Indonesia Economy Forum

[ahojunk]

Indonesia considers lowering bond tax to reduce borrowing costs
PUBLISHED SEP 7, 2016, 5:46 PM SGT

JAKARTA (BLOOMBERG) - Indonesia's government is considering lowering a tax on income generated by all its bonds as it seeks to reduce local borrowing costs, a Finance Ministry official said.

The plan may take effect as early as next year and will cover debt denominated in rupiah and foreign currencies, according to Scenaider Siahaan, director of strategy and portfolio at the ministry's budget financing and risk management office.

This follows a move in June to effectively scrap a withholding tax on interest payments on its global bonds by absorbing the levy. Indonesian yields are the highest among major Southeast Asian issuers.

"The review has been discussed with related units at the ministry and we're preparing to submit it immediately to the finance minister," Siahaan said by text message on Wednesday. The official had said in May that lowering taxes on bonds would help local companies reduce borrowing costs.

The moves are in line with President Joko Widodo's repeated calls for interest rates to "fall, fall, fall, fall and keep falling" to help boost economic growth. Finance Minister Sri Mulyani Indrawati will review the proposal to cut the tax, currently set at 15 per cent for local investors and 20 per cent for foreigners, and the government would need to get parliamentary approval to lower the rate to zero, or scrap it entirely, according to Siahaan.

Indonesia's 10-year government notes yield 6.88 per cent, compared with 3.52 per cent for Malaysian bonds and 2.22 per cent on Thailand's debt, according to data compiled by Bloomberg.

 

[skyhigh88]

Groundbreaking Ceremony
Nissan Group Starts Construction of a New Engine and Transmission Plant in Indonesia
Purwakarta, West Java Province
September 8, 2016
Detik

 

[Nike]

Telkom set to become international telecommunications hub
Kamis, 8 September 2016 20:57 WIB | 163 Views

Jakarta (ANTARA News) - PT Telekomunikasi Indonesia Tbk (Telkom) said it is optimistic it would play the role of international telecommunication infrastructure hub with the development of its Indonesia Global Gateway Cable System (IGG).

"We are developing IGG and it is now in process. Tekom will have significant role. We have program to become an international hub," Vice President for Corporate Communication of Telkom, Arif Prabowo said here on Thursday.

Arif said the IGG would link Indonesia and Europe and the United States.

In 2018, it is expected that construction of the networks between Indonesia and Europe would be completed with the landing point in Dumai and the landing point for submarine cable between Indonesia and the United States would be in Manado, he said.

"The two lines would connect with each other to support domestic and international data traffics," he said.

Separately , General Manager for Submarine Network Division of NEC Corporation Toru Kawauchi said in a statement that his company had signed a contract with Telkom for the IGG development.

"NEC is chosen again by Telkom as the supplier of optic fiber submarine cable system with a speed of 100Gb/s IGG, which would link nine big cities in Indonesia with Singapore and two international submarine cable systems Dumai and Manado," Toru Kawauchi said.

IGG is a submarine optic fiber cable system consisting of cables with a speed of 100 Gigabit per second (Gbps) x 80 wavelength (wl) x 4 optic fiber pair (fp), around 5,300 kilometers long which will link big cities in Indonesia such as Dumai, Batam, Jakarta, Madura, Bali, Makassar, Balikpapan, Takaran and Manado, with Singapore.

After the completion of the IGG project in early 2018 , the cable systems will not only increase connectivity between big cities in Indonesia, but also would provide direct links between the two international submarine cable systems -- one from Europe with landing point in Dumai, and another from the West Coast of the United States with landing points in Manado.

(H-YH) http://www.antaranews.com/en/news/106647/telkom-set-to-become-international-telecommunications-hub

Indonesia is still short of about 700 pilots on annual basis
Kamis, 8 September 2016 19:15 WIB | 421 Views

Tangerang, Banten (ANTARA News) - Indonesia is still short of about 700 pilots on an annual basis and amidst increasing demand for more pilots.

The Head of the Human Resources Development Agency of Transportation Ministry, Wahyu Utomo, while inaugurating transport officers at the Aviation High School (STP) Indonesia Curug, Tangerang, on Thursday, said the shortfall was calculated based on the number of new aircraft bought each year, which is about 70 aircraft.

"One aircraft has at least five crew members, so it comes to about 700, but this does not signal retirement for them," he said.

STIP Curug itself has bought 51 training aircraft, either with a single engine, multiple engines, and helicopters that require a lot of instructors.

Thus, Utomo said, a lot of airlines need to hire foreign pilots to cover their needs.

"Their goal is not only to meet domestic demand, but also the "fight" (struggle) in ASEAN in the framework of ASEAN Economic Community (AEC)," he said.

