Indonesia Economy Forum

[Bungaterakhir]

Widodo Launches Roadmap for Industry 4.0: "Making Indonesia 4.0"
source : Link

The Indonesian government officially launched the roadmap called "Making Indonesia 4.0" earlier this week. Industry 4.0 is a term that refers to the fourth industrial revolution in manufacturing and industry. It includes major innovations in the digital technology, biology and hardware automations, and also implies that cyber-physical systems can make their own basic decisions, hence becoming increasingly self-ruling.

Industry 4.0 is supported by five key technological advances: Internet of things, artificial intelligence, human-machine interface, robot and sensor technology, and 3D printing.

The world is now experiencing Industry 4.0 and therefore Indonesia needs to be well prepared to join the new trend. Industry 4.0 is expected to result in very rapid and wide transformations. As such, countries, including Indonesia, need to be ready.

Per Wednesday (04/04) the "Making Indonesia 4.0" roadmap, which is led by the Industry Ministry, is an important element on the national agenda. Therefore, all sides have to support this roadmap and contribute to a more successful and developed nation.

In the "Making Indonesia 4.0" roadmap five sectors are named priority sectors: food and drinks, automotive, textile, electronics, and chemicals. These five sectors are all key sectors in the world economy and Indonesia should become among the leading global players in these sectors. As such, these sectors are envisaged to boost the country's exports in the future and cause a thriving role of the manufacturing sector towards Indonesia's gross domestic product (GDP).

The design of the "Making Indonesia 4.0" roadmap involved stakeholders from various segments, including the government, industry players, industry associations, tech companies, as well as research and educational organizations. The commitments and efforts of all sides involved is required to turn the roadmap into a success.

Hartarto expects to see quick results. If successful, then the roadmap will boost the real economy of Indonesia by between 1 - 2 percent. Hence, in the period 2018-2030 Indonesia's GDP growth rates should be at least 6-7 percent per year. Meanwhile, the manufacturing industry is targeted to contribute between 21-26 percent to the nation's GDP by 2030. Meanwhile, on the back of the thriving manufacturing industry and export performance, job creation through the roadmap is estimated at 7-19 million by 2030.

Indonesia's roadmap also involves ten cross-sectoral national initiatives:

(1) improve the flow of goods
(2) develop a roadmap for comprehensive and cross-sectoral industrial zones
(3) improve sustainability standards
(4) empower the small and medium-sized entrepreneurs
(5) build national, digital infrastructure
(6) attract foreign investment
(7) boost the quality of local human resources
(8) boost the development of ecosystem innovation
(9) design incentives for investment in technology
(10) harmonize regulations and policies
​

 

[Bungaterakhir]

SUZUKI ERTIGA RIVAL MITSUBISHI XPANDER MPV EXPORTS BEGIN FROM INDONESIA
Source : Link

The Mitsubishi Xpander is a compact MPV that is manufactured at the company's facility in Bekasi, Indonesia. Mitsubishi has recently announced its export plans to the Philippines that will become the first export market for the Xpander MPV. This will be then followed by Thailand, Vietnam and other international markets in the coming months. Mitsubishi plans to export a total of 30,000 units during the first year. The Mitsubishi Xpander MPV is equivalent of the Suzuki Ertiga and the Honda Mobilio MPVs sold in India.

 

[Nike]

Drains in South Jakarta used for aquaculture

• 
  News Desk
  The Jakarta Post
  

Jakarta | Fri, April 27, 2018 | 08:05 am

Residents of Pengadegan in South Jakarta have turned drains in the area into fish ponds. (kompas.com/Nursita Sari)

• 
  

Residents of Pengadegan neighborhood in South Jakarta have turned the drains in their neighborhood into fish farms.

Neighborhood unit (RT) 1, community unit (RW) 1 of the subdistrict has turned two of the drains into fish ponds and has created good business cooperation with local food sellers.

RT 1 head Saparno said the ponds were mainly filled with catfish. “For now, we’re breeding catfish because their maintenance is easier than other fish,” Saparno said as reported by kompas.com.

The RT 1 community has cooperated with pecel lele [fried catfish] vendors in the neighborhood by becoming suppliers, as well as selling the fresh fish to residents.

Saparno said that one of the ponds had been used for red tilapia fish-farming, but these had never been harvested.

