What's new

Indonesia Economy Forum

Palembang LRT project to be completed on time: Minister Jonan
Sabtu, 9 Januari 2016 16:08 WIB | 397 Views
20151221antarafoto-pembangunan-tiang-lrt-201215-lmo-5.jpg

Workers of Light Rail Transit (LRT) project in the Sultan Mahmud Airport Badaruddin (SMB) II, Palembang, South Sumatra, on December 20, 2015. (ANTARA/Nova Wahyudi)

Palembang (ANTARA News) - Transport minister Ignasius Jonan assured here Saturday that the Palembang Light Railway Transit (LRT) development project now in progress would be completed on time as no obstacles have been found.

So, before the Asian Games 2018, the LRT will be open for use, he said after meeting with South Sumatra Governor Alex Noerdin at the Sultan Mahmud Badaruddin II airport here.

Based on the report, construction of the light railway lines has progressed as expected, and this showed that the program would be finished as planned, he said.

He emphasized the importance of coordination because development projects are very much connected with public facilities.

Many public facilities could be affected due to the project such as gas pipes, the electricity network as well as clean water supply lines, and so coordination must be prioritized, he said.

After the meeting, the minister and entourage inspected the development of LRT project site in front of the airport. On the occasion the minister held a dialog with Waskita the contractor, regarding the progress of the project before heading to Kertapati railway station to continue his journey to Prabumulih.

South Sumatra and Jakarta will co-host the Asian Games in 2018.

(Reporting by Ujang Idrus/Uu.H-YH/INE/KR-BSR/A014)

Palembang LRT project to be completed on time: Minister Jonan - ANTARA News
 
.
RI raises investment target to rp594 trillion for 2016
Sabtu, 9 Januari 2016 10:36 WIB | 513 Views

Jakarta (ANTARA News) - The Investment Coordinating Board (BKPM) has set a target of realized investment for 2016 at Rp694.8 trillion, up by 14.48 percent from the target of Rp519.5 trillion for 2015.

"The target of realized investment for 2016 at Rp694.8 trillion comprises foreign investment at Rp386.4 trillion and domestic investment at Rp208.4 trillion," BKPM Chief Franky Sibarani said in a press conference on "Investment projection 2016" here on Friday.

The target of foreign and domestic investment for 2016 rose 12.6 percent and 18.4 percent respectively as compared with the target for the previous year, he said.

Investment in the manufacturing sector is projected to increase by 17.2 percent to Rp313.6 trillion from the 2015 target. By September 2015, the realized investment in the sector reached Rp172.1 trillion.

"This is a great challenge. By September 2015 it was only that much. We predict it might have reached Rp230 trillion by the end of 2015. This means that it must increase by 50 percent in 2016," he said.

The agency predicted investment in extraction or raw material sector will increase to Rp97.6 trillion this year, a 12.3 percent increase compared with the target for 2015.

Investment in the infrastructure, trade and service sectors is expected to increase by 10.4 percent to Rp183.7 trillion from the 2015 target. By September 2015, realized investment in these sectors stood at Rp155.9 trillion.

"Our prediction is that it will have reached Rp180 trillion or more by the end of 2015. This implies that these sectors need the governments support and the BKPMs hard work to facilitate how investment in the manufacturing sector will increase," he said.

(T.S012/B/KR-BSR/O001)

RI raises investment target to rp594 trillion for 2016 - ANTARA News
 
.
Jakarta Capital Special region planning to made another 19 water reservoir

20160110antarafoto-rencana-pembangu.jpg



Rencana Pembangunan 19 Waduk DKI JakartaWarga melintasi kawasan Waduk Kebon Melati, Jakarta, Jumat (8/1). Pemerintah Provinsi DKI Jakarta merencanakan ingin membangun 19 waduk baru pada tahun ini di lima wilayah yang ada di DKI Jakarta. (ANTARA FOTO/Rivan Awal Lingga)

20160110antarafoto-kawasan-hijau-ja.jpg



Kawasan Hijau JakartaSuasana kawasan hijau di sekitar Monumen Nasional, Jumat (8/1). Saat ini jumlah kawasan hijau di Jakarta baru sekitar 9,6 persen dari target 30 persen pada 2030 mendatang hingga Pemprov DKI Jakarta bertekad menambah jumlah kawasan hijau di lima wilayah, minimal seluas Monas. (ANTARA FOTO/Muhammad Adimaja)
 
.
Brebes batik - a tale of inland beauty from java`s northern coast
Sabtu, 9 Januari 2016 15:58 WIB | 712 Views
Pewarta: Gusti Nur Cahyani
20140819Karnaval-Batik-Brebes-180814-ol-4.jpg

Photo document of Brebes Batik carnival in Brebes, Central Java. (ANTARA/Oky Lukmansyah)

Jakarta (ANTARA News) - "It must be somewhere around here. Give me some time (to find it)...," Tuti Wirjadigjaja, a 59-year-old housewife, said as she opened the door of a two-meter tall cabinet in her room.

