Indonesia Economy Forum

[Kalazan]

That'a a decade worth efforts but i will try to contend and vote for Jokowi in the next election

I think if the "saber pungli" program was succeded done by our government, indonesia will jumping much to higher level.
Since pungli was a hidden cost that take many of bussiness cost. very annoyed

 

[skyhigh88]

Ariska calon dokter lo, jagan salah



JWK walking the talk is a great and highly anticipated news. Imagine if it's Duterte. Duterte walking the talk, what would happen to the Philippines?

Iya maksudnya bukan spesifik ke Ariska.. Tp kan kegiatan beauty paegant selalu di stereotype isinya cuma seperti wanita2 otak pas2an yg cuma bisa menonjolkan badan dan kecantikan saja sementara sebenarya bisa mereka bisa berkontribusi lebih dari itu..

Wahh kalo du30 mah gw gak ikut2an deh... Bisa kacau nanti dunia persilatan

Tp yg ptg dia hormat ama Indonesia dan mudah2an thn dpn bs beli alutsista lg dari kita

 

[Nike]

Iya maksudnya bukan spesifik ke Ariska.. Tp kan kegiatan beauty paegant selalu di stereotype isinya cuma seperti wanita2 otak pas2an yg cuma bisa menonjolkan badan dan kecantikan saja sementara sebenarya bisa mereka bisa berkontribusi lebih dari itu..

Wahh kalo du30 mah gw gak ikut2an deh... Bisa kacau nanti dunia persilatan

Tp yg ptg dia hormat ama Indonesia dan mudah2an thn dpn bs beli alutsista lg dari kita

Close neighbor much more important than your far away blood brother, just looking at our down under neighbor they must recalculate their National strategy to cope with our National strength growth

 

[CountStrike]

How important the Arctic is for Indonesia

• Muhammad Ardhi
  
  

Moscow | Thu, October 27 2016 | 08:56 am


It has been ascertained that the Arctic will be completely ice free during the summer of 2020, which carries many significant implications for world trade, energy security, as well as geopolitics.

The melting ice in the Arctic is not only a serious problem for global sustainability and how it impacts countries and its citizens, because further behind its “horror”, global warming is affecting huge offshore demands as the Arctic region holds 13 percent of oil reserves and more than 30 percent of the world’s natural gas reserves, while additionally, Arctic ice melting evidently could reduce the shipping distance between Asia, North America and Europe by over thousands of miles.

From three routes that will effectively open soon, the North Sea Route (NSR) is the most potential alternative route to Asia (also to Indonesia). The shipping route that starts from Europe through Eurasia to Asia is able to cut nine to 13 days off the normal shipping time and save 40 percent of the shipping cost (referring to the current conventional route, the Suez Canal route).

The Norwegian DNV in 2015 even estimated that there would be more than 430 transits occurring through the NSR by 2030.

The Arctic, regionally, has a very promising future, and its role has been fully arranged in a forum called the Arctic Council — an intergovernmental forum established by the Ottawa Declaration in 1996, intended to promote cooperation, coordination and interaction between the Arctic countries (Russia, the US [Alaska], Canada, Norway, Denmark [Greenland], Sweden, Finland and Iceland).

Currently the Arctic Council serves as the central study of the global climate change development, regulating Arctic oil and gas, shipping codes and services. Interestingly, although the Arctic Council is only an intergovernmental forum under the Arctic SAR Agreement in 2011, all agreements under the council are binding.

Speaking about Asia, the countries currently trying to exert influence in the Arctic Council are China, Japan, South Korea, India and Singapore — that have been permitted as permanent observers since 2013.

The presence of those countries there actually is not about how their interests and aspirations can be channeled and protected, but more how they can benefit economically from the Arctic’s condition, especially how to supply the Arctic infrastructure offshore technologies and the maritime routes.

In the maritime route infrastructure, for example, South Korea has signed a MoU with Russia in developing five NSR Ports along Eurasia in 2014. They also are currently building five vessels (nuclear ice-breaker) for Sovcomflot Russia as continuation of the Yamal Russian Project. Even Singapore, Indonesia’s neighbor, is emulating South Korea by building seven “first class” Arctic vessels for Lukoil Russia. This indicates that a new era of maritime route is happening.

