Indonesia Economy Forum

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Indonesia’s Ramadan Remittances Up 25%

By Suara Pembaruan on 9:27 pm August 12, 2013.
Category Business, Economy, Featured
Tags: Indonesian migrant workers, Islamic fasting month Ramadan, Remitances

Demonstrators call for protection of migrant workers in 2012. The government has since implemented salary standards for Indonesians working abroad. (JG Photo/Safir Makki)


Indonesian migrant worker remittances grew by 25 percent during Ramadan compared to last year, in line with the growing number of overseas workers and a rise in salaries.

Inbound transfers rose to Rp 15 trillion ($1.46 billion) during the Islamic fasting month, Reyna Usman, director general of worker placement and protection at Labor Ministry, said on Monday.

Ramadan is a popular time for migrant workers to send money home to their families.

“The increasing number of migrant workers overseas implies more foreign exchanges sent to their hometowns,” Reyna said.

Data from the Migrant Worker Placement and Protection Agency (BNP2TKI) showed that there were four million Indonesians working abroad at the end of December 2012, up 5 percent from a year earlier.

Reyna said improved efforts by the government to protect informal workers being exploited — such as fixing salary standards and ensuring workers hold on to their passports — meant that overseas workers had enjoyed more successful employment during the year.

“This will result in increasing remittances,” she said.

Total remittances into Indonesia in the first quarter of this year reached $1.9 billion, a 7 percent increase from the same period last year, according to data from Bank Indonesia, the central bank.

The actual amount may have been higher as transactions outside the banking system are not recorded.

Some workers ask others from the same hometowns to carry cash for their family when they head home.

Reyna said that during Ramadan this year up to 75,000 workers returned home — a 50 percent increase over the average monthly homecoming.

Two years ago, the government temporarily stopped sending migrant workers from informal sectors, including domestic helpers, to five countries — Malaysia, Saudi Arabia, Kuwait, Suriah and Jordan — after the countries had failed to protect the workers’ rights.

That froze the growth of remittances in 2011 at $6.3 billion, before recovering in 2012 with a climb up to $7 billion.

The BNP2TKI expected workers to send $7.5 billion in remittances this year.

Still, the number will not be able to plug the deficit in the country’s current account, which has been in the red since the fourth quarter of 2011 as exports slowed in the face of weak demand while imports peaked, driven by domestic oil demand and capital goods purchases.

According to Bank Indonesia’s preliminary data, the current account deficit for the April-June period was $9 billion, or 3.6 percent of the country’s gross domestic product, up from 2.4 percent of GDP or a $5.3 billion deficit in the first quarter.

The central bank expects the current account deficit to drop substantially, to $7 billion, in the third quarter as import demand typically slows in the period.

Suara Pembaruan

Indonesia's Ramadan Remittances Up 25% - The Jakarta Globe

Indonesia Coffee Delivery Seen by Volcafe Falling on Eid

By Isis Almeida on 7:39 pm August 12, 2013.
Category Business, Commodities, Featured
Tags: Idul Fitri, indonesia coffee, Volcafe

Harvested Robusta coffee berries sit out to sun dry at a coffee plantation in Tanggamus, Lampung Province, Indonesia, on Friday, May 31, 2013. (Bloomberg Photo/Dimas Ardian)


Coffee deliveries from farms in Indonesia, the world’s third-biggest robusta grower, tumbled this week because of the Muslim holiday of Idul Fitri, according to Volcafe, a unit of commodities trader ED&F Man Holdings Ltd.

Bean arrivals were about 2,500 to 3,000 metric tons this week, the Winterthur, Switzerland-based trader said in a report e-mailed today. That compares with 26,000 tons last week. Indonesia is harvesting its 2013-14 crop that started in April and production will fall 12 percent to 9.2 million bags, the US Department of Agriculture estimates.

“Business is basically at a standstill as nearly all exporters are closed due to the [Idul Fitri] holiday,” Volcafe wrote in a report e-mailed today. “Wet weather persists, causing quality problems.”

Scattered showers and thunderstorms will form throughout northern Indonesia from today to Aug. 11, AccuWeather said in a report today. Amounts will vary from 0.2 inch to 0.6 inch, with local downpours of 1 inch to 2 inches along the coast of Sumatra and in parts of Borneo, the forecaster said. Indonesia’s main coffee growing region is southern Sumatra.

Buyers of coffee from Indonesia for shipment in September and October were paying a premium of $110 a ton over the futures on the NYSE Liffe exchange in London, according to Volcafe. That compares with $100 last week, data from the trader showed.

In Vietnam, the world’s leading robusta grower, demand is increasing and it’s cheaper to buy coffee on NYSE Liffe than from local farmers, Volcafe said. Vietnamese beans for shipment in September and October were at a premium of $90 a ton to the exchange price, unchanged from last week, the trader said.
Rupee’s Decline

In India, Asia’s third-biggest coffee grower, coffee was offered for sale at cheaper prices as the rupee slid. India’s currency, which has slumped 12 percent against the US dollar in the past six months, fell to a record low of 61.8050 on Aug. 6. The currency is the second worst performer among 24 counterparts in emerging markets.

Robusta coffee for delivery in November was 1.8 percent higher at $1,943 a ton by 4:17 p.m. in London. Prices reached $1,943 a ton, the highest in two weeks.

Bloomberg

http://www.thejakartaglobe.com/business/indonesia-coffee-delivery-seen-by-volcafe-falling-on-eid/

 

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Indonesia Retail Sales Grow 14.8% in June


By Jonathan Thatcher & Richard Borsuk on 1:46 pm August 12, 2013.
Category Business, Economy
Tags: Indonesia retail sales
Indonesia’s retail sales in June rose 14.8 percent from a year earlier, ahead of the Ramadan holiday period when consumption normally increases, a Bank Indonesia survey showed on Monday.

June’s growth pace topped a revised 12 percent in the previous month, driven by information and communication equipment, which includes mobile phones and pre-paid phone cards, and by clothing and fuel.

The survey of 600 retailers in 10 major cities across the archipelago also showed that they expected upward price pressure in the next three months due to the sharp increase in fuel prices in late June.

The retailers expected retail sales to ease slightly in the next three months as consumption returns to normal after the Muslim festivities.

Retailers expected that consumption grew 10.8 percent in July.

Reuters

BI Spends Billions to Lift Rupiah


By Dion Bisara & Grace Dwitiya Amianti on 9:03 pm August 14, 2013.
Category Business, Featured
Tags: Bank Indonesia, Indonesian Rupiah
Indonesia’s foreign exchange reserves fell by 6 percent last month as the central bank struggled to prop up the rupiah amid concerns about a widening current account deficit due to weak exports.

Indonesia’s foreign exchange reserves fell to $92.7 billion at the end of July from $98.1 billion a month earlier, Bank Indonesia data showed on Wednesday.

The central bank sold $3.1 billion in three weekly auctions of currency swaps — or agreements to buy back dollars from companies at a certain price — last month to meet companies’ need to repatriate income and pay debts.

It also used some of the reserves to defend the rupiah in the currency market. In June alone the central bank spent $7 billion of its foreign exchange reserves to support the rupiah.

The rupiah fell 0.05 percent on Wednesday to 10,297 against the dollar, based on Bank Indonesia’s median rate. So far this year it has weakened by 6.5 percent against the greenback, losing 4.2 percent in just the past two months.

Bank Indonesia governor Agus Martowardojo said global economic conditions, especially the decline in commodity prices, hurt exports. Economic growth in China, Indonesia’s main export partner, is slowing.

“What I see is there is a world economic downturn, as well as [a downturn in] the volume of world trade. The main commodity prices are still declining, so [that is having an] impact on Indonesia’s export business and revenue,” Agus said on Tuesday.

Indonesia’s exports in June declined by 8.6 percent to $14.74 billion compared to a month earlier, data from the Central Statistics Agency (BPS) showed, with non-oil and gas exports dropping 9.3 percent due to weak demand from China, Japan and the United States.

Bank Indonesia’s forecast the current account deficit for the April-June period probably reached $9 billion, or 3.6 percent of the country’s gross domestic product, up from 2.4 percent of GDP, or a $5.3 billion deficit, in the first quarter. Data on current may be released later this week.

The current account is a balance of the goods and services trade, income transfers and remittances. A current account deficit means a country is a net debtor to foreign holders, which puts pressure on the country’s currency.

Foreign investors are also dumping Indonesian assets amid uncertainty regarding the future of the US Federal Reserve’s quantitative easing program, which has

fueled rising asset price in emerging countries early this year.

Rising inflation in Indonesia makes it less valuable to hold rupiah-denominated assets. Inflation quickened to 8.61 percent in July from 5.9 percent in the previous month, mainly driven by rising food and transportation prices, coinciding with peaking demand during Ramadan.

