Indonesia Economy Forum

[katarabhumi]

Garuda gears up for open skies policy
Nadya Natahadibrata, The Jakarta Post, Jakarta | Business | Mon, February 02 2015

As the nations of Southeast Asian brace for ASEAN’s Open Sky, national flag carrier Garuda Indonesia is aiming to increase its “regional passenger” numbers to at least 10 million.

The airline plans to expand its domestic network and increase its fleet for the open-skies policy that will be fully implemented next year.

Garuda Indonesia president director Arif Wibowo said the regional market of the airline industry amounted to a total of 66 million passengers, with around 34 million passengers in Indonesia.

“Last year, we flew a total of 21.5 million passengers, with around 40 percent of them, or around 8 million, being regional passengers,” Arif said, referring to passengers from the Southeast Asia region.

“As we are aiming to grow around 12 percent per year, we hope to book around 10 million regional passengers when the policy is implemented,” he said.

Indonesia has prepared for the open-skies policy and plans to open five major airports in Jakarta, Medan (North Sumatra), Bali, Surabaya (East Java) and Makassar (South Sulawesi). It expects to see an increased number of foreign travelers.

Arif said Garuda, the full-service airline, aimed at recording a total of 25 million passengers this year, while its low-cost arm Citilink had set a target of 11 million passengers.

In order to provide more seats to cater for an increasing number of passengers, the airline is set to add three Boeing 777, two Airbus A330, seven Boeing 737-800, two Bombardier CRK and three ATR 72 aircraft to its fleet this year. With the new aircraft, the carrier will have a total operational fleet of 150 this year.

“Ahead of the Open Sky, we want to spread our wings to the most remote parts of the country, therefore we’re providing services to Raja Ampat, Labuan Bajo and Saumlaki to strengthen our foothold,” Arif said.

“We have received permission to operate in 44 routes for the ATR, but we currently only operate around 17 routes and we are aiming to optimize them,” he added.

The carrier will also reduce its business-class seats from 12 to eight, believing that the move will allow the firm to absorb a larger market, 15 to 20 percent higher, as a result of its economy-class seat increase.

According to Arif, the decision was made in accordance with the company’s analysis results, which concluded that its business-class load factor stood at only between 40 and 50 percent.

Arif added, however, that the increased capacity on the airlines’ side should also be supported by the infrastructure, especially at the country’s main gate Soekarno-Hatta International Airport in Tangerang, Banten.

Airnav president director Bambang Tjahjono separately said that the firm, in cooperation with state-owned airport operator PT Angkasa Pura II (AP II), had prepared the systems to increase the capacity of the existing runway in the country’s main gate from 72 flights per hour to 86 flights per hour.

Bambang said the increased capacity would become effective in June this year.

“Currently we only handle 72 flights per hour during peak season. On normal days, the traffic amounts to only 60 flights per hour,” Bambang said.

“Nonetheless, we have to prepare for a busier airport next year,” he continue.

Garuda gears up for open skies policy | The Jakarta Post

 

[Indos]

Antam Launches $490m Plant

By Muhamad Edy Sofyan on 09:55 pm Feb 09, 2015
Category Business, Corporate News
Tags: Aneka Tambang, chemical grade alummin, global bonds

Rock ore is transported in mine cars at the Aneka Tambang (Antam) gold mine in Pongkor, West Java, Indonesia, on Thursday, Nov. 7, 2013. (Bloomberg Photo/Dadang Tri)

Jakarta. State-controlled miner Aneka Tambang has started the commercial operations of its $490 million chemical-grade alumina plant in Tayan, West Kalimantan, the miner said in a statement on Monday.

The plant, which is set to produce around 300,000 tons of chemical-grade alumina (CGA) per year, is part of the company’s diversification and strategic initiative to boost yields amid the government’s ban on mineral exports.

Antam president director Tato Miraza said the commercial operations of the CGA plant would increase the variety of the miner’s processed commodities, which include nickel, gold, silver and coal.

“The operation of the plant also reflects Antam’s commitment to develop downstream commodities that give added value. It will also create a multiplier effect which will be directly and indirectly linked to the operation of the Tayan CGA plant and bring a positive impact, especially for the economic growth in Tayan and areas around it,” Tato said in a statement.

The Tayan CGA plant is operated by Indonesia Chemical Alumina (ICA), a joint venture between Antam and Japanese firm Showa Denko K.K.

Antam controls 80 percent of the shares in ICA while the remaining 20 percent is owned by Showa Denko.

The production from the Tayan CGA plant will be marketed for both local markets and international, including Japan.

Meanwhile, Antam is considering selling global bonds this year, as one of the options to help finance further mineral processing projects.

Antam finance director Djaja Tambunan said the company could only determine the bond value after conducting a road show, and suggested European, Southeast Asian and US markets as promising potential options.

Djaja added the company had to calculate the right time for the bond issue to get the best market reception.

Antam has mineral processing projects in Kalimantan and North Maluku. In Mempawah, West Kalimantan, Antam is working on a smelter to process bauxite into alumina. The project is worth an estimated $1.7 billion to $1.8 billion. The smelter is expected to be completed in 2017.

Antam is also developing a plant to process nickel ore into ferronickel in East Halmahera, North Maluku province. The project has cost $1.6 billion and is designed to produce 40,000 tons of ferronickel per year.

Its commissioning is planned to take place later this year. Djaja said the company needed further capital injections to support its plan to strengthen its equity.

The government previously planned to inject Antam with Rp 7 trillion ($546 million) worth of funds, but a meeting between the government and the House of Representatives revised the figure down to Rp 3.5 trillion.