Inside the cabinet were all her precious batiks -- the Indonesian traditional clothes painted by using wax-resistant dyeing technique, including two pieces of Brebes Batik that she had bought a few years ago.

The United Nations Educational, Scientific and Cultural Organization (UNESCO), in October 2009, inscribed Indonesian batik as a Masterpiece of Oral and Intangible Heritage of Humanity.

Most people associate Brebes, a district in the northwestern part of Central Java Province, with many things, from salted duck egg, shallot, blengong satay to peuyeum ketan, but not batik. Not many people know that Brebes has its own batik-design.

"I bought these from a boutique in Pekalongan which has a corner specially selling batiks from Brebes and other districts in Central Java," she explained.

Finally, after rummaging extensively for almost half an hour, she found one of them.

"They call it Salem Batik instead of Brebes Batik. This is gringsing design, a very old Javanese pattern on black and white palette that is not common for coastal batik," she said while showing her black and white Brebes Batik.

Black and white palette is a traditional color scheme for Jogja Batik. The coastal batik artisans usually tend to use more vibrant colors in their works.

"I expected yellow, blue and pink for coastal batik but when I had spoken to the artist back then, she had said this was the conservative Salem-design," she explained.

She refuses to be called a batik collector but keeps more than 150 batiks in the form of "kain panjang" (literally means "long fabric") in her closet. Traditionally, batik is sold in 2 1/4 meter lengths used for "kain panjang" which is part of Indonesian traditional dress.

In her own words, she is an accidental-batik collector. "I am not a collector. Although it looks like it, it is not intentional," she explained.

Batik is a part of "kebaya" dress, a traditional gown for Indonesian women. And as a Javanese wife, Tuti should wear kebaya to many formal events as she accompanies her husband, a retired government officer.

"A collector should know the story about each design. The only reason I buy batiks is because they look pretty, not because of their history, price or uniqueness," she said with a smile.

Tuti got her first batik around 40 years ago from her mother in-law. "It was a wedding gift. It was a set of old Javanese-Batik."

If Tuti refused to be called a collector, C. Kusumanintya, 30, an online batik reseller, said she wants to be someone who helps in the preservation of the old batik-designs.

"It would be nice to have every piece of Indonesian batik-design but there are thousands. So I mostly collect all those old-designs that catch my attention," she said.

Having some 50 pieces of batik, she said she had never heard of Brebes Batik before. "However, batik is very popular currently. Almost every region in this country has its own batik now. I even have a batik from Papua and Flores although these are relatively new. So I am not surprised if Brebes also has its own batik. Most regions in Java did follow the old tradition in batik-making."

Kusumanintya is right. Although it is not as well known as the batik from Jogja, Solo, Pekalongan or Cirebon, the batik from Brebes actually has a long history dating back to the 19th century.

Brebes Batik is made in Bentar and Bertarsari villages in Salem District, so these are also known as Salem Batik. Nobody is sure of when exactly the Brebes Batik was created but the batik-making skills have developed particularly well over tens of years in Bentar and Bentarsari villages.

Various sources, including the local governments website, mentioned at least three oral tales about the Bentar and Bentarsari villagers skills in batik-making.

Most local artisans believe that a daughter of a high ranking officer in Pekalongan, who had traveled to Bentar village, brought along the batik-making tradition when she married a local man in the 19th century.

As a result, the traditional Brebes Batik has indigenous patterns that are similar to Pekalongans patterns, such as "kopi pecah", "manggar", "merak", "gringsing" and "ukel kangkung."

According to the Brebes Industrial and Trade Office, those villages have more than 200 batik artisans now.

There is another story as per which the traders had brought batik to Brebes. The traders from Pekalongan had migrated to Salem District during a revolution back in the 19th century, and settled there since.

Many also believe that the journey of Brebes District Head Raden Arya Tjandranegara in November 1882 had led to the development and promotion of the batik-making skills among the local community.

Distinguished pattern

The origin of batik can easily be determined through its design as each region has its own traditional patterns. Some of the designs, mainly the royal batiks, have symbolic meanings.

In general, there are two types of batikpatterns --- inland batik and coastal batik. However, the indigenous Brebes Batik designs belong to inland batiks although Brebes is a coastal area.

This fact alone had prompted the assumption that the fleeing royals from Jogja and Solo might have brought batik-making skills to not only Brebes District but also several other regions in Central Java, such as Banyumas and Tegal, which also have a long tradition of batik-making.

Brebes Batik designs are dominated by the earthy-colors, such as black, white and "sogan" (brown-yellow color), similar to Yogyakarta Batik. However, its designs previously had been influenced by Pekalongan Batik, mainly the "buketan" (flower-bouquets) pattern.

However, at the turn of the 21st century, when batik had become a fashion item and could be seen on shirts, dresses, footwears and bags, Brebes Batik artisans developed several new designs which were inspired by the living culture of the Brebes people, such as salted duck egg and shallot patterns.