There are two things that Indonesia should anticipate concerning the Arctic. First, we have to recognize that everything that happens in the Arctic will affect all countries, including Indonesia. Second, we also have to realize that when Arctic ice melts, new rules on shipping and fishing are needed and it should be Indonesia’s concern when the new rules are formulated.

The Arctic will become the “new Middle East” in the future. World countries such as Turkey, Brazil, Greece and Switzerland are queuing to get statuses as permanent observers, which will be drawn in 2017 in Fairbanks, the US.

With the sponsorship of Russia, Vietnam is predicted to follow the footsteps of the five Asian countries to secure status because their oil and gas giants, Petrovietnam and Zarubezneft, have been conducting intensive exploration in the Barents Sea since early 2015.

Indonesia has wasted a golden momentum to join the Arctic Council. Since 2014 president of Iceland, Olafur Ragnar Grimsson, has invited Indonesia to send delegations and experts to an annual Arctic event, the Arctic Circle. While India, Brazil, Turkey, China, South Korea, Japan and Singapore sent their “first-class delegations”, Jakarta never heeded those invitations.

Unlike Singapore, Indonesia did not bring that Arctic issue to the ASEAN-Russia Summit in Sochi last March either. Indonesia had the right moment to ask about Russian sponsorship for the council status. This is not an exaggeration because of economic recession in 2014, Russia has tried to “minimize” prospective investors and energy buyers from their conventional region (Western countries) and “maximize” capital from the Asia region including Indonesia. Further, the Russia-Indonesia relationship is at its “best” considering the closeness of the last two to four years.

Naturally, Indonesia may set eyes on Singapore, being its neighbor is already in the council. For Singapore, their first challenge might come from Malaysia, Indonesia or even Vietnam. However, Singapore is always thinking what big strides its country can make, as it does not only think about five to 10 years from now, but also what needs to be achieved to sustain survival in 20 to 50 years.

Arctic ice continuing to melt sends alarm bells to Singapore, so of course they need “first-hand” knowledge and data to prevent something bad happening to their country. At the same time, when the new route is operational, Singapore also has to think its potential declining status as an international maritime transit, which means eroding capital income — a similar focus has to be exercised by Indonesian stakeholders.

This is the time for Indonesia to send their best delegation to the Arctic Council Secretariat in Tromso, Norway, as well as construct relations with Arctic countries to follow up on Indonesia’s possibility role there. The new age of energy and trade routes are in front of our eyes.

If Indonesia does not have knowledge about this, it means we become losers in this dynamic competition; as we will not have any role for the continuity of our country being impacted by global climate change; and finally, we will end up following the interests of other countries (even neighbors).
_________________________________

The writer is junior expert at the ASEAN Center in Moscow. He is also PhD (candidate) at the Moscow State Institute of International Relations (MGIMO).
http://www.thejakartapost.com/news/2016/10/27/how-important-arctic-indonesia.html

 

[Nike]

Indonesian Chamber of Commerce-Japan prepare SMEs development platform
Kamis, 27 Oktober 2016 17:23 WIB | 291 Views

Rosan P. Roeslani. (ANTARA/Rivan Awal Lingga)

Jakarta (ANTARA News) - Indonesian Chamber of Commerce and Industry (Kadin), along with a number of Japanese entities, is preparing a cooperation platform aimed to further develop Small Medium Enterprises (SMEs) in both the countries and support each other.

Director of the Chamber Rosan Roeslani said that the platform will combine the databases of Indonesian and Japanese SMEs to then be matched up in a partnership, in order to increase the quality of their businesses.

The platform that contains SME information from both countries will be centered in a business matching site named Trade Tie up Promotion Program (TTPP), which will be operated by Japan External Trade Organization (Jetro) as well as J-GoodTech (Japan Good Technology-Monozukuri), operating under the Small & Medium Enterprises and Regional Innovation Japan (SMRJ).

"They already have the platform and there are 18,700 SMEs recorded in their database, whilst the Chamber has only noted about 16,000 of them. That is one of the areas where we would like to combine our efforts with Japan, where we would also like to re-record the data with the format they have given us in order to synchronize everything," he said.

Rosan also mentioned that the cooperation would contribute to increasing trade and investment activities among Small and Medium businessmen and open partnership possibilities for Indonesian and Japanese SMEs.

Other than provision of a database platform for SMEs, the Chamber, along with Jetro, will also establish an Indonesia-Japan Business Matching Support Desk to sustain the SME partnership between the two countries.

