will in the world—which, in 2014, has not been conspicuously forthcoming—the outgoing year could not be regarded as one of the planet’s finest. Between war, disease and insurrection, the past 12 months have often seemed a gory relay for the apocalypse’s four horsemen. But look closely, and amid the misery there have been reasons for optimism. Whether by dint of boldness or stoicism, there are numerous candidates for the coveted title of The Economist’s country of the year.
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And the winner is…
The runner-up (just) is Indonesia, the world’s largest Muslim nation, where a modern politician bested the old, militaristic regime in a fair if rancorous vote. The new, reforming president, Joko Widodo, has begun to nudge his country beyond its crossroads and towards prosperity.
Our winner is a much smaller nation, but we think symbolism matters more than size. The idealism engendered by the Arab spring has mostly sunk in bloodshed and extremism, with a shining exception: Tunisia, which in 2014 adopted a new, enlightened constitution and held both parliamentary and presidential polls (a run-off is due in the latter on December 21st). Its economy is struggling and its polity is fragile; but Tunisia’s pragmatism and moderation have nurtured hope in a wretched region and a troubled world. Mabrouk Tunisia!
EVEN with the best will in the world—which, in 2014, has not been conspicuously forthcoming—the outgoing year could not be regarded as one of the planet’s finest. Between war, disease and insurrection, the past 12 months have often seemed a gory relay for the apocalypse’s four horsemen. But look closely, and amid the misery there have been reasons for optimism. Whether by dint of boldness or stoicism, there are numerous candidates for the coveted title of The Economist’s country of the year.
......
And the winner is…
The runner-up (just) is Indonesia, the world’s largest Muslim nation, where a modern politician bested the old, militaristic regime in a fair if rancorous vote. The new, reforming president, Joko Widodo, has begun to nudge his country beyond its crossroads and towards prosperity.
Our winner is a much smaller nation, but we think symbolism matters more than size. The idealism engendered by the Arab spring has mostly sunk in bloodshed and extremism, with a shining exception: Tunisia, which in 2014 adopted a new, enlightened constitution and held both parliamentary and presidential polls (a run-off is due in the latter on December 21st). Its economy is struggling and its polity is fragile; but Tunisia’s pragmatism and moderation have nurtured hope in a wretched region and a troubled world. Mabrouk Tunisia!
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pr1v4t33r
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98 new species of beetles discovered in Indonesia
And indeed, the world has an awful lot of beetles. When you ignore bacteria (which are obviously ridiculously diverse), beetles are probably the most diverse kind of life there is. If you stuck your hand into a bag full of one of every plant, fungi, animal and insect species on the planet (ew), you'd probably pull a beetle out. So it's no surprise that a recent expedition to find new insects in Indonesia was rather fruitful in the beetle department.
And indeed, the world has an awful lot of beetles. When you ignore bacteria (which are obviously ridiculously diverse), beetles are probably the most diverse kind of life there is. If you stuck your hand into a bag full of one of every plant, fungi, animal and insect species on the planet (ew), you'd probably pull a beetle out. So it's no surprise that a recent expedition to find new insects in Indonesia was rather fruitful in the beetle department.
pr1v4t33r
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Freeport should build two new Indonesia copper smelters by 2020
Dec 23 (Reuters) - Freeport-McMoRan Inc needs to build two Indonesian copper smelters at a cost of around $4 billion by 2020, a government official said, as talks resumed between the miner and Jakarta over the firm's future in the Southeast Asian country. The proposal comes five months after Freeport signed a memorandum of understanding (MOU) with the Indonesian government that ended a six-month tax dispute and paved the way for the company to resume copper concentrate exports.
As part of July's MOU, the country's largest copper producer agreed to pay a $115 million "assurance bond" to develop a $2.3 billion smelter by 2017. The government is now asking Freeport to build a second one by 2020 at a cost of around $1.5 billion.
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Indonesia Bans Travel By Major Tax Debtors
As part of the Indonesian Government's drive to improve tax administration and compliance, the Ministry of Finance recently announced that, following a proposal from the Director General of Taxation (DGT), it has placed a temporary ban on overseas travel by senior personnel of 147 companies and 21 individuals.
The action taken is said to be only the beginning, as a total of 402 companies and 85 individuals, with tax debts amounting to IDR3.32 trillion (USD268m), are being considered for such six-month travel bans.
"A ban on tax debtors to get out of Indonesia is being used as a temporary measure," said Deputy Minister of Finance, and also Acting DGT, Diaswati Mardiasmo, during a press conference. "In accordance with Act No. 19 of 2000, (the ban) is being applied selectively to those with a tax debt amounting to IDR100m or more, and where there is doubt as to their good faith to settle their tax debts."
At the beginning of his presidency, Joko Widodo has made improved tax compliance a priority in order to increase Indonesia's tax ratio and provide additional revenue for development purposes.
In that respect, on December 15, Indonesia also announced an updating of the existing double taxation agreement with its neighbor Singapore, to include the most recent international standard on exchange of tax information.
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Indonesia's Largest Venue to Begin Operations in January 2015
The Indonesia Convention Exhibition (ICE) topped off last week with development at the 80 percent mark. While completion for the US$318 million project is slated for March, business begins in January.
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Indonesia set to leave footprints on Vibrant Gujarat Investors’ Summit 2015
From a single company in the last edition to a 22-member delegation of business chiefs; the upcoming Vibrant Gujarat Global Summit in January 2015 is set to see one of the largest Indonesian delegation’s visit the state capital — indicating the Asian giant’s growing interest in India and the state.
PM Narendra Modi met the Indonesian President Joko Widodo at the ASEAN Summit last month, he had invited the country to take part in India’s growing real estate sector and also spoke about the ‘Make in India’ initiative, inviting Indonesian companies to come to India.
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Russia Says Investment Plans in RI Will Proceed
Russian Ambassador to Indonesia Mikhail Yurievich Galuzin said Russia’s economic turmoil would not affect its investment plans in Indonesia because Russia’s domestic economic problems would only be brief. Regarding Russia’s investment plans in Indonesia, Russian President Vladimir Putin has met with the Indonesian government, which results in a cooperation deal in smelter construction and earth resources explorations beginning February 2015.
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Dec 23 (Reuters) - Freeport-McMoRan Inc needs to build two Indonesian copper smelters at a cost of around $4 billion by 2020, a government official said, as talks resumed between the miner and Jakarta over the firm's future in the Southeast Asian country. The proposal comes five months after Freeport signed a memorandum of understanding (MOU) with the Indonesian government that ended a six-month tax dispute and paved the way for the company to resume copper concentrate exports.
As part of July's MOU, the country's largest copper producer agreed to pay a $115 million "assurance bond" to develop a $2.3 billion smelter by 2017. The government is now asking Freeport to build a second one by 2020 at a cost of around $1.5 billion.
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Indonesia Bans Travel By Major Tax Debtors
As part of the Indonesian Government's drive to improve tax administration and compliance, the Ministry of Finance recently announced that, following a proposal from the Director General of Taxation (DGT), it has placed a temporary ban on overseas travel by senior personnel of 147 companies and 21 individuals.
The action taken is said to be only the beginning, as a total of 402 companies and 85 individuals, with tax debts amounting to IDR3.32 trillion (USD268m), are being considered for such six-month travel bans.
"A ban on tax debtors to get out of Indonesia is being used as a temporary measure," said Deputy Minister of Finance, and also Acting DGT, Diaswati Mardiasmo, during a press conference. "In accordance with Act No. 19 of 2000, (the ban) is being applied selectively to those with a tax debt amounting to IDR100m or more, and where there is doubt as to their good faith to settle their tax debts."
At the beginning of his presidency, Joko Widodo has made improved tax compliance a priority in order to increase Indonesia's tax ratio and provide additional revenue for development purposes.
In that respect, on December 15, Indonesia also announced an updating of the existing double taxation agreement with its neighbor Singapore, to include the most recent international standard on exchange of tax information.