“The first tilapia fish pond failed, because right after we painted the pond we immediately filled it with the fish. They died because of the paint,” he said.

A catfish farmer, Wasro Mukrodi, said he harvested the catfish from one of the ponds once and earned Rp 400,000 (US$28.90). Using some Rp 300,000 of the revenue he bought 400 catfish eggs, he added.

Aside from creating fish ponds, the residents are also using open spaces to grow vegetables using the hydroponic system. (ami)

 

[Bungaterakhir]

Indonesia, China sign US$23.3 billion cooperation contracts under Belt and Road
source : Link

Jakarta, (ANTARA News) - Indonesia and China have signed five cooperation contracts worth US$23.3 billion under the Silk Road Economic Belt and 21st Century Maritime Silk Road initiatives.

The cooperation contracts signed by the two countries` companies in Beijing on Friday cover the construction of a $2 billion hydropower plant in Kayan, North Kalimantan; the development of a $700 million industry for converting dimethyl ethercoal into gas; and the construction of a $17.8 billion hydropower plant on Kayan River.

Other contracts cover the development of a $1.6 billion power plant in Bali and the construction of a $1.2 billion steel smelter.

Lion Air, Gapki to Begin R&D on Bioavtur
source : Link

Jakarta. Lion Air Group, Indonesia's largest budget airline operator, signed a memorandum of understanding with the Indonesian Palm Oil Association, or Gapki, on Tuesday (10/04) in Jakarta to conduct research, development and trials to explore alternative palm oil-mixed aviation fuel, known as bioavtur.

The use of bioavtur, an aviation fuel that harnesses vegetable oil extracted from crude palm oil (CPO), is aimed at improving farmers' productivity and welfare through sustainable environmental practices and to reduce the country's dependency on fossil fuels.

 

[Svantana]

 

[Nike]

Ben joget

 

[Nike]

Rp 185.3t invested in Indonesia in first quarter, up 11% yoy

• 
  Rachmadea Aisyah
  The Jakarta Post
  

Jakarta | Tue, May 1, 2018 | 07:18 am

The first center span of the Halltekamp Bridge is installed on Feb. 21 in Jayapura, West Papua. The bridge is expected to be completed in October this year. The parts of the bridge are built in Surabaya and shipped to Jayapura on a 17-day tugboat voyage. (JP/Nethy Dharma Somba)

• 
  

The Indonesian Coordinating Investment Board (BKPM) says the country booked a total of Rp 185.3 trillion (US$13.32 billion) in investment from both domestic and overseas investors in the first quarter of 2018.

The figure marks an increase of 3.2 percent over the previous quarter and of 11 percent from to corresponding period of last year.

Singapore and Japan remained the top countries of origin for foreign investment, accounting for $2.322 billion and $996.6 million, respectively, followed by China and South Korea.

Most investors preferred to invest in the property and industrial sector (14 percent) and the metal, electronics and machinery sector (12.3 percent).

West Java and Jakarta are still the most attractive regions to invest in, as a total of Rp 65.9 trillion went to the two provinces.

BKPM head Thomas Lembong told a press conference that a series of economic reforms had contributed to the investment growth, but he added that more could be done to attract funds.

He said the government had prepared more reforms for this year, such as a revision of tax holiday regulations by the Finance Ministry, a revision of a presidential decree to simplify the processing of foreigners’ work permits and the introduction of an integrated online single submission (OSS) system. (bbn)

http://www.thejakartapost.com/news/...-in-indonesia-in-first-quarter-up-11-yoy.html

 

[katarabhumi]

Indonesia manufacturing notches best growth since 2016
Hudson Lockett in Hong Kong May 2, 2018

Indonesia’s manufacturing sector recorded its fastest growth in 22 months in April as improving domestic demand drove up output and new orders, but concerns about a possible slowdown weighed on companies’ confidence, according to an industry gauge.

The Nikkei-Markit manufacturing purchasing managers’ index for Indonesia climbed nearly a point in April to 51.6, pushing further above the 50-point line that separates growth from contraction and touching its highest level since June 2016.

Companies surveyed for the gauge pointed to stronger demand as the reason behind a third straight month of rising output, with a sub-index for production touching its highest level since July 2014.

