Indonesia Economy Forum

[prima99]

Indonesia, Malaysia agree to intensify economic cooperation - ANTARA News

Jakarta (ANTARA News) - Indonesia and Malaysia have agreed to intensify economic cooperation, particularly in a bid to achieve the increased target of bilateral trade set at US$30 billion for 2015.

"Malaysia is the closest neighboring country of Indonesia. We have several similarities in our culture and history as well as interests and future," Indonesian Foreign Affairs Minister Retno Marsudi noted in a press release received here on Monday.

Retno met her Malaysian counterpart Datuk Anifah Aman during a meeting of the Joint Commission for Bilateral Cooperation (JCBC) on last Saturday in Kuala Lumpur that was held to discuss bilateral cooperation.

The meeting is also aimed to make preparations for a consultation meeting between Indonesian President Joko Widodo and Malaysian Prime Minister Najib Abdul Razak in 2016.

Both foreign ministers agreed to intensify cooperation in the palm oil industry, including efforts to dismiss the negative campaign about Indonesian palm oil in the markets in Europe and the United States.

"Malaysia has positively welcomed the Indonesian proposal to establish a Council of Palm Oil Producer Countries (CPOPCs) to improve cooperation between palm oil producing countries, including on production and promotion efforts," Retno affirmed.

Retno and Anifah also discussed about Indonesian migrant workers in Malaysia. They agreed to prioritize the safety, welfare, and basic rights of migrant workers employed in Malaysia.

Both countries also shared a similar viewpoint that migrant workers should understand the regulation and mechanism being implemented in Malaysia, including the voluntary deportation issue.

During the meeting, Minister Retno also discussed the importance of education rights for the children of migrant workers in Malaysia.

She hoped the agreement signed between President Widodo and the Malaysian prime minister in February 2015 on providing education to the children of migrant workers would be followed up. The minister was also optimistic that Malaysia would grant an establishment permit for setting up a Community Learning Center (CLC) for Indonesian children.

"We will also accomplish several issues at the technical level for the development of a CLC and teaching permits for Indonesian teachers at the center," Retno revealed.

Both ministers also discussed several matters relating to the political and regional security sectors, such as border issues, legal and consular cooperation, and education, as well as in the fields of meteorology and agriculture.

Additionally, the next JCBC meeting will be held in Indonesia in the second semester of 2017.(*)

 

[CountStrike]

it's all mutual. malaysia's Proton gets to develop Mobnas as jokowi says. shocking the esemka supporters

we still lack with automotive technology behind Malaysia and Thailand. hope that our electric car will accelerate our capability..

UGM to Focus on Battery Technology Research | Feature | Tempo.Co :: Indonesian News Portal

Dijual Massal, Harga Mobil Listrik Made in Gresik Rp 100-250

Mobil Listrik Made In Gresik Sudah Banyak Mengaspal di Jalan

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Basuki Says He'll Turn Thousand Islands Into World Class Tourism Destination


he almost 200 islets that make up the so-called Thousands Islands off the coast of Jakarta will become the world's next hottest tourism destination if Jakarta Governor Basuki Tjahaja Purnama has his way.

The islands already are a favorite among Jakartans looking for a mini-break from the city, but the governor wants to attract more foreign tourists.

To do so, according to Basuki, the Jakarta government must focus on preserving the natural beauty of the islands so that they can compete as a tourist destination alongside Maldives or Seychelles.

The Tourism Ministry has already been consulted and promised it would launch campaigns focusing on the islands.

“We have urged the Coordinating Ministry for Maritime Affairs to concentrate on the islands as well,” Basuki said at City Hall on Monday.

The governor stressed that the islands are not for sale and will remain under the control of the city government.

Deputy Governor Djarot Saiful Hidayat said he shares Basuki's enthusiasm about the islands.

Djarot visited the islands with Seychelles Ambassador to Indonesia Nico Barito to see first-hand their tourism potential.

“By the time Jakarta hosts the Asian Games in 2018, I hope there will be athletes visiting Thousand Islands as an alternative tourism destination,” Djarot said.

Basuki Says He'll Turn Thousand Islands Into World Class Tourism Destination | Jakarta Globe

 

[prima99]

Freeport Announce $18 Billion Investment for Papua Mine | Jakarta Globe

Foreign Investors Eye Airports as Indonesia Rolls Out Welcome Mat | Jakarta Globe

Indonesia's need for more and better airports is drawing strong interest from foreign transport and construction companies, hungry for a slice of the action in one of world's the fastest growing markets for air travel.

Next month, Indonesia is expected to ease regulations to allow foreign companies, like India's GVK Power & Infrastructure and South Korea's Incheon International Airport Corp, to manage and operate airports in what is already the world's fifth largest domestic air travel market.

“After this [change in the] law in Indonesia, all airport operators will be showing an interest,” said Turkish airports operator TAV Havalimanlari Holding in an e-mailed statement.

Indonesia's airports, many of which are operating at two to three times above their designed capacity, are crying out for investment after years of scant government funding, inefficient bureaucracy, and unending disputes over land rights.

Its nearly 200 public airports are barely coping with a travel boom and could lose market share to Singapore, Malaysia and other regional hubs if it doesn't quickly expand, industry officials warned.

Years of robust economic growth in the world's fourth most populous country has led to a surge in air traffic, as many Indonesians pick planes for traveling between the archipelago's myriad islands instead of ferries.

The country's main airport, Soekarno-Hatta International Airport in Jakarta, is expected to handle 64.4 million passengers this year, nearly triple its designed capacity of 22 million, according to its owner, Angkasa Pura II.

