Japan supports Indonesia`s infrastructure development program

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Fukuda leads Japanese business delegation to meet Jokowi
Rabu, 27 Juli 2016 15:31 WIB | 951 Views

Jakarta (ANTARA News) - President Joko Widodo (Jokowi) on Wednesday met with former Japanese Minister Yasuo Fukuda at the head of a business delegation.

Fukuda as the president of the Association of Japanese-Indonesia with chief executives of major Japanese companies met Jokowi at the Merdeka palace.

Jokowi said the visit by Fukuda and the business leaders indicated Japanese confidence in Indonesia politically and economically.

"Fukuda said Indonesia fares much better than other countries on political and economic stability," the president said.

Among the members of the business delegation included Yutaka Iimura (vice president of Japan-Indonesia Association), Kazuo Ohmari (Sumitomo Corporation Chairman), Fumio Ohtsubo (Panasonic Corporation), Takahashi Yamauchi (Taisei President), Yoshiro Shigehisa (JGC Corporation, Chairman Emertus of JGC Group), Nobumitsu Hayashi (Japan Bank of International Corporation), Michihiko Ota (Marubeni Corporation Vice Chairman), Yutaka Sunohara (The Ports and Harbours Associaation of Japan, President), Shunsaku Miyake (JX Nippon oil and Gas Exploration), Tadashi Izawa (Managing director Sumitomo Mitsui Banking Corporation), Ryuji Nishisaki (Managing Sumitomo poration).

Fukuda and group visit the country for three days ending July 28, 2016 . They are also scheduled to meet Vice President Jusuf Kalla and a number of cabinet ministers. (*)
http://www.antaranews.com/en/news/105910/fukuda-leads-japanese-business-delegation-to-meet-jokowi

 

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KPJ Healthcare, Japanese firms explore Indonesian oncology centre venture
Posted on 3 August 2016 - 05:38am
sunbiz@thesundaily.com


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PETALING JAYA: KPJ Healthcare Bhd has teamed up with Japanese firms to explore the possibility of developing and operating an oncology centre in Indonesia at an estimated cost of US$12 million (RM48.3 million).

In a filing with Bursa Malaysia yesterday, it said that its wholly owned subsidiary Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB) has signed a memorandum of understanding (MoU) with Sojitz Corp and Capital Medica Co Ltd of Japan.

The MoU sets out the tri-partite collaboration between the three parties to study the proposed opening of the oncology centre at Rumah Sakit Medika Bumi Serpong Damai (RSMBSD).

KPJ said the oncology centre has the potential to offer a wide range of cancer management services to the locals and will enhance the services available at RSMBSD, as well as create more employment opportunities.

In addition, the collaboration will facilitate the sharing and transferring of medical technology and know-how between Japan, Malaysia and Indonesia.
http://www.thesundaily.my/news/1922745

 

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Japan logistics giants to open warehouses in Indonesia
TOKYO -- Two major Japanese logistics companies are planning new warehouses in Indonesia to capture growing demand there for food and household goods.

Mitsubishi Logistics will open a refrigerated warehouse with cooking facilities in an industrial park near Jakarta. Construction will begin in October for completion next July.



Of the roughly 18,000 sq. meters in floor space, about 1,700 sq. meters will be equipped to maintain temperatures between 2 C and 8 C. Food prepared in the cooking facilities will be shipped to convenience stores and commercial facilities. The company expects to serve Japanese food companies and retailers operating in Indonesia.

A Mitsui-Soko Holdings warehouse is slated for completion in October in the second-largest city, Surabaya. The 29,700-sq.-meter facility will sit near an industrial park and hold autoparts, resin materials and household goods. This new site, on the eastern side of Java, will complement the other Mitsui-Soko sites in Jakarta, on the western side.

Rising demand from the growing ranks of middle-class consumers is shifting the focus of Indonesian logistics facilities from exports to the domestic market.

(Nikkei)

 

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Japan-Based Companies Ready to Move to East Java
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TEMPO.CO, Jakarta - East Java Governor Soekarwo said a number of Japanese companies had expressed their readiness to relocate their offices to East Java from other regions in Indonesia. According to Soekarwo,

"Soon, Japan-based companies will relocate their offices in East Java. It will definitely have positive impacts on local people," Soekarwo said in Surabaya on Friday, August 26, 2016.