New orders grew at the fastest pace since June 2016 in spite of weak demand from overseas, with a sub-index for new export orders registering sharper contraction in April.

Input costs continued to rise, albeit at a somewhat slower pace, as companies blamed the dollar’s strength against the rupiah for growth in the cost of imported materials. Output price growth continued but at a marginal rate.

Moreover, concerns over a potential slowdown weighed on companies’ confidence, with an index tracking output expectations over the next 12 months dipping to its lowest level since December 2012.

https://www.ft.com/content/7c34bb66-4da0-11e8-8a8e-22951a2d8493
https://www.ft.com/content/7c34bb66-4da0-11e8-8a8e-22951a2d8493
.

 

[Logam42]

Ship-Based production unit via modular engineering: Happening in Indonesia!
Ever forward

 

[katarabhumi]

Indonesia to raise efforts to reduce haze
Vows to introduce measures to prevent blazes in fire-prone peatland areas

Konradus Epa, Jakarta, Indonesia - May 3, 2018

The Indonesian government has pledged to raise its efforts to reduce annual choking haze caused by forest fires and crop burning that blanket not only large parts of Indonesia but also several other Southeast Asian countries.

Declaring 2018 as a "zero smoke year", Bambang Hendroyono, general secretary of the Environment and Forestry Ministry said the government has come up with a concrete plan to reduce the air pollution.

This involved closer monitoring of peatland areas — especially the activities of farmers — speeding up conservation and forest restoration efforts, wetting arid areas and public awareness campaigns.

"Conservation of peatlands is important to decrease the intensity of forest and peatland fires," said Hendroyono, at a meeting on peatland mangement in Banjar, Central Kalimantan.

Preventing peatland — of which Indonesia has 14.9 million hectares — from catching fire is a key element of the government's plan as it acts as a natural fuel and is very difficult to put out once a fire starts.

According Environment and Forestry Minister Siti Nurbaya Bakar, fire has consumed more than 3 million hectares of peatland in the last three years.

"Conservation of peatland is important to decrease intensity of forest and peatlands fires," Hendroyono said.

Father Frans Sani Lake, head of the church-run Justice, Peace and Integrity of Creation group in the Kalimantan region responded by warning the government that it would take a mammoth effort to significantly reduce fires and that they would remain a big threat, particularly during the dry season.

"Being free from haze is a dream of all people. But, we must be realistic and be prepared," he told ucanews.com.

The priest said the church has urged Catholics — through homilies, catechism, and announcements in churches — to be wary of activities that trigger forest fires.

Sacred Heart Father Ansel Amo, who heads Merauke Archdiocese's Justice, Peace and Integrity of Creation Commission in Papua, welcomed the government's move.

"All should respond to this, which serves as a reminder for all of us to protect forests and peatlands, particularly during the dry season," he said.

Annisa Rahmawati, Senior Forest Campaigner at Greenpeace Southeast Asia said such a commitment to reduce fires must be ongoing.

She said this year there has already been a 20 percent increase on the 2,400 hotspots found last year.

"We hope the government promise is turned into real action," she told ucanews.com.

https://www.ucanews.com/news/indonesia-to-raise-efforts-to-reduce-haze/82201

I'm always a bit worried when Indonesia get's its palm-exporting restrictions overturned.

Yeah, it'll mean more demand, but I can't help but fear that it would also mean more burned forests and more haze. Jokowi has done many things - defending forests and peatland isn't one of them.

.

 

[Bungaterakhir]

Indonesia Reaches 1,925 MW Installed Geothermal Power Generation Capacity

The installed power generation capacity in Indonesia has reached 1,924.5 MW in the first quarter of 2018. It is expected that the capacity will reach 2,058.5 MW at the end of the year. With an achievement of 1,924.5 MW it put Indonesia in second place in the world after the United States in utilizing geothermal power, shifting second position previously occupied by the Philippines.

Indonesia currently has geothermal reserves of 17,506 MW and resources of 11,073 MW. With the utilization of which is still about 11.03% of the existing reserves into a great opportunity for investors to develop geothermal as well as meet national energy needs.

October 2017

May 2018

Source : http://www.thinkgeoenergy.com/indon...stalled-geothermal-power-generation-capacity/

 

[Logam42]

Snip
.

Well, lets see how it pans out. Good to know the gov is at least aware and preparing the looming problem.