The new designs complimented the three classic designs, namely "kopi pecah", "manggar" and "gringsing."

A Batik artisan organization from Bantul, Jogja, the Sekar Arum Giriloyo on its website explained the meaning of those designs.

The "kopi pecah" (broken coffee grains) design, which features the shape of intersecting coffee grains bouquets, emphasizes the balance of physical and spiritual worlds.

While the "manggar" design, which is inspired by coconut flower (manggar in Javanese), will bless the wearer with the power to share kindness.

The "Gringsing" design, which features a circles pattern with a dot in the center, symbolizes balance, prosperity and fertility.

Although batik is also found in other countries, for centuries Indonesia, mainly Java, has been best known for batik-making art.

For centuries, Batik has been inseparable from the Indonesian culture.

Nowadays, men wear batik to formal events instead of a suit and a tie. President Joko Widodo, who grew up in Solo, once even claimed that he owned more than 200 batik shirts while the First Lady, Iriana Joko Widodo, actively introduced batiks to her counter parts at every opportunity.

In line with the First Ladys appeal to promote batik, the Brebes administration successfully held a Brebes Batik Exhibition in Singapore in September 2015 in an effort to boost the popularity of the local batiks, the Brebes government said on its official website.

Thanks to its uniqueness, it is about time the Brebes Batik flourished and found its place among the distinguished coastal batiks arts in this country.
(T. G003/F001/INE/KR-BSR/A014)

Brebes batik - a tale of inland beauty from java`s northern coast - ANTARA News
 
.
$783m Micro-Hydro Projects on Hold as PLN Refuses to Buy Power

Jakarta.
State-utility firm Perusahaan Listrik Negara is again bumping heads with the government in the course of Indonesia's renewable energy development, as the monopoly holds back Rp 11 trillion ($783 million) in micro-hydro power projects.

The utility is yet to agree to purchasing deals for 114 micro hydro power project proposals — which each typically produce less than 100 kilowatts of power from water steam — across Indonesia from Sept. 2014 to Dec. 2015, putting all projects on hold, director general of new and renewable energy at the Energy and Mineral Resources Ministry Rida Mulyana said on Friday.

"This is not good. We have been promoting everywhere to find investors, but now PLN refuses to buy the power," Rida said, adding that investors may decide to move projects to neighboring Myanmar and Vietnam.

The state electricity firm, which holds a monopoly of power distribution across the archipelago, has faced pressure from both government agencies and the private sector demanding cuts to energy prices.

Renewable energy costs have risen steadily in recent years relative to gas and coal, which are now readily available in the global market at record low prices.

Meanwhile, PLN is hesitant to ensure no further losses, as its beefing up capital in order to achieve its target to connect all Indonesians to power grids by 2019.

"If that is their concern, we will come up an additional subsidy," Rida said.

He added that while some of the hydro-projects were more expensive than PLN's base production costs — but aggregated the 114 projects would save the company Rp 169 billion ($12 million) a year.

Earlier on Friday, PLN capitulated to government pressure and agreed to purchase steam from Pertamina Geothermal Energy at a higher price, despite arguing that it may reduce its ability to provide cheap electricity to customers.

$783m Micro-Hydro Projects on Hold as PLN Refuses to Buy Power | Jakarta Globe

emang seharusnya jangan dibikin Monopoli listrik itu, kalau perlu di liberalisasi utilitas Listrik nasional dan undang perusahaan asing yang lebih kompetitif untuk main di sektor ini...

Google Selects Seven Indonesian Startups for Launchpad Program

Jakarta. Tech giant Google is taking seven Indonesian startups to Silicon Valley for its newest accelerator program later this month in another reflection of growing interest among global tech players in Southeast Asia's largest economy.

The Mountainview, California-based company announced its latest Launchpad Accelerator program last month, unraveling a six-month course that will offer mentorship, training, support and equity-free funding to mobile startups from India, Brazil and Indonesia.

Participants will first receive training at Google headquarter, all expenses paid, according to Google Developers' official website.


"From health care and transportation to agribusiness and dating, Indonesian developers are creating solutions for an underserved market that holds massive potential given its huge population, young demographic and a geography that stretches more than 4,000 kilometers over 17,000 islands," Google said.

"The potential of Southeast Asia’s largest nation, with a per capita [gross domestic product] of around $3,500, has caught the attention of numerous major investors, and the momentum behind the startup scene is growing at an unprecedented rate."

Some of the homegrown startups that will travel to California between Jan. 17 - 31 for the first step of the program include personal budgeting app Jojonomics, dating app Setipe, online learning site HarukaEdu and fishery app eFishery. Kakatu, a parental control app, news app Kurio and Kerjabilitas, an online job listing for the disabled, are also included in the group.

Setipe founder Razi Thalib said the opportunity will allow him to further develop his skills in design, technology and marketing.

