Indonesia Economy Forum

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Smartphone shipments grow 3% on year in Indonesia in 2Q16, says IDC
Steve Shen, DIGITIMES, Taipei [Monday 12 September 2016]

Total smartphone shipments in the Indonesia market recorded a moderate 3% on-year and 22% on-quarter growth in the second quarter of 2016, according to IDC. Growth was a seasonal increase due to Ramadan, with vendors increasing supply in order to cope with demand.

Samsung Electronics ranked as the top smartphone vendor in the market with a 26% share in the second quarter, followed by Oppo 19%, Asustek Computer 9%, Advan 8% and Lenovo 6%, IDC said.

"Samsung and Oppo were actively promoting big marketing campaigns in retail channels. Oppo added more weight to its success in the last couple of quarters by appointing brand ambassadors which were popular among Indonesians," says Reza Haryo, senior market analyst, Client Devices.

The increased marketing activities by vendors, as well as with locals looking to upgrade their mobile phones due to improvements in their lifestyles, have spurred demand for phones in the US$100-US$150 price band.

Shipments of 4G enabled devices grew 37% sequentially in the second quarter and made up slightly over 58% of smartphone shipments.

The bulk of 4G smartphone shipments were priced at US$100-US$150, coming mainly from global and China-based vendors, such as Samsung and Lenovo. In order to compete, local vendors including Advan and Smartfren, have launched models costing less than US$50.

Meanwhile, smartphone shipments via telecom operators rose 166% on quarter and those online also increased 71% on quarter. Models with display sizes ranging 5.5- to 5.-7-inch and a rear camera of 8-13-megapixel grew 42% sequentially in the second quarter.

 

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Jakarta's main road on Eid al-Adha, yesterday. Unusually empty.

 

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Global chocolatiers dwarfed in Indonesia as local champions dictate taste

Multinational chocolatiers have spent almost 20 years trying to crack Indonesia's booming confectionary market, only to build a share that pales in comparison with other emerging economies as long-established local producers fend off foreign incursions.

Nestle SA (NESN.S), Cadbury's owner Mondelez International Inc (MDLZ.O), Mars Inc and Ferrero SpA together hold just one-tenth of a $1 billion market led by homegrown darlings Delfi Ltd (DELF.SI and PT Mayora Indah Tbk (MYOR.JK). In neighboring Malaysia, the foursome commands almost 60 percent.

"The market leader is very strong because it was the first to set the taste for chocolate in Indonesia," Nestle Indonesia confectionary business manager Rully Gumilar told Reuters.

"It's like David fighting Goliath," he said. "It's very big and has huge power, while we are small even though we are a multinational."

Such struggle against a local incumbent is not uncommon among global consumer firms in the world's fourth most-populous country - a tropical archipelago with complex distribution channels, run-down infrastructure and a retail sector dominated by family stores that lack air conditioning to keep goods cool.

But the rewards are potentially huge considering consumption accounts for more than half of a steadily expanding economy, while an increasingly affluent middle class promises ample room for growth.

The chocolate confectionary market is likely to jump 42 percent to 19.5 trillion rupiah ($1.49 billion) in the next three years, data from researcher Mintel showed. That compared with 11.7 percent in the United States where, as in other developed markets, growth has slowed over the past five years.

LOCAL COCOA

Nestle entered Indonesia in 1971 and in the 1990s embarked on a major push in chocolate products, expanding to three brands. Mars and Mondelez began selling chocolate in the early 2000s and, with Ferrero, the four's market share reached 10 percent last year - 1.4 percentage point more than a year prior.

But Delfi set the benchmark taste in the 1950s with its SilverQueen chocolate bars and Ceres chocolate sprinkles, which still feature in the firm's broad line-up. Last year, its market share by sales volume reached 52.7 percent from 48.2 percent.

Such local offerings often cost less to make and so are priced lower. For instance, they tend to contain a greater proportion of cocoa powder, which can be two to three times cheaper than cocoa butter, said Ahmad Zaky Amiruddin, secretary general of the Indonesian Cocoa Industry Association.

Mayora said buying cocoa beans and making chocolate locally also keep prices competitive. In contrast, production at foreign rivals may be part of a more complex, multi-market strategy. Nestle, for instance, imports from its regional halal factory in Malaysia, which sources ingredients from countries including the Ivory Coast.

Indonesians are "very price sensitive", preferring to buy the cheapest of similar products, Amiruddin said.

Delfi's Take-it chocolate fingers, for example, retail at a Jakarta mini-market for 5,500 rupiah ($0.42), around 8 percent less than Nestle's KitKat.

Delfi did not respond to requests for comment.

To fight back, Mondelez is strengthening its marketing and focusing on quality, its Indonesia chocolate brand manager Dini Anggraeni told Reuters. Mars declined to comment; Ferrero did not respond to requests for comment.

Nestle's Gumilar said his firm is trying to find a recipe that balances its global quality standards with local preferences - "the holy grail of the chocolate category" - as well as stepping up product launches and marketing.

"We still want to win," he said. "But it'll be step by step."