Antam booked Rp 9.46 trillion in sales in 2014, down 16 percent from the previous year.

Investor Daily

Antam Launches $490m Plant - The Jakarta Globe

 

[katarabhumi]

RI’s trade balance books surplus in January

Indonesia's trade balance booked a surplus of US$709.4 million in January driven by softer oil imports, the Central Statistics Agency (BPS) announced on Monday.

Imports slid by 15.59 percent to $12.59 billion on a yearly basis with the deficit from refined oil imports shrinking to $1.15 billion, nearly half the amount of the same month last year.

Monthly exports declined by 8.09 percent to $13.3 billion from last year with the surplus rising from $604.9 million to $748 million.

"We hope the surplus we recorded in the first month [of the year] will continue throughout 2015," BPS chief Suryamin said in a press conference.

In recent years, Indonesia has struggled to curb the trade gap, which has caused a significant deficit in its current account and has put pressure on its local currency.

http://www.thejakartapost.com/news/2015/02/16/ri-s-trade-balance-books-surplus-january.html#sthash.d10TtWpD.dpuf

==

Govt, freeport agree to build smelter in Papua

REPUBLIKA.CO.ID, TIMIKA -- Papua Governor Lukas Enembe has positively welcomed an agreement between the government and PT Freeport Indonesia for the construction of a smelter in Timika, Papua.

"We welcome the agreement on the construction of a smelter that has been reached for reaping the benefits of integrated development in the industrial area of Timika," Enembe remarked here on Monday.

The governor noted that Energy and Mineral Resources Minister Sudirman Said and Public Works and Public Housing Minister Basuki Hadi Mulyono have inked an agreement with PT Freeport Indonesia and other stakeholders to build a smelter in Timika at the earliest.

Constructing a smelter in Timika is part of the government's efforts to boost the nation's mineral ore processing capacity as mandated by Law No. 4/2009 on Mineral and Coal Mining.

Governor Enembe remarked that since several years, Papua's provincial government has chalked out a plan to develop Timika into an industrial estate.

"Now, the task of the local government is to prepare a team to select companies that have the ability and capacity to engage in the construction of an industrial estate in Timika," the governor explained.

According to him, the location for the construction of a smelter in Timika did not pose a problem as the district government has provided the required land.

Govt, freeport agree to build smelter in Papua | Republika Online

==

Indonesia, Iraq to Continue Oil and Gas Cooperation

Jakarta. Indonesia pledges commitment to continue bilateral oil and gas cooperation with Iraq, particularly in securing long-term supplies to the largest economy in the Southeast Asia.

Indonesia and Iraq have been in talks since last year regarding the plan by the Middle Eastern nation to supply Indonesia with 300,000 barrels of oil per day for 20 years, an amount that is needed to justify Indonesia’s ambition to build new refineries.

The Energy and Resources Mineral Ministry is scheduling another round of discussions with Iraq in April in Bandung.

Energy Minister Sudirman Said told Indonesian Ambassador to Iraq Safzen Noerdin last week that the ministry’s policy is to encourage direct cooperation between Indonesia and oil-producing countries.

“This [cooperation] is good for Indonesia. We are no longer dependent to only one source,” Sudirman said in a statement.

Sudirman said that Iraq — which produces 3.5 million barrels of oil a day, or about four times Indonesia’s production — could be a long-term energy supplier to Indonesia.

Indonesia, Iraq to Continue Oil and Gas Cooperation  - The Jakarta Globe


.

 

[Cossack25A1]

I am pretty sure this is related to economic news:

-----

Widodo on banning maids from going abroad: We should have dignity
Reuters

Posted at 02/17/2015 9:47 AM | Updated as of 02/17/2015 11:13 AM

BANGKOK (Thomson Reuters Foundation) - Indonesia wants to stop women going abroad as domestic workers to preserve the country's "dignity" after the high-profile case of an Indonesian maid abused and treated like a slave in Hong Kong, local media reported on Monday.

President Joko Widodo told the Hanura Party national congress that he had ordered the manpower ministry to come up with a "clear roadmap" on when Indonesia could stop providing domestic helpers to other countries. No time frame was given.

Widodo acted after a Hong Kong woman was found guilty last week of abusing her Indonesian worker, in a landmark case that triggered outrage over mistreatment of maids and shed light on the abuse that many women face in overseas jobs.

"The practice of Indonesian women going overseas to work as housemaids must stop immediately," Widodo was quoted in the Straits Times newspaper as telling the congress at the weekend. "We should have pride and dignity."

Former beautician Law Wan-tung, 44, a mother of two, was found guilty of 18 of 20 charges including grievous bodily harm and violence against Erwiana Sulistyaningsih and two other maids, also from Indonesia.

The court heard how Erwiana was beaten, denied food, and had her passport confiscated. Law also failed to pay Erwiana's wages, did not allow her days off, and threatened to kill her relatives if they revealed the abuse, the court was told.

Sentencing was deferred until later this month.

Even before the trial, Erwiana's case became a focus for human rights campaigners after photos of her, battered and with burns from boiling water, appeared online. Indonesia's then president, Susilo Bambang Yudhoyono, described her treatment as torture.

Campaigners say Hong Kong's policies on migrant workers often make domestic helpers reluctant to report abuse for fear of being deported.

Hong Kong has about 300,000 foreign domestic helpers, most of them from the Philippines and Indonesia and nearly all women, who can earn more in Hong Kong to send back to their families than they can at home.