The country's newest international airport, located in northern Sumatra's provincial capital of Medan, is already operating at capacity after opening just four months ago.

Budget carrier Lion Air, which has ordered more than 500 planes for delivery in the next decade, warned its new aircraft could be diverted to its affiliates in Thailand or Malaysia if Indonesia can't accommodate its plans to expand into the international market, said Edward Sirait, the firm's director of general affairs.

Indonesia's flag carrier Garuda Airlines, which last week announced plans to double its fleet to 350-400 aircraft by 2025, is also being forced to move many of its new planes to Batam and Medan airports due to the lack of capacity in Jakarta.

“Garuda's fleet is quite flexible so we can park our aircraft in airports around Indonesia,” the company's chief executive, Emirsyah Satar, told Reuters. “It's a pity if we can't fulfill the needs for transportation due to a lack of infrastructure.”

In August, Garuda was forced to announce a delay in the launch of its first Jakarta-London service by six months to May 2014 due to the capital's aging airport.

Satar said the company's expansion plan was based on the government's development program to start building 24 new airports and significantly expand current ones by 2017. Another 21 airports are to be built within a decade.

Soaring demand

Overseas interest in Indonsia has been rising for years.

France's Vinci, Germany's Fraport AG, South Korea's Incheon, Japan's Mitsubishi Corp and Sojitz Corp have recently approached Indonesian companies about possible investment opportunities, said two senior officials with state-owned air operator Angkasa Pura I.

But no foreign firm has been able to grab a major stake in any of Indonesia's major airports due to restrictive government regulations and land acquisition issues. The country's airports are currently operated by either the government or state-owned companies.

“Many foreign companies have come to us. They are asking and waiting for their opportunity,” Tommy Soemoto, president director of Angkasa Pura I, told Reuters earlier this month. “It is up to the government now.”

Indonesia's airports are on a “negative investment list,” which limits foreign involvement in areas deemed sensitive. Under the regulations, foreign companies are limited to owning no more than 49 percent of domestic airports.

Indonesian officials have proposed removing airports, ports and airport services from this list to help revive a slowing economy. The measures need the approval of President Susilo Bambang Yudhoyono.

Indonesia's investment chief Mahendra Siregar told Reuters minor details of the proposal were still being finalized, and should be approved in early December.

India's GVK Power & Infrastructure said Indonesia's plan to allow 100 percent foreign direct investment in airport development would “facilitate not only capital infusion but also the much needed management, technical and operation expertise.”

India's largest private airport operator is expected to become the first foreign company to hold a major stake in an Indonesian airport when it teams up with Angkasa Pura I next year to build a second airport in the central Java city of Yogyakarta.

The $700 million project is expected to be finalized next year with operations starting as early as 2017.

Angkasa Pura I also hopes next year to spin-off five of its most profitable airports, including the Ngurah Rai International Airport in Bali, to enable foreign investment for its expansion plans, Yudhaprana Sugarda, head of corporate planning, told Reuters earlier this month.

“Up to 900 new planes will be delivered into Indonesia in the next decade,” Sugarda said. “We must seek cooperation to improve our infrastructure to be ready.”

India's Aditya Birla Group Invests $60m in West Java Rayon Plant | Jakarta Globe

Jakarta. Indian conglomerate Aditya Birla has invested $60 million in Indonesia to expand its rayon plant in Purwakarta, West Java.

Indo Bharat, the conglomerate's local unit, inaugurated its seventh production line in the Purwakarta plant on Monday, Mukul Agrawal, company's president director, said in a statement.

Indo Bharat has a daily production capacity of 578 tons of rayon — a semi-synthetic fiber made from wood pulp as an alternative to silk — and boasts 6,460 employees.

Minister of Industry Saleh Husin attended the inauguration ceremony and said that investment from foreign investors like Aditya Birla has contributed to over half of the Rp 3.95 trillion ($290 million) direct investment in the textile industry in the first six months of the year.

"Investment in textiles reinforces our confidence that the industry continues to grow. Optimism of the industry is in line with the government's efforts to maintain a conducive business climate," Saleh said.

 

[prima99]

Indonesia Bourse Due For Profit Taking

Indonesia Bourse Due For Profit Taking

10/12/2015 10:00 PM ET
The winning streak has reached six sessions for the Indonesia stock market, which has surged more than 425 points or 10 percent in that span. The Jakarta Composite Index now rests just above the 4,630-point plateau, although investors may lock in gains on Tuesday.

The global forecast for the Asian markets is mixed to higher, thanks to optimism ahead of the upcoming earnings season. The European markets were mixed and the U.S. bourses were slightly higher, and the Asian markets figure to follow that lead.

The JCI finished modestly higher on Monday following gains from the financial shares and the resource stocks.

For the day, the index climbed 41.36 points or 0.90 percent to finish at 4,630.71 after trading between 4,595.94 and 4,639.94. Volume was 6.80 billion shares worth 4.87 trillion rupiah. There were 193 gainers and 126 decliners, with 87 stocks finishing unchanged.

The lead form Wall Street is cautiously optimistic as stocks were lackluster on Columbus Day before closing modestly higher. The gains lifted the Dow and the S&P 500 to their best closing levels in almost two months.

The Dow rose 47.37 points or 0.3 percent to 17,131.86, while the NASDAQ edged up 8.17 points or 0.2 percent to 4,838.64 and the S&P 500 inched up 2.57 points or 0.1 percent to 2,017.46.

The modestly higher close extended the upward trend seen over the past couple weeks, with stocks recovering from the sell-off in August. Trading activity remained subdued, however, with many traders sticking to the sidelines on the holiday.

