Indonesia Economy Forum

[Nike]

PLN signs 16 contracts worth Rp 21.1 trillion

• Viriya P. Singgih
  The Jakarta Post
  
  
• Jakarta | Fri, March 17, 2017 | 12:02 pm

PLN president director Sofyan Basir speaks to journalists in Jakarta after meeting with commissioners of the Corruption Eradication Commission (KPK) in Jakarta in January. (Antara/Wahyu Putro A)
State-owned electricity firm PLN signed on Friday agreements for 16 projects under the 35,000-megawatt electricity program worth a total investment of Rp 21.1 trillion (US$1.58 billion).

Of the total investment, Rp 13 trillion will be used on the development of various power plants across the country, while Rp 6 trillion is the cost of a five-year service agreement and Rp 2.1 trillion will be used to develop transmission circuits.

Of the projects, PLN signed engineering, procurement and construction (EPC) contracts for four power plants with a total capacity of 927.5 MW, including the Muara Tawar combined-cycle power plant (PLTGU) in Bekasi, West Java, with a capacity of 650 MW.

The company also signed letters of intent (LoI) for six power plants with a total capacity of 898 MW, including ones in Papua.

Moreover, PLN signed procurement contracts for the development of 928 kilometers of transmission circuits with a capacity of 500 kilovolts along Java’s northern coast.

“Many of these projects are located in the country’s eastern part. We want to ensure development in that region as electricity there will have a positive impact on the people,” PLN president director Sofyan Basir said on Friday at his office in Jakarta.

The government plans to procure 35,000 MW of electricity by the end of President Joko “Jokowi” Widodo’s term in 2019, aiming to gradually increase the national electrification ratio to 97 percent from the 91.16 percent last year. (bbn)

http://www.thejakartapost.com/news/2017/03/17/pln-signs-16-contracts-worth-rp-21-1-trillion.html

 

[pr1v4t33r]

Aruk border post in West Kalimantan, bordering Malaysia is inaugurated today

 

[Nike]

Trans-Papua road set to be completed next year

• News Desk
  The Jakarta Post
• Jakarta | Tue, March 7, 2017 | 04:13 pm

Vehicles pass along a road in Tageneri, Puncak Jaya regency, in August 2016. Mud frequently covers the road, particularly after heavy rains because of landslides. (Antara/Iwan Adisaputra)
The development of the 4,300-kilometer trans-Papua road project in Papua and West Papua provinces on Indonesia’s easternmost island is expected to be completed next year, Public Works and Public Housing Minister Basuki Hadimuljono has said.

“The construction has seen significant progress,” Basuki said in Jakarta, as reported by tempo.co on Tuesday.

He said 3,850 km of the total 4,300-km road had been constructed, while the remaining section would be developed this year and next year.

(Read also: KPK raises possibility of ‘collusion’ in Papua road project)

Similarly, the ministry had also constructed 884 km of a 1,086-km road project near the border between Papua and Papua New Guinea, he said.

When the construction of the trans-Papua road is finished, it will accelerate development in the provinces because many areas that used to be isolated will be connected to economic centers.

Citing an example, he said the trans-Papua road section from Mamugu-Kenyam-Haberba-Wamena would result in a significant decline in prices of basic commodities and construction materials, particularly cement.

“People have started to benefit from the construction of the trans-Papua road and border road. People who in the past had to travel on foot can use vehicles,” he added.

The government has allocated Rp 7.61 trillion (US$570.75 million) for the construction of infrastructure in the provinces, as well as a Rp 2.18 trillion special allocation fund.

Apart from roads, the ministry is also developing housing and clean water projects. (bbn)
http://www.thejakartapost.com/news/2017/03/07/trans-papua-road-set-to-be-completed-next-year.html

 

[tuanhirang]

permission to join

 

[pr1v4t33r]

 

[Nike]

Pertamina posts net profit of US$3.15 billion last year
Jumat, 17 Maret 2017 01:33 WIB - 0 Views

Jakarta (ANTARA News) - State oil and gas company PT Pertamina posted an audited net profit of US$3.15 billion last year, its acting director Yenni Andayani said on Thursday.