 

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Indonesia president opens Priok port expansion in Jakarta

JAKARTA - Indonesian President Joko Widodo inaugurated an expansion of the country's main seaport in Jakarta on Tuesday, a facility upgrade that will cut the time container ships must spend waiting to load or unload.

"We cannot delay the development of modern ports any longer. This supports trade flows and investment in this country," President Widodo said at the opening of New Priok Container Terminal (NPCT) 1 in Kalibaru, the first of five phases of an expansion of Priok port that are to be completed in 2019.

Tanjung Priok port in North Jakarta, which handles the bulk of international shipments into Southeast Asia's biggest economy, has been plagued with bottlenecks and long handling times due to years of under investment.

Logistics costs in Indonesia are up to 2.5 times higher than in neighboring countries, Widodo said.

"If we're slow we'll be left behind," he said.

Widodo has taken a special interest in reducing port dwell times, part of his government's broad efforts to improve the nation's infrastructure to drive economic growth.

Dwell time at Priok is now between 3.2 and 3.7 days, down from up to a week in 2014, Widodo said, adding that he has asked for the wait to be reduced to less than three days.

Bringing Priok in line with global standards will depend on how quickly it can move cargo away from the docks, and whether it can alleviate congestion problems that slow the movement of ships and cargo, increasing costs for exporters and importers, shipping experts said.

"The expansion of Tanjung Priok may encourage shipping lines to launch more direct ship calls to Jakarta, but I do not see it as a major threat to Singapore's transhipment status," said Jonathan Beard, head of transportation and logistics in Asia for design and consultancy firm ‎Arcadis.

The new terminal adds 1.5 million twenty-foot equivalent units (TEU) to Priok's existing 7 million TEU annual capacity, said Elvyn Masassya, CEO of Pelabuhan Indonesia (Pelindo) II, Indonesia's state-owned port company that operates NPCT 1 in a consortium that includes Singapore's PSA International and Tokyo-listed Mitsui <8031.T>.

With 8 cranes that can move 30 containers per hour and berths that can dock ships with a draft of as much as 16 meters, the new terminal will allow Priok to accommodate vessels carrying 10,000 TEUs from Europe and East Asia for the first time, Masassya said.

According to senior maritime consultant Jakob Sorensen, this depth would be adequate to meet Priok's "current and near future requirements for container vessels." REUTERS


Indonesia thwarts attempt to smuggle 166 tons of ammonium nitrate

Finance Minister Sri Mulyani Indrawati speaks to reporters during a joint press conference with Maritime Affairs and Fisheries Minister Susi Pudjiastuti and National Police chief Gen. Tito Karnavian in Tanjung Priok, North Jakarta, on Sept. 13. (JP/Ayomi Amindoni)

Indonesia has foiled three attempts to smuggle ammonium nitrate from April to August, totaling 166.47 tons with a value of US$25.97 billion. Ammonium nitrate is a chemical compound that can be used as an explosive by fishermen to catch fish or terrorists to rig a bomb.

"We have intercepted vessels from Malaysia off Sumatran waters, with the most recently caught vessel carrying 50 tons [of ammonium nitrate]," National Police chief Gen. Tito Karnavian told reporters in a press conference in North Jakarta on Tuesday.

He said that the police had uncovered networks behind the smuggling of the substance, which allegedly is being distributed to the eastern parts of Indonesia, including to Central Sulawesi, South Sulawesi, Flores, Sumbawa and Papua.

"We've been following up [the intercepted shipments] with investigation and have arrested some distributors in Central Sulawesi and Tanjung Pinang. We will further develop [the investigation] in South Sulawesi, Flores and Papua," he said. (dmr)

Indonesian Films in Special Category at Tokyo Film Festival

Jakarta. Indonesian films and culture will become the main attraction of Crosscut Asia, a special segment at the 29th Tokyo International Film Festival running from Oct. 25 to Nov. 3.

Since 2014, the Crosscut Asia non-competition category has been organized to increase Japan's cultural interaction with other countries in Asia. The category helps to strengthen the filmmakers network across Asia and their exchange with journalists and film critics.

Each year, the festival focuses on one country. This year the festival is celebrating "Colorful Indonesia."

Indonesian films have entered the official selection process for the main competition category throughout the years. The works of Garin Nugroho, Edwin and Riri Riza all featured during 2012's "Indonesian Express" special.

Tokyo festival's officer Hideko Saito said in a statement that the Japanese public has not often been able to watch Indonesian films. The special program is meant to help them learn more about Indonesian culture and cinematography.

Christine Hakim, Garin Nugroho, Teddy Soeriaatmadja, Kamila Andini, Angga Dwimas Sasongko, Edwin, Riri Riza and Ifa Isfansyah have been selected to represent the country this year.

Among the 10 films that will be screened during Crosscut Asia are Teddy Soeriaatmadja's "Lovely Man," Edwin's "Someone's Wife in the Boat of Someone's Husband" and Kamila Andini's "Following Diana."

All of the films will be shown with English and Japanese subtitles and some will be entered in the World/Asian Premiere category. The full film lineup and list of participants will be released by the end of September.

Tokyo International Film Festival will be held in Roppongi Hills.