Data from the Indonesia Stock Exchange showed that foreign investors’ cumulative net sales reached Rp 1.7 trillion ($165 million) on Wednesday, a stark contrast to more than Rp 8 trillion in net buting when the benchmark stock index rose to record in May.

Foreign holdings in government bonds were Rp 288 trillion on Monday, according the latest available data from Finance Ministry, up 1.7 percent since June, but still short of its Rp 303 trillion peak in May.

http://www.thejakartaglobe.com/business/bi-spends-billions-to-lift-rupiah/

 

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‘Champions and Warriors’ Prepare For Jakarta Fight


By Jakarta Globe on 2:00 pm August 14, 2013.
Category Boxing, Sports
Tags: martial arts, mixed martial arts, muay thai Camp

Jake Butler will be in action at ONE FC’s ‘Champions and Warriors’ next month. (Photo courtesy of ONE FC).

With a vision to fill a glaring gap in the market in his adopted home of Singapore, investor and entrepreneur Chatri Sityodtong created a world-class martial arts academy which caters to everyone, from total beginners to seasoned professionals in 2008.

As a result, Evolve MMA was born and four years later it has come to be universally regarded as the premier facility of its type in Asia.

It is home to ONE FC champion Shinya Aoki, RUFF champion Irshaad Sayed, UFC title contender Rafael Dos Anjos and numerous other world-class mixed martial artists.

But despite having a proven track record in building successful companies from his days on Wall Street, Chatri says his motivation was more personal than only financial.

“I have trained Muay Thai since I was a child in Thailand and when I was living in New York I was awarded a blue belt in Brazilian jiujitsu by Renzo Gracie. When I first moved to Singapore, where there was nowhere to train and no one to train with, martial arts has changed my life and I started Evolve MMA because I wanted other people to have access to those same opportunities. Also because I wanted somewhere I could train myself,” he said.

There will be no fewer than three fighters from Evolve MMA on the card at “ONE FC: Champions and Warriors,” which is taking place at the 15,000-seat Gelora Bung Karno Istora in Jakarta on Sept. 13.

Jake Butler, who is a former NCAA Division One wrestler, will be taking on James Kouame in a catchweight encounter while Brazilian jiujitsu world champion Almiro Barros faces Kian Pham at flyweight and No Gi grappling world champion Bruno Pucci takes on Bashir Ahmad in a featherweight match-up.

Chatri has high expectations for all three and is proud to see so many of his fighters signed to Asia’s biggest MMA promotion.

“Jake has already fought twice for ONE FC and has won both fights, he comes from a very strong wrestling background and has a skill set which Asian fans might not be so familiar with. Both Bruno and Almiro have Brazilian jiujitsu black belts so their submission games are world class and it’s an honor for Evolve MMA to have three fighters on the biggest MMA show to ever take place in Indonesia,” he said.

Chatri handpicked the fighters and trainers at Evolve MMA from all over the world with the only criteria that they must be outstanding in at least one discipline and also that they should fit into the tight-knit team he has put together.

“I am a firm believer that fighting is a team sport, you are only as good as your trainers and training partners and at Evolve MMA we have Muay Thai world champions and boxing world champions from Thailand, Brazilian jiujitsu world champions from Brazil and a wrestling Olympian from the United States as well as numerous other experienced fighters from around the world.”

“If you want to be the best you have to surround yourself with the best and I believe I created an environment where even the world’s best fighters can get better.”

While Evolve MMA is famous for its fight team according to Chatri the majority of members are not full-time professional athletes but people from all walks of life.

“Most of our members are more interested in self development than actually becoming fighters, although they still get to train under world champions,” he said.

“With the MMA scene taking off in Jakarta, a world champion may emerge from Indonesia soon enough.

“Getting the infrastructure in place takes time. Once that happens, elite fighters will inevitably emerge.”

The Jakarta Globe is a media partner for ONE FC’s Sept. 13 event.

‘Champions and Warriors’ Prepare For Jakarta Fight - The Jakarta Globe

IFC Invests $50 Million in Indonesian Telecom Towers


By Jakarta Globe on 8:40 pm August 13, 2013.
Category Business, Corporate News
Tags: International Finance Corporation, mobile phone operator, Protelindo, telecommunications


The International Finance Corporation (IFC,) a member of the World Bank Group, on Tuesday said it would seek to improve mobile coverage in Indonesia by investing $50 million in PT Profesional Telekomunikasi Indonesia (Protelindo), the country’s largest independent owner and operator of telecom towers.

“Improving infrastructure is critical in driving Indonesia’s economic growth,” said Wiebke Schloemer, IFC’s infrastructure and natural resources manager for East Asia and the Pacific.

Schloemer was quoted in an IFC statement as saying that its investment in Protelindo was part of its commitment to accelerate infrastructure development in Indonesia, specifically telecommunications.

“Indonesia’s geographical challenges mean that telecommunications play a key role in the country’s infrastructure development,” said Adam Gifari, chief executive officer of Protelindo.

Established in 2003, Protelindo owns and operates around 9,000 telecommunications towers throughout Indonesia, leasing space at its multi-tenant towers to all major Indonesian wireless operators.

IFC’s investment will help Protelindo build more towers and provide additional coverage and capacity for mobile operators in Java, Sumatra and Kalimantan, as well as other parts of the country, the IFC statement said.

The International Telecommunication Union, a specialized agency of the United Nations, indicated that Indonesia had about 282 million mobile phone subscribers at the end of 2012, a 13 percent increase from 250 million subscribers in 2011.

http://www.thejakartaglobe.com/business/ifc-invests-50-million-in-indonesian-telecom-towers/

 

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Govt to award PSC to East Natuna contractors

Amahl S. Azwar, The Jakarta Post, Jakarta | Business | Tue, August 13 2013, 3:50 PM

The government will award a production-sharing contract (PSC) for the East Natuna gas field in Riau Islands this year after reviewing a consortium’s proposal for the gas project, which is the largest in the region.

Energy and Mineral Resources Minister Jero Wacik said in Jakarta on Tuesday that the request by the consortium for a five-year tax holiday was currently the final item to be discussed before issuing the PSC.

''It is very likely that the five-year tax holiday will be awarded to the contractor from 2024 to 2029,'' he said.

The East Natuna gas field is expected to begin production in 2024, with the estimation that it would take 10 years for the consortium members to explore the field.

The peak production for East Natuna is estimated to reach 4,000 million standard cubic feet per day (mmscfd) of gas for at least 20 years before supplies begin to decline.

The government’s approval of the principal of agreement (PoA) signed by the consortium members — state-owned oil and gas firm PT Pertamina, US-based ExxonMobil, France’s Total SA and Thailand’s PTT Exploration and Production (PTT EP) — has been postponed several times.

The PoA was initially signed by the consortium’s members in August 2011, when Malaysia’s Petronas was still part of the consortium. Petronas was replaced by PTT EP last year.

The PoA, which relates to the development of the East Natuna field, formerly known as the Natuna D-Alpha block, is an essential step before the PSC for the block can be signed.

Initially, the Natuna PSC was due to be signed in October 2011, before it was postponed until mid-2012. It was then postponed again until November 2012 and, finally, to this year. The PoA must be approved by the finance minister.

The East Natuna block has total proven reserves of 46 trillion cubic feet (tcf), making it the largest gas reserve in Asia.

Govt to award PSC to East Natuna contractors | The Jakarta Post

Rp 15t wired back home at Ramadhan, says minister

The Jakarta Post, Jakarta | National | Wed, August 14 2013, 8:42 PM

Manpower and Transmigration Minister Muhaimin Iskandar says Rp 15 trillion (US$1.45 billion) was remitted to Indonesia from Indonesian migrant workers overseas during Ramadhan until the Idul Fitri holiday, up from last year’s Rp 12 trillion.

Muhaimin said migrant workers had wired the money through banks and non-bank institutions.

“Some also sent money through friends returning home for the holiday,” Muhaimin added as quoted by Kontan.co.id on Wednesday.

According to the National Labor Placement and Protection Agency (BNP2TKI), Indonesia has 6.5 million migrant workers in 142 countries. The majority of them work in Malaysia, Saudi Arabia and Hong Kong.

The World Bank’s latest report on migration and remittance says Indonesia ranked third in Southeast Asia after the Philippines and Vietnam in terms of remittance inflows from migrant workers. It received $7.2 billion from the workers last year, 4.1 percent higher than 2011’s figure. (hrl/dic)

http://www.thejakartapost.com/news/2013/08/14/rp-15t-wired-back-home-ramadhan-says-minister.html

 

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RI drivers take podium in US and Europe

The Jakarta Post, Jakarta | Sports | Mon, July 29 2013, 11:59 AM

Wave the flag: Rifat Sungkar (left) and navigator Steve Lancaster took the third position at the New England Forest Rally on Saturday with 1:44:57. Courtesy Fastron world rally team

Indonesian drivers Rifat Sungkar and Sean Gelael have taken third position in the New England Forest Rally (NEFR), part of the fifth series of Rally America on Saturday in Newry, Maine and the British F3 International at Spa-Francorchamps Circuit, Belgium, respectively.