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Indonesia's Largest Venue to Begin Operations in January 2015
The Indonesia Convention Exhibition (ICE) topped off last week with development at the 80 percent mark. While completion for the US$318 million project is slated for March, business begins in January.
------------------------------------------------------------------------------------------------------------------
Indonesia set to leave footprints on Vibrant Gujarat Investors’ Summit 2015
From a single company in the last edition to a 22-member delegation of business chiefs; the upcoming Vibrant Gujarat Global Summit in January 2015 is set to see one of the largest Indonesian delegation’s visit the state capital — indicating the Asian giant’s growing interest in India and the state.
PM Narendra Modi met the Indonesian President Joko Widodo at the ASEAN Summit last month, he had invited the country to take part in India’s growing real estate sector and also spoke about the ‘Make in India’ initiative, inviting Indonesian companies to come to India.
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Russia Says Investment Plans in RI Will Proceed
Russian Ambassador to Indonesia Mikhail Yurievich Galuzin said Russia’s economic turmoil would not affect its investment plans in Indonesia because Russia’s domestic economic problems would only be brief. Regarding Russia’s investment plans in Indonesia, Russian President Vladimir Putin has met with the Indonesian government, which results in a cooperation deal in smelter construction and earth resources explorations beginning February 2015.
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Reashot Xigwin
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Maritime-axis development to boost RI’s GDP
Tama Salim, The Jakarta Post, Jakarta | Business | Tue, December 30 2014, 11:26 AM
Business News
More than two months after taking office, President Joko “Jokowi” Widodo has provided details of his maritime-axis agenda, hoping to float Indonesia into the upper middle-income bracket through maritime development.
With the maritime-oriented development, the government aims to boost its GDP per capita from the current US$3,592 to $10,000.
In order to attain this, the Office of the Coordinating Maritime Affairs Minister has revealed plans to use the annual state budget allocation to focus on maritime development with four main objectives.
The first objective is to strengthen maritime sovereignty by improving maritime laws and international agreements and by finalizing the country’s maritime-border disputes, according to Coordinating Minister Indroyono Soesilo.
Indroyono revealed that only 44.12 percent of the country’s territorial waters had been mapped out. Furthermore, 54.66 percent of Indonesia’s exclusive economic zone (EEZ) has been mapped, with 2,258.12 nautical miles to be finalized.
Aside from that, Indonesia also has unresolved maritime borders with Timor Leste, India and Thailand, all of which are still under discussion. Indroyono said he was aiming to conclude all matters pertaining to maritime borders by 2019, including optimizing the Rp 12 trillion ($967.5 million) under the auspices of the National Agency on Border Management (BNPP).
One example of this, Indroyono said, was the Energy and Mineral Resources Ministry’s recent instruction to provide electricity to the country’s 47 outermost islands by Aug. 17, to coincide with Indonesia’s 70th Independence Day.
He also cited Presidential Regulation (Perpres) No. 178/2014 on the Sea Security Agency (Bakamla) as an important step toward strengthening Indonesia’s maritime defense, by integrating its different agencies under one roof.
In pursuit of the country’s second objective — guaranteeing the welfare of its people by correctly managing natural resources and protecting the marine environment — Indroyono said the government would continue the current efforts at combating illegal fishing, but would also be looking to start the development of aquaculture in 2015.
The government is aiming to reap $150 million of non-tax revenues in 2015, up from this year’s $30 million. Indroyono said the government was looking to generate $2.5 billion in non-tax revenues by 2019.
It intends to increase fishery production to around 40-50 million tons per year through aquaculture from the current 7 million tons.
In terms of tourism, Indroyono said the government is looking to attract 10 million foreign tourists next year and 20 million in 2019, generating revenues of $24 billion by the end of its first five-year term.
The government is also looking to provide free visa entry to several countries, build seven marinas along primary yacht routes, and provide easy entry permits for sailing ships and cruises through Perpres No. 180/2014 on the provisions regarding foreign-yacht entry.
Indroyono said the government would provide more incentives, including slashing levies and restitutions, to the shipbuilding industry, which has only developed significantly on Batam island due to its status as a special economic zone (SEZ).
Another Rp 400 trillion would be used to finance the project to generate 35,000 megawatts of electric power, he said.
The fourth objective, encouraging development in human resources, science, technology and culture to grow a strong maritime mentality, will focus on building marine science-techno parks in three locations by 2019 to spark interest in technology and the sciences.
- See more at: Maritime-axis development to boost RI’s GDP | The Jakarta Post
Tama Salim, The Jakarta Post, Jakarta | Business | Tue, December 30 2014, 11:26 AM
Business News
More than two months after taking office, President Joko “Jokowi” Widodo has provided details of his maritime-axis agenda, hoping to float Indonesia into the upper middle-income bracket through maritime development.
With the maritime-oriented development, the government aims to boost its GDP per capita from the current US$3,592 to $10,000.
In order to attain this, the Office of the Coordinating Maritime Affairs Minister has revealed plans to use the annual state budget allocation to focus on maritime development with four main objectives.
The first objective is to strengthen maritime sovereignty by improving maritime laws and international agreements and by finalizing the country’s maritime-border disputes, according to Coordinating Minister Indroyono Soesilo.
Indroyono revealed that only 44.12 percent of the country’s territorial waters had been mapped out. Furthermore, 54.66 percent of Indonesia’s exclusive economic zone (EEZ) has been mapped, with 2,258.12 nautical miles to be finalized.
Aside from that, Indonesia also has unresolved maritime borders with Timor Leste, India and Thailand, all of which are still under discussion. Indroyono said he was aiming to conclude all matters pertaining to maritime borders by 2019, including optimizing the Rp 12 trillion ($967.5 million) under the auspices of the National Agency on Border Management (BNPP).
One example of this, Indroyono said, was the Energy and Mineral Resources Ministry’s recent instruction to provide electricity to the country’s 47 outermost islands by Aug. 17, to coincide with Indonesia’s 70th Independence Day.
He also cited Presidential Regulation (Perpres) No. 178/2014 on the Sea Security Agency (Bakamla) as an important step toward strengthening Indonesia’s maritime defense, by integrating its different agencies under one roof.
In pursuit of the country’s second objective — guaranteeing the welfare of its people by correctly managing natural resources and protecting the marine environment — Indroyono said the government would continue the current efforts at combating illegal fishing, but would also be looking to start the development of aquaculture in 2015.
The government is aiming to reap $150 million of non-tax revenues in 2015, up from this year’s $30 million. Indroyono said the government was looking to generate $2.5 billion in non-tax revenues by 2019.
It intends to increase fishery production to around 40-50 million tons per year through aquaculture from the current 7 million tons.
In terms of tourism, Indroyono said the government is looking to attract 10 million foreign tourists next year and 20 million in 2019, generating revenues of $24 billion by the end of its first five-year term.
The government is also looking to provide free visa entry to several countries, build seven marinas along primary yacht routes, and provide easy entry permits for sailing ships and cruises through Perpres No. 180/2014 on the provisions regarding foreign-yacht entry.
Indroyono said the government would provide more incentives, including slashing levies and restitutions, to the shipbuilding industry, which has only developed significantly on Batam island due to its status as a special economic zone (SEZ).
Another Rp 400 trillion would be used to finance the project to generate 35,000 megawatts of electric power, he said.
The fourth objective, encouraging development in human resources, science, technology and culture to grow a strong maritime mentality, will focus on building marine science-techno parks in three locations by 2019 to spark interest in technology and the sciences.
- See more at: Maritime-axis development to boost RI’s GDP | The Jakarta Post
pr1v4t33r
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AirAsia, Indonesia and Effective Crisis Management
bloombergview.com/articles/2014-12-30/airasia-indonesia-and-effective-crisis-management
In his run for president this year, Joko Widodo pledged to bring greater openness and accountability to Indonesia. As his administration faces its first international crisis, the mysterious crash of an AirAsia jet, he's proving to be a man of his word.