"We [at Setipe] have to admit that Indonesians still lack those three factors when compared to other countries," he said on Saturday. "This is a good opportunity because we will receive mentor-ship from experts at Google."

The move was welcomed by Indonesia's Communications and Information Technology Minister Rudiantara, who recently cited that Indonesia would need 200 technopreneurs annually in order to expand the domestic tech ecosystem.


Google Selects Seven Indonesian Startups for Launchpad Program | Jakarta Globe
 
.
VP attends symbolic handover of Indonesian hospital for Palestinians
Minggu, 10 Januari 2016 12:54 WIB | 522 Views

Jakarta (ANTARA News) - Vice President Jusuf Kalla attended a function marking the symbolic handover of Indonesian Hospital by the Medical Emergency Rescue Committee (MER-C) to the Palestinians at the Ismail Marzuki Park here on Saturday night.

"It seems that the question of Palestine had been neglected due to myriad problems in the Middle East. Therefore, the government highly praises MER-C for taking the initiative ahead of the government to take special action and give alms by building a hospital in Gaza, Palestine," the vice president said.

Although the construction of the hospital was not entirely funded by the government, it reflects Indonesias solidarity with the Palestinians, particularly those living in conflict-plagued Gaza, he said.

He expressed the hope that the construction of the hospital, which he described as a form of Indonesias support for Palestinian independence, would result in relations between Indonesia and Palestine becoming increasingly closer.

"Good friendship is always remembered if we help (others) in their difficult time. Of course, if our Muslim brothers are facing problems, we must help them," he said.

Also present at the function were Foreign Minister Retno Marsudi, Education and Culture Minister Anies Baswedan, Aceh Deputy Governor Muzakir Manaf, Palestinian Health Minister Hani Abdeen, and Palestinian Ambassador to Indonesia Fariz Mehdawi.

The hospital began serving the Palestinians after it was inaugurated on December 27 last year.

The construction of the hospital was fully funded by donations received from the Indonesian community through various charity programs for Palestinians.(*)

VP attends symbolic handover of Indonesian hospital for Palestinians - ANTARA News
 
.
National

Trade Ministry to prioritize
Middle East market

Ayomi Amindoni, thejakartapost.com, Jakarta | National | Sun, January 10 2016, 5:08 PM


Presiden_Jokowidodo.img_assist_custom-639x426.img_assist_custom-638x425.jpg

Middle east market: President Joko “Jokowi” Widodo visits Middle Eastern countries namely Saudi Arabia, the United Arab Emirates (UAE) and Qatar. Jokowi stated that the trip, began on Sept. 11, aimed to strengthen bilateral cooperation with a focus on the economy, energy sustainability, protection for Indonesian citizens and strategic industries. (Antara)
- See more at: Trade Ministry to prioritize Middle East market | The Jakarta Post

Amid slow economic growth in Indonesia’s main export markets, the Trade Ministry has announced plans to specifically approach alternative markets, especially in the Middle East, with increased promotion events and improved export services.

The Trade Ministry’s director general for national export development, Nus Nuzulia Ishak, said in 2016 the focus in the Middle East would be on countries that President Joko “Jokowo” Widodo had visited, such as Kuwait and Saudi Arabia.

"We will expand exports to Middle East countries by making Dubai our trade hub,” she told TheJakartaPost.com on Saturday, admitting, however, that “the economic situation in Saudi Arabia is quite [difficult], as they have lost 70 percent of their oil revenue."

Products that could be shipped to the new destinations, Nus said, included automotive products, crude palm oil and textile goods.

According to data from the Central Statistics Agency (BPS), the cumulative value of Indonesian exports from January to November 2015 reached US$138.42 billion, down 14 percent from the same period a year earlier.

Exports to China fell by 20.5 percent to $12 billion, while those to Japan were down 10.5 percent at $11.9 billion. This allowed the US, to which Indonesian exports fell by just 2.8 percent to $13 billion, overtake China and Japan to become Indonesia’s largest export market in the first eleven months of last year.

“The economic slowdown in China has reduced demand for our products," she said, adding that Europe and the US were likely to be the main export destinations for Indonesia in 2016.

According to her, CPO, footwear, textiles and textile products, chemical products, furniture and processed woods were among the main products exported to these destinations.

The government also aims to boost the exports of value-added products, such as jewelry, and products based on cocoa and spices.

"For example, we now export spices in the form of seasoning oil. Five years ago, we had an excessive amount of [unprocessed] cocoa beans in our exports, and now we export a bigger amount of cocoa powder, bringing the processed-cocoa export to 80 percent [of the total cocoa export]," she explained.

