Indonesia Economy Forum

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INDONSIA NEXT ICON ON PROGRESS
the largest statue on asean!

Vishnu riding the Garuda
#gwk

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"Wonderful Indonesia" promoted in different countries
Selasa, 12 September 2017 21:54 WIB - 2.804 Views

Reporter: Otniel Tamindael

Taxis in London, England, read "Wonderful Indonesia" promotion. (ANTARA/Zeynita Gibbons)

Jakarta (ANTARA News) - When it comes to attracting as many foreign tourists as possible, Indonesia certainly does not stay relaxed while waiting for it to happen out of the blue.

Instead, the country has been aggressively promoting its tourism brand of "Wonderful Indonesia" in different parts of the world, such as in Asia, Australia, and Europe.

In Asia, Wonderful Indonesia was promoted in Chinas three main cities of Hefei, Wuxi, and Hangzhou from Aug 29 to Sept 1, 2017, in an effort to boost the visit by foreign tourists from the "Country of Bamboo Curtain" to Indonesia.

Vinsensius Jemadu, the Ministry of Tourism Deputy Assistant for Tourism Market Development in Asia Pacific, remarked in a written statement recently that he had also extended the reach of tourism promotion and marketing to other cities in mainland China such as Shanghai, Guangzhou, Beijing, and Shenzhen.

According to him, China is a major tourist market because of the country's significance among other markets in terms of quantity and growth.

"The number of Chinese tourist visiting Indonesia until June was almost 1 million people, or the largest among any market, and its year-on-year growth rate in the Jan-June 2017 period was almost 50 percent," Jemadu explained.

Moreover, a number of Indonesian airlines have also opened flights to major cities in China, making the promotion of Indonesian tourism in the country a necessity.

In the meantime, Wonderful Indonesia will also be promoted during the Pacific Asia Travel Association (PATA) Travel Mart, which will be held from Sept 13 to 15, 2017.

Hosted by Macao Government Tourism Office, PATA Travel Mart is Asia Pacifics premier travel trade show, attracting tourism officials and professionals from tourist destinations in the Asia Pacific region and beyond to Macao.

Jemadu noted that Indonesias participation in the PATA Travel Mart in Macau aims to promote its attractive tourists destinations among Chinese tourists.

"PATA Travel Mart 2017 in Macau is the right event to promote Wonderful Indonesia to tourism businesses in the Asia Pacific region as one of the focus areas of our tourism market," he noted.

Jemadu added that Indonesia has rented a land area of 108 square meters that will be designed with the nuance of Wonderful Indonesia and the Indonesian pavilion that characterizes the diversity of Indonesian culture with a modern touch.

He invited 12 domestic industry players, including Garuda Indonesia, to participate in the PATA Travel Mart to market the tour packages to Indonesia.

PATA Travel Mart is one event that has a strong credibility and is recognized by the worlds tourism industry, Jemadu explained.

Besides Asia, tourist attractions in Indonesia will also be promoted by numerous tourist buses in Paris, France, for a month, starting from Sept 12 to Oct 9, 2017.

Chief of Visit Indonesia Tourism Office (VITO) in France, Eka Moncarre, remarked on Tuesday that September will be full of Visit Indonesia activities.

Hence, he remarked that September would be the right month for tourist buses in Paris to promote Wonderful Indonesia to local communities and tourists visiting the city.

In addition, he noted that Wonderful Indonesia will also adorn every street in Paris and every corner of the city during the Visit Indonesia activities.

Moncarre added that the promotion of Wonderful Indonesia in Paris aims to attract as many European tourists as possible to visit Indonesia.

Two years after the opening of VITO Frances office to the public, the marketing of Wonderful Indonesia in the country has been more and more intense in order to capture French tourists to Indonesia.

Some 16 Open Tours Buses in Paris are being decorated with beautiful scenery in Indonesia such as Borobudur Temple, beautiful Balinese dancers, Komodo dragon, Lake Toba, and beautiful Raja Ampat.

