pr1v4t33r
SENIOR MEMBER
- Joined
- Nov 20, 2014
- Messages
- 5,042
- Reaction score
- 5
- Country
- Location
Comrade, if you like, u can post "illegal fishing (IUU) related topic" here:
Indonesia Navy blow up 3 illegal vietnamese fishing boat - bookmark this page
Indonesia Economy Forum
- Thread starter Pirupiru
- Start date
Comrade, if you like, u can post "illegal fishing (IUU) related topic" here:
Indonesia Navy blow up 3 illegal vietnamese fishing boat - bookmark this page
MarveL
FULL MEMBER
- Joined
- Nov 30, 2013
- Messages
- 1,166
- Reaction score
- 4
- Country
- Location
ok. thanks
Another 30 countries to be given visa-free entry to Indonesia next year
Mimi Hudoyo, Jakarta, June 25, 2015
INDONESIA is planning to grant 30 more countries visa-free facilities next year in a bid to grow arrivals, the country announced in less than two weeks since it waived visa requirements for 30 countries.
Speaking at closed-door meeting on tourism with president Joko Widodo and tourism stakeholders yesterday, Indonesia’s tourism minister Arief Yahya said: “The president has instructed me, and invited the tourism industry to give their input, on giving another 30 countries visa-free entry to Indonesia.”
“The point of the visa-free facility is, first of all, to improve service standards and secondly, to compete with other countries,” he elaborated. “Malaysia has granted the facility to 164 countries and Thailand, 56 countries. With the latest additional 30 countries getting the visa waiver, we are currently giving 45 countries the facility.”
Indonesia’s recent move to lift visa requirements for 30 countries is expected to add another one million arrivals in the next 12 months or 500,000 arrivals for 2015.
“Our arrival target this year is 10 million so we expect to reach 10.5 million with the new visa policy,” Arief said, adding that the extra revenue generated could reach US$1 billion in a year or US$500 million this year.
Indonesia’s immigration law stipulates visa-free entry for another country can only be granted in cases where there is reciprocity.
Commenting on this, Arief said: “The law is still valid. However, reciprocity is like a chicken-and-egg scenario. (Indonesia can offer this first), after which the Ministry of Foregn Affairs can then approach these countries to give Indonesians visa-free entry.”
But he pointed out that the higher the number of countries giving Indonesia free entry, the bigger the chance that the foreign exchange rate of the rupiah would be adversely affected “as more Indonesians will spend money overseas”.
Another 30 countries to be given visa-free entry to Indonesia next year - TTG Asia - Leader in Hotel, Airlines, Tourism and Travel Trade News
acelaw
FULL MEMBER
- Joined
- Oct 31, 2014
- Messages
- 224
- Reaction score
- 0
- Country
- Location
Indonesia set to become fourth-largest economy
TOKYO -- If you are a business owner trying to decide which Asian country to invest in, it might help to know that Indonesia is on track to become the world's fourth-largest economy in 2050.
According to a forecast released this week by the Economist Intelligence Unit, Asian economies are leading the way with Indonesia, China, India and Japan expected to be in the world's top five economies in terms of nominal gross domestic product.
The projection is intended to help companies make strategic business decisions over the long term, taking into account factors such as the availability of an educated workforce, the openness of the economy, the legal framework and quality of bureaucracy.
Indonesia's and Mexico's economies, which were ranked 16th and 15th respectively in 2014, will move up to fourth and eighth, knocking Italy and Russia out of the top ten.
http://asia.nikkei.com/Politics-Econ...argest-economy
TOKYO -- If you are a business owner trying to decide which Asian country to invest in, it might help to know that Indonesia is on track to become the world's fourth-largest economy in 2050.
According to a forecast released this week by the Economist Intelligence Unit, Asian economies are leading the way with Indonesia, China, India and Japan expected to be in the world's top five economies in terms of nominal gross domestic product.
The projection is intended to help companies make strategic business decisions over the long term, taking into account factors such as the availability of an educated workforce, the openness of the economy, the legal framework and quality of bureaucracy.
Indonesia's and Mexico's economies, which were ranked 16th and 15th respectively in 2014, will move up to fourth and eighth, knocking Italy and Russia out of the top ten.
http://asia.nikkei.com/Politics-Econ...argest-economy
MarveL
FULL MEMBER
- Joined
- Nov 30, 2013
- Messages
- 1,166
- Reaction score
- 4
- Country
- Location
Indonesia bids to muffle noisy mosques
Vice-president sets up team to sample loudspeaker noise, with view to getting country’s 800,000 mosques to emit ‘more harmonious, melodious sound’
There is often a ‘loudspeaker war’ between mosques in the same area vying to outdo each other, the vice-president’s spokesman said. Photograph: Bay Ismoyo/AFP/Getty Images
Indonesia has set up a new team to reduce noise from mosques, an official said on Thursday, as places of worship go into overdrive during the Muslim holy month of Ramadan.
There are about 800,000 mosques in the world’s most populous Muslim-majority country, but residents living nearby have long complained that their speakers are too loud.
Places of worship become particularly active during Ramadan, which this year runs from mid-June to mid-July, when mosques blare out religious sermons even earlier than usual.
In an attempt to tackle the issue, Indonesia’s vice-president, Jusuf Kalla, who also heads of an umbrella group for many of its mosques, has formed a team to sample the noise from mosque loudspeakers across the country, his spokesman Husain Abdullah said.
“The idea is for mosques to turn down the volume a little so that the sound can be heard only by residents in the immediate area,” he said, adding that the aim was to have a “more harmonious, melodious sound coming from mosques”.
He also said that mosques should ensure that the sounds they produced did not clash with other local noise. There was often a “loudspeaker war” between places of worship in the same area trying to outdo each other, he said.
The group, set up earlier this month, has already collected many samples and will send a report to the vice-president, who plans to sit down with Indonesia’s top Muslim clerical body and Islamic organisations and discuss how to tackle the issue.
The group will complement a previous initiative, which saw about 100 teams of technicians deployed across the country to help fine-tune mosque loudspeakers and give advice on how best to arrange them to reduce noise.
Abdullah acknowledged that regulating the country’s noisy mosques would be difficult and called on the Indonesian Council of Ulema to issue a fatwa on the issue.
Indonesia bids to muffle noisy mosques | World news | The Guardian
MarveL
FULL MEMBER
- Joined
- Nov 30, 2013
- Messages
- 1,166
- Reaction score
- 4
- Country
- Location
Sondakh to make Indonesia's Rajawali global player in food supply
Monday, 29 June 2015
By: IZWAN IDRIS
Tan Sri Peter Sondakh(inset), the Indonesian billionaire, made his fame and fortune turning around sickly state-owned enterprises into hugely profitable companies. Now, the Rajawali Group chairman and chief executive officer(inset) told StarBis he is interested in making his company a global giant in the palm oil business.