Soekarwo revealed that he had met with the Japanese Consulate General in Surabaya during the commemoration of the 71st anniversary of Indonesia’' independence on August 17, 2016.

During the meeting, a number of Japanese investors in Jakarta, West Java and Banten had expressed their commitment to relocate their production facilities to East Java to ensure their investment sustainability. Soekarwo pointed out the lower minimum wage set in East Java had been one of the contributing factors for the Japan-based companies to relocate their factories.

"During a strike in other provinces, factories are closed and workers are forced to participate in the protest affecting the operation. Therefore, the companies decided to move to East Java," Soekarwo added.

In addition, successful operations showed by other companies, who had have operated in East Java, have motivated Japanese companies to relocate their operations.

Soekarwo also planned to visit Japan to meet the government and local investors to tighten business ties.

"I'm planning to depart for Tokyo on October 17, 2016 to talk about investment and business in a bid to improve the economy in East Java," Soekarwo said.

ANTARA


Japan’s Patimban deep sea port project sees uncertainty

• Farida Susanty
  The Jakarta Post
  

Jakarta | Fri, August 26 2016 | 09:25 am
Japan’s multi-billion-dollar deep sea port project in Patimban, West Java, has hit a new snag after the government slashed the limit of foreign loans that are allowed for the national strategic project.

The US$3.08 billion project was initially planned to receive $2.2 billion through a Japanese loan, while the remaining was to have come from the government. However, the National Development Planning Agency (Bappenas) slashed the limit of foreign loan participation into the project to just $1.7 billion, at least until 2019.

Bappenas’ deputy of development financing, Wismana Adi Suryabrata, said that the move was taken for administrative reasons, because the agency’s “Blue Book”, which lists foreign loans for government projects, will only apply until 2019.

Meanwhile, the Japanese loan for the rest of the construction phases after 2019 will be included in the next Blue Book.

“Basically it’s just work phases,” said Wismana. The Patimban project is divided into three phases, with the first having a port capacity of 3 to 4 million total equivalent units (TEUs) slated for completion in 2021. At the end of the project, Patimban port is expected to have a capacity of 7.5 million TEUs.

The Patimban deep-sea port project in Subang, West Java, is aimed at supporting the flow of goods to and from industrial estates in regencies east of Jakarta, such as Bekasi and Karawang, which are occupied by many Japanese companies.

It will serve as an alternative port to the already congested big ports, such as Tanjung Priok in Jakarta, the country’s largest port and a hub for more than 50 percent of goods shipped in and out of Indonesia. The government expects the new port to provide more ease in the distribution and traffic of the goods shipped in the country, which are plagued by staggering logistics costs.

During a bilateral meeting on the sidelines of the G7 summit on May, President Joko “Jokowi” Widodo also extended a guarantee to Japan Prime Minister Shinzo Abe that Japan could develop the project.

Japan has been conducting a feasibility study on the port since July, adding to the previous feasibility study on the project done by the Transportation Ministry because it deemed the Asian economic powerhouse as having no concrete plan for the port, despite high expectations from the previous bilateral agreement done by both of the countries’ leaders.

The Japanese Embassy’s counselor for information and culture, Kenichi Takeyama, said that Japan had not yet decided whether the port was feasible economically as the study was still ongoing.

“We have not even started with the investment calculation. That is still so far ahead,” he said, adding that the loan agreement had not been discussed as the current progress was limited to a physical study.

The government itself previously expected to sign the loan agreement for the project in April 2017. The project may get a soft loan, called Special Terms for Economic Partnership (STEP), with a 0.1 percent interest rate.

Transportation Ministry port director Mauritz HM Sibarani said that until now the government had not allocated its portion of the funding in the draft of the 2017 state budget in which Transportation Ministry would obtain Rp 48.7 trillion ($3.6 billion).

“We don’t even know how much of a loan we would get from Japan,” he said over the phone on Thursday.

