Indonesia Economy Forum
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MRT construction nearly complete, developer says
Maintenance work is carried out on an MRT train at a station in Lebak Bulus, South Jakarta, on April 26. (Antara/Akbar Nugroho Gumay)
Construction of the MRT in Jakarta is 94.2 percent complete, with a rolling stock trial run slated for December, PT MRT Indonesia president director William P. Sabandar said in Jakarta on Monday
“We are on time and the commercial operation will be held in March 2019,” William said while accompanying Coordinating Economic Minister Darmin Nasution in his visit to the MRT project,kontan.co.id reported.
He said two trains, each of which consisted of six cars, had arrived from Japan and that other trains were expected to arrive in December, when a trial run would be held without passengers.
He said the two currently available trains would head from Lebak Bulus in South Jakarta to the Hotel Indonesia traffic circle in Central Jakarta to test the entire MRT system.
The MRT had already been powered with electricity, William said, adding that the railway signaling system, which was vital for the entire system, was currently being installed.
“We have started to install the signaling system. As you can see, the railway tracks have already been installed, while in August, we will place the trains on the tracks,” he said.
A total of 16 trains and 96 train cars will operate along the MRT network. (bbn)
- News Desk
The Jakarta Post
Construction of the MRT in Jakarta is 94.2 percent complete, with a rolling stock trial run slated for December, PT MRT Indonesia president director William P. Sabandar said in Jakarta on Monday
“We are on time and the commercial operation will be held in March 2019,” William said while accompanying Coordinating Economic Minister Darmin Nasution in his visit to the MRT project,kontan.co.id reported.
He said two trains, each of which consisted of six cars, had arrived from Japan and that other trains were expected to arrive in December, when a trial run would be held without passengers.
He said the two currently available trains would head from Lebak Bulus in South Jakarta to the Hotel Indonesia traffic circle in Central Jakarta to test the entire MRT system.
The MRT had already been powered with electricity, William said, adding that the railway signaling system, which was vital for the entire system, was currently being installed.
“We have started to install the signaling system. As you can see, the railway tracks have already been installed, while in August, we will place the trains on the tracks,” he said.
A total of 16 trains and 96 train cars will operate along the MRT network. (bbn)
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UI, ITB and UGM among top 400 universities in the world
Bandung Institute of Technology (ITB) was ranked 359 in the global ranking. (Courtesy of ITB/itb.ac.id)
Three state-owned universities in Indonesia were among the top 400 universities in the world, according to the 2018 QS World University Rankings.
Sitting in the highest position among the three is the University of Indonesia (UI), which was ranked at 292 in the annual Quacquarelli Symonds (QS) ranking, as seen on its website.
The Bandung Institute of Technology (ITB) followed at number 359. Gadjah Mada University (UGM) in Yogyakarta, meanwhile, sat at 391, jumping 11 spots from its previous position of 402.
Read also: Indonesian state universities welcome foreigners as permanent lecturers
UGM's head of the Quality Assurance Office, Indra Wijaya Kusuma, said in a statement on the university's website that the upgrade is marked by the improvement of its reputation among employers, the ratio of lecturers to students and the increasing number of international lecturers.
"[We are in] the top 39 percent, ranked 391 of the world's top universities," Indra said, as quoted in the statement published on June 7.
In the global ranking, which lists 1000 universities from around the world, nine Indonesian universities made the list.
The six other universities were ranked between 700 and 800, namely Airlangga University, Bogor Agricultural University, Diponegoro University, Institute of Technology Sepuluh Nopember, Muhammadiyah Surakarta University and Brawijaya University. (kes)
- Liza Yosephine
The Jakarta Post
Three state-owned universities in Indonesia were among the top 400 universities in the world, according to the 2018 QS World University Rankings.
Sitting in the highest position among the three is the University of Indonesia (UI), which was ranked at 292 in the annual Quacquarelli Symonds (QS) ranking, as seen on its website.
The Bandung Institute of Technology (ITB) followed at number 359. Gadjah Mada University (UGM) in Yogyakarta, meanwhile, sat at 391, jumping 11 spots from its previous position of 402.
Read also: Indonesian state universities welcome foreigners as permanent lecturers
UGM's head of the Quality Assurance Office, Indra Wijaya Kusuma, said in a statement on the university's website that the upgrade is marked by the improvement of its reputation among employers, the ratio of lecturers to students and the increasing number of international lecturers.
"[We are in] the top 39 percent, ranked 391 of the world's top universities," Indra said, as quoted in the statement published on June 7.
In the global ranking, which lists 1000 universities from around the world, nine Indonesian universities made the list.
The six other universities were ranked between 700 and 800, namely Airlangga University, Bogor Agricultural University, Diponegoro University, Institute of Technology Sepuluh Nopember, Muhammadiyah Surakarta University and Brawijaya University. (kes)
pr1v4t33r
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Indonesia’s Growing Influence In Africa
Since the fall of the Suharto dictatorship in 1998, Indonesia has had an impressive rise in world politics. As the largest economy in Southeast Asia and the fourth largest population in the world, with more than 248 million people in 2012, the country had often made its voice heard, particularly on issues connected with the former Third World, today known as the Global South.
Indonesia has been a leading actor in the developing world since the 1955 conference of 29 nations of Asia and Africa, the first Asia-Africa Conference held in the city of Bandung.
Indonesia’s growing presence will have implications for many countries nearby, including China, whose regional hegemony will surely be challenged.
The Indonesian government is seeking to bolster relations with Africa in order to effectively penetrate the African markets.
Indonesia’s turn towards Africa is part of Jakarta’s assertive and pragmatic foreign policy, which since the early 2000s has been focusing on building a political and security community within the Association of Southeast Asian Nations (ASEAN) and also tightening links with the US, India, Australia, Russia, as well as other emerging countries. Indonesia is also a member of the G20.
Jakarta’s rising global profile is also evident in the new numeronyms and acronyms created in the last couple of years: PricewaterhouseCoopers, for instance, coined “E7,” representing the world’s seven major emerging countries: China, India, Brazil, Mexico, Russia, Indonesia and Turkey.