However, he also termed the condition as ironic because many graduates are not absorbed, which is still in the range of 60 percent.

According to him, a number of graduate pilots are not absorbed; one of the pilots who recently graduated (fresh graduates) wanted to fly a Boeing or an Airbus and reluctantly flew small aircraft, such as an ATR.

Therefore, he said the Transportation Ministry is proposing phasing the pilot's career path in order to make them fly a small plane before flying a medium-bodied or wide-bodied aircraft.

He described the proposal being aimed at the pilot garnering experience and honing new skills by acquiring pascalulus.

Meanwhile, Transportation Minister Budi Karya Sumadi welcomed the proposal and said it should be up for further discussion.

"I appealed to the graduates of Aviation High School Indonesia Curug, that the first time after they graduate, they do not have to fly a jet, for example, fly an ATR flight first for many years, which is really mature," he said.

In addition to pilots, according to him, other personnel, such as air traffic control (ATC), as well as in other sectors, such as land and sea, are also needed.

"If the answer about the pilot dilemma indeed, is said to be less so less, say more yes more, because I am conveying why it happened because the pilot needed verification," he said.

http://www.antaranews.com/en/news/1...ill-short-of-about-700-pilots-on-annual-basis

Ministry takes along university, Microsoft to build smart city
Kamis, 8 September 2016 03:26 WIB | 1.188 Views

Yogyakarta (ANTARA News) - The Ministry of Internal Affairs will be collaborating with the Gadjah Mada University (UGM) and Microsoft to apply information and communication technology (ICT) to set up a smart city in Indonesia.

The cooperation was established through a Memorandum of Understanding (MoU) between the Minister of Internal Affairs, Tjahjo Kumolo, the Deputy Rector of UGM, Paripurna Sugarda, and the President Director of Microsoft Indonesia, Andreas Diantoro. The MoU was signed in Yogyakarta on Wednesday.

"The smart city concept should be developed in order to provide fast, transparent and better services to all people," Tjahjo Kumolo said.

According to him, the idea of smart city based on ICT was necessary to face global competition.

"We are expecting that by mid-2017, all local governments would have applied the concept," he predicted.

Tjahjo noted that of 538 cities/districts in Indonesia, not a single local government has optimally implemented the concept.

However, several cities such as Jakarta, Bandung (West Java) and Surabaya (East Java) have become the reference for other regions to implement the smart city concept.

This concept, according to the minister, will provide immense opportunities to all the people to participate in the decision making process, including budget planning, development planning and formulating draft bills.

The concept also facilitates the governments, academicians, businesses and communities to ensure synergy and work together in order to achieve local and national development.

The President Director of Microsoft Indonesia, Andreas Diantoro, claimed that such cooperation is line with the companys mission to empower the people.

The implementation of smart city concept, according to him, carries an international standard of ISO 180021, covering governance, social and environment managements.

(KR-LWA)
EDITED BY INE/H-YH
(T.SYS/B/KR-BSR/B/H-YH)
http://www.antaranews.com/en/news/1...long-university-microsoft-to-build-smart-city

 

[Nike]

Indonesian steel producers see bigger margins, higher stocks price
Adam Rizky Nugroho | Bareksa.com | Jakarta
Thu, September 8 2016 | 03:25 pm

An employee finishes production of steel pipes at the Krakatau Steel plant in Cilegon, Banten, in this file photo.(The Jakarta Post/-)

After facing a sluggish market last year, three steel companies listed on the Indonesia Stock Exchange (IDX) enjoyed better financial performances in the first half of 2016, leading to stock price increases of more than 100 percent year-to-date.

Krakatau Steel (KRAS), a state-owned enterprise and the largest player in the industry, booked a net loss of US$93 million in the first half of 2016. However, the Cilegon-based company has generated gross profits of $99 million, reversing the $38 million loss in the same period last year.

Efficiency was key to Krakatau Steel's recent gross profits. It recorded $544 million in revenue in the first half 2016, rising 3.5 percent from the achievement in the same period 2015. At the same time, it managed to cut steel production costs by 21 percent, on the back of lower raw material costs.

In more detail, Krakatau Steel's material costs were trimmed by 17.7 percent to $349 million during January-June 2016, compared to $424 million in the same period last year. As a result, the gross profit for steel products rose to $80 million, compared to $71 million in losses earlier.

Better financial performance was also seen in Saranacentral Bajatama (BAJA).

The Karawang-based steel producer improved its profit margin in the first half of 2016 despite a 30-percent drop in revenue. Its gross profit rose 8.3 percent due to the 29 percent decline in production costs. Thus, the company's gross profit margin was up to 6.1 percent from 4 percent earlier.

