Indonesia Economy Forum

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Toyota ready to invest Rp5.4 trillion in Indonesia
Jumat, 19 Februari 2016 15:01 WIB | 548 Views

Jakarta (ANTARA News)- The Toyota Motor Corporation (TMC) group is ready to invest Rp5.4 trillion in Indonesia this year, according to Industry Minister Saleh Husin.

Husin received the pledge during a meeting with TMC Executive Vice President Seiichi Sudo in Nagoya, Japan, on Thursday.

"Toyota is serious about doing business in Indonesia. This year, it will invest Rp5.4 trillion, following the Rp5 trillion worth of investment that the company made in 2015," he noted in a press statement received here, Friday.

This reflects that global investors still trust Indonesias investment climate and see prospects in the nations automotive industry, he noted.

The minister has lauded Toyota for its trust and continued investment in Indonesia, after selecting the nation as one of its investment destinations and a Toyota car production base so far.

He called on Toyota and its partners in Japan to increase investment in the automotive sector, particularly for the manufacturing of materials and spare parts.

The minister also invited the company to conduct research and development activities in Indonesia to strengthen the structure of Japans existing automotive industry in Indonesia.

Husin also urged Toyota to increase the production of cars in Indonesia, which has a population of over 250 million, including 74 million belonging to the middle class.

The Toyota brand dominates around 31-32 percent of Indonesias domestic market.

Within five years, from 2015 to 2019, Toyota has planned to invest a total of Rp20 trillion.

Until 2014, Toyota had invested Rp40 trillion in Indonesia.

Currently, the Japanese company is constructing an engine plant in Karawang, West Java. (*)
Toyota ready to invest Rp5.4 trillion in Indonesia - ANTARA News

Toyota ready to invest Rp5.4 trillion in Indonesia
Jumat, 19 Februari 2016 15:01 WIB | 548 Views

Jakarta (ANTARA News)- The Toyota Motor Corporation (TMC) group is ready to invest Rp5.4 trillion in Indonesia this year, according to Industry Minister Saleh Husin.

Husin received the pledge during a meeting with TMC Executive Vice President Seiichi Sudo in Nagoya, Japan, on Thursday.

"Toyota is serious about doing business in Indonesia. This year, it will invest Rp5.4 trillion, following the Rp5 trillion worth of investment that the company made in 2015," he noted in a press statement received here, Friday.

This reflects that global investors still trust Indonesias investment climate and see prospects in the nations automotive industry, he noted.

The minister has lauded Toyota for its trust and continued investment in Indonesia, after selecting the nation as one of its investment destinations and a Toyota car production base so far.

He called on Toyota and its partners in Japan to increase investment in the automotive sector, particularly for the manufacturing of materials and spare parts.

The minister also invited the company to conduct research and development activities in Indonesia to strengthen the structure of Japans existing automotive industry in Indonesia.

Husin also urged Toyota to increase the production of cars in Indonesia, which has a population of over 250 million, including 74 million belonging to the middle class.

The Toyota brand dominates around 31-32 percent of Indonesias domestic market.

Within five years, from 2015 to 2019, Toyota has planned to invest a total of Rp20 trillion.

Until 2014, Toyota had invested Rp40 trillion in Indonesia.

Currently, the Japanese company is constructing an engine plant in Karawang, West Java. (*)
Toyota ready to invest Rp5.4 trillion in Indonesia - ANTARA News

 

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Sri Fatmawati wins international award for career women scientist
Kamis, 18 Februari 2016 15:36 WIB | 837 Views

Sri Fatmawati. (chem.its.ac.id)

Jakarta (ANTARA News) - Dr Sri Fatmawati, an Indonesian biologist, has bagged the Elsevier Foundation Award for Career Women Scientists in the Developing World.

"I want to thank my husband, parents, children, supervisor, and also my students. Because this award is not for me, this is for us, this is our work, and this is our research," Fatmawati stated after receiving the award during the American Association for the Advancement of Science (AAAS) Annual Meeting in Washington D.C., on Feb. 13.

Born in Sampang, Madura, and having received her Ph.D from the University of Kyushu, Fukuoka, Japan, Sri Fatmawati works as an assistant professor at the Laboratory of Natural Product and Chemical Synthesis, the Sepuluh Nopember Institute of Technology (ITS), Surabaya, East Java Province.

"I do not know what the future holds, but I know that science is part of my soul. I hope more people from the younger generation will dedicate their lives to science for creating a better world," she remarked during the AAAS award ceremony.

The Madurese woman researched the medical potential of natural substances from plants and fungi, such as Jamu, a traditional Indonesian herbal medicine given to her as a child.

Fatmawati and four other women researchers were awarded for their commitment to research and the potential to impact health and economies in developing nations, the AAAS published on its official website (www.aaas.org).

The four other winning Elsevier scholars are Dr Ghanya Naji Mohammed from Yemen, Dr Magaly Blas from Peru, Dr Sushila Maharjan from Nepal, and Dr Etheldreda Nakimuli-Mpungu from Uganda.