You can tell a lot about a nation from its response to great tragedy, whether it's Japan's 2011 Fukushima crisis, Malaysia's lost Boeing 777 in March or South Korea's deadly ferry accident in April. So far, Widodo has performed admirably.
Since news broke on Sunday that an Airbus A320 flying from Surabaya, Indonesia, to Singapore vanished with 162 people on board, Widodo has coordinated search-and-rescue efforts, demanded a review of air safety regulations and called on weather agencies to provide timelier information. His government is giving steady updates, and Widodo has sought help from Singapore, Malaysia, South Korea, Australia and, remarkably, China and the U.S. in finding Flight QZ8501.
In contrast, last spring, Malaysia was widely criticized for the secrecy and paranoia that surrounded its search for a Malaysia Airlines flight that disappeared with 239 people aboard. Welcoming U.S. and Chinese military ships into Indonesia's orbit speaks to Widodo's confidence as a leader.
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Indonesia Learns Lessons From MH370 in AirAsia Plane Disaster
bloomberg.com/news/2014-12-31/indonesia-learns-lessons-from-mh370-in-airasia-plane-disaster.html
Indonesia’s search for a downed AirAsia Bhd. plane avoided the missteps that plagued the still fruitless hunt for a Malaysian jet that disappeared almost 10 months ago.
“The Indonesian government and AirAsia have responded more rapidly and with more accuracy to their customers, family members, and the media in general in comparison to the Malaysian accidents,” said Curt Lewis, president of Curt Lewis & Associates in Arlington, Texas, an airline safety and accident investigation consultant. “Perhaps a learned lesson of what not to do.”
Indonesian search crews have recovered debris and six bodies floating in the sea from the AirAsia plane that went missing on Sunday with 162 people on board. By contrast, not a single piece of wreckage has been found from Malaysian Airline System Bhd. (MAS) Flight 370, which vanished March 8 on the way from Kuala Lumpur to Beijing with 239 people on board.
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bloombergview.com/articles/2014-12-30/airasia-indonesia-and-effective-crisis-management
In his run for president this year, Joko Widodo pledged to bring greater openness and accountability to Indonesia. As his administration faces its first international crisis, the mysterious crash of an AirAsia jet, he's proving to be a man of his word.
You can tell a lot about a nation from its response to great tragedy, whether it's Japan's 2011 Fukushima crisis, Malaysia's lost Boeing 777 in March or South Korea's deadly ferry accident in April. So far, Widodo has performed admirably.
Since news broke on Sunday that an Airbus A320 flying from Surabaya, Indonesia, to Singapore vanished with 162 people on board, Widodo has coordinated search-and-rescue efforts, demanded a review of air safety regulations and called on weather agencies to provide timelier information. His government is giving steady updates, and Widodo has sought help from Singapore, Malaysia, South Korea, Australia and, remarkably, China and the U.S. in finding Flight QZ8501.
In contrast, last spring, Malaysia was widely criticized for the secrecy and paranoia that surrounded its search for a Malaysia Airlines flight that disappeared with 239 people aboard. Welcoming U.S. and Chinese military ships into Indonesia's orbit speaks to Widodo's confidence as a leader.
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Indonesia Learns Lessons From MH370 in AirAsia Plane Disaster
bloomberg.com/news/2014-12-31/indonesia-learns-lessons-from-mh370-in-airasia-plane-disaster.html
Indonesia’s search for a downed AirAsia Bhd. plane avoided the missteps that plagued the still fruitless hunt for a Malaysian jet that disappeared almost 10 months ago.
“The Indonesian government and AirAsia have responded more rapidly and with more accuracy to their customers, family members, and the media in general in comparison to the Malaysian accidents,” said Curt Lewis, president of Curt Lewis & Associates in Arlington, Texas, an airline safety and accident investigation consultant. “Perhaps a learned lesson of what not to do.”
Indonesian search crews have recovered debris and six bodies floating in the sea from the AirAsia plane that went missing on Sunday with 162 people on board. By contrast, not a single piece of wreckage has been found from Malaysian Airline System Bhd. (MAS) Flight 370, which vanished March 8 on the way from Kuala Lumpur to Beijing with 239 people on board.
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Dayax
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Indonesia’s Search-and-Rescue Capabilities Honed by Experience
Indonesia has one of the most sophisticated search-and-rescue capabilities among Asian nations, in part because of its experience with past aircraft and ferry accidents and a tricky geographic terrain that comprises about 18,000 islands, according to experts.
Bad weather had been reported along the flight path of the missing Indonesia AirAsia plane that lost contact with air traffic control en route to Singapore from Surabaya, Indonesia, Sunday morning. The jet, an Airbus EADSY +0.32% A320-200, was carrying 162 passengers and crew.
“Indonesia has a lot of experience with disasters. One thing they are very good at investigating accidents,” said Greg Waldron, the Asia managing editor of industry publication FlightGlobal.
Indonesian authorities should be able to quickly put search aircraft in the vicinity of the last known location of the missing plane and launch a search operation within hours, Mr. Waldron said.
However, those flying the search aircraft need to stay mindful of the bad weather, which can reduce visibility and slow the operation, he said.
Indonesian investigators have deep links with agencies that investigate aviation accidents world-wide, including the U.S. National Transportation Safety Board, and any probe would be quite thorough, Mr. Waldron added.
A similar-sized jet–a Boeing BA -0.14% 737-800–operated by Lion Air, Indonesia’s largest carrier, crashed into the sea on final approach into Bali on April 13, 2013. Though nobody died in the crash, the Indonesian National Transportation Safety Committee published a preliminary report in May of that year.
The preliminary report on a Sukhoi Superjet 100 crash in May 2012 that killed 45 people while on a demonstration flight was issued that summer, in August.
“Indonesia actually has unmanned sea vehicles that can navigate though rough seas as well,” said Mark Martin of Martin Consulting, an independent aviation advisory firm. “If the aircraft went down, I’m certain that it would be traced quickly and rescue efforts should be successful.”
Mr. Martin said he expects that the plane’s crew would have been familiar flying on the route and that for them, navigating around weather would be “pretty standard.”
For the latest news and analysis
blogs.wsj.indonesiarealtime
pr1v4t33r
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Widodo Makes Biggest Change to Indonesia Fuel Subsidies: Economy
bloomberg.com/news/2014-12-31/widodo-makes-biggest-change-to-indonesia-s-fuel-subsidy-system.html
Indonesia will cap the diesel subsidy and scrap aid for gasoline beginning tomorrow, the biggest changes to a decades-old system that has tied up budget funds and bloated energy imports.
President Joko Widodo’s government will implement a fixed diesel subsidy of $0.08 a liter effective Jan. 1, Energy Minister Sudirman Said told reporters in Jakarta today. The subsidy for gasoline will be scrapped, said Sofyan Djalil, coordinating minister for economic affairs. The government will pay gasoline distribution costs for areas outside of Java, Madura and Bali, Said explained.
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bloomberg.com/news/2014-12-31/widodo-makes-biggest-change-to-indonesia-s-fuel-subsidy-system.html
Indonesia will cap the diesel subsidy and scrap aid for gasoline beginning tomorrow, the biggest changes to a decades-old system that has tied up budget funds and bloated energy imports.
President Joko Widodo’s government will implement a fixed diesel subsidy of $0.08 a liter effective Jan. 1, Energy Minister Sudirman Said told reporters in Jakarta today. The subsidy for gasoline will be scrapped, said Sofyan Djalil, coordinating minister for economic affairs. The government will pay gasoline distribution costs for areas outside of Java, Madura and Bali, Said explained.
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pr1v4t33r
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Indonesia Doubles Transport Budget on $18 Billion Fuel Gain
bloomberg.com/news/2015-01-05/indonesia-doubling-transport-budget-with-10-billion-fuel-saving.html
Indonesia will save about $18 billion from the biggest overhaul of its decades-old fuel subsidy system, allowing the government to double spending on transportation, agriculture and public works.