Migrant Care, a non-governmental organisation focused on migrant worker protection, said banning Indonesian women from going abroad for work would be a major setback and it was protection they needed when working overseas.

"All Indonesian citizens have the right to seek decent work and it is the responsibility of the state to protect them, no matter where they work," Migrant Care executive director Anis Hidayah told the Jakarta Post.

-----
Widodo on banning maids from going abroad: We should have dignity | ABS-CBN News
-----

 

[katarabhumi]

RI, Japan collaborate to process low calorie coal
Friday, 27 February 2015

REPUBLIKA.CO.ID, KARAWANG -- Indonesia is collaborating with Japan to process low calorie coal into gas, which will be used as a raw material in fertilizer production.

"While coal is abundant, we do not have the required technology to process it. Japan has the expertise in the requisite technology, and thus, we are cooperating with them to process it," the Ministry's Deputy for Energy and Mineral Resources, Montty Girianna, stated here on Thursday, February 26.

Under a government-to-government scheme, the two countries inaugurated a low calorie coal processing plant at the Pupuk Kujang industrial estate in Karawang district, West Java.

The plant, which was developed by Japan's IHI Corporation, served as the first prototype in Indonesia to process low calorie coal into hydrogen gas more efficiently, he noted. "In the next two years, we will focus on research. We will continue to evaluate the performance of the plant. If it works well, we will develop it commercially," he remarked.

Once the research and evaluation process is completed, the plant would be replicated in coal-producing areas on a larger scale, he stated. "For the time being, we are focusing on fulfilling the demand of the fertilizer producers. Once the plant is developed commercially, other industries can utilize its hydrogen gas," he said.

By applying effective technology designed in such a mature way, the plant, built on an 800-square-meter plot of land, will be able to process 50 tons of low calorie coal into gas per day.

RI, Japan collaborate to process low calorie coal | Republika Online

++

More Japanese tourists visiting Bali
The Jakarta Post, Jakarta | Business | Fri, February 27 2015

The number of Japanese holidaymakers visiting the tourist island of Bali has increased sharply so far this year.

"The number of holidaymakers from Japan surged 25 percent in early 2015 after a shrinking trend earlier," a tourist guide for Japanese-speaking visitors, Made Sutarka, said in Denpasar on Friday as quoted by Antara news agency.

Japanese holidaymakers began to come in groups to Bali this year, Sutarka said.

Based on data from the Bali Tourism Office, in January this year there were 17,946 Japanese people flying to Bali directly from Japan, up from only 14,256 in the same month a year earlier.

The number was the third largest after visitors from Australia and China, accounting for 5.95 percent of the total number of foreign visitors to Bali, which totaled 301,618 in January, 2015.

The number of visitors from Japan had declined after the devastating tsunami in 2011.

The plan to offer visa-free visits for tourists from a number of friendly countries, including Japan, is expected to contribute greatly to the rise in the number of visitors from Japan, Sutarka said.

"Hopefully the visa-free facility would attract more visitors to Bali," he said. (hhr)

More Japanese tourists visiting Bali | The Jakarta Post

@Nihonjin1051


.

 

[baukiki88]

EM ASIA FX-Solid U.S. jobs hit Asia FX; rupiah near 17-year low
Reuters – 7 hours ago

• Share
• Print

• 
  Viva - Akhir Pekan, Rupiah Naik Tipis ke Level 12.983/Dolar AS
  

* Rupiah lowest since 1998 on stocks, bonds, corp dlr bids

* Ringgit hits 6-year low on sliding oil prices

* Indonesia, Malaysia c.banks intervention spotted

* Won at 3-month low on offshore funds, importers

(Adds text, updates prices)

By Jongwoo Cheon

SINGAPORE, March 9 (Reuters) - Emerging Asian currencies

lost ground on Monday after stronger-than-expected U.S. job data

boosted expectations that the Federal Reserve may raise interest

rates in the middle of this year, hurting regional

attractiveness of higher yields.

Adding to depreciation pressure, China's imports in the

first two months of the year fell more than 20 percent from a

year earlier, indicating persistent weakness in the world's

second-largest economy.

The Indonesian rupiah hit a near 17-year trough as

bonds and stocks slid. The Malaysian ringgit touched a

six-year low, while the Singapore dollar stayed around

its weakest since July 2010.

South Korea's won slid to a three-month low as

offshore funds sold the currency.

U.S. nonfarm payrolls rose 295,000 in February, beating a

market forecast for a 240,000 increase, data showed on Friday.

The jobless rate last month fell to 5.5 percent, the lowest

level since May 2008.

Those healthy numbers sent the dollar to a fresh

11-year high against a six major currencies and lifted U.S.

Treasury bond yields.

"The strong jobs data helped the 10-year U.S. Treasury yield

rise above 2.2 percent despite lower oil prices. That indicated

markets were pricing in an earlier interest rate hike," said

Yuna Park, a currency and bond analyst at Dongbu Securities in

Seoul.

"The dollar's strength and volatilities in emerging

currencies will intensify, especially in the second quarter,"

Park added.

The benchmark U.S. note yield stood at 2.2289

percent on Monday in Asia. The yield on Friday in New York

posted their biggest rise since November 2013.

RUPIAH

The rupiah lost 0.7 percent to 13,070 per dollar, its

weakest since August 1998, on dollar demand from local

companies.

The currency also slid in non-deliverable forwards

markets.

Most Indonesian government bond returns rose, with yields of

10-year debt and 15-year bonds at their

highest levels since mid-February. Jakarta shares lost

1.3 percent, underperforming regional peers.