Each winner received a cash prize of US$ five thousand and an all-expenses paid trip to attend the 2016 AAAS Annual Meeting in Washington D.C., granting them the opportunity to network and attend mentoring and science communication workshops.

An award in the form of additional US$2.5 thousand was announced at breakfast, donated by retired Boeing executive Martha Darling and her husband Gil Omenn, former president of AAAS.

This year, the five winners were recognized for their accomplishments in the fields of nutrition, psychiatry, biotechnology, womens health, bioenvironmental sciences, and epidemiology, according to the Elsevier Foundation.

The award also celebrates mentoring young women scientists who are pursuing careers in agriculture, biology, and medicine.

The winners are dedicated women scientists who achieved excellence in their research fields, despite often having limited resources, poor equipment, and dispiriting working conditions, stated Tonya Blowers, program coordinator for the Organization for Women in Science for the Developing World (OWSD), which launched the awards in 2012 along with the Elsevier Foundation and the World Academy of Sciences.

"This award is an important recognition for the difficult choices they made and will encourage other women from challenging backgrounds to follow their own scientific dreams," Blowers affirmed.

Fatmawati had earlier won the Early Chemist Award 2015 in Honolulu, the United States, and the prestigious Fellowship International LOr al-UNESCO for Women in Science, presented in France in 2013, for research conducted to analyze substances from sponges that may lead to treatments for malaria, cancer, and Alzheimers disease.
(Uu.F001/INE/KR-BSR/O001)

Sri Fatmawati wins international award for career women scientist - ANTARA News

 

[pr1v4t33r]

Economic and Political Trends in Indonesia
1. Economic Growth Prospects: M. Chatib Basri, Universitas Indonesia
2. Democratization and Decentralization: Thomas Pepinsky, Cornell University
3. Indonesia in a Regional and Global Context: Dwight Perkins, Harvard University

The Business Ecosystem in Indonesia
1. Trade and Investment: Arianto Patunru, Australian National University
2. Creative Economy: Mari Pangestu, Universitas Indonesia
3. Doing Business in Indonesia: Louis Wells, Harvard University

 

[pr1v4t33r]

New executive train sets manufactured by PT.INKA train factory in Madiun rolled out for test

 

[Nusantara]

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can you please write a caption, I am clueless about this pictures

 

[Nike]

President Jokowi to oversee LRT project in Palembang
Sabtu, 20 Februari 2016 11:22 WIB | 462 Views

Palembang, South Sumatra (ANTARA News) - President Joko Widodo (Jokowi) will in the near future oversee the development of the Light Rail Transit (LRT) project in Palembang, South Sumatra, according to Governor Alex Noerdin.

"The President actually plans to oversee the progress of LRT development in Palembang to find out if there is any obstacle," the governor remarked here Saturday.

The development of light rail lines must be completed before the 2018 Asian Games in Palembang, he said.

"Therefore, the Presidents plan to oversee the project is important because it has to be completed as planned," the governor said.

The LRT development project now in progress would be completed on time as no obstacles have been found, Transport Minister Ignasius Jonan assured here recently.

"Before the Asian Games 2018, the LRT will be open for use," he said after meeting with Governor Alex Noerdin at the Sultan Mahmud Badaruddin II airport here.

Based on the report, construction of the light railway lines has progressed as expected, and this showed that the program would be finished as planned, he said.

He emphasized the importance of coordination because development projects are very much connected with public facilities.

Many public facilities could be affected due to the project such as gas pipes, the electricity network as well as clean water supply lines, and so coordination must be prioritized, he said.
(Uu.O001/INE/KR-BSR)
President Jokowi to oversee LRT project in Palembang - ANTARA News


High-speed train project`s development would require 4000 workers
Jumat, 19 Februari 2016 05:34 WIB | 934 Views

Bandung, W Java (ANTARA News) - The development of a high-speed rail project connecting Jakarta and Bandung is expected to require about 4000 workers, PT Kereta Cepat Indonesia China (KCIC) Director, Hanggoro Budi Wiryawan stated.

"More than 4000 workers will be absorbed in the construction of a high-speed rail project connecting Jakarta and Bandung," Hanggoro said on Thursday.

KCIC is committed to empowering local citizens to work in the development of the project.

"We will coordinate with cooperatives to provide food and shelter. Experts and supervisors will come from outside," Hanggoro remarked.

Therefore, he appealed to villages' heads to provide data on local residents seeking employment with the project.

"We request that data should specify the skills or ability of local citizens. We will train those who do not have the required skills," he said.

On the occasion, village heads and community representatives around the project listened to the presentation and explanation of the plan of the project.

"Village heads and community representatives expressed their aspirations, while we explained the program. As a result, all programs will be able to involve all stakeholders, such as communities," he said.