According to BPS data, 2015 jewelry exports reached $5.2 billion in the January-to-November period, rising by 25.5 percent from to the same period in 2014. Footwear exports reached $4.1 billion, up 10.5 percent. (ags)

- See more at: Trade Ministry to prioritize Middle East market | The Jakarta Post
 
.
Business

Indonesia needs new markets:
Economists

Anton Hermansyah, thejakartapost.com, Jakarta | Business | Sun, January 10 2016, 2:25 PM


jp08_Spicy.img_assist_custom-640x427.jpg

Spicy affair: Indian Ambassador to Indonesia Gurjit Singh (center) poses with a number of writers of a book entitled Masala Bumbu: Enhancing the India-Indonesia Partnership, including (from left to right) former deputy foreign minister Dino Patti Djalal, businesswoman Shinta Kamdani, pastry chief Farah Quinn and former trade minister Gita Wirjawan, at the book’s launch in August last year. (JP/DON)

Amid sluggish economic growth in China, a key trading partner of Indonesia, economists have again warned of the importance of finding new markets to offset the risk of trade decline with China.

Institute for Development of Economics and Finance (INDEF) economist Berly Martawardaya said that there were potential alternative markets that could be developed amid China’s slowdown, namely India, South Africa, South Korea, and Eastern European countries.

"Trade with India must be developed, not only limited to commodities. India is now one of the biggest markets for our coal, but we need to expand to other sectors. We have exported automotive goods to South Africa, but besides that, more non-oil and gas markets could be developed," Berly told the thejakartapost.com on Jan 8.

Bank Central Asia (BCA) chief economist David Sumual said that the new markets should become Indonesia's markets for value-added goods such as electronics.

"Africa and Latin American countries are potential markets for electronics. Indonesia must invite technologically advanced countries like South Korea and Taiwan to invest here and then export the products to Africa," David said.

On the other hand, he continued, the government should consider joining the Trans Pacific Partnership (TPP), as doing so would allow Indonesia to develop trade with Latin America.

Indonesian Ambassador to India Rizali Wilmar Indrakesuma said that India was a potential market for pharmaceutical products and food. India imports vaccines from Indonesia, and could potentially help Indonesia secure affordable medicine for the national health coverage scheme. India is the biggest generic medicine producer in the world.

"Aside from rice, we can also import meat from India, where water buffalo is bred well. Some Indonesian consumer good brands have entered India, such as Indomie and Mayora," Rizali said.

However, he acknowledged that problems in market expansion also lied in practice and that the government and businesspeople needed to work in tandem.

Unfortunately, many businesspeople are battling a sluggish economy. Adaro Energy president director Garibaldi Thohir said that the company was focusing on efficiency and domestic needs, rather than on expanding its export market.

"How can we expand when the global coal price is weak? Right now we are focusing on using our cash flow to invest in the local market such as through developing [coal-based] power plants," Garibaldi said. (ags)

- See more at: Indonesia needs new markets: Economists | The Jakarta Post
 
.
Business

World Bank slashes its
Indonesian growth forecast
to 5.3 percent in 2016

Ayomi Amindoni, thejakartapost.com, Jakarta | Business | Sat, January 09 2016, 6:06 PM


going-for-growthssss.jpg

Going for growth: President Joko “Jokowi” Widodo (second right) chairs a limited Cabinet meeting to discuss economic issues at the Presidential Office in Jakarta on Dec. 23, 2015. Vice President Jusuf Kalla (right) and (from left to right) head of the Financial Services Authority (OJK) board of commissioners Muliaman D. Hadad, Finance Minister Bambang Brodjonegoro as well as Bank Indonesia Governor Agus Martowardojo also attended the meeting. (Antara/Widodo S. Jusuf)
- See more at: World Bank slashes its Indonesian growth forecast to 5.3 percent in 2016 | The Jakarta Post



The World Bank has warned that a continuing economic slowdown in emerging markets will cause substantial spillovers into developing economies and eventually hold back the recovery in advanced economies.

As a result, the bank cut its forecast for global economic growth in 2016 to 2.9 percent from its initial projection of 3.3 percent, but the growth projection is still better than global growth in 2015, which was at 2.4 percent.

The economic growth projection for Indonesia was also slashed to 5.3 percent from an initial projection of 5.5 percent.

Bank Indonesia Governor Agus Martowardojo said the central bank would remain cautious over the development of the global economy, in particular the Chinese economy. Recently, China's capital market experienced tremors and even suspended trading twice in the past week.

Besides, China's move to devalue its currency in August created a risk-off period, when all funds tend to flee to safe assets, according to the BI chief. "The global economy and the situation in China needs to be continuously watched. This is not the end; just the beginning," said Agus in Jakarta on Friday.

In addition, the central bank is also watching the downward trend of crude oil prices and the possibility of another increase in the US Federal Reserve funds rate. "These are the things that we need to continuously follow," he told journalists.

Agus explained that despite the pressure, the rupiah depreciation in 2015 was in the range of 11 percent, better than the Brazilian currency, which depreciated 49 percent, Turkey's, which dropped 33 percent, and that of other countries that depreciated more than 20 percent.

