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Guinea invites Indonesia to invest in agriculture, mining

Jakarta | Thu, August 4 2016 | 06:46 pm


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Foreign Minister Retno Marsudi speaks during a hearing at the House of Representatives in Jakarta recently. (Antara/-)

Guinea has invited Indonesia to invest in its agricultural and mining sectors as part of efforts to further boost ties between the two countries, Indonesian Foreign Minister Retno Marsudi has said.

"Guinea is rich in mineral resources such as bauxite and gold. The President of Guinea has asked Indonesian investors to invest in the two fields [the agricultural and mining sectors]," Retno told reporters after a bilateral meeting between President Joko "Jokowi" Widodo and Guinean President Alpha Condé at the State Palace on Wednesday.

During his visit to Indonesia, Condé also visited a number of Indonesian companies such as those involved in the soy sauce industry, the banking industry and the defense industry, Retno added.

"President Jokowi has encouraged both countries to boost trade in the future,” Retno said. (dmr)

http://www.thejakartapost.com/news/...ndonesia-to-invest-in-agriculture-mining.html
 
Diminta Garap Blok East Natuna, Pertamina: Kami Ambil Minyaknya Dulu
PT Pertamina (Persero) diminta Pemerintah segera melakukan aktivitas di kawasan Blok East Natuna. Selain dikarenakan cadangan gas dan minyaknya yang melimpah, aktivitas yang dilakukan di wilayah ini nantinya dapat menjadi pembuktian eksistensi Indonesia terhadap perairan yang tengah jadi polemik itu.

Natuna Gas & Oil field
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Direktur Utama Pertamina, Dwi Soetjipto, mengatakan pihaknya sudah menyatakan komitmen untuk menggarap blok migas tersebut. Namun dengan kompleksitas pengelolaan gas karbon CO2 di East Natuna, membuat Pertamina harus mengakali tekhnologi sekaligus investasi yang terbilang lebih mahal ketimbang blok-blok lainnya.

"Jalan keluar yang sudah ditetapkan Kementerian ESDM kita mulai dengan minyaknya dulu. Dan memang utilisasi, kita akan segera bergerak ambil minyaknya dulu. Sementara gasnya mungkin akan didiskusikan lagi,"

Give it exploration to PETRONAS .. we have money, technology and experience to manage this field ...
 
Indonesia's Q2 GDP Grows 5.18%, Stronger Than Expected
Indonesia's economy grew a faster-than-expected 5.18 percent in the second quarter from a year earlier, thanks to higher commodity prices and stronger consumption. On Friday, the statistics bureau said Indonesia's gross domestic product expanded 5.18 percent in the second quarter. A Reuters poll forecast 5.00 percent.

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The statistics bureau revised annual growth in the first quarter to 4.91 percent from 4.92 percent.

"Global commodity prices improved particularly in the second quarter, compared to the first," Suryamin, the bureau chief said, citing higher crude oil prices in April-June.

Also, he said second quarter agricultural production was good.

Low global commodity prices have hurt Indonesia for years, denting export earnings, investment, state revenue and people's purchasing power.

In 2015, economic growth slowed for the fifth straight year, reaching 4.8 percent, the weakest pace since the global financial crisis.

Household consumption, relatively resilient throughout the slowdown, gained in the second quarter as people spent more money at the start of the Muslim fasting month, which this year began in June.

Government spending rose too, helping lift growth in the second quarter. But investment remained soft, growing slower on a yearly basis in the second quarter compared to the first.

http://jakartaglobe.beritasatu.com/business/indonesias-q2-gdp-grows-5-18-stronger-expected/
 
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Agreements Worth $900m Signed During 12th WIEF in Jakarta
The 12th World Islamic Economic Forum, which took place in Jakarta this week, helped inked some $900 million worth of agreements and set an attendance record, the organizers said during the closing on Thursday (08/04). Eleven agreements in various sectors, ranging from ports, the halal industry, stock exchanges, industrial estates and startup companies, worth nearly $900 million, were signed during the three-day forum that started on Tuesday.