Earlier, National Development Planning Minister Sofyan Djalil had defended the Jakarta-Bandung high-speed railway project on Friday, urging those questioning the mega-project to consider the issue from the viewpoint of Indonesia's future needs.

"We must see this project in the context of the nations future vision. Please do not see it from a short-term perspective. We can imagine that Java will become an island-city within 30 to 50 from now. We must see this project from that perspective," he told newsmen here.

Sofyan, who is also the head of the National Development Planning Agency, said he was aware of the fact that many people had questioned the need to construct this US$5.5 billion railway project because a toll road already connects Jakarta to Bandung. "Many others debate the safety of the high-speed train, but we need this train not only for the Jakarta-Bandung route but also for the Jakarta-Surabaya route," he said.

Sofyan also argued that Java would transform into an "island-city" in the future, and Indonesia would need two or three high-speed trains.

"Therefore, if we do not build such an infrastructure today, when are we going to do so?" he said, adding that the Environment Impact Analysis (Amdal) was needed for this 142.3 kilometer railway project.

The construction of this mega-project has been underway after President Joko Widodo officially launched it with a ground-breaking ceremony on January 21. Later, it triggered a public debate about the pros and cons of the project.

Certain parties alleged that this high speed railway project was being backed by a government guarantee even though the Indonesian government, from the beginning, has been asserting that it will not provide any state budget guarantee for the venture.

State Enterprises Minister Rini Soemarno told journalists on Monday that all procedures have been followed transparently and that the project is being undertaken as per a business-to-business formula.

"I am sad to see some people always talking about the high-speed train without backing their allegations with clear facts and data," she said.(*)


High-speed train project`s development would require 4000 workers - ANTARA News

 

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Terminal Peti Kemas SorongAktivitas bongkar muat di Terminal Peti Kemas Sorong, Papua Barat, Jumat (19/2). Terminal Peti Kemas Sorong dengan kapasitas 30.000 teus merupakan pelabuhan konvensional dengan panjang 340 meter yang memotong lalu lintas kapal pelayaran ke Australia. (ANTARA FOTO/Sahrul Manda Tikupadang)

Gresik dam expected to be operational in August this year
Sabtu, 20 Februari 2016 15:46 WIB | 563 Views

Progress of Bendung Gerak Sembayat (BSG) Gresik, East Java. (pu.go.id)

Gresik (ANTARA News) - The Bengawan Solo river dam designed mainly to cope with frequent floods in downstream area of that river in the regency of Gresik, East Java, will be operational in August, head of the Bengawan Solo River Monitoring Office (BBWS) Yudi Pratondo said.

Under its contract, the completion of the project is set for December, 2016 , but it is expected to finish the work earlier by the end of July and to be operational in August this year, Yudi said said here on Saturday.

The dam called Bendung Gerak Sembayat (BGS), which will holds water of Javas largest river, is 160 meters wide with dam walls 6.3 meters high.

Deputy Regent of Gresik, Mohammad Qosim, said he would ask the central government to develop the dam into a tourist object that it would give extra income for the district.

In addition to its main function to control floods and guaranteeing water supply for the district of Gresik and Lamongan , the dam is also potential as a tourist destination, Qosim said.

He said he greatly appreciated the central government for building the dam.

Public Works and Housing Minister Basuki Hadimulyono, visited here on Friday to see progress made in the construction of the dam.

"The BGS project is financed with fund from the state budget amounting to Rp720 billion . It has the capacity of holding 15 million cubic meters of water . Now the project is 95 percent completed and it would save the district from the threat of floods and shortage of water supply in dry season," the minister said.

The dam would also function to irrigate 800 hectares of rice fields and for water pump irrigation of 3,500 hectares of other farm lands.

"This dam will also provide standard water for the Drinking Water Supply Company (PDAM)," the minister said.

He said the central government also has built dams in other downstream areas of Bengawan Solo, including the Karangnongko, Bojonegoro and Babat dams , built mainly to guarantee water supply in dry seasons.

The government plans to build tens of new irrigation dams that would also function to prevent floods in rainy season and guarantee drinking water supply in dry season.
(Uu.H-ASG/O001)

Gresik dam expected to be operational in August this year - ANTARA News

Govt aims to earn Rp25 trillion from retail sukuk SR-008
Jumat, 19 Februari 2016 05:27 WIB | 794 Views

Jakarta (ANTARA News) - The government aims to earn Rp25 trillion-Rp30 trillion in funds from the issuance of state retail sharia bonds series SR-008 which has just been launched to raise public funds to finance the state budget.

"Our target is Rp25 trillion-Rp30 trillion. If demand is high we will upsize (the bonds) to up to Rp30 trillion," Director General of Financing and Risk Management at the Finance Ministry Robert Pakpahan said in a press briefing here on Thursday.

He said the government has received orders from sales agents for the bonds worth Rp43 trillion or higher than the indicative target.

The retail sukuk SR-008 will be issued on March 10, 2016 by virtue of Asset to be Leased Ijarah, with projects or activities of the state budget 2016 and state property in the form of land and buildings as underlying assets.

