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Indonesia Economy Forum

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RI, US firms sign deal to produce medical isotopes
Khoirul Amin, The Jakarta Post, Jakarta | Business | Sat, June 21 2014, 3:07 PM


State-owned companies PT Industri Nuklir Indonesia (INUKI) and IPTN North America, Inc. — a subsidiary of Indonesian aircraft firm PT Dirgantara Indonesia — have recently signed a memorandum of understanding (MoU) with American SHINE Medical Technologies to produce medical isotopes.

State-Owned Enterprises Minister Dahlan Iskan, who attended the signing ceremony at the Indonesian embassy in Washington on Monday, said that the agreement sought to anticipate the shortage of medical isotopes due to the shut down of nuclear facilities in Canada and Europe.

“The US has become increasingly concerned about how it can supply medical isotopes to its hospitals in the future because Canada will cease operations of its nuclear reactors by 2016,” he told The Jakarta Post on Wednesday evening, adding that the majority of the isotopes used in the US were imported from Canada.

He said that while details of the partnership would be discussed at a later date, he estimated the total investment in Indonesia would surpass Rp 1 trillion (US$83.57 million).

According to the MoU, INUKI, IPTN North America and SHINE would raise funds to build medical isotope factories in Janesville, Wisconsin and in Indonesia.

The medical isotopes produced by the factories are set to be sold in the US and Asia-Pacific markets.

Dahlan said that Indonesia had so far exported medical isotopes to Malaysia, Singapore and Bangladesh.

Canada recently shut down its nuclear power plant in Québec, leaving the country with five nuclear power plants and 22 nuclear power reactors, according to information posted on the Canadian Nuclear Safety Commission (CNSC) website.

There has been growing concern among Canadians living nuclear power reactors about safety, especially after a study by the Maurice and Central Quebec public health authority found an increase in tumors in people under 20 year olds living 13 kilometers away from a nuclear reactor, Canadian Broadcasting Corporation (CBC) reported.

Nuclear reactors are commonly utilized to generate electricity and produce neutrons. The neutrons can be later converted into isotopes for medical use.

Dahlan said that SHINE, however, had found a way to produce isotopes without using nuclear reactors, an innovation previously predicted to occur in 2050.

“Indonesia had previously planned to build a new nuclear reactor to replace the aging one in Serpong, Banten, to produce more medical isotopes. However, knowing that SHINE can do it without a nuclear reactor, we canceled the plan and signed this deal instead,” Dahlan said.

SHINE CEO Gregory Piefer said that US-based factories would be able to supply two-thirds of the US’ isotope demand, while Indonesian factories would serve the Asia-Pacific market.

“We are very excited to collaborate with Indonesia for two reasons. The first is because of the country’s strong technical background in the production of medical isotopes, and the second is its deep knowledge of the nuclear field,” he said, as quoted by Voice of America.

RI, US firms sign deal to produce medical isotopes | The Jakarta Post
 
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Indonesia is World's 4th Biggest Mobile Phone Consumer

TEMPO.CO, Jakarta - Indonesia is the world's fourth biggest consumer of mobile phone products. Indonesia produces six million units of local cell phones per year. Meanwhile, the year-to-date volume of mobile phone imports has reached more than 27 million units.

As of 2013, the Indonesia Ministry of Industry noted that the country has 15 factories that manufacture cellular phone components, including shells, keypads, batteries, chargers, and LCDs. These components are expected to be installed on local brand devices by 2016.

"The electronics and components industry is expected to grow by 10 percent in 2014, absorbing 378,000 people of new work force," Budi Darmadi, director general of the of High Technology-Based Industry, told reporters in Jakarta, July 7, 2014.

Indonesia is World's 4th Biggest Mobile Phone Consumer   | Economy & Business | Tempo.Co :: Indonesian News Portal
 
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Indonesia will have the largest convention building in SEA

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Meeting, incentive, conventions and exhibition or MICE business is growing rapidly in Indonesia. Ministry of Tourism stated that this sector has generated USD 1,99 billion and provide 262.000 new jobs. In response, Kompas Gramedia group through PT. Medialand International and Sinar Mas Land will build a new convention center, largest in the region. The new building named Indonesian Convention and Exhibition (ICE) will be located in the Bumi Serpong Damai (BSD) City, Tangerang.

The building - designed with a green concept costing at around USD 380 million in estimation - will be erected on 22 hectare land. It'll be consisting of 10 exhibition halls with area of 50.000 sq meters and an outdoor exhibition also with area of 50.000 sq meters.
There also convention hall facility and meeting room with 33 rooms which can accommodate 10.000 people, in-house food production, F&B outlet, parking area for 3000 vehicles, and 300 three stars hotel rooms.

ICE will be supported by infrastructure in the surrounding area. There are already established hospitals, shopping centers, golf & country clubs, restaurants, and hotels surrounding it. With that, ICE is expected to be a one-stop destination for business and excursion. With this building also, Indonesia is hoping to be a new destination for International MICE.

Wonderful Indonesia - Indonesia akan Miliki Gedung Konvensi Terbesar di Asia Tenggara

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Economy in brief: Garuda awarded for ‘world’s best cabin staff’
London | Business | Thu, July 17 2014

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LONDON: In line with efforts to improve service and transform its business under the Quantum Leap 2011-2015 program, flag carrier Garuda Indonesia was named the airline with the “World’s Best Cabin Staff” by Skytrax in London on Tuesday.

The award was presented by Skytrax CEO Edward Plaisted to Garuda Indonesia president director Emirsyah Satar, during the biggest airshow in the world, the Farnborough International Airshow 2014.

“I would certainly thank Skytrax and all of our loyal customers for recognizing the efforts we have made in our services […] and bestowing Garuda Indonesia with the World’s Best Cabin Staff 2014 award in this prominent ceremony,” Emirsyah said on Tuesday night.

The award was given to Garuda Indonesia based on a global customer satisfaction survey conducted by Skytrax of more than 18 million passengers between August 2013 and May 2014.

Skytrax is acknowledged as running one of the most comprehensive customer satisfaction surveys in the airline industry.

More than 105 different nationalities participated in the customer satisfaction survey, which covered more than 245 airlines, from large international airlines to small domestic carriers. The surveys measure standards across 41 key performance indicators of airline front-line product and service.

Aside from the best cabin award, Garuda also improved its position in 2014 10 World's Best Airlines list by jumped up a level into 7th from 8th position last year. Garuda previously won the title of the World’s Best Regional Airline and the World’s Best Economy Class in 2012 and 2013, respectively.

The carrier has been making a concerted effort to improve its service since 2009.

Economy in brief: Garuda awarded for ‘world’s best cabin staff’ | The Jakarta Post
 
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Sudan offers indonesian companies chance to invest in energy
Mon, July 14 2014 03:19 | 1777 Views

Mohammad Anthoni

Jakarta (ANTARA News) - Sudan has offered Indonesian businessmen the opportunity to invest in energy, considered one of the most attractive for investment, not least because of the possibilities in petroleum production and refining.

In announcing these opportunities, Ambassador of Sudan to Indonesia Abd Alrahim Alsiddig Mohamed Omer said here on Saturday, "But there are other areas to consider, such as thermal power generation, hydro-power generation and renewable resources, such as solar energy and wind power."

He made the remarks at a forum held by the Indonesian Muslim Journalists Association (PJMI).

PJMI, in collaboration with the Center for Southeast Asian Studies (CSEAS) Indonesia - State Islamic University Syarif Hidayatullah, held a Ramadan Dialogue Series entitled, "Current Economic and Social Development in Africa" with ambassadors from Africa, including Sudan.

Some officials from the Center of Policy Analysis and Development for Asia-Africa and African Regions, including Dr. Arisman, Executive Director of CSEAS Indonesia and Mohammad Anthoni, Chairman of PJMI, along with university students, attended the forum.

He said, further, that the governments National Energy Plan calls for expansion of the countrys power generation capacity.

In other words, Sudan needs more power plants. As such, the government has invited investors to set up independent power producers.

Indonesia state-owned oil and gas company Pertamina and private company Medco Energi International are conducting oil exploration in Sudan.

According to the Ambassador from Sudan, Sudan, the second largest country, occupying eight percent of the African continent, is the hub for investment.

Its immediate neighbours are Egypt, Libya, Chad, Central African Republic, the Republic of South Sudan, Ethiopia and Eritrea. It has a 875 kilometer coastline on the Red Sea, across from another neighbour, Saudi Arabia. With the huge oil reserves, investors in this sector are assured of significant profit margins.

"We also offer investors a wide range of opportunities in agriculture, agro-manufacturing, mining, livestock, tourism and other services, along with very attractive incentives, such as exemptions from business taxes ranging from 3-10 years, according to the size of the investment," he said, adding that the amended act of investment of 2013 is even more flexible and accepted by investors.

