Indonesia Economy Forum

[MarveL]

nah is nothing compared what Mega left for SBY a while back when he is took the office for the first time,

come on, with a one trillion economy, positive outlook from three major credit rating companies, 5 to six per-cent yearly economic growths, growing tax to GDP ration income, healthy major BUMN companies such Pertamina, PLN, PTPN, Semen Indonesia, Wijaya Karya and so on, ever growing middle class, you can't call it a fiscal and financial mess. Yes i do agree if SBY can't handle subsidies issue properly but you should take a notice who in parliament aggressively confront SBY decision when he decided to reduce fuel subsidies a while back? PDI-P the same party who bring Jokowi into office today.

BBM ini sekarang sudah agak kacau, di jakarta mungkin tidak masalah di daerah antrian sudah dimana2, banyak pom bensin yang sudah kehabisan premium. Di pantura, jawa tengah, jawa timur, bahkan jogja....

Masku kebetulan punya pom SPBU, kemaren jumat berangkat ke Haneda untuk meeting untuk proyek real estate di dago atas, nitipin ke istrinya order premium karena tanki premium stoknya cuma cukup sampe sabtu... hehe... ditolak ordernya. Sekarang ternyata premium sudah pakai quota. makanya banyak pom bensin yang kosong. Begitu tahu banyak pom bensin yang kosong yang beli tambah banyak... makanya tambah kacau....

 

[Nike]

Indofood to Sell Minority Stake In Noodle Maker Nissinmas
By Vanesha Manuturi on 08:00 pm Aug 20, 2014

Jakarta. Indofood Sukses Makmur, the world’s biggest noodle maker, plans to sell its minority stake in Nissinmas to Japan’s Nissin Foods this year.

In a statement filed at the Indonesia Stock Exchange (IDX) on Wednesday, Indofood detailed its intention to sell some 11.7 million shares, or 49 percent of its stake in Nissinmas, for $5.4 million.

“The company has signed a conditional sale and purchase agreement with Nissin Food,” the statement read, without clarifying why Indofood decided on the move.

Nissinmas’ instant noodle brands include Nissin Cup Noodles, Top Ramen and Nissin Mi.

The instant noodle maker posted Rp 5.8 billion ($496,000) in sales during the first half of the year.

The figure represents a 24 percent year-on-year drop from Rp 7.6 billion.

Meanwhile, profit at Indofood grew 35 percent to Rp 2.3 trillion in the January-June period, due largely to a 27 percent jump in revenue to Rp 34 trillion.

The leading Jakarta-based food giant controls five business units, which dabble in various consumer products, wheat flour, agribusiness, distribution and vegetable processing.

Its subsidiary, Indofood CBP Sukses Makmur, recently announced it had booked Rp 10.1 trillion from its sales of instant noodles, making up about 65.2 percent of Indofood CBP’s total sales.

The company’s dairy products made up 18 percent of total sales, while the remaining consisted of a mix of its snacks, beverages and food flavoring products.

Indofood CBP contributed approximately 44 percent of Indofood’s total net sales in the first half of this year, followed by Indofood’s wheat unit Bogasari and its agriculture unit at 24 percent and 17 percent respectively.

Shares of Indofood Sukses Makmur increased 1.07 percent to reach Rp 7,075 on the IDX on Wednesday, outpacing the 0.5 percent gain in the local bourse’s main stock gauge.

Indofood is controlled by the country’s diversified Salim Group, which also controls Indomobil Sukses International, the country’s second-biggest automotive manufacturer.

Indofood to Sell Minority Stake In Noodle Maker Nissinmas | The Jakarta Globe

 

[MarveL]

nah is nothing compared what Mega left for SBY a while back when he is took the office for the first time,

come on, with a one trillion economy, positive outlook from three major credit rating companies, 5 to six per-cent yearly economic growths, growing tax to GDP ration income, healthy major BUMN companies such Pertamina, PLN, PTPN, Semen Indonesia, Wijaya Karya and so on, ever growing middle class, you can't call it a fiscal and financial mess. Yes i do agree if SBY can't handle subsidies issue properly but you should take a notice who in parliament aggressively confront SBY decision when he decided to reduce fuel subsidies a while back? PDI-P the same party who bring Jokowi into office today.

Cutting the controversial fuel subsidy is also necessary. With the cut, Indonesia could save 300 trillions of rupiah to spend on developing sectors that will benefit the country in the long term, such as infrastructure and education. This move surely is politically unfavorable, yet essential for the economy. One needs to forgo the short-term benefits, for the greater good of the future.