The sukuk which will be issued at a coupon of 8.3 percent per year will be offered from February 19 to March 4, with a minimum subscription of Rp5 million and a maximum subscription of Rp5 billion.

Yield on the retail sukuk series SR-008 due on March 10, 2019 will be paid every 10th with the first payment on April 10, 2016.

The government also has appointed 20 banks and six securities companies as sale agents for the retail sukuk series SR-008.(*)

Govt aims to earn Rp25 trillion from retail sukuk SR-008 - ANTARA News

 

[Nike]

Revenue Target This Year on the Back of 4G Expansion

Jakarta. Telekomunikasi Selular, Indonesia's largest mobile operator, is optimistic that it will increase its revenue by 11 percent this year on the back of the company's 4G mobile broadband service expansion.

The company, which is a unit of state-owned Telekomunikasi Indonesia, the country's largest telecommunication operator, aims to earn at least Rp 84 trillion ($6.2 billion) in revenue this year, up from Rp 76 trillion last year, Telkomsel sales director Mas'ud Khamid said in a recent interview.

"Last year we exceeded our Rp 72 trillion revenue target. So, I think this year we will achieve more than the target as well," Mas'ud said.

Telkomsel established 4G mobile broadband services in 30 cities across the archipelago last year, and plans to provide the service in 10 more cities this year.

The company has set aside Rp 13 trillion in capital expenditure this year, in part to build infrastructure necessary for the broadband service.

"The target is to increase the number of Telkomsel 4G subscribers, now at three million, to 10 million by the end of this year," he said.

Confident Telkomsel Aims to Exceed $6.2b Revenue Target This Year on the Back of 4G Expansion | Jakarta Globe

Indonesia Expects Rp 90t Drop in State Revenue in 2016: Finance inister
Jakarta. Indonesia is likely to see a 90 trillion rupiah ($6.7 billion) drop in state revenue this year as global commodity prices remain low, the finance minister said on Wednesday.

The figure is a shortfall in the government's 2016 target of 1,822 trillion rupiah in revenue.

Finance Minister Bambang Brodjonegoro told reporters the calculation was based on oil averaging $30 per barrel.

Lower-than-expected tax revenue may exacerbate the drop, he added.

Reuters


Indonesia Expects Rp 90t Drop in State Revenue in 2016: Finance inister | Jakarta Globe

just wishing India economic growth can take the hot place of Chinese economic slumps of today

 

[Nike]

Terminal Baru Bandara SorongSuasana di terminal baru Bandara Domine Eduard Osok, Sorong, Papua Barat, Sabtu (20/2). Pembangunan terminal baru Bandara Domine Edward Osok telah rampung dan dioperasikan untuk uji kelayakan sebelum peresmian pengoperasian oleh Presiden Joko Widodo. ANTARA FOTO/Sahrul Manda Tikupadang/pd/16

Terminal Baru Bandara SorongPenumpang melewati jalur pintu 2 menuju ke pesawat di Bandara Domine Eduard Osok, Sorong, Papua Barat, Sabtu (20/2). Pembangunan terminal baru Bandara Domine Edward Osok telah rampung dan dioperasikan untuk uji kelayakan sebelum peresmian pengoperasian oleh Presiden Joko Widodo. ANTARA FOTO/Sahrul Manda Tikupadang/pd/16

Indonesia Turns to Manufacturing to Counter Commodities Slump

Cilegon. At a factory surrounded by towering steel mills on the west side of Indonesia’s Java island, German engineering giant Siemens is ramping up production of steam condensers, turbines and other specialist parts to fit out power stations across the world.

The plant, a small repair shop 30 years ago but now covering the area of six soccer pitches, is a rare manufacturing success that Indonesian President Joko Widodo needs more of, as he tries to spur economic growth in the resource-rich archipelago amid tumbling commodity prices.

In pursuit of that goal, Joko last week liberalised dozens of sectors of the economy in what one minister called the biggest opening to foreign investors for 10 years.

It was the latest policy move to improve competitiveness and stimulate growth in Southeast Asia’s largest economy, which last year expanded by 4.8 percent, the slowest since 2009 and well below a 7 percent target.

So far, Joko, a former furniture exporter, has little to show for his push towards manufacturing.

Growth in the sector has lagged the overall economy since he took office in late 2014, and last year there were declines in output of major products including clothing, textiles and electrical equipment.

Thomas Lembong, once a Wall Street banker and now Joko’s trade minister, said turning things around would not be easy.

“We realise we’ve fallen very far behind,” he told Reuters, pointing to creaky infrastructure, patchy power supplies and slow progress on free-trade pacts to prise open Western markets.

“We’re changing direction after 10 years of drift towards narrow nationalism and protectionism.”

World Trade Stalls

The government has accelerated reforms, including cutting bureaucracy, promoting special economic zones and boosting spending on infrastructure projects like ports and roads.