 

[Nike]

RI to import buffalo meat from India
Selasa, 13 September 2016 18:56 WIB | 363 Views

Jakarta (ANTARA News) - The government plans to import buffalo meat from India in the near future to suppress commodity prices and fulfill animal protein requirements for the community, in preparation for Ramadan and Eid 2017.

Coordinating Minister for Economic Affairs Darmin Nasution chaired a stabilization of prices and availability of food meeting here on Tuesday, and said the government would import up to 100 thousand tons of buffalo meat, an import permit for which will be granted until June 2017.

"We are targeting the import of meat of up to 100 thousand tons. A total of 70 thousand tons by the end of December 2016, the remaining 30 thousand tons for the preparation of fasting and Idul Fitri," said Darmin.

He further stated that demand for buffalo meat is currently pegged at 10 thousand tons and that earlier imports were exhausted before September 2016. The demand for buffalo meat has been growing, especially from the food industry.

Meanwhile, the President Director of National Logistics Agency (Bulog), Djarot Kusumayakti said buffalo meat being sold is currently priced at Rp60,000 per kilogram at the retail level and Rp65 thousand per kilogram at the consumer level.

"We do direct sales to keep prices stable, and most of the market can accept buffalo meat as is. Even, some "sanitary and phytosanitary" (SPS) meat cannot be served because it is still being processed. Some meat is still undergoing the quarantine process, which has already qualified for being released directly," Djarot added.

He also said the import of buffalo meat that has been carried out until today has reached 5,300 tons, of which 1,400 tons have been checked by quarantine, and 1,500 tons have escaped SPS requirements.

"Whats done at the port may be around 2,000 tons, the rest is in storage and still undergoing a quarantine verification process," Djarot noted.

The meat imports are expected to reduce the prices of fresh beef, which is expected to enter the territory at a more reasonable price.

"Hopefully, people can obtain a healthy meat alternative at the same cost because we sell at Rp65,000 per kilogram to consumers, which means we sell to traders for less because they need the income," said Djarot.

The meeting on price stabilization and food availability was attended by the Trade Minister Enggartiasto Lukita, Agriculture Minister Amran Sulaiman, Agricultural and Spatial Planning/Head of National Land Agency Minister Sofyan Djalil, the Vice Minister of Finance Mardiasmo, President Director of Bulog Djarot Kusumayakti, and representatives of relevant ministries/agencies.

The meeting mainly discussed the evaluation issue of buffalo meat, which is claimed to have considerable demand, both from the industry and the market.

Regarding the plan to import 70 thousand tons of buffalo meat by the end of December 2016, Agriculture Minister Amran Sulaiman said it will prioritize aspects of the fulfillment of the availability of meat protein for the community.

"Requirements, especially in Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek), will be met. The point is how to make the protein available to people. Remember, we only reached 2.5 kilograms per year in meat consumption, the neighboring countries are already touching 25 kilograms per year," said Amran.(*)

http://www.antaranews.com/en/news/106687/ri-to-import-buffalo-meat-from-india

Indonesian aircraft maker showcases N219 cockpit simulator
Sabtu, 10 September 2016 14:54 WIB | 1.965 Views

Bandung, W.Java (ANTARA News) - Indonesian aircraft maker PT Dirgantara Indonesia (PTDI) is showcasing its new product, N219 cockpit simulator, at the Indonesia Business & Development (IBD) Expo 2016 being held from September 8 - 11.

"We are showcasing CN235 model and N219 cockpit simulator," the spokesperson of PTDDI, Irland Budiman, said here on Friday.

The simulator is the main attraction at the PTDI booth as visitors are allowed piloting the N219 and fly as if they are in N219.

Irland said N219 was included in the booth of best innovation products created by Indonesian human resources.

N219 is a multi-purpose twin-engine aircraft designed to be operated in remote areas. It is a developed version of NC212, produced by PTDI under CASAs license.

Indonesia Business & Development (IBD) Expo 2016 is witnessing the participation of 118 companies with 700 subsidiaries and 1,100 local government enterprises.

The event, which features the BUMN (the state-owned enterprises) awards, an exhibition, an international conference, seminars, and many other programs, is being held under the theme: State-owned Enterprises are Agents of Development.

The Expo is a platform to promote and market various innovative products as well as an opportunity for stakeholders to explore investment opportunities.

(KR-LWA)
EDITED BY INE
(U.SYS/B/KR-BSR/S012)

http://www.antaranews.com/en/news/106658/indonesian-aircraft-maker-showcases-n219-cockpit-simulator

Jokowi asks his ministers to work the harder to survive competition
Jumat, 9 September 2016 16:57 WIB | 1.437 Views

Jakarta (ANTARA News) - President Joko Widodo (Jokowi) on Friday called a plenary cabinet meeting to discuss the results of his seven day visit to China and Laos ending on Thursday.

In China, Jokowi attended a G20 summit conference in Hangzhou and in Laos he took part in an ASEAN summit meeting in Vientiane.

The president wanted to draw the attention of his ministers to heavy challenges confronting the world including Indonesia.

He said he noted that the present condition in the world is marked by tight competition.

All countries are struggling to survive the competition mainly in luring investment as the main driver of economic growth amid the heavy slump in global trade.

