Indonesia Economy Forum

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Investment board: Foreign investment remain dominant
Rabu, 23 Desember 2015 18:28 WIB | 529 Views

Jakarta (ANTARA News) - The Capital Investment Coordinating Board (BKPM) said foreign investments (PMA) have remained the largest contributors to the total investment in the country, but the domination has tended to decline.

In 2015, realization of PMA is predicted to reach Rp386 trillion or 65 percent of the total investment target of Rp594.8 trillion with domestic investments (PMDN) making up the remaining 35 percent or Rp208.4 trillion, BKPM chief Franky Sibarani said in a statement.

"We will continue to redress the ratio with PMA 60 percent and PMDN 40 percent in the next five years," Franky said.

In comparison with investment realization in the first nine months of 2015, the domination of PMA declined slightly, he said.

In the January-September period, PMA contributed Rp266.8 trillion or 66.7 percent to the total investment.

Franky said the reality at present both in interest and readiness is favorable to achieve the target in the composition of PMA and PMDN.

"Foreign investors are quite enthusiastic in doing business in the country notably those from Asia. Around 48 percent of realization of investment projects from 2010 to September, 2015 were from other Asian countries," he said.

PMA is also dominant in investment plans received by BKPM. BKPM estimated that foreign investment plans reach Rp1,087 trillion or 64.7 percent of the total plans in 2015 down from 74.1 percent in 2014.

Domestic investment plans were estimated to reach Rp593.6 trillion or an increase of 35,3 percent from Rp335.7 trillion in 2014 or 26.9 percent of the total plans of investment.

The investment of Rp594.8 trillion predicted in 2016 would include Rp302.6 trillion in Java and the rest or Rp292.2 trillion (49.1 percent ) in other Indonesian islands.(*)

Investment board: Foreign investment remain dominant - ANTARA News

 

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Mawlid Nabi commemoration at the presidential palace and Istiqlal grand mosque

 

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Masterplan for Kertajati International Airport

 

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The Transformation of the Indonesian Economy In Challenging Times
Keynote addresses by: Sri Mulyani Indrawati, Managing Director and Chief Operating Officer, World Bank; Former Minister of Finance, Indonesia; and Mari Pangestu, Adjunct Professor, School of International and Public Affairs, Columbia University; former Minister of Trade and Minister of Tourism

 

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T3 ultimate progress

Merah Putih bridge progress

 

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Most of 2016 power projects to use coal
Rabu, 23 Desember 2015 17:27 WIB | 797 Views
Pewarta: Andi Abdussalam

Jakarta (ANTARA News) - The government has decided to use coal as the main source of energy for its 17,340-megawatt (MW) electricity projects planned to be built in 2016 at a total cost of US$20 billion, or Rp280 trillion.

"Most of the power plants to be built next year will use steam with coal as their fuels. Some 13,049 MW of the total 17,340-MW projects will use coal, while the remaining 4,291-MW projects will use gas, hydro, and geothermal sources of energy," Sofyan Basir, the president director of state-owned electricity company PLN, stated on Tuesday.

The PLN president director noted that agreements on the construction of the 17,340-MW power projects had been signed, and the work on them was expected to commence in early 2016.

The 17,340-MW electricity projects are part of the 35 thousand MW capacity that the government is planning to develop and complete by 2019. This move is aimed at increasing the nations current electricity generation capacity from some 50 thousand MW now to 85 thousand MW by the end of 2019.

Sofyan remarked that of the 17,340-MW power projects whose contracts had been signed, about 4,291 MW will use clean and renewable sources of energy, such as gas, hydro, and geothermal.

"The remaining 13,049 MW will use coal," he revealed.

He said the contracts for the construction of the 8,040-MW projects were signed on December 21, 2015.

"Thus, the contracts that have been signed (for the development of 35 thousand-MW electricity projects until 2019) have covered 17,340 MW. The projects are located in almost all islands in Indonesia: Sumatra, Java, Kalimantan, Sulawesi, Nusa Tenggara, Maluku, and Papua. The contracts also covered the development of diesel power plants for 50 outlying or isolated regions," he stated.