Promotion of Wonderful Indonesia in Paris aims to be an invitation to explore Indonesia, in addition to explaining about the natural beauty of Indonesia and its culturally friendly people.

In the meantime, Indonesian-Australian Students Association in Western Australia (PPIA-WA) has promoted Wonderful Indonesia in Perth.

Tourism Ministrys Deputy for Tourism Development and Marketing Abroad I Gde Pitana remarked in a written statement to Antara on Sunday that the promotion of Wonderful Indonesia on Sept 9, 2017, was supported enthusiastically by both Indonesian and Australian communities in Western Australia.

Pitana revealed that he also supported the promotion of Wonderful Indonesia in Western Australia, as one of the focus of Indonesian tourism market.

"The event is a golden opportunity for the Indonesian students in Western Australia to showcase the beauty of their countrys tourism, culture, arts, music, and culinary delicacy," Pitana explained.

According to him, the event that took place at the Rocks 26 Cecil Avenue Cannington 6107 in Perth was attended by more than 1 thousand people from Western Australian students and communities.

Themed "Modern Retro," Wonderful Indonesia was enlivened by the performance of Malang Carnival, the performance of vocalist Kunto Aji from Yogyakarta, comic Fikri from Bogor, and Ran Band.

Even in Jakarta, My Trip My Adventure (MTMA) Community has also participated in promoting Wonderful Indonesia by involving young children interested in adventure tourism.

Tourism Ministrys Deputy for Tourism Marketing Development Esthy Reko Astuti remarked recently in a written statement that she positively welcomed the MTMA Community that took part in promoting Wonderful Indonesia.

"This community-based generation holds regular activities for promoting Indonesias charm. They use blogs and other social media (platforms) to promote Indonesian tourism to a wider community," Astuti noted.

According to Astuti, most members of the MTMA Community belong to the millennial generation that is familiar with gadgets and is in tune with the digital world to promote Indonesias tourism.

"Every episode has always been explored with new tourist sites that are rarely visited and showcased. With around 2 thousand members in 80 regions all over Indonesia, the MTMA Community is part of the Tourism Ministry to promote tourist destinations in the country," she concluded.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017
https://m.antaranews.com/en/news/112641/wonderful-indonesia-promoted-in-different-countries

 

[Star Bugs]

This is not Myanmar. This is not Thailand. This is Lumbini Natural Park in North Sumatra Province. The park hosts the largest pagoda in Indonesia, covered in gold with the statues of Buddha made of green jade from Myanmar.

 

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President optimistic toll road target of 1,800 km achieved
9 hours ago | 602 Views

Salatiga (ANTARA News) - President Joko Widodo (Jokowi) said he was optimistic the target to build 1,800 kilometers of toll road until 2019 would be achieved.

Jokowi said he was convinced by Public Works and Housing Minister Basuki Hadimulyono that the target could be reached.

Three years earlier, Indonesia had only 780 kilometers of toll road, far lagging behind neighboring countries, he said.

In 2019 we will have an addition of 1,800 kilometers, the president said after commissioning a new 17 kilometer toll road between Bawen and Salatiga on Monday.

"In more than 10 year we have only 780 kilometers of toll road. China builds up 4,000 to 5,000 kilometers a year," he said .

In 1977 when first the country had its first 77 kilometer Jagorawi toll road, many other countries wanted to study the management and construction of the toll road, he said.

"But soon they already had thousands of kilometers, leaving us lagging behind with only 780 kilometers three year ago," he said.

Jokowi said the main drag in the development of toll roads in the country is land clearing as the land owners raised the price of their land when they know the government wanted the land.

"Now we see the key . We already found the key. We are not inferior in construction if the land has been cleared," he added.

The president said the toll roads are expected to significantly cut the logistic cost.

He said the transport cost for goods is more than two times higher in Indonesia than in Singapore and Malaysia.