"From the meetings we held with heads of state and government, both in G20 summit as well as in ASEAN summit it was very obvious that all countries are involved in sharp competition for investment and capital inflows," he said.

He asked his ministers to set direction for the countrys economy and to cash in on what the country is superior over other countries.

"We must be able to determine our core economy, our core business with which we could develop our position and our state brand," he said.

Vice President Jusuf Kalla and almost all minister were present at the plenary cabinet meeting.

In Hangzhou Jokowi warned of the impact of new industrial revolution now being promoted by major industrialized nations .

He said Indonesia must not miss that opportunity and has to play a role in it.

"We must not left lagging behind," he said after attending the G20 summit.

In Vientiane, in the ASEAN-United States summit, Jokowi called for war against illegal fishing.

Illegal fishing has not only deprived traditional fishermen of their livelihood in the country but it also is a threat to environment.

Cooperation in eradicating illegal unregulated and unreported (IUU) Fishing needs serious addressing mainly with intensive exchange of information, he said. (*)

http://www.antaranews.com/en/news/1...ers-to-work-the-harder-to-survive-competition

 

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Global and regional woes notwithstanding, Indonesia is already moving from a ‘next’ to a ‘now’ economy. Canada has a foothold, and future activity is looking bright.

14 September 2016

 

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Garuda to launch flights to U.S. via Japan in 2017
TRAVEL SEP. 15, 2016 - 05:49AM JST ( 0 )

JAKARTA —

Garuda Indonesia has unveiled plans to recommence flights to the United States via japan from next year. Garuda believes that flights between Indonesia and the U.S. have the potential to attract up to 400,000 passengers per year.

The airline is looking to initially launch flights to either Los Angeles or New York, the two cities with the highest potential market.

Last month, the Federal Aviation Administration (FAA) confirmed that Indonesia complies with International Civil Aviation Organization (ICAO) safety standards and has been granted a Category 1 rating. With the International Aviation Safety Assessment (IASA) Category 1 rating, Garuda Indonesia is now able to establish service to the U.S.

Garuda Indonesia’s Vice President of Corporate Communications, Benny S. Butarbutar, said, “Our plan to re-operate the U.S. flight service is expected to strengthen Garuda’s position as a global aviation player. With the upgraded rating from FAA which recognizes the Indonesia aviation safety and security standard, we are trying to realize our plans sooner.”

Garuda has already started work on a feasibility study looking at market potency, profitable routes and transit permits from Japan’s aviation authorities.

“We are planning to operate wide body Boeing 777-300ER on U.S. routes. The flight will transit at Tokyo Narita prior to flying to the U.S. from Jakarta. Japan still grants the Fifth Freedom Right to Indonesian carriers, which allows Garuda Indonesia to fill up the seats - and further increase the passenger load factor - for our flights to the U.S.,” Benny said.

In 2014, Garuda Indonesia entered into a codeshare partnership with Delta Airlines, a member of SkyTeam, for flights to Los Angeles and Seattle via Tokyo Haneda.

Asia Travel Tips

 

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15 Sep 2016. Kemaren tebusan masih 11T, sekarang loncat ke 22T

 

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Indonesia to investigate Google for possible unpaid taxes
By Gayatri Suroyo | JAKARTA

Indonesia's tax office will investigate Alphabet Inc's (GOOGL.O) Google for suspected unpaid taxes in Southeast Asia's largest economy, a senior finance ministry official said on Thursday.

Muhammad Hanif, head of the specials cases branch in the tax office, said Google's refusal to cooperate after it was sent a letter in April requesting to be allowed to examine the company's tax reports had raised suspicions.

"We will elevate this to an investigation because they refused to be examined, and this is definitely an indication of criminal activity," Hanif told a news conference.

He added that the probe would not be launched until the end of the month at the earliest.

Taj Meadows, head of policy communication for Google in Asia Pacific, declined to comment immediately on the issue, but said in an emailed response that the company would revert as "soon as it can".

The government had also asked to examine the tax reports of the Indonesian offices of three other U.S. Internet based companies - Yahoo (YHOO.O), Twitter (TWTR.N) and Facebook (FB.O).

Those three companies have complied, officials said.

Yahoo and Google have formed Indonesian limited liability companies, while Twitter and Facebook operate branches of their Asia-Pacific offices in Indonesia.

The government believes these companies owe income and value added tax on billions of dollars of revenue they generate from advertising in Indonesia, the tax office said.

Hanif said Google's Indonesian entity was only allocated around 4 percent of the total revenues generated from the country, and it was this amount that was taxed, which he described as too small and "unfair".

The communications ministry had estimated the value of digital advertising in Indonesia at about $800 million last year. The ministry said all of it was untaxed.

There was no immediate explanation for the wide discrepancy of the two agencies' estimates for digital advertising revenue.

Indonesia is facing a sizeable revenue shortfall this year as the resource-rich country can no longer rely on commodity-related income.

In a separate development, the tax office said it is checking whether Ford Motor Co (F.N) had avoided paying appropriate taxes, after a local newspaper reported that the U.S. car maker modified imported Everest model vehicles sold in Indonesia to pay a lower tax rate.

If the car maker is proven to have caused state losses, it may have to pay back taxes of up to four times the amount it owed, according to Indonesian law.