Ambassador Abd Alrahim said Indonesian private sectors need to be encouraged to do do business in Sudan.

"They can choose where to go, as Sudan is the hub for investment," he said.

The ambassador said that China, firstly, chose Sudan for investment and began to invest in the information technology sector in the 1990s.

"Now its companies have invested in many parts of Africa and Malaysia, also beginning in Sudan," he added.

Leading companies from China, Malaysia, Japan, Canada, Sweden, Australia, France, the United Kingdom, Russia, Turkey and many other countries are now actively engaged in diverse and profitable business ventures in Sudan, he added.

In todays contemporary world, Africa is seen as the continent that possesses enormous potentials, and Indonesia needs to position itself to take advantage of the opportunities afforded by African economies. For Indonesia, Africa is a non-traditional market.

Indonesian foreign policy towards Africa is consistent, and Indonesia is determined to continue building a new, constructive and deeper partnership with Africa.

The relation between Indonesia and Africa has been growing over the past years. In terms of trade, the Indonesia-Africas trade volume reached US$11.3 billion in 2012, more than twice as much as in 2009 (US$4.77 billion), while Indonesias export to Africa in 2012 increased by 46 percent, compares to the year 2011.

As opposed to Africas main trading partners, such as China (US$139.5 billion), USA (US$125.57 billion) and India (US$55.29 billion) in 2011, Indonesia lags far behind. This is the challenge for Indonesia to exert more efforts to tap the huge potential for mutually beneficial relations.

Sudan is now brimming with investment opportunities. They are everywhere and on every scale, rich in natural resources, and strategically located. The countrys natural resources also include large deposits of petroleum and minerals.

Trade relations between Indonesia and Sudan are part of Indonesias efforts for expanding its non-traditional export markets to Africa.

The main non-oil/gas export commodities of Indonesia to Sudan include writing paper, car batteries, cement, electronic accumulators and garments. Meanwhile, Indonesias main import commodities from Sudan include petroleum oil and cotton.

Bilateral relationsIndonesia and Sudan have enjoyed the steady growth of cordial and friendly relations since the two countries established diplomatic relations in 1960, when it marked the opening of the Indonesian embassy in Khartoum.

However, in 1967 the Indonesian embassy was closed because of financial restraints and re-opened several years later. The embassy of Sudan in Jakarta was officially opened in January 24, 1993.

As developing nations, Indonesia and Sudan collaborate in multilateral forums, such as the United Nations, the Non-Aligned Movement, G-77, the Organization of Islamic Conference and the South-South Cooperation.

Economic cooperation between Indonesia and Sudan was carried out on the agreements that were signed at the Joint Commission Meeting between Indonesia and Sudan in February 1988 in Khartoum.

The agreements covered Trade Agreement, Avoidance of Double Taxation, Promotion and Protection of Investments and other MOUs related to cooperation in the sectors of tourism, telecommunication, agriculture and fisheries.

The excellent relations are reflected in the increasing exchange of visits between dignitaries, including high-ranking government officials and parliamentarians, as well as the private sectors of the two countries.

"In the private sectors, the flow of traders from Sudan to Indonesia keeps increasing. And it is expected that the number of Indonesian business people to visit Sudan will also increase," predicted Ambassador Abd Alrahim.

(T.M016/INE/B003)
(T.M016/A/KR-BSR/B003)
Editor: Aditia Maruli


COPYRIGHT © 2014

Sudan offers indonesian companies chance to invest in energy - ANTARA News


Nigeria Recognizes, Appreciates Indonesia`s Giant Strides: Ambassador
Wed, July 9 2014 10:33 | 847 Views

Mohammad Anthoni

Jakarta (Antara News) - Nigeria recognizes and appreciates the giant strides made by Indonesia and is pleased that it is a fellow member of the MINT Group which will be among the economic giants of the future, Nigerian Ambassador to Indonesia Muhammad L. Sulaiman said.

"But having achieved strong political relations, Nigeria and Indonesia are now concentrating on the economic and trade sectors," he said here Tuesday.

Ambassador Sulaiman made the remarks when he met members of the Indonesian Muslim Journalists Association (PJMI) and university students in relation with the Ramadhan Dialogue Series with some African ambassadors to Indonesia.

The series are held by PJMI in collaboration with the Center for Southeast Asian Studies (CSEAS) Indonesia, State Islamic University of Syarif Hidayatulloh.

Ms Dewi Kejora from the Ministry of Foreign Affairs, DR. Arisman, Director Executive of CSEAS, and Mohammad Anthoni, the chairman of PJMI also attended the dialogue titled "Current Economic and Social Development in Africa".

Nigeria and Indonesia have been enjoying cordial relations since 1965 when Indonesia established its diplomatic mission in Lagos and Nigeria reciprocated by opening its embassy in Jakarta in 1976.

The two countries have also been cooperating both at bilateral and multilateral levels and supporting each others nominations at positions at various international organizations. In addition to their membership of United Nations, Nigeria and Indonesia are members of the D-8, Organization of Islamic Cooperation and MINT (Mexico, Indonesia, Nigeria and Turkey).

"The prospect for economic and trade relations between Nigeria and Indonesia is very good especially since the two countries have the commitment, zeal and determination to make it so," he said.

The volume of trade between the two countries increased from US$2.09 billion in 2011 to US$3.18 billion in 2012.

Indonesia is the largest economy in Southeast Asia and one of the emerging market economies of the world. The country is also a member of G-20 major economies and classified as a newly industrialized country. As a result of the boost in its economy, Indonesia has been exploring other regions in the world to invest. Africa and Nigeria in particular is one of those places.

Nigerias economy has been growing more than 6 percent and is the 26th largest in the world. After the recent re-basing of its GDP, Nigeria currently has the largest GDP of about $510 billion in Africa.

Ambassador Sulaiman said Nigeria is the gateway to West Africa and its capital, Abuja, is host of the sub-regions organization, the Economic Community of West Africa (ECOWAS).

Being the gateway to West Africa, companies operating in Nigeria have the benefit of expanding their businesses and reaching their customers to the whole West Africa and beyond, he said.



Investment from Indonesia

"It is therefore not surprising that Nigeria has become a destination for investment from Indonesia, with around 11 local firms like Indorama, Indofood, Wings, Mensa Group, Tolarama and Kalbe," he added.

They have invested in the food and beverage, petrochemicals, pharmaceuticals, detergent and soap.

"It is interesting to note that the largest Indomie factory in the world is located in Nigeria, not in Indonesia where it originated from," Ambassador Sulaiman said.

"In fact, Indomie is so popular in Nigeria that is gradually replacing our local food."

According to him, the largest Indomie factory is located in Nigeria is a testimony to the positive prospect for Indonesia-Nigeria economic and trade relations.

Although there is no Nigerian company currently operating in Indonesia, some of its airlines namely Max Air, Kabo Air, Hak Air and Silverback Africa have been servicing their aircrafts in Indonesia under maintenance agreement with Garuda.

"The fact that Garuda services some of our aircrafts is a testimony to the confidence Nigeria has in its professional capacity, for it is not everyone you will allow to service your aircraft because of the risks involved," he said.

He further said that as leading economies in their continents, Nigeria and Indonesia are expected to play a leading role in seeking solutions to the economic challenges of their sub-regions and continents.

"Our two countries therefore need to work together and complement each other, to push an agenda which puts bilateral as well as regional integration and infrastructural development at the forefront," he said.

"The embassy will continue to encourage the Nigerian private sector to invest in the Indonesian market and vice versa in order to promote bilateral and inter-continental trade. We have put in place measures in support of trade by Indonesian companies wishing to export their products to Nigeria." (*)
(T.M016/S012)
Editor: Fardah

COPYRIGHT © 2014

Nigeria Recognizes, Appreciates Indonesia`s Giant Strides: Ambassador - ANTARA News
 
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CT Calls on Investors Not to Panic Ahead of July 22
SATURDAY, 19 JULY, 2014 | 12:58 WIB

TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Chairul 'CT' Tanjung has called on investors not to panic ahead of the announcement of the presidential election results on July 22.

"No need to panic. If there is a problem, uprising or riot, our people will bear the consequences," CT said yesterday.

The democracy process in Indonesia has been improving as the presidential election on July 9 went smoothly and peacefully, he added, hoping that during the vote tally, each candidate’s side would refrain from causing riot and maintain peaceful condition.

CT believed that the announcement of the presidential election result would run safely and peacefully because one of the candidate pairs had pledged not to mobilize their supporter during the tally.

"We hope the other candidate would do the same so that KPU would be free from pressure," said the minister.

CT Calls on Investors Not to Panic Ahead of July 22 | Economy & Business | Tempo.Co :: Indonesian News Portal

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Steam-Fueled Power Plant Starts Operating in North Sumatra
SUNDAY, 20 JULY, 2014 | 01:14 WIB

TEMPO.CO, Jakarta - Minister of State-owned Enterprises Dahlan Iskan said that starting Sunday, 20 July 2014, the Pangkalan Susu steam-fueled power plant (PLTU) in North Sumatra can start generating electricity as the power plant has been able to produce steam in a sufficient amount.