According to the PLN president director, the company has signed power purchase agreements (PPAs) of 8,040 MW on Monday (Dec. 21).

"This is the first time that PLN has signed PPAs with such a huge electricity capacity," Basir noted after attending a meeting between President Joko Widodo (Jokowi) and power investors at the State Palace on Tuesday.

He said of the 17,340-MW power projects in 2016, some 4,291 MW will use clean and renewable sources of energy. They will be fueled with gas, hydro, and geothermal sources of energy, while some 13,049 MW will be generated by using coal.

The choice of the sources of energy to be used has been made in a bid to optimize the use of local resources available in Indonesia.

"The locations of the projects are scattered across the country from Sumatra in the western part to Papua in the eastern region," he pointed out.

Contractors of the projects will bring new technologies with them from Japan, China, the United States, and Europe.

He said in the coming six months, the contractors would have begun work on the projects, thereby leading to a spurt in economic activities, which would absorb workers.

In May 2015, the government launched a 35 thousand-MW power development program, which comprised 10 thousand MW, or 35 projects, to be implemented by the PLN and the remaining 25 thousand MW, or 74 projects, to be developed by the private sector through an independent power producer (IPP) cooperation scheme. The projects are expected to absorb 650 thousand workers.

"It will have a positive impact as the projects will absorb some 650 thousand new workers," the PLN president director pointed out.

However, Sofyan emphasized that to achieve the power development target, the PLN had sought the governments assistance to solve their land acquisition disputes. The government also needs to publicize the programs among land owners affected by the projects.

"We hope for the presidents support, so that the program will run smoothly by solving various on-field problems, such as land clearance, permits, and transmission network lanes. This will involve several parties, such as the local governments, land owners, and residents living under the transmission networks," he remarked.

At a gathering on Tuesday attended by some 150 investors from the electricity sector, President Jokowi vowed that his government will offer assistance to accelerate the development of the power projects.

The president acknowledged that the delay in the land acquisition process did hinder the development of projects, citing the Batang power plant as an example.

He said the land clearance process for a power project in Batang had been delayed for four years. However, it did not mean that it could not be accelerated.

"We have the capacity to develop projects to generate 35 thousand MW of electricity. If the permit issuance process is too complicated and lengthy, then such bureaucratic procedures should be cut short. That is what we are doing now," he explained.

Regarding the development of new and renewable sources of energy, Minister of Energy and Mineral Resources (ESDM) Sudirman Said revealed that he had signed a memorandum of understanding (MoU) with the Asian Development Bank (ADB) on the development of a clean energy research and technology center in Indonesia.

"This is part of the efforts to achieve the use of up to 25 percent renewable energy in 2025," noted Minister Said.

He said the cooperation is in the form of a loan worth US$6 billion and a grant, though he did not mention the exact value of the grant assistance.

He said the development of a clean energy research center required an investment of US$7 billion.

"Investment on the development of clean energy is huge, but we will start it in Bali," Said stated.(*)


Most of 2016 power projects to use coal - ANTARA News

 

[MarveL]

Indonesia Scraps Import Tax on Airplane Spare Parts

Jakarta. The Indonesian government has scrapped its import tax on 21 categories of airplane spare parts as part of its latest economic stimulus package to counter headwinds faced by the country's airlines.

The move expands on a similar incentive in September that gave the airlines some relief amid a weakening rupiah against the US dollar, which has caused operational costs to spike.

"In the past few years, our airline transport and airplane rental industry has grown strongly, but we notice that most of the airplane maintenance is conducted overseas," Coordinating Minister for Economic Affairs Darmin Nasution said late on Monday.

"Based on our study, that was due to [lack of] spare part [availability]," Darmin said. "Therefore we released this policy to make importing spare parts easier."

Tengku Burhanuddin, a deputy chairman at the Indonesia Air Carrier Association (Inaca), welcomed the policy, saying it would improve the country's airlines' competitiveness, by reducing their operational costs.