JAKARTA: Tan Sri Peter Sondakh, the Indonesian billionaire, made his fame and fortune turning around sickly state-owned enterprises into hugely profitable companies.
He launched in 1986 Indonesia’s first private television company and rolled out Asia’s first prepaid telecommunication services in 1997 – at the onset of the Asian financial crisis.
He rescued a cigarette maker from the brink of bankruptcy and made Semen Gresik – now Semen Indonesia – the number one player in the country’s cement industry.
Now, the Rajawali Group chairman and chief executive officer has set his sight on making his company a global giant in the palm oil business.
His gameplan may even help Felda Global Ventures Holdings Bhd (FGV) reverse its own waning fortune.
“I am hoping that FGV will make a lot of money from this deal,” he told StarBiz at his office in central Jakarta’s business district recently.
He talks about the potential synergy between the two companies. Rajawali’s Eagle High Plantations Tbk has a lot of land, 425,000 ha, scattered across Indonesia, while FGV had the experience in the downstream side of the business.
“If not in Indonesia where else can it (FGV) grow?” Sondakh asked.
He also dismissed claims that proceeds from the exercise – FGV is paying close to RM2.8bil for a stake in Rajawali’s plantation business – will be used to purchase assets from 1Malaysia Development Bhd (1MDB) projects.
“I am not investing in new property projects in Malaysia. Maybe in other things, but not property,” he said.
His focus is to build in Indonesia.
In Jakarta, near its headquarters, the Rajawali Group is completing work on its latest luxury hotel – the St Regis Jakarta – which is scheduled to open next year.
Sondakh is ranked sixth richest in Indonesia by Forbes with an estimated net worth of US$2.3bil (RM8.6bil). That gave him a lot of clout in a region where business and politics often mix.
“I always work with an institution in my joint ventures,” he said.
FGV on June 12 announced it had entered into heads of agreement with Sondakh’s Rajawali group to acquire a 37% stake in PT Eagle High plantations Tbk for US$680mil. It is also buying Rajawali’s sugar cane plantation for US$67mil.
Eagle High has a total land bank of 425,000ha – in Kalimantan, Papua New Guinea (PNG) and Sulawesi. About 160,000 ha of its land had been planted.
Sondakh sees PNG as the game changer for the industry. It huge land mass and proximity to China – the biggest market for palm oil products – makes the area the hottest plantation spot for global players.
Sime Darby Bhd in October last year bought New Britain Palm Oil Ltd, which has 135,000 ha of plantation land in PNG for US$1.74bil.
It was a missed opportunity for FGV.
The company, which had seen its profits tumbling in recent quarters, said the partnership with Rajawali will transform the company into one of the world’s largest fully integrated oil palm plantation companies.
Presidential blessing
Sondakh said he had met President Joko “Jokowi” Widodo over the deal with FGV, and he said the president was keen on the tie-up as an opportunity to improve the living standards of more than 2 million Indonesia farmers.
Sondakh’s close relationship with the top office in Indonesia goes back a long way since the days of President Sukarno.
“I know Megawati Sukarnoputri since we were younger,” he said. Megawati was Indonesia’s fourth president and a daughter of Sukarno.
Sondakh came from a family that had been in the commodity business since the 1960s. They were first in the coconut business, which Sondakh took over in 1984.
Later in 1986, he started Indonesia’s first private television network Rajawali Citra Televisi Indonesia (RCTI) with Bambang Trihatmodjo, one of the sons of then President Suharto.
Sondakh no longer owns RCTI, but he is making a comeback in the broadcasting industry with the launch of Rajawali TV in May this year.
His partnership with the president’s son brought him closer to the administration. In 1991, Sondakh was called in to take over debt-laden cigarette maker Bentoel Group from its private owners.
Reluctant at first, Sondakh decided to give it a go after some persuasion. Bentoel’s debt restructuring process took six painful years, but by March 1997 the company had paid off all its foreign borrowings.
That timely decision spared the company the worst of the wild currency swings during the Asian financial crisis of 1997/98. Bentoel was listed in 2000 and later acquired by British American Tobacco for US$700mil.
While Sondakh was keep busy putting Bentoel’s financials in order, he was again asked by the government in 1996 to take over a fledgling telco.
Seizing the opportunity, he launched Asia’s first prepaid services in 1997 and by 2002 had gained a 15% subscriber market share in Indonesia.
In 2005, Sondakh sold part of the company PT Excelcomindo Pramata (XL) to Telekom Malaysia Bhd.
The next year, he was tasked by then President Susilo Bambang Yudhoyono to buy out Mexican Cemex Group’s 25% stake in Semen Gresik – a listed cement producer.
Sondakh put down his own money and ended up with a 25% stake in Semen Gresik, while the Indonesian government holds 51% of the company.
He asked for full management control to turn around the company and by the time he sold out his stake in March 2010 the stock had risen from 1,800 rupiah in July 2006 to 7,000 rupiah.
The company, which had changed its name to Semen Indonesia and controls a 42% market share in the country, is currently trading at around 12,000 rupiah.
“I believe in creating values for our partners,” Sondakh said.
Indonesia, with its abundance of natural resources and healthy demographics, should be a magnet for foreign investment, but a slew of obstacles make it a tough sell for investors to come in.
For plantation companies, buying huge tract of land in Indonesia is never easy nor cheap. The law stipulated that only listed companies can own more than 100,000 ha of plantation land. This puts a huge valuation premium of listed planters.
First Resources Ltd, which has 190,000 ha in Indonesia, is currently traded at about US$17,000 per ha.
A recent selldown on Bumitama Agro Ltd pushed down its valuation at just about US$15,000 per ha. Bumitama is 31% owned by IOI Corp Bhd.
The valuations are “without any deal premium,” said Arief Sidarto, an executive advisor to the chairman at Rajawali group.
“This deal with FGV is transformational. Others are watching,’’ he said.
As it is, both Rajawali and FGV are completing a due diligence process. The biggest task for FGV now is to convince its shareholders that this deal with Rajawali will be beneficial to them.
The company is likely to seek its shareholders’ approval in August.
Sondakh to make Indonesia's Rajawali global player in food supply - Business News | The Star Online
Monday, 29 June 2015
By: IZWAN IDRIS
Tan Sri Peter Sondakh(inset), the Indonesian billionaire, made his fame and fortune turning around sickly state-owned enterprises into hugely profitable companies. Now, the Rajawali Group chairman and chief executive officer(inset) told StarBis he is interested in making his company a global giant in the palm oil business.