"The turbine (in the power plant) can go through tryout and be used,” Dahlan said in a text message after his visit to Medan, Friday, July 18, 2014.

Dahlan added that if the turbine can operate by 3000rpm and if there are no problems, staring Saturday, July 19, 2014, the generator can be tried out.

"Once the turbine is considered to be in a good condition and there are no problems, it can then generate electricity,” he said.

Dahlan hoped that with the help from some experts from China, the target to have additional electricity supply from the power plant could be achieved.

"My target is that this power plant can produce additional supply of electricity by 200 MW. I’ve already called several experts from China to have a special meeting so we can achieve the target. And they say they are up to it,” Dahlan said.

With the capacity 200 megawatt (MW), the power plant is expected to address electricity supply deficit in Medan, North Sumatra.

Steam-Fueled Power Plant Starts Operating in North Sumatra | Economy & Business | Tempo.Co :: Indonesian News Portal
 
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What Indonesia’s new president will mean for shipping and infrastructure


There is much to do to develop infrastructure and boost investment in Indonesia and most analysts believe former Jakarta governor Joko Widodo, who is tipped to win Indonesia’s recent presidential elections, is the right man to do it.



From clearing out slums and reviving the long-stalled monorail and subway public transport projects, he has shown he is committed to improving infrastructure. Analysts are confident that he will deliver on his promises to build 2,000 km of new roads and 10 seaports.

He is expected to do this by cutting the oil subsidy and channelling the savings to infrastructure spending as well as by increased private investment. Indonesia is expected to spend around IDR285trn ($25bn) on oil subsidies in 2014, comprising more than 15% of its budget. Last year, subsidies cost around IDR240trn, outpacing planned infrastructure spending of IDR200trn.

There is much to do after years of neglect and Widodo has shown that he is willing to go down the private investment route with the monorail project being financed by the private sector, while the subway project is a public-private partnership backed by Japan.

The other key issue that investors particularly in the shipping and commodities industries will be anxiously looking for guidance on is Indonesia’s ban on ore exports.

According to Australia & New Zealand Banking Group this will probably remain in place and speculation that the curb may be relaxed if Widodo becomes the country’s next president is misplaced.

Although he is perceived as being more market-friendly, and there has been speculation that Widodo will lift or loosen the ban, this seems unlikely ANZ's analysts said.

They cited reasons such as the substantial upside to revenue, and the fact that the policy seems to be achieving its intended aim of encouraging investment in processing facilities in the six months that it's been in effect.

Furthermore, Widodo's running mate Jusuf Kalla has specifically said during the campaign that he would keep the ore export ban. His government would seek to boost exports of processed minerals rather than raw ores, according to a party policy document.

However, getting things done in Indonesia is never that simple. Coalition governments are common and the desired end result not as straightforward to achieve. Parliamentary elections in April saw Widodo’s Indonesian Democratic Party of Struggle (PDI-P) winning 19% of the vote, short of the 25% threshold and meaning that a coalition needed to be formed.

Some analysts have warned against placing too much hope in Widodo as the ideal of a charismatic, pro-Western, free-market liberalizer with the nationwide support base necessary to implement reforms decisively. As the lacklustre second term of his predecessor Susilo Bambang Yudhoyono showed, with his party not in a dominant position in parliament, legislative deadlock could block progress.

When it comes to the formulation of policy and practical outcomes, the necessity of coalition building to get bills through the Indonesian parliament means Indonesia’s political process is all about compromise, consensus, and especially behind the scenes horse trading.

This however provides little comfort to investors planning on future investments for business in Indonesia. Recent statements show the trend in port development has been to support the container trade of modern commerce. This is in line with Indonesia's aim of moving up the value chain and will be compatible with higher processing of ores and other raw materials.

Whether this will lead to the quick demise of some of the minor bulk trades that have thrived off Indonesia's commodities exports for so long is unclear. That there is a trend towards modernisation and all that means for the logistics business is clear. How fast it happens and how many bumps there will be along the way remains to be seen in the theatre that is Indonesian politics.


What Indonesia’s new president will mean for shipping and infrastructure
 
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Indonesia may regain title as ‘hottest’ investment destination in SE Asia.


Indonesia, the world’s most populous Muslim country, could regain its title as Southeast Asia’s investment hotspot after people chose the liberal, business-oriented and reform-minded Jakarta governor, Joko Widodo, as their next president.

In one of his first statements after elections, Widodo said his goal was to make Indonesia’s economy grow at a rate that the country has not experienced in over three decades since Asia’s financial crisis in the 1990s, which means he targets an annual GDP growth rate of more than 7%.

He also said he will not work with the usual cronies in the cabinet but select “appropriate” ministers for key resorts of finance, trade and foreign relations to put the country forward. Indonesia will open up far more to investments in infrastructure, manufacturing and human capital development, he added, to address the most urgent shortcomings the nation — and will also change the prevailing system of a corrupt bureaucracy and the “economic nationalism” that emerged under the rule of current president Susilo Bambang Yudhoyono over the past years. This has led to foreign investors, especially in the mining sector, becoming disgruntled and commodity exports shrinking. Widodo, inheriting a $900bn economy, will have to create clear legal frameworks in these crucial economic sectors to help the nation regain its title as a regional economic powerhouse in its quest to become one of the world’s top 15 economies in the coming decade.

Widodo is expected to be inaugurated on October 20, 2014, when Yudhoyono’s second term ends.

For the GCC, a region increasingly looking eastward to secure alternative trade and investment relations, Indonesia’s new presidency with its investment-friendly climate can mean big opportunities. Bilateral trade between the GCC and Indonesia was well above $10bn annually in the past years, whereby some three quarters of Indonesia’s imports from the GCC are oil and gas, and Indonesia delivers palm oil, wood and paper, electronic equipment, rubber, textiles and vehicles in turn.

The nation has a lot of backlog demand in the fields of infrastructure, energy generation and distribution, building of industrial zones with roads, airports and ports, manufacturing facilities, food security, education, as well as and banking and finance, particularly Islamic finance.

The initial conditions — economy-wise — seem to be favourable. Since Widodo’s election win, Indonesian stocks have advanced and the country’s ailing currency, the rupiah, has strengthened. Most analysts said they were confident in what they heard from Widodo, but also mentioned that the huge country with is 247mn population, its uneven distribution of wealth, its core economy — apart from mining — being centred basically on one island, Java, its social and religious diversity, its large number of poor and low-income families, its inadequately educated workforce and its large number of land disputes with farmers and the indigenous population on more remote islands — has enough issues to be worked on. Adding to that, Widodo will face the difficult task to reduce public subsidies on fuel and electricity, a highly sensitive socio-political matter in Indonesia.

However, Widodo said he is confident to reach a GDP growth above 7% for Indonesia in no more than two years, a statement symbolic for his preference of action over talk, probably an attitude that gained him a fair share of his votes.
Indonesia may regain title as ‘hottest’ investment destinati..

yes, Indonesia is Hot. lol
 
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Rising Foreign Reserves Mean Money Well Kept at Bank Indonesia
Indonomics

By Jakarta Globe on 05:25 pm Feb 17, 2014
Category Business, Economy, Indonomics
Tags: Bank Indonesia, international reserves
[Updated at 5:25 p.m. on Monday, Feb. 17, 2014]

Indonesia’s central bank recently reported that its foreign exchange reserves had risen to the $100 billion mark, about a quarter from a record amount.

A pick-up in reserves suggests that Bank Indonesia hasn’t been making significant interventions in the foreign-exchange market to prop up the rupiah against the US dollar. And that may be good news as it’s money well kept in the central bank’s coffers.

January’s international reserves of $100.65 billion, which represents about six months’ worth of imports, comes as Indonesia posted its third straight monthly surplus in December. The rupiah’s 26 percent depreciation against the dollar last year, has made the nation’s exports more competitive as a stronger dollar fetches more rupiah.

Still, all countries can’t be running surpluses. As developed nations’ economies recover further, they will be posting trade surpluses, and developing nations are likely to be on the losing end with deficits. That’s starting to show in other nations such as Malaysia, as its trade surplus declines because of weakening exports.

Indonesia had learned an important and costly lesson from constant intervention of the rupiah, in the late 1990s under a managed floating foreign exchange rate system, in which the central bank would try to control the currency by buying rupiah and selling dollars.

In the 1997 financial crisis, the central bank had used almost all of its foreign reserves to prop up the rupiah. The move proved futile as the rupiah traded as high as 15,000 to the dollar. The government eventually allowed the rupiah to become a free-floating currency and asked for a bailout from the International Monetary Fund.