"We have always strictly complied with all Indonesia government regulations and policy, including all import-related tax and customs requirements, related to each of our Ford vehicles officially marketed and sold in the country," he said.

Ford announced in January it is closing all operations in Southeast Asia's biggest economy, where it held a 1 percent market share.



(Additional reporting by Eveline Danubrata; Writing by Randy Fabi; Editing by Simon Cameron-Moore)

 

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I doubt you have any power to Google ..

Watch us, in the end google gonna have to bow down to indonesian tax office, if not, they could geytblocked from indonesia just like they being blocked in china, i doubt google gonna risk that

 

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Indonesia and EU announce historic deal on timber trade

Indonesia will in November become the first country in the world to export wood products to the European Union meeting new environmental standards in a move aimed at bolstering transparency and curbing illicit logging.

Officials from both parties unveiled measures on Thursday to ensure timber exports to the trade bloc, valued at roughly $1bn a year, are sustainable and harvested within the law.

Indonesia is one of the world’s largest timber exporters but the sector is plagued by criminality and corruption, and vast swaths of tropical rainforests have been felled for sale on the black market.

From mid-November special licences issued by Jakarta will certify the legality of timber products destined for the EU such as pulp, plywood and furniture.

“Indonesia has achieved great progress in bringing its forest sector under control and improving transparency,” Putera Parthama, a senior official from Indonesia’s forestry ministry, said in a statement.

“We have met the high certification standards of the EU.”

This assurance system, developed over years of negotiations, will be independently audited to ensure the timber is legally sourced and meets environmental standards.

Once the agreement takes effect from 15 November, timber exports from Indonesia that do not carry this certification will be prohibited from trade within the EU.

Consumers in Europe can soon purchase wood products knowing they come from audited factories and forests, EU ambassador to Indonesia, Vincent Guérend, said in a statement.

Indonesia supplies the EU with one-third of its tropical wood products, with Germany and the Netherlands the largest importers in the bloc.

Jakarta hopes the pact will help it double timber exports to the EU to the tune of $2bn a year.

It is the first country to meet these standards but the EU is negotiating similar agreements with 14 other countries, which together provide the continent with 80% of its timber imports.


US, Indonesia economic ties set to strengthen

The US is pinning high hopes on economic ties between it and Indonesia growing exponentially, as the world’s largest economy sees a future in creative industries, the financial sector and infrastructure.

The total value of economic relationship between Indonesia and the US could reach US$131.7 billion in 2019, a 46 percent increase from $90.1 billion in 2014, according to the “US-Indonesia Investment Report 2016” released by the US Chamber of Commerce and American Chamber of Commerce (AmCham) Indonesia.

Economic relationship does not only cover trade and investment, but also financial flows, company sales and government revenues.

The prediction was made with a best-case scenario assumption that President Joko “Jokowi” Widodo achieves his goal of a staggering 7 percent economic growth by the end of his term, from 4.79 percent last year, the lowest in six years.

The target is possible, said US Chamber of Commerce executive vice president and head of international affairs Myron Brilliant, provided the government has the right policy mix, including transparency and a more relaxed negative investment list (DNI).

“There have been some important steps in the right direction in this relationship. This is the kind of thing that sends a positive message to the investment community,” Brilliant said in his speech at the annual US-Indonesia Investment Summit on Thursday.

The US has acknowledged that the government, for example, opened up total foreign investment for 35 sectors in February this year, including the e-commerce sector, which is expected to be a future growth sector for US investment in Indonesia.

It has also rolled out over a dozen economic policy packages, addressing various problems, including cutting bureaucratic red tape and decreased the number of permits required to do business in Indonesia.

The moves might have borne fruit. A survey conducted by AmCham Indonesia this year with US companies operating in Indonesia this year showed that more than 80 percent of the companies felt that there had been some improvement in the investment climate over the past two years.

As a result, the participating companies said they would invest more than $334 million over the next five years. Nine potential areas identified are: creative industries, finance, infrastructure, oil and gas, consumer goods, agriculture, extractives, pharmaceuticals and information and communications technology.

Coordinating Economic Minister Darmin Nasution said that although the country’s foreign direct investment (FDI) stood at $893.2 million in 2015, lower than $1.3 billion in 2014, their was a lot of untapped investment potential. The US is Indonesia’s seventh-largest foreign investor.

“The US will continue to remain one of Indonesia’s most important economic partners in the years to come,” said Darmin, citing the $20.25 billion in deals committed by US businesses during Jokowi’s visit to Washington late last year.

At the moment, Indonesia’s economic relations with the US trail behind that of other Southeast Asian nations. Last year, Thailand and Malaysia respectively posted $137 billion and $121.1 billion economic relationships with the Western superpower.

AmCham Indonesia and the US Chamber of Commerce also said that one big challenge that could hamper Indonesia achieving its full potential was the fact that the thinking of many bureaucrats had been inward looking, posing a threat to the country’s openness.

“While some senior technocrats make the case for greater participation in the global economy — an idea backed by President Widodo with orders to streamline regulations — the reality is that many career bureaucrats have been resisting the directives as they continue to pursue regulatory complexity,” reads the report.