Rifat came in at third place after clocking 1 hour, 44 minutes, 57 seconds. The top position was taken by America’s Ken Block with 1:34:34 followed by Rally America’s defending champion David Higgins with 1:34:40.

“There is great pride not only for me but for all Indonesians because today we have proved that Indonesia can make its mark on Rally America,” Rifat said in a statement sent to The Jakarta Post on Sunday.

The NEFR competition features seven series but Rifat, who drives with Pertamina Fastron World Rally Team, only took part in five of them. He opted to skip the first two of the series. He finished in second place in the third series.

The two-day race comprises 13 special stages (SS), covering a total distance of some 200 kilometers, four SS in the opening day and nine in the second day.

“In the SS1 Concord Pond, we played it safe while our competitors who had become really familiar with the track kept speeding,” said Rifat, who only managed to take 11th position with 4:46.

According to Rifat, the race was tough for him and navigator Steve Lancaster due to the heavy rain a day earlier that caused muddy and uneven conditions at the race track and left fallen trees.

Manager of the Fastron World Rally Team, M. Indra Prasetyo, said Rifat and Steve had been studying videos of the track survey so that they could make accurate pace notes.

Even though Rifat said he found difficulties in several of the SS in the first day of the race, he managed to catch up in the last two — SS12 Hampshire Hills South and SS13 North Road — despite the tough competition from David Sterckx.

“Thank God, our team managed to take the podium in third place. I hope we can do even better in the next races,” Rifat said.

In Belgium, 16-year-old Sean picked a path through treacherous wet conditions in the first race of the weekend to add to his two podium finishes from the opening round at Silverstone.

Combined with his other two results from Spa, this result moves him up to fourth place in the overall British F3 championship.

“I’m glad that I can earn extra points from recording the fastest lap. This was such an extraordinary week for me. This circuit is very difficult,” he said as quoted by Antara news agency.

Sean is gearing up for the next race at Brands Hatch on Aug. 10-11.

RI drivers take podium in US and Europe | The Jakarta Post

 

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Garuda Plans Jakarta-Osaka Route in Q4


By SP/Lona Olavia on 3:09 pm August 15, 2013.
Category Business
Tags: Denpasar, Garuda Indonesia, Japan, Osaka


National carrier Garuda Indonesia plans to open a direct flight between Jakarta and Osaka in the fourth quarter of this year, an airline executive said on Thursday.

“Our flights to and from Japan are very positive,” said Djunadi Putra Satrio, the airline’s vice president of marketing. “Periodically, we are looking for more cities. Japan also has a strong market.”

Garuda currently operates daily flights from Denpasar to Osaka, while the airline also offers two other routes to Japan — Jakarta-Narita (Tokyo), and Denpasar-Haneda (Tokyo).

The company’s president director, Emirsyah Satar, said the new route was a reflection of demand. He said that some 500,000 Japanese people visit Indonesia each year, a figure he described as healthy, although still below the 650,000 visitors who arrived in the country before the 2002 Bali bombings.

“We are seeing that the number of Garuda passengers from Japan heading to Indonesia is high,” Emirsyah said. “The aircraft are always full — both in economy class and business.”

Emirsyah said that the number of Indonesian visiting Japan each year was only about a fifth of the number of Japanese traveling to Indonesia.

Garuda Plans Jakarta-Osaka Route in Q4 - The Jakarta Globe

Indonesia Holds Rate to Support Growth at Slowest in Three Years


By Novrida Manurung on 4:05 pm August 15, 2013.
Category Business, Economy
Tags: Bank Indonesia central bank key benchmark interest rates

Indonesia’s central bank kept its benchmark interest rate unchanged this month after two consecutive increases, as policy makers seek to support an economy growing at the slowest pace in three years.

Bank Indonesia Governor Agus Martowardojo and his board held the reference rate at 6.5 percent, the central bank said in a statement in Jakarta on Thursday.

The outcome was predicted by 16 of 25 economists surveyed by Bloomberg News, with seven expecting a 25 basis-point increase and two forecasting a 50 basis-point rise.

Economic growth in the second quarter fell below 6 percent for the first time since 2010, data earlier this month showed.

Bank Indonesia raised borrowing costs by a total 75 basis points in June and July to cool inflation expectations and shore up investor confidence as the rupiah weakened.

“A momentary pause is fine, but with the bond and currency markets still fragile, BI must be extra careful from here on, with regards to how it calibrates and signals its future policy intentions,” Lim Su Sian, an economist at HSBC Holdings in Singapore, said in a research note before the decision.

The rupiah fell 0.6 percent to 10,351 per dollar as of 3:07 p.m. in Jakarta, prices compiled by Bloomberg from local banks show. It has fallen about 7 percent so far this year and on Thursday touched its lowest level since June 2009.

The yield on 5.625 percent government bonds due May 2023 has climbed 2.05 percentage points in the past 12 months to 7.96 percent, prices from the Inter Dealer Market Association show.

It reached 8.3 percent on July 16, the highest level since March 2011.

Declining Reserves

Bank Indonesia was the first in the region to raise rates this year. The monetary authority has also intervened to support the currency as the nation’s foreign-exchange reserves fell for a third month in July to $92.7 billion, the lowest in nearly three years, data showed on Wednesday.

Monetary policy will focus on stabilizing the currency and inflation, and keeping the current-account deficit at manageable levels, Deputy Governor Perry Warjiyo said on Aug. 2. When the central bank is confident its targets are achievable, it will move toward supporting growth, Warjiyo said.

“The economy has slowed over the last 12 months and by aggressively tightening rates, the bank runs the risk of quelling domestic activity – the main driver of growth,” Fred Gibson, a Sydney-based economist at Moody’s Analytics, said before the decision. “Tightening rates further would be a larger policy misstep.”

Consumer prices rose 8.61 percent in July from a year earlier after a 5.9 percent gain in June, data showed earlier this month.

President Susilo Bambang Yudhoyono in June raised domestic fuel prices for the first time since 2008 to cut subsidy costs, and said on Aug. 2 the government needs to take proper measures so that growth will not be far off the government’s target, without giving details.

Gross domestic product grew 5.81 percent in the three months ended on June 30 from a year earlier, compared with a revised 6.03 percent pace for the first quarter.

The central bank sees expansion this year at the lower end of its forecast range of 5.8 percent to 6.2 percent, from a previous estimate of as much as 6.6 percent, Warjiyo said on Aug. 2.

Bloomberg

http://www.thejakartaglobe.com/business/indonesia-holds-rate-to-support-growth-at-slowest-in-three-years/

 

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Indonesia Says 2014 Budget to Focus on Raising Domestic Demand


By Rieka Rahadiana & Jonathan Thatcher on 9:51 am August 15, 2013.
Category Business, Economy
Tags: Finance Minister M. Chatib Basri, Indonesia economic growth, Indonesia economy

Newly appointed Finance Minister Chatib Basri thumbs up prior to an inauguration ceremony at the presidential palace in Jakarta on May 21, 2013. (AFP Photo/Adek Berry)

Indonesia’s budget for next year will put heavy emphasis on promoting domestic demand as the driver of growth as the country’s exports will remain weak, Finance Minister Chatib Basri said on Wednesday.

In an interview with Reuters, Basri conceded that this year’s 6.3 percent economic growth target would be hard to reach and said the figure was likely to end up “around” 6 percent, which is more in line with the view of private economists.

Last month, Indonesia’s central bank cut its 2013 growth forecast to 5.8-6.2 percent from 6.2-6.6 percent.

“The current global economic situation is not very promising… So the role of fiscal policy is quite clear. We have to provide stimulus for the economy,” said the Australian-educated economist who, at 47 years, is one of Indonesia’s youngest finance ministers.

Though economists said it is still too early to judge Basri’s performance since becoming minister in May, he has been widely praised in his role as head of the state investment board, overseeing a period of record foreign investment into Southeast Asia’s biggest economy.

But Basri, who retains his investment chief role, came to the job of finance minister just as the economic outlook for Indonesia began to cloud, with slowing, exports struggling, inflation surging and the rupiah slumping.

“It’s about time for Indonesia to change the composition of growth,” he said in his large office in the sprawling finance ministry compound, jazz playing in the background.

“Countries like Indonesia can’t continue to rely on natural resources or cheap labour. We have to move forward into the next stage of our development with … innovation and technology,” the minister said.

Infrastructure spending

In June, the government sharply cut fuel price subsidies—a move that it says will make available for the 2014 budget Rp 18.4 trillion ($1.79 billion) saved this year.

Basri said some Rp 13 trillion of that will be earmarked for Indonesia’s notoriously inadequate infrastructure. The rest will go towards developing human resources and improving public transport.

The government’s budget proposal for 2014 will be unveiled on Friday.