While Indonesia no longer faces the high burden of dollar-denominated loans that caused the deficit in the current account — which is the broadest measure of trade — to widen during the 1990s, a big part of today’s current account deficit is due to rising imports of oil products, namely gasoline and diesel. The government was forced to raised subsidized fuel prices by an average 33 percent in June to ease the burden on the state budget, but it remains to be seen whether the higher fuel prices will curb demand.

Indonesia is stuck in a quandary, as exports remain weak because of nascent recoveries in Europe and the United States, and a weak rupee in India is causing companies there to curve their purchases of goods such as crude palm oil and thermal coal. The Jan. 12 ban on mineral ore exports are likely to weigh on trade, and that could push the nation back to deficit.

Indonesia’s reserves had also been falling last year, slipping as low as $92.7 billion in July, as international investors — spooked by the US Federal Reserve paring back its monthly stimulus program as the US economy picks up — sold off their holdings of stocks and bonds in favor of dollar assets.

Sales of dollar-denominated bonds, though, have been helping to boost the country’s reserves.

The country, which was raised to investment grade status by Moody’s Investors Service and Fitch Ratings two years ago, raised $4 billion from a sale of dollar-denominated bonds in January. The country issued $2 billion of debt due in 10 years to yield 5.95 percent and $2 billion of securities maturing in 30 years at 6.85 percent, the finance ministry’s debt management office said last month.

As long as Indonesia’s central bank keeps its reserves high, it puts the nation on stronger financial footing that could help it weather against future shocks to the system.
Rising Foreign Reserves Mean Money Well Kept at Bank Indonesia | The Jakarta Globe

Kalbe Farma’s First-Half Profit Rises 8%
By Basten Gokkon on 08:31 pm Jul 25, 2014
Category Business, Corporate News
Tags: Corporate Earnings, Kalbe Farma
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Workers of PT Kalbe Farma factory sort out medicine tablets in Cikarang, Indonesia West Java province August 5, 2013. (Reuters Photo)

Jakarta. Kalbe Farma, Indonesia’s largest listed pharmaceutical firm, reported higher profit in the first semester this year on rising sales.

Kalbe Farma said net income rose 7.7 percent to Rp 993 billion ($86 million) in the January-June period from the same period in 2013, according to the company’s financial statement published on Indonesia Stock Exchange (IDX) on Friday.

“In the face of a volatile macro environment and changing market conditions, we strive to sustain growth and a stable margin,” said Kalbe finance director and corporate secretary Vidjongtius in a separate statement on Friday.

Net sales at the pharmaceutical firm climbed 12.9 percent to Rp 8.38 trillion in the first half this year from Rp 7.42 trillion a year earlier. Domestic sales made up 95 percent of the company’s total sales, while the remainder was contributed by overseas purchases.

Going forward, Kalbe said in May that it had plans to develop its presence in three countries in Southeast Asia, including Myanmar, Vietnam and the Philippines, over the next two years to take advantage of the Association of Southeast Asian Nations (Asean) Economic Community, which officially kicks off next year.

Kalbe said it would have to set aside at least Rp 200 billion to take over a company in one of its target countries and spend up to Rp 20 billion for operational and marketing activities. The firm expects expansion to boost its exports to 10 percent by 2020 from the current 5 percent.

Kalbe cut its revenue growth target to between 11 percent and 13 percent this year, from its original aim of 14 percent and 16 percent, on lower-than-expected demand in the country.

Profit growth is also forecast to be on par with its revenue target.

Kalbe’s rival, state-owned pharmaceutical firm Kimia Farma, reported a 65 percent year-on-year increase in profit to Rp 70.6 billion in the first six half this year.

Kimia Farma’s six-month net sales grew 8.6 percent to Rp 1.89 trillion this year from Rp 1.74 trillion in 2013, according to its financial statement.

This year, Kimia Farma has earmarked some Rp 600 billion in capital expenditure, but expects net income to remain flat — despite the firm’s aim for a 15th percent rise in revenue.

Shares of Kalbe fell 1.1 percent to Rp 1,730 while Kimia Farma’s shares grew 3 percent to Rp 1,230 on Friday.

Kalbe Farma’s First-Half Profit Rises 8% | The Jakarta Globe
 
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Indonesia, Freeport Agree on New Mining Terms


JAKARTA, Indonesia—Indonesia has cut a deal with Freeport McMoRan Inc. on export taxes and royalties, allowing the U.S. mining giant to resume copper-concentrate exports after a six-month stalemate.

The Phoenix-based company, one of the world's biggest copper producers, mines almost a fifth of its copper in Indonesia and controls Grasberg, the country's largest mine. Indonesia is a major producer of copper, tin and bauxite, and ranks as the world's fourth largest exporter of copper, an essential modern metal used to make pipes and wires.

Under the deal announced Friday, Freeport's Indonesia unit will pay higher royalties, help build a smelter and begin paying taxes on copper-concentrate exports, the government said. Copper concentrate, which looks like heavy sand, is what is generated after the rock is mined, crushed and milled. It is easy to ship and is the main raw material for copper smelters.

Freeport also agreed to "provisions" to increase the stake in the local unit held by the Indonesian government and nationals to 30% from the current 9.36%. Freeport currently controls a 90.64% stake.

The deal represents a victory for Indonesia, which has tried to gain greater control of its vast natural resources and milk more in taxes and royalty payments from foreign miners and investors. Freeport Chairman James "Jim Bob" Moffett said the agreement would "enable continuing benefits of the Grasberg operations for the government, the local communities in Papua, our large Indonesian workforce and our shareholders."

In January, the government imposed an export ban aimed at keeping lucrative refining work within the country.

That was bad news for Freeport and Denver-based Newmont Mining Corp. NEM +1.16% , the other big Western miner in the country. Large Western mining companies say that so-called resource nationalism, such as export bans and tax increases, are one of their biggest challenges. Without their expertise, they say, countries like Indonesia and the Democratic Republic of Congo wouldn't have profitable job-creating mines.

Newmont hasn't yet agreed to an export deal and this month sought arbitration with the U.S.-based International Center for the Settlement of Investment to resolve its standoff with Indonesia.

"We are encouraged by the news about Freeport," spokesman Omar Jabara said Friday. Newmont, he added, "has been holding ongoing meetings with the government to define the outlines of a separate memorandum of understanding" that would allow the company's Batu Hijau copper and gold mine to resume operations after the company shut it down in early June because of the export ban.

On Friday, Director General of Coal and Mineral Resources Sukhyar said once the deal with Freeport is signed the company may start exporting copper concentrate within two weeks. By the end of the year, Indonesia's total copper exports are expected to reach 756,300 tons with an estimated value of $1.56 billion, said Mr. Sukhyar, who uses a single name. That is about half of last year's exports of 1.45 million tons.

Freeport doesn't disclose exports, but it says in 2013 it produced roughly 400,000 tons of copper in Indonesia, up 24% from 2012. The company said its most recent annual report that "sales from Indonesia mining are expected to increase in 2014 through 2016" as it "gains access to higher grade ore."

Freeport had initially refused to renegotiate its current contract, which doesn't require it to pay an export tax and wasn't due to expire until 2021. However, it stood to lose a huge investment in the country if it refused to sit down with the government.

Freeport has invested billions of dollars since the early 1960s in the eastern province of Papua to develop Grasberg, among the three biggest gold and copper mines on the planet.

Mr. Sukhyar said Freeport will provide a $115 million assurance bond to build a smelter, with duties on its exports declining to zero from 7.5% as the facility progresses. Meanwhile, its royalty payments will rise to 4% from 3.5% for copper and to 3.75% from 1% for gold.

In addition to the ban on ore exports, the government in January instituted export duties on mineral concentrates of copper, iron, zinc, and manganese. The duties, which begin at 20% and 25%, would rise to 60% before a complete ban on concentrate exports is imposed in 2017.

The goal is to force mining companies to build smelters and refine their minerals within the country to add value to the economy.

Companies mining in Indonesia typically smelt a relatively small part of their mineral production in the country. They say it is uneconomical and that they can't compete with smelters in China and elsewhere in the region.

In the face of their opposition to the new export taxes, the government said it would consider lowering the rates for companies that commit funds for new smelters.

The administration of President Susilo Bambang Yudhoyono has left it to a newly elected government to decide whether to extend Freeport's contract beyond 2021. President-elect Joko Widodo, who is scheduled to start his five-year term in October, said on Friday that his government and Freeport will discuss the possibility of extending the newly revised contract in 2019.

Any new mining contract extension could be granted "only two years before they are due," Mr. Widodo said, before the signing of the new mining contract terms. He declined to elaborate.