The government will save 230 trillion rupiah ($18 billion) in total from the fuel subsidy change and 60 percent of that will be spent on infrastructure, Finance Minister Bambang Brodjonegoro told reporters today. The government plans to double spending on transportation from last year, said Energy and Mineral Resources Minister Sudirman Said in a Bloomberg Television interview with Angie Lau today.
“What happened is shifting the subsidy from consumption into more productive spending,” the energy minister said, adding savings will increase in coming years. “Because of the policy this year 2015, the public works, the transportation sector and the agriculture will double the capital expenditure budget.”
President Joko Widodo scrapped the subsidy for gasoline on Jan. 1 and capped the amount of aid for diesel, joining India and Malaysia in taking advantage of plunging oil prices to wean their nations off government subsidized fuel. Indonesia had been subsidizing fuel since the first oil price shock in the 1970s and kept prices at less than $0.20 per liter until 2005, according to a World Bank report published in March.
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The Raid Actors Join Star Wars: The Force Awakens
ign.com/articles/2015/01/05/the-raid-actors-join-star-wars-the-force-awakens
There has been an awakening in three of The Raid and The Raid 2 stars.
Twitch Film has learned that The Raid lead Iko Uwais, Yayan Ruhian (aka, "Mad Dog/Prakoso" in the film) and Cecep Arif Rahman ("The Assassin" who fought in the kitchen finale of The Raid 2) will all appear in J.J. Abrams' Star Wars: The Force Awakens...........
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Western Australia's only trade office in Indonesia given new life
abc.net.au/news/2015-01-05/wa-trade-office-in-jakarta-to-remain-open/6001028
The Western Australian government has back-flipped on its decision to withdraw its only trade presence in Indonesia. Late last year the Department of State Development, which falls under WA Premier Colin Barnett, flagged its intentions to close it's office in Jakarta. The office has been running for 22 years.
Indonesia is one of the biggest emerging economies in the Asia Pacific and is WA's closest, and seventh largest, international trading partner. The country has a population of 253 million people with an economy growing at six per cent.
After consultation with industry and parliamentary colleagues, Premier Colin Barnett announced that he's not only decided to retain WA's office in Jakarta but he'll also employ a regional director and a dedicated agriculture officer there.
Premier Barnett says he intends to travel to Jakarta this year, to coincide with the opening of an expanded WA office there. “We’re going to have very much a renewed effort into Indonesia to build that relationship further,” he said. Indonesia is WA's biggest customer for live cattle and wheat.........
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Indonesia takes lead on Pakistan in Umrah arrivals
thenewstribe.com/2015/01/04/indonesia-takes-lead-while-pakistan-on-second-in-umrah-arrivals/
RIYADH: Indonesia has taken lead on Pakistan this year in the numbers for Umrah as 1.1 million people from the country got visas for Saudi Arabia until Friday.
Hajj Ministry’s branch in Madinah revealed that 580,000 Umrah pilgrims have already arrived in Saudi Arabia, Arab News reported on Sunday. Indonesian citizens have taken lead on other Muslim countries with highest numbers on the list. It is followed by Pakistan, Turkey, Egypt, Iran, Malaysia and India.
According to Director Hajj Ministry, 97 per cent of Umrah pilgrims have included Madinah in their scheduled journey and that a new group of pilgrims to enter the city only when the previous group leaves. He said that hotels in Madinah were witnessing 100 percent occupancy rates.
Saudi nationals and residents were advised to plan for Umrah in advance to provide ease to foreigners coming throughout the world.
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bloomberg.com/news/2015-01-05/indonesia-doubling-transport-budget-with-10-billion-fuel-saving.html
Indonesia will save about $18 billion from the biggest overhaul of its decades-old fuel subsidy system, allowing the government to double spending on transportation, agriculture and public works.
The government will save 230 trillion rupiah ($18 billion) in total from the fuel subsidy change and 60 percent of that will be spent on infrastructure, Finance Minister Bambang Brodjonegoro told reporters today. The government plans to double spending on transportation from last year, said Energy and Mineral Resources Minister Sudirman Said in a Bloomberg Television interview with Angie Lau today.
“What happened is shifting the subsidy from consumption into more productive spending,” the energy minister said, adding savings will increase in coming years. “Because of the policy this year 2015, the public works, the transportation sector and the agriculture will double the capital expenditure budget.”
President Joko Widodo scrapped the subsidy for gasoline on Jan. 1 and capped the amount of aid for diesel, joining India and Malaysia in taking advantage of plunging oil prices to wean their nations off government subsidized fuel. Indonesia had been subsidizing fuel since the first oil price shock in the 1970s and kept prices at less than $0.20 per liter until 2005, according to a World Bank report published in March.
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The Raid Actors Join Star Wars: The Force Awakens
ign.com/articles/2015/01/05/the-raid-actors-join-star-wars-the-force-awakens
There has been an awakening in three of The Raid and The Raid 2 stars.
Twitch Film has learned that The Raid lead Iko Uwais, Yayan Ruhian (aka, "Mad Dog/Prakoso" in the film) and Cecep Arif Rahman ("The Assassin" who fought in the kitchen finale of The Raid 2) will all appear in J.J. Abrams' Star Wars: The Force Awakens...........
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Western Australia's only trade office in Indonesia given new life
abc.net.au/news/2015-01-05/wa-trade-office-in-jakarta-to-remain-open/6001028
The Western Australian government has back-flipped on its decision to withdraw its only trade presence in Indonesia. Late last year the Department of State Development, which falls under WA Premier Colin Barnett, flagged its intentions to close it's office in Jakarta. The office has been running for 22 years.
Indonesia is one of the biggest emerging economies in the Asia Pacific and is WA's closest, and seventh largest, international trading partner. The country has a population of 253 million people with an economy growing at six per cent.
After consultation with industry and parliamentary colleagues, Premier Colin Barnett announced that he's not only decided to retain WA's office in Jakarta but he'll also employ a regional director and a dedicated agriculture officer there.
Premier Barnett says he intends to travel to Jakarta this year, to coincide with the opening of an expanded WA office there. “We’re going to have very much a renewed effort into Indonesia to build that relationship further,” he said. Indonesia is WA's biggest customer for live cattle and wheat.........
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Indonesia takes lead on Pakistan in Umrah arrivals
thenewstribe.com/2015/01/04/indonesia-takes-lead-while-pakistan-on-second-in-umrah-arrivals/
RIYADH: Indonesia has taken lead on Pakistan this year in the numbers for Umrah as 1.1 million people from the country got visas for Saudi Arabia until Friday.
Hajj Ministry’s branch in Madinah revealed that 580,000 Umrah pilgrims have already arrived in Saudi Arabia, Arab News reported on Sunday. Indonesian citizens have taken lead on other Muslim countries with highest numbers on the list. It is followed by Pakistan, Turkey, Egypt, Iran, Malaysia and India.
According to Director Hajj Ministry, 97 per cent of Umrah pilgrims have included Madinah in their scheduled journey and that a new group of pilgrims to enter the city only when the previous group leaves. He said that hotels in Madinah were witnessing 100 percent occupancy rates.
Saudi nationals and residents were advised to plan for Umrah in advance to provide ease to foreigners coming throughout the world.
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Reashot Xigwin
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Data Show Indonesia’s Poverty Reduction Is Stagnating
Borderline: Economists say former president’s programs lifted millions above poverty line, but just barely, as many brace for a relapse
By Kennial Caroline Laia on 07:20 am Jan 07, 2015
Category Business, Economy, Education, Featured, Front Page, News, Politics
Tags: Indonesia poverty, Joko Widodo, poverty reduction, susilo bambang yudhoyono, wealth gap
An Indonesian youth plays with her tablet device as others stand in a line to fill up job application forms at Kompas Karier Fair in Jakarta on Aug. 22, 2014. Even with permissive poverty thresholds, the rate at which poverty indicators are improving is faltering. (Reuters Photo/Beawiharta)
Jakarta. The Central Statistics Agency, or BPS, last week released Indonesia’s latest poverty data, which found that 27.73 million people, or about 11 percent of the country’s population, lived below the poverty line as of September last year.