"But Indonesia can maintain above 11 percent. What we need to watch is the rupiah's volatility. If we can maintain its stability, we will be able to create a good business climate and boost our economy," he said.

Agus added that the foreign exchange reserves were enough to provide resistance against external factors and maintain the sustainability of economic growth in 2016.

"We will support the government’s efforts to achieve 5.2 to 5.6 percent in growth. We also welcome the World Bank's projection that the Indonesian economy will grow 5.3 percent, as it is in line with the government’s target in the state budget," he said.

Indonesia’s reserves recorded a US$5 billion month-to-month increase in December 2015 to $105.9 billion. The increased reserves came from the government's foreign debt withdrawal, oil and gas exports and the global bonds issued to cover foreign exchange needs.

Acceleration of budget spending, according to Agus, will have a major impact on economic growth in 2016. "We certainly expect the private sector's role could be better. On the other hand, we know the world commodity prices are still depressed and we appreciate if there are initiatives to search for new export markets and to export more value-added product," he said.

According to the World Bank's January 2016 Global Economic Prospects, a modest recovery in advanced economies continues this year and activity is stable among major commodity exporters.

According to the report, falling commodity prices, flagging trade and capital flows and episodes of financial volatility sapped economic activity and made global economic growth was less than expected in 2015, while firmer growth in 2016 will depend on the stabilization of commodity prices and China's gradual transition towards a more consumption-based growth model.

However, growth is projected to slow further in China, while Russia and Brazil are expected to remain in recession in 2016. Meanwhile, developing economies are forecast to expand 4.8 percent in 2016, less than expected earlier, but up from the 4.3 percent growth in 2015. (bbn)

- See more at: World Bank slashes its Indonesian growth forecast to 5.3 percent in 2016 | The Jakarta Post
 
.
20160110016.jpg



Pemasangan Gantry Crane MRTAlat berat gantry crane terpasang dalam Proyek pembangunan Mass Rapid Transit (MRT) di jalan Raya Fatmawati, Jakarta, Sabtu (9/1). PT Mass Rapid Transportation Jakarta optimisits proyek MRT akan bisa diselesaikan pada Agustus 2018. ANTARA FOTO/Reno Esnir/aww/16.


20160110015.jpg



Pemasangan Gantry Crane MRTPekerja berada di atas alat berat gantry crane yang berfungsi sebagai pengangkut box girder untuk jalur layang untuk pemasangan stasiun (MRT) di jalan Raya Fatmawati, Jakarta, Sabtu (9/1). PT Mass Rapid Transportation Jakarta optimisits proyek MRT akan bisa diselesaikan pada Agustus 2018. ANTARA FOTO/Reno Esnir/aww/16.

20160110033.jpg



Menhub Tinjau Proyek LRT PalembangMenteri Perhubungan Ignasius Jonan meninjau pembangunan jalur ganda (double track) kereta api Prabumulih - Palembang di Palembang, Sumsel, Sabtu (9/1). Pembangunan double track dari Prabumulih ke Stasiun Kertapati Palembang telah selesai sepanjang 50 km dari total 78 km dan ditargetkan akan rampung dalan waktu tiga bulan ke depan. ANTARA FOTO/Nova Wahyudi/kye/16.


20160110032.jpg



Menhub Tinjau Proyek LRT PalembangMenteri Perhubungan RI Ignasius Jonan (tengah) bersama rombongan meninjau pembangunan jalur ganda (double track) kereta api Prabumulih - Palembang di Palembang, Sumsel, Sabtu (9/1). Pembangunan double track dari Prabumulih ke Stasiun Kertapati Palembang telah selesai sepanjang 50 km dari total 78 km dan ditargetkan akan rampung dalan waktu tiga bulan ke depan. ANTARA FOTO/Nova Wahyudi/kye/16.


20160110031.jpg



Menhub Tinjau Proyek LRT PalembangMenteri Perhubungan Ignasius Jonan (ketiga kanan) bersama rombongan meninjau pembangunan jalur kereta api ringan atau Light Rail Transit (LRT) di kawasan Bandara Sultan Mahmud Baddarudin (SMB) II Palembang, Sumsel, Sabtu (9/1). Menhub mengharapkan proyek pembangunan LRT sepanjang 24 km dari Bandara SMB II sampai ke kawasan Jakabaring tersebut selesai sesuai target yang telah ditetapkan agar dapat mendukung pelaksanaan Asian Games 2018. ANTARA FOTO/Nova Wahyudi/kye/16.

20160110030.jpg



Jalur Ganda KA Bandara KualanamuKereta melaju di salah satu lokasi proyek pembangunan jalur ganda kereta api di kawasan Bandar Khalipah, Kabupaten Deli Serdang, Sumatera Utara, Sabtu (9/1). Pembangunan jalur ganda (double track) kereta api sepanjang 28,8 km dari Medan Araskabu hingga Bandara Kualanamu itu ditargetkan selesai pada Juli 2016. ANTARA FOTO/Septianda Perdana/kye/16

BKPM Targets 15% Increase in Investment to $42.7b

Jakarta.
The Indonesian government aims to boost foreign and local investment to Rp 595 trillion ($42.7 billion) this year, with a special focus on manufacturing.