JAKARTA: Tan Sri Peter Sondakh, the Indonesian billionaire, made his fame and fortune turning around sickly state-owned enterprises into hugely profitable companies.
He launched in 1986 Indonesia’s first private television company and rolled out Asia’s first prepaid telecommunication services in 1997 – at the onset of the Asian financial crisis.
He rescued a cigarette maker from the brink of bankruptcy and made Semen Gresik – now Semen Indonesia – the number one player in the country’s cement industry.
Now, the Rajawali Group chairman and chief executive officer has set his sight on making his company a global giant in the palm oil business.
His gameplan may even help Felda Global Ventures Holdings Bhd (FGV) reverse its own waning fortune.
“I am hoping that FGV will make a lot of money from this deal,” he told StarBiz at his office in central Jakarta’s business district recently.
He talks about the potential synergy between the two companies. Rajawali’s Eagle High Plantations Tbk has a lot of land, 425,000 ha, scattered across Indonesia, while FGV had the experience in the downstream side of the business.
“If not in Indonesia where else can it (FGV) grow?” Sondakh asked.
He also dismissed claims that proceeds from the exercise – FGV is paying close to RM2.8bil for a stake in Rajawali’s plantation business – will be used to purchase assets from 1Malaysia Development Bhd (1MDB) projects.
“I am not investing in new property projects in Malaysia. Maybe in other things, but not property,” he said.
His focus is to build in Indonesia.
In Jakarta, near its headquarters, the Rajawali Group is completing work on its latest luxury hotel – the St Regis Jakarta – which is scheduled to open next year.
Sondakh is ranked sixth richest in Indonesia by Forbes with an estimated net worth of US$2.3bil (RM8.6bil). That gave him a lot of clout in a region where business and politics often mix.
“I always work with an institution in my joint ventures,” he said.
FGV on June 12 announced it had entered into heads of agreement with Sondakh’s Rajawali group to acquire a 37% stake in PT Eagle High plantations Tbk for US$680mil. It is also buying Rajawali’s sugar cane plantation for US$67mil.
Eagle High has a total land bank of 425,000ha – in Kalimantan, Papua New Guinea (PNG) and Sulawesi. About 160,000 ha of its land had been planted.
Sondakh sees PNG as the game changer for the industry. It huge land mass and proximity to China – the biggest market for palm oil products – makes the area the hottest plantation spot for global players.
Sime Darby Bhd in October last year bought New Britain Palm Oil Ltd, which has 135,000 ha of plantation land in PNG for US$1.74bil.
It was a missed opportunity for FGV.
The company, which had seen its profits tumbling in recent quarters, said the partnership with Rajawali will transform the company into one of the world’s largest fully integrated oil palm plantation companies.
Presidential blessing
Sondakh said he had met President Joko “Jokowi” Widodo over the deal with FGV, and he said the president was keen on the tie-up as an opportunity to improve the living standards of more than 2 million Indonesia farmers.
Sondakh’s close relationship with the top office in Indonesia goes back a long way since the days of President Sukarno.
“I know Megawati Sukarnoputri since we were younger,” he said. Megawati was Indonesia’s fourth president and a daughter of Sukarno.
Sondakh came from a family that had been in the commodity business since the 1960s. They were first in the coconut business, which Sondakh took over in 1984.
Later in 1986, he started Indonesia’s first private television network Rajawali Citra Televisi Indonesia (RCTI) with Bambang Trihatmodjo, one of the sons of then President Suharto.
Sondakh no longer owns RCTI, but he is making a comeback in the broadcasting industry with the launch of Rajawali TV in May this year.
His partnership with the president’s son brought him closer to the administration. In 1991, Sondakh was called in to take over debt-laden cigarette maker Bentoel Group from its private owners.
Reluctant at first, Sondakh decided to give it a go after some persuasion. Bentoel’s debt restructuring process took six painful years, but by March 1997 the company had paid off all its foreign borrowings.
That timely decision spared the company the worst of the wild currency swings during the Asian financial crisis of 1997/98. Bentoel was listed in 2000 and later acquired by British American Tobacco for US$700mil.
While Sondakh was keep busy putting Bentoel’s financials in order, he was again asked by the government in 1996 to take over a fledgling telco.
Seizing the opportunity, he launched Asia’s first prepaid services in 1997 and by 2002 had gained a 15% subscriber market share in Indonesia.
In 2005, Sondakh sold part of the company PT Excelcomindo Pramata (XL) to Telekom Malaysia Bhd.
The next year, he was tasked by then President Susilo Bambang Yudhoyono to buy out Mexican Cemex Group’s 25% stake in Semen Gresik – a listed cement producer.
Sondakh put down his own money and ended up with a 25% stake in Semen Gresik, while the Indonesian government holds 51% of the company.
He asked for full management control to turn around the company and by the time he sold out his stake in March 2010 the stock had risen from 1,800 rupiah in July 2006 to 7,000 rupiah.
The company, which had changed its name to Semen Indonesia and controls a 42% market share in the country, is currently trading at around 12,000 rupiah.
“I believe in creating values for our partners,” Sondakh said.
Indonesia, with its abundance of natural resources and healthy demographics, should be a magnet for foreign investment, but a slew of obstacles make it a tough sell for investors to come in.
For plantation companies, buying huge tract of land in Indonesia is never easy nor cheap. The law stipulated that only listed companies can own more than 100,000 ha of plantation land. This puts a huge valuation premium of listed planters.
First Resources Ltd, which has 190,000 ha in Indonesia, is currently traded at about US$17,000 per ha.
A recent selldown on Bumitama Agro Ltd pushed down its valuation at just about US$15,000 per ha. Bumitama is 31% owned by IOI Corp Bhd.
The valuations are “without any deal premium,” said Arief Sidarto, an executive advisor to the chairman at Rajawali group.
“This deal with FGV is transformational. Others are watching,’’ he said.
As it is, both Rajawali and FGV are completing a due diligence process. The biggest task for FGV now is to convince its shareholders that this deal with Rajawali will be beneficial to them.
The company is likely to seek its shareholders’ approval in August.
Sondakh to make Indonesia's Rajawali global player in food supply - Business News | The Star Online
MarveL
FULL MEMBER
- Joined
- Nov 30, 2013
- Messages
- 1,166
- Reaction score
- 4
- Country
- Location
Yudhoyono, former Indonesian president, having dialogues with students of Tsinghua University. Not only Chinese students, but Indonesian students also attended the event. Beijing, China, 28 June 2015.
SBY delivered a keynote speech in front of the audience of the 4th World Peace Forum on “Asia Pacific Security Cooperation”. Beijing, China, 27 June 2015.