Goldman Sachs speaks of the “N-11” (Next Eleven), referring to Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, Turkey, South Korea and Vietnam, as the emerging countries with the potential to join the club of the largest economies over the course of the 21st century.
In April this year, there were smiles from the African delegates gathered for the Indonesia-Africa Forum in Bali as Indonesian company executives signed a series of Africa-related business deals.
The agreements not only signalled Indonesian companies’ commitment to Africa’s economic growth, but also showed that the country was serious about increasing its influence on the continent.
The business deals signed were worth $586.56 million and included one worth $26.7 million by state-owned contractor Wijaya Karya in Niger. Future potential business deals worth a total of $1.3 billion were also announced, including one in Zambia by Inka, the state-owned train manufacturer, and one in Nigeria by state-run oil company Pertamina.“
[We] work together in advancing economic cooperation between Indonesia and Africa,” said Jusuf Kalla, Indonesia’s vice president, in his opening remarks on Tuesday for the two-day conference. “The development of cooperation with Africa is a priority of Indonesia’s foreign policy.
” Luhut Pandjaitan, Indonesia’s coordinating minister for maritime affairs, said that the Jakarta government was planning a task force to export Indonesian infrastructure to Africa “in the near future.”
Jakarta’s Africa push is a welcome development for Indonesian companies, as seen in the optimism among the executives attending the event. “Africa’s growth potential is huge,” said Iwan Joeniarto, president of GMF AeroAsia, the maintenance unit of the country’s flag carrier Garuda Indonesia. “Several African airlines are experiencing 100% growth, so for us, the market is highly interesting.”
GMF already has deals with airlines in countries including Kenya and Djibouti, and Joeniarto said he had signed a maintenance deal with Nigeria’s Max Air as well as Ethiopia’s Ethiopia Airlines worth $3.17 million.
Prasetyadi, operations and information systems director at state-owned port operator Pelindo, echoed Joeniarto’s enthusiasm. “Africa is really attractive, really growing,” he said. “Therefore, we want to enter the market within this year.”
Former Indonesian President Sukarno was instrumental in forming the Asian-Africa Conference, also known as the Bandung Conference, in 1955 as nations from both areas looked to form a block that was separate from any involving the US or the then Soviet Union.
The archipelago nation has lacked any significant diplomatic achievements since then, and the current government, led by President Joko Widodo, is looking to leverage the deals forged by the state-owned enterprises to increase the country’s influence in the continent as well as in the international community.
Indonesia is pushing to become a non-permanent member of the United Nations Security Council, and any backing from African nations will help its case. Widodo has also set a goal for Indonesia to become one of the 10 biggest economies in the world by 2030. Tapping into the growing African market is seen a fast track to achieving that target.
It has been reported that Widodo-led government seeks market diversification, and is targeting several African countries with “non-oil-and-gas products.”
According to Statistics Indonesia (BPS), current major African trading partners for Indonesia are South Africa, Nigeria, Egypt, Algeria and Tanzania, Madagascar, Kenya, Benin, Angola and Ghana.
Pundits believe that beyond bilateral agreements, a regional approach can be detected in Indonesia’s actions. Apart from the Southern African Development Community (SADC) and the East African Community (EAC), the Economic Community of West African States (ECOWAS) offers abundant opportunities to boost trade with Africa.
Some foreign affairs analysts have said that there have been some recent developments which can support these efforts. The establishment of the Joint Commission of Bilateral Cooperation (JCBC) between the government of the Republic of Indonesia and the Republic of The Gambia is a good example in this respect.
Also, the government of Indonesia has been donating hand tractors to the governments of Senegal and The Gambia to support the mechanization of agricultural sectors in these countries. The same developments are now being processed as well with other West African countries.”
Stronger cooperation with Africa would give Indonesia a greater role, not only on the African continent but in the rapidly changing context of Afro-Asian relations. Seeking ways to boost trade, assisting African countries in different forms along the lines of the “Bandung solidarity,” and pursuing a pragmatic foreign policy under a new president could all result in an even more powerful and assertive Indonesia, one that may even warrant inclusion in the BRICS, perhaps as a replacement for Russia in a new BIICS group.
Read More at: https://leadership.ng/2018/06/09/indonesias-growing-influence-in-africa/
Since the fall of the Suharto dictatorship in 1998, Indonesia has had an impressive rise in world politics. As the largest economy in Southeast Asia and the fourth largest population in the world, with more than 248 million people in 2012, the country had often made its voice heard, particularly on issues connected with the former Third World, today known as the Global South.
Indonesia has been a leading actor in the developing world since the 1955 conference of 29 nations of Asia and Africa, the first Asia-Africa Conference held in the city of Bandung.
Indonesia’s growing presence will have implications for many countries nearby, including China, whose regional hegemony will surely be challenged.
The Indonesian government is seeking to bolster relations with Africa in order to effectively penetrate the African markets.
Indonesia’s turn towards Africa is part of Jakarta’s assertive and pragmatic foreign policy, which since the early 2000s has been focusing on building a political and security community within the Association of Southeast Asian Nations (ASEAN) and also tightening links with the US, India, Australia, Russia, as well as other emerging countries. Indonesia is also a member of the G20.
Jakarta’s rising global profile is also evident in the new numeronyms and acronyms created in the last couple of years: PricewaterhouseCoopers, for instance, coined “E7,” representing the world’s seven major emerging countries: China, India, Brazil, Mexico, Russia, Indonesia and Turkey.
Goldman Sachs speaks of the “N-11” (Next Eleven), referring to Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, Turkey, South Korea and Vietnam, as the emerging countries with the potential to join the club of the largest economies over the course of the 21st century.
In April this year, there were smiles from the African delegates gathered for the Indonesia-Africa Forum in Bali as Indonesian company executives signed a series of Africa-related business deals.
The agreements not only signalled Indonesian companies’ commitment to Africa’s economic growth, but also showed that the country was serious about increasing its influence on the continent.