The target represents a 15 percent increase from the 2016 mark, according to Franky Sibarani, the head of the Investment Coordinating Board, or BKPM.

“The big task this year will be to increase the realization of [investment in] the industrial and manufacturing sectors,” he said in Jakarta on Friday.

Franky said he expected investment in manufacturing to grow by 17 percent to Rp 313 trillion this year, and in infrastructure, services and trade to rise by 10 percent to Rp 183.7 trillion. The BKPM is targeting a 12 percent rise in investment in the raw resources industry to Rp 97.6 trillion.

Franky said his office would continue its efforts to streamline the investment process and increase its role as a facilitator between the government and the private sector on issues such as human resources, in a bid to turn Indonesia into a more competitive economy.

Indonesia ranked 109th out of 189 countries in the World Bank’s Ease of Doing Business survey last year, moving up 11 notches thanks to reforms in investment licensing, online tax payments and financing incentives. These include a fast-track licensing service that the BKPM claims bundles eight different permits and processes them in three hours. The service was introduced last month and will be officially inaugurated next week

BKPM Targets 15% Increase in Investment to $42.7b | Jakarta Globe

National

No more Javacentric infrastructure
projects: Jokowi

Ayomi Amindoni, thejakartapost.com, Jakarta | National | Sun, January 10 2016, 8:14 PM


150915_economic_package.img_assist_custom-511x353.jpg

Speed it up!: President Joko “Jokowi” Widodo has said the government will focus its work on agriculture and infrastructure improvements, which have been highlighted in the economic policy package he announced at the State Palace in Jakarta on Sept. 9.(setkab.go.id)

President Joko "Jokowi" Widodo has reiterated his commitment to building infrastructure on the outskirts of developed areas and in villages outside Java, allocating Rp 314 trillion (US$22.5 billion) in 2016 state funds to promote equitable development, especially in remote and border areas.

At a recent Indonesian Democratic Party of Struggle (PDI-P) working meeting in Jakarta, Jokowi readdressed two crucial problems that the government must resolve through non-Javacentric development, namely inequality among regions and wide gaps in the prices of goods.

For example, Premium gasoline in Jakarta is tagged at Rp 7,000 per liter, but in Wamena, Papua, the price can soar to around Rp 60,000 per liter.

"Here [in Jakarta], each sack of cement is priced at Rp 60,000, but in the Papua highlands the price is around Rp 1 million to Rp 2.5 million per sack because of the lack of infrastructure. We must resolve this imbalance," Jokowi said.

The President described the lack of infrastructure in Papua based on his visit to Nduga regency, where roads remain unpaved. "It took four days to travel from Nduga to Wamena," he said, ordering the Public Works and Public Housing Ministry and the Army to surface the roads soon.

"If Nduga is connected by road, prices [of goods] will drop by half," he said, adding that the government not only paid attention to road infrastructure in remote and underdeveloped areas, but also in border areas.

Further, Jokowi explained that infrastructure development such as dams, reservoirs and ports would also increase the competitiveness of national products. Irrigation, he said, was key to food security in the future.

Likewise, he underlined that ports were also crucial to improving competitiveness. "Ports are key because two-thirds of our territory is water," he added.

To boost infrastructure, according to Jokowi, the government would take over projects that had faced delays for years, such as the trans-Sumatra toll road. In April 2015, Jokowi attended the groundbreaking of the 2,700-kilometer toll road that will connect Lampung with Aceh, after a 10-year tender.

Meanwhile, to develop villages, the government has increased the village fund allocation in the state budget from Rp 20.7 trillion in 2015 to Rp 46.98 trillion in 2016.

"I have ordered that large amounts of village funds be used to create as many jobs as possible, and to buy items such as sand and stones so the money will circulate in the villages," Jokowi said. (ags) - See more at: No more Javacentric infrastructure projects: Jokowi | The Jakarta Post



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

Greater Jakarta: Transjakarta
to serve Greater Jakarta

The Jakarta Post, Jakarta | Jakarta | Sat, January 09 2016, 3:37 PM

JAKARTA: In a bid to ease the capital city’s traffic congestion, the Jakarta administration is considering whether to extend Transjakarta bus routes to Greater Jakarta, including Tangerang in Banten, Bekasi and Depok, both in West Java.

Jakarta Governor Basuki “Ahok” Tjahaja Purnama said at City Hall on Friday that the Jakarta administration and the local governments would cooperate to extend the service of Transjakarta buses.

“We will prioritize Tangerang, Bekasi and Depok, “ he said, adding that the city would also consider Bogor and Cianjur, both in West Java.