Jakarta sets aside US$96m to triple tourist arrivals - ANN

Jakarta sets aside US$96m to triple tourist arrivals

Publication Date : 13-10-2015

Indonesia wants to triple its international tourist arrivals by 2018 in a bid to boost its flagging economy, weakened by a sliding rupiah and the global slowdown.

The Southeast Asian archipelago state has seen steady growth in the number of visitors in recent years, with arrivals growing by more than 7 per cent last year to 9.44 million.

Early this year, the Ministry of Tourism was given a target by the Joko Widodo administration to raise the contribution from the tourism sector from 9 per cent last year to about 15 per cent by 2019.

But a higher and more ambitious target was set yesterday. "We have high ambitions to bring in 20 million more tourists within the next two to three years," said Tourism Minister Arief Yahya in a press release yesterday on October 12, announcing the appointment of Ogilvy Public Relations to drive the "Wonderful Indonesia" branding campaign.

"This year, 'Wonderful Indonesia' ranked 47th as the best branding in the world out of 144 countries, by the Travel and Tourism Competitiveness Index," added Arief, referring to the World Economic Forum-led index. "We are extremely proud of this and are determined to continue the momentum."

The ministry now has a budget of 1.3 trillion rupiah (US$96 million) to promote tourism this year, more than four times the 300 billion rupiah last year, spokesman Vincent Jemadu was quoted in The Wall Street Journal previously as saying.

The funding will be used to promote Indonesia through international media, including prominent travel and natural science magazines, as well as television advertisements overseas, he said.

Indonesia has its eye on China, which reportedly has 1.3 billion outbound tourists each year. "Indonesia currently draws in only 1 per cent of Chinese tourists globally," Jemadu told the journal. "We want to boost that."

The country, however, is currently grappling with a transboundary haze crisis caused by forest fires set partly to clear land for palm oil and other plantations.

The blanketing smoke from the fires, often burning over dry peatland in Kalimantan and Sumatra, has affected millions across Indonesia, Singapore and Malaysia, as well as in parts of the Philippines and Thailand in recent weeks.

The Indonesian government has, in the past week, started multilateral firefighting operations involving rescue units, armed forces and commercial entities from Singapore, Malaysia, Russia, China and Australia.

Meanwhile, early estimates by its Ministry of Environment and Forestry suggest the crisis could cost the government up to 475 trillion rupiah (US$33 billion).

Observers also told The Straits Times last week that aside from economic pains, Indonesia's global standing will take a hit if it does not resolve the decades-old crisis.

Key industry players, however, do not see the haze crisis having a significant impact on Indonesia's attractiveness as a holiday destination among travellers.

Alicia Seah, a 20-year veteran of the tourism sector, said yesterday that Indonesia still has great potential as a tourism hot spot, despite the outlook of a downtrend in visitor arrivals for most Asean countries - due in part to an uneven global economic recovery.

"Most of the year, Indonesia has clear skies," said Seah, the director of marketing and communications at Dynasty Travel, one of Singapore's largest travel agencies.

"In fact, there are many 'under-explored' locations in the country... which are largely unaffected by the haze or forest fires."

 

[prima99]

Philippines' Aboitiz Power Plans $500m Investments to Expand in SE Asia | Jakarta Globe

Cebu, Philippines. Aboitiz Power said it plans to invest as much as $500 million over the next five years, mainly in Indonesia, as the Philippines' second-largest power producer by capacity seeks to boost profits and expand outside its overcrowded home market.

CEO Erramon Aboitiz told Reuters on Tuesday that Aboitiz was also interested in projects in Vietnam and Myanmar, which along with Indonesia the company had identified as key markets.

"We've made a decision to really look at opportunities outside the Philippines," Aboitiz said on the sidelines of an APEC energy ministers' meeting in the island of Cebu.

"Indonesia will likely take the lion's share of the $500 million that Aboitiz Power is allocating for overseas investments," he said, adding that the $500 million would come from the company's own cash reserves or existing businesses.

Aboitiz Power, a unit of one of the Philippines' biggest conglomerates Aboitiz Equity Ventures, recently agreed to take part in feasibility studies with Indonesian firm SN Power AS and Energi Infranusantara for a hydropower generation project along the Lariang River in Central Sulawesi.

Through its Singapore-based unit, AboitizPower International, the company is also involved in a 110 megawatts greenfield geothermal plant project with Medco Power Indonesia.

"We've looked at it and we think it has a lot of promise," he said, referring to the project with Medco, which is still in the exploration phase.

Aboitiz Power has yet to identify any potential projects in Vietnam and Myanmar, but was actively looking, the CEO said.

"We're now in talks with potential partners in Myanmar but frankly there's nothing firm at this point," he added.

Wika, Daelim, Astaldi Win $250m Hydro-Power Construction in West Java | Jakarta Globe

Jakarta. A consortium led by state controlled Wijaya Karya has won a Rp 3.4 trillion ($250 million) contract from state utility company Perusahaan Listrik Negara to build a hydro power plant in West Java.

Shares of Wijaya Karya, or Wika, rose 0.3 percent to trade at Rp 3,010 a piece at lunch break at the Indonesia Stock Exchange on Tuesday, outperforming the broad market index which was down 3 percent.

A Wika led consortium won a contract from PLN to build hydro-power plant in Cisokan In West Java. The company had formed a joint venture with South Korea's Daelim Imdustrial and Italy's Astaldi for the project.

Wika owns 30 percent in the joint venture, with Daelim and Astaldi owning 30 percent and 40 percent respectively, Wika's corporate secretary Suradi said.

The company is expected to complete the project in four years, Suradi said.