The business deals signed were worth $586.56 million and included one worth $26.7 million by state-owned contractor Wijaya Karya in Niger. Future potential business deals worth a total of $1.3 billion were also announced, including one in Zambia by Inka, the state-owned train manufacturer, and one in Nigeria by state-run oil company Pertamina.“
[We] work together in advancing economic cooperation between Indonesia and Africa,” said Jusuf Kalla, Indonesia’s vice president, in his opening remarks on Tuesday for the two-day conference. “The development of cooperation with Africa is a priority of Indonesia’s foreign policy.
” Luhut Pandjaitan, Indonesia’s coordinating minister for maritime affairs, said that the Jakarta government was planning a task force to export Indonesian infrastructure to Africa “in the near future.”
Jakarta’s Africa push is a welcome development for Indonesian companies, as seen in the optimism among the executives attending the event. “Africa’s growth potential is huge,” said Iwan Joeniarto, president of GMF AeroAsia, the maintenance unit of the country’s flag carrier Garuda Indonesia. “Several African airlines are experiencing 100% growth, so for us, the market is highly interesting.”
GMF already has deals with airlines in countries including Kenya and Djibouti, and Joeniarto said he had signed a maintenance deal with Nigeria’s Max Air as well as Ethiopia’s Ethiopia Airlines worth $3.17 million.
Prasetyadi, operations and information systems director at state-owned port operator Pelindo, echoed Joeniarto’s enthusiasm. “Africa is really attractive, really growing,” he said. “Therefore, we want to enter the market within this year.”
Former Indonesian President Sukarno was instrumental in forming the Asian-Africa Conference, also known as the Bandung Conference, in 1955 as nations from both areas looked to form a block that was separate from any involving the US or the then Soviet Union.
The archipelago nation has lacked any significant diplomatic achievements since then, and the current government, led by President Joko Widodo, is looking to leverage the deals forged by the state-owned enterprises to increase the country’s influence in the continent as well as in the international community.
Indonesia is pushing to become a non-permanent member of the United Nations Security Council, and any backing from African nations will help its case. Widodo has also set a goal for Indonesia to become one of the 10 biggest economies in the world by 2030. Tapping into the growing African market is seen a fast track to achieving that target.
It has been reported that Widodo-led government seeks market diversification, and is targeting several African countries with “non-oil-and-gas products.”
According to Statistics Indonesia (BPS), current major African trading partners for Indonesia are South Africa, Nigeria, Egypt, Algeria and Tanzania, Madagascar, Kenya, Benin, Angola and Ghana.
Pundits believe that beyond bilateral agreements, a regional approach can be detected in Indonesia’s actions. Apart from the Southern African Development Community (SADC) and the East African Community (EAC), the Economic Community of West African States (ECOWAS) offers abundant opportunities to boost trade with Africa.
Some foreign affairs analysts have said that there have been some recent developments which can support these efforts. The establishment of the Joint Commission of Bilateral Cooperation (JCBC) between the government of the Republic of Indonesia and the Republic of The Gambia is a good example in this respect.
Also, the government of Indonesia has been donating hand tractors to the governments of Senegal and The Gambia to support the mechanization of agricultural sectors in these countries. The same developments are now being processed as well with other West African countries.”
Stronger cooperation with Africa would give Indonesia a greater role, not only on the African continent but in the rapidly changing context of Afro-Asian relations. Seeking ways to boost trade, assisting African countries in different forms along the lines of the “Bandung solidarity,” and pursuing a pragmatic foreign policy under a new president could all result in an even more powerful and assertive Indonesia, one that may even warrant inclusion in the BRICS, perhaps as a replacement for Russia in a new BIICS group.
Read More at: https://leadership.ng/2018/06/09/indonesias-growing-influence-in-africa/
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Japan asks for bigger investment opportunity in Indonesia
Rabu, 13 Juni 2018 17:49 WIB - 0 Views
Reporter: antara
Vice President Jusuf Kalla (left) held bilateral meeting with Japanese Prime Minister Shinzo Abe (right) (ANTARA FOTO/Akbar Nugroho Gumay)
Tokyo (ANTARA News) - Visiting Indonesian Vice President Jusuf Kalla has said the Japanese government wants expansion of investment and trade cooperation with Indonesia.
Japan especially asked for bigger opportunity to invest in automotive industry in Indonesia, Kalla said here on Wednesday.
"The Japanese did not ask for too much. They only want bigger opportunity to invest in Indonesia. They want to increase investment in Indonesia. They even want to have more investment groups," he told Antara news agency.
Kalla was in Tokyo to attend the 24th International Conference on the Future of Asia held at the Imperial Hotel from Monday to Wednesday.
During in Tokyo, Kalla held meetings with a number of country leaders and business representatives such as from Vietnamese Deputy Prime Minister Truong Hoa Binh, New Zealand Minister for Trade David Parker, MUFG Bank, Marubeni Corporation, and Chairman of Japan-Indonesia (Japinda).
"Almost all of them expressed interest in increasing investment and expanding business in Indonesia," Kalla said.
MUTG Bank offered to team up with small and medium businesses in Indonesia to develop small and medium industries, he said.
He said Japan is interested in two things they see in Indonesia -- huge market and abundant availability of cheap labor..
"All want to increase investment . None of them complain about anything," he repeated.
The Japanese government and business leaders have changed in their position facing Indonesia, he said.
Previously Japanese investors tended to dictate conditions, but now investment is made in line with the requirements set by the Indonesian government, he added.
"For them investment is what they need without any conditions. It is the other way round. Not what I want but what Indonesia needs," he said
In his talks with Parker, Kalla said the New Zealand Minister offered to supply beef and milk to Indonesia.
Kalla said he he told Parker that New Zealand could increase exports of the food commodities to Indonesia, but has to be ready to compete with other countries such as Brazil Australia and India .
"New Zealand also wanted to promote trade with Indonesia and offered technology in geothermal power production," he said. (AS)
Editor: Andi Abdussalam
COPYRIGHT © ANTARA 2018
Rabu, 13 Juni 2018 17:49 WIB - 0 Views
Reporter: antara
Vice President Jusuf Kalla (left) held bilateral meeting with Japanese Prime Minister Shinzo Abe (right) (ANTARA FOTO/Akbar Nugroho Gumay)
Tokyo (ANTARA News) - Visiting Indonesian Vice President Jusuf Kalla has said the Japanese government wants expansion of investment and trade cooperation with Indonesia.