Freeport Indonesia Chief Executive Rozik Soetjipto said recently the company plans to invest $7.1 billion in the Grasberg Mine if the government extends its contract by 20 years. This is on top of $9.8 billion it plans to spend between 2012 and 2021.


http://online.wsj.com/articles/freeport-indonesia-unveils-new-mining-contract-terms-1406289397
 
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July inflation below one percent: Economist
Rabu, 30 Juli 2014 20:46 WIB | 783 Views
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Illustration of food as commodity inflation determinants. (ANTARA/Wahyu Putro A.)

Cirebon, West Java (ANTARA News) - The Head of Bank Mandiri Economists, Destry Damayanti, has predicted that inflation rate in July will remain below one percent, with 0.75 percent (month-to-month) and the yearly inflation 4.6 percent (year-on-year).

Destry said inflation was annually impacted by price hike during fasting month Ramadhan and Eid Holidays, but it was well-controlled this year.

Market demands had also increased as a result of school year and presidential momentum in 2014.

"I believe the government has been successful enough in controlling price hike, especially food," Destry noted.

Destry pointed out that the collapse of Comal Bridge in Pemalang District, Central Java, had caused the logistic cost increase, which has had an impact on price hike.

"That is not significant however, as the government has provided a quick response to stabilize market price," she said.

The low inflation in July, Destry added, was also triggered by gold price drop.

The gold bar price of PT Aneka Tambang, a state-owned mining company, in few days ahead of Eid dropped from Rp529 thousand to Rp528 thousand per gram, as well as its buyback, which was Rp468 thousand per gram, Rp1,000 lower than the same period last year.

Destry added that the strengthened rate of rupiah to US dollar had also curbed inflation in July.

"We have been helped by rupiah appreciation throughout July," she said.

However, the second time increase of electricity fare for industries in early July, Destry noted, might cause an increase in inflation.

"As food price is under control, inflation probably will remain below one percent," she said.

The inflation rate in June 2014 was 0.43 percent compared with the Eid Holidays in previous years, which had always been up to one percent, but this years inflation is low.

The inflation on the Eid Holidays in August 2013, for example, had reached 1.12 percent.

(Reported by Indra Arief Pribadi/translated and edited by Azi Fitriyanti/INE/KR-BSR/A014)

July inflation below one percent: Economist - ANTARA News


Ancol Dreamland Jakarta attracts 78 thousand holidaymakers
Selasa, 29 Juli 2014 17:54 WIB | 950 Views
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Holiday at Ancol Beach, Jakarta. (ANTARA/Pradita Utama)

Jakarta (ANTARA News) - The Ancol Dreamland Recreational Center in North Jakarta was visited by about 78 thousand holidaymakers on the second day of the post-fasting Idul Fitri or Lebaran holidays on Tuesday.

The Ancol Dreamland Communication Manager Metty Yan Harahap has forecast on Tuesday that the number will increase by evening.

"We predict that the number will continue to increase in the evening because the data we have revealed was recorded till 12 noon," Matty informed ANTARA News.

She pointed out that the number of visitors will peak on Wednesday and Thursday, but the Ancol Dreamland Recreational Center has made the necessary preparations to handle the flow of visitors until a week after the Monday-Tuesday Idul Fitri D-Day.

In the meantime, some 40 thousand visitors are expected to throng the Beautiful Indonesia in Miniature Park (TMII), also popularly known as Taman Mini, on Tuesday, stated TMII Information Center Manager Suryandoro.

"By 12 noon today, some 25 thousand people had visited the park, and by 2 p.m., the number had increased to 30 thousand visitors. We predict that the visitor count will reach between 35 and 40 thousand," Suryandoro claimed here on Tuesday.

He added that the figure showed a 25 percent increase as compared to those visiting TMII on the first day of the post-fasting month of Idul Fitri or Lebaran on Monday.

A total of 20,159 people visited the East Jakartas park on Monday (July 28).

Surandoro expressed hope that the number of visitors this year will increase by 10 percent from that in 2013, which was 350 thousand visitors.

The TMII spokesman earlier noted that the management has set a target to attract 400 thousand visitors during the 2014 Lebaran holidays.

"The number of visitors to Taman Mini during this years Lebaran holiday season is forecast to increase by 10 percent as compared to last year," Suryandoro remarked.

He noted that a total of 350 thousand people visited Taman Mini during the Lebaran holidays last year, and the number during the same period this year is expected to reach at least 400 thousand.

Suryandoro expressed optimism that the target of 400 thousand visitors can be achieved as the Lebaran festivity coincides with the school holiday.

"The school holiday, which is in conjunction with the Lebaran festivity, will contribute to an increase in the number of visitors to Taman Mini," he pointed out.

According to Suryandoro, during the Lebaran holiday season this year, Taman Mini will be open from 7 a.m. to 10 p.m. to attract as many visitors as possible.

He noted that particularly from July 28 to August 10, 2014, the entry ticket fare to Taman Mini will be raised from Rp10 thousand to Rp12 thousand per person.

(Uu.A014/INE/KR-BSR/H-YH)
Ancol Dreamland Jakarta attracts 78 thousand holidaymakers - ANTARA News

Investors awaiting final decision on presidential election
Selasa, 29 Juli 2014 11:51 WIB | 916 Views
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The landscape of Jakarta from the height. (ANTARA FOTO/Andika Wahyu)

Semarang, Central Java (ANTARA News) - Share investors are awaiting the final decision of the Constitutional Court on the result of the July 9 presidential election , an analyst said.

Investors are spending the long Idul Fitri holidays waiting for the decision to be announced to create political certainty, a branch manager of securities company PT Danareksa Sekuritas in Semarang Melcy RS Makarawung said on Tuesday.

Prabowo, the losing candidate contesting the election had filed a lawsuit with the Constitutional Court against the decision of the Election Commission.

Prabowo accused the Commission of being unfair saying there were massive rigging of the election in favor of rival candidate Joko Widodo.

Melcy said the share prices tend to decline in August because of the start of academic year especially with the Islamic holy day celebrations .

However, he described the market trend as positive and foreign investors who make up 60-65 percent of the investors in the domestic market believed the final result of the election would be as expected by the market.

"The investors believe the condition of political uncertainty would soon be over," he said

He said the composition of the cabinet would also has its impact on the market trend as the composition would determine the government policy.

"Among a number of crucial issues that need serious addressing by the new government include the plan to raise the electric tariff and price of subsidized oil fuels.

"Investment would be safe if the impact of the price hike could be controlled." he said.

Investors awaiting final decision on presidential election - ANTARA News

Fish consumption rises by 60 pct during fasting month
Selasa, 29 Juli 2014 20:26 WIB | 704 Views
Pewarta: Andi Abdussalam
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Photo document of traditional fish market at Banda Aceh, Aceh. (ANTARA/Ampelsa)

Jakarta (ANTARA News) - As fish is one of the staple food items, the demand for processed fish in the country has increased drastically to about 60 percent during the fasting month.

"During the fasting month and in the face of the Lebaran festivities this year, the demand for processed fish products rose by about 50 to 60 percent," Director General for Processing and Marketing of Fishery Products of the Maritime and Fisheries Affairs Ministry (KKP) Saut Hutagalung remarked on Tuesday.

However, despite the increase in the demand for processed fishery products, there was no undue escalation in prices as they were under control and the increase only ranged between 20 and 30 percent.

Indonesia, which had a per capita fish consumption of 30.4 kilograms per annum in 2010 and has begun viewing its maritime sector as a key source of economic gain, has set a fish production target of about 21 million tons this year.

KKP spokesman Yulistyo Mudho noted that the countrys per capita fish consumption in 2010 was recorded at 30.47 kilograms per annum, an increase from 29.08 kilograms noted in 2009.

"The increase in fish consumption helped to improve the peoples intelligence levels and utilize the national fish production, which is set to reach 22.39 million tons in 2014," Mudho stated several years ago.

Even though the per capita fish consumption of its people is still relatively low, yet during the recently concluded fasting month, Indonesia saw increasing demand for processed fish.

According to the director general, processed fishery products that were increasingly in demand by consumers were otak-otak or fish paste, smoked and deboned bandeng (milk fish), and fish meat balls.

The director general stated that on the basis of observation across modern retail markets, processed fish products became a prima donna commodity purchased by consumers in the face of the Lebaran holidays.

"Basically, it is the same as two to three years ago, when milk fish was part of the menu served in family kitchens," he added.

Fortunately, there was no price turmoil during the fasting month and in the run up to the Idul Fitri or Lebaran festivities.

"During the fasting month and in the lead-up to the Idul Fitri holidays, fish stocks remained adequate with prices relatively under control," asserted Hutagalung on Tuesday.

The fish stocks remained adequate in several big cities such as the capital city of Jakarta, South Sulawesi provincial capital of Makassar, East Java provincial capital of Surabaya, Medan of North Sumatra, Bandung of West Java, Semarang of Central Java, Yogyakarta, and Padang of West Sumatra.