Indonesia so far ranks 109th out of 189 countries in the World Bank’s 2016 Ease of Doing Business report, beaten by Malaysia at 18th, Thailand at 49th and Vietnam at 90th.

Some of the ideas proposed by the US to make Indonesia reach its full potential are: abolish the DNI, bureaucratic reform, regulator- or government-and-business collaboration instead of distant monitoring and freedom to establish foreign legal entities (PMAs) via an online application with the Law and Human Rights Ministry instead of a lengthy bureaucratic process.

As if giving a green light to US businesses, Indonesian Chamber of Commerce and Industry (Kadin) chairman Rosan P. Roeslani said that Indonesia was “pragmatic”.

“We know that we need FDI to grow our economy. We can’t be too protectionist. We have to help our businesses succeed,” he said.


Indonesia, Philippines stocks lead Southest Asia markets

Indonesian stocks notched up their biggest single-day percentage gain in more than six weeks on Thursday, aided by upbeat monthly trade data, while Philippine shares rose the most in four months on bargain-hunting.

Other Southeast Asian markets remained sluggish as uncertainty about global central banks' next steps hurt risk appetite.

Both the US Federal Reserve and the Bank of Japan are scheduled to hold policy meetings next Wednesday. Sources say BoJ board members could debate cutting the bank's rates further and changes to its already massive asset-buying programme.

The Bank of England at its policy meeting later in the day is expected to stand pat after last month's policy easing, and provide a signal for future moves.

Indonesian shares closed 2.33% higher, with consumer cyclicals and telecom services leading the gains. PT Astra International Tbk rose 5.5%, while PT Telekomunikasi Indonesia (Persero) Tbk gained 4.3%.

Indonesia's exports and imports declined at a far slower pace than forecast in August, data released earlier in the day showed, with non-oil and gas exports rising for the first time in 16 months.

The better-than-expected export and import data helped move the market higher, said Harry Su, an analyst with Jakarta-based Bahana Securities.

Philippine stocks rose 2.15%, led by financials and consumer cyclicals. SM Prime Holdings Inc and SM Investments Corp rose over 3% each.

Local investors saw heavy net foreign selling as an opportunity to enter the market again, said Victor Felix, an analyst with AB Capital Securities in Manila, adding that "if the market ended higher in the next session, we might see a reversal."

Singapore fell for a fourth straight session, pulled down by consumer goods and oil and gas stocks.

Investors are on risk-off mode as the odds for a Fed rate hike next week are creeping up, though market participants still believe it is going to be in December after the US presidential elections, said Andrew Chow, associate director at UOB Kay Hian in Singapore.

 

[Nike]

Indonesia, US bilateral economy projected at US$131.7 billion
Kamis, 15 September 2016 23:55 WIB | 1.319 Views

Jakarta (ANTARA News) - The US Chamber of Commerce in Indonesia (AmCham Indonesia) has projected the total value of bilateral economic cooperation between the two countries to reach US$131.7 billion in 2019, jumping 46.2 percent within five years.

"Indonesia and the United States have a relationship that contains a long history. But not many who understand that relationships are able to guess what it is worth," the Chairman of the International Affairs at the US Chamber of Commerce, Myron Brilliant, said here on Thursday.

The US Chamber of Commerce said the total value of bilateral economic cooperation between Indonesia and the United States reached US$90.1 billion in 2014, equivalent to 10 percent of Indonesias gross domestic product (GDP).

"This data briefly describes how great the economic relations between the two countries are," Myron said.

The trade value of US$90.1 billion not only contains foreign direct investment, but also trade, domestic sales, financial income and government revenues.

"The partnership between Indonesia and the US has given the government and business entities an important platform," the President of AmCham Indonesia, Brian Arnold, said.

The US Chamber of Commerce notices that the government of Indonesia is now taking economic reforms, but still needs to continue and develop processes to achieve the expectations.

The main priorities for the development include legal certainty, collaboration, innovation, and policy reform.

Since the beginning of diplomatic relations between Indonesia and the US, the two countries have worked together and become important partners to each other in various sectors, particularly in economy, education and culture.

The value of investment foreign investment realization of the US based on the Investment Activity Report in 2015 reached US$893 million consisting of 261 projects which dominated by mining sector.

Earlier, business deals that would be announced and signed amounted to US$20.25 billion have been agreed during the visit of President Joko Widodo at the US Chamber of Commerce office in October 2015.(*)

http://www.antaranews.com/en/news/106719/indonesia-us-bilateral-economy-projected-at-us1317-billion

Three tax amnesty gateway banks added
Jumat, 16 September 2016 16:38 WIB | 440 Views

Jakarta (ANTARA News) - The government has added three new gateway banks for repatriation of funds from its tax amnesty program.

This brings the total number of financial institutions designated as a gateway to 58.

The three new banks are Deutsche Bank AG, PT. Bank OCBC NISP Tbk and Standard Chartered Bank, according to an official statement from the Directorate General Financing and Risk Management of the Ministry of Finance on Friday.

Bank OCBC NISP Tbk has prepared a variety of instruments to accommodate the repatriation of funds such as savings, insurance, investment, treasury, and loans instruments, President and Chief Executive Officer of the bank, Surjaudaja Parvati, said, in response to the appointment the bank as a gateway.