Japan especially asked for bigger opportunity to invest in automotive industry in Indonesia, Kalla said here on Wednesday.
"The Japanese did not ask for too much. They only want bigger opportunity to invest in Indonesia. They want to increase investment in Indonesia. They even want to have more investment groups," he told Antara news agency.
Kalla was in Tokyo to attend the 24th International Conference on the Future of Asia held at the Imperial Hotel from Monday to Wednesday.
During in Tokyo, Kalla held meetings with a number of country leaders and business representatives such as from Vietnamese Deputy Prime Minister Truong Hoa Binh, New Zealand Minister for Trade David Parker, MUFG Bank, Marubeni Corporation, and Chairman of Japan-Indonesia (Japinda).
"Almost all of them expressed interest in increasing investment and expanding business in Indonesia," Kalla said.
MUTG Bank offered to team up with small and medium businesses in Indonesia to develop small and medium industries, he said.
He said Japan is interested in two things they see in Indonesia -- huge market and abundant availability of cheap labor..
"All want to increase investment . None of them complain about anything," he repeated.
The Japanese government and business leaders have changed in their position facing Indonesia, he said.
Previously Japanese investors tended to dictate conditions, but now investment is made in line with the requirements set by the Indonesian government, he added.
"For them investment is what they need without any conditions. It is the other way round. Not what I want but what Indonesia needs," he said
In his talks with Parker, Kalla said the New Zealand Minister offered to supply beef and milk to Indonesia.
Kalla said he he told Parker that New Zealand could increase exports of the food commodities to Indonesia, but has to be ready to compete with other countries such as Brazil Australia and India .
"New Zealand also wanted to promote trade with Indonesia and offered technology in geothermal power production," he said. (AS)
Editor: Andi Abdussalam
COPYRIGHT © ANTARA 2018
pr1v4t33r
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Asia Pacific’s Top Countries and Cities for Hotel Construction Excluding China
According to analysts at Lodging Econometrics (LE), the top countries in the Asia Pacific Construction Pipeline, excluding China, by project count are: Indonesia with 394 Projects/66,154 Rooms, Japan with 228 Projects/46,356 Rooms, India with 206 Projects/33,501 Rooms, Malaysia with 137 Projects/36,244 Rooms and Thailand with 134 Projects/31,964 Rooms.
Cities with the largest pipelines by project count are: Jakarta, Indonesia with 101 Projects/19,010 Rooms; Seoul, South Korea with 80 Projects/15,738 Rooms; Tokyo, Japan with 73 Projects/16,885 Rooms; Kuala Lumpur, Malaysia with 58 Projects/14,834 Rooms and Bangkok, Thailand with 52 Projects/11,805 Rooms.
https://www.hotel-online.com/press_...d-cities-for-hotel-construction-excluding-chi
According to analysts at Lodging Econometrics (LE), the top countries in the Asia Pacific Construction Pipeline, excluding China, by project count are: Indonesia with 394 Projects/66,154 Rooms, Japan with 228 Projects/46,356 Rooms, India with 206 Projects/33,501 Rooms, Malaysia with 137 Projects/36,244 Rooms and Thailand with 134 Projects/31,964 Rooms.
Cities with the largest pipelines by project count are: Jakarta, Indonesia with 101 Projects/19,010 Rooms; Seoul, South Korea with 80 Projects/15,738 Rooms; Tokyo, Japan with 73 Projects/16,885 Rooms; Kuala Lumpur, Malaysia with 58 Projects/14,834 Rooms and Bangkok, Thailand with 52 Projects/11,805 Rooms.
https://www.hotel-online.com/press_...d-cities-for-hotel-construction-excluding-chi
Logam42
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https://tapalbatas.detik.com
A good source for the future. The border region is going to be interesting in the years to come.
A good source for the future. The border region is going to be interesting in the years to come.
NEKONEKO
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Indonesia sneaks up on Singapore with flurry of port projects
GRESIK, Indonesia -- It may not look like much right now, but an 1,800-hectare tract of land on the eastern edge of Java symbolizes Indonesia's future.
The site, at the entrance to the busy Madura Strait, is to host the largest industrial park in East Java -- the Java Integrated Industrial and Ports Estate. It is still mostly deserted, but construction is gaining steam. And it is just one of dozens of port projects sprouting up around the country, as President Joko Widodo pushes to turn the archipelago into a fulcrum of maritime trade.
"Why do I like this area? Because it is an integrated area -- it has a port and an industrial zone," Widodo said at the opening ceremony for the first phase of the Java estate in March. "By being integrated with a deep-sea port, this park will have direct access to domestic and international markets."
After taking office in October 2014, Widodo endorsed a five-year, 700 trillion rupiah ($50.6 billion) plan to build up the maritime sector. This included 243 trillion rupiah for developing 24 "strategic ports."
Progress in the first half of his presidency was sluggish, but infrastructure development began to gather pace last year. Now, old ports are being revamped and new ones are being built as Indonesia strives to tackle its notoriously high logistics costs and become a transshipment hub capable of challenging Singapore's dominance.
The port at the Java estate will have a total berth length of 6.4km. Some sections will be deep enough to accommodate large cargo vessels with capacities up to 100,000 deadweight tons. This is expected to reduce loads at nearby Tanjung Perak, Indonesia's second-busiest port and the main logistics gateway to the nation's eastern provinces.
"At Tanjung Perak now, eight ships at a time have to queue to dock [at one spot]," a director of the estate project said in May. "Ships often have to wait for a week outside [the port] before docking. We should have [developed the new port] three or five years ago."
The integrated estate currently hosts seven small manufacturers, serving their logistics needs with a 200-meter jetty. The goal is to complete the estate by 2030, by which time the developers -- state-owned port operator Pelindo III and private partner AKR Corporindo -- expect to play host to nearly 200 companies.