While it clearly benefits major airlines like flag-carrier Garuda Indonesia, and Lion Mentari Airlines, the country's largest budget carrier, the policy would also boost the business of aircraft manufacturers like Dirgantara Indonesia, said Tengku.

The government had scrapped its value added tax for imported aircraft and any related components in September, as part of a wider policy package to lessen the burden from a stronger dollar, which has gained 14 percent against the local currency so far this year.

Indonesian airlines typically operate Boeing or Airbus jets to serve domestic routes and operate in-house maintenance units.

Aircraft maintenance at Garuda Indonesia makes up 15 percent of the company's total operational costs, which amounts to about $3.8 billion per year, according to Garuda's president director Arif Wibowo.

Still, Garuda managed to make a net profit of $50.1 million in the first nine months this year, compared with a $222.3 million loss a year ago, thanks to decline in global oil prices.

Indonesia Scraps Import Tax on Airplane Spare Parts | Jakarta Globe

 

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Government to provide 100.000 units, modern farming machine for the farmers all around Indonesia in 2016 for free.

Upaya pemerintah mendorong produktivitas pertanian terus dilakukan. Salah satunya dengan menyalurkan alsintan atau alat mesin pertanian kepada kelompok-kelompok tani. Rencananya, Kementerian Pertanian akan menyalurkan 100.000 alsintan tahun depan. Alsintan itu antara lain berupa traktor, pompa air, alat tanam rice transplanter, alat panen combine harvester, dryer padi dan jagung, corn sheller, mesin giling dan lain-lain.

For the record, In 2015, government already provide 62.000 units mix farming machine such as: tractor, combine harvester, water pump, and box dryer for the farmers all around Indonesia.

Pemerintah Bagi-bagi 100.000 Alsintan Tahun Depan

 

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Good going Indonesia. Policy making appears to be fairly knowledge based.

 

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From Indonesia for Bangladesh
PT Industri Kereta Api (INKA) in Madiun, East Java, has won a bid to build 150 units of passenger coaches worth US$72 million in Bangladesh. The tender contract was received in November 2014 and deliveries would be made in stages until the end of 2016. In the initial stage, 11 of the 150 coaches ordered would be delivered in February 2016. The rest will be delivered in stages until the end of 2016, according to the contract. Here they are...

 

[orang biasa]

KSEI Records Increase in Number of Investors

TEMPO.CO, Jakarta - Indonesian Central Securities Depository (KSEI) recorded an increase in the number of investors by 20 percent when compared to last year. Based on KSEI’s data per December 22, 2015, there were 432,571 investors in Indonesia.

Total assets recorded in C-BEST up to late November 2015 was Rp 3,152.07 trillion (US$225.2 billion) as a result of a decrease in the Indonesian Composite Index (IHSG).

However, the number of securities listed in the KSEI up to late November 2015 increased from 1,240 last year to 1,310.

The KSEI launched a new website during the celebration of its 18th anniversary in a bid to improve services and disseminate information to general public, particularly KSEI customers.

 

[MarveL]

4 Mega Project Gas Investment

These four projects have sizeable reserves and is expected to delay the threat of gas deficit in the future because it is able to produce up to 20 years. Four mega oil and gas projects spread in Maluku, Makassar Strait, East Kalimantan, and Papua recorded as the highest with a total investment of US $ 43 billion.
This figure exceeded the foreign direct investment (FDI) in 2014 with a value of $ 28.5 billion, covering 24 sectors.

 

[Nike]

Director general of land transportation resigns
Minggu, 27 Desember 2015 01:51 WIB | 568 Views

Jakarta (ANTARA News) - Djoko Sasono, Director General of Land Transportation of Indonesian Transportation Ministry has stepped down from his post.

Sasono told the press here on Saturday that his resignation is a kind of his responsibility over the congestion on some roads, especially on the highway which occurred ahead of Christmas this year.

"I have to be responsible for a lot of speculation in the community, as it is a mistake of Director General of Land Transportation," he pointed out.

Sasono further said, he resigned starting Saturday, December 26, 2015 and tender his resignation to President Joko Widodo (Jokowi) on Sunday (Dec 27).