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The forum – which brought together state leaders, top company executives, academics and scholars, professionals, innovators and investors – was attended by 4,200 people from 73 countries, the WIEF said in a statement.

"During these past three days, the forum has provided a high-level platform for prominent global government leaders, captains of industry, academics, professionals, innovators and investors to explore opportunities for business partnerships in the Muslim World," Indonesia Finance Minister Sri Mulyani Indrawati said in her closing remarks.

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With the theme "Decentralizing Growth, Empowering Future Businesses," the forum sought to explore the crucial role of the way micro, small and medium enterprises drive growth in economies around the world.

"During the three-day engagement, we have witnessed how participants from many parts of the world got to know each other better, shared their brilliant ideas, performed their best creative works," the minister said.

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She added that this has resulted in business agreements exchanged, including the signing of memoranda of understanding by Indonesian corporations in various areas.

The Indonesian government also took advantage of this year's event to launch its national shariah finance architecture master plan.

http://jakartaglobe.beritasatu.com/business/agreements-worth-900m-signed-12th-wief-jakarta/
 
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Indonesia, West African Countries Broker $4.6m in Deals
The Trade Ministry has secured contracts worth $4.6 million in total transactions for pharmaceuticals and paper products in two West African countries, in a bid to develop a market in the region, a senior official said on Thursday (08/04).

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The Indonesian officials — represented by the directorate general for national export development (Ditjen PEN), the Embassy in Abuja, Nigeria, and the Indonesia Trade Promotion Center (ITPC) — embarked on a five-day roadshow beginning July 25 in Nigeria and Ghana. The party met with traders, media officials and banking and financial institutions.

"We secured $2.4 million transactions from Nigeria, while we won $2.2 million worth transaction from Ghana," Ari Satria Ditjen PEN secretary general at the Trade Ministry said in a statement.

Seven companies attended: Phapros, Pajajaran Prima Boga, Sanfood Prima Makmur, Pabrik Kertas Tjiwi Kimia, PIM Pharmaceuticals, Promosia Indonesia and Dua Kelinci.

"We need to seize the big potential market in Nigeria and Ghana as those countries are the biggest non-traditional markets in West Africa," Ari said, adding that Indonesian products could attract more consumers in the region.

Over the last five years, total trade transactions between Indonesia and Nigeria increased 2.41 percent. In 2015, the total of non oil and gas transaction between the two countries reached $449 million, while Indonesian exports to Nigeria recorded $445 million in the same year.

Total trade transactions between Indonesia and Ghana saw a 2.19 percent increase in the last five years, while total trade between the two was recorded at $180.76 million. Indonesian exports to Ghana in 2015 recorded $158.38 million.

http://jakartaglobe.beritasatu.com/business/indonesia-west-african-countries-broker-4-6m-deals/
 
RI passes Federal Aviation Administration standard

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Bandung, W Java (ANTARA News) - Indonesia has passed the safety and security standard of the US-based Federal Aviation Administration (FAA), a Transportation Ministry official said.

The FAA has upgraded Indonesias aviation rating from category 2 to category 1 after completing all phases of assessment, the Director of Airworthiness and Plane Operations of the Directorate General of Air Transportation at the Transportation Ministry, Mohammad Alwi, said here on Thursday.

"After 10 years of efforts, we finally passed it and the US ambassador has congratulated me on it," he said.

Alwi said the FAA will officially present a certificate of aviation rating to Indonesia this week.

"After we have seen four ministers and four director generals being replaced, the efforts were finally successful. I have told Jonan (former Transportation Minister Ignatius Jonan) that I have accomplished my duties for the FAA," he said.

Alwi said the then Transportation Minister had threatened to dismiss him if he failed to improve the countrys aviation rating.

With Indonesia passing the FAA safety and security standard, Indonesian airlines will now be allowed to resume flights to the United States.

One of the Indonesian airlines, which will benefit from the rating, is national flag carrier Garuda Indonesia, he said.