Freeport Indonesia, the local unit of U.S. miner Freeport-McMoRan, is reportedly looking at the site as a potential location for its second smelter in the country.
Widodo said he wants more estates that link plants and ports, since this will bring down the logistics costs that run to the equivalent of 24% of Indonesia's gross domestic product. That is significantly higher than the figures for most other countries in the region.
The Widodo government wants to lower the number to 19% next year.
Logistics are particularly expensive in the eastern provinces, where infrastructure lags far behind other parts of the country. Port projects in remote cities like Makassar and Sorong are meant to tackle this challenge. Upgrades are needed to make room for cargo vessels, including ships operated under the president's signature Sea Highways program, which regularly sends goods to designated ports nationwide at subsidized cost.
Indonesia's 17,000 islands are home to more than 1,200 ports -- including around 110 cargo bases run by four state-owned companies, Pelindo I through IV. But past infrastructure development focused heavily on roads, leaving many aging ports with insufficient capacity. Sea transport currently accounts for just 6% of Indonesia's freight traffic, versus 45% by land and 30% by air.
The World Bank studied 18 Indonesian ports and, in a note issued in January, said they suffer from a "critical infrastructure gap."
"The quality of ports' infrastructure across the country is a weak factor in the overall country's competitiveness," the bank wrote.
Indonesia's port quality ranks 72nd in the latest Global Competitiveness Index issued by the World Economic Forum -- below neighbors Singapore, Malaysia and Thailand.
There are signs Indonesia is moving in the right direction. Transportation Minister Budi Sumadi said Tanjung Priok, the country's busiest port in Jakarta, has seen a throughput increase of 1 million 20-foot equivalent units a year following the completion of its first expansion phase.
"And after Kuala Tanjung starts operating, my target is to increase [Indonesia's] throughput by 3 million TEUs this year," Sumadi said last month, referring to another port in north Sumatra. He added that some of the extra volume is expected to come over from Singapore and Malaysia.
Over the past two years, Indonesia also has been developing bonded logistics centers across the country -- offering to waive import duties for goods stored in the centers. The head of the customs and excise office said in April that the new policy has drawn $606 million worth of inventory away from Singapore.
Zaldy Masita, chairman of the Indonesian Logistics Association, said the centers are prompting a growing number of companies to move warehouses from the city-state. "We've received information from our partners that they've been offered discounts to [keep their cargo] in Singapore," Masita told reporters in April. "[The policy] is starting to change the logistics landscape in Southeast Asia."
Funding is an issue, however.
The government has said the state budget can cover only a third of the 4,800 trillion rupiah worth of infrastructure needed in the 2015 to 2019 period. Officials in Jakarta have been actively inviting other countries to invest in ports.
The Netherlands' Port of Rotterdam Authority provided consulting to Pelindo I on the first development phase of Kuala Tanjung, and is reportedly planning to invest in the next phase. Last November, the Japanese government signed a 118.9 billion yen ($1 billion) loan for the construction of the Patimban deep-sea port, with a consortium of Japanese and Indonesian companies landing the construction contract. Singaporean port operator PSA International has been involved in one project and may soon join another.
But China's Belt and Road infrastructure initiative is perhaps Indonesia's biggest hope.
Widodo has repeatedly said his maritime vision can complement the Belt and Road. Beijing has expressed some interest in port investment: Ningbo Zhoushan Port and China Communications Construction Engineering Indonesia have signed memorandums of understanding with Indonesian port operators to jointly develop New Priok and Kendal International Port, respectively.
Yet no actual investments are known to have been made. Indonesia's Chief Maritime Minister Luhut Panjaitan was dispatched to Beijing in April to reiterate calls to invest in the Kuala Tanjung and Bitung international hub ports. He said he brought home $23.3 billion worth of deals -- but none for the port projects.
Some analysts think Indonesia is not a priority on the Belt and Road. "China has more immediate incentives to strengthen its trade routes in its neighboring countries first that are not separated by seas," brokerage Reliance Sekuritas Indonesia said in a note.
Nevertheless, Massimiliano Cali, senior economist for macro trade and investment at the World Bank, said financing may not be the key issue for major projects like Kuala Tanjung and Patimban.
"While it is true that these are big projects, their financing should not be a key constraint to the extent that they are commercially viable," Cali told the Nikkei Asian Review. "And both projects appear to have the potential to receive substantial traffic, which can eventually allow the repayment of the development costs."
Financing issues aside, Teuku Rezasyah, an international relations lecturer at Indonesia's Padjadjaran University, said the country must be cautious about allowing access to its ports. He specifically pointed to projects offered to China for Belt and Road investment that are located in areas with direct access to the disputed South China Sea.
The Belt and Road "can't be merely about infrastructure development; it has more strategic goals related directly to the South China Sea," Rezasyah said. "The Indonesian government is now being too hungry for investment ... but it must be extra careful."
Experts also stress Indonesia has a long way to go before it can expect to snatch significant chunks of the transshipment market from Singapore. And given the number of ongoing and planned port projects, there is concern about counterproductive competition.
"Ports in the region need to [take] a collaborative view and not a competitive one to gain collective advantages," said Gopal R, global vice president for transportation and logistics practice at Frost & Sullivan. "If the ports pitch one against another in the region, the advantage will only be incremental growth and not sustainable growth."
Despite the various worries, Widodo has another reason to push the port projects: the presidential election in April 2019.
The government is eager to show tangible progress before voters go to the polls. Despite delays in starting construction, a portion of the $3 billion Patimban project, which lies 120km east of Jakarta, is supposed to open next March.
Haste is the name of the game. Other infrastructure projects on densely populated Java have been rushed to meet deadlines and show voters that Widodo delivers results.
A new international airport in West Java, Indonesia's most populous province, and much of a new Trans-Java toll road are expected to be ready for the Islamic holiday of Idul Fitri later this week, when millions of people will travel to their hometowns.
source
GRESIK, Indonesia -- It may not look like much right now, but an 1,800-hectare tract of land on the eastern edge of Java symbolizes Indonesia's future.