Indonesia Wants More Royalties From Freeport for Longer Contract | Jakarta Globe

Jakarta. Freeport-McMoRan Inc should significantly increase the amount it pays in royalty payments to the Indonesian government if it wants to extend a contract to operate one of the world's biggest copper mines, a cabinet minister said on Tuesday.

The US firm last week said it received assurances from Indonesian mining minister Sudirman Said that Freeport's contract for its giant Grasberg copper and gold mine would be extended beyond 2021.

But comments this week from Sudirman's boss, chief Natural Resources Minister Rizal Ramli, have raised questions as to whether contract renegotiations between Freeport and the Indonesian government will be that straightforward.

Rizal, who oversees mining and energy, sharply criticized Freeport's history in Indonesia, telling parliament that the government had not shared enough in the company's profits over the past few decades.

"It is time to rewrite our history," Rizal said. "[Freeport] has to pay 6-7 percent royalty."

"If Indonesia's government shows its persistence and it won't easily be lobbied by Freeport, I think that Freeport will give up in the negotiation process and follow what we want."

Freeport agreed in July 2014 to start paying 4 percent in royalties on copper sales, up from 1.5-3.5 percent previously.

Freeport spokesman Riza Pratama said a royalty payment increase was one of the issues being discussed with the government.

"[The mines ministry] and Freeport are working hard to finalize the contract extension," Riza said.

Freeport, the biggest listed US copper producer and one of Indonesia's largest taxpayers, has been trying for years to obtain a contract extension but the government says legally it cannot start talks until 2019.

An Indonesian government official said on Friday it planned to amend rules on mining contracts by the end of this year, allowing Freeport to apply for an extension immediately.

Freeport plans to invest $18 billion to transition the Grasberg complex from an open pit to underground mining in late 2017. The company currently produces about 220,000 metric tons of copper ore per day, which is then converted to copper concentrate.

Indonesia, Malaysia Agree to Form Council of Palm Oil Standard | Jakarta Globe

(PS : Najib looks upset? What happened? )

 

[MarveL]

FURNITURE
Asmindo sets furniture export US$ 5 billion

JAKARTA. The Indonesian Association of Furniture and Craft Industries(Asmindo) has set annual furniture export target at US$ 5 billion in the next five years.

"It would be difficult but it is a target to be reached," Executive Director of the association Lisman Sumardjani said after attending a seminar on Supervision of Timber Legality Verification Sysatem (SVLK) here on Monday (12/10).

Lisman said the association has no data on furniture exports, but based on data from the Central Bureau of Statistics, furniture exports were valued at US$ 1.8 billion in the first nine months of the year.

One way of reaching the export target is by cutting logistic cost, he said, adding currently the logistic cost is around 25% of the GDP.

"That means, the president was right with his program to build many more seaports, roads to help reduce logistic cost," he said.

"Currently the cost of shipping a container from Jakarta to Palu in Central Sulawesi is higher than the cost of exporting a container to Beijing, China . This is not efficient. One of the solutions is construction of the infrastructure," he said.

He said the lending rates in Indonesia are still high at 15% as against Malaysia's 3%, showing the difficulty to be competitive facing other countries.

Currently the main rival in furniture market in the world is China, he said, adding the closest rival for Indonesia is Poland in furniture exports.

He said furniture companies do not gain from the falling value of rupiah as buyers ask for a price cut as they know the gain from the rising value of dollar.

Asmindo sets furniture export US$ 5 billion

POWER PLANT
Turkey interested in investing in power plant

JAKARTA. Turkey is interested in investing in 35,000 MW power plant projects, which have been announced by the Indonesian government, according to the Ministry of Energy and Mineral Resources (ESDM).

"One of the interested countries which is in discussions with us is Turkey," Minister of Energy and Mineral Resources Sudirman Said said here on Thursday.

He explained that Turkey showed its inclination to invest in the energy sector in a bilateral meeting between the Indonesian delegation and the Turkish government.

The minister noted that Turkey would invest in geothermal projects in Aceh and Java.

Earlier, president Joko Widodo reaffirmed that the government was determined to achieve the target to supply 35,000 MW electricity within the next five years.

"The President mentioned that the amount of electricity available in Indonesia was only enough to meet a quarter of the national needs and, therefore, 35,000 MW power plant project is very realistic," Chairman of the Indonesian Entrepreneurs' Association (Apindo), Hariyadi B Sukamdani, said.

Vice President Jusuf Kalla also confirmed that electricity development project with a capacity of 35,000 megawatts would be implemented in Indonesia within five years.

During the 2015-2024 period, demand for electricity is projected to grow by about 8.7 percent on an average every year.

The government is targeting to achieve 99 percent national electrification ratio by the end of 2020.

Turkey interested in investing in power plant

 

[pr1v4t33r]

Indonesia records trade surplus of 1.02 billion US dollars in September 2015

..... Cumulatively, from January to September 2015, Indonesia's trade balance recorded a surplus of 7.13 billion US dollars. This condition was different from the same period last year in which the trade balance recorded a deficit of 1.67 billion US dollars .....

read more: Indonesia records trade surplus of 1.02 billion US dollars in September 2015 | Republika Online

 

[Nike]

Indonesia records trade surplus of 1.02 billion US dollars in September 2015

..... Cumulatively, from January to September 2015, Indonesia's trade balance recorded a surplus of 7.13 billion US dollars. This condition was different from the same period last year in which the trade balance recorded a deficit of 1.67 billion US dollars .....

read more: Indonesia records trade surplus of 1.02 billion US dollars in September 2015 | Republika Online

not good enough, our exports performance is dropping since earlier this year meanwhile import is dropping even lower

 

[prima99]

Iran's Mapna Group Eyes Indonesia's Electric Power Industry | Jakarta Globe

Jakarta. Iranian energy holding company Mapna Group is devising plans to invest in Indonesia's power sector, riding on the back of the Indonesian government's goal to roll out 35,000 megawatts of electricity across the archipelago in the next five years.