Ahok said he hoped that commuters who traveled daily from the satellite cities to the capital would leave their private vehicles and opt for Transjakarta.

“Therefore, the fares should be cheaper and the buses should be safer and more comfortable,” he said.

Ahok said at least 3 million private vehicles, both cars and motorcycles, entered the capital city every morning. “We have to decrease that number,” he said.

Ahok added that he also wanted a flat fare of Rp 3,500 (25 US cents) on all Transjakarta and feeder routes.

- See more at: Greater Jakarta: Transjakarta to serve Greater Jakarta | The Jakarta Post
 
. .
Russia to finish building Indonesian railway in 2019


Russian Railways says the construction of a railway on the Indonesian island of Kalimantan will be completed in 2019.

"The project is so beneficial economically that we and the banks involved in its financing feel quite comfortable. All the investment will pay off within six years," said Russian Railways spokesman Denis Muratov.

“Cargo will go by rail to a seaport from the vast areas of the island of Kalimantan, which is the largest in Indonesia and very rich in natural resources and minerals," he added.

Only the Indonesian islands of Java and Sumatra have previously had train services.

According to Muratov, in addition to the commercial benefits, the project will create more than 300,000 construction jobs, and more than 10,000 jobs in related industries. The Russian company will also give 200 scholarships to Indonesian students in 2016 and will increase that number to 350 in the future.

Russian Railways says the project will be eco-friendly.

“We will use … solar electricity and will try to set up coking plants in Indonesia that will increase the calorific capacity of coal so that when burning it will emit less smoke and harmful substances," according to Muratov.

In the future, Russian Railways could take part in other projects to upgrade Indonesia's railway infrastructure. The authorities want four projects covering up to 4,000 kilometers of track, said the spokesman.

Russia to finish building Indonesian railway in 2019 — RT Business
 
.
Lion Eyes Domestic, Pilgrimage Routes with 44 New Aircraft
Lion Group plans to lease 44 additional aircraft this year, anticipating an increase in the country's air travel and an introduction of direct pilgrimage routes to Saudi Arabia, president director Edward Sirait said on Monday. Lion Group will lease in 14 aircraft for its budget namesake Lion Air, 12 wide body Boeing for full service airline Batik Air and 18 ATR for propeller fleet Wings Air, Edward said.

antarafoto-maskapai-indonesia-tidak-aman-060116-fik1-1024x671.jpg

Lion Eyes Domestic, Pilgrimage Routes with 44 New Aircraft | Jakarta Globe



Wika to Double Contracts This Year As Government Spending Increases
State builder Wijaya Karya has ambitiously aimed to double new construction contracts this year to Rp 53.3 trillion ($3.7 billion), on the back of a slew of government projects, including high speed rail. The company booked Rp 25.3 trillion in new projects last year, president director Bintang Perbowo said on Monday. Government projects are expected to contribute a fifth of the company's new contracts for the year, while private sector projects will account for 63 percent. The remaining contracts will come from the company's own property project.

DSC_0669-1024x678.jpg

Wika to Double Contracts This Year As Government Spending Increases | Jakarta Globe
 
.
Budget Crisis in Saudi, the Gov't hope Refinery Investment continues

Saudi Aramco has sold their stake, but so far the investment plan in Indonesia is still unaffected. There has not been any cancelation made by the management of Saudi Aramco.

KATADATA - The government is hoping that the sales of Saudi Aramco’s stake will not affect the investment activities in Indonesia, considering that there are several investment commitments that will be conducted by the Saudi Arabian oil and gas company, starting to build refineries until the sales of fuel.

The Director for Downstream Oil and Gas Business Development of the Energy and Mineral Resources Ministry, Setyorini Tri Hutami, said that until now there has not been a delayed plan of investment or a cancelation made by Saudi Aramco. The Saudi Arabian company had previously stated its interest to invest US$ 24 billion or IDR 336 trillion in Indonesia.

From that amount, US$ 14 billion or IDR 196 trillion will be used to increase the capacities of Pertamina’s refineries in Dumai, Balongan, and Cilacap. The total capacity from the three refineries reaches 700,000 barrels per day (bpd).

The remaining US$ 10 billion or IDR 140 trillion will be invested for the new refinery development in Tuban. The capacity of the refinery would be 300,000 bpd. Saudi is also planning to invest in the selling of fuels, which is the one condition that Saudi Aramco asked to sell the products from the refineries that they invest in.

Even though the firm has stated its interest, in Rini’s opinion, Saudi Aramco can still be shaken and unable to realize the investment. Saudi Aramco must still follow the auction to determine which investors will build the refinery. If Saudi Aramco is considered as unable to conduct the investments due to the shortage of funds, the Saudi Arabian company will not be chosen for the project.

Budget Crisis in Saudi, the Gov't hope Refinery Investment continues :: Katadata News
 
. .

Pakistan Defence Latest Posts

Country Latest Posts

Back
Top Bottom