Mauritz added that Japan itself had not finished the detailed engineering design (DED) for the project that would yield an exact investment figure. “I cannot answer before they finish the DED,” he said when asked about the government’s investment proportion in the project after Bappenas’ decision to slash the foreign loan limit for it.

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MONDAY, 29 AUGUST, 2016 | 08:50 WIB
Toyota to Continue to Invest Big in Indonesia
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TEMPO.CO, JYokohama - Toyota will continue its major investment plan in Indonesia, particularly in manufacturing, up to Rp20 trillion by 2020.

PT Toyota Motors Manufacturing Indonesia (TMMIN) deputy president director Warih Andang Tjahjono in Tokyo, Japan, said Sunday, August 28, 2016, that Toyota has made Rp10 trillion investment of its planned investment in Indonesia, as promised by Toyota Motor Corp (TMC) president director Akio Toyota.

“Major projects have been realized, the third plant has been completed,” he said.

Since 2013, he went on, Toyota’s production capacity in Indonesia continues to increase, from 110,000 units to currently 25,000 units per day.

According to Warih, the total TMC investment in the past few years have reached roughly Rp10 trillion, in which the biggest investment had been made to develop the production capacity of Kijang Innova and Fortuner at approximately Rp5 trillion, followed by the production of Sienta at around Rp2.5 trillion, and NR engine production with an investment value of roughly Rp2.3 trillion.

“Investment will continue, although it would not be as big as the current investment,” Warih said.

ANTARA

 

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Japan, Indonesia team up on 28 projects to reduce CO2 emissions

• Ayomi Amindoni
  The Jakarta Post
  

Jakarta | Mon, August 29 2016 | 03:12 pm

Against global warming — School students and environmental activists stage a peaceful rally to protest land clearing using the slash-and-burn method, which has lead to land and forest fires in Riau.(Tempo/-)
Topics

• emission carbon-emission CarbonEmission Indonesia-Japan-carbon-offset-mechanism

Japan and Indonesia have agreed to team up on 28 projects under the Joint Crediting Mechanism (JCM), a bilateral carbon offset credit program signed in 2013 between the two governments, a senior official has said.

Rizal Effendi Lukman, the deputy for international economic cooperation at the Office of the Coordinating Economic Minister, said the bilateral offset credit mechanism would amount to US$150 million during its three-year implementation in Indonesia.

He said the mechanism would allow Japanese companies to earn carbon credits by helping Indonesia cut its carbon ( CO2 ) emissions.

Rizal added that since 2013, 108 project feasibility studies had been conducted under the JCM scheme. So far, 28 projects in various sectors are in the pipeline.

"From $37 million worth of Japanese grants received, there could be $113 million worth of investments drawn into Indonesia. Thus, in total, there is more than US$150 million worth of project investment in this country," Rizal said after a national seminar to strengthen the three-year partnership, in Jakarta on Monday.

Coordinating Economic Minister Darmin Nasution said the JCM, as a unique collaboration of grants, investment and low carbon growth, was proven to be favorable in Indonesia’s business context, not only in terms of emission reductions but also in encouraging the private sector’s role in reducing emissions.

"Under the program, we have several initiatives, including promoting renewable power supplies, waste management, low carbon activities and CO2 reduction, while at the same time we continue to maintain the private sector’s productivity," Darmin said. (ebf)

 

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Japanese investor to build bio gas power plant in Mukumuko
Selasa, 30 Agustus 2016 19:36 WIB | 363 Views

Mukomuko, Bengkulu (ANTARA News) - A Japanese investor plans to build a bio gas power plant (PLTG) utilizing nutshell of oil palm fruits for fuel in Mukomuko District, Bengkulu.

"Currently the investor is waiting for the license from the district administration," a member of the district legislative Assembly (DPRD) Zulfahni said here on Monday.

Zulfahni said the investor already prepared land where the facility would be built in the sub-district of Ipuh.

The power plant will have a power generating capacity of five to 10 megawatts.

"The power plant with that capacity would be able to meet power requirement in this district," Zulfahni said.

He said the investor would cooperate with the national power utility PT Perusahaan Listrik Negara (PLN) in providing electricity in this district.

The district administration would not be burdened with the cost of building the facility as the investor would finance the project, he said.