 

[Nike]

Cutting the controversial fuel subsidy is also necessary. With the cut, Indonesia could save 300 trillions of rupiah to spend on developing sectors that will benefit the country in the long term, such as infrastructure and education. This move surely is politically unfavorable, yet essential for the economy. One needs to forgo the short-term benefits, for the greater good of the future.

i am agree with this statement, but i am very disagree with your statement which said Yudhoyono leave a fiscal mess for his successor. All of macro and micro economy indicator and government balance sheet doesn't prove that, and one thing must be taken into notes, it is PDI-P insanity who actually drive the current government not to opt for reducing fuel subsidies as a means to create a large fiscal space for the last four year. Yet today they crying out loud begging SBY to reduce fuel subsidies just only when their cadre become a President, quite hypocrite indeed.

 

[MarveL]

i am agree with this statement, but i am very disagree with your statement which said Yudhoyono leave a fiscal mess for his successor. All of macro and micro economy indicator and government balance sheet doesn't prove that, and one thing must be taken into notes, it is PDI-P insanity who actually drive the current government not to opt for reducing fuel subsidies as a means to create a large fiscal space for the last four year. Yet today they crying out loud begging SBY to reduce fuel subsidies just only when their cadre become a President, quite hypocrite indeed.

I second that, it will be like a joke when PDIP now endorse to cut the subsidy, eventhough they rejected it while ago. Not only PDIP: PKS either.

Btw that was headline for the graph , i cut it off:

SBY leaves fiscal mess for Jokowi
Satria Sambijantoro and Bagus BT Saragih, The Jakarta Post, Jakarta | Headlines | Sat, August 16 2014, 9:26 AM

President Susilo Bambang Yudhoyono has effectively handed a poisoned chalice to his successor president-elect Joko “Jokowi” Widodo as the former backed off from implementing much-needed fiscal and energy reforms in his final budget.

Spending on fuel subsidies will rise by an eye-watering Rp 44.6 trillion (US$3.82 billion) to Rp 291.1 trillion, a carryover from this year’s spending, according to the 2015 state budget note presented by Yudhoyono to lawmakers on Thursday.

While acknowledging that the fuel subsidies were poorly targeted, as they are disproportionately enjoyed by the rich, Yudhoyono argued that he encountered “not a little political resistance” when he previously cut the subsidy and raised fuel prices.

“The budgeting policy faces the predicament of political acceptance of sensitive and unpopular moves, such as the reallocation of fuel and electricity subsidies to poorer citizens,” Yudhoyono said.

The 2015 state budget “assumes no adjustment in fuel prices, which will be the full responsibility of the new government”, Finance Minister Chatib Basri explained.

Coordinating Economic Minister Chairul Tanjung referred to the state budget as “business as usual” as the current administration would not be pushing for strategic programs.

From the total central government spending of Rp 1,379 trillion in next year’s proposed budget, at least 31.5 percent will be spent on subsidies alone, which includes fuel, electricity and non-energy subsidies, while 11 percent will be allocated to debt payments.

Funds for transfers to regions, which have been frequently criticized for a lack of supervision and being prone to corruption by regional leaders, topped a record high of Rp 631 trillion, or 31 percent of the total state budget of Rp 2,019 trillion.

The budget means that Jokowi will not have sufficient fiscal space for productive, growth-generating spending, hindering his ambition to post 7 percent economic growth.

The fiscal deficit — the gap between revenue and spending — will be 2.3 percent of gross domestic product (GDP). By law the deficit must not breach 3 percent of GDP.

The proposed 2015 budget assumes annual economic growth of 5.6 percent, inflation at 4.4 percent, a rupiah exchange rate of 11,900 per US dollar and oil costing $105 per barrel with 845,000 barrels lifted per day.

Given the limited room for reform, Jokowi acknowledged that his campaign pledges on development programs might not be wholly accommodated in the budget currently being deliberated by lawmakers.

Jokowi said he planned to talk to Yudhoyono later this month to discuss the budget in order for him to be able to slip in reforms before the House of Representatives passed the budget at the end of September.

Yudhoyono’s administration is set to leave office on Oct. 20 while the term for the current legislators will end on Oct. 1. “The priority is to get my programs on the basic sectors, such as education, health care, fisheries and agriculture, into the 2015 state budget,” Jokowi said on Thursday.

“We will try our best to include the programs in the budget. If we fail to do so, we will revise it immediately,” he said, adding that he would reject any back-room deals with Yudhoyono in exchange for including his reforms in the budget deliberation.