The director general admitted to a decline in saltwater fish stocks in line with reduced activities of fishermen and traders at the retail markets such as in Muara Baru in Jakarta and the Caringin Market in Bandung.

He added that most of the fish stocks or about 65 percent at the Caringin Market were saltwater fish while the remaining 35 percent were freshwater fish.

The fish supplies to the Ciroyom Market meanwhile accounted for about 70 to 80 tons per day, most of which were shrimps and milk fish.

Milk fish is one of the varieties of saltwater fish, which has been in high demand. Makassar, the provincial capital of South Sulawesi, is the main supplier of milk fish. More than 140 tons of milk fish were dispatched from Makassar to East Java, from where they were then supplied to various markets in Java, including Jakarta.

The main supply of ready-to-serve processed milk fish comes from Sidoarjo in East Java and Semarang in Central Java. It is then supplied to Jakarta, Bandung (West Java), Bogor (West Java), Malang and Surabaya in East Java.

Boiled fish supplied to the markets in the run up to Lebaran came from the cities of Rembang, Pati, Juwana, Prigi, Pelabuhanratu, Sukabumi, Bekasi, Tangerang, Serang, and Bogor.

"The markets are also filled with supplies of various other types of processed products such as fish dumplings, tekwan fish, milk fish sausages, smoked catfish, shredded fish, and milk fish satay (which is locally produced by small scale businesses). Of course, fish pempek is also abundant in the market," he added.

In the meantime, Jakartas fish requirement reached about 600 tons per day, which is met with supplies from the Muara Angke Market. The Muara Baru Market contributes 350 tons while the remaining 250 tons are supplied by the Seribu Islands. Jakartas freshwater fish requirement is met with supplies from West Java.

Hutagalung pointed out that the production of processed fish has drastically increased over the past 3 to 4 years.

He emphasized that the increase in the demand for fish indicated the growing awareness among the people on the importance of fish consumption. Fish is a main source of animal protein. Fish contributes some 58 percent of the total animal protein needs of the people. In villages, fish even contributed about 70 percent of the required animal protein.

Hutagalung earlier stated that the fishery sector was important to maintain food sovereignty in Indonesia, which has a large population reaching 250 million.

"Fishery is a main pillar for the Indonesian peoples nutritional resilience," he added.
(Uu.A014/INE/KR-BSR/H-YH)

Fish consumption rises by 60 pct during fasting month - ANTARA News

30 kilos in 2010, i expect it has reached 40 kilos this year

Hotel occupancy rate in Bali rising sharply
Sabtu, 26 Juli 2014 17:09 WIB | 1.345 Views
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Photo document of holiday in Bali. (ANTARA/Muhammad Iqbal)

Denpasar, Bali (ANTARA News) - The hotel occupancy rate in Bali is predicted to rise at an average 70 percent during the current long post-fasting holiday.

"We are predicting it will increase up to 70 percent," deputy chairman of the Bali chapter of the Indonesia Hotel and Restaurant Association (PHRI), I Gusti Ngurah Rai Surya Wijaya, said here on Saturday.

The long holiday will contribute positively to the tourism industry in the island especially in tourist destination regions such as Denpasar, Kuta, Nusa Dua and Gianyar, he said.

"The long holiday builds up a good momentum especially for hotels in the tourist destination regions," he said.

Despite the holiday season the hotel room rates would not be raised because there are a lot of hotels on the island and that has made competition very tight, he said.

Domestic tourists would dominate visitors to the island this time, although a lot of tourists from Australia and several other foreign countries would also be here, he said.

Millions of Indonesians have been traveling to their home villages and towns to celebrate the Islamic post-fasting holiday of Lebaran with their friends and families.

Bali, meanwhile, is one of the favorite destinations for a holiday.

(Reporting by Dewa Wiguna/Uu.H-YH/INE/KR-BSR/A014)

Hotel occupancy rate in Bali rising sharply - ANTARA News


Transaction in Priok seaport should be in rupiah
Senin, 21 Juli 2014 23:12 WIB | 1.471 Views
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Tanjung Priok seaport (ANTARA FOTO/M Agung Rajasa)

Jakarta (ANTARA News) - Coordinating Minister for Economic Affairs Chairul Tanjung has reminded all parties that every transaction in Jakartas Tanjung Priok seaport should be conducted using rupiah currency in accordance with the Law No. 7 of 2011.

The senior minister said here on Monday that his side in coordination with the national police will impose strict legal sanctions on violators.

"If someone wishes to conduct a transaction, it should be done using rupiah. I will ask the criminal and detective agency of the national police to enact the legal action," he said.

Earlier, the government had discovered that various financial transactions in Tanjung Priok, and some other ports, were being done using US dollar.

The US dollar is used in the seaports because financial or commercial transactions are conducted with international business partners from foreign countries.

"However (the use of rupiah) is a mandate of the law and must be obeyed," the minister added.

Reported by Indra Arief Pribadi

Transaction in Priok seaport should be in rupiah - ANTARA News
 
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30 percent illegal fishing occurs in Indonesia
Jumat, 18 Juli 2014 20:16 WIB | 1.194 Views
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Illegal fishing (ANTARA/Fanny Octavianus)

Jakarta (ANTARA News) - Chairman of the Board of Trustees of the Unitary Indonesian Traditional Fishermen (KNTI) M. Rizal Damanik is of the viewpoint that 30 percent losses from illegal fishing in the world have occurred in Indonesia.

"So, according to the report of the FAO Fisheries and Aquaculture Department, illegal fishing has caused losses worth US$23 billion. About 30 percent of illegal fishing in the world occurred in Indonesia," Damanik noted here on Friday.

Rizal reported that illegal fishing in Indonesia has caused Rp100 trillion worth of losses to the state each year.

"The exploitation of Indonesian marine resources is a tremendous loss to the state," he noted.

Because of these losses, he pointed out that the image of Indonesias fisheries and maritime sector has become tainted because Indonesia has been tolerant enough to allow illegal fishing practices to flourish.

"We then show the world that our government does not encourage fisheries resources due to illegal fishing practices that disturb the sustainable management of marine resources," Rizal emphasized.

He remarked that the illegal fishing trend will have negative implications on Indonesia considering the fact that fisheries are one of the key food resources of the country.

Moreover, he stated that the next government will face three challenges in the maritime sector. The first challenge is coordinating the state budget for the maritime sector by encouraging the welfare of fishermen and marine economic sovereignty.

"The second is sectoral management of natural resources that causes losses in marine and fisheries. The role and functions of the maritime sector is only calculated on the basis of economic contribution and land area as an indicator of mobilization of the state resources," he added.

The third challenge faced is the lack of participation by fishing organizations, farmers, and coastal people in drafting a public policy.
(A063)

W. Sumatra establishes cooperation with Morocco`s Fes-Boulemane
Minggu, 1 Juni 2014 12:37 WIB | 4.570 Views
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Ambassador Tosari Widjaja. (ANTARA/Widodo S Jusuf)

London (ANTARA News) - West Sumatra province of Indonesia and Moroccos Fes-Boulemane have signed a Letter of Intent (LOI) to further strengthen the existing Indonesia-Morocco cooperation.

The West Sumatra province was represented by the Regional Government Bureau Chief Syafrizal while the Fes-Boulemane was represented by Regional Council President of Fes-Boulemane Mohamed Douiri.

"The letter of intent was signed at the office of Fest-Boulemane governor," the Third Secretary on Information, Social and Cultural Affairs of the Indonesian Embassy in Rabat, Suparman Hasibuan, said here on Sunday.

The signing ceremony was attended by delegates from West Sumatra, Fes-Boulemane regional government officials, mass media representatives, Fes-Boulemane Governor Mohamed Dardouri and Indonesian Ambassador to Morocco Tosari Widjaja.

In the LOI, both sides agreed to take follow up steps to create a Sister Province cooperation by concluding an Memorandum of Understanding which covers various fields of cooperation such as economy, trade, tourism and education.

Ambassador Tosari Widjaja said that West Sumatra and Fes-Boulemane have similarities in the backgrounds of their history, social and culture so that the Indonesian Embassy in Rabat was encouraged to facilitate the two regions to establish a sister province cooperation.

Fes-Boulemane is the third largest region in Morocco with a population of about one million. It has a number of historic building sites which have been recognized by the UNESCO as one of the world heritage sites.
(Uu.A014)

W. Sumatra establishes cooperation with Morocco`s Fes-Boulemane - ANTARA News

Indonesia still needs 191,400 researchers
Rabu, 23 April 2014 16:15 WIB | 7.427 Views
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Lukman Hakim. (ANTARA/Widodo S. Jusuf)

Cibinong, West Java (ANTARA News) - Indonesia, with a population of more than 240 million, still needs around 191,400 researchers until 2030, Chief of the Indonesian Institute of Sciences (LIPI) Lukman Hakim stated.