Basri said he hopes Indonesia can have a “good budget posture” in 2014 with a deficit of 1.49 percent of gross domestic product.

By doing so, “we will able to reduce the debt to GDP ratio to become less than 33 percent, the lowest in our history, he said.

Basri forecast that this year’s budget deficit will be less than 2.4 percent of GDP.

Exports currently aren’t driving economic growth as they once did. Last year, Indonesia had its first annual trade deficit, and exports have been weakening further this year, falling 4.5 percent in June from a year earlier.

The minister, who is not a member of any political party, said domestic demand should be boosted by parliamentary and presidential elections. Domestic demand accounts for about 55 percent of the economy and government spending about another 6 percent.

“The only problem with private consumption is the inflation trap because it went up quite significantly in July,” he said.

Annual inflation last month hit 8.61 percent, the highest rate in four and half years.

Inflation to ease

But pressures from volatile food prices and the impact of higher fuel costs should have tailed off by September and prices may even fall in October, he said.

Indonesia’s central bank is due to hold its monthly policy meeting on Thursday but is expected to keep the benchmark rate on hold after two successive increases.

However, several economists say it will have to raise rates again fairly soon because of inflation.

Inflation, among other factors, meant that the government had for the moment put on hold any plans for further fuel price subsidy cuts.

Commenting on a decline in capital investment growth, Basri said Indonesia needed to encourage investors to produce more in Indonesia, pointing to industries such as oil refining, communications equipment and basic metals.

“It doesn’t mean the solution for this is protectionism. We should invite investors to come to Indonesia to produce those products. We provide fiscal incentives.”

Additional reporting by Andjarsari Paramaditha

Reuters

Indonesia Says 2014 Budget to Focus on Raising Domestic Demand - The Jakarta Globe

 

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Facing Headwinds in Indonesia, Singapore’s Wilmar Eyes Africa Palm Expansion


By Reuters on 4:28 pm August 7, 2013.
Category Business, Commodities, Featured
Tags: Indonesia palm oil, palm oil, Singapore

Singapore. Singapore-listed Wilmar International is looking to expand its palm oil plantations in Africa and could start sugar operations in Myanmar, as its plans to find suitable land in Indonesia hit turbulence.

The company is eying opportunities to grow in Africa and hopes to give more details in the next six months or so on starting business in Myanmar, as the Southeast Asian nation sweeps aside decades of isolation, chief executive Kuok Khoon Hong told reporters on the sidelines of a briefing on Wednesday. He did not give further details.

Millions of hectares of forest in top producers Indonesia and Malaysia have been cleared for palm oil plantations, and planters are increasingly turning to the west coast of Africa as the industry’s next frontier.

The collapse of a planned palm venture between Wilmar and Noble Group in the Indonesian region of Papua after they failed to win regulatory approval marked the latest setback for plantation firms trying to expand in that country. Kuok declined to give details on the venture with Noble.

Other firms such as Golden Agri-Resources are also finding it more difficult to get new licenses in the shadow of proposed changes to Indonesian law.

Indonesia has become a top investment destination in Southeast Asia, but regulatory uncertainty, especially in the banking and resources sectors, has been a source of concern for foreign investors.

At the start of 2013, Wilmar had around 255,648 hectares of planted area, with about 73 percent in Indonesia, 23 percent in East Malaysia and 4 percent in Africa.

Smog blanket

Indonesia’s plantation sector has been under heavier scrutiny in the wake of recent forest burning in Sumatra that caused one of Southeast Asia’s worst air-pollution crises, blanketing neighboring Singapore and Malaysia with record levels of smog.

“Given all the news in the press recently about haze in Indonesia and the burning of forest areas for plantation purposes, it’s easy to imagine that local authorities may be more reluctant now than they have been in the past to give permits for palm oil plantations,” said Bill Sullivan, a foreign legal counsel at Indonesian law firm Christian Teo Purwono & Partners.

Officials in the world’s top palm oil producer are looking to limit the size of new plantations to 100,000 hectares, but details are yet to be finalized.

If the law is implemented, big palm oil companies such as Sime Darby Bhd and Kuala Lumpur Kepong may have to intensify their search for land in other markets or settle for slower earnings growth.

“Companies would like to expand as fast as they can, but operational challenges are making it more difficult,” Richard Fung, Golden Agri’s director of investor relations, said at an earnings briefing last week.

Golden Agri is one of the world’s largest palm plantation companies with total planted area of 464,600 hectares in Indonesia.

Indonesia extended in May a moratorium on the issuance of new plantation and timber concessions in primary forests and peatland. Norway has agreed to provide the country with up to $1 billion in financing to help reduce deforestation.

“The movement for transparency is taking root within the Indonesian government, where reformers are working to streamline and strengthen processes for how the government allocates land,” said Nigel Sizer, director of Global Forest Initiative at the World Resources Institute.

“It’s also happening in the markets, where buyers are increasingly demanding sustainable and ethically-sourced products.”

Reuters

 

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In Solo, a royal ritual marks a revelation

Ganug Nugroho Adi, Contributor, Surakarta, Central Java | Culture | Fri, August 02 2013, 11:34 AM

Forward march: Soldiers of the Kasunanan Surakarta Palace lead the ting-ting hik parade as part of malem selikuran to mark the 21st night of Ramadhan.

Participants in the royal procession were chanting Javanese poetry as they emerged from the front hall of the Kasunanan Surakarta Palace, circling its outer walls before heading for the palace’s Grand Mosque on July 28.

The ritual marked malem selikuran, which literally means the 21st night of the Ramadhan fasting month in Javanese.

Four lines of palace soldiers led the parade carrying royal banners. Behind them were dozens of male palace servants striking ancak cantoko (wooden boxes with offerings), accompanied by others carrying 21 ting (oil) lamps and petromak kerosene lamps.

The women palace servants then followed in kebaya, singing the ting-ting hik, verses calling for good deeds, and macapat, or poetry of praise to God. Palace officials and members of the royal family were the last group of the procession.

Along the way, the servants carrying the lamps also chanted the ting-ting hik, and the palace’s ulemas responded by reciting Koranic verses. The ting lamps signify illumination of the path of life.

Offerings: Tumpeng rice cones are borne by palace servants as part of the procession.

For the last several years, the procession, called the kirab ting-ting hik, has proceeded to Jl. Slamet Riyadi, ending at Taman Sriwedari Hall, the former royal park and now a public amusement center.

“Since three years ago, the Solo city government has not funded the event, so we have cut short the parade route to suit our budget,” Kanjeng Pangeran Winarno Kusumo, the deputy manager of the Sasana Sewaka, or the royal mansion, of the Surakarta Palace, said.

“At the Grand Mosque, the offerings are distributed those present. We would need a lot more offerings for park visitors if the ritual finished at Sriwedari.”

The kirab no longer features a horse-drawn royal coach and members of the pubic no longer jostle for the offerings at its end, making the ritual’s atmosphere more solemn.

“No matter what, the ritual has to go on. It’s a royal tradition,” Winarno said. “This is the way the palace welcomes the upcoming lailatul Qadar [the revelation of the Koran] on malem selikuran.”

The ting-ting hik has been observed since the era of Sultan Agung of Mataram in the 17th century, often as a way to spread Islam.

“We’re convinced of the blessings that come down during what is known as the night of a thousand moons. But how to receive and who will enjoy the blessings remain a mystery,” Winarno said.

Sacred: The ulemas of the palace, members of the royal family and palace servants pray amid the various offerings at the Grand Mosque of the Kasunanan Surakarta Palace.

Over 200 years ago, Pakubuwono IV, then the sultan of Surakarta, glorified malem selikuran in his poem “Serat Wulangreh”, saying that the only those who worship and obey God can truly understand. Those in defiance, according to the poem, will never find the “light of a thousand moons” and will remain deluded.

The ting-ting hik custom was inspired by the “Serat Ambiya”, another Javanese religious work that said that Muhammad descended from Mount Nur after receiving the revelation of the Koran on malem selikuran. The Prophet was then welcomed by his close friends carrying torches to illuminate the road.

In the tradition of Surakarta Palace, those torches are symbolized by the ting lamps, while diverse offerings are presented as an expression of delight to hear the news of the revelation of the Koran.

Malem selikuran was also observed by the Wali Songa, the nine proselytizers who spread Islam throughout Java during the reign of Sultan Agung, creating harmony between the Islamic culture promoted by the wali (guardians) and the existing Hindu-Javanese tradition at the time.

During previous iterations of the ritual, hundreds would line the streets of Solo to watch as others joined the procession, lengthening it further.

Taman Sriwedari Hall would also be teeming with residents waiting for the arrival of the kirab — so many that palace servants would have to jostle with the crowd to enter the hall.

At rest: Participants sit after circling the palace complex as part of malem selikuran.

The ting-ting hik previously ended in a scrum as people attempted to grab some of the lavish palace offerings, thronging around the tumpeng rice cones as they were laid down, even before prayers were finished.