The desk will officially start operating on November 1 and, each country involved will send a delegate to provide information about the partnership.

"There will be a face-to-face meeting once every few months to facilitate the cooperation between the Japanese SMEs and our local ones," he reiterated.

The program, that has been prepared since the last eight months, will be opened free of charge for all businessmen, including SME operators.

"There will be no charge at all and this week, we will start vigorously disseminating the information about it," he said.

Although it is not specific for a particular sector, Rosan said that Japan is showing potential interest in the manufacturing process, in order to sustain their automotive businesses in Indonesia.

According to their observation, the production of one single motor vehicle can involve more than 3,000 SMEs.

"We did not think that our SMEs would be able to produce spare parts, but they think otherwise. They believe that our SMEs have the ability to sustain the automotive industry," he added.

Additionally, Daiki Kasugahara, President Director of Jetro in Jakarta, said that they are focused on delivering tangible business results, in order to provide significant contributions towards the trade between Indonesia and Japan.

His office targets 2,000 SMEs to be registered in the Business Matching Support Desk by 2020.

Kasuhagara believes that the efforts to enhance SMEs are done to support the development of their businesses in Indonesia.

"Through this activity, we would also like to support President Jokowis Nawa Cita and at the same time support local Indonesian companies with immense potentials in the Japanese market," he concluded.

(Reported by Ade Irma Junaida/Uu.KR-ARC/INE/KR-BSR/A014)

http://www.antaranews.com/en/news/1...merce-japan-prepare-smes-development-platform

Businessmen hails 8.25 percent hike in provincial minimum wages
Kamis, 27 Oktober 2016 08:02 WIB | 503 Views

Jakarta (ANTARA News) - The Indonesian Businessmen Association (Apindo) has thrown its weight behind the governments plan to raise the 2017 provincial minimum wages by 8.25 percent based on government regulation number 78 of 2015.

"We, the businessmen, have agreed that the government regulation was issued through a process involving all parties. As it has been issued, we must comply with it," Apindo co-chief Shinta W Kamdani said here on Wednesday.

As the policy has been jointly agreed upon, all sides including workers must abide by it, Shinta, who is also deputy chief of the Indonesian Chamber of Commerce and Industry (Kadin) for international relations said.

"That has been agreed upon jointly rather than arbitrarily. I dont see if workers still want other wage hike than we have agreed upon," she said.

She expressed the hope that the refusal of the workers wage hikes will not have a detrimental impact on the national investment climate.

She said workers rallies demanding more wage hike will confuse investors.

"Certainty about provincial minimum wage hike will give certainty to businessmen to make a good plan," she said.

She further expressed regret over the fact that some regional heads did not comply with the ruling.

"This year Manpower Minister (Hanif Dhakiri) wants to be firm so they must comply with it," he said.(*)

http://www.antaranews.com/en/news/1...-825-percent-hike-in-provincial-minimum-wages

 

[CountStrike]

With Indonesia, MSG benefits from Asian Century

• Siswo Pramono
  

Jakarta | Thu, October 27 2016 | 08:57 am


The future of the Melanesian Spearhead Group (MSG) free trade for Papua New Guinea (PNG), the Solomon Islands, Fiji and Vanuatu lies in Asia. Indonesia, as an associate member of the MSG, would play a pivotal role for the Melanesian bridge to the fastest-growing Asian economy.

As the MSG’s total GDP is about US$23 billion, an understanding of the nature of the economies of scale would help the MSG rightly position itself in the APEC.

How the MSG could benefit from the APEC, a forum for 21 economies with a combined GDP of more than $31 trillion, is a case in point.

Well-established ties between Indonesia and PNG both are parties to APEC and members of the MSG would help provide political leverage for the MSG to also benefit from APEC.

APEC aside, the Asia Pacific region sees the conclusion of the Trans Pacific Partnership (TPP) negotiations this year. TPP represents an economic conglomeration of more than $28 trillion. None of the MSG’s members are parties to TPP, but Indonesia has expressed its intention to join.

Another rapidly forming regionalism in Asia is the Regional Comprehensive Economic Partnership (RCEP). This economic grouping represents a total GDP of $21 trillion. All ASEAN members are committed to be parties to RCEP, together with China, Japan, South Korea, India, Australia and New Zealand. Through its ties with Indonesia, the MSG can benefit from RCEP.