Executives from the company have reportedly met Energy and Mineral Resources Minister Sudirman Said to discuss possible partnerships during the minister's recent visit to Iran, according to a statement from Mapna Group on Thursday.

Abbas Aliabadi, president of the Mapna Group, said that the company seeks to be "actively involved in Indonesia's energy market."

"In the first step, Mapna is prepared to invest in Indonesia's power sector in order to increase the country's power capacity by 1,000 megawatts," he said, without disclosing the value of the project.

Aliabadi added that Mapna — which generates about 47 percent of Iran's electricity — also seeks to run a service center for power generators in Indonesia.

Established in 1993, Mapna Group has a total contract value of nearly 30 billion euros ($34.25 billion), covering three sectors: electricity, oil and gas, as well as rail traction.

ADVERTISING

Sudirman met with his Iranian counterpart Hamid Chitchian on Wednesday in a bid to boost bilateral ties in the energy sector, according to a statement.

"For Indonesia, increasing the capacity to generate power is a key strategy in building the economy... Our government is looking to diversify its energy sources and exploit clean and renewable energy, such as solar power, wind power and geothermal energy," Sudirman said in a statement.



Foreign Drug Makers Eye 10% Sales Boost in Indonesia in 2016 | Jakarta Globe

Jakarta. Foreign drug manufacturers expect sales to rise 10 percent next year, on the back of improved government health-care spending.

Manufacturers under the International Pharmaceutical Manufacturer Group, or IPMG, estimate a turnover of $1.37 billion in 2016, compared to $1.25 billion estimated for this year.

"We are optimistic that the pharmaceutical market will continue to grow in the future, especially after the government promised to increase the health budget," said Parulian Simanjuntak, the IPMG director.

Indonesia's consumption of medicine is the lowest all of Southeast Asia, reflecting a lack of health-care services in the country, Parulian said.

Foreign drug makers currently hold about 25 percent of Indonesia's pharmaceutical market, which is estimated at $5 billion this year, according to the IPMG.

The lobby group includes the local units of global drug giants Bayer, Merck, Meiji, Novartis and Pfizer among its 24 members



Antam, Inalum Woo Foreign Investors for West Kalimantan Smelter Project | Jakarta Globe

Jakarta. State-controlled diversified miner Antam and state aluminum maker Indonesia Asaha Aluminium, or Inalum, are currently wooing foreign businesses for a proposed smelter-grade alumina refinery in West Kalimantan.

According to a filing to the local stock exchange on Thursday, the companies have sent out invitations to "world-renowned aluminum companies experienced in manufacturing bauxite ore into alumina," with potential investors from China, Russia and United Arab Emirates.

"Antam's deal with Inalum to create the joint venture with a strategic partner is a follow-up to our agreement signed last July. The construction of the smelter-grade alumina refinery will greatly boost the value of Antam's bauxite reserves," Antam president director Tedy Badjuraman said in a statement on Thursday.

The plant, scheduled to start construction next year, will produce one million tons of smelter-grade alumina a year in its first phase, starting from 2019, and gradually increase to two million tons. At this higher capacity, it will require up to six million wet metric tons of bauxite ore every year, according to the companies.

"The synergy with Antam is one of our efforts towards sustainable growth through building Indonesia's upstream aluminum industry and integrating it to the downstream products in order to add value and increase our competitiveness," said Winardi Sunoto, the president director of Inalum, which currently produces up to 250,000 tons of aluminum ingot per year.

 

[pr1v4t33r]

not good enough, our exports performance is dropping since earlier this year meanwhile import is dropping even lower

That's to be expected. Economic slowdown has been hitting hard Indonesia's economic outlook in 2015. But still, we need more good news on economic front. So let's pour some good news...

 

[acelaw]

 

[Nike]

@cnleio @TaiShang @AndrewJin

 

[TaiShang]

@cnleio @TaiShang @AndrewJin

 

[prima99]

Commentary: Why an 11,000-km Long Maritime Axis Makes Sense | Jakarta Globe

In the coming week, President Joko Widodo receives Queen Margrethe II of Denmark. It will be the first-ever state visit between two proud maritime nations. It takes place almost a century after the first regular Danish shipping route to Indonesia was established. Initially, it helped bring coffee from Medan to New York and ever since then Danish ships have been connecting Indonesia’s goods with the international market.

The history of our countries and our peoples are shaped by the oceans as well as by being island nations. In fact, no matter where in Denmark you are, you will never be more than 50 kilometers away from the ocean. This has shaped the the Danish mindset and our view of the surrounding world, in the same way that the proximity of Indonesia to the ocean has influenced Indonesians throughout your history.

Both Indonesia and Denmark have at very early stages developed a broad variety of maritime skills and seafaring techniques. These lessons and experiences live on today and continue to hold importance for our countries. Connectivity always has been and remains essential to our countries -- both for domestic coherence and for relating to the world.

The oceans and seaways surrounding us have been invaluable in linking us to markets, international trade networks and global value chains as well as to knowledge, expertise and partnerships with other countries. Our oceans have also been essential for the fisheries industry, aqua-culture and equipment, which in turn have an impact on nutrition and exports as well as for the promotion of tourism and off-shore oil and gas exploitation.