The more subdued ritual has disappointed some. The ting-ting hik has become less lively, as there’s no more tumpeng tussling. The cones are just distributed and their number is limited,” said one passerby on malem selikuran. “It’s not exciting,”

The city administration, hoever, is now apparently trying to compete with the palace. The day after the royal malem selikuran, officials staged their own procession of ting lamps.

That event, involving subdistrict tourism groups and community musical clubs members, attracted about 300 people who paraded about 3 kilometers from Surakarta City Hall to Taman Sriwedari Hall.

The second ritual was just a copy of the palace’s event, said Javanese cultural observer Sugiyatno Ronggojati. “The city government is derivative. The selikuran is a sacred ceremony that should be preserved, instead of holding a euphoric carnival.”

However, Widdi Srihanto, the head of the Surakarta Culture and Tourism Office, denied that the official event would sully the palace’s ritual. In his view, the city’s version was just a parade of oil lamps to mark the 21st night of Ramadhan. “It won’t rival the sacred malem selikuran ritual of the palace.”

— Photos By JP/Ganug Nugroho Adi

In Solo, a royal ritual marks a revelation | The Jakarta Post

 

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Boreh: Esoteric herbs for a healthy community

Trisha Sertori, Contributor, Klungkung | Body and Soul | Thu, August 15 2013, 12:12 PM

The process: More than two dozen herbs are mixed to make a boreh herbal treatment at Boreh Pijat in Ubud.

Deep within the bowels of Galiran market in Klungkung one can find boreh seller Made Prawata. Getting to his stall demands bustling through traders of all sorts along the road to the market, passing through the mud when it rains and jumping out of the way of minivans loaded to roof with produce from across the island.

This is a real Balinese market with something unexpected and unknown at every turn.

Prawata’s stall is in the market proper. It is dimly lit, with kiosks spilling over with red and black rice from Java, fresh soy beans, dried corn kernels, the makings for offerings and red tomatoes. Through it all, there is the pungent aroma of dried fish as you hunt for Prawata’s stall — a fixture here for several generations.

He sells assorted varieties of boreh, such as Sindrong Rangkep, a mix of dozens of herbs and spices believed to ease rheumatism; as well as Yag, to cure colds and flus; and others said to be good for skin ailments.

Under treatment: A boreh bath for health.

Prawata, however, says that he only sells remedies that have been specially prepared by holy men. “Priests buy the ingredients from me and then combine them into cures. It’s a special knowledge, but anyone who has that knowledge can make the boreh, not just priests.”

According to Prawata, the recipes for boreh were brought to Bali in the 13th century by Majapahit families as they fled Java. Their understanding of the benefits of herbs have been handed down through the ages, becoming what Prawata describes as a range of traditional herbal cures specific to Bali.

Made Sumendra of Boreh Pijat on Jl. Gotama in Ubud also believes in the restorative benefits of herbal cures and wants to encourage their use in the community. He is well known locally. With his late wife, Laurie Billington, he established the Pondok Pekak Library and Learning Centre two decades ago.

The primary goal of Sumendra in establishing Boreh Pijat was the community. “I am worried about the future. With every one doing things for tourists, there is no place for locals to get healed. I had a problem with my back and neck, and for a year I could not sleep.”

He tried many things, but to no avail, Sumendra said. “Then I heard that in Batuan village there was a guy who understood Boreh, pak Ketut Jaya. With his skills, I got better and at the same time I saw a chance to bring these skills to our community.”

Keeping costs down is key for reaching local residents. While the price of a massage, boreh treatment and herbal sauna is US$13.50, the boreh itself only costs $3.

“We need to have this type of treatment available — everybody gets stressed and they are busy so we opened this place especially for locals,” Sumendra says.

All in the family: Ketut Jaya was inspired to help people through boreh and massage after an act of kindness helped his mother.

Ketut Jaya, at 46, has been working with herbs since he was a small child. He learned to make herbal remedies known as jamu from his mother, whose life was saved, according to Ketut, by boreh and a simple act of kindness.

Ketut said that his mother, who had been ill for years before his birth, was eventually cured by herbal medicine from Griya Mambal.

“The story was that she had been tied up one day, because she was crazy, and she broke free and ran to Purnama Beach. There people say my mom drowned in the sea,” Ketut says. “She was washed back to shore by the waves and her clothes were torn off by the surf. She was naked. Some rice farmers saw this and one ibu felt sorry for my mom and wrapped her in a sarong.”

Things have been better since, he says. “From that story I have a goal to help people, because someone helped my mom.”

Hidden: A traditional boreh shop in Klungkung.

Traditional: The oldest boreh shop in Klungkung.

Despite learning to make jamu from his family, Ketut had to look outside to learn how to make boreh. While the techniques and herbal mixes are usually passed down through generations, much of what Ketut has learned has been through personal discovery. “Perhaps it is all upside down and this knowledge is now starting from me.

His esoteric boreh-and-massage system uses tools such a cow horn with a jade stone inset in, a shark’s tooth (used for reflexology) and stems from the sacred dadap tree that are placed between the toes to harness and remove negative energy.

The main thrust of boreh is to increase blood circulation, says Ketut. In the past, rice farmers would return from their fields cold and muddy. They would apply Boreh to warm themselves and reinvigorate their circulation.

“Boreh is the energy of life. ‘Bo’ in Balinese means ‘ready’. ‘Reh’ comes from the Balinese word for blood, ‘rah. So Boreh brings your blood to life. Your blood is alive and your body is moving. I did not learn this from books, but from a patient,” says Ketut.

Ketut and Sumendra bring this health system to the public in a small compound that has at its entrance a garden where people can learn about the dozens of herbs that go into the boreh and the others that are infused into the steam of the sauna, another ancient key to health.

“Sauna is a tradition in Bali. In the old days people would cover their skin with boreh then be wrapped in a pandanus leaf mat under the sun. That created a sauna,” says Sumendra, who with Ketut Jaya is doing good for the sake of his community.

—Images J.B.Djwan

Boreh: Esoteric herbs for a healthy community | The Jakarta Post

Pelindo to operate more cranes to achieve zero waiting time

Oyos Saroso H.N., The Jakarta Post, Bandarlampung | Archipelago | Thu, August 15 2013, 10:15 AM

State-run port administrator PT Pelindo II at the Panjang Port in Lampung will operate two Luffing cranes in an attempt to minimize queuing time at the port.

”Cargo volume has grown significantly at the Panjang Port. The cargo volume in 2010 stood at 4 million tons, while in the first six months of this year alone, the volume reached 4.5 million tons,” said Panjang branch PT Pelindo II general manager Doso Agung recently.

So far, the Panjang Port owns four Gantry Jib cranes from China with a capacity of 40 tons and 16 lift cycles per hour per unit.

Earlier, on Sept. 2, 2011, PT Pelindo II brought in a New Quay container Crane Twinlift from China with a capacity of 61 tons and 31 cycles/hour.

The loading and unloading of equipment is aimed at strengthening and complementing the available facilities at Panjang Port in terms of quantity and quality. They include equipment and facilities, such as two mobile cranes (65 tons), four Gantry Jib cranes (40 tons), four Hopper cranes, four Bucket cranes (20 tons), four Grab cranes (25 tons) two 5-ton forklifts and two 10-ton forklifts.

Doso said PT Pelindo II was currently renovating Dock B and D, spanning 300 meters.

”We expect the queue at Panjang Port would further ease. We hope to achieve zero waiting time in the near future at the port,” said Doso.

”To become an international port, PT Pelindo II should further modernize the Panjang Port. Besides modernizing facilities and equipment to improve services and productivity, PT Pelindo II would also revitalize the railway line from Pidada to Panjang Port, stretching at 3 kilometers.

The presence of modern equipment could minimize the ship queue time at the dock. In 2010, as many as 30 ships queued at the port daily. By 2012, only between three and six ships waited in line daily. Before the presence of the new equipment, the loading and unloading time was 30 tons per gang hour (TGH), compared to 130 TGH now.

PT Pelindo II is currently expanding the port area by reclaiming up to 40 hectares of the coastline.

With the revival of the railway line, cargo from areas across Sumatra could be transported by train directly to the port. Crude palm oil (CPO) from South Sumatra, Jambi and Bengkulu are no longer needed to be transported by tanker trucks, thus time and cost-efficient.

“We have begun the land acquisition. The railway line was actually built in the Dutch colonial era, but it has not been operated over the past dozens of years.” said Doso.

According to Doso, thanks to modernization of equipment and dredging of shipping pool around the port, or Mean Low Water Springs (MLWS) 14 meters deep, now large merchant ships from Europe can directly enter the Panjang Port so exporters no longer need to send export commodities from Tanjung Priok Port in Jakarta.