The investor offers a 25-year cooperation with the district administration and after the end of the contract, the facility would be wholly owned by the district administration.(*)

http://www.antaranews.com/en/news/106482/japanese-investor-to-build-bio-gas-power-plant-in-mukumuko

 

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Nissan Kicks Off $33m Plant Expansion in West Java

Jakarta. Nissan Motor Indonesia, the local arm of the Japanese multinational automaker, started construction of a new assembly line at its existing plant in Purwakarta, West Java, on Thursday (08/09) as part of the company's strategy to further boost sales.

The new facility, which will cost Rp 436 billion ($33 million) to build, will have the capacity to produce 96,000 engines and transmission parts per year.

"Indonesia is one of the key strategic markets for Nissan globally. The groundbreaking marks an important milestone in our growth strategy," Nissan Motor Indonesia president director Antonio Zara said in a statement received by the Jakarta Globe on Thursday.

Nissan's first investment in an Indonesian plant was in 2001, after the company identified Indonesia's potential to become one of the biggest car markets in Asia. Even today, there are only 70 cars for every 1,000 Indonesians compared to 206 in Thailand and 361 in Malaysia.

The expansion reaffirms Nissan's long-term commitment to Indonesian consumers, Zara said.

"I am confident that our new plant will produce world-class quality engine parts and that we will continue to deliver products to our Indonesian customers," Nissan Motor Indonesia vice president Fumitoshi Yoshikawa said in the statement.

The company introduced its new Datsun Go-Cross at the 2016 Gaikindo Indonesia International Auto Show in August, continuing its efforts to revive the brand that was popular in Indonesia in the 1970s. Nissan reintroduced the Datsun brand in Indonesia in 2014 to compete in the low-cost city car market.

Nissan only managed to sell 25,000 cars in 2015, down 21 percent from a year earlier.

http://jakartaglobe.beritasatu.com/business/nissan-kicks-off-33m-plant-expansion-west-java/

 

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PLN Signs $294m Deal With Mitsubishi, Wijaya Karya for Muara Karang Extension

Jakarta. State utility company Perusahaan Listrik Negara, better known as PLN, is confident that it can complete an extension of the Muara Karang power plant, which supplies electricity the greater Jakarta area, by 2019, after signing a Rp 3.9 trillion ($294 million) deal with a contractor.

PLN and a consortium of Japan's Mitsubishi and state-owned construction company Wijaya Karya signed the engineering, procurement, and construction contracts at the utility company's headquarters in Jakarta on Monday (29/08).

The expansion of the Muara Karang gas-powered plant will increase its capacity by 500 megawatts, PLN's director for the West Java region, Murtaqi Syamsuddin, said on Wednesday. The current capacity is 1,200 MW.

Murtaqi signed the contract with Naoki Hirooka, Power Systems International Mitsubishi's manager for Asean and Southeast Asia, and Wijaya Karya operations director Bambang Pramujo.

Naoki thanked PLN for trusting the Mitsubishi-Wijaya Karya consortium to handle this project.

The expansion of the Muara Karang power plant is one of the projects supporting Indonesia's goal to increase electricity production by 35,000 MW before the end of 2019 in order to boost investment and manufacturing capacity in Southeast Asia's largest economy.
http://jakartaglobe.beritasatu.com/...tsubishi-wijaya-karya-muara-karang-extension/

 

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Indonesia, Japan strengthen maritime economic cooperation

Jakarta | Tue, October 11 2016 | 05:32 pm

The Indonesian and Japanese governments have agreed to intensify the maritime economic cooperation the two countries initiated last year in Indonesia, a senior minister has said.

Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan said Indonesia and Japan have agreed to set up working groups to follow up on cooperation agreements that included a joint oil exploration project in Natuna, Riau Islands, agricultural development in Merauke, Papua, and the Patimban Port project.

“With these working groups we hope several projects can start in the first quarter of next year," Luhut said when he told journalists about the results of his visit to Tokyo last week.

The minister said Japan would assist Indonesia in the education sector by providing vocational training and sending its professors to various universities in Indonesia.

"Both countries also agreed to follow up with cooperation over a peacekeeping force, which they also have initiated," he went on.