Garuda Indonesia President Director M Arif Wibowo had said earlier that the state airline will open flight routes linking Jakarta to New York and Los Angeles in 2017.(*)
source
 
Finally Malaysia give "special treatment" to Bank Mandiri .. even .. All know that Mandiri can;t qualify to open its branch in Malaysia (in term pf capital and its rating) under our bank regulation

Tak apelah .. Most important ...Saudara Serumpun memang harus distimewakan .. Betol ... Hahahaha
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Bank Mandiri will open its Branch in Malaysia Soon
JAKARTA -- Indonesian state lender Bank Mandiri is moving swiftly to open branch offices in neighboring Malaysia following the recent signing of a deal between the two countries' financial authorities.

Indonesia's Financial Services Authority, known as OJK, and Bank Negara Malaysia, the central bank of Malaysia, on Monday signed an agreement allowing three Indonesian banks to operate branches in Malaysia, and vice versa.

While two Malaysian banks -- CIMB and Malayan Banking -- have already established a significant presence in Indonesia, the same cannot be said for Indonesian banks in Malaysia.

Mandiri, Indonesia's largest lender by assets, is the only Indonesian bank with a presence in the neighboring country, where it maintains a remittance office. The bank has in the past complained about Malaysia's strict regulations on capital requirements, among other regulations for foreign banks wanting to enter the country.

OJK said the new deal is aimed at reducing "inequality of access" in the two markets.

"We will act fast to grab this opportunity," Mandiri's corporate secretary Rohan Hafas told reporters on Wednesday. "We're planning to immediately apply for a full license to operate fully in Malaysia."

Hafas said Mandiri expects to meet Bank Negara Malaysia's capital requirement of 300 million Malaysian ringgit ($74 million) by the end of the year -- 100 million ringgit of which is "to be deposited as soon as possible."

Mandiri is not necessarily eyeing the Malaysian market. Rather, it is targeting more fee-based income from remittance services for Indonesian migrant workers, as well as from trade activities involving Indonesian businesses.

There are nearly 800,000 registered Indonesian workers in Malaysia -- mostly employed as domestic helpers or in plantations. Migrant workers remitted $979 million from Malaysia to Indonesia in the five months to May, according to data from Indonesia's migrant worker placement agency.

"We will only open branch offices in several locations -- where Indonesian migrant worker communities are concentrated, and perhaps in a central business district where there are a lot of trade activities involving Indonesian businesses," Hafas said.
 
Indonesia Economic Growth Accelerates
Southeast Asia’s largest economy grows 5.18% on-year in the second quarter, beating expectations
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A highway under construction in Jakarta. More development projects got off ground in the second quarter as the government ramped up spending. PHOTO: BLOOMBERG NEWS

By I MADE SENTANA and DEDEN SUDRAJAT
Updated Aug. 4, 2016 11:13 p.m. ET


JAKARTA—Indonesia’s economic growth accelerated in the second quarter from a six-year low as more development projects got off ground thanks to increased government spending.

The official Statistics Agency said Friday the economy grew 5.18% year-over-year during the April-June period, gaining pace from 4.92% in the first quarter. From the previous quarter, Southeast Asia’s largest economy expanded by 4.02% after contracting 0.34% during the first quarter.

The median forecast of 10 economists polled by The Wall Street Journal was for the economy to grow 5.0% year-over-year in the second quarter, and 3.8% over the first quarter.

The agency said government spending rose 6.28% year-over-year in the second quarter, accelerating from 2.93% growth in the first quarter.

Household spending grew 5.04% from a year earlier, picking up from 4.94% growth in the first three months of the year.

Investment growth, however, slid slightly to 5.06% from 5.57% in the first quarter.

The government has introduced measures to make it easier for companies to invest in the country as it looks for other sources of growth, after plunging commodity prices hurt its economy.

Meanwhile, Bank Indonesia has cut borrowing costs by a total of 1 percentage point so far this year and relaxed regulations on commercial-bank lending to help bolster economic growth.