"We can be more active in providing solutions that benefit customers in managing the repatriation of funds," she added.

"In addition, we can help the government in increasing economic growth," she noted.

The 58 financial companies are:



Banking:



1. Citibank N.A

2. Bank Bukopin

3. Bank Central Asia

4. Bank CIMB Niaga

5. Bank Danamon Indonesia

6. Bank DBS Indonesia

7. Bank Mandiri

8. Bank Maybank Indonesia

9. Bank Mega

10. Bank Negara Indonesia

11. Bank Pan Indonesia

12. BPD Jabar & Banten

13. Bank Permata

14. Bank Rakyat Indonesia

15. Bank Syariah Mandiri

16. Bank UOB Indonesia

17. Bank Tabungan Negara

18. The Hong Kong and Shanghai Banking Corporation

19. Deutsche Bank AG

20. PT. Bank OCBC NISP Tbk

21. Standard Chartered Bank

Investment managers:

1. PT Ashmore Asset Management Indonesia

2. PT Bahana TCW Investment Management

3. PT Batavia Prosperindo Aset Manajemen

4. PT BNI Asset Management

5. PT BNP Paribas Investment Partners

6. PT Bowsprit Asset Management

7. PT Ciptadana Asset Management

8. PT Danareksa Investment Management

9. PT Eastspring Investments Indonesia

10. PT Indosurya Asset Management

11. PT Mandiri Manajemen Investasi

12. PT Manulife Aset Manajemen Indonesia

13. PT Panin Asset Management

14. PT PNM Investment Management

15. PT Syailendra Capital

16. PT Schroder Investment Management Indonesia

17. PT Sinarmas Asset Management

18. PT Trimegah Asset Management

Other financial institutions:

1. PT Bahana Securitie

2. PT BNI Securities

3. PT CIMB Securities Indonesia

4. PT CLSA Indonesia

5. PT Daewoo Securities Indonesia

6. PT Danpac Sekuritas

7. PT Indo Premier Securities

8. PT Mandiri Sekuritas

9. PT Mega Capital Indonesia

10. PT MNC Securities

11. PT Pacific Capital

12. PT Panin Sekuritas

13. PT Panca Global Securities

14. PT Pratama Capital Indonesia

15. PT RHB Securities Indonesia

16. PT Sinarmas Sekuritas

17. PT Sucorinvest Central Gani

18. PT Trimegah Sekuritas Indonesia

19. PT UOB Kay Hian Securities(*)

http://www.antaranews.com/en/news/106742/three-tax-amnesty-gateway-banks-added

Government to build 769 km new roads
Jumat, 16 September 2016 02:12 WIB | 755 Views

Yogyakarta (ANTARA News) - Minister of Public Works and Public Housing Hadimulyono Basuki said the government is targeting to complete the construction of 769 kilometers (km) of new roads, including the 158 km causeway along the south coast of Java.

"Anyway, the pansela (the southern coast of Java) should be connected in 2017," Basuki said during his address at a seminar on infrastructure at the Faculty of Engineering, the University of Gajah Mada, on Thursday.

He stated that priority will be accorded to the construction of trans Sumatra, trans Kalimantan, Sulawesi and Papua roads.

In addition, completing construction of 29 kilometer of toll road, 52 thousand kilometers of irrigation networks and 39 reservoirs is part of the target.

"Next year, 39 dams will be built besides nine new reservoirs, 105 reservoirs and 84 thousand irrigation networks," Basuki elaborated.

Nevertheless, he admitted that it will not be easy to complete the construction of this infrastructure because land acquisition posed a difficulty.

"Every two weeks, there is a coordination meeting with the minister in charge of spatial and environmental affairs," he explained.

As of September 2016, according to Basuki, the new infrastructure development has reached 46.49 percent of the target with physical development reaching 53 percent.

"Progress this year is higher than last year when it was only 36.46 percent until mid-September with 40 percent physical work accomplished," he recalled.

He added that the government will continue to focus on the infrastructure work in 35 strategic development areas, including the area of Borobudur which has been integrated with the Kulon Progo airport.

"The southern coast line can support the airport. In essence, the infrastructure is being developed to improve competitiveness and productivity. Therefore, in order to be competitive, infrastructure development must be faster, better and cheaper," Basuki reiterated.

(A014/INE)

EDITED BY INE.

http://www.antaranews.com/en/news/106728/government-to-build-769-km-new-roads

 

[Nike]

Government sets aside Rp70 trillion for 65 dam projects
Jumat, 16 September 2016 19:02 WIB | 383 Views

Jakarta (ANTARA News) - The government has decided to set aside Rp70.1 trillion to build 65 water reservoirs until 2022, an official said here on Friday.

"Yes, more or less Rp70.1 trillion for 65 dams," head of the Dam Center at the Directorate General of Water Resources Imam Santoso said in a news conference.

The projects would be financed with fund from the state budget around Rp64.04 trillion and loans from China Rp4.82 trillion for the Jatigede dam and from South Korea Rp1.26 trillion for the Karian dam.