The official Jakarta Interbank Spot Dollar Rate,

which the central bank introduced in 2013 to manage exchange

rate fluctuations, was fixed at 13,047 rupiah per dollar, the

weakest since the launch.

The central bank was spotted intervening to support the

worst-performing Asian currency so far this year around the

session's low, traders said.

However, the authority did not seem to be defending specific

levels, they added.

RINGGIT

The ringgit fell 1.0 percent to 3.6900 per dollar, its

weakest since March 2009.

The Malaysian currency came under further pressure as oil

prices slid, underscoring concerns that falling crude will hurt

the country's current account surplus and widen its fiscal

deficit.

The central bank was spotted intervening to support the

currency, traders said.

WON

The won skidded 1.3 percent to 1,112.6 per dollar, its

weakest since Dec. 9.

Offshore funds sold the currency and South Korea's importers

bought the dollar for payments.

The South Korean unit pared some of its losses as exporters

chased it for settlements on dips, traders said.

 

[pr1v4t33r]

Indonesia's trade surplus increased in February to $738 million from $709.4 million in January, the official Central Statistics Agency said Monday.
nasdaq.com/article/correction-to-indonesia-trade-surplus-article-20150316-00200


Jokowi OKs moves to prop up rupiah.
thejakartapost.com/news/2015/03/14/jokowi-oks-moves-prop-rupiah.html

.

 

[katarabhumi]

Sundul.. sundul...

=====
Four Companies to Build Trans Sumatera Toll Road

Four state-owned companies will work together to build the 383-km Trans Sumatera toll road. Those companies are PT Jasa Marga, PT Hutama Karya, PT Wijaya Karya and PT Waskita Karya.

"Other companies can still join if they want to," said PT Jasa Marga president director Adityawarman on Wednesday, March 18, 2015.

The toll road segment that will be built in the near future is the Bakauheni-Terbanggi Besar-Pematang Panjang-Katu Agung segment.

However, the construction process is yet to begin because the government is currently revising the Presidential Decree No. 100/2014 that appoints PT Hutama Karya the only developer of the project. In addition, the cost of the project is yet to be estimated.

The Trans-Sumatera toll road project is a part of Joko "Jokowi" Widodo's administration plan, which hoped to be able to construct a 2,000 kilometers-long road that stretches from Banda Aceh to Bakauheni, Lampung.

Four Companies to Build Trans Sumatera Toll Road | Economy & Business | Tempo.Co :: Indonesian News Portal

++

Japanese investors to increase export oriented investment in Indonesia

Jakarta (ANTARA News) - Industry Minister Saleh Husin asked a group of top Japanese business leaders in Tokyo to boost export oriented investment in Indonesia.

Saleh Husin was in Japan to accompany Vice President Jusuf Kalla on a visit to that country seeking to promote investment cooperation between the two countries.

Husin pointed to plan by Yamaha to increase its production of 250 cc R25 motorcycles in Indonesia for exports to America, Europe and Japan.

He said Mitsui, which has been doing business in Indonesia for almost 100 years, will continue investment in the country by building Jakarta;s Mass Rapid Transit (MRT) project and to expand Tanjung Priok port.

The meeting in Tokyo last weekend resulted in investment commitment by a number of some of the big business leaders including in the automotive, infrastructure, oil and gas and electricity sectors.

Among Indonesian leaders taking part in the meeting were Ambassador Yusron Ihza Mahendra, chief of the Investment Coordinating Board (BKPM) Franky Sibarani, and the vice presidents chief economic adviser Sofjan Wanandi.

"I hope Japanese investors would continue expanding their production capacity and contribute to increasing Indonesia's exports," Husin said.

He appreciates the contributions of Japanese investors to the country's exports increasing , export earning and created more jobs.

In the first nine months of 2014, new Japanese investments in the country were valued at US$2.04 billion placing Japan second to Singapore as the biggest foreign investing countries in Indonesia during that period.

Largest Japanese investment sin the country are in the automotive , transport equipment and metal industries worth US$880.6 million and in machinery and electronic industry valued at US$384.5 million.

Husin sought to convince the Japanese business leader that the Indonesian government would continue to improve the business and investment climate in the country such as by simplifying the licensing procedure through One Stop Service at BKPM.

The largest economy in Southeast Asia is set to chalk up a significant economic growth with its per capita GDP expected to quadruple in 2020.

For Japanese business leaders, Indonesia is one of the most potential investment destinations in the world.

Many Japanese investors in the country plan expansion of business to a number of southeast Asian countries mainly Indonesia, Husin said.

According to an ASEAN Business Outlook Survey 2014, Indonesia is the most attractive place for business expansion in the region followed by Vietnam and Thailand.

Husin said Indonesia is expected to continue to chalk up growth to a higher level to place the country in the ranks of developed economies.

Japanese investors to increase export oriented investment in Indonesia - ANTARA News

++

Japan plans to build 50-MW power plant in Papua
Rabu, 18 Maret 2015

Japan Gas Corporation (JGC), a global engineering company headquartered in Yokohama, plans to build a 50-megawatt power plant in the Indonesian easternmost province of Papua, according to JGC President Director Tetsuo Fujita.

"We will gradually build a thousand-megawatt power plant. Our first step is to build a 50-megawatt one, which requires an investment of at least US$300 million," Fujita stated after meeting Vice President M. Jusuf Kalla here on Wednesday.

The thousand-megawatt power plant is part of Indonesias mega project to build power plants in the country, with a total generation capacity of 35 thousand megawatts.