"Pertamina has carried out its function properly. The company is also very good in terms of financial condition," she said while disclosing the companys performance for all of 2016.

Also present at the meeting was newly-elected Pertamina president director Elia Massa Manik who replaced Dwi Soetjipto who was discharged on February 3, 2017.

Elia was formerly president director of state-owned plantation holding company PT Perkebunan Nusantara (PTPN) III.

Yenni said the companys earnings before interest, taxes, depreciation, and amortization (EBITDA) margin reached 20.73 percent and income stood at US$36.49 billion last year.

Compared to the previous year, operating profit in 2016 fell, however net profit doubled and EBITDA margin continued to improve since 2014, she said.

She said the companys business has not always shown a good trend. From October to December 2016, the business slowed down.

Meanwhile, Elia said Pertamina is a large and strategic company because it is engaged in the energy sector.

"Energy plays an important role for other sectors. In fact, Energy prices and policies can affect other sectors very much," she said.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017

http://m.antaranews.com/en/news/109953/pertamina-posts-net-profit-of-us315-billion-last-year


Pertamina allocates US$190 million for Mahakam exploration
Jumat, 17 Maret 2017 01:36 WIB - 0 Views

Jakarta (ANTARA News) - State-run oil and gas company Pertamina has allocated US$190 million for exploration of Mahakam Block in East Kalimantan.

"The fund has been prepared, but it would not be that easy to process it. We are still calculating the tax and we could not give the fund yet to the blocks operator Total E&P Indonesie," Pertaminas upstream director Syamsul Alam said here, Thursday.

PT Pertamina Hulu Mahakam (PHM), a subsidiary of PT Pertamina, has been appointed to operate the block to maintain production in the gas field.

Pertaminas Corporate Vice President Wianda Pusponegoro said in a statement earlier this week, that the special task force for upstream oil and gas business (SKK Migas) has agreed on the bridging agreement (BA) scheme and funding agreement (FA) on Mahakam Block, signed by Pertamina, Total E&P Indonesia, and Inpex Corporation.

"The agreement has clarified stakeholders commitment to smooth the transition of operators from Total to PHM. PHM has entered the Mahakam Block in 2017 under the BA and FA," Syamsul said.

The bridging agreement has regulated Total operations as the previous operator of Mahakam fields, for the interest of PHM.

While the funding agreement would arrange the PHM funding mechanism on Total operation in accordance to the binding agreement.

The agreements were signed on March 3, after an intensive discussion involving PHM, Total and Inpex.

"PHM and Total would open a joint account," she said.

Totals contract ends on Dec. 31 this year, after operating the Mahakam field for 50 years.

As an operator, Total has a 50 percent "participation right" while the remaining 50 percent is owned by Impex Corporation Ltd.

Total is expected to produce 1,430 million standard cubic feet of gas per day and 53,000 barrels of oil per day in 2017.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017
http://m.antaranews.com/en/news/109954/pertamina-allocates-us190-million-for-mahakam-exploration

 

[MarveL]

 

[Nike]

Lahan Proyek Kereta Cepat
Jumat, 17 Maret 2017 23:35 WIB | 403 Views

Lahan Proyek Kereta CepatSebuah truk melintas di area proyek konstruksi Kereta Cepat Jakarta-Bandung di Kawasan perkebunan Walini Cikalong Wetan, Kabupaten Bandung Barat, Jawa Barat, Jumat (17/3/2017). Menurut PT. Kereta Cepat Indonesia-China, pengerjaaan fisik secara parsial proyek kereta cepat sepanjang 142.3 kilometer tersebut direncanakan dimulai kembali pada Maret 2017 sambil menyelesaikan proses pembebasan lahan yang telah selesai lebih darI 60 persen dari luas penguasaan lahan. (ANTARA/Novrian Arbi)

 

[Nike]

Mercedes-Benz taps into on-road truck segment for first time in Indonesia

• Stefani Ribka
  The Jakarta Post
  

Jakarta | Fri, March 17, 2017 | 02:29 pm

Daimler Southeast Asia Pte. Ltd. general manager Maximilian Knorr (center) and PT Hartono Raya Motor president director Hari Boedi Hartono (left) introduce 11 types of trucks under Mercedez-Benz's Axor series in Jakarta on March 16. Hartono Raya Motor is an authorized dealer of Mercedes-Benz. (JP/Stefani Ribka)

PT Mercedes-Benz Indonesia, the Indonesian unit of German carmaker Mercedes-Benz, has ventured into the domestic on-road truck segment, pinning its hopes on robust infrastructure projects in Indonesia.