President Jokowi has launched an ambitious vision of transforming Indonesia into a maritime fulcrum. This vision is not only central to Indonesia’s maritime infrastructure, it is also essential for another political priority – namely to create additional economic growth in order to address Indonesia’s demographic development challenges. The vision requires significant expansion of Indonesian ports, investment in infrastructure and additional shipping capacity in order to increase connectivity between Indonesia’s many islands and regions, spanning from Aceh in the west all the way to Papua, more than 5,000 kilometers to the east.

Denmark wants to become a key partner for Indonesia in realizing its maritime vision. And despite our differences, we believe there is a perfect match between the competencies, the technology and the know-how of Denmark and of the companies in the unprecedented big business delegation accompanying Queen Margrethe II’s upcoming visit, and the priorities, needs and challenges faced by Indonesia.

Every fifteen minutes -- somewhere in the world -- a Danish-operated ship arrives or departs from a port. Danes account for only 0.1 percent of the world’s population, but 10 percent of the world’s trade is carried by Danish-operated ships, placing Denmark among the top five of the world’s leading shipping nations. World class competencies in port development and high productivity operations that increase capacity and efficiency are also proud trademarks. The figures document world class expertise in strengthening connectivity.

Most large cargo ships worldwide are equipped with Danish maritime technology, products or equipment. The Danish maritime industry is famous for its quality products, innovative technological solutions and eco-efficient services essential to promote connectivity and competitivesness.

Danish engineering consultancy companies are globally recognized for their expertise in complex marine infrastructure. Within the security sector, Danish companies provide advanced security systems and survelliance solutions of the highest quality which are important in a number of areas from defense, to search and rescue, combating illegal fishing and monitoring pollution.

For decades, the Danish maritime industry has contributed significantly to growth and employment, both in Denmark and in our partner countries around the world. By utilizing our government-to government instruments as well as our business-to-business cooperation, we can create a partnership that is beneficial to Indonesia and Denmark alike.

At the same time, Denmark strongly recognizes the need to cherish, protect, preserve and ensure the sustainability of our marine resources. Danish companies have developed a whole range of world class competencies, technologies and solutions for surveying coastal areas, including to ensure coastal protection and undertake wastewater treatment.

Just a little more than a decade ago, the water in the port of Copenhagen was not a welcoming place. Today, thanks to a vision combined with stricter regulations, the water is so clean that the harbor has become a place of recreation where children and adults enjoy swimming on warm summer days. Could you imagine the same transition here in Jakarta?

During the upcoming state visit we will sign a maritime cooperation agreement which will pave the way for stronger and concrete collaboration with our public and private sector. This will create results if embraced fully. And it will show that an 11,000-kilometer divide is not an obstacle for creating a maritime axis. It is, after all, primarily water that separates us.

Indonesian President to Court Tech Giants on US Trip | Jakarta Globe

Jakarta. Indonesia's president will court tech giants Apple and Google during his first trip to the United States this month, seeking investment for sustainable mining and greater internet access, a senior cabinet minister told Reuters.

President Joko Widodo will travel to Washington and San Francisco on a five-day trip starting Oct. 25 in the hope of attracting much-needed foreign investment to revive growth in Southeast Asia's largest economy.

Widodo plans to visit Apple's headquarters and have dinner with CEO Tim Cook to discuss investment in Indonesia's tin industry to ensure the metal used in iPhones and other Apple products is produced in legal mines.

Indonesia is the world's largest tin exporter, with nearly all produced on the Bangka and Belitung islands off the coast of Sumatra.

"Apple wants to invest ... in the tin industry in Bangka-Belitung," Chief Security Minister Luhut Pandjaitan, who will accompany Widodo on the trip, said in an interview in his office."They want to get the tin directly from the source."

Green groups have accused Apple of sourcing tin from suppliers that use child workers and violate environmental laws. Apple says it does not tolerate underage labour and is dedicated to the ethical sourcing of minerals.

The president, who will mark his first year in office next week, will also visit Google's headquarters and discuss improving wireless Internet access to Papua and other remote Indonesian regions by using smart balloons.

Widodo, who is also expected to meet executives from Facebook and Microsoft, wants the tech giants to team up with Indonesian universities to establish education centres that will help make the country a regional tech hub.

"We see a positive change in direction and mood of the government toward a more open investment environment," said Lin Neumann, managing director of the American Chamber of Commerce in Indonesia, after a closed-door meeting with Indonesian ministers before the president's US trip.

In Washington, Widodo will meet executives from US mining giant Freeport-McMoRan, which is lobbying Indonesian officials to revise a law that would allow new contract negotiations to take place much earlier than currently allowed.

"Invest in Indonesia, but you have to also respect the regulations in the country," Pandjaitan said. "We don't want to disturb any existing contract. But when the contract expires, then it belongs to us."

Widodo will also meet US President Barack Obama and congressional leaders to discuss rising tensions in the South China Sea and the fight to contain Islamic State.

"Indonesia can play a significant role on the IS issue and be a mediator in conflicts involving Muslim countries like Palestine," Pandjaitan said.

Pertamina Gandeng Jepang Bangun PLTGU di Sumatera Utara

Jakarta, CNN Indonesia -- Perusahaan pengelola minyak pelat merah, PT Pertamina resmi menggandeng perusahaan niaga gas asal Jepang, Sojitz Corporation dan PT Pembangunan Prasarana Sumatera Utara (PPSU) untuk membangun Pembangkit Listrik Tenaga Gas Uap (PLTGU) di Medan, Sumatera Utara.