Having conversations with the Vice President of the People's Republic of China Mr. Li Yuanchao, before the World Peace Forum. Beijing, China, 27 June 2015.
source: Aniyudhoyono Instagram.
intermeso nemenin si mr marty disebelah...
Last edited:
MarveL
FULL MEMBER
- Joined
- Nov 30, 2013
- Messages
- 1,166
- Reaction score
- 4
- Country
- Location
Indonesia Dropped from Money Laundering Blacklist
A worker hangs Islamic prayer rugs for display outside a shop at a market in Jakarta.
Reuters
The Financial Action Task Force, an international body that sets standards for anti-money laundering and combating terrorist financing, said Indonesia is no longer on its blacklist.
The FATF, in a statement, congratulated Indonesia over “the significant progress” it made addressing deficiencies it had in fighting money laundering and terrorist financing. The country is longer subject to the FATF’s monitoring process, according to the statement.
Indonesian officials exulted in the news, according to a local media report. Its removal came as a result of a regulation issued in February authorizing the government to block terrorist-linked bank accounts, according to the local report.
The announcement comes at the end of an FATF plenary, held last week in Brisbane, Australia. Countries that fail to implement FATF’s standards on anti-money laundering and counter-terrorist financing policy run the risk of being labeled as high-risk or uncooperative jurisdictions, making it more costly and difficult for those nations to transact with the banking systems of FATF member states.
At the plenary, the FATF cited progress by Uganda, which it chided in February. Since then, the FATF said Uganda “has taken significant steps” toward improving its legal regimes, including the enactment earlier in June of an anti-terrorism law. Because its passage was so recent, the FATF said, it couldn’t assess the law’s reach, but the FATF encouraged Uganda to keep up the good work.
Ecuador “has made significant progress” by addressing its deficiencies on a technical level, the FATF said, noting that it will make an on-site visit to address whether the country is implementing the reforms passed.
The FATF also called out Iraq, saying it’s “not yet satisfied” that Iraq has made enough progress to improve its anti-money laundering and counter-terrorist financing legal regime. The FATF said Iraq needs to implement an array of legal measures to move off the body’s blacklists.
Bosnia and Herzegovina made a commitment to the FATF to work with it and a regional anti-money laundering body to address its issues, the FATF said.
In addition, the FATF said de-risking “is a complex issue that goes far beyond” its typical remit of anti-money laundering and terrorist financing. Less than a year after saying de-risking counter-intuitively introduces risk back into the financial system, the FATF said it “gathered preliminary information on the potential drivers” of the phenomenon, which involves financial institutions backing out of business relationships with customers due to potential legal, reputational or regulatory concerns.
“There is a continued need to improve the evidence base in order to determine the causes, scale and impact of de-risking,” the FATF said.
Write to Samuel Rubenfeld at Samuel.Rubenfeld@wsj.com. Follow him on Twitter at @srubenfeld.
Indonesia Dropped from Money Laundering Blacklist - Risk & Compliance - WSJ
A worker hangs Islamic prayer rugs for display outside a shop at a market in Jakarta.
Reuters
The Financial Action Task Force, an international body that sets standards for anti-money laundering and combating terrorist financing, said Indonesia is no longer on its blacklist.
The FATF, in a statement, congratulated Indonesia over “the significant progress” it made addressing deficiencies it had in fighting money laundering and terrorist financing. The country is longer subject to the FATF’s monitoring process, according to the statement.
Indonesian officials exulted in the news, according to a local media report. Its removal came as a result of a regulation issued in February authorizing the government to block terrorist-linked bank accounts, according to the local report.
The announcement comes at the end of an FATF plenary, held last week in Brisbane, Australia. Countries that fail to implement FATF’s standards on anti-money laundering and counter-terrorist financing policy run the risk of being labeled as high-risk or uncooperative jurisdictions, making it more costly and difficult for those nations to transact with the banking systems of FATF member states.
At the plenary, the FATF cited progress by Uganda, which it chided in February. Since then, the FATF said Uganda “has taken significant steps” toward improving its legal regimes, including the enactment earlier in June of an anti-terrorism law. Because its passage was so recent, the FATF said, it couldn’t assess the law’s reach, but the FATF encouraged Uganda to keep up the good work.
Ecuador “has made significant progress” by addressing its deficiencies on a technical level, the FATF said, noting that it will make an on-site visit to address whether the country is implementing the reforms passed.
The FATF also called out Iraq, saying it’s “not yet satisfied” that Iraq has made enough progress to improve its anti-money laundering and counter-terrorist financing legal regime. The FATF said Iraq needs to implement an array of legal measures to move off the body’s blacklists.
Bosnia and Herzegovina made a commitment to the FATF to work with it and a regional anti-money laundering body to address its issues, the FATF said.
In addition, the FATF said de-risking “is a complex issue that goes far beyond” its typical remit of anti-money laundering and terrorist financing. Less than a year after saying de-risking counter-intuitively introduces risk back into the financial system, the FATF said it “gathered preliminary information on the potential drivers” of the phenomenon, which involves financial institutions backing out of business relationships with customers due to potential legal, reputational or regulatory concerns.
“There is a continued need to improve the evidence base in order to determine the causes, scale and impact of de-risking,” the FATF said.
Write to Samuel Rubenfeld at Samuel.Rubenfeld@wsj.com. Follow him on Twitter at @srubenfeld.
Indonesia Dropped from Money Laundering Blacklist - Risk & Compliance - WSJ
katarabhumi
FULL MEMBER
- Joined
- Nov 25, 2013
- Messages
- 908
- Reaction score
- 3
- Country
- Location
Indonesia to be eighth-largest AIIB shareholder with $672 mln stake
JAKARTA, JUNE 28
Indonesia will sign up as a founding member of the China-backed Asian Infrastructure Investment Bank (AIIB) with an investment of $672.1 million paid over five years, the Finance Ministry said in a statement on Sunday.
Indonesia will be the eighth-largest shareholder in the AIIB, the statement said, without detailing what percentage its share would represent. Finance Minister Bambang Brodjonegoro is scheduled to travel to Beijing to sign the agreement on Monday.
The AIIB will begin with authorized capital of $50 billion, eventually to be raised to $100 billion. (Reporting by Gayatri Suroyo and Fransiska Nangoy; Editing by Paul Tait)
Indonesia to be eighth-largest AIIB shareholder with $672 mln stake| Reuters
===
Indonesia to push for AIIB to finance power projects
Power plants and transmission systems will at the top of Indonesia's agenda when founding members of the China-led Asian Infrastructure Investment Bank submit proposals for the bank's first round of investment.