The agency defines being poor as living on less than Rp 312,328 ($25) a month.
The BPS’s definition, which averages out to just 80 cents a day, sets a threshold for poverty that excludes many more people — as many as 9 million according to a 2012 study — than internationally accepted standards, such as that of the World Bank, which sets the “absolute” poverty line at $1.25 per day, or the even higher standard of $2 per person per day, which is the average of the national poverty lines for all developing countries.
According to the latest figures in the National Socioeconomic Survey (Susenas), which BPS conducts three times a year, the number of people living below BPS’s “basic needs” poverty line fell from 28.8 million (11.25 percent) in March 2014 and 28.6 million (11.46 percent) in September 2013.
Experts, however, say the declines have been too slow, especially in light of the expected relapse of many Indonesians into conditions of poverty, when the survey is conducted again in March this year, due to economic shocks as a result of the increase in subsidized fuel prices last November and the elimination of the subsidy scheme entirely on Jan 1.
The fuel price hike has triggered increases in prices of other goods and services, as evident in the 8.36 percent inflation rate BPS found in December year-on-year — higher even than the projected 7.93 percent.
On a monthly basis, consumer prices were up 2.46 percent in December, compared with an estimate of 2.06 percent and the 1.5 percent rate in December.
The BPS survey data is consistent with findings by the World Bank, which, drawing on BPS data, concluded in a September 2014 report that progress on reducing poverty in Indonesia continues to slow, with only a reduction of 0.7 percentage points over the last two years, the smallest decline in the last decade.
The World Bank said wealth inequality, measured by an indicator called the Gini ratio, also increased in recent years. It warned that this inequality had the potential to disrupt social cohesion and jeopardize gains from solid economic growth that helped to reduce the poverty rate by roughly half from 24 percent in 1999.
The greatest risk, the World Bank said, is to the 68 million people in Indonesia who live just above the poverty line and are thus vulnerable of falling back into “official” poverty.
Economists Mayling Oey-Gardiner and Enny Sri Hartati said the new administration of President Joko Widodo needed to focus on creating more jobs and supporting business activities if he wanted to significantly reduce the poverty rate.
“Compare ourselves to China: They have done a good job at reducing poverty levels in their country because they have made great progress in the manufacturing sector,” Mayling said.
She added Joko’s administration would similarly fail to eradicate poverty if it continued on the path of former president Susilo Bambang Yudhoyono, whom she said relied solely on poverty alleviation programs to address the issue.
“It is now the task of Joko’s administration to address poverty by spurring the growth of industries, especially locally owned ones,” she said.
Mayling said this entailed revisiting regulations that posed obstacles to permits for opening and running businesses.
“More people in Indonesia will be unemployed if the [business] permit application system remains complicated,” Mayling said.
Enny, an economist with the Institute for Development of Economics and Finance (Indef), similarly said the government needed to overhaul its poverty alleviation policy by integrating it with programs to drive business activities, especially small-scale ones.
“Cash transfers only will not be effective for alleviating poverty,” Enny said, referring to the controversial but common practice of direct cash aid to Indonesia’s poor households following increases in subsidized fuel prices.
Borderline: Economists say former president’s programs lifted millions above poverty line, but just barely, as many brace for a relapse
By Kennial Caroline Laia on 07:20 am Jan 07, 2015
Category Business, Economy, Education, Featured, Front Page, News, Politics
Tags: Indonesia poverty, Joko Widodo, poverty reduction, susilo bambang yudhoyono, wealth gap
An Indonesian youth plays with her tablet device as others stand in a line to fill up job application forms at Kompas Karier Fair in Jakarta on Aug. 22, 2014. Even with permissive poverty thresholds, the rate at which poverty indicators are improving is faltering. (Reuters Photo/Beawiharta)
Jakarta. The Central Statistics Agency, or BPS, last week released Indonesia’s latest poverty data, which found that 27.73 million people, or about 11 percent of the country’s population, lived below the poverty line as of September last year.
The agency defines being poor as living on less than Rp 312,328 ($25) a month.
The BPS’s definition, which averages out to just 80 cents a day, sets a threshold for poverty that excludes many more people — as many as 9 million according to a 2012 study — than internationally accepted standards, such as that of the World Bank, which sets the “absolute” poverty line at $1.25 per day, or the even higher standard of $2 per person per day, which is the average of the national poverty lines for all developing countries.
According to the latest figures in the National Socioeconomic Survey (Susenas), which BPS conducts three times a year, the number of people living below BPS’s “basic needs” poverty line fell from 28.8 million (11.25 percent) in March 2014 and 28.6 million (11.46 percent) in September 2013.
Experts, however, say the declines have been too slow, especially in light of the expected relapse of many Indonesians into conditions of poverty, when the survey is conducted again in March this year, due to economic shocks as a result of the increase in subsidized fuel prices last November and the elimination of the subsidy scheme entirely on Jan 1.
The fuel price hike has triggered increases in prices of other goods and services, as evident in the 8.36 percent inflation rate BPS found in December year-on-year — higher even than the projected 7.93 percent.
On a monthly basis, consumer prices were up 2.46 percent in December, compared with an estimate of 2.06 percent and the 1.5 percent rate in December.
The BPS survey data is consistent with findings by the World Bank, which, drawing on BPS data, concluded in a September 2014 report that progress on reducing poverty in Indonesia continues to slow, with only a reduction of 0.7 percentage points over the last two years, the smallest decline in the last decade.
The World Bank said wealth inequality, measured by an indicator called the Gini ratio, also increased in recent years. It warned that this inequality had the potential to disrupt social cohesion and jeopardize gains from solid economic growth that helped to reduce the poverty rate by roughly half from 24 percent in 1999.
The greatest risk, the World Bank said, is to the 68 million people in Indonesia who live just above the poverty line and are thus vulnerable of falling back into “official” poverty.
Economists Mayling Oey-Gardiner and Enny Sri Hartati said the new administration of President Joko Widodo needed to focus on creating more jobs and supporting business activities if he wanted to significantly reduce the poverty rate.
“Compare ourselves to China: They have done a good job at reducing poverty levels in their country because they have made great progress in the manufacturing sector,” Mayling said.
She added Joko’s administration would similarly fail to eradicate poverty if it continued on the path of former president Susilo Bambang Yudhoyono, whom she said relied solely on poverty alleviation programs to address the issue.
“It is now the task of Joko’s administration to address poverty by spurring the growth of industries, especially locally owned ones,” she said.
Mayling said this entailed revisiting regulations that posed obstacles to permits for opening and running businesses.
“More people in Indonesia will be unemployed if the [business] permit application system remains complicated,” Mayling said.
Enny, an economist with the Institute for Development of Economics and Finance (Indef), similarly said the government needed to overhaul its poverty alleviation policy by integrating it with programs to drive business activities, especially small-scale ones.
“Cash transfers only will not be effective for alleviating poverty,” Enny said, referring to the controversial but common practice of direct cash aid to Indonesia’s poor households following increases in subsidized fuel prices.
pr1v4t33r
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Never a Dull Moment on Jokowi’s Policy Trail
Shake-Up: From the fuel subsidy to executions, the new president has stirred debate
thejakartaglobe.beritasatu.com/news/never-dull-moment-jokowis-policy-trail/
Jakarta. In the just over two months that he has been president, Joko Widodo has earned both plaudits and criticism for some of his policies, most of them a complete 180 on his predecessor’s take on the same issue.