The president, therefore, hopes that construction of Trans Java toll road could be completed in 2018 after years in the process of construction. (*)

 

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Indonesia Climbs Up Global Competitiveness Ladder: WEF Report

Indonesia's competitiveness has improved over the past year, on the back of the country's large market, robust macroeconomic environment and notable efforts to improve business sophistication, according to a report by the World Economic Forum, published on Wednesday (27/09).

The Global Competitiveness Report 2017-2018 rates Indonesia as the world's 36th most competitive economy among 137 nations, with the country having improved five places from a year earlier. Indonesia took the place of Poland, which slipped to 39th spot on this year's list.

"Indonesia is inching its way up the competitiveness ladder [...] Indonesia improved its performance across all of its pillars," the report says.

The Global Competitiveness Index weighs each country's competitiveness based on 12 pillars, that include a country's institutions, policies and factors that determine the level of productivity. The latter also determines a country's prosperity potential.

Indonesia maintains its record as one of the top performers in terms of market size, macroeconomic stability, innovation and financial market development.

The country is considered one of the top innovators among emerging economies. However, it is also worth mentioning that the country is "lagging quite far behind" in terms of technological readiness and labor market efficiency due to overlapping costs, limited wage flexibility and low participation by women in the labor force.

The latest edition of the Global Competitiveness Report also features businesses' opinions on the most problematic factors for doing business in the country. According to the survey, corruption, inefficient government bureaucracy, limited access to financing, inadequate infrastructure and policy instability are the most concerning aspects.

This year's result is slightly different from last year's, when inflation was among the five most problematic factors.

The 2017 edition of the executive opinion survey is based on the views of 14,375 business executives in 148 economies and it was undertaken between February and June this year. Only 12,775 responses from people in 133 economies have been retained. This year's survey includes the views of 94 respondents from Indonesia, compared with 86 last year.

http://jakartaglobe.id/business/indonesia-climbs-up-global-competitiveness-ladder-wef-report/

 

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Mastan: kualitas penelitian manufaktur logam masih tertinggal
Kamis, 28 September 2017 20:30 WIB - 655 Views

Arsip: Pekerja menggarap pembuatan tatakan kompor di Sentra Industri Kecil dan Menengah (IKM) logam Ngingas, Waru, Sidoarjo, Jawa Timur, Senin (27/2/2017). (ANTARA FOTO/Umarul Faruq)

Jakarta (ANTARA News) - Ketua Masyarakat Standardisasi Indonesia (Mastan) Supandi mengatakan kualitas penelitian manufaktur logam di Indonesia masih tertingal dibandingkan negara lain.

"Kualitas kelembagaan penelitian, kerja sama penelitian antara perguruan tinggi dan industri, serta ketersediaan ilmuwan dan ahli teknologi Indonesia masih tertinggal dibanding negara lain," ujar Supandi dalam seminar "Menumbuhkembangkan Daya Saing Industri Manufaktur Logam dan Mesin melalui Inovasi dan Standardisasi" di Jakarta, Kamis.

Penganggaran dana untuk penelitian di Indonesia masih rendah dan belum menjadi prioritas. Begitu pula dengan jumlah pelaku riset.

"Persoalan lain di antaranya masih rendahnya jumlah Standar Nasional Indonesia (SNI) wajib termasuk lingkup atau jenis atau macam barang yang sudah ber-SNI untuk produk industri logam dan mesin," jelas Supandi.

Supandi menilai melemahnya produktivitas industri mesin perkakas di Tanah Air diakibatkan oleh beberapa hal, di antaranya impor material dasar dari negara "nonfree trade agreement" dikenakan bea masuk tinggi. Sementara impor produk jadi dari negara yang menjalin perjanjian dagang tidak dikenakan.