"Our top candidates are in the power sector - power plants and [power] transmission [projects]," Indonesian Finance Minister Bambang Brodjonegoro said on Monday.
"Right after that is [a] sea port. Indonesia is an archipelago and we need good connectivity.
"The most important thing for us now is to get as many projects as possible financed by the AIIB."
Bambang said founding members had agreed to speed up the investment process and cut the kind of red tape holding up projects at the Asian Development Bank and World Bank.
"It takes half a year in the ADB [to approve a project, and] a year in the World Bank," he said. "We hope that in the AIIB, it can be within months."
To achieve that, the AIIB's decision-making process would have to be shorter and simpler than that at the other multilateral banks, the minister said.
"It doesn't have to have things like ADB's no-objection letter," Bambang said, referring the bank's requirement for the host country to send a letter indicating it had no objection to a project before it could be carried out.
Bambang said Indonesia would apply to host the AIIB regional office when talks on opening more branches began.
Non-member countries, including Japan, have voiced concern about transparency as well as potential corruption within the newly formed bank.
But Bambang said he believed the AIIB would adequately address corruption issues, even if its decision-making process was shorter than that at other multilateral institutions.
"A longer [process] does not guarantee there will be no corruption," the minister said.
"And sometimes [in other multilateral banks], although there are no concerns about corruption, delays still happen for no reason."
Indonesia to push for AIIB to finance power projects | South China Morning Post
.
JAKARTA, JUNE 28
Indonesia will sign up as a founding member of the China-backed Asian Infrastructure Investment Bank (AIIB) with an investment of $672.1 million paid over five years, the Finance Ministry said in a statement on Sunday.
Indonesia will be the eighth-largest shareholder in the AIIB, the statement said, without detailing what percentage its share would represent. Finance Minister Bambang Brodjonegoro is scheduled to travel to Beijing to sign the agreement on Monday.
The AIIB will begin with authorized capital of $50 billion, eventually to be raised to $100 billion. (Reporting by Gayatri Suroyo and Fransiska Nangoy; Editing by Paul Tait)
Indonesia to be eighth-largest AIIB shareholder with $672 mln stake| Reuters
===
Indonesia to push for AIIB to finance power projects
Power plants and transmission systems will at the top of Indonesia's agenda when founding members of the China-led Asian Infrastructure Investment Bank submit proposals for the bank's first round of investment.
"Our top candidates are in the power sector - power plants and [power] transmission [projects]," Indonesian Finance Minister Bambang Brodjonegoro said on Monday.
"Right after that is [a] sea port. Indonesia is an archipelago and we need good connectivity.
"The most important thing for us now is to get as many projects as possible financed by the AIIB."
Bambang said founding members had agreed to speed up the investment process and cut the kind of red tape holding up projects at the Asian Development Bank and World Bank.
"It takes half a year in the ADB [to approve a project, and] a year in the World Bank," he said. "We hope that in the AIIB, it can be within months."
To achieve that, the AIIB's decision-making process would have to be shorter and simpler than that at the other multilateral banks, the minister said.
"It doesn't have to have things like ADB's no-objection letter," Bambang said, referring the bank's requirement for the host country to send a letter indicating it had no objection to a project before it could be carried out.
Bambang said Indonesia would apply to host the AIIB regional office when talks on opening more branches began.
Non-member countries, including Japan, have voiced concern about transparency as well as potential corruption within the newly formed bank.
But Bambang said he believed the AIIB would adequately address corruption issues, even if its decision-making process was shorter than that at other multilateral institutions.
"A longer [process] does not guarantee there will be no corruption," the minister said.
"And sometimes [in other multilateral banks], although there are no concerns about corruption, delays still happen for no reason."
Indonesia to push for AIIB to finance power projects | South China Morning Post
.
Last edited:
MarveL
FULL MEMBER
- Joined
- Nov 30, 2013
- Messages
- 1,166
- Reaction score
- 4
- Country
- Location
Container Ship and LPG Tanker Collide near Surabaya
By Aiswarya Lakshmi June 30, 2015
Navigator Aries. Photo by Navigator Gas
LPG tanker Navigator Aries (23,333 dwt, built 2008), and containership Leo Perdana (33,423 dwt, built 2007) collided yesterday in waters off Gresik, nearby the Port of Tunjung Perak in Surabaya, Indonesia.
The collision caused a fire on the 2008-built tanker, which was quickly put out by the crew. The tanker, owned by Navigator Gas, suffered a 5-meter breach on its port side.
The tanker suffered large breach in the port side and caught fire, which was quickly extinguished.
During the collision there were no injured crew, but both ships were seriously damages and small quantity of fuel spilled into the water.
Four tugs were dispatched at the scene of the accident and towed the Navigator Aries to anchorage on 10 nautical miles off Gresik.
The container ship Leo Perdana proceeded to Surabaya by own power and berthed for repair works and inspection.
The ship was built in 2007 by Naikai Shipbuilding Setoda Factory in Japan and operated by Japanese shipping company Tokei Kaiun. During the accident Leo Perdana was en route to Surabaya. The extent of the damage on the 2,553 TEU Leo Perdana is still unknown.
The Panama-flagged Leo Perdana is operated by Taiwan’s Evergreen Marine Corporation, and is employed on a Taiwan-Philippines-Indonesia (TPI) Service, which includes a call at Surabaya.
The Indonesia-flagged Navigator Aries is managed by the UK-based Navigator Gas LLC. The LPG tanker has overall length of 160.00 m, moulded beam of 26.00 m and maximum draft of 8.00 m.
Container Ship and LPG Tanker Collide near Surabaya
By Aiswarya Lakshmi June 30, 2015
Navigator Aries. Photo by Navigator Gas
LPG tanker Navigator Aries (23,333 dwt, built 2008), and containership Leo Perdana (33,423 dwt, built 2007) collided yesterday in waters off Gresik, nearby the Port of Tunjung Perak in Surabaya, Indonesia.
The collision caused a fire on the 2008-built tanker, which was quickly put out by the crew. The tanker, owned by Navigator Gas, suffered a 5-meter breach on its port side.
The tanker suffered large breach in the port side and caught fire, which was quickly extinguished.
During the collision there were no injured crew, but both ships were seriously damages and small quantity of fuel spilled into the water.
Four tugs were dispatched at the scene of the accident and towed the Navigator Aries to anchorage on 10 nautical miles off Gresik.
The container ship Leo Perdana proceeded to Surabaya by own power and berthed for repair works and inspection.
The ship was built in 2007 by Naikai Shipbuilding Setoda Factory in Japan and operated by Japanese shipping company Tokei Kaiun. During the accident Leo Perdana was en route to Surabaya. The extent of the damage on the 2,553 TEU Leo Perdana is still unknown.