One of his most attention-grabbing moves was to order the sinking of foreign fishing vessels caught poaching inside Indonesia’s maritime borders. Since then, Maritime Affairs and Fisheries Minister Susi Pudjiastuti has enrolled the Navy to round up 19 boats and sink five of them.
The policy has drawn praise, with observers saying the administration needs to get touch on fish poaching if it is to turn Indonesia into a global maritime fulcrum as Joko envisions. “It’s necessary to sink those illegal vessels,” says Hikmahanto Juwana, an international law expert at the University of Indonesia. Under the Susilo Bambang Yudhoyono administration, he says, “fish poaching as a problem was hardly looked into by the government.”
“There are many boats that continue to poach our sea resources, and we’ve done little about the problem,” he says. “So now, by sinking these boats, our government wants to convey its stance that Indonesia will never compromise with any foreign boats that steal our fish.”
Hikmahanto says the sinking of the vessels will not damage relations with the countries where the boats are registered, because Indonesia’s response is targeted toward an illegal act being committed in its own waters. “We are dealing with illegal fishing boats that violate our maritime territory, not the countries where those boats come from,” he says. He adds, though, that over the next few years, the government will need to make its policy clear to other countries to prevent unwanted diplomatic rows.
“What’s being done now must be continued. We cannot be discriminatory in selecting the boats,” Hikmahanto says.
“In addition, it is best for the Foreign Ministry to inform other countries around the world that we have this policy in place so there won’t be any misunderstanding. Ideally, these other countries must start prohibiting their fishermen from poaching in Indonesian waters.”
A less flashy though far more impactful policy move under Joko has been the raising of subsidized fuel prices as part of an effort to trim the burgeoning subsidy and allocate the savings to more productive programs. The hike, Joko calculated, would save the state around Rp 100 trillion ($8.04 billion).
On Nov. 18, less than a month since his inauguration on Oct. 20, Joko duly raised the pump price of the widely used Premium brand of low-octane gasoline, from Rp 5,500 per liter to Rp 8,500 per liter. The price of subsidized diesel sold under the Solar brand also went up, from Rp 5,500 per liter to Rp 7,500 per liter.
But on Wednesday, the government announced that there would be another price adjustment — downward this time, in light of the falling price of crude oil. As of the first day of 2015, Premium has been tamped down to Rp 7,600 per liter, and Solar to Rp 7,250 per liter. The move seems to have vindicated critics of the initial hike, who said at the time that there was no urgent need to raise pump prices just them with the world oil price on a decline since June this year.
Another controversial issue in the past couple of months has been Joko’s insistence on not just maintaining by actively implementing the death penalty, which was rarely employed during Yudhoyono’s second term as president. Joko previously claimed that five death row inmates who had exhausted all avenues of appeal would be put to death in December. The Attorney General’s Office, which is responsible for arranging executions, later said that only two of those inmates would face the firing squad that month.
The AGO typically carries out executions in secret and down not announce whether they have been carried out until well after the fact. As of Thursday, there was no word yet on whether the two executions, set to take place in Batam, Riau Islands, and Cilacap, Central Java, had been carried out. Rights activists have accused Joko of reneging on campaign promises to champion human rights.
“Joko has [...] violated the spirit of human rights in our country,” says Hendardi, from the Setara Institute, a rights and democracy advocacy group. “Joko shouldn’t continue this policy. It is against global opinion.
“The government will be better off reviewing capital punishment for drug convicts,” he adds.
“It is useless and wouldn’t serve any deterrent effect for drug dealers. There are no statistics showing that capital punishment discourages drug dealing,” Hendardi says.
Haris Azhar, the coordinator of the Commission for Missing Persons and Victims of Violence (Kontras), says Joko has “no understanding on human rights.”
.
Shake-Up: From the fuel subsidy to executions, the new president has stirred debate
thejakartaglobe.beritasatu.com/news/never-dull-moment-jokowis-policy-trail/
Jakarta. In the just over two months that he has been president, Joko Widodo has earned both plaudits and criticism for some of his policies, most of them a complete 180 on his predecessor’s take on the same issue.
One of his most attention-grabbing moves was to order the sinking of foreign fishing vessels caught poaching inside Indonesia’s maritime borders. Since then, Maritime Affairs and Fisheries Minister Susi Pudjiastuti has enrolled the Navy to round up 19 boats and sink five of them.
The policy has drawn praise, with observers saying the administration needs to get touch on fish poaching if it is to turn Indonesia into a global maritime fulcrum as Joko envisions. “It’s necessary to sink those illegal vessels,” says Hikmahanto Juwana, an international law expert at the University of Indonesia. Under the Susilo Bambang Yudhoyono administration, he says, “fish poaching as a problem was hardly looked into by the government.”
“There are many boats that continue to poach our sea resources, and we’ve done little about the problem,” he says. “So now, by sinking these boats, our government wants to convey its stance that Indonesia will never compromise with any foreign boats that steal our fish.”
Hikmahanto says the sinking of the vessels will not damage relations with the countries where the boats are registered, because Indonesia’s response is targeted toward an illegal act being committed in its own waters. “We are dealing with illegal fishing boats that violate our maritime territory, not the countries where those boats come from,” he says. He adds, though, that over the next few years, the government will need to make its policy clear to other countries to prevent unwanted diplomatic rows.
“What’s being done now must be continued. We cannot be discriminatory in selecting the boats,” Hikmahanto says.
“In addition, it is best for the Foreign Ministry to inform other countries around the world that we have this policy in place so there won’t be any misunderstanding. Ideally, these other countries must start prohibiting their fishermen from poaching in Indonesian waters.”
A less flashy though far more impactful policy move under Joko has been the raising of subsidized fuel prices as part of an effort to trim the burgeoning subsidy and allocate the savings to more productive programs. The hike, Joko calculated, would save the state around Rp 100 trillion ($8.04 billion).
On Nov. 18, less than a month since his inauguration on Oct. 20, Joko duly raised the pump price of the widely used Premium brand of low-octane gasoline, from Rp 5,500 per liter to Rp 8,500 per liter. The price of subsidized diesel sold under the Solar brand also went up, from Rp 5,500 per liter to Rp 7,500 per liter.
But on Wednesday, the government announced that there would be another price adjustment — downward this time, in light of the falling price of crude oil. As of the first day of 2015, Premium has been tamped down to Rp 7,600 per liter, and Solar to Rp 7,250 per liter. The move seems to have vindicated critics of the initial hike, who said at the time that there was no urgent need to raise pump prices just them with the world oil price on a decline since June this year.
Another controversial issue in the past couple of months has been Joko’s insistence on not just maintaining by actively implementing the death penalty, which was rarely employed during Yudhoyono’s second term as president. Joko previously claimed that five death row inmates who had exhausted all avenues of appeal would be put to death in December. The Attorney General’s Office, which is responsible for arranging executions, later said that only two of those inmates would face the firing squad that month.
The AGO typically carries out executions in secret and down not announce whether they have been carried out until well after the fact. As of Thursday, there was no word yet on whether the two executions, set to take place in Batam, Riau Islands, and Cilacap, Central Java, had been carried out. Rights activists have accused Joko of reneging on campaign promises to champion human rights.
“Joko has [...] violated the spirit of human rights in our country,” says Hendardi, from the Setara Institute, a rights and democracy advocacy group. “Joko shouldn’t continue this policy. It is against global opinion.
“The government will be better off reviewing capital punishment for drug convicts,” he adds.
“It is useless and wouldn’t serve any deterrent effect for drug dealers. There are no statistics showing that capital punishment discourages drug dealing,” Hendardi says.
Haris Azhar, the coordinator of the Commission for Missing Persons and Victims of Violence (Kontras), says Joko has “no understanding on human rights.”
.
William Hung
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Ini diterjemahkan dari bagian dari laporan analis Barat.