Kemudian, struktur ongkos produksi pada industri perkakas sekitar 40 persen hingga 60 persen hanya untuk bahan baku. Sedangkan tarif bea masuk baja MFN sesuai PMK No. 97/2015 tentang Penetapan Sistem Klasifikasi Barang Dan Pembebanan Tarif Bea Masuk Atas Barang Impor paling rendah 10 persen dan paling tinggi 20 persen.

"Disharmoni tarif ini menyebabkan harga produk dengan nilai tingkat kandungan dalam negeri (TKDN) tertentu mendapatkan preferensi harga lebih tinggi 10 persen, tetapi tetap tidak mampu bersaing dengan produk mesin perkakas impor," kata dia.

Seminar yang diselenggarakan oleh Badan Standardisasi Nasional (BSN) berkerja sama dengan Mastan itu diharapkan mampu mengindentifikasi masalah dan menemukan solusi untuk memicu inovasi dan standardisasi barang hasil produksi di sektor logam dan permesinan.

Selain itu, hasil seminar juga diharapkan akan menghasilkan usulan kebijakan baru, menyempurnakan atau sinergi kebijakan fiskal yang ada, agar insentif pajak yang diberikan pemerintah lebih menarik.

(T.I025/S024)
Editor: Ruslan Burhani

COPYRIGHT © ANTARA 2017

 

[MarveL]

COLLECTIE TROPENMUSEUM Hotel des Indes in Batavia TMnr 60009042 - Tourism in Indonesia.

 

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South Korea eyeing railway project in South Sulawesi
Rabu, 27 September 2017 19:16 WIB - 1.895 Views

Denpasar (ANTARA News) - The government of South Korea has expressed interest in building railway transport in South Sulawesi, Transport Minister Budi Karya Sumadi said.

South Korea expressed interest in at least four projects including the railway projects in South Sulawesi, the Kualanamu airport expansion project in North Sumatra, and the Kuala Tanjung and Kijing port projects , Budi said after a meeting withy the Korean delegation in the Asia-Europe Meeting of Transport Ministers here on Wednesday.

"We give an opportunity for Korea to invest mainly in the railway project in South Sulawesi," he said.

Budi said South Korea has the competence in railway project development with details and competitive price offer.

He said a memorandum of understanding has been signed with South Korea on development of transport infrastructure to be confirmed in two or three months to come with a ministerial level.

Budi said the cost of the project to be built by South Korea is around Rp20 trillion.

Meanwhile, Indonesia and Japan have agreed to carry out three projects as scheduled. The three projects are Jakartas Mass Rapid Transit (MRT), the port of Patimban and Jakarta-Surabaya High Speed Train (HST).

Deputy chairman of the Indonesian Chamber of Commerce and Industry Carmelita Hartoto said she supports foreign investments to speed up development of connectivity.

"We support the involvement of the private sector that all projects would be carried out immediately and to create healthy competitiveness in the business sector," she said.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017

 

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Bangun 2 Pabrik di Gresik, Perusahaan Karbit Ini Bakal Serap 300 Karyawan
Danang Sugianto - detikFinance

Foto: Danang Sugianto-detikFinance
Jakarta - PT Emdeki Utama Tbk (MDKI) menjadi emiten anyar ke-22 tahun ini. Perusahaan produsen kalsium karbida itu pun akan membangun 2 pabrik baru dari dana hasil IPO.

Direktur Utama Emdeki Utama Hiskak Secakusuma mengatakan, pihaknya akan membangun pabrik high-grade silica alloy dan pabrik carbide desulphuriser. Dua pabrik tersebut merupakan langkah diversifikasi produk yang dilakukan, di mana saat ini perseroan hanya memproduksi kalsium karbida.

"Jadi kami tidak melakukan ekspansi, tapi diversifikasi produk baru. Kapasitas pabrik produk pertama tetep berjalan, rata-rata volume produksi sekitar 20-25 ribu metrik ton," tuturnya di Gedung BEI, Jakarta, Senin (25/9/2017).