It has also signalled greater openness to foreign trade by stating its intention to sign the Trans-Pacific Partnership, a U.S.-led trade pact, in what some see as a sign liberals are winning the argument over Indonesia’s economic future.

Trade tariffs, local-content requirements and other restrictions are still common, but Thomas said the benefits of free trade were now recognised more widely.

“Imports are an important part of the journey towards investment and exports,” he said, citing Chinese electronics firm Lenovo, which opened a plant in Indonesia in November after years of selling the country smartphones made entirely abroad.

Yet Indonesia faces daunting challenges to a manufacturing drive that mirrors a similar initiative, albeit on a larger scale, underway in India.

Across Asia, exporters are struggling as global trade stalls. In January, the International Monetary Fund (IMF) estimated the volume of world trade grew just 2.6 percent in 2015, the slowest in six years.

Japanese electronics firms Toshiba and Panasonic have shut factories in Indonesia as part of global restructurings, while a strike by workers at the Batam free-trade zone in January disrupted operations at an Apple subcontractor, prompting the firm to threaten a move to Vietnam.

Benedict Bingham, the IMF’s head in Jakarta, said Joko’s recent reforms had succeeded in shifting the debate away from protectionism towards competitiveness.

But foreign investors needed to be convinced the government was serious on reform, while domestic firms must cease practices centred on “extracting maximum rents” from Indonesia’s resources or markets and start competing internationally, Bingham said.

“That is quite a big shift we’re asking for.”

Local executive I Made Dana Tangkas, of the Indonesian Automotive Industry Association, says Indonesia needs to develop supporting industries to compete.

“The policy packages are positive for industry ... but they need to be improved,” he said, adding it is difficult to obtain car components locally even though raw materials are abundant.

Commodity Collapse Hits Indonesia

The collapse in prices for oil, gas and other commodities has caused economic distress across a country that depended heavily on natural resources as China boomed.

Industries like plantations and mining account for around one fifth of Indonesia’s gross domestic product and half its export earnings.

Coal, Indonesia’s largest export by far, sold for nearly $200 per tonne in world markets in mid-2008. Today it sells for around a quarter of that.

“It is hard to see ... how this economy is going to create higher productivity without a revival of the manufacturing sector,” said Rodrigo Chaves, the World Bank’s Jakarta head.

At the Siemens factory, General Manager Christof Cichon is positive about Indonesia’s manufacturing prospects, pointing to improved services from customs and investment officials.

He also says there are plans to expand the facility to meet growing demand.

Yet Cichon cannot conceal his frustrations.

Scrap metal is piling up on site because of regulations that mean it takes six weeks to process paperwork to sell to small traders outside the estate. The factory could use the space to increase its productive area by 1,000 square feet. It is another example of the irritants Joko must address to wrest market share from Asia’s larger, longer-established manufacturing centres.

Additional reporting by Fransiska Nongoy

Reuters
Business | Jakarta Globe

 

[Nike]

Govt to establish economic
zone for MRO
Farida Susanty, The Jakarta Post, Singapore | Business | Fri, February 19 2016, 8:50 AM


The government is on track to establish a special economic zone for companies involved in aircraft maintenance, repair and operations (MRO) services, after giving tax incentives in a bid to push forward the archipelago’s aviation industry.

Industry Minister Saleh Husin said the ministry was considering Bintan, Riau, to establish the special zone, as MRO facilities were already established there.

“There are requests from the companies to focus on one place to develop the MRO services, so it can be integrated,” he said on the sidelines of the Singapore Airshow recently.

Saleh added that Bintan had a strategic position as many airlines went to nearby Singapore for
MRO. “We know that Singapore has limited space and it can be expensive to have MRO services there. Why don’t we develop it in a nearby location like Bintan, so people can switch to having the services there?” he said.

The government is said to be in ongoing discussions with companies like GMF AeroAsia, national flag carrier Garuda Indonesia’s MRO service subsidiary, on its facilities in Bintan, as well as other companies.

Currently, GMF is developing a hangar in Bintan, which is being built in a joint venture with Bintan Aviation Investments, a subsidiary of Singapore-based Gallant Venture, dating back to 2014.

Gallant Venture has the concession to build an airport in the area, which is slated to operate by 2017, with the company providing land for the hangar development for GMF. The hangar is slated to have the capacity to contain wide-body aircraft such as Boeing 747 and Airbus 330.

Meanwhile, the country’s biggest low-cost carrier Lion Air Group has also established an MRO service at nearby Hang Nadim Airport in Batam, which is close to Bintan.

Saleh said companies establishing MRO facilities in Bintan would get incentives that were applicable to special economic zones, as stipulated in the economic package.

The incentives would include a tax holiday or tax allowance, according to Saleh, adding to the scrapping of taxes on aircraft components for the industry.

The aircraft MRO business is estimated to be worth US$1 billion per year, with Indonesian businesses currently taking up only 30 percent.