The stable exchange rate in the first half of 2016 helped Bajatama to avoid losses. In the first six months of this year, the company received gains on foreign exchange worth Rp 21 billion, reversing the Rp 34 billion losses in the same period of 2015.

Source: Bareksa.com(Graphic/File)

Another steel producer, Gunawan Dianjaya (GDST) also managed to create efficiency amid lower revenue. With a production capacity of 400,000 tons of steel plate a year, the company posted Rp 414 billion in revenue during January-June 2016, down 15 percent from Rp 488 billion in the same period last year.

However, the company succeeded in cutting its costs to Rp 340 billion, 33 percent lower than the Rp 515 billion earlier. With lower costs, Gunawan Dianjaya could generate a gross profit of Rp 73 billion, compared to last year's losses of Rp 27 billion.

Stock price

Along with better margins, stock prices of the three companies also climbed. Throughout the year until Sept. 7, KRAS stock prices rose 188.39 percent to Rp 845 apiece from Rp 293 on Dec. 30, 2015.

During the same period, BAJA’s stock price skyrocketed by 233.33 percent to Rp 290 per share, compared to Rp 87 previously. Meanwhile, GDST stocks closed at Rp 146 a piece, 147.46 percent higher than Rp 59 at the end of 2015.

The hike in stock prices was also supported by external sentiments, such as the exception for Indonesian steel products from the safeguard tariff in Vietnam. This policy allows Indonesian producers to sell their steel to the country without the 23-percent tariff. This reflects the good quality of Indonesian steel.

On the other hand, the steel market in Indonesia is still facing a shortage in supply. According to Industry Ministry data last year, the total industry demand for steel was 14 million metric tons, while the total national production was less than 9 million metric tons. (ags)

http://www.thejakartapost.com/news/...s-see-bigger-margins-higher-stocks-price.html

Salim’s Indofood offers China Minzhong buyout
Agencies | Jakarta
Thu, September 8 2016 | 02:32 pm

Publicly listed Indofood Sukses Makmur’s president director Anthoni Salim (left to right), along with Indofood directors Axton Salim and Fransiscus Welirang, prepares to leave the company's annual shareholders meeting in Jakarta on May 8, 2015.(The Jakarta Post/Don)

A company controlled by billionaire Anthoni Salim offered to acquire the rest of China Minzhong Food Corp. in a deal valuing the Chinese company at S$786 million (US$584 million), helping the Indonesian tycoon expand a food empire spanning potato chips, instant noodles and cooking oil.

Salim’s Indofood Sukses Makmur will sell its entire 82.88 percent stake in vegetable processor China Minzhong Food Corp. Ltd. to an investment vehicle controlled by the Indonesian firm’s top executive for US$484.1 million, Reuters reported.

The deal, which was announced in a stock exchange filing on Wednesday, means Indofood has scrapped its earlier plan to sell 52.94 percent of China Minzhong to a vehicle controlled by the Singapore-listed company’s senior executives.

Under the latest agreement, Marvellous Glory Holdings will pay for Indofood’s entire China Minzhong stake with S$416.4 million in cash and the rest in bonds. Indofood will exchange the bonds for 29.94 percent of China Minzhong.

Marvellous offered S$1.20 in cash for each share in Singapore-listed China Minzhong Food, or 25 percent more the stock’s last closing price. The shares traded at S$1.125 as of 11:24 a.m. in Singapore.

Despite the weak global macro-economic conditions, Indofood said it believes in the long-term prospects of China Minzhong, which processes vegetables such as champignon mushrooms and black
fungus.

The Indonesian company, one of the world’s biggest instant noodle makers, also said it chose to retain a reduced stake in China Minzhong due to the “possibility of realizing synergies” between their businesses.

Salim has a net worth of $3.3 billion, according to the Bloomberg Billionaires Index. His First Pacific Co., through Jakarta-listed PT Indofood Sukses Makmur, owns 82.88 percent of China Minzhong Food. Salim has a combined direct and indirect interest of about 45.11 percent in First Pacific, the filing showed.

“Valuations have been beaten down so there is a lot of incentive to take them private,” said Jeremy Teong, an analyst at Phillip Securities Pte. in Singapore.

China Minzhong said the proposal would allow “greater control and management flexibility” in implementing “strategic initiatives,” according to the filing. The offer is contingent on the acquirer gaining acceptances for shares carrying more than 50 percent of voting rights, according to the document.

Brokerage Maybank Kim Eng said in a note to clients on Wednesday that the move is positive for Indofood as it may lead to a lighter balance sheet, lower foreign exchange exposure and improved returns for its capital allocation.