 

[Logam42]

Gov't to Axe Complicated Regulations to Boost Oil & Gas Investment
President Joko 'Jokowi' Widodo told the Ministry of Energy and Mineral Resources on Wednesday (02/05) to continue axing several complicated regulations in a bid to accelerate more petroleum investment into Indonesia. (Antara Photo/Akbar Nugroho Gumay)

By : Sarah Yuniarni | on 11:33 AM May 03, 2018
Category : Business, Commodities, Featured
Jakarta. President Joko "Jokowi" Widodo told the Ministry of Energy and Mineral Resources on Wednesday (02/05) to continue axing several complicated regulations in a bid to accelerate more petroleum investment into Indonesia.

"I told the [Energy Ministry] that our regulations are still not conducive. There are still [many regulations] that are complicated, and require a lot of procedure. The regulations should be axed and simplified. I want to discuss that at this forum, what kind of regulations that still give us a headache," Jokowi said at the 2018 Indonesian Petroleum Association (IPA) conference at the Jakarta Convention Center on Wednesday.

"We expect to increase [oil and gas] production every year because it has been years that we have not been conducting large-scale oil exploration. Our production keeps declining, and we keep importing oil. That is the expectation," Jokowi said.

Once a founding member of the Organization of the Petroleum Exporting Countries (OPEC), Indonesia is now only able to produce oil about 800,000 barrels per day (bpd), half of its daily need, and has since relinquished its place in OPEC.

At its peak in 1995, the country was able to produce more than 1.6 million bpd, thanks to massive investments from foreign oil giants.

However, an uncertain regulatory environment and a lack of new investments to find new reserves has turned Indonesia into a net oil importer. International firms such as ConocoPhillips and Chevron have reduced their holdings, and the nation's overall crude output now stands well below 1 million bpd.

Private investment in the oil and gas sector slumped to a multi-year low of $9.3 billion in 2017, compared to a target of $13.8 billion, according to BMI Research.

The government has been making efforts to eliminate several regulations. According to the Energy and Mineral Resources Ministry, the number of required permits for firms in the oil and gas industry to conduct business has been reduced to only six from a previous 104.

"If [you] cannot speak to the minister, speak directly to me," Jokowi told the audience consisting of government officials, corporate officials, chief executives and journalists.

Last year, the government introduced its gross split scheme for new oil and gas production sharing contracts, replacing the previous cost recovery scheme, which had been in use for more than 50 years.

Under the cost recovery scheme, profit sharing is calculated after contractors deduct production and exploration costs. That requires a lot of supervision and a complicated bureaucracy to avoid accounting mishaps.

Meanwhile, the gross split system is more of an upfront approach, based on the working area and the gross production. The contractor will cover all operation spending, while the government will receive its profit-sharing once per a month.

"By shifting the production sharing from a cost recovery scheme to the current gross split, it shows the government's significant efforts to show flexibility in an bid to attract more investment," said Indonesia Petroleum Association president Ronald Gunawan.

"It's very clear that the Energy and Mineral Resources Ministry has received industry input and strengthened provisions to improve the competitiveness of this scheme," Chevron IndoAsia business unit director Chuck Taylor said, referring to gross split contracts.

Indonesia announced four winners from five blocks in a direct offer tender on Wednesday, including Lion Energy and units of ENI and Repsol. Interest in Indonesia's tenders has been tepid, though, and the industry has pointed to more attractive opportunities in other countries.

Investors have also criticized Jakarta's decision to hand exploration and development rights on expiring oil blocks to Pertamina in compensation for its losses on government-set retail fuel prices.

Exploration

Jokowi slammed state-owned oil company Pertamina, whom he said had not been invested enough in exploration, stating that the firm has not conducted major oil exploration since 1970.

However, the president instructed his cabinet in March this year to keep fuel prices unchanged until the end of next year. That consequently shifted the subsidy burden to Pertamina, which is seeing its cost of importing fuel increase in line with rising global oil prices.

Jokowi issued several reforms in 2014 and 2015 shortly after taking office, when he decided to take the unpopular decision of cutting government fuel spending by more than 90 percent to fund infrastructure development across the archipelago.