Vice President Gas and Power Commercialization Pertamina, Ginanjar menyebutkan bahwa kerjasama ini dilakukan untuk mengoptimalisasi pemanfaatan fasilitas terminal regasifikasi Arun, Aceh. Untuk pembangunan PLTGU ini, Pertamina bahkan sudah mengamankan pasokan gas mengingat kebutuhan gas bagi pembangkit ini mencapai 35 MMSCFD.

"Untuk proyek ini, kami sudah bicarakan ke Direktorat Jenderal Ketenagalistrikan Kementerian Energi dan Sumber Daya Mineral (ESDM) dan juga sudah presentasikan kepada PT Perusahaan Listrik Negara (PLN) dan sudah in-line dengan rencana mereka," ujarnya ketika ditemui di Jakarta, Jumat (16/10).

Rencananya, proyek ini akan berdiri di atas lahan seluas 15 hektare dengan nilai investasi di kisaran US$250 juta, di mana sekitar 70 hingga 75 persennya berasal dari pinjaman konsorsium. Pembangunan ini, ujarnya, sudah memasuki tahap Pra Studi Kelayakan dan kini tengah memasuki tahap identifikasi lahan.

Lebih lanjut, Ginanjar mengatakan bahwa pembangunan pembangkit listrik di Sumatera Utara ini sangat penting karena bisa mengatasi kekurangan energi di Sumatera Utara. Dari sumber data PLN, setidaknya provinsi tersebut membutuhkan tambahan pasokan listrik sebanyak 700 hingga 800 megawatt untuk terhindar dari pemadaman bergilir.

"Kami harap proyek ini dapat atasi masalah masalah kelangkaan atau sodet listrik di Medan dan sekitarnya. Ini juga bentuk dukungan kami terhadap program 35 ribu megawatt yang dicanangkan pemerintah," katanya.

Ditemui di kesempatan yang sama, Presiden Direktur PT Sojitz Indonesia, Takashi Inada mengatakan kalau proyek ini merupakan upaya bisnis lain yang dilakukan perusahaan setelah bisnis perdagangan gas ke Jepang makin menurun setelah permintaan gas domestik semakin meningkat. Apalagi, pihaknya juga melihat kesempatan di bisnis pembangkit listrik setelah melihat angka kebutuhan listrik di Indonesia.

"Kami memang sejak lama telah bekerjasama dengan Pertamina, terutama melalui perdagangan gas asal Arun sejak tahun 1977. Namun karena kami melihat kebutuhan listrik di Sumatera Utara masih minim, maka kami memutuskan untuk masuk ke situ," kata Inada.

Lebih lanjut, Inada berharap proyek ini bisa dimulai pada tahun 2016 dan rampung pada tahun 2019. Bahkan, Inada berharap proyek ini bisa ditambah kapasitasnya sebesar 2 hingga 3 kali lipat dari kapasitas awalnya.

"Kami harap bisa menambah kapasitasnya karena kami melihat nantinya tenaga listrik ini diperlukan untuk menunjang kegiatan perindustrian di Sumatera Utara," ucap dia.

Di samping itu, tak menutup kemungkinan perusahaan akan menambah proyek-proyek serupa lainnya di Indonesia kendati PLTGU Medan ini merupakan proyek pembangkit listrik pertama Sojitz di Indonesia. "Meskipun ini proyek pembangkit listrik pertama kami di Indonesia, tapi kami punya proyek serupa di Vietnam dan Timur Tengah. Tak menutup kemungkinan kami bisa membangun pembangkit listrik di lokasi lain seperti Kalimantan atau Jawa," katanya.

Sucofindo Lebarkan Bisnis Inspeksi Dagang ke Korea

Jakarta, CNN Indonesia -- PT Sucofindo (Persero) memperluas cakupan bisnis jasa inspeksi perdagangan hingga ke Korea Selatan dengan membuka kantor cabang di ibu kota Negeri Gingseng.

Direktur Komersial I Sucofindo, Heru Riza menjelaskan cabang baru di Korea Selatan ini merupakan bagian dari upaya perseroan memperluas jaringan dan kerjasama di luar negeri.

Sebelumnya Sucofindo terlebih dahulu membuka kantor cabang di Timor Leste.

“Kami berharap dengan pembukaan Sucofindo cabang Korea Selatan dapat membantu peningkatan perdagangan internasional bagi para pelaku usaha dan pemerintah kedua Negara," ujar Heru melalui keterangan tertulis, Jumat (16/10).

Menurutnya, Sucofindo Korea selatan akan menyediakan jasa inspeksi perdagangan, antara lain meliputi verifikasi dan teknis penyelidikan impor untuk semua jenis komoditas yang diperdagangkan antara Indonesia dan Korea Selatan.

Selain itu, BUMN inspeksi dagang ini juga bisa bertindak sebagai agen penjualan antar-kedua negara, serta menyediakan jasa lainnya seperti audit, sertifikasi dan konsultasi.

Berdasarkan data Kedutaan Besar Republik Indonesia, total volume perdagangan antara Indonesia dan Korea Selatan pada 2013 mencapai US$23 miliar.

Cecep Hermawan, Wakil Kepala Misi KBRI di Korea Selatan berharap kehadiran BUMN inspeksi di Negeri Gingseng ini dapat memperlancar perdagangan internasional antara kedua negara, mengingat intensitasnya semakin meningkat.

Kantor cabang luar negeri Sucofindo berdomisili di 2513 Acro tel 30 Gil 13 , Unju Ro, Gangnam Gu, Seoul, Korea.

Bersamaan dengan peresmian kantor cabang tersebut pada Kamis (15/10), Sucofindo juga menandatangani Nota Kesepahaman dengan beberapa lembaga di Korea Selatan seperti Korea Testing Laboratory (KTL), Shinsung, Posco, Jeong Woo, Korean Institute of Energy Research (KIER), Koreatech Inspection Co Ltd (KOTEC) dan Korea Marine Surveyors & Sworn Measurer’s Corporation (KOMSA).