China Minzhong shares surged as much as 20 percent to their highest in more than three years, while Indofood rose 1.5 percent as of 3:35 p.m. on Wednesday to Rp 8,500 apiece. The stocks have surged 68 percent so far this year, easily outperforming the broader benchmark Jakarta Composite Index’s s (JCI) 17 percent gain.

A takeout of the Chinese vegetable-growing and processing company would add to more than a dozen delistings in Singapore — with a combined market value of S$4.5 billion – in the first half of 2016 alone, according to data compiled by Bloomberg.
http://www.thejakartapost.com/news/2016/09/08/salims-indofood-offers-china-minzhong-buyout.html

 

[skyhigh88]

HOMEFOOD & TRAVEL
Indonesia Named among TripAdvisor`s Top Destinations
FRIDAY, 09 SEPTEMBER, 2016 | 10:38 WIB
TEMPO.CO

Saraswati Park Temple, Ubud, Bali. Education Images/UIG via Getty Images

Jakarta - Indonesia has been named among world’s top destinations in the TripAdvisor’s Travellers’ Choice Awards 2016. Tourism Ministry Arief Yahya said the winners were selected based on millions of reviews and opinions made by tourists the world over in the past 12 months.

In this year’s edition of TripAdvisor’s Travellers’ Choice Awards, Indonesia has been named among top destinations in four categories, namely tourist destinations, islands, tourist attractions and beach tourism.

“Each category has its own assessment criteria,” Arif said Wednesday in a press release in Jakarta.

Below are nine Indonesian tourist destinations named in TripAdvisor’s list of the top travel destinations.

1. Ubud, ranks 10th in top 25 destinations in the world and 3rd in top 25 destinations in Asia.

2. Bali, ranks 5th in top 10 islands in the world and 1st in top 10 islands in Asia.

3. Lombok, ranks 5th in top 10 islands in Asia.

4. Gili Trawangan, ranks 5th in top 10 islands in Asia.

5. Tanah Lot Temple, ranks 18th in top 25 landmarks in Asia.

6. Borobudur Temple, ranks 21st in top 25 tourist attractions in Asia.

7. Gili Meno Beach, ranks 11th in top 25 beach in Asia.

8. Balangan Beach, ranks 17th in top 25 beach in Asia.

9. Nusa Dua Beach, ranks 24 in top 25 beach in Asia.

In the Top 25 Destinations in the World, Ubud ranks above Dubai (13th), Bangkok (15th), Tokyo (21th) and Sydney (24th).

Bali ranks 5th in the Top 10 Islands in the World and 1st in Asia followed by Lombok (5th) and Gili Trawangan (6th). “In this category, Indonesia faced stiff competition from Thailand but way ahead of Malaysia,” Arief said.

ARKHELAUS W.
http://en.tempo.co/read/news/2016/0...sia-Named-among-TripAdvisors-Top-Destinations

 

[skyhigh88]

Panorama Destination teams up with Galasys for online travel drive
Written by: Mark Elliott
9th September, 2016 05:29 am
Travel Daily Media

Renato Domini, CEO Panorama Destination, seals the deal with Arief Santosa, director of OM Solutions

Two technology companies have teamed up to help attract more Chinese tourists to Indonesia.

Indonesia’s Panorama Destination, which forms part of PT Panorama Sentrawisata, has signed an agreement with China-based Galasys Plc’s subsidiary, OM Solutions.

Both are IT companies that develop software and digital platforms for online travel agents (OTAs), and their collaboration is aimed at allowing Panorama to directly target the Chinese market.

Panorama has been aiming to capture the Chinese market since the beginning of 2015, when it embarked on its new business strategy. Galasys meanwhile, currently controls a 70% share of the market for ticket sales at theme parks in China.

“The market was large and already beginning to form, so we needed to understand how exactly we can catch this opportunity in a proper manner,” explained AB Sadewa, senior vice president of brand & communications at Panorama Sentrawisata. “[There is] big potential for the development of leisure products in Indonesia, where China is one of the largest tourist contributors in the world.”

Panorama noted that around 80% of FITs make their bookings via OTAs. By combining Panorama’s cloud-based OTA (CLOTA) system with Galasys’ digital platform for transaction systems and payments, plus its network of online distribution channels linked to the Chinese market, Panorama is hoping to significantly improve its Chinese business.

The products to be included in the new Galasys CLOTA system include tours to Bali, Lombok, Wakatobi, Lake Toba and Cinta Island. And Renato Domini, CEO of Panorama Destination, also stated his intention expand this range of tours in future.