"I hope we can build a thousand-megawatt project out of the required 35 thousand-megawatt generation capacity, with all the materials being sourced from Indonesia," according to JGC Director Emeritus Yoshihiro Shigehisa.

He noted that the power plant development plan will fully utilize Indonesias natural and human resources.

"All the technicians will be from Indonesia, but they will be trained in Japan for a one-year period and will then return to Indonesia. More than 700 technicians from Indonesia, who have been trained in Japan by JGC, can work very well," he remarked.

Sofjan Wanandi, a member of the vice presidents expert team for economy, explained that the 50-megawatt power plant will be built in Papua.

He pointed out that Sorong, Biak, Fakfak, Timika, Kaimana, Merauke, Sarmi, and Serui are among the 15 locations in Papua where the power plants will be built.

Japan plans to build 50-MW power plant in Papua - ANTARA News

++

Pertamina Receives New Oil Tanker from PT PAL

TEMPO.CO, Jakarta - Indonesia's state oil-and-gas company, Pertamina, has received a new oil tanker with a carrying capacity of 17,500 long tonne deadweight (LTDW) from state-owned shipyard PT PAL Indonesia.

Pertamina's Director of Marketing, Ahmad Bambang said in Jakarta on Thursday, March 19, 2015, that the tanker - valued at US$24 million - will be Pertamina's 69th tanker.

"The fact that we own this ship will reduce our transportation cost, which consequently will reduce Pertamina's operational cost and increase Pertamina's competitiveness in the global downstream oil-and-gas business," said Bambang, who also added that the procurement is a part of Pertamina's commitment to help develop and realise Indonesia's maritime industry potential.

The tanker - which has been christened as Pangkalan Brandan, Sumatera - is the second tanker that Pertamina has acquired from PT PAL, after having received its' first tanker, Pagerungan, on November 12, 2014.

As aforementioned, Pangkalan Brandan is Pertamina's 69th own tanker out of its' total fleet of around 200 tankers, which are constantly deployed to ensure the security of the supply of the fuel across the country.

Pangkalan Brandan will be deployed to deliver fuel supplies from Balongan, Tuban, and/or Tanjung Wangi to Pertamina's depot in Kalimantan and Sulawesi.

Bambang said that Pertamina is scheduled to receive three more similar tankers in 2015 - Pattimura and Parigi, which will be built by Anggrek Hitam in Batam, and Pasaman, which is manufactured by Multi Ocean Shipyard in Karimun.

Pertamina Receives New Oil Tanker from PT PAL | Economy & Business | Tempo.Co :: Indonesian News Portal

++

WB Forecasts Indonesia's Growth at 5.2 Percent

The World Bank (WB) projected that Indonesia's economic growth will reach 5.2 percent this year while the country's current account deficit will account three percent of the Gross National Product (GNP).

World Bank lead economist for Indonesia Ndjame Diop, said that the projection was based on an assumption that commodity prices were relatively too low, in addition to an increase in demands for imports.

"Therefore, exports and imports would not significantly contribute to the growth," Diop said on Wednesday, March 18, 2015.

However, Diop predicted that Indonesia's export volume would gradually improve despite an increase in imports as investments in infrastructure are expected to increase.

Diop added that Indonesia would face several challenges this year, including a drop in exports to China. "Over the last few years, exports to China have dropped by 48 percent," said Diop.

WB Forecasts Indonesia's Growth at 5.2 Percent   | Economy & Business | Tempo.Co :: Indonesian News Portal

 

[pr1v4t33r]

Jokowi present Indonesia investment opportunity like Steve Jobs in Japan

TOKYO -- Indonesian President Joko Widodo, on tour of Japan, has been busy touting his country as an export base in classic Jokowi style: up close and personal.

He addressed 1,200 corporate leaders here Tuesday, explaining his plans to build up Indonesian infrastructure. The proposed investments, worth 50 trillion yen ($418 billion), include 35 million kilowatts of power generation capacity, ports, high-speed rail and expressways.

Widodo quickly abandoned the podium, giving the rest of his roughly 20-minute presentation while pacing the stage like Steve Jobs, stopping often to address the audience in his mild-mannered way.

"There are investment opportunities for Japan," the man nicknamed Jokowi stressed.

Akio Mimura, chairman of the Japan Chamber of Commerce and Industry, praised his performance.

"The way he explained everything with slides, microphone in hand, was groundbreaking" for a head of state, Mimura said.

Widodo said he has listened to many chief executives of Japanese-owned companies talk about their problems doing business in Indonesia. And his government has rolled out reforms in quick succession since his inauguration in October to try to remove obstacles to investment.

Indonesia's procedural hurdles to capital investments were so daunting they could take years to clear. But a new "one-stop service" program begun in January has greatly simplified the approval process, consolidating work that used to be split across more than 20 ministries and agencies. Widodo said he has stepped in personally to help solve delays in acquiring land for a power plant project involving Japan's Electric Power Development, also known as J-Power.

The president "is advancing reforms speedily with his superb leadership ability," said Sadayuki Sakakibara, chairman of Keidanren, Japan's top business lobby.

Japanese companies are increasing investment in Indonesia. Trading house Mitsui & Co. said in December it will take part in building and operating a container terminal at Tanjung Priok Port in Jakarta. Widodo met with Mitsui President Masami Iijima during his current trip to Japan and signed a memorandum of understanding on cooperation in other port projects.

Though Widodo welcomes Japanese investment, he has standards of quality.

"We don't want to export raw materials anymore," he said. "We want to export finished and semifinished goods."