Andi Widjajanto, a member of Jokowi’s transition team, said that revision of the budget could begin on Jan. 2, 2015, the first day the budget comes into effect.

“Jokowi’s pro-people and reform programs could not be accommodated in the 2015 state budget as it was drafted by Yudhoyono’s government and is being deliberated by the current legislators,” he said.

Andi said the transition team’s planned meetings with the current administration would focus on creating “sufficient and realistic” fiscal space in the budget to provide leeway for Jokowi’s agenda.

“We don’t have sufficient time to scrutinize all of the thousands of items in the draft state budget. Thus, we will only focus on dealing with the macro factors to ensure that the budget is fiscally realistic and that we will not be trapped by overly optimistic assumptions,” Andi said.

He added that Jokowi’s team had also been simulating several economic scenarios involving factors such as deficits, economic growth, tax ratios and the rupiah exchange rate.

“The simulations are aimed at preventing Jokowi getting shocks if the real economic situation turns out not to be as projected,” Andi said, adding that the team had also prepared alternative sources to finance Jokowi’s programs should the budget fail to provide for them.

SBY leaves fiscal mess for Jokowi | The Jakarta Post

 

[Nike]

I second that, it will be like a joke when PDIP now endorse to cut the subsidy, eventhough they rejected it while ago. Not only PDIP: PKS either.

Btw that was headline for the graph , i cut it off:

SBY leaves fiscal mess for Jokowi
Satria Sambijantoro and Bagus BT Saragih, The Jakarta Post, Jakarta | Headlines | Sat, August 16 2014, 9:26 AM

President Susilo Bambang Yudhoyono has effectively handed a poisoned chalice to his successor president-elect Joko “Jokowi” Widodo as the former backed off from implementing much-needed fiscal and energy reforms in his final budget.

Spending on fuel subsidies will rise by an eye-watering Rp 44.6 trillion (US$3.82 billion) to Rp 291.1 trillion, a carryover from this year’s spending, according to the 2015 state budget note presented by Yudhoyono to lawmakers on Thursday.

While acknowledging that the fuel subsidies were poorly targeted, as they are disproportionately enjoyed by the rich, Yudhoyono argued that he encountered “not a little political resistance” when he previously cut the subsidy and raised fuel prices.

“The budgeting policy faces the predicament of political acceptance of sensitive and unpopular moves, such as the reallocation of fuel and electricity subsidies to poorer citizens,” Yudhoyono said.

The 2015 state budget “assumes no adjustment in fuel prices, which will be the full responsibility of the new government”, Finance Minister Chatib Basri explained.

Coordinating Economic Minister Chairul Tanjung referred to the state budget as “business as usual” as the current administration would not be pushing for strategic programs.

From the total central government spending of Rp 1,379 trillion in next year’s proposed budget, at least 31.5 percent will be spent on subsidies alone, which includes fuel, electricity and non-energy subsidies, while 11 percent will be allocated to debt payments.

Funds for transfers to regions, which have been frequently criticized for a lack of supervision and being prone to corruption by regional leaders, topped a record high of Rp 631 trillion, or 31 percent of the total state budget of Rp 2,019 trillion.

The budget means that Jokowi will not have sufficient fiscal space for productive, growth-generating spending, hindering his ambition to post 7 percent economic growth.

The fiscal deficit — the gap between revenue and spending — will be 2.3 percent of gross domestic product (GDP). By law the deficit must not breach 3 percent of GDP.

The proposed 2015 budget assumes annual economic growth of 5.6 percent, inflation at 4.4 percent, a rupiah exchange rate of 11,900 per US dollar and oil costing $105 per barrel with 845,000 barrels lifted per day.

Given the limited room for reform, Jokowi acknowledged that his campaign pledges on development programs might not be wholly accommodated in the budget currently being deliberated by lawmakers.

Jokowi said he planned to talk to Yudhoyono later this month to discuss the budget in order for him to be able to slip in reforms before the House of Representatives passed the budget at the end of September.

Yudhoyono’s administration is set to leave office on Oct. 20 while the term for the current legislators will end on Oct. 1. “The priority is to get my programs on the basic sectors, such as education, health care, fisheries and agriculture, into the 2015 state budget,” Jokowi said on Thursday.

“We will try our best to include the programs in the budget. If we fail to do so, we will revise it immediately,” he said, adding that he would reject any back-room deals with Yudhoyono in exchange for including his reforms in the budget deliberation.

Andi Widjajanto, a member of Jokowi’s transition team, said that revision of the budget could begin on Jan. 2, 2015, the first day the budget comes into effect.