“Within the next year we will continue to develop products that offer new destinations so the purpose of this cooperation can be achieved,” he commented.

http://www.traveldailymedia.com/240974/it-companies-join-forces-to-bring-chinese-tourists-to-indonesia/

 

[Nike]

Central Java to build high quality salt factory
Selasa, 6 September 2016 17:59 WIB | 875 Views

Semarang, C Java (ANTARA News) - The Central Java administration plans to build factories to produce high quality salt to improve the welfare of the local salt farmers.

"Currently five pilot projects of salt factory are being prepared," Central Java Governor Ganjar Pranowo said here on Tuesday.

Ganjar said factories to produce high quality salt need to be built immediately in Central Java as the province is a potential producer of salt especially its northern coastal areas.

Unfortunately the quality of farmers salt in that area is relatively low that the price is also low, he said.

The provincial administration has discussed the plan with a number of relevant experts, the governor said.

"There has been talk on the possibility of producing high quality salt," he said.

He said so far the price of farmers salt in northern coastal area of Central Java has been very low at around Rp350 per kilogram.

With the factories the quality of salt would be improved and the price could rise to an ideal level of Rp650 per kg, he said.

Deputy chairman of the regional legislative assembly Yudi Sancoyo asked the regional administration to address the condition of the salt farmers in the region.

"It is feared that the price of farmers salt would drop in this years grand harvest. Instead of gaining from the grand harvest the farmers would likely suffer losses," he said.(*)

http://www.antaranews.com/en/news/106600/central-java-to-build-high-quality-salt-factory

Indonesia, Italy agree to improve trade value
Selasa, 6 September 2016 16:44 WIB | 827 Views

Hangzhou, China (ANTARA News) - Indonesia and Italy will increase the value of trade as agreed at a bilateral meeting between President Joko Widodo and Italian Prime Minister Matteo Renzi.

The meeting was held on the sidelines of the G20 Summit in Hangzhou, China, on Monday (Sept. 5).

President Widodo said Italy is an important trading partner for Indonesia and a center for Indonesian exports to Europe.

"Indonesia is committed to boosting trade with Italy in the future," the president emphasized.

In addition to trade, the two countries are likely to cooperate in several sectors, such as education and culture, maritime, renewable energy, digital technology, and agribusiness.

Prime Minister Renzi invited President Widodo to visit Italy in 2017 to follow up on some points of cooperation discussed at this occasion.

"I would like to promote cooperation in the fields of education and culture with Indonesia in order to improve people-to-people contacts between the two countries," the prime minister stated.

With regard to inter-faith dialog between the two countries, Prime Minister Renzi remarked that Italy will continue the dialog process since Indonesia has an important role as the largest Muslim nation in the world.

President Widodo agreed to improve the dialog process.

"Some 87 percent of Indonesians are tolerant Muslims. I support Indonesia and Italy to organize an interfaith dialog forum to promote the values of moderation and overcome xenophobia," the president added.(*)

http://www.antaranews.com/en/news/106598/indonesia-italy-agree-to-improve-trade-value

 

[Nike]

Proyek Pembangunan MRTPekerja beraktivitas di proyek pembangunan Mass Rapid Transit (MRT) di antara Stasiun Istora dan Stasiun Senayan, Jakarta, Kamis (8/9/2016). MRT Jakarta ditargetkan beroperasi tahun 2019 dimana pada tahap awal, rute yang dilalui adalah dari Bundaran HI-Lebak Bulus dengan jumlah stasiun yang dilalui di rute tersebut sebanyak 13 stasiun.(ANTARA /Rosa Panggabean)

Proyek Pembangunan MRTPekerja beraktivitas di proyek pembangunan Mass Rapid Transit (MRT) di antara Stasiun Istora dan Stasiun Senayan, Jakarta, Kamis (8/9/2016). MRT Jakarta ditargetkan beroperasi tahun 2019 dimana pada tahap awal, rute yang dilalui adalah dari Bundaran HI-Lebak Bulus dengan jumlah stasiun yang dilalui di rute tersebut sebanyak 13 stasiun. (ANTARA/Rosa Panggabean)

Proyek Pembangunan MRTSebuah lokomotif beroperasi di terowongan Mass Rapid Transit (MRT) di antara Stasiun Istora dan Stasiun Senayan, Jakarta, Kamis (8/9/2016). MRT Jakarta ditargetkan beroperasi tahun 2019 dimana pada tahap awal, rute yang dilalui adalah dari Bundaran HI-Lebak Bulus dengan jumlah stasiun yang dilalui di rute tersebut sebanyak 13 stasiun.(ANTARA/Rosa Panggabean)

Target Pembangunan Kereta CepatPengunjung mengamati maket kereta cepat Jakarta-Bandung saat Indonesia Bussiness and Development Expo 2016 di Jakarta Convention Center (JCC), Jakarta, Kamis (8/9/2016). PT Kereta Cepat Indonesia-Cina menargetkan pembangunan kereta cepat Jakarta-Bandung bisa beroperasi pada 2019 dan diharapkan mampu membangkitkan perekonomian daerah secara merata. (ANTARA /M Agung Rajasa

 

[pr1v4t33r]

Nice, even before the screening tonight at TIFF, "HEADSHOT" already start getting rave review. Sweeet!