The Panama-flagged Leo Perdana is operated by Taiwan’s Evergreen Marine Corporation, and is employed on a Taiwan-Philippines-Indonesia (TPI) Service, which includes a call at Surabaya.
The Indonesia-flagged Navigator Aries is managed by the UK-based Navigator Gas LLC. The LPG tanker has overall length of 160.00 m, moulded beam of 26.00 m and maximum draft of 8.00 m.
Container Ship and LPG Tanker Collide near Surabaya
Nike
ELITE MEMBER
- Joined
- Mar 28, 2013
- Messages
- 13,867
- Reaction score
- 24
- Country
- Location
Indonesia power plant, maritime infrastructure projects to be financed by AIIB
Selasa, 30 Juni 2015 14:58 WIB | 1.084 Views
Bambang PS Brodjonegoro. (ANTARA/Jessica Helena Wuysang)
Beijing (ANTARA News) - Indonesian Finance Minister Bambang Brodjonegoro said power plant and maritime infrastructure projects would be the first to be financed with fund from Asian Infrastructure Investment Bank (AIIB) after the new multilateral financial agency comes on stream by the end of 2015 or early 2016.
"The projects we will build with fund from AIIB could be power generating plants and maritime infrastructure such as seaports," Bambang told ANTARA News here on Monday night after the signing of the AIIB establishment and series of bilateral talks.
He did not rule out other projects "as we need a lot and have been identified to accelerate infrastructure development to support economic development."
Indonesia together with 56 founding members of AIIB led by China signed chapters on association of the establishment of the new financial agency at the People Supreme Hall here on Monday.
The initiative for the establishment of AIIB was conveyed by Chinese President Xi Jinping at the meeting of the Asia Pacific Economic Cooperation (APEC) forum in Bali in October, 2013.
AIIB is a Multilateral Development Bank designed to provide financial support for infrastructure development in Asia both for the government and private sectors.
Indonesia took part with an investment of US$672.1 million to be paid in five years making it the 8th largest shareholder of the bank.
AIIB is expected to start operation with a capital of US$100 billion with paid-in-capital of 20 percent. It is expected to start operation in early 2016.
A series of meetings between chief negotiators would take place before the end of this year to prepare the operation of the bank.
AIIB is expected to be able to help cope with financial difficulty faced by Indonesia in carrying out its massive infrastructure projects.
For Indonesia, AIIB will provide an alternative source of fund to finance its infrastructure development program, Bambang said.
"We need to accelerate development of out infrastructure to support economic development in general," he said.
AIIB is a special lender for big commercial infrastructure projects such as highways, toll roads, seaports and airports, he said.
The World Bank and Asian Development Bank offer financial support for wide range of sectors including education, health as well as infrastructure but allocation for infrastructure is relatively small.
In addition, there is no allocation of funds from the two multilateral banks for the private sector, and they would not provide funds for the development of coal-fired power plants, Bambang said.
AIIB offers funds for the private sector and for coal fired power generating projects, he said, adding,"certainly the coal is to be processed with environmentally friendly technology."
"We have projects to build power plants with a total capacity of 35,000 MW in five years. Some of them could be financed with funds from the World Bank or the ADB, but there are some that have to be financed with fund from AIIB. Therefore we have to maximize our participation in AIIB," he said.
(Uu.H-ASG/F001)
Selasa, 30 Juni 2015 14:58 WIB | 1.084 Views
Bambang PS Brodjonegoro. (ANTARA/Jessica Helena Wuysang)
Beijing (ANTARA News) - Indonesian Finance Minister Bambang Brodjonegoro said power plant and maritime infrastructure projects would be the first to be financed with fund from Asian Infrastructure Investment Bank (AIIB) after the new multilateral financial agency comes on stream by the end of 2015 or early 2016.
"The projects we will build with fund from AIIB could be power generating plants and maritime infrastructure such as seaports," Bambang told ANTARA News here on Monday night after the signing of the AIIB establishment and series of bilateral talks.
He did not rule out other projects "as we need a lot and have been identified to accelerate infrastructure development to support economic development."
Indonesia together with 56 founding members of AIIB led by China signed chapters on association of the establishment of the new financial agency at the People Supreme Hall here on Monday.
The initiative for the establishment of AIIB was conveyed by Chinese President Xi Jinping at the meeting of the Asia Pacific Economic Cooperation (APEC) forum in Bali in October, 2013.
AIIB is a Multilateral Development Bank designed to provide financial support for infrastructure development in Asia both for the government and private sectors.
Indonesia took part with an investment of US$672.1 million to be paid in five years making it the 8th largest shareholder of the bank.
AIIB is expected to start operation with a capital of US$100 billion with paid-in-capital of 20 percent. It is expected to start operation in early 2016.
A series of meetings between chief negotiators would take place before the end of this year to prepare the operation of the bank.
AIIB is expected to be able to help cope with financial difficulty faced by Indonesia in carrying out its massive infrastructure projects.
For Indonesia, AIIB will provide an alternative source of fund to finance its infrastructure development program, Bambang said.
"We need to accelerate development of out infrastructure to support economic development in general," he said.
AIIB is a special lender for big commercial infrastructure projects such as highways, toll roads, seaports and airports, he said.
The World Bank and Asian Development Bank offer financial support for wide range of sectors including education, health as well as infrastructure but allocation for infrastructure is relatively small.
In addition, there is no allocation of funds from the two multilateral banks for the private sector, and they would not provide funds for the development of coal-fired power plants, Bambang said.
AIIB offers funds for the private sector and for coal fired power generating projects, he said, adding,"certainly the coal is to be processed with environmentally friendly technology."
"We have projects to build power plants with a total capacity of 35,000 MW in five years. Some of them could be financed with funds from the World Bank or the ADB, but there are some that have to be financed with fund from AIIB. Therefore we have to maximize our participation in AIIB," he said.
(Uu.H-ASG/F001)
ANMDT
ELITE MEMBER
- Joined
- Feb 9, 2014
- Messages
- 1,278
- Reaction score
- 10
- Country
- Location
Duh still not giving a visa free to turkey ? eventhough there are attempts from turkish side, why Indonesia is this much worried to give Visa-free to turkey , we are already willing for that.ok. thanks
Another 30 countries to be given visa-free entry to Indonesia next year
Mimi Hudoyo, Jakarta, June 25, 2015
INDONESIA is planning to grant 30 more countries visa-free facilities next year in a bid to grow arrivals, the country announced in less than two weeks since it waived visa requirements for 30 countries.