The site, at the entrance to the busy Madura Strait, is to host the largest industrial park in East Java -- the Java Integrated Industrial and Ports Estate. It is still mostly deserted, but construction is gaining steam. And it is just one of dozens of port projects sprouting up around the country, as President Joko Widodo pushes to turn the archipelago into a fulcrum of maritime trade.
"Why do I like this area? Because it is an integrated area -- it has a port and an industrial zone," Widodo said at the opening ceremony for the first phase of the Java estate in March. "By being integrated with a deep-sea port, this park will have direct access to domestic and international markets."
After taking office in October 2014, Widodo endorsed a five-year, 700 trillion rupiah ($50.6 billion) plan to build up the maritime sector. This included 243 trillion rupiah for developing 24 "strategic ports."
Progress in the first half of his presidency was sluggish, but infrastructure development began to gather pace last year. Now, old ports are being revamped and new ones are being built as Indonesia strives to tackle its notoriously high logistics costs and become a transshipment hub capable of challenging Singapore's dominance.
The port at the Java estate will have a total berth length of 6.4km. Some sections will be deep enough to accommodate large cargo vessels with capacities up to 100,000 deadweight tons. This is expected to reduce loads at nearby Tanjung Perak, Indonesia's second-busiest port and the main logistics gateway to the nation's eastern provinces.
"At Tanjung Perak now, eight ships at a time have to queue to dock [at one spot]," a director of the estate project said in May. "Ships often have to wait for a week outside [the port] before docking. We should have [developed the new port] three or five years ago."
The integrated estate currently hosts seven small manufacturers, serving their logistics needs with a 200-meter jetty. The goal is to complete the estate by 2030, by which time the developers -- state-owned port operator Pelindo III and private partner AKR Corporindo -- expect to play host to nearly 200 companies.
Freeport Indonesia, the local unit of U.S. miner Freeport-McMoRan, is reportedly looking at the site as a potential location for its second smelter in the country.
Widodo said he wants more estates that link plants and ports, since this will bring down the logistics costs that run to the equivalent of 24% of Indonesia's gross domestic product. That is significantly higher than the figures for most other countries in the region.
The Widodo government wants to lower the number to 19% next year.
Logistics are particularly expensive in the eastern provinces, where infrastructure lags far behind other parts of the country. Port projects in remote cities like Makassar and Sorong are meant to tackle this challenge. Upgrades are needed to make room for cargo vessels, including ships operated under the president's signature Sea Highways program, which regularly sends goods to designated ports nationwide at subsidized cost.
Indonesia's 17,000 islands are home to more than 1,200 ports -- including around 110 cargo bases run by four state-owned companies, Pelindo I through IV. But past infrastructure development focused heavily on roads, leaving many aging ports with insufficient capacity. Sea transport currently accounts for just 6% of Indonesia's freight traffic, versus 45% by land and 30% by air.
The World Bank studied 18 Indonesian ports and, in a note issued in January, said they suffer from a "critical infrastructure gap."
"The quality of ports' infrastructure across the country is a weak factor in the overall country's competitiveness," the bank wrote.
Indonesia's port quality ranks 72nd in the latest Global Competitiveness Index issued by the World Economic Forum -- below neighbors Singapore, Malaysia and Thailand.
There are signs Indonesia is moving in the right direction. Transportation Minister Budi Sumadi said Tanjung Priok, the country's busiest port in Jakarta, has seen a throughput increase of 1 million 20-foot equivalent units a year following the completion of its first expansion phase.
"And after Kuala Tanjung starts operating, my target is to increase [Indonesia's] throughput by 3 million TEUs this year," Sumadi said last month, referring to another port in north Sumatra. He added that some of the extra volume is expected to come over from Singapore and Malaysia.
Over the past two years, Indonesia also has been developing bonded logistics centers across the country -- offering to waive import duties for goods stored in the centers. The head of the customs and excise office said in April that the new policy has drawn $606 million worth of inventory away from Singapore.
Zaldy Masita, chairman of the Indonesian Logistics Association, said the centers are prompting a growing number of companies to move warehouses from the city-state. "We've received information from our partners that they've been offered discounts to [keep their cargo] in Singapore," Masita told reporters in April. "[The policy] is starting to change the logistics landscape in Southeast Asia."
Funding is an issue, however.
The government has said the state budget can cover only a third of the 4,800 trillion rupiah worth of infrastructure needed in the 2015 to 2019 period. Officials in Jakarta have been actively inviting other countries to invest in ports.
The Netherlands' Port of Rotterdam Authority provided consulting to Pelindo I on the first development phase of Kuala Tanjung, and is reportedly planning to invest in the next phase. Last November, the Japanese government signed a 118.9 billion yen ($1 billion) loan for the construction of the Patimban deep-sea port, with a consortium of Japanese and Indonesian companies landing the construction contract. Singaporean port operator PSA International has been involved in one project and may soon join another.
But China's Belt and Road infrastructure initiative is perhaps Indonesia's biggest hope.
Widodo has repeatedly said his maritime vision can complement the Belt and Road. Beijing has expressed some interest in port investment: Ningbo Zhoushan Port and China Communications Construction Engineering Indonesia have signed memorandums of understanding with Indonesian port operators to jointly develop New Priok and Kendal International Port, respectively.
Yet no actual investments are known to have been made. Indonesia's Chief Maritime Minister Luhut Panjaitan was dispatched to Beijing in April to reiterate calls to invest in the Kuala Tanjung and Bitung international hub ports. He said he brought home $23.3 billion worth of deals -- but none for the port projects.
Some analysts think Indonesia is not a priority on the Belt and Road. "China has more immediate incentives to strengthen its trade routes in its neighboring countries first that are not separated by seas," brokerage Reliance Sekuritas Indonesia said in a note.
Nevertheless, Massimiliano Cali, senior economist for macro trade and investment at the World Bank, said financing may not be the key issue for major projects like Kuala Tanjung and Patimban.
"While it is true that these are big projects, their financing should not be a key constraint to the extent that they are commercially viable," Cali told the Nikkei Asian Review. "And both projects appear to have the potential to receive substantial traffic, which can eventually allow the repayment of the development costs."