The World Bank expects Indonesia’s economy to grow 5.1% for the entire year, supported by household consumption and government spending. It said the continuity of economic reform that President Joko Widodo launched late last year will help the economy to mitigate slowing global demand and volatility in the global financial markets.


Write to I Made Sentana at i-made.sentana@wsj.com and Deden Sudrajat at deden.sudrajat@wsj.com

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Business News
Thursday, 4 August 2016 | MYT 7:57 AM

Singapore bankers see $30 bln flowing back to Indonesia
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A view of the buildings in Central Jakarta, Indonesia August 2, 2016. REUTERS

JAKARTA: Indonesians who have stashed billions of dollars abroad over the years can now bring their hoard safely back home - literally, to a newly bought condo.

That's the pitch from PT Intiland Development Tbk and other Indonesian property developers that aim to grab a slice of at least $30 billion expected to be brought back to Southeast Asia's biggest economy under a tax amnesty programme implemented last month.

Intiland has launched a new marketing campaign featuring a bird soaring above high-rise towers, with the slogan: "Buy property with tax amnesty."

"This is a positive momentum for the tax amnesty, which we will take advantage of as maximally as we can," Intiland director Archied Noto Pradono told reporters last week.

Indonesia will impose a 2-5 percent tax for assets brought back by March 2017 in return for a pardon for past evasions. The funds must be kept in Indonesia for three years and can be invested in several ways, including direct purchases of property.

The amnesty comes amid heightened scrutiny in Singapore and wealth management centres elsewhere over undeclared wealth. Indonesia, Singapore, Switzerland and Hong Kong are among 101 jurisdictions committed to start exchanging information to combat tax evasion by 2018. (http://bit.ly/2aHqdPY)

Singapore-based bankers and lawyers expect roughly $30 billion to exit the city-state, where around $200 billion of Indonesian money is parked.

Wealth managers say the new tax information exchange would motivate some of their clients to repatriate funds, and Indonesia's deposit rates are generally higher than elsewhere in the region. But they still have concerns about currency risk - the Indonesian rupiah has ranged between 8,200 and 14,730 to the dollar over the past 15 years - as well as uncertainties about future tax liabilities after they declare their assets.

Nevertheless, President Joko Widodo said on Monday his government will "go all out" to ensure the success of the scheme. He has roped in respected former World Bank managing director Sri Mulyani Indrawati as his new finance minister with a particular mandate to spearhead the tax drive.

Officials are betting that wealthy Indonesians would opt to pay the relatively low tax rates on their assets under the amnesty, rather than receiving a tougher penalty once the automatic information exchange kicks in.

LESS HESITANT

Indonesia's residential property sales grew 1.5 percent quarter-on-quarter in the January-March period, down from 6.0 percent in the previous three months, in line with a broader economic slowdown, according to the latest survey by the central bank. (http://bit.ly/2agELGI)

Property developers pinning hopes on the tax amnesty to help revive sluggish sales in the country of 250 million people will be targeting individuals such as Indonesian banking-to-property tycoon Tahir.

"Many will participate (in the tax amnesty), including me," Tahir, who was ranked Indonesia's 10th richest person by Forbes with an estimated net worth of $2 billion last year, told Reuters in a text message.

Tahir, who goes by one name, said he has not decided which Indonesian assets to invest in. He declined to disclose how much money he plans to bring home and from where.

Several banks are advising tax amnesty clients to invest in real estate.

Indonesian state-controlled lender PT Bank Tabungan Negara Tbk is partnering with some developers to offer investment opportunities to its clients, said President Director Maryono, who goes by one name.

Maryono estimated the tax amnesty could boost the high-end property market by 5-10 percent next year, while Tulus Santoso Brotosiswojo, a director at PT Ciputra Development Tbk , expects at least 20 percent of the repatriated funds to be invested in the overall property sector.

Property assets priced above 2 billion rupiah ($153,000) are likely to sell more, as people who were previously scared of being chased by the tax office would now be less hesitant about making such purchases, Adrianto Pitoyo Adhi, President Director of PT Summarecon Agung Tbk, told Reuters.