"The number of researchers is still small, and so is the amount of research funds. Right now, Indonesia has around 8.6 thousand researchers, which is far from the ideal number of 200 thousand," he noted, after addressing a meeting on the dissemination of LIPIs research on efficient technology at the institutes biological research center here on Wednesday.

Based on the World Bank standard, the ideal number of researchers is four thousand to five thousand for every one million, he stated, adding that the number of national researchers is far from the international standard.

"What is clear is that Indonesia needs a breakthrough from the future president to promote the research and scientific world," he emphasized.

He underscored the need for the country to promote the development ofscience and technology including researches now that the present economic growth is based on consumption.

"This must be changed so that our scientific and technological capability will support the economic growth. Indonesia is rich in natural resources but most of them are exported in unprocessed form. This must be changed to give added value to our commodities," he explained.

LIPI is also making an effort to encourage young researchers and innovators through different contests, he stated.

(Reporting by Virna P Setyorini/INE/KR-BSR/O001)

Indonesia still needs 191,400 researchers - ANTARA News

****, how we can boost the number? it seemed like daydreaming targets to me, 191.400, we seriously lacks all of the infrastructure and political will to achieve those kind of target

@Indos @nufix @MarveL @Jakartans@PkDef @MacanJawa

LIPI to deploy special ships for deep-sea research
Rabu, 14 Mei 2014 14:16 WIB | 6.007 Views

Ambon, Maluku (ANTARA News) - The Indonesian Institute of Science (LIPI) will use research vessels equipped with multibeam echosounders capable of reaching a depth of six thousand meters for exploring the eastern Indonesian waters.

The research vessels also had oceanographic technologies to measure temperature, salinity, and chemical parameters at a minimal depth of five thousand meters, Augy Syagalaitua, the head of LIPIs Ambon Marine Biota Conservation Office, noted here on Wednesday.

The price of one well-equipped research vessel is about Rp250 billion, he remarked.

Long-range research cruises were needed because many Exclusive Economic Zone (ZEE) locations were not yet studied or explored, he added.

"We will also prepare the necessary human resources for the ZEE research for the next 10 to 20 years," he affirmed.

LIPI Chairman Lukman Hakim earlier stated that his institute needed more research vessels for sophisticated deep-sea research, following the status upgrade of the Ambon Marine Biota Conservation Office to LIPIs Deep-sea Research Center.

Indonesia needed to build research vessels of international standards, he reiterated.

According to Chairman of the LIPIs Oceanographic Research Center Zainal Arifin, such sophisticated research vessels should be available within the next five years.

Currently, LIPI has two modern research vessels: Baruna Jaya VII built by the Indonesian ship building manufacturer, PT PAL and Baruna Jaya VIII made in Norway.

V002 (F001/INE)
EDITED BY INE
(T.SYS/B/KR-BSR/F001)

LIPI to deploy special ships for deep-sea research - ANTARA News
 
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NOAA18 satellite detects 98 hotspots in Sumatra
Rabu, 30 Juli 2014 20:05 WIB | 412 Views
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Photo document of NOAA 18 satellite. (weather.gov.sg)

Pekanbaru, Riau (ANTARA News) - The United States NOAA18 satellite operated by Singapore has detected 98 hotspots in Sumatra on Tuesday, of which 37 were in Riau province, according to an official from the Regional Disaster Mitigation Agency (BPBD).

"The number of hotspots on Tuesday had declined from 133 recorded on the previous day in Sumatra, of which 85 were found in Riau Province," BPBD Head Said Saqlul Amri informed the press on Wednesday.

The 37 hotspots detected on Wednesday were scattered across several districts and municipalities such as Indragiri Hulu and Pelalawan where 9 hotspots were respectively found.

The BPBD also revealed that the districts of Bengkalis had 7 hotspots, Dumai City 3 hotspots, Rokan Hulu Siak and Kampar respectively 2, Rokan Hilir 1, Indragiri Hilir and Kuantan Sengigi respectively 1 hotspot.

However, the Modis Terra and Aqua satellites at 5 p.m. local time recorded only 18 hotspots in Riau Province. Of the 18, eight were found in Pelalawan, 3 in Kuatan Singingi and Roak Hilir, and 2 in Indragiri Hulu.

The other two hotspots were respectively found in the districts of Kampar and Indragiri Hilir.

In 2014, forest fires have destroyed 25 thousand hectares of forest and land, which resulted in the contamination of air over the Riau province.

Riau Governor Annas Maamun had previously called on all district heads and mayors of regions that suffered from forest fires to take anticipatory steps.

In connection with forest fire cases, the Riau police has arrested and named 183 people who had allegedly committed crimes of burning bushes or forests.

A total of 116 suspects were nabbed while conducting forest crime activities during the January-March period while 67 others were named suspects during the period between April 5 and July 10.

"The number of suspects could still increase because the on-field team is still on the lookout for criminals responsible for new forest fires," stated spokesman of Riau Police Adjunct Senior Commissioner Guntur Aryo Tejo.

In the meantime, the Terra and Aqua Satellites detected 417 hotspots in Riau Province on Monday last week, indicating an increase in widespread forest fires in the province.

According to Head of Data and Information Division of the National Disaster Mitigation Agency (BNPB) Agus Wibowo, 417 hotspots were detected on Monday (July 21) at 5 a.m. local time, while a total of 570 hotspots were detected in Sumatra.

Data from the Meteorology, Climatology and Geophysics Agency (BMKG) revealed that the number of hotspots had been increasing over the past two days. A total of 75 hotspots had been detected on Saturday (July 19) and 154 on Sunday.

The hotspots are spread across 11 districts in Riau, mostly in Rokan Hilir District with 327 hotspots, followed by Bengkalis with 27, and Rokan Hulu with 21.

The confidence level of the data is 70 percent, indicating that the hotspots had reached 273. The region with the highest number of hotspots is Rokan Hilir, with 223 hotspots.

"The Rokan Hilir Administration has been urged to step up measures to prevent forest fires," Wibowo emphasized.

The potential of forest fires may increase as Riau is forecast to receive below-average rainfall.

"The wind direction has a potential to carry the haze to Malaysia," Wibowo added.

The haze has reduced the visibility range in Pelalawan and Indragiri Hulu to four to five kilometers.

A haze disaster alert status has been issued by the Riau Administration as the forest fire potential is still high due to the dry season and the El Nino effect.

The Haze Disaster Alert Task Force of Riau is fighting the fires with the support of the land personnel, three waterborne helicopters, and weather modificationtechnology applications to create artificial rain.

Data from the task force has revealed that at least 499 hectares of land had caught fire, and 429 hectares have been extinguished.
(Uu.A014/INE/KR-BSR)

NOAA18 satellite detects 98 hotspots in Sumatra - ANTARA News
 
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uly inflation predicted at 0.8 pct
Sabtu, 2 Agustus 2014 15:19 WIB | 235 Views

Jakarta (ANTARA News) - In July 2014, the month-to-month Indonesian inflation will be 0.8 percent, economic observer Enny Sri Hartati, of the Institute for Development and Economics and Finance has predicted.

"The July inflation must be higher than that of June but it will be lower than theinflation rates during the post-fasting Idul Fitri or Lebaran months in previous years," Enny Sri Hartati said here on Saturday.

The predicted figure of inflation was influenced by transportation fares, demand for housing in facing the new academic year and the higher demand for food, she said.

The prices of staple food were relatively stable which were lower than during Lebaran in the previous years, Enny opined.

"This years Lebaran festivities coincided with the harvest season so the prices of chilli and shallots were not too high," she said.

However, a good trade regulation is needed so that farmers can enjoy proper yields while consumers can also buy staple foods with relatively affordable prices, she argued.

The decline in purchasing power of the public since 2013 had also contributed to the inflation rates until this year, she said.

"Regional Minimum Wage admittedly increased, but the rise of basic electricity tariffs put pressure on the purchasing power of the public," she explained.

In June 2014, the inflation rate was recorded at 0.43 percent. When the Lebaran festivity fell in August last year, the inflation rate was recorded at 1.12 percent.

The Inflation rate in July will remain below one percent, with 0.75 percent (month-to-month) and the yearly inflation 4.6 percent (year-on-year, Bank Mandiri chief economist Destry Damayanti predicted.

Inflation was annually impacted by a price hike during the fasting month of Ramadhan and Idul Fitri Holidays, but it was well-controlled this year, Destry said.

Market demands had also increased as a result of the school year and presidential momentum in 2014.

"I believe the government has been successful enough in controlling the price hike, especially in food," Destry noted.

The collapse of Comal Bridge in Pemalang District, Central Java, had caused the logistic costs to increase, which had an impact on the prices, Destry pointed out.

"That is not significant however, as the government has provided a quick response to stabilize the market price," she said.

The low inflation in July was also triggered by a drop in gold prices, Destry added.