Heru berharap kerja sama PT. Sucofindo dengan beberapa lembaga ini dapat berjalan lancar sehingga dapat membantu peningkatan perdagangan internasional bagi para pelaku usaha dan pemerintah kedua Negara.

“Kami mendapat sambutan yang hangat di Korea Selatan dan kami mengucapkan terima kasih atas kecepatan dalam proses persiapan pembukaan kantor cabang baru di Korea Selatan ini,” ujar Direktur Utama Sucofindo Bachder Djohan Buddin.

 

[MarveL]

Indonesia looks to Iran to drive economy: energy minister
By Mahnaz Abdi

TEHRAN - Iran has high potential to help improve economic growth in Indonesia, especially in the fields of oil, gas and electricity, the Indonesian Minister of Energy and Mineral Resources Sudirman Said says in an exclusive interview with the Tehran Times.

Said was visiting Iran along with Foreign Minister Rento Marsudi on Wednesday and Thursday.

“Our visit this year is actually to make the opportunity materialized. It is my second visit [to Iran], even my third meeting with the minister of oil Mr. Zanganeh. I think that the meeting is more and more giving the concrete opportunity to be materialized,” Said explained.

“We discussed about the opportunity to supply the crude and the products and also the opportunity to joint cooperation in developing a refinery in Indonesia. And our team has been discussing with the team of National Iranian Oil Company (NIOC),” the minister stated.

Referring to his country’s agreement with Iran for a long-term oil supply by the Islamic Republic, he said: “That is one of the objectives of our visit to follow up the agreement; I think both Iran and Indonesia will have benefit if we could engage in long-term supply agreement. This is something that we are now working within Pertamina, the national oil company, and also with the National Iranian Oil Company”.

About the agreement between Iran, China and Indonesia on building a refinery on the East Java Island, Widhyawan Prawiraatmadja, the special advisor to Said, said: “Because Indonesia is in growing need and our capacity has not been added over the past twenty years, this is the time to have a new additional refining capacity. It is imperative that Indonesia will need feedstock; so we will have to rely on supply from other countries’ resources such as Iran, and Iran will always be considered as one of the potential suppliers.”

“I think we look for all kinds of options and one you said [the issue of refinery] is one of the options,” Prawiraatmadja said.

On Indonesia’s return to OPEC, the country’s minister of energy said: “The role of Iran in OPEC is of course very important; because it is one of the large producers and our coming back to OPEC is also supported by Iran.”

“I think it’s time for Iran to support us. But, for Indonesia, I think coming back to OPEC means to engage with the producing countries, which Indonesia is in their support, because we still have large gap in terms of consumption. We consume much more than we produce; so, engaging with the producing countries is good to secure the supply in Indonesia,” he added.


--------Indonesia looks to Iran as supplier of LPG-------

Elsewhere in his interview with the Tehran Times, the official said: “We are in need of LPG [liquefied petroleum gas]. We look for Iran to support us in supplying the LPG needs.”

Indonesia is in serious need of bitumen for its power sector.

Asked if the country has any plan to import bitumen from Iran, the minister stated: “I guess actually we’ll also have future needs for bitumen much more than what we need now; so I think we will import it from Iran.

“Because we are now building infrastructures in huge projects, I think it is an opportunity for Iran to supply bitumen to Indonesia.”

Said went on to say: “As minister of energy, I’m very impressed with Iran’s development of power sector, especially in hydro, and it is something that we need to work together in Indonesia”.

The minister also said Iran can cooperate with Indonesia in the mining sector if it has the technology.

“Our mining sector is in development. We are pushing through the policy to develop downstream industry; so if Iran has technology to cooperate, we will engage with the Iranian companies.”

On the prospect of bilateral economic ties now that the economic sanctions against Iran are set to be lifted, the minister explained: “I learnt from our colleagues in Iran that Iran is a country that will be growing soon after the sanctions are lifted and we will have development of economic relations in the fields like auto parts, textile and food that will be our opportunities. I think it is time for Indonesian businessmen to explore that opportunities, so that besides energy, my sector, other sectors can come here and develop cooperation with Iranian businessmen”.

--------We plan to organize President Joko Widodoin’s trip to Iran early next year -------

He added, “After the meeting of President Rouhani and President Joko Widodoin in April after the Asia-Africa Conference, we are committed to explore and expand the cooperation between the two countries. I think we plan to organize a trip of President Joko Widodoin to Iran early next year, so this [visit] is part of the preparation actually.”

He said that the next Indonesian delegations will be coming to Iran to explore broader fields of economy.

“Regardless the sanctions issue, I think we always have intention to strengthen the cooperation. Iran and Indonesia have very long time brotherhood; so with sanctions lifted it is actually the push to further development of the cooperation.”

The minister noted, “We always intend to keep the cooperation stronger and with the current situation [following the Iran nuclear deal], I think the relationship keeps going better and better.”

--------Indonesia and Iran are proud of their relationship-------

For his part, Dr. Alwi Shihab, the Indonesian president’s envoy to the Middle East and the OIC, told the Tehran Times: “I think relation between Iran and Indonesia is something that we both countries are proud of. We have been in close contact, close relation and we don’t have obstacle. Now, it’s the time to optimize especially economic opportunities from both countries. We are amazed by the development of Iran despite the sanctions, and we would like to see Iranian businessmen, Iranian projects feasible in Indonesia.”

tehran times : Indonesia looks to Iran to drive economy: energy minister