Estimates on how much the scheme will revive the property market vary. Shares of developers haven't risen much since the announcement, highlighting some doubts over the sector's immediate rebound.

"We await implementation before we can know the tangible impact," said Matthew Shaw, Indonesia managing director for property services provider Cushman & Wakefield.

Nevertheless, wealthy Indonesians have a historical preference to invest in property as it has proven to be "quite profitable" over time, said Jeffrosenberg Tan, a director at securities firm Sinarmas Sekuritas.

"This sector could be the first to see tax amnesty inflows." - Reuters

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China and Indonesia to jointly develop HTGR
04 August 2016

China Nuclear Engineering Corporation (CNEC) has signed an agreement with Indonesia's National Atomic Energy Agency (Batan) to jointly develop a high-temperature gas-cooled reactor (HTGR) in Indonesia.
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The signing of the agreement (Image: CNEC)


The joint project development plan was signed on 1 August by CNEC chairman Wang Shoujun and Batan chairman Djarot Sulistio Wisnubroto during the second official Meeting of Cultural and People-to-People Exchange between China and Indonesia.

Under the agreement, CNEC and Batan intend to cooperate on an Indonesian HTGR project and to train workers.

Batan is promoting the introduction of nuclear power plants in Indonesia to help meet the county's demand for power. It envisages the start-up of conventional large light-water reactors on the populous islands of Bali, Java, Madura and Sumatra from 2027 onwards. In addition, it is planning for small HTGRs (up to 100 MWe) for deployment on Kalimantan, Sulawesi and other islands to supply power and heat for industrial use.

Prior to the introduction of commercial reactors in Indonesia, Batan is considering building a test and demonstration HTGR with an electrical output of 3-10 MWe and a thermal output of 10-30 MWt.

In August 2014, Batan signed a cooperation agreement with the Japan Atomic Energy Agency (JAEA) on research and development of HTGRs. JAEA has developed a small prototype gas-cooled reactor, the High-Temperature Test Reactor. This is a 30 MWt graphite-moderated helium gas-cooled reactor which achieved first criticality in November 1998.

In April 2015, Rosatom announced that a consortium of Russian and Indonesian companies led by NUKEM Technologies had won a contract for the preliminary design of a multi-purpose 10 MWe HTGR at Serpong in Indonesia.

CNEC has been working with Tsinghua University since 2003 on the design, construction and commercialization of HTR technology. The partners signed a new agreement in March 2014 aimed at furthering cooperation in both international and domestic marketing of the advanced reactor technology.

A demonstration HTR-PM unit is under construction at Shidaowan near Weihai city in China's Shandong province. That plant will initially comprise twin HTR-PM reactor modules driving a single 210 MWe steam turbine. Construction started in late 2012 and commercial operation is scheduled to start in late 2017.

A proposal to construct two 600 MWe HTRs at Ruijin city in China's Jiangxi province passed a preliminary feasibility review in early 2015. The design of the Ruijin HTRs is based on the smaller Shidaowan demonstration HTR-PM. Construction of the Ruijin reactors is expected to start next year, with grid connection in 2021.

CNEC is actively promoting its HTGR technology overseas and has already signed memoranda of understanding with Dubai, Saudi Arabia and South Africa. The company said the signing of the agreement with Indonesia "marks further substantial progress in the overseas promotion of HTR technology".

Researched and written
by World Nuclear News
 
New Priok Ports ready for operational duty, this one pier capable to handling 1,5 million TEU a year and 32 hectare yards for cargo

New Priok Segera Beroperasi
Jumat, 5 Agustus 2016 15:25 WIB | 189 Views
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New Priok Segera BeroperasiFoto aerial New Priok Container Terminal 1 di Kalibaru, Jakarta Utara, Jumat (5/8/2016). Pelabuhan Kalibaru atau New Priok Container Terminal 1 segera dioperasikan penuh secara komersial dengan "handling capacity" 1,5 juta TEU's per tahun dan "container yard" seluas 32 hektar. (ANTARA/Andika Wahyu)