Financing issues aside, Teuku Rezasyah, an international relations lecturer at Indonesia's Padjadjaran University, said the country must be cautious about allowing access to its ports. He specifically pointed to projects offered to China for Belt and Road investment that are located in areas with direct access to the disputed South China Sea.
The Belt and Road "can't be merely about infrastructure development; it has more strategic goals related directly to the South China Sea," Rezasyah said. "The Indonesian government is now being too hungry for investment ... but it must be extra careful."
Experts also stress Indonesia has a long way to go before it can expect to snatch significant chunks of the transshipment market from Singapore. And given the number of ongoing and planned port projects, there is concern about counterproductive competition.
"Ports in the region need to [take] a collaborative view and not a competitive one to gain collective advantages," said Gopal R, global vice president for transportation and logistics practice at Frost & Sullivan. "If the ports pitch one against another in the region, the advantage will only be incremental growth and not sustainable growth."
Despite the various worries, Widodo has another reason to push the port projects: the presidential election in April 2019.
The government is eager to show tangible progress before voters go to the polls. Despite delays in starting construction, a portion of the $3 billion Patimban project, which lies 120km east of Jakarta, is supposed to open next March.
Haste is the name of the game. Other infrastructure projects on densely populated Java have been rushed to meet deadlines and show voters that Widodo delivers results.
A new international airport in West Java, Indonesia's most populous province, and much of a new Trans-Java toll road are expected to be ready for the Islamic holiday of Idul Fitri later this week, when millions of people will travel to their hometowns.
source
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Govt opens bridge on Batang-Semarang toll road
Public Works and Housing Minister Basuki Hadimuljono inaugurated on Wednesday, June 13, 2018, the Kali Kuto Bridge for temporary operations, completing the construction of the Batang-Semarang functional highway in Central Java. (JP/Suherdjoko)
Public Works and Housing Minister Basuki Hadimuljono inaugurated on Wednesday the Kali Kuto Bridge for temporary operations, completing the construction of the Batang-Semarang functional highway in Central Java.
The bridge was built above the Kuto River bordering Batang and Kendal regencies in Central Java.
The bridge will be closed after the Idul Fitri holiday as further construction will resume. The bridge will be fully operational on Oct. 5.
“We are only opening one lane for now, but we will open two if there is a queue,” Basuki said.
Central Java Police chief Insp. Gen. Condro Kirono said travelers could now drive directly from Batang to Semarang without exiting the highway until June 7.
However, Condro said from June 8 to 24, travelers could only use the bridge to travel from Semarang to Batang to ease congestion and reduce possibilities of accidents along the highway.
During the launch on Wednesday, minister Basuki drove a 12-wheeler truck across the bridge, followed by around 15 cars, in an effort to show that the government had ensured the safety of the construction following several bridge and highway collapses in several regions in the past two months.
Bambang Rianto, operation director II of state-owned construction company Waskita Karya, said the 100-meter section of the bridge directly above the river could withstand up to 16 tons, adding that the steel beams would be replaced with concrete after the holiday. (nor/gda)
- Suherdjoko
The Jakarta Post
Public Works and Housing Minister Basuki Hadimuljono inaugurated on Wednesday the Kali Kuto Bridge for temporary operations, completing the construction of the Batang-Semarang functional highway in Central Java.
The bridge was built above the Kuto River bordering Batang and Kendal regencies in Central Java.
The bridge will be closed after the Idul Fitri holiday as further construction will resume. The bridge will be fully operational on Oct. 5.
“We are only opening one lane for now, but we will open two if there is a queue,” Basuki said.
Central Java Police chief Insp. Gen. Condro Kirono said travelers could now drive directly from Batang to Semarang without exiting the highway until June 7.
However, Condro said from June 8 to 24, travelers could only use the bridge to travel from Semarang to Batang to ease congestion and reduce possibilities of accidents along the highway.
During the launch on Wednesday, minister Basuki drove a 12-wheeler truck across the bridge, followed by around 15 cars, in an effort to show that the government had ensured the safety of the construction following several bridge and highway collapses in several regions in the past two months.
Bambang Rianto, operation director II of state-owned construction company Waskita Karya, said the 100-meter section of the bridge directly above the river could withstand up to 16 tons, adding that the steel beams would be replaced with concrete after the holiday. (nor/gda)
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China imports NTT`s skipjack tuna to test local market
Minggu, 17 Juni 2018 14:00 WIB - 0 Views
Reporter: Aloysius Lewokeda
Cakalang fish is being prepared to be smoked in a smoked fish cottage industry in Jakarta (ANTARA photo/Zabur Karuru)
Kupang (ANTARA News) - China imported 20 kilogram (kg) skipjack tuna (cakalang) from East Nusa Tenggara (NTT) to test the interest of its local market in the commodity, a local official said.
"China imported the commodity to see the interest of local market. Therefore, it imported only 20 kg last month," Fish Quarantine and Quality Control (KIPM) Head of Kupang, Jimmy Elwaren, said here on Sunday.
He said China usually ordered only a small quantity of commodity to test its market. Cakalang is one of the primary commodities of NTT.
If the cakalang fish or skipjack tuna meets the interest of the local market, China will likely order in large quantity of the fish, he said.
The quarantine official gave an example when China imported loin tuna in small volume in March when it only ordered 10 kg but in May its demand for the commodity rose to 10 tons.
Jimmy said that entering 2018, NTT`s fishery product exports were dominated by frozen octopus, amounting to 15.8 tons. They were exported in February 2018.
He said that the request of China for NTT`s cakalang fish was for the first time since the past few years. Over the last two years, China had no demand for NTT`s fishery products.
So far, Japan has dominated demand for NTT`s Calang fish such as in 2017 when the country imported a total of 158 tons of cakalang fish.
Editor: Andi Abdussalam
COPYRIGHT © ANTARA 2018
Minggu, 17 Juni 2018 14:00 WIB - 0 Views
Reporter: Aloysius Lewokeda
Cakalang fish is being prepared to be smoked in a smoked fish cottage industry in Jakarta (ANTARA photo/Zabur Karuru)
Kupang (ANTARA News) - China imported 20 kilogram (kg) skipjack tuna (cakalang) from East Nusa Tenggara (NTT) to test the interest of its local market in the commodity, a local official said.