Brief Summary
The bone-crunching, soul-crushing, face-breaking story of an amnesiac young man named Ishmael, the doctor named Rika who cares for him and the bad men who all need to die in a maelstrom of sweet violence.

Full Description
Iko Kuwais continues to demonstrate why he’s the best in the business with this over-the-top love letter to violent martial art movies from the bone-crunchingly wonderful minds of the delectable Mo Brothers, who have disturbed us before with KILLERS and the wonderful MACABRE.

Iko plays Ishmael, a young man with amnesia discovered washed ashore by Dr. Rika, who takes on his care personally at the hospital where she works. It’s not long before bad men start looking for Ishmael; bad men who know him and want to stop him before he regains his memory. .

It won’t be long before Ishmael is forced to defend the doctor he’s harboring feelings for and unravel the truth about his own identity in the most audacious, eye-gouging, head-spinningly entertaining action set-pieces seen on the screen for a very long time. Ishmael WANTS the truth and he will stop at nothing and no one until he has destroyed all the obstacles in increasingly violent, inventive and squirm-worthy ways standing between him and the final, ugly result. .

Combining hand-to-hand combat with brilliant fight choreography, this film is an epic of violence delivered in searingly hot set pieces which increase with intensity every new turn. .

If crazy, adrenaline-pumping action is your jam, then settle down for what is going to be all of your Christmases rolled into one. Try not to scream in mad joy as you encounter what is bound to be one of the most unforgettable screenings Fantastic Fest has ever hosted, and say hello to your new favorite action movie. (Evrim Ersoy)

http://fantasticfest.com/films/headshot

 

[skyhigh88]

Apple to set up R&D centers in Indonesia
Ayomi Amindoni
The Jakarta Post
Jakarta | Fri, September 9 2016 | 04:15 pm

An aerial view of an Apple dedicated facility at the new Campus in San Giovanni a Teduccio. Apple plans to build two research centers in Indonesia within three years. (Università di Napoli Federico II/-)

US-based technology giant Apple intends to establish two research and development (R&D) centers in Indonesia within three years. It has not specified the locations, but one is expected to be in Java and another outside Java.

Communications and Information Minister Rudiantara said the company and the Indonesian government had been intensively discussing the plan following a visit to the country by the firm's management last year.

"It has been a year since our first meeting. They will establish the R&D centers within the next three years," Rudiantara said at the State Palace on Friday.

Rudiantara added that the centers would focus on software development.

Meanwhile, Industry Minister Airlangga Hartarto said that aside from Apple, the government had also invited Chinese-based telecommunication heavyweight Huawei to increase its investment and expand its innovation center in the country. The invitation was conveyed during President Joko "Jokowi" Widodo's working visit to China for the G20 Summit on Sept 4-5.

"Huawei has been investing in Indonesia. We encourage it to increase its investment and expand its innovation center," Airlangga said. (dmr)

http://www.thejakartapost.com/news/2016/09/09/apple-to-set-up-rd-centers-in-indonesia.html

 

[Nike]

PLN signs Rp32 trillion loan agreement with state lenders
Jumat, 9 September 2016 15:21 WIB | 439 Views

Jakarta (ANTARA News) - The national power utility PT PLN on Friday signed a Rp32 trillion credit commitment with a syndicate of three state lenders - Bank Rakyat Indonesia (BRI), Bank Mandiri and Bank Negara Indonesia (BNI).

The loan agreement including Rp12 trillion in investment credit and Rp20 trillion in working capital credit, was signed by President Directors of PLN Sofyan Basir, BNI Achmad Baiquni, BRI Asmawi Syam, and Bank Mandiri Kartika Wirjoatmodjo, in front of State Enterprises (BUMN) Minister Rini Soemarno.

"The financial support is provided to meet investment in power generating project and to strengthen PLN cash flow in paying for primary energy, " PLN President Director Sofyan Basir said.

The plan is that the investment credit would be used to finance construction of power generating plants, transmission and distribution systems and other supporting facilities.

The working capital credit would be used to strengthen the cash flow of PLN to pay for primary energy.

Under the loan agreement, each of the banks would provide a credit ceiling of up to Rp4 trillion for 10 years.