“Jokowi’s pro-people and reform programs could not be accommodated in the 2015 state budget as it was drafted by Yudhoyono’s government and is being deliberated by the current legislators,” he said.

Andi said the transition team’s planned meetings with the current administration would focus on creating “sufficient and realistic” fiscal space in the budget to provide leeway for Jokowi’s agenda.

“We don’t have sufficient time to scrutinize all of the thousands of items in the draft state budget. Thus, we will only focus on dealing with the macro factors to ensure that the budget is fiscally realistic and that we will not be trapped by overly optimistic assumptions,” Andi said.

He added that Jokowi’s team had also been simulating several economic scenarios involving factors such as deficits, economic growth, tax ratios and the rupiah exchange rate.

“The simulations are aimed at preventing Jokowi getting shocks if the real economic situation turns out not to be as projected,” Andi said, adding that the team had also prepared alternative sources to finance Jokowi’s programs should the budget fail to provide for them.

SBY leaves fiscal mess for Jokowi | The Jakarta Post

The Jakarta Post is notorious for being an anti-SBY government media and has fully supportive for PDI-P, if you want my credence to saying this you can contact Anggi Maria Lubis at her mail she is one of the Jakarta Post reporter, and she told me herself (she is one of my colleagues).

The Jakarta Globe is quite more moderat than the Jakarta Post

 

[guitar01]

Although it's necessary, It's not that simple to pull the plug on fuel subsidy. Inflation would soar, and the central bank will have to raise their rate, then the economy would slow down even further.
I personally think SBY (and CT) did a very good job with the economy, especially recent mining and gas contract renegotiations. A recent article suggests that Jokowi might "inherit" an economic boom.

 

[DarkElf]

Although it's necessary, It's not that simple to pull the plug on fuel subsidy. Inflation would soar, and the central bank will have to raise their rate, then the economy would slow down even further.
I personally think SBY (and CT) did a very good job with the economy, especially recent mining and gas contract renegotiations. A recent article suggests that Jokowi might "inherit" an economic boom.

As other say, temporary pain for long term gain especially if our government can divert the subsidy money for building infrastructure. Because if we do nothing and keep the subsidy the alternative is long term bleeding. Easy gain example, plenty of our smaller harbor don't have crane for loading/unloading process, that's mean every single cargo ship that using the harbor must install their own crane on their ship, taking the precious cargo space/weight + adding cost for buying and installing the crane, making the cost for transport more expensive for everyone involved. As always it's cheaper to buy 1 huge crane that can be used for everyone than buying and installing several dozen small crane or manual labor.

I admit SBY did decent job for our economy, but the boom for our economy is over since last year because the US fed going to stop printing and China economy slowdown.

 

[Nike]

As other say, temporary pain for long term gain especially if our government can divert the subsidy money for building infrastructure. Because if we do nothing and keep the subsidy the alternative is long term bleeding. Easy gain example, plenty of our smaller harbor don't have crane for loading/unloading process, that's mean every single cargo ship that using the harbor must install their own crane on their ship, taking the precious cargo space/weight + adding cost for buying and installing the crane, making the cost for transport more expensive for everyone involved. As always it's cheaper to buy 1 huge crane that can be used for everyone than buying and installing several dozen small crane or manual labor.

I admit SBY did decent job for our economy, but the boom for our economy is over since last year because the US fed going to stop printing and China economy slowdown.

Nah, we had another strong point in which we are not utilize it at best, that's local consumption. We can use those cards more efficiently by building more infrastructure, building more appropriate logistics line and supply to fulfill the needs of our peoples in our vast islands chain. And we still can expanding our export growth into our non-traditional export destination countries, Africa, South America, and Middle East countries is an untapped potential market for us. Involving and attracting private companies, local or foreign companies to build more infrastructure project is can be done with giving more incentive to them, in law, tax, and game rules that's all must be reviewed by the new government and to be fixated. Then our government can trying to cut the fuel subsidies to give them more incentive and security points if government had more fiscal room and space to finance such projects.

 

[MarveL]

The Jakarta Post is notorious for being an anti-SBY government media and has fully supportive for PDI-P, if you want my credence to saying this you can contact Anggi Maria Lubis at her mail she is one of the Jakarta Post reporter, and she told me herself (she is one of my colleagues).

The Jakarta Globe is quite more moderat than the Jakarta Post

damn, the forum been pending 2 of my reply post already... :3 what the...