During Luhut's visit, he offered the Jakarta-Surabaya medium-speed railway project to the Japanese government. Following the meeting, the two countries are set to conduct a joint study on the project, which is expected to begin in the first quarter of 2017. (ebf)

http://www.thejakartapost.com/news/...strengthen-maritime-economic-cooperation.html

 

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Wednesday, 12 October 2016, 00:01 WIB
Indonesia invites Japan to take part in East Natuna gas exploitation
Red: Reiny Dwinanda

Antara/Rosa Panggabean

Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan has invited Japan to participate in the project to exploit the East Natuna block in the Sumatran province.


REPUBLIKA.CO.ID, JAKARTA -- Indonesia's state-owned energy company, PT Pertamina, has hailed a senior minister for proposing to invite Japan to participate in the East Natuna Block gas project in the province of Riau Islands.

Pertamina, ExxonMobil and PTT Thailand have formed a consortium to develop the gas field in the border region. "This is a big investment. The consortium is still to discuss it. I think in view of the big investment needed, it will be good if a number of parties participated. Certainly, the issue will be discussed by the consortium," Pertamina's president director Dwi Soetjipto said at the office of the Coordinating Minister for Maritime Affairs here on Monday.

Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan has invited Japan to participate in the project to exploit the East Natuna block in the Sumatran province. Dwi pointed out that the profit sharing concept was the crucial point to discuss. "What is important now is the formula to share the profits so that the project?s economic value can be realized," he added.

The director general of oil and gas of the Ministry of Energy and Mineral Resources, IGN Wiratmaja Puja, underlined that the consortium was still discussing the production sharing contract. He admitted that Japan and Malaysia (Petronas) have also been invited to develop the block. "Japan has been invited and also Malaysia, and we hope they will be interested," he noted.

Also read: Governemt to immediately decide on East Natuna Block

Malaysia's Petroleum Nasional Berhad (Petronas) had indeed been a member of the consortium but later withdrew. Petronas joined the East Natuna consortium when the Principle of Agreement for the exploration and exploitation of East Natuna was signed on August 19, 2011.

At the meeting with Malaysia's Deputy Prime Minister Ahmad Zahid Hamidi in Malaysia early in September, Minister Luhut had invited Petronas to participate in the oil and gas exploitation in East Natuna. The East Natuna Block plans to first produce oil while gas production will be undertaken after a study in view of the fact that its carbon dioxide (CO2) content can reach up to 72 percent.

The production sharing contract of the East Natuna Block could be signed even though it was expected to happen in September last year since no agreement was reached regarding the profit sharing formula.


Sumber : Antara

 

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MatahariMall.com Secures $100m Equity Round Led by Japan's Mitsui

Jakarta. MatahariMall.com, Lippo Group's e-commerce arm, announced on Wednesday (19/10) it has secured an equity round of $100 million led by one of the largest general trading companies in Japan, Mitsui & Co, solidifying the company's position as one of the most valuable technology companies in Indonesia.

The investment will consist of several tranches over a 12-month period.

"This is a strong validation of our vision and we look forward to delivering on our next phase of growth," Hadi Wenas, MatahariMall.com chief executive, said in a statement on Wednesday (19/10).

According to the statement, MatahariMall.com is the latest in a series of Mitsui investments into the e-commerce industry. Previously, Mitsui led a funding round in Mercari, a leading Japanese customer-to-customer e-commerce marketplace, valuing the company above $1 billion.

"We are confident about Indonesia, and especially e-commerce in Indonesia. We have closely followed MatahariMall's robust growth since its inception, and we are extremely excited to be investing in this company," Nobuaki Kitamori, chief operating officer ITC at Mitsui & Co, said.

"Mitsui is committed to the long term vision of the business and we look forward to empowering the team."

The funding is part of a larger cooperation between Mitsui and the Lippo Group whose partnership is concentrated in the Indonesian technology and media space.

Business leaders in Indonesia have lauded the transaction, saying it is another milestone for the country's e-commerce space.

"We are firm believers in supporting national champions and companies like MatahariMall.com are best positioned to benefit from this digital revolution. Congratulations," Rudiantara, Communication and Informatics Minister, commented.