”Now, CPO consignments from Sumatra to Rotterdam can directly go through Panjang Port, given its current performance which is the best port in Sumatra and the main supporter of the Tanjung Priok Port,” said Doso.

The renovation and additional facilities at Panjang Port have also brought positive impacts on the number of ships arriving at the port. In 2011, 2,848 ships docked at the port, compared to 2,402 ships in 2010.

While the movement of containers in 2010 stood at 99,821 compared to 112,200 in 2011, while the cargo movement stood at 13 million tons in 2010 compared to 15 million tons in 2011.

http://www.thejakartapost.com/news/2013/08/15/pelindo-operate-more-cranes-achieve-zero-waiting-time.html

 

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Komodo dragons, dolphins featured at Taman Safari

Theresia Sufa, The Jakarta Post, Bogor | Jakarta | Thu, August 15 2013, 11:23 AM

Photogenic reptile: Visitors take pictures of a Komodo dragon exhibited at the Taman Safari Indonesia zoo in Bogor, West Java, on Wednesday. JP/Theresia Sufa


Taman Safari Indonesia in Cisarua, Bogor, recently opened a Komodo dragon exhibition and is now giving visitors the chance to swim with dolphins.

The exhibition, which covers a 2,000 square meter area, is the new home of six of the giant lizards, which are native to Flores, East Nusa Tenggara. Also displayed at the facility is the social and cultural conditions of their natural habitat.

“While protecting the Komodo dragon, through the display we are trying to educate visitors on how mining sites damaged the ecosystem of their habitat,” the park’s director Jansen Manansang told reporters last week.

The facility has a modern design, equipped with a room heater, air humidifiers and a hatchery to reproduce the lizards’ homes in the wild.

The park veterinarian, Retno Sudarwati, said the facility was a copy of the Komodo enclosure in a Prague zoo, the Czech Republic.

“We exchanged a Komodo with a giant turtle about ten years ago. We currently only have six while, to date, the Prague zoo has 95 Komodo dragons because they successfully breed the animal,” she said. “We work together with the zoo to preserve the lizards.”

Their activities in the wild have contracted due to human activities. The International Union for the Conservation of Nature has listed Komodo dragons as vulnerable due to this condition.

Taman Safari in Bogor now also provides a swimming arena where visitors can experience swimming with dolphins for enjoyment or for therapy.

Another new attraction is the Orangutan Corner, where visitors can interact with the apes.

Komodo dragons, dolphins featured at Taman Safari | The Jakarta Post

 

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BI turns to other measures to stabilize economy


Satria Sambijantoro, The Jakarta Post, Jakarta | Headlines | Fri, August 16 2013, 10:32 AM

Bank Indonesia (BI) has kept its key interest rate unchanged but has introduced new macroprudential measures to manage inflation and curb the high lending growth in the banking industry, which it fears could pose “huge risks” to the economy.

In its monthly board of governors’ meeting on Thursday, BI decided to keep both its interest rate and overnight deposit facility rate (Fasbi) unchanged at 6.5 percent and 4.75 percent, respectively.

The decision brought to a close the series of interest rate hikes performed by newly appointed Governor Agus Martowardojo, who had jacked up BI’s rate and Fasbi by a cumulative 75 basis points each since taking office in May.

Despite holding the rates, the central bank expressed confidence that its new macroprudential measures could curb credit growth and steer inflation to BI’s target of between 3.5-4.5 percent next year. In July, inflation skyrocketed to 8.6 percent, the highest level in four years.

BI says it will increase banks’ secondary reserve requirements (GWM) to 4 percent, from the current 2.5 percent, though keeping the primary GWM at 8 percent.

GWM regulates the minimum faction of funds banks must hold as reserves and increasing it will reduce money supply in circulation that can help contain inflationary pressures.

BI will also narrow the reserve requirements loan to deposit ratio (GWM-LDR) from 78-100 percent to 78-92 percent to encourage banks to channel prudent lending and improve their liquidity position. This means that, after the new rule applies, banks whose LDR level is higher than 92 percent will face penalties from BI.

As of June, Indonesia’s banking industry posted lending growth of 20.6 percent, the highest in southeast Asia. The LDR level — a measurement of banks’ liquidity and ability to expand their lending business — stood at 87.2 percent, a figure that BI described as “relatively high”.

“We want to discourage several banks and some sectors from posting a too-high lending growth [...]which could pose huge risks,” BI’s director of media relations, Peter Jacobs, said on Thursday.

“What we want to highlight here is that BI wants to ensure stability in the financial system by not taking only interest rate-related monetary policies, but also implementing macroprudential measures,” he said.

Within the next three months, the central bank will also issue the new Bank Indonesia Deposit Certificate (SBDI), a new form of debt papers that will come in shorter tenors and — unlike its predecessor SBI papers — are prohibited for foreign investors as they will be sold for domestic banks only.

Facing surging inflation and a weakening rupiah, the central bank was forced to hold its rates to prevent further softening in Indonesia’s economic growth, which stood at only 5.8 percent in the second quarter — the lowest level in nearly three years.

On Thursday, the rupiah fell 0.6 percent to trade at 10,350 per dollar, according to Bloomberg.

BI turns to other measures to stabilize economy | The Jakarta Post

Insight: Remarkable Indonesia? It needs to be more than a slogan


Sabam Siagian, Jakarta | Insight | Fri, August 16 2013, 10:15 AM

The Investment Coordinating Board (BKPM) has launched a worldwide campaign to attract foreign investment to Indonesia. Prominent international TV networks such as CNN and the BBC are carrying a paid commercial with alluring facts about Indonesia: a one trillion US dollar economy, national stability, friendly and smiling people, a large young work force and so on. The ad plays a catchy tune and flashes a sexy slogan: Remarkable Indonesia.

On the eve of the 68th anniversary of Indonesia’s independence let us be honest with ourselves and ask the introspective question: Given the opportunities available during the past 10 years of buoyant export figures — primarily caused by strong demand from the Chinese market; a stable domestic situation with no serious centrifugal political forces; and an overall conducive regional environment — is it not justifiable to expect a more robust economy?

Based on a respectable annual growth of, say, 8 to 8.5 percent – which according to prominent Indonesia corporate executives I have talked to is not an impossibility — with bold planning and vigorous project management, Indonesia could by now have a comprehensive infrastructure system that would benefit the rural population.

Instead, what we witness every day right here in the capital city are disturbing cases of incompetence and a half-hearted attitude toward tackling big projects.

I am specifically referring to the unfinished cross-city elevated non-toll road along Jl. Casablanca. You will have a clear overview if you look down from the upper floors of Siloam Hospital near the Semanggi crossing. The road has almost been completed, except at three points where there are still one-meter-wide gaps. It looks as if the construction company is holding the Ministry of Public Works and the Jakarta administration hostage. Apparently, their message is: “Give us the rest of the agreed money, or the road will remain unfinished.”

I talked with Governor Jokowi about a month ago and asked him about this unfinished project. He said that construction would resume soon after the State Audit Agency (BPK) had completed its investigation. Apparently, there had been accusations of irregularities in the tender process.

Whether the cross-city elevated non-toll road will simply be a white elephant project remains to be seen.

Remarkable Indonesia indeed!

The elevated non-toll road is just one example of ambitious infrastructure projects that are sluggishly implemented. The Semarang–Solo toll road that will have a strategic economic function for the densely populated province of Central Java is way behind schedule. The repeated excuse is difficulty in the land acquisition process.

But the media is not inquisitive enough to ferret out what is actually behind the problem. Is it perhaps due to the nephew of the regional head or the son of a public works official who are acting as middlemen and forcing the farmers to sell their pieces of land at a much lower price than that officially set by the government?

Then, there is the list of corruption cases – particularly those involving a senior police officer, a former Cabinet member and, quite recently, the head of the upstream oil and gas regulatory special task force – that are affecting the country. It is indeed a remarkable Indonesia, since people keep on smiling rather than organizing noisy anti-corruption rallies.

We better not continue this litany of woes or else we will become totally depressed. Apparently, with the growth of democracy in this country, corruption is also democratized and flourishing.

It would be helpful to place Indonesia’s string of woes in a wider historical framework. On the morning of Aug. 17, 1945, prominent nationalist leader Sukarno gave a short speech, saying, “Brothers and sisters, I have asked you to be present here to witness an event of supreme importance in our history.” Sukarno talked slowly in his baritone voice, stressing each word he uttered. “For decades the Indonesian people have struggled to achieve the independence of our country […] Our waves of nationalism have experienced the rise and fall of the tides. However, our spirit remains determined to achieve our goals.”

Before reading his famous proclamation, he closed his speech, saying, “Now comes the moment when we alone are responsible for the destiny of our people and our country. Only nations that have the audacity to determine their own destiny can become strong nations.”

That wider historical framework outlined by Sukarno strengthens and inspires us to continue our Sisyphean effort to create a just, prosperous and strong Indonesia as espoused by the founding fathers of our republic. We must have the conviction that someday the Indonesian people will manage to place that boulder on top of the hill.