"With the loan funds construction of new power plants , transmission and distribution networks and supporting facilities could be accelerated mainly to support the implementation of the government program to build 35,000 megawatt power plants until 2019," Sofyan said

Minister for BUMN Rini Soemarno said she endorsed the commitment of state lenders in providing financial support for PLN.

"This is part of synergy among BUMNs I have always talked about that all state companies should support each other to create efficiency," Rini said.

PLN had heavy responsibility for generating power to meet the countrys requirement, she said.

"Through synergy the host of problems could be sorted out one by one. Through this cooperation we hope the electrification target all over the country could become a reality," she said.(*)

http://www.antaranews.com/en/news/106651/pln-signs-rp32-trillion-loan-agreement-with-state-lenders

 

[skyhigh88]

September 10, 2016 5:47 am JST
Indonesia gaining traction as smartphone production center
SADACHIKA WATANABE and TAKFUMI HOTTA, Nikkei staff writers

A monitor shows Sat Nusapersada's production lines assembling Asus smartphones in May.

TOKYO/MUMBAI -- Global smartphone makers are increasingly locating production in Indonesia as an avenue to cultivating Southeast Asia's largest market for the devices.

At a plant of local company Sat Nusapersada in Batam, workers skillfully assembled fourth-generation smartphones in rooms bearing signs strictly barring unauthorized entry.

The company fabricates smartphones on contract for the Taiwanese electronics giant Asustek Computer. "We're the ones who've supported Asus' growth," boasted Bidin Yusuf, Sat Nusapersada's operational director.

Asus' share of smartphone deliveries in Indonesia stood at 16% in 2015, data from U.S. market research firm International Data Corp. shows. That marks a 10-point increase from 2014, lifting the company from fifth place to second. Sat Nusapersada's empty floor space in the first half of this year is now filled with new assembly lines.

Indonesia produces roughly 30 million smartphones and mobile phones annually, according to Sat Nusapersada. That would account for nearly half of the roughly 60 million cellular devices the country imported in 2015. Mobile companies routinely sell smartphones starting at between 1 million rupiah and 2 million rupiah ($76 and $152), and over half of those are 4G devices.

Sat Nusapersada also assembles smartphones on contract for Taiwan's Acer and China's Hisense. It recently also received orders from India's Lava International, cementing its role as a supporter of foreign brands seeking to make headway in the domestic smartphone market.

South Korea's Samsung Electronics has fired up a smartphone production line at an appliance factory located on the outskirts of Jakarta. The leading smartphone maker will use the line to churn out the recently released Galaxy S7 and other 4G devices. The company plans local production for all smartphones sold in Indonesia.

Panggung Electric Citrabuana, an Indonesian contract manufacturer making devices for China's Huawei, now produces over a million smartphones a year.

About 55 million Indonesians had smartphones in 2015, research from U.S.-based Emarketer shows, outstripping the 52 million users in Japan. The smartphone market of Indonesia, which has a population of 250 million, is projected to grow to 92 million users by 2019.

Government intervention

Growth potential is not the only factor driving Indonesia's smartphone manufacturing. In 2015, the Indonesian government mandated that at least 30% of the 4G smartphones sold domestically be manufactured in-country by 2017. Officials seek to cut imports from China and Vietnam and foster growth of a homegrown industry.

However, most of the local manufacturing merely involves assembling imported components. Though Asus, Samsung and Indonesian firm Polytron are seen manufacturing around 20-30% their 4G smartphones domestically, almost all of the parts are shipped from overseas. The phrase "domestic production" is also complicated terminology that can take labor and software usage into account.

The government directive may frustrate procurement of low-cost components from abroad, which would in all likelihood drive up smartphone prices. Indonesia imports Apple iPhones, but those devices may become unavailable through conventional channels.

Emerging countries "have veered into a more aggressive struggle over [foreign] investment that smacks deeply of government intervention," said Yuri Sato, executive vice president at the Japan-based Institute of Developing Economies.

Consumers are not the only ones who will be put at a disadvantage if the government enforces production quotas too strongly. Such regulation may render expanded operations unprofitable. Taiwanese contract supplier Hon Hai Precision Industry, or Foxconn, abandoned plans to set up shop in Indonesia in an apparent response to grim profit outlooks.

http://asia.nikkei.com/Business/Trends/Indonesia-gaining-traction-as-smartphone-production-center

 

[ahojunk]

Indonesia seeks more global e-commerce champs to advise with Jack Ma
Ayomi Amindoni The Jakarta Post
Jakarta | Fri, September 9 2016 | 04:00 pm

The government has welcomed Jack Ma’s readiness to become an adviser to the Indonesian e-commerce steering committee and is looking for other global e-commerce figures to be on the advisory board.