 

[Dante]

Well if that's happen then Indonesian economy can be quite resillient from international turmoil

Domestic market would easily absorb local production

BTW, Indonesia doesn't follow the export driven economic growth rules up till today, largely we are only depend on consumer base economic growth. I think, trying to rebalancing our economic growth with export driven policy will bring more growth into our manufacture area and infrastructure supports and it will brought more economics growth to us. Seven per-cent economy growth will became a reality, although it will be easier to said than to be done

 

[Nike]

Well if that's happen then Indonesian economy can be quite resillient from international turmoil

Domestic market would easily absorb local production

yeah but you can't expect high performance economic growth like the Chinese did in last decades from consumer base economic growth. Six per-cent a year economic growth mostly the best you can get

 

[Dante]

yeah but you can't expect high performance economic growth like the Chinese did in last decades from consumer base economic growth. Six per-cent a year economic growth mostly the best you can get

Ofcourse because production had to adjust to domestic market everytime

But thats good enough to generate stable growth, and for big economic powerhouse likeindonesia, stability is important

 

[Nike]

Indonesia participates in global navigation satellite system training
Selasa, 26 Agustus 2014 17:28 WIB | 467 Views

Jakarta (ANTARA News) - Indonesia currently has the capability to control satellite navigation applications and is working towards developing the system, stated an official.

"We have just mastered aspects related to satellite navigation applications,"National Institute of Aeronautics and Space (LAPAN) Chief Thomas Djamaluddin remarked here on Tuesday.

He made the statement during the opening of an international training on Global Navigation Satellite System (GNSS).

Djamaluddin noted that satellite development in Indonesia was focused on the system of remote sensing and communication, which is in line with LAPANs strategy until 2019.

"Perhaps, after 2019, we will develop the satellite navigation system," he claimed.

According to him, Indonesia is not currently a full member of the Asia Pacific Space Cooperation Organization (APSCO) but is only a signatory state.

"Therefore, Indonesia has been asked to be the full member of APSCO in order to improve the capacity of its human resources in the field of space technology," Djamaluddin pointed out.

He noted that in order to become the full member of APSCO, Indonesia was selected to host an international training on GNSS.

He explained that Indonesia is hosting an international training on GNSS as APSCO needs to cooperate with the country.

He further added that the foremost training in Indonesia was attended by representatives from APSCO member states such as Bangladesh, China, Iran, Mongolia, Pakistan, Peru, Italy, and Turkey.

Indonesia participates in global navigation satellite system training - ANTARA News

 

[Nike]

Jakarta Office Space to Increase, But Not Upscale Homes: Report
By Jakarta Globe on 06:39 pm Aug 26, 2014
Category Business, Property
Tags: Colliers International, Jakarta office space

Office buildings in Kuningan business district in South Jakarta are shown in this file photo. itu dengan total luas 11 juta meter persegi. (Antara photo/Pradita Utama)

Jakarta. Foreign investors seeking to expand their presence in Indonesia over the next four years will find ample office options to chose from in Jakarta, but housing for their executives will be harder to come by, according to a report from global real estate services firm Colliers International.

While total office space in Jakarta increased by just 1 percent in the first half this year, the capital will see a cumulative 10.7 million square meters of new office space built by 2018, up 51 percent from 7.1 million square meters today, Colliers said in its report on Wednesday.

That projection assumes 74 buildings that are now under construction or being planned will be completed on time, Colliers said. The increase will result in drop in office occupancy to under 90 percent from 96 percent at the end of the first half.

“A substantial supply projection in the CBD will inevitably have a big impact on the weakening figure of asking base rental and occupancy rates,” the report said.

Average asking base rental rates rose to Rp 252,114 ($21.54) per square meter a month in the first half, up 2 percent year-on-year. The asking base is dollars rose 4.5 percent to $36.30 a square meter a month.

Demand for new office space is usually boosted by a surge in foreign direct investment. Foreign investors pumped Rp 78 trillion, or $7.4 billion, into the country between April and June. FDI in the second quarter climbed 16.9 percent from last year and 8.3 percent from the previous quarter, the Investment Coordinating Board says.

Multinational corporations’ expansion in Indonesia has also driven up demand for homes for their upper-management expatriate staff. But supply of such houses, “particularly in preferred areas such as Kebayoran Baru, Pondok Indah, Kemang, Cipete, Kuningan and Menteng, is limited due to the continuing demand and slow supply,” Colliers said.

“Meager land availability in preferred expatriate locations has also restricted the number of new houses,” it added.

Colliers also noted that retail space supply in Jakarta and the capital’s satellite cities remained steady at 6.56 million square meters in the first half of this year, driving up asking base rental rates by 11 percent in those areas.

Jakarta Office Space to Increase, But Not Upscale Homes: Report | The Jakarta Globe