It launched on Thursday 11 types of trucks under its Axor series. The trucks have a load capacity of between 16 and 37 tons, can function on the road and be modified into dump trucks, cement trucks or container heads.

“It’s a good time to enter the segment. Everyone believes in the potential economic growth in Indonesia and the government has been doing a tremendous job in attracting investment,” Daimler Southeast Asia Pte. Ltd. general manager Maximilian Knorr said during the launch.

(Read also: Mercedes-Benz plans to assemble more models locally)

Other Mercedes-Benz' trucks currently marketed are designed for mining sites, not for on-road use.

Daimler AG — Mercedes-Benz’ parent company — also produces on-road trucks but under the Fuso brand, which is managed by PT Krama Yudha Tiga Berlian Motors, which oversees Mitsubishi car sales in Indonesia.

Meanwhile, seven of the new 11 types will be partly produced at the Mercedes-Benz plant in Wanaherang, Bogor, West Java, in the first half of the year.

At present, they are all produced in India. (tas)

http://www.thejakartapost.com/news/...ruck-segment-for-first-time-in-indonesia.html

 

[Nike]

Pembangunan Jalur Layang MRTPemandangan pembangunan jalur layang MRT koridor selatan-utara, Lebak Bulus-Bundaran HI di kawasan Blok M, Jakarta, Sabtu (18/3/2017). Pengerjaan mass rapid transit (MRT) tahap pertama elevated sector atau sektor layang, Lebak Bulus-Patung Senayan sudah mencapai 4,9 km atau 49,1 persen dari total panjang 10 km dan akan beroperasi Maret 2019. (ANTARA FOTO/M Agung Rajasa)

Pembangunan Jalur Layang MRTPemandangan pembangunan jalur layang MRT koridor selatan-utara, Lebak Bulus-Bundaran HI di kawasan Blok M, Jakarta, Sabtu (18/3/2017). Pengerjaan mass rapid transit (MRT) tahap pertama elevated sector atau sektor layang, Lebak Bulus-Patung Senayan sudah mencapai 4,9 km atau 49,1 persen dari total panjang 10 km dan akan beroperasi Maret 2019. (ANTARA FOTO/M Agung Rajasa)

Pembangunan Jalur Layang MRTPemandangan pembangunan jalur layang MRT koridor selatan-utara, Lebak Bulus-Bundaran HI di kawasan Blok M, Jakarta, Sabtu (18/3/2017). Pengerjaan mass rapid transit (MRT) tahap pertama elevated sector atau sektor layang, Lebak Bulus-Patung Senayan sudah mencapai 4,9 km atau 49,1 persen dari total panjang 10 km dan akan beroperasi Maret 2019. (ANTARA FOTO/M Agung Rajasa)

 

[Nike]

Ministry to open six polytechnic schools to fill skills gap

• Stefani Ribka
  The Jakarta Post
  

Jakarta | Mon, March 20, 2017 | 04:19 pm

Economy ride: President Joko "Jokowi" Widodo (left) and Industry Ministry Airlangga Hartarto inspect a prototype of multipurpose car designed for local farmers during a visit to Boyolali, Central Java, on Jan. 30. (Courtesy of Industry Ministry/File)

The Industry Ministry plans to open six polytechnic schools by 2019 in an effort to help fill the gap of skilled workers in the country's manufacturing sector.

The ministry's training and education center head, Mujiyono, said the new education facilities would add to the existing 10.

“All the new polytechnic schools will adopt a dual system that allows students to learn both theory and practice,” he said recently.

(Read also: Industry Ministry eyes 220,000 certified workers in 2017)

The schools will be established in Semarang, Central Java, specializing in furniture; in Bantaeng, South Sulawesi, specializing in metal processing; in Dumai, Riau, specializing in palm oil processing; and in Batu Licing, Souh Kalimantan, for the steel industry.