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New Priok Segera BeroperasiFoto aerial New Priok Container Terminal 1 di Kalibaru, Jakarta Utara, Jumat (5/8/2016). Pelabuhan Kalibaru atau New Priok Container Terminal 1 segera dioperasikan penuh secara komersial dengan "handling capacity" 1,5 juta TEU's per tahun dan "container yard" seluas 32 hektar. (ANTARA/Andika Wahyu)

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New Priok Segera BeroperasiFoto aerial New Priok Container Terminal 1 di Kalibaru, Jakarta Utara, Jumat (5/8/2016). Pelabuhan Kalibaru atau New Priok Container Terminal 1 segera dioperasikan penuh secara komersial dengan "handling capacity" 1,5 juta TEU's per tahun dan "container yard" seluas 32 hektar. (ANTARA/Andika Wahyu)

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New Priok Segera BeroperasiFoto aerial New Priok Container Terminal 1 di Kalibaru, Jakarta Utara, Jumat (5/8/2016). Pelabuhan Kalibaru atau New Priok Container Terminal 1 segera dioperasikan penuh secara komersial dengan "handling capacity" 1,5 juta TEU's per tahun dan "container yard" seluas 32 hektar. (ANTARA/Andika Wahyu)

Indonesia's Foreign Exchange Reserves Increase to $111b in July


Jakarta.
Indonesia's foreign exchange reserves rose by $1.6 billion in July as oil and gas revenue and proceeds from foreign-denominated Bank Indonesia securities sales exceeded foreign debt payments.

The reserves increased to $111.4 billion last month from $109.8 billion a month earlier. This was the highest level since May last year, according to a statement issued by the central bank on Friday (05/08).

"The foreign exchange reserve position as of the end of July 2016 is enough to cover 8.5 months of imports, or 8.2 months of imports and foreign debt payments," Bank Indonesia communication department director Arbonas Hutabarat said in the statement.

He said Bank Indonesia believes the reserves will be adequate to weather external challenges and keep Indonesia's economy growing sustainably in the future.

Earlier on Friday, the Central Statistics Agency (BPS) reported that Indonesia's gross domestic product grew by 5.18 percent in the second quarter from a year earlier. The growth also compares favorably to the 4.91 percent in the first quarter of this year.

The rupiah traded at 13,125 against the United States dollar on Friday, according to Bank Indonesia's Jakarta Interbank Spot Dollar Rate. The rupiah has strengthened by 4.9 percent so far this year on the back of capital inflows into Indonesian bonds and the country's stock market.

http://jakartaglobe.beritasatu.com/business/indonesias-foreign-exchange-reserves-increase-111b-july/
 
Indonesia offers Islamic finance investment opportunities
Jumat, 5 Agustus 2016 05:23 WIB | 871 Views

Jakarta (ANTARA News) - A report on the global Islamic economy outlook issued by Thomson Reuters said Indonesia offers Islamic finance investment opportunities in line with economic growth aspirations.

"Indonesia has a number of driving factors for the growth of Islamic finance. Supportive environment and favorable demography are the two main factors that foster the Islamic finance sector in the country," the Head of Islamic Finance at Thomson Reuters, Mustafa Adil, said here on Thursday.

The Financial Services Authority (OJK) has also come up with a new roadmap agenda which includes reducing fees on sharia-compliant products, education and training programs.

Mustafa added that a Muslim population of 210 millionwas a major demographic factor driving the growth of Islamic finance in Indonesia.

"Strengthening Islamic financial literacy encourages understanding and awareness of this sector," he said, adding that there is a strong correlation between the number of sharia scholars in a country and the extent to which Islamic finance regulations are comprehended by its people.

Although there are only 131 sharia scholars in Indonesia, less than Malaysias 205, the number of Islamic financial institutions has reached 150. Malaysia has only 100 Islamic financial institutions, Mustafa said.

According to him, Indonesias financial markets can be expanded through the growth of sovereign sukuk and underpenetrated Islamic funds market.