Seven years ago on the eve of Indonesia’s 60th Independence Day, this newspaper ran a commemorative editorial. We would like to quote the closing lines, since, surprisingly, they are still relevant today.

“Today, as we mark our 60th [or our 68th] Independence Day, it is worth asking ourselves: What have we really achieved as a nation?”

The honest answer is a mixture of gratitude, disillusionment and hope – gratified because we have come this far in laying down the foundations of democracy, but also disillusioned and at times even despondent because we have squandered historical opportunities to push Indonesia forward.

But we are also hopeful that there are many Indonesians who are truly and sincerely committed to the goals of a just and prosperous nation and who are working hard to achieve them. It is to them that we turn as we mark Independence Day.

The writer is senior editor at The Jakarta Post and its founding chief editor (1983-1991). He has served as ambassador to Australia.

http://www.thejakartapost.com/news/2013/08/16/insight-remarkable-indonesia-it-needs-be-more-a-slogan.html

Bali eyes Middle East tourist market


by Wasti Atmodjo on 2013-08-15

Bali’s tourist industry is now working to expand its reach to the Middle East.

Bambang Sudiono, owner of a travel agency in Bali, said that people in the Middle East now had great interest in overseas trips given their economic condition.

“Visitors from this region are still limited in number if compared with those coming from conventional markets, such as Europe, Asia and Australia. Yet, the trend keeps increasing,” Sudiono said.

Visitors from the Middle East are mostly executives, businessmen and traders, with some holidaymakers and honeymooners.

Sudiono said his travel agency had been penetrating the Middle Eastern market for the last five years. The company reaches out to potential clients from Qatar, Kuwait, Lebanon and the United Arab Emirates.

The most popular time for Middle Eastern visitors to travel was between February and March, with average stays of around seven days and six nights per trip, generally at star-rated and luxury hotels in Bali.

The majority of Middle Eastern visitors are also big spenders during their overseas vacation.

“Honeymooners are the most lucrative market at present. We have to seriously develop this market segment,” he said.

One of the obstacles is limited direct flights from Middle Eastern airports to Bali.

“A number of Middle Eastern airlines have already opened direct flights to Jakarta, some have onward flights via Kuala Lumpur or Singapore to Denpasar,” he said.

Another problem is food. Visitors from this region are mostly Muslims and do not consume pork.

“We have been very careful in selecting eating establishments for these particular guests. We can only recommend restaurants that have obtained the Halal certification from the Indonesian Ulema Council [MUI] stating that all the foods are free from pork meat and fat,” he said.

Bagus Sudibya, a prominent tourism practitioner, also suggested that travel agencies and the industry diversify to reach out to new regions, such as the Middle East, Latin America and Africa.

“Middle Eastern countries are unexplored and a potential market. It would be very good for Bali’s tourism to seriously develop these markets,” Sudibya stated.

Bali Tourism Agency data shows the island welcomed 8,079 visitors in 2012 from the Middle East, or 0.29 percent of the total 2.89 million foreign arrivals that year.

Meanwhile, in the January-June period this year, there had already been 8,775 visitors from the Middle East, or 0.59 of the total 1.49 million foreign tourist arrivals.

“There was a very significant increase in Middle Eastern tourists in the first six months of 2013. The number has surpassed the total number of Middle Eastern tourists to Bali in 2012,” stated Ida Bagus Kade Subhiksu, head of Bali Tourism Agency.

“It would be a positive move if Bali continued to promote its tourism assets in the Middle East,” Subhiksu said.

http://www.thejakartapost.com/bali-daily/2013-08-15/bali-eyes-middle-east-tourist-market.html

 

[Nike]

Film review: ‘After 15
Years’? Or a year before
2014?


Windu W. Jusuf, Contributor/The Jakarta Post | Feature | Fri, August 16 2013, 12:36 PM

Showdown: Archival footage used in Setelah 15 Tahun shows police lining the streets during a demonstration. Courtesy of Tino Saroengallo

If I were to name a recent Indonesian film that has been so ambitious in bringing up all of the nation’s political problems, it would be Setelah 15 Tahun (After 15 Years).

The documentary touches upon a wide array of subjects, ranging from rampant poverty in the post-Soeharto era, corruption, the proliferation of religious mass organizations, sectarian conflict, unresolved human rights abuse cases all the way to the return of New Order generals to national politics. The 93-minute film is a chronicle of Indonesia’s failure to keep pace with the political agenda of Reform.

Narrated by actor and comedian Tora Sudiro (recently seen in Monty Tiwa’s Get M4rried), Setelah 15 Tahun begins with the 1997 Asian economic crisis, using footage from television, among other sources, to depict key events in Soeharto’s downfall and the rise of Reform, such as the riots in several cities, the shooting of the Trisakti students, the May riots and eventually the general’s resignation.

Tora Sudiro: The famous actor is also the narrator of Setelah 15 Tahun. Courtesy of Tino Saroengallo

The director, Tino Saroengallo, made another documentary on Reform in 2004 titled The Student Movement in Indonesia, using similar techniques to capture the spirit of the time. However, given that the main content of Setelah 15 Tahun focuses on contemporary politics, this documentary is different — partly a pilgrimage, partly a bold statement that the struggle should continue. Mostly, however, it is a pessimistic look at Indonesia’s political future in the near term.

Tino interviews a host of individuals, including activists, students, artists, an economist, a libriarian and the parents of several missing people. Some are known for their activism in 1998 and figured in Student Movement. Others, judging from their talk, are younger university students who have no direct experience with the events of 1998.

Although many of the interviewees are publicly known, none are identified by name, as if to imply that the regime’s collapse was due to the collective work of people from all walks of life. In doing so, the documentary suggests that the problems that started the Reform movement still persist 15 years later, and continue to involve every member of society — whether or not they were engaged in bringing Soeharto down in 1998.

As most of the interviewes tell us, the heyday of 1998 has turned into a political loss for pro-democracy activists — and a victory for New Order cronies. Worse still, some of the 1998 activists have been depicted as joining their former archenemies, namely, the Golkar Party and its splinter groups such as Nasdem, Gerindra and Hanura—two of which are new parties led by generals dogged by a host of alleged human rights violations.

As one former activist said in the film: “During the Soeharto era, the pro-democracy movement was defeated by the M-16 [US-made rifle], but it now has been defeated by 16M [Rp 16 million]”. Seen through Tino’s lens, Reform is a revolution betrayed.

Among the issues highlighted by Tino is the successful comeback of New Order generals. Referencing the recent Cebongan prison massacre (where four detainees were allegedly murdered by Army Special Forces commandos in their cell), the documentary looks at the generals who were never tried for alleged human hights violations. Within only 15 years, these generals have returned to the stage. Reinventing themselves as populist or nationalist leaders to court those disappointed with the failure of successive post-Soeharto administrations to deliver prosperity, the generals have launched campaigns that have won the hearts and minds of the masses.

Director: Tino Saroengallo offers his critique of the progress made by the reform movement in the documentary Setelah 15 Tahun, currently screening at selected cinemas. Courtesy of Tino Saroengallo

A prominent economist interviewed for the film says that if the three political parties form a coalition for next year’s election, it will be the “official comeback” of the New Order. Like it or not, as several interviewees suggest, the generals have shrewdly exploited the democratic process that they once stood in sharp opposition to — and for which they have never fought.

However, as a political documentary, Setelah 15 Tahun is not really a thorough observation of contemporary Indonesian politics. Whereas the title might suggest a retrospective look at Reform, the film quickly becomes preoccupied with the serial commentary of older activists, who, in pessimistic tones, remind us of the truths that we are all too familiar with.

The interviews are themselves problematic. The film does not bother to cover both sides. For example, no interviews are made with Reform comrades who are now in the Golkar party. Did they jump ship for their own well-being? Or was that all part of their political strategy in the first place? We have no idea, as we are left with no further explanation on why and how such things happened.

While arguing that Reform has been hijacked by elites with ties to the New Order, Setelah 15 Tahun does not provide any counterarguments. Yes, the film warns of the emergence of generals through electoral politics. This is the conventional wisdom. However, the film would have done better to explain why and how this has happened.

Focusing too much on hard facts about today’s predicament, the film is more concerned with next year — an election year — than with “fifteen years after 1998”.

The film provokes. It agitates. But, unfortunately, it’s lack of nuance fails to offers us new insights.

___________________

The author is the editor of Cinema Poetica


Setelah 15 Tahun is screening at selected Cinema 21 theaters in Bekasi, Jakarta, Jogjakarta, Makassar and Tangerang. Visit facebook.com/Setelah15Tahun for more details

Film review:

RI diaspora to discuss
how it can give back


Yohanna Ririhena, The Jakarta Post, Jakarta | World | Fri, August 16 2013, 12:09 PM


More than 3,000 Indonesian living overseas are expected to discuss concrete initiatives and tangible efforts to helps create a better Indonesia, in the second Congress of the Indonesian Diaspora (CID).