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Reashot Xigwin
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As Indonesia becomes an important smartphone market, brands rush to open factories
Ketut Krisna Wijaya
5:45 pm on Jan 8, 2015
Indonesia is one of the biggest smartphone markets in the world. Emarketer believes that the nation will have over 100 million active monthly smartphone users by 2018 as it leaps other countries to become the fourth largest market. As this evolution happens, Indonesia is also set to be an important and strategic place for brands to manufacture smartphones.
Indeed, it’s happening already, and other factors are helping to accelerate the growth. Labor costs in Indonesia are relatively low. The country’s annual minimum wage is US$1,163, below China’s US$2,472. Furthermore, the Indonesian government is implementing new policies that heighten the cost to import phones, while at the same time it lowers the barriers to setting up a smartphone factory.
In 2013, Indonesia imported US$2.6 billion worth of smartphones, and that number will keep on increasing. Naturally, the government wants to convert some of that money to revenues made within the country.
A number of homegrown and overseas phone companies have set up facilities in Indonesia, while others are planning on doing so. These run the length of the supply chain, from major component manufacturers to actual smartphone brands. Here’s a list of the main players.
International brands
1. Oppo
China-based Oppo is attacking the Indonesian market very aggressively. The company has put in US$30 million to buy an old factory on the archipelago and revamp it into an assembly plant. The facility, which will become Oppo’s first outside China, is located in Tangerang, just outside of Jakarta, and will be fully operational by mid-2015.
Oppo aims to assemble 500,000 smartphones every month from its Indonesian factory.
2. Haier
Haier – another Chinese brand – is mostly known in mainland China for its home appliances, but its presence in Indonesia is oriented towards smartphones. Haier is one of the producers of phones for local brand Smartfren Andromax.
Haier has put in US$1 million to expand the production line in its plant in Indonesia. The factory will soon assemble 200,000 smartphones each month.
3. ZTE
ZTE is another Chinese manufacturer that supplies white-label smartphones to Indonesian brands. Some of its products in the archipelago include the Smartfren Andromax series and the Bolt Power phone.
ZTE claims that Indonesia is its biggest market and it plans to invest heavily by building a smartphone factory near the airport in Jakarta. However, there are no further details at this early stage.
4. Samsung
Although the South Korean giant has repeatedly stated its interest in building a factory in Indonesia, the plan has yet to come to fruition. The latest update, from Indonesia’s indusry ministry representative, says that Samsung plans to start assembling smartphones in Indonesia this month. The report states that Samsung has brought some machinery and an R&D team to Indonesia.
Samsung is reportedly keen to produce as many as 900,000 phones per month in the plant in West Java – but it will start off with 100,000 units per month once the factory is completed.
5. Axioo
Singapore-based Axioo has been operating two factories in the Cakung and Sunter areas of Jakarta since October 2013. The company claims that it can produce up to 750,000 smartphones and tablets each year. All of Axioo’s phones are assembled in Indonesia, though they use a number of Chinese-made parts. Axioo says that its mobiles are made up of 30 percent Indonesian components at present.
The company wants to put in more local components in the next few years.
Indonesian phone brands
6. Polytron
This local firm is quite well known in the country for producing electronic goods such as radios, speakers, LED TVs, and refrigerators. In 2011, Polytron joined the mobile battlefield by launching its own white-label feature phones. Although Polytron already had three factories at that time, the company still sourced its phones from Chinese manufacturers.
Then in December 2013, Polytron decided to use one of its own plants to produce its feature phones. Recently, Polytron set a target to produce 100,000 feature phones and smartphones every month from its factory in Kudus in Central Java. Polytron’s first homemade smartphones will be sold this month.
7. Evercoss
Located in Semarang in Central Java, Evercoss’ factory started to operate in June 2014. Its 350 employees produce 1,500 smartphones, 1,500 tablets, and 2,500 feature phones each day, but not all of its phones are made in Indonesia yet.
At the moment, Evercoss is setting up another factory in a nearby area. This time, the factory will be able to produce smartphones components and will employ an extra 2,500 workers.
Besides Indonesia, the phone brand plans to launch in other Southeast Asian countries.
8. Advan
Advan has a well-established factory in Semarang which produces LCD screens, notebooks, and PCs. On top of the Rp 1 trillion (US$80.7 million) investment the company poured in to create the 3,000-square-meter factory, Advan is injecting another Rp 100 billion (US$8.1 million) to expand its production line for smartphones and tablets too.
The company aims to assemble 25,000 smartphones and 25,000 tablets each month this year. The company expects to start producing more smartphone components in the near future.
Advan hopes that it can produce its own gadgets independently from Chinese manufacturers in 2016.
9. Mito
Mito’s plant in Tangerang whirred into life in August 2014. The factory is set to assemble 100,000 smartphones and tablets each month. Mito currently assembles phones both in Indonesia and China.
Just like Advan, Mito hopes to produce its own smartphone components in the years ahead.
10. Sat Nusapersada
Sat Nusapersada claims to independently assemble all its phones in Indonesia and also produces some of the components in its 3,000-square-meter Batam (Riau) factory. The rest of the components are sourced from China.
Sat Nusapersada aims to produce 100,000 non-labelled phones every month, and offers its manufacturing service to other phone brands. The most well-known is arguably the Bolt Powerphone IVO V5, which claims to be Indonesia’s first 4G LTE smartphone assembled and produced within the country.
11. Himax
Himax is an exciting new player in the gadget industry in Indonesia as it seeks to disrupt other brands – in a manner similar to Xiaomi – with strongly-specced yet affordable phones. The company is reportedly in the midst of building a factory. In 2016, the six-hectare factory, located in Tangerang, will have a production target of 100,000 smartphones each month.
12. SPC
Although SPC may be the least well-known local brand in this list, the company claims that it’s already assembling about 200,000 feature phones each month in its factory in Tangerang. Injecting an additional US$1 million to its plant, SPC plans to start assembling smartphones and tablets in 2015. It is unknown how many phones the company aims to assemble every month.
Besides the 12 companies above, there are other smartphone makers that have expressed some level of interest in setting up a factory in Indonesia, such as Huawei, Asus, Lenovo, Xiaomi, and LG, at least according to Indonesia’s industry ministry representative. But those companies have not yet confirmed any plans.
The major player that everyone is waiting for in Indonesia is Foxconn. The Taiwan-based manufacturing giant has spoken publicly of its intentions to open a huge factory in Indonesia, but nothing is yet set in stone. Back in February 2014, Foxconn signed a letter of intent to invest up to US$1 billion in the next three to five years in Indonesia, but the negotiations reportedly broke down over land agreements.
Editing by Enricko Lukman and Steven Millward; top image by Prachatai
Smartphone makers rush to set up factories in Indonesia
Ketut Krisna Wijaya
5:45 pm on Jan 8, 2015
Indonesia is one of the biggest smartphone markets in the world. Emarketer believes that the nation will have over 100 million active monthly smartphone users by 2018 as it leaps other countries to become the fourth largest market. As this evolution happens, Indonesia is also set to be an important and strategic place for brands to manufacture smartphones.
Indeed, it’s happening already, and other factors are helping to accelerate the growth. Labor costs in Indonesia are relatively low. The country’s annual minimum wage is US$1,163, below China’s US$2,472. Furthermore, the Indonesian government is implementing new policies that heighten the cost to import phones, while at the same time it lowers the barriers to setting up a smartphone factory.
In 2013, Indonesia imported US$2.6 billion worth of smartphones, and that number will keep on increasing. Naturally, the government wants to convert some of that money to revenues made within the country.
A number of homegrown and overseas phone companies have set up facilities in Indonesia, while others are planning on doing so. These run the length of the supply chain, from major component manufacturers to actual smartphone brands. Here’s a list of the main players.
International brands
1. Oppo
China-based Oppo is attacking the Indonesian market very aggressively. The company has put in US$30 million to buy an old factory on the archipelago and revamp it into an assembly plant. The facility, which will become Oppo’s first outside China, is located in Tangerang, just outside of Jakarta, and will be fully operational by mid-2015.