Two other schools offering skills training to support miscellaneous sectors will be built in Bintuni, West Papua and Sei Mangkei, North Sumatra.

Businesses have highlighted difficulties in finding manpower with proper skills despite a workforce of 100 million people in the country.

The manufacturing sector needs a workforce of 589,447 people this year, with ministry data showing the number will increase to 619,732 people by 2019.

http://www.thejakartapost.com/news/...x-polytechnic-schools-to-fill-skills-gap.html

 

[Nike]

Indonesia adds 500 MW into electricity grid from new mobile power plants

• The Jakarta Post
  The Jakarta Post
  

Jakarta | Sun, March 19, 2017 | 05:08 pm

Power boost: Workers connect electrical wires to a tower in Sidoarjo, East Java. (JP/Umarul Faruq)

Indonesia adds 500 MW into power grid from new mobile power plants

President Joko “Jokowi” Widodo on Saturday officially inaugurated the operation across the archipelago of eight gas-based mobile power plants (MPP) with a total capacity of 500 megawatts (MW).

The simultaneous symbolic inauguration took place during the President’s visit to Mempawah regency, West Kalimantan, the State Palace reported.

Each of the eight power plants has an electricity production capacity of between 25 MW and 100 MW. They are located in Lombok in West Nusa Tenggara, Bangka Island, Lampung in South Sumatra, Pontianak in West Kalimantan, Bengkalis in Riau Islands, Belitung Island and Nias and Medan in North Sumatra. Some of them have been operating since last year.

Mempawah, home to some 250,000 people, is located next to the West Kalimantan provincial capital of Pontianak, whose new MPP can generate up to 100 MW of electricity.

The current government is aiming to exponentially increase the amount of power available to the nation by 2019 through an ongoing program to generate an additional 35,000 MW of electricity.

The project is basically a continuation of the attempt by then president Susilo Bambang Yudhoyono during his first presidential term in 2005 to generate an additional 10,000 MW of electricity to keep the reserve margins — the difference between capacity and peak demand — within the International Energy Agency's recommended level of 20 to 35 percent. (ecn/hwa)

http://www.thejakartapost.com/news/...ricity-grid-from-new-mobile-power-plants.html

 

[Nike]

Stock market expected to support national economy
18th March 2017 | 1.702 Views

Jakarta (ANTARA News) - The Financial Services Authority expressed hope that the stock industry could support the national economy by investing in the infrastructure development, the agencys head of capital market supervision Nurhaida said here on Saturday.

"The stock market could engage in this development program as the cost of building new infrastructure will reach at least Rp5 thousand trillion, according to the National Mid-Term Development Plans estimation," she added.

A capital market needs to be more financially liquid in order to support the long-term infrastructure development program, Nurhaida noted.

She remarked that the authority would cooperate with the industrys stakeholders to build trust among investors and increase their number in order to strengthen the markets liquidity.

"A rise in investors number and a greater trust among stakeholders will support market growth. During the past years, the market had achieved an outstanding record by listing around one million investors. However, the number only covers 20 to 30 percent of investor in Singapore and Malaysia," Nurhaida revealed.

The number of domestic investors remains low at only 0.39 percent of 258 million people. Thus, the government has to step up its effort to introduce the capital market to the citizens, she pointed out.

Meanwhile, Indonesia Stock Exchanges Development Director Nicky Hogan stated that a strong investment basis would enable the domestic market to mobilize third-party funds, which further support the national economy.

"We not only improve the literacy of capital market but also commit to expand the investor base," Hogan reiterated. (*)

http://www.antaranews.com/en/news/109995/stock-market-expected-to-support-national-economy

 

[pr1v4t33r]

Indonesia nets $330b in tax amnesty scheme, to roll out reforms next

SOUTHEAST Asia’s biggest economy this month is winding up one of world’s most successful tax amnesties, with at least 745,000 taxpayers declaring more than US$330 billion of assets so far.

President Joko Widodo has cited higher tax revenue as the key to boosting infrastructure spending and growth. But if the amnesty is to avoid being just a one-off windfall, Indonesia needs to improve a tax collection ratio well below many of its peers, international agencies and local officials have said.