"I will tender the (resignation to Mr (Pak) president because the decree (for the post of director general) is obtained from the president," he explained.

Sasono felt guilty because he failed to make efforts better.

According to him, he got no pressure from anyone related to his resignation.

Sasono previously also received the onslaught relevant opinion about the enforcement of laws banning motorcycle and taxi online.

In the meantime, Deputy Speaker of the House of Representative Parliament Agus Hermanto Setya Novanto stepped down from his position as House Speaker on his own initiative.

Meanwhile, Deputy Speaker of the House of Representative Parliament Agus Hermanto said Setya Novanto stepped down from his position as House Speaker on his own initiative.

"Novanto spokes to no one about his plan to resign. We knew his decision after he made the announcement," Agus said here on Thursday.

Novanto tendered his resignation as house speaker on Wednesday night after all members of the Parliament Honorary Tribunal voted that he was guilty of ethical code violation.


Director general of land transportation resigns - ANTARA News

 

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Building Indonesia from the villages
Central government to allocate $3.5Billion for village fund in 2016.

Presiden Joko Widodo menjanjikan kenaikan total dana desa dari yang hanya Rp20,8 triliun triliun pada 2015 menjadi Rp47 triliun pada tahun depan..... Tak berhenti di sana, Jokowi pun menjamin bahwa kenaikan jumlah dana desa akan terus naik di tahun depannya, bahkan bisa sampai ke angka Rp80 triliun. Menurutnya, hal itu memang diperlukan agar peredaran uang di desa semakin banyak.

Implementation of village funds will be one of the success stories of Indonesia in the implementation of fiscal decentralization.

- 2016, Jokowi Janjikan Dana Desa Naik Jadi Rp47 Triliun
- berita/Village Fund as Success Story of Fiscal Decentralization, Finance Minister Expected

 

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President Jokowi inaugurates Komodo Airport in East Nusa Tenggara
Minggu, 27 Desember 2015 15:02 WIB | 455 Views

Labuan Bajo, E Nusa Tenggara (ANTARA News) - President Joko Widodo (Jokowi) officiated Komodo Airport of Labuan Bajo in East Nusa Tenggara on Sunday.

"I hope that the presence of this airports new terminal and the extension of its ranways will help boost the arrivals of tourists to this region," President Jokowi said when inaugurating the aiports terminal and runway extension on Sunday.

According to President Jokowi, the expansion of the airport is very important for accelerating the economic development in East Nusa Tenggara, particularly that of the Flores Island and its surrounding.

He said that the airport was expected to become a gate for tourists to come to enjoy the beauty of Labuan Bajos beaches and undersea panorama, the beauty of Lake Kalimutu, the prehistoric Liang Bua Cave, the Komodo Park in Komodo Island, the Merah Muda Beach and many others.

The President also asked that the promotions of the region should be intensified after the inauguration of the airport terminal.

The regional government needs to cooperate with various airlines to increase the intensity of flights to the airport, the president added.

He expressed his hope that flights coming to the Komodo airport should come not only from Bali but also from other cities in Indonesia and abroad such as Jakarta, Surabaya and Singapore.

Jokowi also expected that the economy of Labuan Bajo would improve in line with the increasing number of tourists visiting the region.

The economic activities in Labuan Bajo could be generated through increasing the number of hotels, advancing creative economy in the form of souvenirs and boosting tourism-related small-business development.

He asked the airport management to continue maintenance of the newly inaugurated airport.

The airport was initially developed as an air strip in 1975. Now the airport already has a clean and specious terminal with an artistic design. It now had a 2,250-meter runway with a width of 45 meters.

The president arrived in NTT on Sunday for a working visit during which he will also inspect a 5-MW solar power plant in Oelpuah Village, Centgral Kupang District.

On Monday, the president is expected to visit Atambua to launch the inauguration of the groundbreaking development of Rotiklot Dam in the border area with Timor Leste.

He will also attend the Christmas Day celebration in Kupang before leaving for Jakarta.

(T.SYS/A/A014/A014)

President Jokowi inaugurates Komodo Airport in East Nusa Tenggara - ANTARA News