Imam said building a water reservoir would take three to four years, therefore, among the 65 dam projects, 29 are to be completed in 2019 and the rest in 2022.

"The 65 dams would increase the capacity of water reservoirs in the country to 19.1 billion cubic meters from only 12.6 billion cubic meters at present," he said.

The additional dams would certainly increase the irrigation capacity for farm lands, he added.

Currently , the country has 7.1 million hectares of rice fields and 760,000 hectares or more than 10 percent of them are irrigated with water from dams. The rest are irrigated with water from rivers or rain fed rice fields.

With the 65 new dams , rice fields irrigated with water from dams would be 173,000 hectares wider to 933,000 hectares, he said.

"Therefore, the need for irrigation water could be meet the whole years that the water and food security would be better guaranteed," he said.

Based on official data at the Directorate General of Water Resources in 2015, construction of five dams was already completed and 24 other dams were under construction. This year construction would start for 8 new dams .

In 2017, work would start for the construction of nine more dams , to be followed with 11 projects in 2018 and 8 more projects in 2019 bringing the total to 65 dams.

The five dams already built and completed in 2015 are Rajui dam in Aceh, Jatigede dam in West Java, Bajulmati dam in East Java, Nipah dam in East Java, and Titab dam in Bali.

The dam projects expected to be completed this year are the Paya Seunara dam in Aceh and Teritip dam in East Kalimantan.

Other dams to be completed in 2017 are the Raknamo and Mila dams in East Nusa Tenggara, Tanju dam in West Nusa Tenggara and Marangkayu dam in East Kalimantan.

In 2018, there are seven dam projects to be completed including Gondang dam in Central Java, Tugu dam in East Java, Logung dam in Central Java, Rotiklod dam in East Nusa Tenggara, Sei Gong dam in Risua Islands, Bintang Bano dam in West Nusa Tenggara and Kuningan dam in West Java.

In 2019, there are 11 more dam projects to come on stream including Passeloreng dam in South Sulawesi, Tapin dam in South Kalimantan, Ciawi dam in West Java , Sukamahi in West Java , etc.

The remaining 36 dam projects are to be completed in the following years until 2022.(*)

http://www.antaranews.com/en/news/106746/government-sets-aside-rp70-trillion-for-65-dam-projects

 

[ahojunk]

@Langkasukan

You seem to be interested in the problems in Indonesia.

How about opening a thread to discuss some of the hot issues in Malaysia such as the 1MDB?

Sure, Indonesia has their problems. I believe so do Malaysia, right?

Are you willing to take up my challenge?

 

[Nike]

Adhi Karya wins new Rp9.2 trillion contract
Jumat, 16 September 2016 16:39 WIB | 698 Views

Jakarta (ANTARA News) - Publicly traded construction company PT Adhi Karya won new contract worth Rp9.2 trillion in the first eight months of this year or 37 percent of its target of Rp25 trillion for this year.

"The value of the contracts won by ADHI grew 17.8 percent compared with the same period last year," Corporate Secretary of the state owned company Ki Syahgolang Permata said here on Friday.

Syahgolang said among the new contracts include renovation of the Bung Karno Stadium of Jakarta valued at Rp699.7 billion and Apartment of Cinere Resort in Jakarta worth Rp317.2 billion.

He said construction projects dominated the new contracts accounting for 87.5 percent of the total value of the new contracts.

Around 43 percent of the contracts in value belong to a number of other state companies and 33.4 percent are owned by the government including regional administrations and the rest belonged to private companies.

Building construction accounted for 46 percent of the projects in value, roads and bridges account for 27.3 percent and quays and other infrastructure account for 26.7 percent.

Adhi Karya is the contractors of Jakartas Light Rail Transit (LRT). It is building the countrys first precast factory to produce the U-Shape Girder in Sentul, West Java to support the LRT project.

U-Shape Girder has a friendlier esthetic for urban architecture such as Jakarta as it could reduce voice pollution from LRT.

The LRT project, which was previously in limbo, has resurfaced, with the city administration submitting a proposal to the Transport Ministry regarding its plan to use a different standard of rolling stock from that previously envisaged.

Jakarta Development Planning Board (Bappeda) head Tuty Kusumawati has said that the administration planned to use a gauge with different specifications to those set by the ministry.

"We prefer to use international standard rolling stock. There are some differences in the specifications, including the estimation of manufacturing time," Tuty said.

The Jakarta LRT is a branch of a wider central government LRT project, and is intended to be integrated with the capitals other public transportation networks, including the Transjakarta bus and the under-construction Mass Rapid Transit (MRT).

Separately, Jakarta Governor Basuki Tjahaja Purnama (Ahok) said that the administration would prioritize the construction of LRT routes that connect Asian Games venues, such as the Velodrome Sports complex in Rawamangun, East Jakarta, the Britama basketball court at Kelapa Gading Sports Mall in North Jakarta and the athletes village in Kemayoran, Central Jakarta.

Ahok said that to accelerate the construction, the administration would allow city-owned developer PT Jakarta Propertindo (Jakpro), which was appointed to develop the citys LRT, to work with other parties including private and foreign companies.(*)

http://www.antaranews.com/en/news/106743/adhi-karya-wins-new-rp92-trillion-contract