To that end, Indonesia’s finance minister Sri Mulyani Indrawati has set up a special tax reform team to boost collection. It faces an immense task in a country where tens of millions of people – both the wealthy and the poor – remain outside the tax system.

Parliament is considering draft legislation that would overhaul an institution the public views as one of Indonesia’s most corrupt, according to global corruption watchdog Transparency International.

“People don’t pay taxes because they believe they won’t get caught,” said Darussalam (like many Indonesians, he goes by one name), a partner at consultancy Danny Darussalam Tax Centre.

The amnesty has provided the government with more revenue than similar plans in countries such as India, Chile, Italy or South Africa, Indrawati said.

The amnesty has been criticised for benefiting mostly the rich. The World Bank blames poor tax compliance amongst high income earners in Indonesia for hampering poverty reduction and maintaining inequality. The richest one percent of Indonesia’s 250 million people control nearly half the wealth, charity organisation Oxfam said.

Tax reform team

An employee at a government tax office sits behind a desk in Jakarta Indonesia Feb 23, 2017. Source: Reuters/Fatima Elkarim

The tax bureau as of 2016 employed about 38,000 people to collect taxes from a workforce of 118.41 million. Less than a third of the workforce is registered at the tax office and even fewer file annual tax reports.

A visit to the tax office in Jakarta provides a window into the challenges the government faces.

Tax inspector Jeffry Martino sometimes works a 12-hour day just to keep tabs on a small portion of the hundreds of companies under his watch.

He has 661 taxpayers under his watch, but focuses on the biggest 100 companies that contribute the most to his target of collecting IDR495 billion (US$37.02 million) this year.

“We are the spearhead of state revenue collection,” said Martino, at his temporary office with a misfiring air conditioner.

His job would be easier if tax auditors had far fewer clients and more access to third-party data, such as banking information, he said.

He might get that wish under proposed legislation to reform the tax system.

The draft in Indonesia’s parliament calls for giving tax collectors wider access to bank data in line with Indonesia’s pledge to join a global effort to share tax-related financial data.

“Hunting in the zoo”

A woman enters a government tax office in Jakarta Indonesia Feb 23, 2017. Source: Reuters/Fatima Elkarim

Andreas Eddy Susetyo, a member of the commission overseeing the bill, said it may take up to a year to finish discussions and even then progress may be interrupted because politicians would be distracted by campaigning ahead of 2019 elections.

Widodo has vowed to bypass parliament if necessary by issuing an emergency regulation before mid-year giving the tax office access to bank data.

In the meantime, Finance Minister Indrawati’s tax reform team aims to increase the tax ratio to 15 percent of GDP in 2020 from about 11 percent now. That compares with a global average of 14.8 percent in 2014, according to the World Bank.

The team, consisting of finance ministry officials and advisers from the World Bank and other agencies, intends to act as a brainstorming think-tank to push through reforms of everything from the tax office’s business model to tariffs.

Hestu Yoga Saksama, a tax office spokesman, said the team would redeploy thousands of tax officers to auditing once the amnesty period ends this month.

“We are preparing to take legal action against people we found non-compliant but have not taken part in the amnesty,” said Saksama, describing it as a potential quick win.

But the World Bank still estimates Indonesia will miss its 2017 total revenue target by IDR70 trillion (US$5.23 billion), while the tax ratio will likely stay below 11 percent of GDP.

Rosan Roslani, chairman of Indonesia’s chamber of commerce and industry, said that the tax office should not just monitor those already in the system, but go after tax evaders.

“When our tax base is low, there will be some ‘hunting in the zoo’ because you only have so many people in the system,” said Roeslani, who is also advising the reform team. He advocates creating an Indonesian social security number system, similar to that of the United States, to help boost the number of taxpayers.

http://uk.reuters.com/article/us-indonesia-economy-tax-idUKKBN16S0AS

 

[nufix]

Indonesia nets $330b in tax amnesty scheme, to roll out reforms next

SOUTHEAST Asia’s biggest economy this month is winding up one of world’s most successful tax amnesties, with at least 745,000 taxpayers declaring more than US$330 billion of assets so far.