Oppo aims to assemble 500,000 smartphones every month from its Indonesian factory.
2. Haier
Haier – another Chinese brand – is mostly known in mainland China for its home appliances, but its presence in Indonesia is oriented towards smartphones. Haier is one of the producers of phones for local brand Smartfren Andromax.
Haier has put in US$1 million to expand the production line in its plant in Indonesia. The factory will soon assemble 200,000 smartphones each month.
3. ZTE
ZTE is another Chinese manufacturer that supplies white-label smartphones to Indonesian brands. Some of its products in the archipelago include the Smartfren Andromax series and the Bolt Power phone.
ZTE claims that Indonesia is its biggest market and it plans to invest heavily by building a smartphone factory near the airport in Jakarta. However, there are no further details at this early stage.
4. Samsung
Although the South Korean giant has repeatedly stated its interest in building a factory in Indonesia, the plan has yet to come to fruition. The latest update, from Indonesia’s indusry ministry representative, says that Samsung plans to start assembling smartphones in Indonesia this month. The report states that Samsung has brought some machinery and an R&D team to Indonesia.
Samsung is reportedly keen to produce as many as 900,000 phones per month in the plant in West Java – but it will start off with 100,000 units per month once the factory is completed.
5. Axioo
Singapore-based Axioo has been operating two factories in the Cakung and Sunter areas of Jakarta since October 2013. The company claims that it can produce up to 750,000 smartphones and tablets each year. All of Axioo’s phones are assembled in Indonesia, though they use a number of Chinese-made parts. Axioo says that its mobiles are made up of 30 percent Indonesian components at present.
The company wants to put in more local components in the next few years.
Indonesian phone brands
6. Polytron
This local firm is quite well known in the country for producing electronic goods such as radios, speakers, LED TVs, and refrigerators. In 2011, Polytron joined the mobile battlefield by launching its own white-label feature phones. Although Polytron already had three factories at that time, the company still sourced its phones from Chinese manufacturers.
Then in December 2013, Polytron decided to use one of its own plants to produce its feature phones. Recently, Polytron set a target to produce 100,000 feature phones and smartphones every month from its factory in Kudus in Central Java. Polytron’s first homemade smartphones will be sold this month.
7. Evercoss
Located in Semarang in Central Java, Evercoss’ factory started to operate in June 2014. Its 350 employees produce 1,500 smartphones, 1,500 tablets, and 2,500 feature phones each day, but not all of its phones are made in Indonesia yet.
At the moment, Evercoss is setting up another factory in a nearby area. This time, the factory will be able to produce smartphones components and will employ an extra 2,500 workers.
Besides Indonesia, the phone brand plans to launch in other Southeast Asian countries.
8. Advan
Advan has a well-established factory in Semarang which produces LCD screens, notebooks, and PCs. On top of the Rp 1 trillion (US$80.7 million) investment the company poured in to create the 3,000-square-meter factory, Advan is injecting another Rp 100 billion (US$8.1 million) to expand its production line for smartphones and tablets too.
The company aims to assemble 25,000 smartphones and 25,000 tablets each month this year. The company expects to start producing more smartphone components in the near future.
Advan hopes that it can produce its own gadgets independently from Chinese manufacturers in 2016.
9. Mito
Mito’s plant in Tangerang whirred into life in August 2014. The factory is set to assemble 100,000 smartphones and tablets each month. Mito currently assembles phones both in Indonesia and China.
Just like Advan, Mito hopes to produce its own smartphone components in the years ahead.
10. Sat Nusapersada
Sat Nusapersada claims to independently assemble all its phones in Indonesia and also produces some of the components in its 3,000-square-meter Batam (Riau) factory. The rest of the components are sourced from China.
Sat Nusapersada aims to produce 100,000 non-labelled phones every month, and offers its manufacturing service to other phone brands. The most well-known is arguably the Bolt Powerphone IVO V5, which claims to be Indonesia’s first 4G LTE smartphone assembled and produced within the country.
11. Himax
Himax is an exciting new player in the gadget industry in Indonesia as it seeks to disrupt other brands – in a manner similar to Xiaomi – with strongly-specced yet affordable phones. The company is reportedly in the midst of building a factory. In 2016, the six-hectare factory, located in Tangerang, will have a production target of 100,000 smartphones each month.
12. SPC
Although SPC may be the least well-known local brand in this list, the company claims that it’s already assembling about 200,000 feature phones each month in its factory in Tangerang. Injecting an additional US$1 million to its plant, SPC plans to start assembling smartphones and tablets in 2015. It is unknown how many phones the company aims to assemble every month.
Besides the 12 companies above, there are other smartphone makers that have expressed some level of interest in setting up a factory in Indonesia, such as Huawei, Asus, Lenovo, Xiaomi, and LG, at least according to Indonesia’s industry ministry representative. But those companies have not yet confirmed any plans.
The major player that everyone is waiting for in Indonesia is Foxconn. The Taiwan-based manufacturing giant has spoken publicly of its intentions to open a huge factory in Indonesia, but nothing is yet set in stone. Back in February 2014, Foxconn signed a letter of intent to invest up to US$1 billion in the next three to five years in Indonesia, but the negotiations reportedly broke down over land agreements.
Editing by Enricko Lukman and Steven Millward; top image by Prachatai
Smartphone makers rush to set up factories in Indonesia
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Indonesia Tops Southeast Asia Luring New Factories, Survey Shows
bloomberg.com/news/2015-01-13/indonesia-tops-southeast-asia-luring-new-factories-survey-shows.html
Indonesia will attract more new factories than any other Southeast Asian nation over the next few years, a survey of 75 manufacturers showed, bolstering President Joko Widodo’s drive to revitalize the economy.
Manufacturers plan to build 54 new plants in Southeast Asia’s biggest economy by 2019, a 68 percent increase that will allow Indonesia to overtake Malaysia and Thailand with 133 factories in total, according to the Economist Intelligence Unit survey sponsored by Baker & McKenzie and CIMB Group Holdings Bhd. The companies all currently produce goods in the region.
Widodo, known as Jokowi, has overhauled fuel subsidies to free up budget funds for infrastructure, pledging to spur investment and boost an economy growing at the slowest pace since 2009. Many companies are starting to implement their expansion plans in Indonesia after last year’s election that brought the president to power, said Mochamad Fachri, a lawyer with Hadiputranto, Hadinoto & Partners, Baker & McKenzie’s member firm in Indonesia.
“They believe that the transfer of power has been successful” and the government has shown its commitment to reforming public finances by changing fuel subsidies, he said, referring to the law firm’s clients. “Therefore, the timing is good for putting these expansion plans in place.”
.
bloomberg.com/news/2015-01-13/indonesia-tops-southeast-asia-luring-new-factories-survey-shows.html
Indonesia will attract more new factories than any other Southeast Asian nation over the next few years, a survey of 75 manufacturers showed, bolstering President Joko Widodo’s drive to revitalize the economy.
Manufacturers plan to build 54 new plants in Southeast Asia’s biggest economy by 2019, a 68 percent increase that will allow Indonesia to overtake Malaysia and Thailand with 133 factories in total, according to the Economist Intelligence Unit survey sponsored by Baker & McKenzie and CIMB Group Holdings Bhd. The companies all currently produce goods in the region.
Widodo, known as Jokowi, has overhauled fuel subsidies to free up budget funds for infrastructure, pledging to spur investment and boost an economy growing at the slowest pace since 2009. Many companies are starting to implement their expansion plans in Indonesia after last year’s election that brought the president to power, said Mochamad Fachri, a lawyer with Hadiputranto, Hadinoto & Partners, Baker & McKenzie’s member firm in Indonesia.
“They believe that the transfer of power has been successful” and the government has shown its commitment to reforming public finances by changing fuel subsidies, he said, referring to the law firm’s clients. “Therefore, the timing is good for putting these expansion plans in place.”
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