He wants Indonesia to become a base for building and shipping automobiles to the rest of Southeast Asia, the Middle East and other markets, he told Hiroyuki Ishige, chairman of the Japan External Trade Organization. Widodo will visit Toyota Motor on Wednesday.

Indonesia has struggled to achieve critical mass in manufacturing. It remains heavily dependent on imported goods and has the chronic current-account deficits to show for it. There is frustration with a lack of technology transfers, Suryo Bambang Sulisto, chairman of the Indonesian Chamber of Commerce and Industry, told the audience here bluntly.

Japan's Daihatsu Motor sought out more than 30 new local suppliers when it began vehicle production in Indonesia, President Masanori Mitsui said at the event, calling theirs a "win-win relationship." But the Indonesian side clearly thinks that efforts by foreign multinationals to foster local manufacturing have not gone far enough.

Japanese corporate leaders welcomed Widodo with thunderous applause. But will they come through with the kind of investment his government seeks? As an old Chinese proverb says, people in the same bed can have different dreams.

China sidles up amid frustration

On the same day Widodo talked investment in Tokyo, Mitsubishi Motors broke ground on a roughly 60 billion yen factory near Jakarta. The Japanese automaker is laying the foundation for "the next 45 years" of growth, President Osamu Masuko told guests at the ceremony. It has been in business in Indonesia since 1970 but currently exports no cars from there.

Slated to open in 2017, the new plant will build small multipurpose vehicles, aiming to sell an initial 60,000 in Indonesia and export 20,000 to the rest of Southeast Asia. The Middle East and Africa could be next, Masuko said.

Indonesia is seeking just such export-yielding investments. Japanese manufacturers have built factories in Indonesia mainly as inroads into its consumer market. This does little to relieve the country's current-account deficits. Moreover, 90% of Japanese investment is clustered around Jakarta, widening economic disparities between the capital and the rest of the vast archipelago. Yet the Japanese side seems mostly unaware of the frustration this misalignment has produced.

Foreign direct investment from China, the next stop on Widodo's trip to East Asia, totaled $800 million last year, excluding Hong Kong. That may look small compared with the $2.7 billion from Japan. But while Japanese investment fell 43% on the year, Chinese inflows surged 170%. Moreover, the Chinese seem amenable to the materials industry investments that Indonesia wants, and they are expanding infrastructure building in the Indonesian countryside. An inattentive Japan may find itself sidelined in Southeast Asia's biggest market.

asia.nikkei.com/Japan-Update/Indonesian-leader-pushes-for-right-kind-of-investment
.

 

[Nike]

Three thousand hand tractors given to E. Java`s farmers: Official
Rabu, 1 April 2015 19:23 WIB | 820 Views

Document photo of Indonesian farmer use tractor rice cultivators. (ANTARA/Ahmad Subaidi)
Pasuruan (ANTARA News) - The Agriculture Ministry has delivered three thousand hand tractors to targeted groups of farmers in East Java Province as part of the governments efforts to increase the countrys rice production.

Of the three thousand hand tractors, 47 units were handed over by Director General for Agricultural Infrastructure of the Agriculture Ministry Sumardjo Gatot Irianto to several groups of local farmers in Siyar Village, Pasuruan District.

"By giving these 47 hand tractors in Pasuruan District, we have completed the handover of three thousand hand tractors to all targeted groups of farmers in East Java," he stated.

Besides distributing 47 hand tractors, the ministry also provided the farmer groups in Pasuruan District with other agricultural equipment, which comprised 10 units of multifunction threshers, 15 units of corn shellers, 10 units of combine harvesters, and 10 units of water pumps, he remarked.

With the governments support, a 10 percent boost in rice production is expected in the district, or an increase from 5.9 tons to seven tons, he remarked.

The Agriculture Ministry has so far distributed thirty thousand hand tractors to groups of farmers across Indonesia while its total target is sixty thousand units, he noted.

Meanwhile, Head of Pasuruan District Governments Agricultural Affairs Ihwan believes that the ministrys support will enable the local farmers to increase their rice production to more than 5.9 tons.

"The rice production in 2014 reached 661 thousand tons, which was harvested from 68 thousand hectares of paddy fields, the biggest rice production center in East Java after Malang District," he said.

Ihwan noted that the target of at least 6.9 tons of rice production has been set for Pasuruan District this year.

(Reported by Dyah Dwi Astuti/Uu.M053/INE/KR-BSR/O001)

Three thousand hand tractors given to E. Java`s farmers: Official - ANTARA News

 

[Nike]

Jakarta index hits new record high
Selasa, 31 Maret 2015 18:21 WIB | 766 Views

Jakarta (ANTARA News) - The Jakarta Composite Index (JCI) extended gain to hit a new record high on optimism of investors with the countrys economic data.

The index of the Indonesian Stock Exchange closed 80.01 points or 1.47 percent higher at the level of 5,518.67 points with index of the 45 most liquid stocks up 1.63 percent to 961.93 points.

Investa Saran Mandiris analyst Kiswoyo Adi Joe said investors are active in buying shares on optimism with the countrys macro economic data to be released on Wednesday by the Central Bureau of Statistics.

"The JCI climbed to a new peak higher than the previous record high of 5,514 points on 6 March 2015," Kiswoyo said.

The countrys inflation year-on-year is expected to remain low and improvement is also expected in the countrys trade balance, he said.

Trade on Tuesday ended with 311,434 transaction and 4.77 billion shares valued at Rp6.50 trillion changing hands.