That decision has served to hamper Pertamina's performance. According to the Supreme Audit Agency (BPK), which reviewed the government's financial report in 2016, the state owes Pertamina about Rp 22 trillion ($1.57 billion) for subsidized fuel. Askolani, a director general of budgeting at the Ministry of Finance, said the government has set aside part of its budget to pay back half of its debt to Pertamina.

Pertamina Response

Pertamina senior vice president for upstream business development Denny Tampubolon said the company has been making efforts to conduct drilling exploration in Indonesia.

Denny said the exploration is done by conducting extensive geological surveys and drilling in high-risk wells, adding that oil discoveries are often limited because of mature wells.

"However, we are still trying to drill in those maturing wells as they potentially still have oil reserves."

Pertamina will look to explore around 20 wells this year, up from 15 in 2017. The company's oil and gas production rose to 693,000 boepd last year, a 7 percent increase from the year prior.

To boost production, the company has been exploring new wells across the archipelago, including in Tarakan, North Kalimantan, which may be able to produce 200 million boepd.

With additional reporting from Reuters

 

[Nike]

China agrees to increase palm oil imports from Indonesia

• 
  Marguerite Afra Sapiie
  The Jakarta Post
  

Jakarta | Mon, May 7, 2018 | 06:42 pm

Chinese Premier Li Keqiang (center) and President Joko "Jokowi" Widodo (center right) greet schoolchildren at the Bogor Palace on May 7. (AFP/Pool/Adek Berry)

• 
  

President Joko "Jokowi" Widodo and Chinese Premier Li Keqiang agreed on Monday to bolster trade between their two countries, including to increase Indonesia's crude palm oil (CPO) exports to China.

Jokowi received Li at the Bogor Palace on Monday in a visit that marked the fifth year of the Indonesia-China Comprehensive Strategic Partnership. The two leaders held a bilateral meeting and discussed ways to improve cooperation.

"Premier Li Keqiang has especially agreed to increase [Indonesia's] palm oil exports to China by up to 500,000 tons [per year]," Jokowi said in a joint statement after the meeting on Monday.

China is a major importer of Indonesia's palm oil. According to the Indonesian Palm Oil Producers Association, Indonesia exported 3.73 million tons of CPO to China in 2017, an increase of 16 percent from 3.23 million tons in 2016.

Moreover, Jokowi said he had asserted the importance of increasing commodity exports to China, including swift's nest, coffee and cocoa, as well as tropical fruits such as mangosteen and dragon fruit.

In his statement, Li said he would immediately brief related ministries and organizations on the increase of Indonesian palm oil exports. He also said China would increase imports of the promoted commodities, however he did not elaborate on import volume targets. (evi)

 

[Nike]

China ready to import 2 million tons of palm oil from Indonesia
Selasa, 8 Mei 2018 07:45 WIB - 1 Views

Reporter: Fransiska Ninditya

Palm oil fresh fruit bunches (ANTARA FOTO/Wahyu Putro A)

Jakarta, (ANTARA News) - China is ready to import 2 million tons of palm oil from Indonesia as part of efforts to increase trade relations between the two countries, Chinese Prime Minister Li Keqiang said.

"To cater to the rising demand from the Chinese market for (palm) oil as well as to give greater benefit to 17 million Indonesian farmers in managing and increasing palm product, China is ready to increase its import of palm oil and crude palm oil from Indonesia to 2 million tons," Keqiang said in his address to Indonesia-China Business Summit 2018 held at Shangri-la Hotel in Jakarta on Monday night.

Realizing that palm oil and crude palm oil have great market in China, the Chinese government will increase the import of palm oil from Indonesia, he said.

He went on to say that China will also buy other Indonesian farm products such as tropical fruits.

Hence, he said the Chinese government will give Indonesian businessmen convenience to increase imports to China.

"In this respect, we also hope Indonesia will give convenience to Chinese businessmen. And I believe that the move will enable us to benefit from the exports and imports," he said at the forum also attended by Vice President Jusuf Kalla and Chinese and Indonesian stakeholders.


Editor: Suharto

COPYRIGHT © ANTARA 2018


https://m.antaranews.com/en/news/11...ort-2-million-tons-of-palm-oil-from-indonesia

**** European Union. Millions hard working worker is in stakes, we need to punish those hypocrites by any means, trade war if necessary

Thanks China for their support