Alongside Malaysia and Bahrain, Indonesia is in the top three countries that regularly issue sovereign sukuk.

Sovereign sukuk is usually used to finance specific projects, such as dams, electricity plants, ports, airports, hospitals, and highways.(*)

http://www.antaranews.com/en/news/106103/indonesia-offers-islamic-finance-investment-opportunities
 
the following is not really related to indonesian economy.... i post it here just as an FYI
Turn off your lights and enjoy the Milky Way: LAPAN
Jakarta | Fri, August 5 2016 | 04:28 pm
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Foreign tourists enjoy the Milky Way constellation on a clear night in Rote Ndao Island of East Nusa Tenggara Province on Aug. 16, 2015.(Antara/M. Agung Rajasa)
The National Institute of Aeronautics and Space (LAPAN) has asked people to save the night sky from light pollution by turning off all outdoor lights for one hour on Saturday to enjoy the beauty of the Milky Way.

LAPAN launched the Dark Sky Night campaign in Jakarta on Friday asking people to turn outdoor lights off between 8 p.m. to 9 p.m. on August 6, LAPAN head Thomas Djamaluddin said. The campaign was launched in August as the clearer skies during the dry season make it easier to see the stars, as well as to commemorate Outer Space Day, he added.

"The Dark Sky Night campaign aims to raise awareness of the importance of saving the night skies from light pollution as well as saving energy," Thomas said on Friday as reported by Antara news agency.

The light pollution in large cities around the world means that their residents rarely get a clear sight of the Milky Way and the billions of star constellations. By turning off their lights on Saturday, people could see the clusters of stars clearly such as the Cygnus, Summer Triangle, Crux and Scorpio, he added.

LAPAN also suggested that the government create a Dark Sky Park: a dedicated light pollution free area, which could also host a National Observatorium, Thomas said, adding that Kupang in East Nusa Tenggara is the most suitable location due to its dry climate. (rin)
http://www.thejakartapost.com/news/...our-lights-and-enjoy-the-milky-way-lapan.html

turn off your outdoor light tomorrow night for an hour and enjoy your night sky......
 
Warning against tax evasion: Indonesia to adopt aeoi next year
Jumat, 5 Agustus 2016 20:35 WIB | 259 Views
Pewarta: Ahmad Buchori

Jakarta (ANTARA News) - Indonesia will be among the first to join the group of countries adopting the Automatic Exchange of Information (AEOI) in 2018.

AEOI would provide automatic exchange of tax information among the members of the group. All bank accounts in the world would be accessible for taxable assets.

Dishonest and greedy tax payers, therefore, would have no easy way to escape tax investigators.

Indonesians who were used to parking money abroad and gained from tax evasion might have to spend long sleepless nights if they continue to go their way .

No one could stash away assets in foreign bank to avoid paying tax, an official said.

Finance Minister Sri Mulyani Indrawati when seeking to socialize the tax amnesty program at the Kemayoran JIExpo, Jakarta earlier this week warned tax payers not to try to hide assets.

"Soon with AEOI no more place safe enough for tax evasion. In the past delinquent tax payers might be able to safely hide their assets abroad as we were powerless beyond our border," the minister said.

The country has limited ability and determination to follow the complicated procedure and Indonesia has no enough bargaining power in demanding information about the assets of its citizens abroad.

Now, however, there is a tendency among finance ministers of all countries to rely more on tax for income that they agreed on a new standard of exchange of information through AEOI on the initiative of the Organization of Economic Cooperation and Development (OECD).

Sri Mulyani, who just left a highly paid position as Managing Director of the World Bank to become a finance minister of this cash strapped country, said countries grouped in the G-20 and OECD agreed that with AEOI business people have no more way to evade payment of tax.

The minister just warned people with unreported income to be careful with AEOI as countries having information are legally bound to declare information they have needed by other countries.

"Rather than being caught with tax evasion charge later it is better to take part in the tax amnesty program when the redemption tariff is still low," she said.