There are an estimated 60-70 aviation MRO companies in Indonesia, with GMF AeroAsia the only one certified by the European Aviation Safety Agency (EASA) and US Federal Aviation Administration (FAA).

GMF AeroAsia president director Richard Budihadianto said in an official statement that the expected total spending for MRO over the next five years would reach $32 million, with engine maintenance hitting $28 million worldwide, giving the opportunity for local MRO to access international markets.

Commenting on the plan, State-Owned Enterprises Minister Rini Soemarno said she had also pushed Garuda Indonesia to negotiate with aircraft manufacturers such as Boeing and Airbus to hand over the servicing of their aircraft to Garuda, as it had purchased plenty of their products.

GMF signed a deal with Netherlands airline KLM worth $3.5 million on aircraft components and engine maintenance on Wednesday. It was estimated to have signed deals worth more than $100 million during the Singapore Airshow.

Rini also said the government was mulling other places for the MRO service area, including Biak in West Papua, Makassar in South Sulawesi, Manado in North Sulawesi and Kualanamu in North Sumatra.

“Basically just the places that can be easily reached by foreign airlines for servicing,” she said, adding that the government planned to establish the area in two years.

The government would also need to prepare the human resources and technicians needed for the industry.

Meanwhile, Indonesian aircraft parts manufacturer Pudak Scientific’s director Andreas Wangsanegara said he understood that MRO companies should probably be concentrated in Bintan, though he called on the government to also develop a specialized aircraft parts manufacturing area on Java.

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- See more at: Govt to establish economic zone for MRO | The Jakarta Post

Japan licks wounds, enhances
grip on autos
Khoirul Amin, The Jakarta Post, Jakarta | Business | Sat, February 20 2016, 11:03 AM

Indonesia’s huge population and growing middle class continues to attract Japanese automakers and is helping to attenuate the East Asian country’s disappointment in its defeat to China for the US$5 billion high-speed rail project between Bandung and Jakarta.

In a recent move, Japanese auto giant Toyota Motor Corporation announced that it would invest Rp 5.4 trillion ($399.9 million) this year to expand its business in the country, where annual car sales have reached around 1 million units from just hundreds of thousands of units five years ago.

“Toyota is doing serious business in Indonesia. This year alone, it will invest Rp 5.4 trillion after investing Rp 5 trillion in 2015,” said Industry Minister Saleh Husin in a statement, sharing his experiences from a recent visit to Nagoya, Japan.

Toyota, which controls over a third of Indonesia’s car market, plans to invest a total of Rp 20 trillion in the largest car market in Southeast Asia from 2015 to 2019, according to data from the Industry Ministry.

Last year, Japanese car brands accounted for 98 percent of total car sales.

The country maintained its annual car demand at around 1 million units in 2015, signaling a strong appetite for new cars despite a six-year low in economic growth.

Auto sales in Indonesia have reached over 1 million units since 2012, when the country’s auto sales surged 24.8 percent from 894,000 cars in 2011.

The strong car market in Indonesia has also enticed the Japanese component industry to review the possibility of joining with Indonesia’s local component industry.

Early this month, a number of delegates from Fukuoka, one of Japan’s prefectures, paid a visit to the Industry Ministry office in Jakarta, to express their interest in partnering with Indonesia’s small and medium-sized component makers.

“Indonesia’s market has rapidly grown and become the largest market in ASEAN. From an industrial view, the country has also become a leading production base,” said Fukuoka governor Ogawa Hiroshi.

Fukuoka is home to well-known Japanese car brands Nissan, Toyota and Daihatsu.

Japan’s continued commitment to Indonesia’s automotive industry highlights its profound business interest in Indonesia despite its recent defeat to China in the Jakarta-Bandung high-speed rail project.

Some analysts argued that the defeat could lead to a souring in relations between Indonesia and Japan given that the bullet train has become a source of pride for many Japanese people.

“Investment seeks profit. So when they lost the high-speed rail project, they began looking at other projects,” said Mahmud Syaltout, an international trade law and policy expert with University of
Indonesia.

He added that for Japanese automakers, investing in Indonesia would be beneficial because it would move them closer to raw materials, markets and human resources.

Japan has maintained its position as one of the top sources of foreign direct investment in Indonesia, with total investment in the country hitting $2.9 billion last year. Japanese investment in the country makes it Indonesia’s third largest foreign investor after Singapore and Malaysia.

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- See more at: Japan licks wounds, enhances grip on autos | The Jakarta Post

 

[Nike]

Economy in brief: Vale
records highest annual
production
The Jakarta Post, Jakarta | Business | Fri, February 19 2016, 7:48 AM

Publicly listed nickel mine operator PT Vale Indonesia posted the highest annual production volume in its history last year.

The production volume of 81,177 metric tons was 3 percent higher than the 2014 annual production volume.

Production volume in the fourth quarter of 2015 was 8 percent higher than that in 2014. That volume represents the highest quarterly production volume in its operation in Indonesia.