Speaking at closed-door meeting on tourism with president Joko Widodo and tourism stakeholders yesterday, Indonesia’s tourism minister Arief Yahya said: “The president has instructed me, and invited the tourism industry to give their input, on giving another 30 countries visa-free entry to Indonesia.”
“The point of the visa-free facility is, first of all, to improve service standards and secondly, to compete with other countries,” he elaborated. “Malaysia has granted the facility to 164 countries and Thailand, 56 countries. With the latest additional 30 countries getting the visa waiver, we are currently giving 45 countries the facility.”
Indonesia’s recent move to lift visa requirements for 30 countries is expected to add another one million arrivals in the next 12 months or 500,000 arrivals for 2015.
“Our arrival target this year is 10 million so we expect to reach 10.5 million with the new visa policy,” Arief said, adding that the extra revenue generated could reach US$1 billion in a year or US$500 million this year.
Indonesia’s immigration law stipulates visa-free entry for another country can only be granted in cases where there is reciprocity.
Commenting on this, Arief said: “The law is still valid. However, reciprocity is like a chicken-and-egg scenario. (Indonesia can offer this first), after which the Ministry of Foregn Affairs can then approach these countries to give Indonesians visa-free entry.”
But he pointed out that the higher the number of countries giving Indonesia free entry, the bigger the chance that the foreign exchange rate of the rupiah would be adversely affected “as more Indonesians will spend money overseas”.
Another 30 countries to be given visa-free entry to Indonesia next year - TTG Asia - Leader in Hotel, Airlines, Tourism and Travel Trade News
Noone has right to deny relationship between indo and turkey , it cant be coincidence many indonesian in here
pr1v4t33r
SENIOR MEMBER
- Joined
- Nov 20, 2014
- Messages
- 5,042
- Reaction score
- 5
- Country
- Location
President inaugurates geothermal power plants
Garut, West Java (ANTARA News) - President Joko Widodo (Jokowi), here, Sunday, symbolically inaugurated geothermal power plants (PLTP) located in several regions to increase the countrys power supply.
The president also officiated the groundbreaking for constructions of the 3rd and 4th units of PLTP Ulubelu in Tanggamus district, Lampung Province, the 5th unit of PLTP Lahendong in Minahasa District, North Sulawesi, the 1st unit of PLTP Karaha in West Java, the 1st and 2nd units of PLTP Lumut Balai in South Sumatra, the first unit of PLTP Hululais in Bengkulu, and the 1st unit of PLTP Kerinci in Jambi.
Construction of PLTP Ulubelu, that will have a capacity of 2x55 MW will cost around US$524.26 million.
The cost for the construction of PLTP Lahendong with a capacity of 2x20 MW is around US$262.07 million, and PLTP Karaha with a capacity of 30 MW to cost US$187 million, PLTP Lumut Balai with a capacity of 110 MW to cost US $683.51 million, PLTP Hulu Lais with a capacity of 55MW to cost US$248 million, and PLTP Kerinci with a capacity of 55MW to cost US$116.17 million.
The president also inaugurated the 5th unit of PLTP Kamojang set into operation. The PLTP was built with an investment of US$104.3 million with a capacity of 35 MW.
The head of state was accompanied by State Enterprises Minister Rini Soemarno, Coordinating Minister for Maritime Affairs Indroyono Soesilo, Trade Minister Rachmat Gobel, and President Director of the state-owned oil and gas company PT Pertamina Dwi Soetjipto
President inaugurates geothermal power plants - ANTARA News
Garut, West Java (ANTARA News) - President Joko Widodo (Jokowi), here, Sunday, symbolically inaugurated geothermal power plants (PLTP) located in several regions to increase the countrys power supply.
The president also officiated the groundbreaking for constructions of the 3rd and 4th units of PLTP Ulubelu in Tanggamus district, Lampung Province, the 5th unit of PLTP Lahendong in Minahasa District, North Sulawesi, the 1st unit of PLTP Karaha in West Java, the 1st and 2nd units of PLTP Lumut Balai in South Sumatra, the first unit of PLTP Hululais in Bengkulu, and the 1st unit of PLTP Kerinci in Jambi.
Construction of PLTP Ulubelu, that will have a capacity of 2x55 MW will cost around US$524.26 million.
The cost for the construction of PLTP Lahendong with a capacity of 2x20 MW is around US$262.07 million, and PLTP Karaha with a capacity of 30 MW to cost US$187 million, PLTP Lumut Balai with a capacity of 110 MW to cost US $683.51 million, PLTP Hulu Lais with a capacity of 55MW to cost US$248 million, and PLTP Kerinci with a capacity of 55MW to cost US$116.17 million.
The president also inaugurated the 5th unit of PLTP Kamojang set into operation. The PLTP was built with an investment of US$104.3 million with a capacity of 35 MW.
The head of state was accompanied by State Enterprises Minister Rini Soemarno, Coordinating Minister for Maritime Affairs Indroyono Soesilo, Trade Minister Rachmat Gobel, and President Director of the state-owned oil and gas company PT Pertamina Dwi Soetjipto
President inaugurates geothermal power plants - ANTARA News
Last edited:
MarveL
FULL MEMBER
- Joined
- Nov 30, 2013
- Messages
- 1,166
- Reaction score
- 4
- Country
- Location
Is Sri Mulyani Coming Back to Fix the Economy?
Posted On 03 Jul 2015
economy, minister,Reshuffle, review, Sri Mulyani
Review
Jakarta, GIVnews.com – President Joko ‘Jokowi’ Widodo is reportedly seeking a new and strong economic minister, whom the market could trust. Early this week, when asked whether Sri Mulyani Indrawati was suitable for the position, the President reportedly just smiled, with no obvious reason.
Sri Mulyani Indrawati. (Photo source: Facebook)
Sri Mulyani, who served as Finance Minister under President Susilo Bambang Yudhoyono from 2005 to 2010, is currently a World Bank managing director based in Washington DC, USA. As Finance Minister she was known as a tough reformist and highly instrumental in strengthening the Indonesian economy. She is also widely believed to have been successful in curbing corruption at the Finance Ministry and reforming Indonesia’s tax and customs office. Forbes included Mulyani in its World’s Most Powerful Women lists four times, in 2008 (23rd), 2009 (72nd), 2012 (72nd), and 2014 (38th). Mulyani assumed her post as a World Bank managing director in 2010.
It was reportedly Tony Prasetiantono who raised the name of Sri Mulyani to the President during a meeting at the State Palace last Monday (29 June 2015). Tony was among the eleven noted economists summoned by the President to his office at the Merdeka Palace to discuss the latest development of the Indonesian economy, the performance of his cabinet and the possible replacement or reassignment of cabinet ministers.