"China imported the commodity to see the interest of local market. Therefore, it imported only 20 kg last month," Fish Quarantine and Quality Control (KIPM) Head of Kupang, Jimmy Elwaren, said here on Sunday.
He said China usually ordered only a small quantity of commodity to test its market. Cakalang is one of the primary commodities of NTT.
If the cakalang fish or skipjack tuna meets the interest of the local market, China will likely order in large quantity of the fish, he said.
The quarantine official gave an example when China imported loin tuna in small volume in March when it only ordered 10 kg but in May its demand for the commodity rose to 10 tons.
Jimmy said that entering 2018, NTT`s fishery product exports were dominated by frozen octopus, amounting to 15.8 tons. They were exported in February 2018.
He said that the request of China for NTT`s cakalang fish was for the first time since the past few years. Over the last two years, China had no demand for NTT`s fishery products.
So far, Japan has dominated demand for NTT`s Calang fish such as in 2017 when the country imported a total of 158 tons of cakalang fish.
Editor: Andi Abdussalam
COPYRIGHT © ANTARA 2018
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Jakarta ranks 'average' liveability, lacks pedestrian facilities: Survey
NEWS DESK
THE JAKARTA POST
Jakarta | Mon, February 5, 2018 | 06:36 pm
NEWS DESK
THE JAKARTA POST
Jakarta | Mon, February 5, 2018 | 06:36 pm
- kompas.com, pedestrian facilities were one of the many aspects that Jakarta needed to address, following the release of the IAP's 2017 Most Liveable City Index (MLCI) survey.
The survey was conducted across 19 provinces and 26 cities in the country on aspects such as housing, security, the local economy and facilitation of economic activities, the informal sector, city politics and city parks.
According to the survey, Jakarta ranks as an "average tier city", or a city that has an average liveability index.
Read also: Stanford study reveals Indonesians laziest walkers in the world
Scoring 62.6 on the 2017 MLCI, the capital city's performance saw an increase compared to the MLCI surveys in 2009, 2011 and 2014, which ranked Jakarta among the bottom tier cities. The latests accomplishment is still below expectations, as with a population of more than 10 million, the capital should rank among the top-tier cities, or those with a liveability index of above average.
IAP head Dhani Muttaqin said on Thursday that developments in pedestrian facilities had seen a significant improvement in the past three years. For example, illegal parking was no longer seen on Jl. Melawai and Jl. Mahakam, which now have a dedicated space for pedestrians.
Dhani was hopeful that such improvements would not only be seen in one or two areas, especially since the city would soon open its MRT and light rail transit (LRT) facilities.
"We have identified some critical locations that need [adequate pedestrian facilities], where many people walk to change transportation or transit modes," said Dhani. He added that the city administration should pay attention to the liveability index, as it was an important tool for boosting residents' productivity and the city's efficiency. (wir/kes)
http://www.thejakartapost.com/life/...ks-adequate-pedestrian-facilities-survey.html
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S Korea to build electric cable factory in Indonesia
https://en.antaranews.com/news/116196/s-korea-to-build-electric-cable-factory-in-indonesia
https://en.antaranews.com/news/116196/s-korea-to-build-electric-cable-factory-in-indonesia
Logam42
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This is great, in PNG and Oceania they celebrate that Australia would 'gift' them noble connections. In Indonesia we produce it ourselves. Perhaps still a foreign company, but they operate with Indonesian manpower, under Indonesian laws, and cooperate with Indonesian companies.
__________
BI Prepares Strategies to Face US Interest Rate Hike
TEMPO.CO, Jakarta - Bank Indonesia (BI) governor Perry Warjiyo said he will respond to US and Europe central banks` interest rate hike policies by making pre-emptive, front loading, and ahead-of-the-curve policies.
Perry said BI's policies may take form as an interest rate hike coupled with relaxations in loan-to-value (LTV) to boost the housing sector.
"We will also continue with applying double interventions, loose liquidity, and intensive communication," he said in an official statement on Tuesday, June 19.
Bank Indonesia's new governor, Perry Warjiyo. REUTERS/Willy Kurniawan
Perry said BI and the OJK will enhance coordination to maintain stability and encourage growth. The central bank believes Indonesia's economy is still robust, especially in terms of financial market assets that remain attractive to investors.
Bank Indonesia will hold its board of governors' meeting on June 27 and 28. In the last meeting, the central bank decided to increase the 7-Day Repo Rate (7DRR) benchmark interest rate to 4.75 percent.
Bisnis.com
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Zero Complaint of Delay, Soekarno-Hatta Airport Service Praised
https://en.tempo.co/read/news/2018/...-Delay-Soekarno-Hatta-Airport-Service-Praised
https://en.tempo.co/read/news/2018/...-Delay-Soekarno-Hatta-Airport-Service-Praised
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Weapons Sales in Indonesia increased to 102 USD Million in 2017 from 94 USD Million in 2016. Weapons Sales in Indonesia averaged 23.05 USD Million from 1963 until 2017, reaching an all time high of 102 USD Million in 2017 and a record low of 1 USD Million in 2008.
Weapons Sales are presented as a Trend-Indicator Value based on the known unit production costs of a core set of weapons such as aircraft, air defence systems, anti-submarine warfare weapons, armoured vehicles, artillery, engines, missiles, sensors, satellites, ships and others. The indicator aims to represent the transfer value of military resources rather than the financial value of the transfer. Indonesia Weapons Sales - actual data, historical chart and calendar of releases - was last updated on June of 2018.
source : Link
Weapons Sales are presented as a Trend-Indicator Value based on the known unit production costs of a core set of weapons such as aircraft, air defence systems, anti-submarine warfare weapons, armoured vehicles, artillery, engines, missiles, sensors, satellites, ships and others. The indicator aims to represent the transfer value of military resources rather than the financial value of the transfer. Indonesia Weapons Sales - actual data, historical chart and calendar of releases - was last updated on June of 2018.
source : Link
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