President Joko Widodo has cited higher tax revenue as the key to boosting infrastructure spending and growth. But if the amnesty is to avoid being just a one-off windfall, Indonesia needs to improve a tax collection ratio well below many of its peers, international agencies and local officials have said.

To that end, Indonesia’s finance minister Sri Mulyani Indrawati has set up a special tax reform team to boost collection. It faces an immense task in a country where tens of millions of people – both the wealthy and the poor – remain outside the tax system.

View attachment 385414

Parliament is considering draft legislation that would overhaul an institution the public views as one of Indonesia’s most corrupt, according to global corruption watchdog Transparency International.

“People don’t pay taxes because they believe they won’t get caught,” said Darussalam (like many Indonesians, he goes by one name), a partner at consultancy Danny Darussalam Tax Centre.

The amnesty has provided the government with more revenue than similar plans in countries such as India, Chile, Italy or South Africa, Indrawati said.

The amnesty has been criticised for benefiting mostly the rich. The World Bank blames poor tax compliance amongst high income earners in Indonesia for hampering poverty reduction and maintaining inequality. The richest one percent of Indonesia’s 250 million people control nearly half the wealth, charity organisation Oxfam said.

Tax reform team

An employee at a government tax office sits behind a desk in Jakarta Indonesia Feb 23, 2017. Source: Reuters/Fatima Elkarim

The tax bureau as of 2016 employed about 38,000 people to collect taxes from a workforce of 118.41 million. Less than a third of the workforce is registered at the tax office and even fewer file annual tax reports.

A visit to the tax office in Jakarta provides a window into the challenges the government faces.

Tax inspector Jeffry Martino sometimes works a 12-hour day just to keep tabs on a small portion of the hundreds of companies under his watch.

He has 661 taxpayers under his watch, but focuses on the biggest 100 companies that contribute the most to his target of collecting IDR495 billion (US$37.02 million) this year.

“We are the spearhead of state revenue collection,” said Martino, at his temporary office with a misfiring air conditioner.

His job would be easier if tax auditors had far fewer clients and more access to third-party data, such as banking information, he said.

He might get that wish under proposed legislation to reform the tax system.

The draft in Indonesia’s parliament calls for giving tax collectors wider access to bank data in line with Indonesia’s pledge to join a global effort to share tax-related financial data.

“Hunting in the zoo”

A woman enters a government tax office in Jakarta Indonesia Feb 23, 2017. Source: Reuters/Fatima Elkarim

Andreas Eddy Susetyo, a member of the commission overseeing the bill, said it may take up to a year to finish discussions and even then progress may be interrupted because politicians would be distracted by campaigning ahead of 2019 elections.

Widodo has vowed to bypass parliament if necessary by issuing an emergency regulation before mid-year giving the tax office access to bank data.

In the meantime, Finance Minister Indrawati’s tax reform team aims to increase the tax ratio to 15 percent of GDP in 2020 from about 11 percent now. That compares with a global average of 14.8 percent in 2014, according to the World Bank.

The team, consisting of finance ministry officials and advisers from the World Bank and other agencies, intends to act as a brainstorming think-tank to push through reforms of everything from the tax office’s business model to tariffs.

Hestu Yoga Saksama, a tax office spokesman, said the team would redeploy thousands of tax officers to auditing once the amnesty period ends this month.

“We are preparing to take legal action against people we found non-compliant but have not taken part in the amnesty,” said Saksama, describing it as a potential quick win.

But the World Bank still estimates Indonesia will miss its 2017 total revenue target by IDR70 trillion (US$5.23 billion), while the tax ratio will likely stay below 11 percent of GDP.

Rosan Roslani, chairman of Indonesia’s chamber of commerce and industry, said that the tax office should not just monitor those already in the system, but go after tax evaders.

“When our tax base is low, there will be some ‘hunting in the zoo’ because you only have so many people in the system,” said Roeslani, who is also advising the reform team. He advocates creating an Indonesian social security number system, similar to that of the United States, to help boost the number of taxpayers.

http://uk.reuters.com/article/us-indonesia-economy-tax-idUKKBN16S0AS

Damn... that is bigger than some of ASEAN countries' economy !