Gainers outnumbered decliners by 216 to 104 shares with 101 shares remaining flat.

Regional markets such as Hang Seng recorded an increase in index with Nikkei and Straits Times declining.

Meanwhile, rupiah in interbank transactions gained against the US dollar trading at the level of 13,063 from earlier level of 13,075 per dollar.

Positive domestic sentiments with expectation of improvement in trade balance and low inflation, strengthened rupiah, financial market observer from Bank Himpunan Saudara, Rully Nova, said

Speculation that the Fed would delay plan to raise its fund rate also contributed to rupiah gain.

(H-ASG/A014)

Jakarta index hits new record high - ANTARA News

 

[Nike]

Australian tourist arrivals in Bali increasing
Minggu, 5 April 2015 14:55 WIB | 920 Views

Photo document of immigartion gate with hold baggage screening system in I Gusti Ngurah Rai International Airport, Denpasar, Bali. (ANTARA FOTO/Nyoman Budhiana) ()
Jakarta (ANTARA News) - The Indonesian plan to execute two Australian nationals on death-row convicts for a drug case has not reduced Australian tourist visits to Bali.

"This indicates that Australian tourists are ignoring warnings against visiting Indonesia, particularly Bali," tourism observer Tjok Gede Agung told Antara Bali over the weekend.

In January 2015, Bali recorded 85,059 tourist arrivals from Australia. During the past two months, Australian tourists visiting the province were the highest among other foreign tourist arrivals, reaching 156,424, up 16.74 percent from the same period last year, when their number was recorded a 133,966.

Further, Australian tourist arrivals were the highest among foreign tourists arriving from different countries.

They accounted for 24.41 percent of the total number of foreign tourists arriving in the first two months of 2015, which stood at 640,739.

The highest number of Australian tourists arriving in Bali was followed by the number of tourists coming from China, which stood at 145,747 during the same period (January and February, 2015).

The number of Japanese tourists visiting Bali has also begun to increase since the opening of regular direct flight from Japan to Denpasar.

In the January - February 2015 period, the number of Japanese turists was recorded on the third biggest list, recording 40,544 arrivals, followed by that of South Korea which stood at 28,523.

The political issues are expected to not affect the foreign tourist arrivals in Bali. Therefore Agung hoped that the government, tourism operators and the people should continue to increase the quality of their services.

"This needs to be done because Bali still constitutes the main destination of foreign tourists in Indonesia," he said.

In the meantime, the regional government of Bali province has set itself the target of attracting one million Chinese tourists in 2015, following the implementation of a visa-free visit policy for 45 countries.

"Indonesia received 560 thousand Chinese tourists last year. We hope the figure increases to one million this year," Governor of Bali Made Mangku Pastika said here on Saturday.

He added that there was a great chance for Chinese tourist arrivals in Bali to rise as they constituted the second largest number of foreign tourists that visited the resort island.

After all, Pastika remarked, he had made reciprocal visits to the two Chinese provinces of Yunnan and Hainan.

"We are ready to receive a larger number of Chinese tourists, now that we offer a visa-free visit. However, we still need to improve upon our shortcomings," the governor pointed out.

According to the Central Bureau of Statistics (BPS), the largest number of tourist arrivals in Indonesia in February 2015 was from China.

BPS Chief Suryaman said that China accounted for 18.2 percent, or 144,000, of the 786,700 arrivals of foreign visitors to the country in February.

After China was Malaysia, accounting for 12.43 percent, or 97,800 arrivals, followed by Singapore with 12.39 percent, Australia with 10.43 percent, and Japan with 5.89 percent.

"Most of the Chinese travelers were probably visiting with the intention of expanding their businesses in Indonesia," Suryamin told reporters in Jakarta on Wednesday.

The number rose before the government announced that its visa-free visit policy for 30 more countries, including China, will come into effect in April, he noted.

The number of tourists from China is expected to increase with this facility for tourists from 30 more countries, he affirmed.

The government added these 30 countries to the list of 15 other countries that already enjoyed the visa-free visit policy.

The policy is expected to double the number of arrivals of foreign tourists to 20 million by the end of the present governments term in 2019.

Furthermore, a surge in tourist arrivals in February was recorded in a number of entrance gates. The highest increases were recorded at Sam Ratulangi Airport of North Sulawesi, up by 212.70 percent, at Jakartas Tanjung Priok Seaport, up by 43.46 percent, and at Tanjung Pinang Seaport of Riau Islands, up by 30.84 percent.

Declines were recorded in 10 other entrance gates, such as the airports of Sepinggan of East Kalimantan, down by 35.08 percent, and in Minangkabau of West Sumatra, down by 0.45 percent.
(Uu.A014)

Australian tourist arrivals in Bali increasing - ANTARA News

 

[Nike]

View attachment 212365

**** off, if this if that, by 2025 your country still will be a sinkhole of ASEAN

 

[Nike]

Free Trade Agreements for Indonesia?
Bilateral and regional agreements are not ideal, but they do offer some compelling benefits.

By Lili Yan Ing
April 06, 2015
0
0
0
0
0 Shares
0 Comments
One might argue that regional integration can get in the way of international integration. However, no one can debate that if the member countries are geographically proximate and natural trading partners, then a union would be trade creating.