Hiskak menjelaskan, high-grade silica aloy (ferrosilicon/FeSi 75%) merupakan bahan yang dibutuhkan dalam industri baja. Hingga saat ini belum ada perusahaan yang mampu memproduksi bahan tersebut, sehingga seluruh pelaku industri baja melakukan impor.

Sedangkan untuk produk carbide desulphuriser merupakan produk sama namun dengan kualitas yang lebih tinggi. Produk tersebut juga belum ada di Indonesia.

Kedua pabrik tersebut akan dibangun di atas lahan milik perseroan yang ada saat ini di Gresik, Jawa Timur. Untuk pabrik high-grade silica aloy akan memiliki kapasitas 6.000 metrik ton per tahun, sementara untuk carbide desulphuriser sebanyak 6.500 metrik ton dan akan selesai dalam 2 tahun mendatang.

Masing-masing dari pabrik tersebut akan menyerap sekitar 150 karyawan baru, sehingga perseroan akan membutuhkan karyawan baru sekitar 300 orang. Adapun jumlah karyawan perseroan saat ini sebanayka 350 orang.

Untuk membangun kedua pabrik tersebut perseroan akan menggunakan dana hasil IPO sebesar Rp 184 miliar. Sekitar 73,91% atau Rp 134 miliar akan digunakan perseroan untuk belanja modal. Dari jumlah tersebut sebesar 48,96% akan digunakan untuk pembangunan pabrik high-grade silica aloy dan 24,95% untuk bangun pabrik carbide desulphuriser.

Sementara sekitar 13,41% dana hasil IPO akan digunakan untuk modal kerja kedua pabrik tersebut, sementara sisanya 12,68% akan digunakan sebagai modak kerja produksi kalsium karbida.

Sementara untuk tahun ini perseroan menargetkan pendapatan tumbuh 32% dari tahun lalu menjadi Rp 451 miliar. Sementara untuk laba bersih ditargetkan tumbuh 8% menjadi Rp 93 miliar.

Perseroan yakin akan target tersebut, sebab mereka telah mengantongi penjualan untuk ekspor kalsium karbida ke India selama periode Juni 2017 sampai Juli 2018. Ekspor tersebut diperkirakan akan menyumbang penjualan sekitar 20% dari target yang telah ditetapkan.

Ini merupakan langkah ekspor pertama perseroan setelah sudah cukup lama Emdeki Utama tidak melakukan ekspor. "Kita pernah ekspor ke Jepang, Amerika Serikat, Malaysia, tapi terhenti lantaran persaingan dengan produk dari China. Cost untuk ekspor juga cukup besar, makanya kami fokus di domestik," tambah Hiskak.

Untuk 2016 kemarin perseroan telah memproduksi sebanyak 21.185 metrik ton derngan volume penjualan sebesar 21.169 metrik ton. Seluruh penjualan terserap oleh pasar domestik.

Ada pun panga pasar kalium karbida di Indonesia sekitar 60% ritel yang biasanya para pelaku usaha las baja dan sekitar 40% untuk industri. Untuk pasar ritel Emdeki Utama mengusai pangsa pasar sekitar 99%, sementara untuk industri 50%. Dengan portofolio seperti itu, tentu sulit bagi perseroan untuk meningkatkan kinerja penjualan.

"Maka dari itu kami melakukan diversifikasi produk. Selain itu kita buka pintu ekspor. Karena pasar domestik tentu sudah sulit tumbuh," tandasnya. (dna/dna)

 

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New regulation forces Indonesians to sell their foreign shell companies

On the back of the Indonesian government's issuance of its new controlled foreign company (CFC) regulation on July 26, many Indonesians are likely to sell their foreign shell companies because of the enforcement of double tax payments.

The CFC regulation authorizes the government to charge a dividend tax on foreign companies that are controlled by Indonesians even though the companies are formed in tax heaven countries.