Chairman of Indonesian Chambers of Commerce and Industry (Kadin) Rosan Roeslani echoed the Minister's sentiments, saying the transaction is "very positive" and "strategic."

"Mitsui has a proven track record of investments in Indonesia. They know the market well and think very long term," he said.

Lippo has invested in 24 early stage technology startups in Southeast Asia through Venturra Capital. Lippo Group also invested in Grab, Southeast Asia's leading ride-sharing platform. According to a recent Bloomberg report, Lippo Group will soon also make inroads into the financial technology space.

"Southeast Asia’s most populous country is increasingly active online and there is significant momentum across Indonesia’s e-commerce landscape," Chris Gammons, head of Southeast Asia Investment Banking at Bank of America Merrill Lynch, said.

Gammons said Indonesia's e-commerce scene is being driven by the three powerful trends of strong economic growth, growing urbanization and rapid technology adoption.

"With an established track record of building successful businesses in the country, and with the key elements for an e-commerce platform already in place, Lippo Group is well positioned to be at the forefront of this compelling sectoral dynamic," he said.

 

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Japan pledges support for Indonesian infrastructure development

• Farida Susanty
  The Jakarta Post

Jakarta | Fri, October 21, 2016 | 11:14 am

Japanese Prime Minister Shinzo Abe (left) speaks with French President Francois Hollande (center) and Indonesian President Joko Widodo (right) as they take part in the "Outreach Session" family photo with world leaders at the G7 Summit in Shima in Mie prefecture on May 27, 2016. (AFP/Jim Watson)
Efforts to boost infrastructure development will get another push after Japan Bank for International Cooperation (JBIC) announced its commitment to provide Southeast Asia’s largest economy with up to US$3.7 billion in loans this year.

The Japanese public financial institution said it would seek opportunities to fund major infrastructure projects in Indonesia, such as the construction of power plants, railways and toll roads, under the public private partnership (PPP) scheme.

“The [source of ] funding for [Indonesian] infrastructure development has shifted from government bonds to the PPP scheme or funding without government guarantee,” JBIC CEO Tadashi Maeda said on Thursday, citing Indonesia’s budget deficit threshold of 3 percent as a part of the reason.

The bank signed on Thursday a loan agreement with state electricity firm PLN to provide $310 million in loans from JBIC-led syndicated banks to finance the construction of PLN’s 800-megawatt (MW) gas and steam-turbine power plant in Tanjung Priok, Jakarta, expected to be completed by 2019.

The loan will mature in 15 years and cover 70 percent of funds needed to run the $437 million project.

The power plant itself is the bank’s second project with PLN funded without the government’s guarantee.

The other project was the construction of a 1x315 MW steam-turbine power plant in Lontar, Banten, which broke ground in June.

JBIC stated that it would also eye funding for the construction of a 2x800 MW coal-based power plant in West Java, one of the country’s biggest power plant projects.

“We might be involved in the funding [of the project],” he said.

JBIC will also coordinate with state infrastructure financing firm Sarana Multi Infrastruktur (SMI) and the National Development Planning Agency (Bappenas) to look for other potential projects to be funded, he said.

Bappenas itself has a list of various infrastructure projects funded under the PPP scheme, including the Lampung water supply project worth Rp 900 billion ($69.2 million) and the Manado-Bitung toll road in North Sulawesi worth Rp 5.1 trillion.

The government estimates it will need Rp 4.7 quadrillion to finance various infrastructure projects for the next few years. It, however, could only cover 40 percent of the funding from the state budget, providing room for private sector participation to fill in the gap.

JBIC revealed that on average, bank budget allocation for Indonesian infrastructure development reached up to $2 billion annually. The realization of funding from JBIC in the last five years has hit $8 billion.

The Finance Ministry’s Fiscal Policy Office (BKF) head Suahasil Nazara urged government institutions to follow up JBIC’s commitment by offering potential projects to be funded.

“Indonesia’s cooperation with JBIC is important for infrastructure development, as they said they would not just focus on physical infrastructure but also social infrastructure,” he said.
http://www.thejakartapost.com/news/...or-indonesian-infrastructure-development.html