Center to RCEP is the recently implemented ASEAN Economic Community (AEC). The AEC represents a single production base with a total GDP of about $2.3 trillion. As Indonesia is essentially part of AEC, the economic community then has geographical proximity to PNG, the Solomon Islands, and hence the MSG.

APEC, the TPP, RCEP, and the AEC represent the geopolitical shift toward East Asia. As such, the political reorientation of the members of the MSG toward Asia the “Look North Policy” is not only sensible but also sine qua non.

PNG’s “Look North Policy” is based on the fact that 50 percent of its export destinations are in Asia, particularly Japan and China; whereas 55 percent of its import origins are also in Asia.

Fiji’s main export destinations, aside from its traditional market of Australia, are China and Japan; while 60 percent of its imports come from Asia.

Last but not least, the Solomon Islands’ main export destination is China, and the bulk of its imports are from Singapore, China and Indonesia. The Solomon Islands’ economic ties with Taiwan have always been strong.

Indonesia’s membership in the MSG is represented by the five Indonesian Melanesian provinces of Papua, West Papua, Maluku, North Maluku and East Nusa Tenggara.

The total regional GDP of the five Indonesian Melanesian provinces is about $21 billion, which is almost equal to the GDPs of PNG, the Solomon Islands, Fiji and Vanuatu combined.

The average growth of the four MSG member countries is about 5 percent, while the average growth of the five Indonesian Melanesian provinces is about 8 percent. The five Indonesian Melanesian provinces thus provide better economic leverage for the MSG to deal with the ASEAN market and beyond.
_____________________________

None of the MSG’s members are parties to TPP, but Indonesia has expressed its intention to join.

Connectivity between Indonesia/ASEAN and the MSG is also being developed. There is a direct Air Niugini flight between Bali (Indonesia) and Port Moresby (PNG), with onward flights from Port Moresby to Honiara (Solomon Islands), Nadi (Fiji), or Port Vila (Vanuatu). Direct flights between Singapore and Port Moresby are also available.

As Papua represents Indonesia in the MSG, there is also a direct flight between Jayapura (Papua) and Mount Hagen (PNG), with onward flights from Mount Hagen to the rest of the MSG region.

It is important to note that infrastructure development in Papua has contributed to better connectivity between ASEAN and the MSG.

Of the total 4,325 kilometers of Trans Papua roads, about 3,625 km have been completed and about 700 km is in progress. About 533 km of road from Waropko, through Tanah Merah, to Merauke, along the southern border with PNG has been completed. Along the northern border, half of the road between Oksibil and Jayapura has also been completed. While still far from perfect, Papua-PNG cross-border economic activities have now been made easier.

The marine tollway is now able to well-connect the main hubs of Jayapura, Biak, Sorong, Misool, Timika and Merauke. There are ample opportunities to connect hubs in Papua with hubs in PNG and, in the future, with the rest of the MSG as well. In total, West Papua and Papua provinces are now equipped with 16 seaports.

New airports have just been commissioned in Segun, Sinak, Koroway and Manggelum. Airports in Kebar, Senggeh and Kepim have been renovated and 12 runways have been extended. In total, West Papua and Papua provinces are now equipped with 105 airports, some are potential air hubs to the Pacific.

The MSG and Indonesia cannot escape the fact that their economic interests are geopolitically interlinked. Working together, both can tap the benefits of the Asian Century.
______________________________

The author is director general/ head of the Policy Analysis and Development Agency, Foreign Affairs Ministry.
The views expressed are his own.

The Jakarta Post

Source: https://defence.pk/threads/indonesia-defence-forum.229571/page-847#ixzz4OI66lirw

Sory Bro @MacanJawa

 

[Kalazan]

Foreign Direct Investment to Indonesia Rises 7.8% in Q3i

Jakarta. Foreign direct investment (FDI) into Indonesia rose 7.8 percent in the third quarter from a year earlier, in rupiah terms, the country's investment board said on Thursday (27/10).

There was Rp 99.7 trillion of investment during the July-September period, excluding investment in banking and the oil and gas sector, the board said.

The board said the dollar equivalent for the third quarter FDI was $7.4 billion. In the same period last year, Indonesia attracted $7.4 billion of investment, data showed.

The board uses the exchange rate assumed in the government's 2016 budget of 13,500 rupiah per dollar for its third quarter calculation. On Thursday, the rupiah traded at 13,025 per dollar at 03:20 GMT.