Indonesia is one country that has been quite active in concluding free trade agreements (FTAs). By July 2012, Indonesia had eight FTAs in effect, six regional and two bilateral (specifically, the ASEAN free trade area, AFTA; ASEAN-Australia and New Zealand, ASEAN-China, ASEAN-India, ASEAN-Japan and ASEAN-Korea FTAs, Indonesia-Japan EPA and Indonesia-Pakistan FTA). These agreements mean that Indonesia has FTAs with trading partners that account for of 67 percent of its total trade. For context, Chile, Peru, and Mexico have FTA coverage ratios of more than 80 percent, while Canada, Singapore and New Zealand are at more than 50 percent.

Asian economies in recent years have been driven by China’s impressive growth, especially since its ascension to the World Trade Organization in December 2001, and by Japan’s focus on Asia. Still, a number of countries with relatively low trade integration question their positions in the Asian factory and the benefits of FTAs for their economies. And it is true that the use of existing ASEAN FTAs has been limited, and predominately by large firms. An economy with relatively low trade integration like Indonesia may only enjoy a modest gain from free trade agreements.

For small economies, though, there at least two positive outcomes to be derived from regional trade agreements. The first is an expansion in investment. While the direct impact on trade might be debatable in the beginning, rising investment usually follows. As an illustration, after the ASEAN-Korea FTA and ASEAN-Japan Comprehensive Economic Partnership took effect in 2010, foreign direct investment (FDI) from Korea into ASEAN roughly doubled between 2011 and 2013, from $1.7 billion to #3.5 billion, while the Japanese figure increased from $9.7 billion to $22.9 billion over the same period. In planning their expansion, American businesses tend to see ASEAN as a single entity rather than as 10 separate countries, and 81 percent of 588 senior U.S. executives operating in Southeast Asia claim that ASEAN integration helped their expansion in the region (AmCham Business Outlook Survey for Southeast Asia, 2015).

Second, regional agreements can drive unilateral domestic reforms. New Zealand is a good example of how a small country has transformed from a highly protected market into one of the most open through parallel unilateral and regional tracks that headed towards a multilateral track (the WTO, 1996). Preferential tariff reductions for Australia did not lead to the collapse of the manufacturing sector in New Zealand, and this encouraged the country to become more open in most tariff lines, not only towards Australia but to the rest of the world. In the case of Indonesia, InaTrade (an online system for obtaining trade-related licenses) and the negative investment list are two products of domestic reforms driven mainly by regional commitments.

The bottom line is that Indonesia and its ASEAN peers should advance regional integration as a vehicle for multilateral integration; and to keep regional integration viable, they should adopt an open regionalism (i.e. regional economic integration that does not discriminate against outside countries).

While I am not a big fan of bilateral and regional agreements, they can be an elegant sweetener to attract investments as well as a sophisticated driving force for unilateral domestic reforms, particularly when multilateral negotiations have stalled.

Still, it should be kept in mind that globalization in any form will inevitably be submissive to national domestic objectives, not the other way around.

Lili Yan Ing is an economist for Economics Research Institute for ASEAN and East Asia (ERIA) and a lecturer at University of Indonesia. The views expressed are her own.

Free Trade Agreements for Indonesia? | The Diplomat

Indonesian fishermen to celebrate Fisherman`s Day through various activities
Senin, 6 April 2015 17:04 WIB | 414 Views

Photo document of fishermen at Samudera Port, Lampulo, Banda Aceh, Aceh. (ANTARA/Ampelsa)
Jakarta (ANTARA News) - Indonesian traditional fishermen across the country will hold various activities to celebrate National Fishermans Day 2015 on Monday.

They will hold the activities in various regions focusing on how to improve the welfare of fishermen who are still suffering in poverty.

"Fishermen will simultaneously observe the National Fishermans Day 2015 across the country such as in Banda Aceh, Buton, Manado, Semarang and Jakarta," Secretary General of the Peoples Coalition For Fishery Justice (Kiara) Abdul Halim said here on Monday.

He said that the celebration of the fishermans day was intended to push the government to protect and improve the welfare of Indonesian fishermen.

Thus, he said, the theme of the event reads: "Protect and Improve the Welfare of Indonesian Fishermen."

He reminded that the government of Jako Widodo - Jusuf Kalla had announced its maritime axis development concept and since then, the marine and and fisheries issues had always attracted the attention of the people.

The people continue to pay attention to measures that the government has taken since early this year such as trawl use ban, foreign boat sinking and cases involving fishing ships crew members.

"But with the current conditions of Indonesias marine and maritime, have the Indonesian fishermans welfare been improved?" he questioned.

He said the fact in the field was that fishermen, fish breeders and coastal preservation workers still lacked protection and still lived in poverty.

Halim is of the view that fishermans condition was even worsened by fuel oil and basic necessities price increases.

Earlier, the Indonesian Traditional Fishermen Union (KNTI) has expressed hope that the government would optimize its efforts to empower fishermen in various regions in Indonesia so that they can become the master at their own homes.

"Fishermen should become the master in their own waters," KNTI Chairman M Riza Damanik said in Jakarta on Sunday.

For this purpose, KNTI called on the organizations of fishermen and cultured fish farmers to continue increasing their participation in development of the Indonesian marine resources.

"Building the capacity of fishermen in the fishing sector is the key to success in fighting illegal fishing in the country," he said.

He said that without the participation of fishermen, efforts to fight illegal fishing would only end in pragmatic works and wasting of funds such as what had happened in the previous governments.
(Uu.A014/F001)

Indonesian fishermen to celebrate Fisherman`s Day through various activities - ANTARA News

 

[Dakila]

**** off, if this if that, by 2025 your country still will be a sinkhole of ASEAN

I posted in a thread and I have removed it already. Now if your still offended. I suggest you to clean your BAD mouth! you whore$hit