The congress will be held at the Jakarta Convention Center from Friday to Tuesday, taking the theme of “Indonesian Diaspora Return to Their Homeland”

Head of the diaspora desk at the Indonesian Foreign Ministry Wahid Surpiyadi confirmed on Friday that more than 3,000 Indonesians living overseas in 57 countries had registered to attend the congress.

“The second congress is expected to achieve concrete initiatives aimed at increasing the diaspora’s contribution to nation building,” he told The Jakarta Post.

The timing of the second congress coincided with the Independence Day celebration, allowing the Indonesian diaspora to experience the Aug. 17 festivities.

“At least 90 diaspora representatives from 26 countries will attend the Independence Day ceremony at the State Palace on Aug. 17,” Wahid added.

President Susilo Bambang Yudhoyono is scheduled to give opening remarks on Monday, while noted figures such as former president B.J. Habibie, World Bank managing director Sri Mulyani Indrawati, CEO of Bank National Indonesia (BNI) Gatot M. Suwondo, CEO of Marvell Technology Group Sehat Sutardja, and CEO of Crown International Holdings Group Iwan Sunito, will give presentations.

There are 11 task forces established, from education, energy, cities worthy to live in, cuisine, business and investment, air space, public health services, green economy, migrant workers, immigration and citizenship, and science and innovation.

Each task force will cooperate with a related ministry, NGO and regional administration to discuss concepts and programs, and is expected to come up with policy recommendations.

Indonesian Ambassador to the US Dino Patti Djalal, who played a key role in organizing the first congress, defined the Indonesian diaspora as Indonesian citizens who live and work abroad, as well as those who were born Indonesian but had taken other nationalities. Indonesian law does not permit dual nationality.

It is estimated that there are around 8 million Indonesian diaspora living abroad, in over 120 countries.

Mohamad Al Arief, the president of the Indonesian Diaspora Network (IDN) in the US, said there were around 4.6 million Indonesians living overseas who were struggling to find a way to contribute to the nation’s development, as they received no demands.

According to the World Bank, around 6.5 million Indonesian migrant workers remitted US$7.2 billion, or 1 percent of country’s gross domestic product (GDP) 2012. Indonesia is the third largest recipient of remittances in
Southeast Asia after the Philippines ($24.45 billion) and Vietnam ($10 billion).

Malaysia has the largest Indonesian diaspora, with around 2.5 million legal and illegal workers. Saudi Arabia has more than 1 million Indonesians, both legal and illegal, while the US has around 150,000.

The CID is aimed at inspiring Indonesian diaspora communities to connect and unite into one big community and to create a tangible force in order to achieve a better Indonesia.

The first CID was held in Los Angeles, California on July 6-8 last year, and agreed on founding the network of the Indonesian Diaspora.

CID will be a landmark event that can create a paradigm shift in what it means to be part of the Indonesian diaspora in the 21st century.

In the past, the focus has primarily been on the role of Indonesian migrant workers, who remain an essential part of the Indonesian diaspora, but who do not reflect the full, diverse spectrum of the Indonesian diaspora across the globe.

http://www.thejakartapost.com/news/2013/08/16/ri-diaspora-discuss-how-it-can-give-back.html

 

[Nike]

4,500 to join Independence
Day Run in Jakarta


The Jakarta Post, Jakarta | Jakarta | Thu, August 15 2013, 9:47 PM

As many as 4,500 people will join the Independence Day Run to observe the 68 Independence Day of Indonesia on Aug. 25 in Jakarta, an official says.

The running competitions will be divided into two categories, the 17 and Eight kilometers. The event was organized by the State Palace in collaboration with the Indonesian Military, the National Police, related ministerial offices and companies.

The 17 and eight represents the day and the month of Indonesia independence, which falls on August 17.

“Previously, Independence Day events were always being held at the Palace complex. But this year we open it for the public [at the National Monument ‘Monas’ square compound in Central Jakarta]. Anyone can join it,” the head of the committee Brig. Gen. Toto Rianto of the Jakarta Military Command said in a press statement as quoted by Tribunnews.com on Thursday.

4,500 to join Independence Day Run in Jakarta | The Jakarta Post

 

[Nike]

Independence demands political
and economic unity


Donny Syofyan, Padang, West Sumatra | Opinion | Fri, August 16 2013, 11:18 AM

Indonesians will celebrate their 68th Independence Day on Aug. 17. This year’s Independence Day commemoration is occurring close to the spirit of Idul Fitri festivities, which took place a week before.

We ought to be thankful for a mixture of two noteworthy matters: celebrating the gratitude of Idul Fitri and expressing a mature commemoration of the country’s freedom.

One of the chief stumbling blocks Indonesians are dealing with now is the discrepancy between political advancement and economic development. An Indonesian citizen knows that the unitary state of the Republic of Indonesia is politically acknowledged across the archipelago from Sabang to Merauke. This is a principal declaration that Indonesia’s political unity is uncompromised in people’s minds.

Yet the political accord becomes susceptible while the lion’s share of economic growth and prosperity is unequally distributed throughout the nation. Imbalances in infrastructure development, limited access to education and small- and medium-sized enterprises’ weak market penetration strategies across different regions in the country, to mention just a few, increasingly substantiate Indonesia’s obvious economic incongruity.

This challenging economic approach will slowly but surely put political stability at stake due to regional dissatisfaction.

In an attempt to contextualize the very essence of liberty, political and economic unity is then essential for subsequent rationales. First, it is the key to impartial development leading to central government legitimacy and widespread prosperity. It is public knowledge that national development has been and is still concentrating on Java. This island is densely populated on the strength of economic attraction, as the saying goes: “Where there is sugar, there are ants.”

While political integration is imposed nationwide by the government, economic development remains focused on certain areas. Prosperity is out of the reach by reason of economic injustice.

Additionally, such economic inequality is detrimental to demographic effects prompting constant rural to urban migration, movement of people from other parts of the country to Java, and a periphery to center exodus. Indonesia needs affirmative action on economic engineering that shifts economic improvement to peripheral areas and outside Java. Endeavors to empower regions for economic interest must crack down on comparative advantages engaging in financial and managerial initiatives. Otherwise, they are nothing more than politicians’ rhetoric.

Agriculture and creative industries could be remedies for regionally economic intensification. They might grow to the full providing local leadership is entrusted to entrepreneurs rather than to career bureaucrats and political appointees. The Success stories of Joko Widodo (former mayor of Surakarta in Central Java) and Amran Nur (former mayor of Sawahlunto in West Sumatra) are clear evidence of entrepreneurship-based local governance. They fathom that independence is not simply a matter of political freedom but is also inseparably associated with the public well-being.

Second, political and economic unity is considerably significant in terms of setting off a wave of nationalistic spirit. A massive crisis of confidence in the ruling authority is due to a strong emphasis on political slants when it comes to addressing public issues. This is definitely in contradiction to an economic approach. While the former defines people as being friend and foe, the latter creates multiple friends and less rivals.

Elites’ political acts have failed to awaken public patriotism on account of their interest in power sharing and political ceremonies, such as solemn official speeches and flag ceremonies. It does not mean, for example, that Indonesian citizens should no longer participate in flag ceremonies. People should not be judged as unpatriotic simply because they decide to enjoy the day doing other things. Each has his or her own ways of honoring Indonesia.

It is through the economic language of prosperity that a sense of patriotism turns into populism. Separatist movements in some areas — Maluku and Papua — are attributable to the government’s political suppression and economic exploitation, not just with the separatists’ being less knowledgeable about Indonesia’s historical unity. Populist nationalism, which is cushioned by economic prosperity, cannot fully count on political procedures owing to its narrow-mindedness and fragmented nature.

Third, political and economic integration conforms to Indonesia’s competitiveness. Based on the World Economic Forum’s (WEF) 2012-2013 report, Indonesia’s competitiveness ranking fell to 50 out of 144 countries. Bribery and red tape, which have been contributing factors to the decline, cannot be separated from the soaring trend of politicized government offices and service delivery. On the one side, politicization takes good-governance out of the country’s bureaucracy. On the other, it sees corporate culture exerting stress on economic yardsticks such as efficiency and effectiveness, which are central to enhancing productivity and igniting creativity.

One effort to increase the country’s competitiveness rests on the authority’s political will to apply good governance principles in the public sector. It is influential in paving the way for burgeoning competitiveness in social relations. The desire for competition should derive from a bottom-up approach so that productivity and creativity morph into the populist domain.

This is particularly true as future networking is largely swayed by people to people roles as opposed to government to government relations at the international level.

This is the core essence of liberty that Indonesian people aspire for. Long live the great Indonesia!

The writer is a lecturer at the Faculty of Cultural Sciences at Andalas University, Padang

Independence demands political and economic unity | The Jakarta Post