Consultancy firm Deloitte's Indonesia tax partner Dionisius Damijanto said on Monday if an Indonesian investor indirectly owned an Indonesian company through a foreign company, the government would charge taxes on each dividend payment.

"The government will charge tax on dividend payments from the Indonesian company to the foreign shell company and impose another tax on dividend payments from the foreign shell company to the investor," he said during a Deloitte-Indonesia Stock Exchange (IDX) joint event in Jakarta on Monday.

As an example, he said if an Indonesian company gave a Rp 100 million (US$7,374) dividend to the foreign shell company, the government would impose a 30 percent international withholding tax.

"If the investor owns the Indonesian company directly, the government will only charge a 10 percent dividend tax or Rp 10 million," Dionisius said. (bbn)

http://www.thejakartapost.com/news/...ns-to-sell-their-foreign-shell-companies.html

 

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Indonesia fights negative campaign against palm oil at WTO
Selasa, 3 Oktober 2017 17:53 WIB - 464 Views

Jakarta (ANTARA News) - Indonesia is fighting a negative campaign against the palm oil industry through the World Trade Organization (WTO) forum, noted a press statement from the permanent representative of Indonesia in Geneva, received here, Tuesday.

To counter the negative campaign against palm oil at international trade forums, the Government of Indonesia has initiated the implementation of the "Workshop on Sustainability and Non-Tariff Barriers to Trade: The Case Study of Palm Oil" held at the end of September 2017 at the WTO Public Forum in Geneva, Switzerland.

The workshop is an initiative by Indonesia supported by several other palm oil producing countries, such as Malaysia, Thailand, Guatemala, and Colombia.

Based on records in several export destination countries, particularly Europe, palm oil products have been subjected to discriminatory treatment in relation to issues of forest destruction, climate change, and violations of indigenous rights.

Such negative campaigns have led to enormous state losses. As a result, it will have a negative impact on the national economy.

At the opening ceremony, Ambassador Hasan Kleib, the permanent representative of Indonesia in Geneva, said that various facts indicate the existence of various pressures on palm products in Europe. The pressure comes from various developed countries and the tariff and non-tariff rules set by the governments of palm oil consumers.

Several speakers, especially those from developing countries, revealed that the development of the palm oil industry had improved the economic conditions in their nations.

"The poverty alleviation program, reduction in inequality, and increase in income have been widely supported by the palm oil industry, and in its development, the industry has involved small-scale players," Ambassador Kleib noted.

Margot Logman of the European Palm Oil Alliance (EPOA) also offered balanced information from the sustainable palm oil perspective in the European region, particularly from the consumer side, to address challenges in the form of environmental and social issues related to deforestation and forest degradation.

"Developed countries should help producer nations to make sustainable palm oil," he emphasized.

The EPOA recognizes the fact that palm oil production plays a key role in the economic activities of producer countries and has contributed directly or indirectly to help communities in these countries emerge from poverty.

Furthermore, palm oil producing countries will continue to work with several stakeholders in Geneva, Switzerland, and in Brussels, Belgium, to ensure that any applicable legislation will be fair and in accordance with the provisions of the multilateral fora.(*)
Editor: Heru

COPYRIGHT © ANTARA 2017

 

[katarabhumi]

Indonesia's First Billion-Dollar Startup Looks to Expand Abroad
By Yoolim Lee - October 1, 2017, 5:00 PM EDT

Go-Jek, Indonesia’s first billion-dollar startup, is looking to expand its ride-hailing services to three to four countries in Southeast Asia, escalating its rivalry with Grab and Uber Technologies Inc.

Co-founder and Chief Executive Officer Nadiem Makarim didn’t specify the countries or services that Go-Jek will target, but said in an interview they will be places with a large population and where cash rules, hinting that Go-Jek’s digital payment service will be a key part of its push into new markets.