Communications and Information Minister Rudiantara said the government had completed the administrative requirements for officially listing the founder and executive chairman of the world's biggest e-commerce platform, Alibaba, in the government project.

"If we refer to Alibaba’s Twitter account, Jack Ma has accepted the offer. I have communicated with Alibaba executives to formalize this […] Currently, I am looking for other figures so the world can see that Indonesia is serious," he said at the State Palace in Jakarta on Friday.

He explained that international support and exposure were needed in a bid to accelerate e-commerce development in the country, as it would encourage the global e-commerce world to open access to Indonesian players, especially to small and medium enterprises.

"And to increase foreign investment in e-commerce. Thus, we need advisors on the steering committee," Rudiantara went on to say.

He further said the steering committee on e-commerce development would be officially launched after a presidential regulation on the e-commerce road map was issued. Coordinating Economic Minister Darmin Nasution will lead the committee. (ags)

 

[skyhigh88]

Indonesia expects stronger economic ties with Philippines

Photo: Inquirer
Saturday, Sep 10, 2016
Asia One

President Joko "Jokowi" Widodo congratulated the Philippines for its upcoming ASEAN chairmanship in 2017, expecting that Philippine President Rodrigo Duterte's leadership would set the regional bloc's future path.

Jokowi also said he hoped Indonesia and the Philippines would enhance their economic co-operation.

"Amid the global economic slowdown, our trade values have continued to increase. This situation shows that your visit has taken place at the right moment. This visit will give us a new spirit to improve efforts to strengthen co-operation between our two countries," Jokowi said after a meeting with President Duterte at the State Palace during the latter's inaugural visit to Jakarta on Friday.

In the meeting, Duterte highlighted a joint maritime security operation initiated to deal with rampant vessel hijacking, which had hampered coal shipments to power plants in the Philippines.

Nine Indonesian sailors are still being held captive by Abu Sayyaf militants in the southern Philippines.

"I am very sorry that the shipment of coal needed by power plants in my country has been hampered by piracy in the region. Piracy is an international crime," Duterte said.

President Jokowi welcomed Duterte in an official ceremony at the State Palace at 4 p.m.This was the first state visit Duterte has undertaken since his inauguration in June. After the ceremony, both leaders had discussions that ended with a joint press statement.

Prior to the meeting, Jokowi took Duterte to Pasar Tanah Abang, Southeast Asia's largest textile market in Central Jakarta, for a blusukan (impromptu visit). During the visit, Jokowi showed his Philippine counterpart examples of how Indonesia managed social issues.

http://news.asiaone.com/news/asia/indonesia-expects-stronger-economic-ties-philippines

 

[kaka404]

Telkom Hands Contract for 5,300km Submarine Fibre-Optic Cable to NEC
Jakarta. Japanese telecommunication firm NEC Corporation has won a contract from state-controlled Telekomunikasi Indonesia to build submarine fiber-optic cable telecommunication system in a bid to boost connectivity between Indonesia's major cities.

The project is the part of the Indonesia Global Gateway cable system, which is aimed at fulfilling the country's ambition of becoming the world’s hub for telecommunication, information, media, edutainment and services.

The 5,300-kilometer cable system will connect the Indonesian cities of Dumai (Riau), Batam (Riau Islands), Jakarta, Madura (East Java), Denpasar (Bali), Makassar (South Sulawesi), Manado (North Sulawesi), Balikpapan (East Kalimantan) and Tarakan (North Kalimantan), as well as neighboring Singapore.

The project is set for completion in early 2018. The cable will be connected in Dumai with an international submarine cable to Europe and in Manado with a cable to the United States.

"We are really excited to collaborate with Telkom again to build a 100 gigabit per second fiber-optic cable, connecting nine of the biggest cities in Indonesia, along with Singapore," Toru Kawauchi, general manager of NEC's submarine network division, said in a recent statement.

However, the company declined to provide details on the project's cost.

This is the third collaboration between NEC and Telkom after the $250 million Southeast Asia-United States (SEA-US), and Sulawesi, Maluku, Papua Cable System (SMPCS) worth Rp 3.6 trillion ($273 million) in total.

As part of the SEA-US project, NEC rolled out a 15,0000 km undersea cable through Manado, South Davao in the Philippines, Piti in Guam, Honolulu in Hawaii, and Los Angeles, California. Slated to be completed by the end of this year, the link was designed to avoid areas prone to natural disasters, in order to provide an alternative to the existing cable system and ensure a more stable and reliable service.

On the SMPCS project, NEC only worked on a 2,000 km section connecting Indonesia's Papua province with neighboring Papua New Guinea.

related news: https://defence.pk/threads/indonesia-economy-news-updates.198270/page-93#post-8607157