Vale Indonesia, shares in which are traded on the Indonesia Stock Exchange under the code INCO, said in a statement Thursday that it would maintain its full year production target of around 80,000 tons this year. - See more at: Economy in brief: Vale records highest annual production | The Jakarta Post

Govt to increase grip on
industrial estates
Khoirul Amin, The Jakarta Post, Jakarta | Business | Thu, February 18 2016, 10:58 AM

The government is planning to increase its grip on the country’s industrial estates by setting up a special unit under the Industry Ministry tasked with operating the industrial zones, a senior official said.

In the first phase, the unit will be responsible for operating the government-initiated industrial zones. Later, it will be tasked to acquire several private-run industrial estates on the condition that it has enough money for the takeover.

“Industrial zones are principally infrastructure, which has become the government’s responsibility,” said Imam Haryono, the director general for industrial-estate development at the Industry Ministry.

Currently, only around 6 percent of the total 36,295 hectares of industrial zones in the country are managed by the government through state-owned enterprises or local administrations, with the
remainder operated by private conglomerates.

Among existing industrial zones managed by state enterprises are Medan Industrial Estate in North Sumatra and Wijayakusuma Industrial Estate in Central Java. The government is struggling to lure investors to expand both industrial zones.

Meanwhile, the Karawang International Industrial City (KIIC) and MM2100 industrial town — both in West Java — are operated by joint ventures of Sinarmas Land-Japan’s Itochu Corporation and Japanese Marubeni Corporation-Manunggal Group, respectively.

Both industrial estates were awarded by the Industry Ministry for their excellent facilities and environmental management.

Imam said the new unit tasked with operating the industrial zones could, for example, acquire any existing privately managed industrial zones that were not well developed in two decades time.

He said, however, that any acquisition plan would very much depend on how much money the unit could earn once it was operational. The unit, which will be known as a public service agency (BLU), will be under the Industry’s Ministry directorate general for industrial-state development.

Imam said his ministry had submitted a letter regarding the plan to the Administrative and Bureaucratic Reform Ministry and expected that it would soon receive a response.

Industrial Estate Association (HKI) chairman Sanny Iskandar welcomed the government’s plan, saying it was common in many countries that infrastructure in industrial zones were integrated with the government’s development plans.

Private companies were invited to develop the majority of industrial zones due to the government’s small budget, he said.

Under the administration of President Joko “Jokowi” Widodo, the government has earmarked 14 areas outside Java to be developed as new industrial zones in an attempt to create even economic development. Fifty out of 74 existing industrial zones are located in Java, according to data from the Industry Ministry.

The planned 14 new industrial estates are estimated to require 28,854-ha of land and provide jobs for 962,800 people.

Among the targeted areas for the new industrial zones are Teluk Bintuni (West Papua), Bitung (North Sulawesi), Konawe (Southeast Sulawesi), Ketapang (West Kalimantan), Tanggamus (Lampung) and Sei Mangkei (North Sumatra).

Of the 14 new industrial areas, six are set to be operated by the government through state enterprises and local administrations, and the remaining eight will be managed by private companies.

Imam said that the presence of the BLU was expected to improve the facilitation of tenants and lead to 60 percent of industrial activities in the country being carried out inside the industrial zones in the next 20 years.

The establishment of the BLU is mandated by a new industrial zone regulation, which took effect in December 28 last year.

The new regulation also drops the requirement for each tenant company in industrial zones to perform an Environmental Impact Analysis (Amdal) if the industrial zone already has one. - See more at: Govt to increase grip on industrial estates | The Jakarta Post

 

[pr1v4t33r]

Latest render for Medan Kualanamu Toll Road

Merah Putih Bridge construction progress

 

[Nike]

Indonesia to reduce up to 1.9 tons of plastic garbage
Minggu, 21 Februari 2016 00:05 WIB | 549 Views

Bekasi, West Java (ANTARA News) - Indonesia plans to reduce its plastic garbage by up to 1.9 tons in a year through its garbage reduction program.

"The program will be implemented simultaneously across 22 cities in Indonesia, starting from February 21 in conjunction with the National Waste Care Day," head of the Directorate of Waste Management of the Ministry of Environment and Forestry, Sudirman, said here on Saturday.

He said national garbage production in a year has reached 64 million tons.

"Around 14 percent of the garbage comprises plastic, weighing 8.9 million tons," he said, after his speech at "Public
Dialogue: Boosting the Use of Garbage Gas as Electricity Energy and Development of Regional Dumping Site" at Bantargebang integrated garbage management plant here on Saturday.

He said efforts to reduce the plastic garbage were in line with the governments National Mid-Term Development Plan to reduce national garbage by around 11 percent in 2016.

"One of the efforts is aimed at reducing plastic bags via this program," he said.
Sudirman said the plan would be carried out in stages, with the retail shopping centers being the first target.

He said later the consumers would be required to pay Rp200 per bag to carry their groceries.