Singapore-based Grab, aided by massive funding from SoftBank Group Corp. and China’s Didi Chuxing, has pushed aggressively onto Go-Jek’s home turf. Grab, Southeast Asia’s largest on-demand transport company with operations in seven countries, is run by Anthony Tan, Makarim’s former classmate at Harvard Business School. For Go-Jek, this will be its first foray outside its home country.

“We’ve always been on the defensive,” Makarim said in Jakarta, without saying when Go-Jek would expand. “It’s time to bring competition to their doorsteps.”

After Indonesia, the Philippines, Vietnam and Thailand have the most number of people in the region, with a combined population of about 270 million. Go-Jek and Grab have rolled out mobile digital-payment services, seeing it as a way to scale their businesses and build a potentially lucrative business by offering financial services to a large number of people with little access to banking.

“I think we’ve cracked the model of a platform that works in an emerging economy where infrastructure isn’t so great,” Makarim said. “There is a high likelihood that we would leverage our full stack. If we come in, we come in with the whole sweep of weapons.”

https://www.bloomberg.com/news/arti...-beyond-indonesia-on-track-to-clash-with-grab
https://www.bloomberg.com/news/arti...-beyond-indonesia-on-track-to-clash-with-grab
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Indonesia unlikely to need imported LNG until 2020 as output to rise
Wilda Asmarini, Bernadette Christina Munthe

FILE PHOTO: A liquid natural gas plant is seen at PT Donggi Senoro LNG in Banggai, Indonesia, Central Sulawesi province, October 22, 2016 in this picture taken by Antara Foto. Antara Foto/Puspa Perwitasari/via REUTERS
JAKARTA (Reuters) - Indonesia is unlikely to need to import liquefied natural gas (LNG) until at least 2020 due to robust gas production at home, a senior government official said on Wednesday, even as the government has pushed increased domestic gas consumption.

“Our production has turned out to be better than predicted,” the country’s Director General of Oil and Gas, Wiratmaja Puja, told reporters on Wednesday. “So there’s a high possibility we won’t need to import in 2019.”

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Puja was referring to higher-than-expected output from the Jangkrik gas field operated by Eni. The field was designed to produce 450 million cubic feet per day of gas but output could be up to 600 million cubic feet per day, he said.

Currently the world’s fifth-biggest exporter of LNG, Indonesia has lost market share to new production from Australia and Qatar and as output is reserved for domestic needs. However, the domestic gas market has not developed as anticipated even after the government promoted the fuel to replace coal for power plants and as an industrial fuel.


Power plant developers in Indonesia are still relying on cheaper coal, however, which has curtailed the development of gas infrastructure. [reut.rs/2tM1Ade]

Puja also called into question imports after 2020 when he mentioned BP’s Tangguh Train 3 project will supply more gas to Indonesia from 2020 onwards.

“At the end of 2020 we won’t need to import,” he added.

The comments come even as Australia’s Woodside Petroleum inked a contract in April to supply Indonesia’s state-owned energy company Pertamina with LNG from 2019 to 2034. Pertamina also has a LNG import deal with U.S.-based Cheniere Energy Inc from 2018 and Exxon Mobil Corp from 2025.

Puja suggested those supplies could be redirected to other LNG buyers in Asia, particularly Bangladesh. “We are pushing Pertamina to go global,” he said.

When contacted by Reuters, Pertamina’s Vice President for LNG, Didik Sasongko, supported that idea.

“We can use it for trading or to optimise Pertamina’s LNG portfolio,” Sasongko said, referring to the Cheniere deal. “There’s flexibility on delivery,” he said when asked about the Woodside imports.

Meanwhile, Puja said that Indonesia is looking for buyers for 16 to 18 uncommitted LNG cargoes for this year.

He expects an average of 50 to 60 uncommitted cargoes per year until 2035.

Reporting by Wilda Asmarini and Bernadette Christina Munthe; Writing by Fransiska Nangoy and Fergus Jensen; Editing by Christian Schmollinger

Our Standards:The Thomson Reuters Trust Principles.