The gold bar price of PT Aneka Tambang, a state-owned mining company, a few days ahead of Eid, dropped from Rp529 thousand to Rp528 thousand per gram, as well as its buyback, which was Rp468 thousand per gram, Rp1thousand lower than the same period last year.

Destry added that the strengthened rate of the rupiah to US dollar had also curbed inflation in July.

"We have been helped by the appreciation of the rupiah throughout July," she said.

However, the second increase of electricity fares for industries in early July might cause an increase in inflation, Destry noted.

"As food prices are under control, inflation probably will remain below one percent," she said.

The inflation rate in June 2014 was 0.43 percent compared with the Idul Fitri Holidays in the previous years, which had always been up to one percent. However, this years inflation was low.

The inflation during the Idul Fitri Holidays in August 2013, for example, had reached 1.12 percent.

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Getting Realistic With Indonesia’s GDP
Lagging Initial Forecasts: Economic growth slowed in the second quarter, at the smallest pace in five years



Jakarta. The government cut its forecast on the country’s economy growth this year after slowing growth in second quarter showed that the country has lost some of its investment momentum.

Chairul Tanjung, the Coordinating Minister for the Economy, said that Indonesia may miss the target set in the state budget this year for gross domestic product to rise 5.5 percent, saying that the assumption was not the “absolute objective.”

“Judging by the global trend, GDP growth may hover at between 5.2 percent and 5.5 percent. Our most conservative number is 5.2 percent,” Chairul, who is also chairman of CT Corp, told reporters on Tuesday. CT Corp’s businesses range from media to retail.

Indonesia’s economic expansion continued to slow in the second quarter, dragged by falling growth in investment as businesses delay projects amid concerns of political uncertainties during elections.

GDP rose 5.12 percent in the April-June period from the same period last year, the Central Statistics Agency (BPS) reported on Tuesday.

The rate of growth hasn’t been that slow since the third quarter of 2009, when the economy expanded 4.27 percent, according to data compiled by Bloomberg. The BPS revised first-quarter growth to 5.22 percent.

“The slowing growth was largely due to lagging investments and export in the country for the past six months,” said Eric Sugandi, an economist at Standard Chartered in Jakarta.

Investment growth slowed to 4.5 percent in the second quarter, year on year, compared to 5.1 percent in the first quarter.

“The government should have been more realistic [on GDP growth] when they first set the target — 5.5 percent is not a realistic target,” said Ahmad Erani Yustika, an economics professor at Brawijaya University and an economist at the Institute for Development of Economics and Finance. “I think 5.2 percent growth is already the most optimum target for this country, judging by the economic situation.”

Some businesses had expected the weakness in growth, saying that April’s legislative election — coupled with campaign activities ahead of the presidential election in July — had fueled political uncertainties.

Minarto Basuki, finance director at a property developer Pakuwon Jati, said political uncertainties that stemmed from the elections have forced companies to delay their projects. “The elections absorbed a lot of attention from companies,” Minarto told the Jakarta Globe on Tuesday.

Vidjongtius, the finance director and corporate secretary at Kalbe Farma — Indonesia’s largest listed pharmaceutical firm — said that “businessmen were focusing more on the political situation instead of expanding their business.”

Government expenditure declined 0.7 percent, as political uncertainty surrounding the general election caused some delays in spending for state projects.

Consumer spending, which accounts for 56 percent of economic activity, maintained its growth pace at 5.6 percent.

In terms of trade, exports declined 1 percent, while imports fell 5 percent in the April-June period, the data showed.

The government had imposed a ban on exports of ore such as copper and iron in January, but some companies like Freeport Indonesia may resume shipments this month following commitments to set up smelting facilities in the country.

Standard Chartered had started the year with a forecast on the nation’s economic growth at 5.8 percent but revised it in the first quarter to 5.5 percent, before slashing it again in the past two weeks to 5.3 percent.

“We already expected the slowdown this year, in line with Bank Indonesia’s efforts to fix the current account deficit through tighter monetary policy. So, the economy will slow. The question is how far,” Eric said.

Going forward

Prospects, though, remain bright throughout the year.

Some businesses are betting on stability brought by the election result, which should encourage businesses to resume their investment activities for the remainder of the year. Ramadan came one calendar month earlier than last year.

“I believe that the third quarter will be better because there was Lebaran in July. Many people did a lot of economic activities during that time. Now, there’s also certainty for the next president so that’s why I think [the economy] will get better,” Pakuwon’s Minarto said.

“Our middle class income group is still growing and that makes us believe that there will be demands for property products,” he added.

Vidjongtius of Kalbe Farma said that the recent economic slowdown would not affect demand for the company’s drugs and health supplements. “Health and pharmaceutical are among the basic needs so there will always be a market and demand for such industry,” he said.

Adam Gifari, president director at Sarana Menara Nusantara — the telecommunications tower unit of Djarum Group — said that the telecommunications industry will keep on developing and supporting the company’s business this year.

Still, some economists warned that the central bank’s tight monetary policy would clamp down investment this year.

“It doesn’t seem like investment figures will change much because of the central bank’s policy tightening,” Standard Chartered’s Eric said.

It remains unclear whether Bank Indonesia would change its monetary policy when its committee members meet on Aug. 14.

Bank Indonesia raised its key policy rate last year to counter a spike in consumer prices after the price of subsidized fuel rose by an average 33 percent in June 2013. The central bank had also tightened monetary policy in 2013 at the expense of economic growth amid a widening current account deficit and a depreciating rupiah.

The government has little room to maneuver as tax revenue continue to lag its target and spending — especially for fuel subsidies — might widen the country’s trade deficit.

Getting Realistic With GDP | The Jakarta Globe

Indonesian Economic Growth Slows in Q2 Amid Weakening Investment
By Dion Bisara, Vanesha Manuturi & Basten Gokkon on 11:44 am Aug 05, 2014

Jakarta. Indonesia’s economic expansion continued to slow in the second quarter, dragged by falling growth in investment.

Gross domestic product rose 5.12 percent in the April-June period from the same period last year, the Central Statistics Agency (BPS) reported on Tuesday. Growth hasn’t been that slow since the third quarter of 2009, when the economy expanded 4.27 percent, according to data compiled by Bloomberg. The BPS revised first-quarter growth to 5.22 percent.

Investment growth slowed to 4.5 percent in the first quarter, year on year, compared to 5.1 percent in the first quarter.

“It looks like household consumption remains to be the biggest mover of Indonesia’s economy,” said Eric Sugandi, economist at Standard Chartered in Jakarta. “The slowing growth was largely due to lagging investments and export in the country for the past six months.”

Exports declined 1 percent, while imports fell 5 percent in the April-June period, the data showed. The government had imposed a ban on exports of ore such as copper and iron in January, but some companies like Freeport Indonesia may resume shipments following commitments to set up smelting facilities in the country.

Government expenditure also declined 0.7 percent, as political uncertainty surrounding the general election may have caused some delays in project spending.

Consumption, which accounts for 56 percent of economic activity, maintained its growth pace at 5.6 percent.

Standard Chartered had started the year with a forecast on the nation’s economic growth at 5.8 percent but had revised it in the first quarter to 5.5 percent, before slashing it again in the past two weeks to 5.3 percent.

“We already expected the slowdown this year, in line with Bank Indonesia’s efforts to fix the current account deficit through tighter monetary policy. So, the economy will slow. The question is how far,” Eric said.

“It doesn’t seem like investment figures will change much because of the central bank’s policy tightening. But there is some hope in our exports, especially since Freeport [Indonesia] will reportedly resume its exporting activities,” Eric said.

“Governmental expenditure — especially in the infrastructure sector — could also play a part in the country’s economic growth for the rest of the year, but I don’t think it will have too significant” of an impact, he added.

IndonesiaEconomicStatisticsWeb1-300x165.png
The central bank holds its next monetary policy on Aug. 14, and it remains to be seen whether monetary policy will ease after inflation slowed to a 20-month low in July. Bank Indonesia had raised its key policy rate last year to counter a spike in consumer prices after the price of subsidized fuel rose by an average 33 percent in June 2013. The central bank had also tightened monetary policy in 2013 at the expense of economic growth amid a widening current account deficit and a depreciating rupiah.

“The growth is in line with predictions by several economists and experts, and it is definitely not a good achievement by the government,” said Ahmad Erani Yustika, an economics professor at Brawijaya University and an economist at the Institute for Development of Economics and Finance.

“The government should have been more realistic when they first set the target — 5.5 percent is not a realistic target,” he added. “I don’t know why exactly they set such a target, but there might be some political reasons behind that. They probably wanted to win the people’s hearts by setting such high a target. I think 5.2 percent growth is already the most optimum target for this country, judging by the economic situation.”

Additional reporting by Tito Summa Siahaan

Indonesian Economic Growth Slows in Q2 Amid Lower Investment | The Jakarta Globe
 
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