She said tax amnesty is an instrument to bring home funds owned by Indonesians from abroad and to cancel unpaid tax of the past and criminal and tax administrative sanctions.

The funds are potential to be used to finance productive investments in the country, she added.

"If you already have the NPWP (tax registration number) and SPT (annual tax report), and have given information of assets , redemption could be calculated only 2 percent - much lower than the normal tax tariff," she said.

The law has set the tariffs for asset transfer or repatriation at 2 percent each in the first three month period as from July 2016. The tariff is set higher at three percent in the three month period and five percent in third three months period.

The tariff for asset abroad not repatriated or declared is four percent in the firth three month period , six percent in the second three month period and 10 percent in the third three months period.

Tax Haven

Data from the OECD by 14 April in 2016 showed 94 jurisdictions were committed to automatic exchange of information for taxation interest.

Among the 94 jurisdictions, 55 are committed to automatic exchanged of information in 2017 including tax haven countries such as Bermuda, British Virgin Island, Cayman Island and Luxemburg. The rest including Singapore, Japan and Indonesia would follow in 2018.

The idea of automatic exchange of information for taxation purpose surfaced in 2010 when the U.S. government issued a policy on Foreign Account Tax Compliance Act (FATCA).

FATCA required foreign financial institutions to submit report to the U.S. government all information about financial accounts or other entities owned by the Americans.

In 2013, finance ministers and central bank governors of the member countries of G20 and OECD supported plan for automatic exchange of data as a standard for global information exchange for taxation purposes.

Later on in 2014, G20 and OECD member countries gave an okay to policy formulations such as FATCA through the publication of Common Reporting Standard (CRS) as the basis for global information exchange.

The Indonesian government, according to the Head of the Bureau of Communications and Information Service of the Finance Ministry NE Fatimah, will sign the FATCA and would start conducting information exchanges by phases with the U.S. Government in September 2016, as preparatory step ahead of the adoption of AEOI with 94 jurisdictions in September 2018.

In implementing FATCA and AEOI, the Finance Ministry is ready to give support in the form of transparency in banking information for the information exchange and data related to taxation.

This is important to maintain the position of Indonesia from being branded as non-cooperative jurisdiction , which would have damaging impact for the countrys financial and industrial sectors.

Tax Reform

Taxation observer Darussalam said the tax amnesty program is potential to trigger an uproar as with the taxation data information exchange , data on tax payers abroad would be brought out to the open.

As a result, tax institution would be flooded with information about banking data and the exchange of data would widely unveil the wealth of tax payers, he said.

Therefore, tax amnesty could not be fully effective without comprehensive tax reform, especially when there has not been revision of regulation on banking secrecy about clients, he said.

He said Indonesia still maintain the bank secrecy regulation.

"If the tax amnesty program is to be successful, support in the form of openness of banking data is needed not only internationally but also domestically," he said.

Darussalam, who is a lecturer at the University of Indonesia, said anywhere in the world , tax amnesty goes all along with tax reform .

"This is often forgotten as if tax amnesty could ago lone," he said.

Chairman of the Tax Accountant of the Indonesian Accountant Association (IAI) John Hutagaol said ideally there is revision of the Banking Law to back up the tax amnesty program for transparency in data of clients in order to find tax payers not yet paying tax properly.

The then Finance Minister Bambang PS Brodjonegoro said he would give special intervention by demanding firm sanction if the state or jurisdiction refused to comply with the agreement.

"Therefore, we ask G-20 and make sure all jurisdictions , state or no state to seriously address this . The sanction is like blacklist and sanction in the form of money flow, declaration of financial system, etc," Bambang said.

Indonesia seems set to implement AEOI and cooperative in adopting the new standard of information exchange for taxation purpose.

Therefore, tax payers who have failed to report their assets unpunished, should seriously consider advises to take part in the tax amnesty program otherwise they may have to spend sleepless long nights for the rest of their life.

The opportunity is open openly until March 31, 2017.(*)

http://www.antaranews.com/en/news/1...tax-evasion-indonesia-to-adopt-aeoi-next-year
 

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