"The policy will certainly be implemented in stages at traditional marketplaces," he said.
If the evaluation showed that plastic garbage dropped has significantly, then an increase in the price of plastic bag can be considered, he said.

The proceeds from the sale of plastic bags will later be accumulated and ploughed back into the retail shops economy to be used to support community welfare programs, he said. (*)

Indonesia to reduce up to 1.9 tons of plastic garbage - ANTARA News

Road construction in Papua costs Rp15 billion per kilometer
Rabu, 17 Februari 2016 10:26 WIB | 1.032 Views

Jayapura, Papua (ANTARA News) - Road construction in interior areas in Papua cost up to Rp15 billion per kilometer, an provincial official said.

The cost is especially expensive as there is no access road to the interior areas, the Papua National Road Office Oesman Marbun said.

"All provisions and equipment have to be carried by air to the project locations. Heavy equipment have to be dismantled before being loaded into helicopter," Oesman said here on Wednesday.

He said the government has been committed to bringing modernity to the interior areas by building road despite the difficult terrain.

Economic development has been lagging far behind in Papua partly because of the high cost of building infrastructure especially road to link the many small village scattered in the mountainous region.

President Joko Widodo has pledged acceleration of development of Papua during his repeated visits to the countrys easternmost region.

So far highways available in Papua are only those linking Nabire-Wagete-Enarotali, Waropko -Tanah Merah-Merauke and Wamena-Tolikara-Puncak-Puncak Jaya, Oesman Marbun said.

Security problem also hampers development in Papua with separatists still hiding in the jungles waiting for opportunity to create trouble.(*)

Road construction in Papua costs Rp15 billion per kilometer - ANTARA News

 

[Nike]

Ministry asked to withdraw POF labelled products from market
Minggu, 21 Februari 2016 19:00 WIB | 510 Views

Jakarta (ANTARA News) - Commission IV on food affairs of the House of Representatives (DPR) has called on the Trade Ministry to withdraw imported palm oil free (POF) labelled products from the market.

Commission IV Deputy Chairman Viva Yoga Mauladi said here over the weekend that the POF labeling was a form of anti-palm oil campaign launched by the European Union and the United States.

The House Commission therefore regretted the entry into the Indonesian market of a POF labelled snack product.

Viva said the Indonesian government was developing palm oil-based commodity as a strategic product.

The presence of a POF labelled product in the Ranch Market outlets in Jakarta is proof that the trade ministry has been unaware of it and the product has entered the country beyond its control, he said.

Viva Yoga Mauladi, who is also a politician of the National Mandate Party (PAN), said that packaged food products imported by Indonesia should preferably be Indonesian palm oil-based (CPO).

This could help Indonesian oil palm farmers who control 43 percent of the countrys nine million hectares of oil palm plantations, he said.

He said that regulation on this was needed to protect the market at home from being flooded by non-CPO-based foreign vegetable oil products.

A number of countries in Europe such as France, Belgium and Italy have been imposing a regulation on the POF labeling for non-CPO vegetable oil products.

"We have sent a letter to Trade Minister Thomas Lembong to regret the entry into Indonesia of products with POF labeling. We asked that the products are withdrawn from the market," said Secretary General of the Indonesian Palm Oil Business Association (Gapki) Togar Sitanggang.

He said that the importation of the POF labeled products was counterproductive to the government efforts to popularize Indonesias eco-friendly palm oil abroad.

"This is a serious blow on the national oil palm industry in Indonesia where some 43 percent of oil palm plantations in Indonesia are owned by local farmers. Farmers also produce some 30 percent of CPO production," Togar said.

Currently, there are some four million families who are directly involved in the oil palm industry. If a family has some four to five embers, then about 16 million to 20 million people depend on oil palm plantations and industry.

Tohar said his side has found packaged snack with the POF label being sold in the Ranch Market, Lotte Avenue and Oakwood in Kuningan, Jakarta.

The products were imported from Italy.

The director general for internal trade, Srie Agustina of the Ministry of Trade, said the POF labeling indirectly discredited oil palm production. It constituted a covert negative campaign against oil palm products.

"We will check it in the field," she said.

She said labeling for a food product is allowed to provide information and increase competitiveness such as through the HCCP certification or a label for an award winner.(*)

Ministry asked to withdraw POF labelled products from market - ANTARA News

so many countries feel threatened of our palm oil industries, especially US, French, Brazil and Italy to name a few. We had allies in Netherlands, Germany, China, India and Belgium.

 

[MarveL]

The latest Economist magazine , published yesterday ( February 19, 2016 ) in Global Stock Markets showed Indonesia's stock market performance is the best per February 17, 2016 (year -to -date ) . In US $

In annual terms (year-on-year) Indonesian stock index is still negative 11.35 percent in rupiah and in US $ minus 16.7 percent per February 10, 2016. However, when compared with most developing countries or emerging markets and some advanced countries, Indonesia's position is still better.