(Read more: Reshuffle Issue Prolonged after Economists’ Visit to Presidential Palace)
According to Tony, who is a senior lecturer and a renowned op-ed writer, President Jokowi desperately wants highly qualified economic ministers who can do better than those currently in the ‘Work Cabinet’. The President is also seeking a strong economic minister. And, describing what Jokowi really wanted, Tony said, “It is like playing football. Many are good players, but there is no play maker.”
Tony further quoted the President as saying that “If we can find suitable people at this moment, I will inaugurate them right away.”
Meanwhile, there is speculation that if Mulyani is willing to join Jokowi’s reshuffled cabinet, she could be offered either her portfolio post of Finance Minister, or positioned as the Economic Coordinating Minister. Tempo weekly quoted a State Palace official as saying that Jokowi met twice with Sri Mulyani when she came to Jakarta as a World Bank official about three weeks ago. The President offered her the post of coordinating minister for the economy, according to the State Palace official who asked not be identified. However, Sri Mulyani did not reply Tempo’s email enquiry regarding her meetings with Jokowi.
Interestingly, Sri Mulyani is said to have politely declined the President’s offer. “She cited the matter of income and her concern that she would be a political problem if she joined the cabinet,” the official said. If this is true, her remarks could imply that she could basically accept Jokowi’s offer, shall it not cause any political complications. Last year, when Jokowi was selecting cabinet ministers, a group of parliament members reminded the President not to pick Sri Mulyani as minister.
Sri Mulyani, then as Minister of Finance, was alleged to have been involved in a crime that was related to the bailout of a medium scale Bank Century in 2008. However, recently the National Police declared that Sri Mulyani and Vice President Jusuf Kalla had not been involved in questionable buying and selling of state’s condensate in 2009.
There are strong speculations that Jokowi will focus on economic ministerial posts when he reshuffles the cabinet. Based on speculations, such cabinet reshuffle may occur before or after the Idhul Fitri Holiday which falls on 17-18 July.
Is Sri Mulyani Coming Back to Fix the Economy? | GIVnews.com - Indonesian Perspective to Global Audience
faries
FULL MEMBER
- Joined
- Jun 23, 2015
- Messages
- 427
- Reaction score
- 0
- Country
- Location
Joko Promises Second Semester Growth on Back of Govt Spending
Source: Jakarta Globe
Growth was hampered in the first half of the year as infrastructure spending was held up by red tape. (JG Photo/Afriadi Hikmal)
Jakarta. The government will disburse the remaining infrastructure budget over the second half of the year in a move to boost economic growth above five percent and restore investor confidence, President Joko Widodo said late on Wednesday.
Economists and analysts have blamed slow government spending for the country’s lackluster growth in the first and second quarter of this year, undermining confidence in Joko’s promise of a massive infrastructure overhaul.
Huge public savings from a cut to gasoline subsidies last year have been idle in government coffers, with red tape hampering the bidding process for the Rp 290 trillion ($21 billion) earmarked for infrastructure development in 2015.
Joko said on Wednesday, however, that all problems with project bidding have since been cleared and the government is ready to spend.
“In this second semester, government will go all out in boosting the budget spending,” Joko told editors from major national media outlets at the State Palace.
“I hope that the press would broadcast such a positive achievement from the government, so that confidence towards the government will recover.”
Joko said the government was now eyeing a growth of rate of between 5 and 5.2 percent by the end of this year, lower than the 5.7 percent target in the 2015 revised budget.
The economy expanded at 4.7 percent in the first quarter of 2015, dragged down by low commodity prices and slowing public and private investment.
Bank Indonesia, the country’s central bank, now expects Indonesia to grow between 4.5 and 4.9 percent in the second quarter, as the problems of the first three months persist, said Agus Martowardojo, the central bank governor, late on Wednesday.
Still, the central bank said it remained confident the economy would expand at the lower end of its 5 to 5.4 percent range by the end of this year, Agus said.
“We are counting on the government spending, investment and domestic consumption,” he said.
The World Bank earlier on Wednesday cut its projection on Indonesia’s economic growth due to the government’s slow infrastructure spending and lower consumer spending. The Washington-based lender expects Indonesia to grow at 4.7 percent, less than its initial projection of 5.2 percent.
The Asian Development Bank also revised down its growth projection for Indonesia on Tuesday to 5 percent from the initial 5.5 percent due to delays in infrastructure spending.
The central bank is still convinced the economy will grow by at least 5 percent by the end of the year.
Source: Jakarta Globe
Growth was hampered in the first half of the year as infrastructure spending was held up by red tape. (JG Photo/Afriadi Hikmal)
Jakarta. The government will disburse the remaining infrastructure budget over the second half of the year in a move to boost economic growth above five percent and restore investor confidence, President Joko Widodo said late on Wednesday.
Economists and analysts have blamed slow government spending for the country’s lackluster growth in the first and second quarter of this year, undermining confidence in Joko’s promise of a massive infrastructure overhaul.
Huge public savings from a cut to gasoline subsidies last year have been idle in government coffers, with red tape hampering the bidding process for the Rp 290 trillion ($21 billion) earmarked for infrastructure development in 2015.
Joko said on Wednesday, however, that all problems with project bidding have since been cleared and the government is ready to spend.
“In this second semester, government will go all out in boosting the budget spending,” Joko told editors from major national media outlets at the State Palace.
“I hope that the press would broadcast such a positive achievement from the government, so that confidence towards the government will recover.”
Joko said the government was now eyeing a growth of rate of between 5 and 5.2 percent by the end of this year, lower than the 5.7 percent target in the 2015 revised budget.
The economy expanded at 4.7 percent in the first quarter of 2015, dragged down by low commodity prices and slowing public and private investment.
Bank Indonesia, the country’s central bank, now expects Indonesia to grow between 4.5 and 4.9 percent in the second quarter, as the problems of the first three months persist, said Agus Martowardojo, the central bank governor, late on Wednesday.
Still, the central bank said it remained confident the economy would expand at the lower end of its 5 to 5.4 percent range by the end of this year, Agus said.
“We are counting on the government spending, investment and domestic consumption,” he said.
The World Bank earlier on Wednesday cut its projection on Indonesia’s economic growth due to the government’s slow infrastructure spending and lower consumer spending. The Washington-based lender expects Indonesia to grow at 4.7 percent, less than its initial projection of 5.2 percent.
The Asian Development Bank also revised down its growth projection for Indonesia on Tuesday to 5 percent from the initial 5.5 percent due to delays in infrastructure spending.
The central bank is still convinced the economy will grow by at least 5 percent by the end of the year.
Similar threads