The biggest beneficiaries of FDI in July-September were the metal and electronic, mining, and property sectors. Singapore was the biggest source of investment.

Reuters-Jktglobe

 

[Kalazan]

Google Executives Met Indonesian Officials to Negotiate Tax Bill : Sourcei

Jakarta. Senior executives from the Asia Pacific headquarters of Alphabet's Google met Indonesian tax officials on Wednesday (26/10) to negotiate the internet search company's tax bill, a person with knowledge of the matter told Reuters.

No agreement has been reached yet, said the person, who declined to be named as the information was confidential. A Google spokesman declined to comment. Indonesia plans to pursue Google for five years of back taxes, and the US company could face a bill of more than $400 million for 2015 alone if it is found to have avoided payments, senior tax official Muhammad Haniv told Reuters last month.

Google Indonesia has said it continues to cooperate with local authorities and has paid all applicable taxes. Indonesia is eager to ramp up tax collection to reduce its budget deficit and fund an infrastructure program.

Other governments around the world are also seeking to clamp down on corporate tax avoidance. Thailand is studying plans to toughen tax collection rules for internet and technology firms, the head of the Revenue Department told Reuters last month.

Ken Dwijugiasteadi, Indonesia's director-general of taxes, declined to comment on whether the meeting with Google took place on Wednesday, but told Reuters in a text message: "When the time is right, we will hold a press conference."

The tax office alleges that Google's local entity, Google Indonesia, paid less than 0.1 percent of the total income and value-added taxes it owed last year, with most of the revenue from the country being booked at Google's Asia Pacific headquarters in Singapore.

The Indonesian tax office has estimated the total advertising revenue for the industry in Indonesia at around $830 million a year, with Google and Facebook accounting for around 70 percent of that. But a joint study by Google and Singapore state investor Temasek released earlier this year estimated this at $300 million for 2015.

Reuters-Jktglobe

 

[skyhigh88]

Google Understands Why Indonesia Wants Its Fair Share: Sri Mulyani

By: Tabita Diela | on 8:20 PM October 27, 2016
Jakarta Globe
Category: Business, Economy

Jakarta. Indonesia is bullish on reaching a settlement with technology giant Google, Finance Minister Sri Mulyani Indrawati said on Thursday (27/10).

"We have already communicated with Google," Sri said during a meeting at the Jakarta Foreign Correspondents Club.

"I think there is at least an understanding about why Indonesia would like to have a fair share of the revenue and we do hope that we're going to reach an agreement," she said.

Senior Google Asia Pacific executives reportedly met Indonesian tax officials on Wednesday for negotiations on the company's tax bill.

"I will make sure that our team treats this issue professionally," Sri said.

The government earlier claimed that Google Indonesia, the company's local representative, paid an "unfairly small" amount in tax as it only allocated about 4 percent of its total revenue from advertisements to be subject to the 10 percent income tax.

Tax experts have urged the government to create a stronger regulation to tax over-the-top players.

http://jakartaglobe.beritasatu.com/business/google-understands-indonesia-wants-fair-share-sri-mulyani/

 

[skyhigh88]

The Statesman
Garuda Indonesia plans to connect Mumbai with Jakarta
ANN/thejakartapost | Jakarta | 27 October, 2016

The Garuda Indonesia plans to expand its service to India at the end of this year by opening a new route from Mumbai to Jakarta.

Garuda Indonesia's vice president of corporate communications Benny S. Butarbutar said that the airline had received support from the Transportation Ministry and the new service would use Airbus 330 and Boeing 777 aircraft.

"We are currently planning the route, [and considering factors like] is it going to be a direct flight or will there be a transit, will it be a daily service or several flights per week," said Benny in Jakarta on Wednesday.

The potential of tourist arrivals from India to Indonesia was quite significant, said Benny. "This is a growing market that we should tap into in order to attract more visitors."

Indian tourists visiting Indonesia in 2014 amounted to 223,607 people, an upsurge from the previous year's figure of 201,009, according to the Central Statistics Agency

Read more at http://www.thestatesman.com/news/bu...-with-jakarta/173048.html#JUO8XcrKgSGko8cD.99

S&P's Not Yet Ready to Upgrade Indonesia's Rating from Junk
Bloomberg News
October 26, 2016 — 9:56 AM SGT Updated on October 26, 2016 — 3:12 PM SGT

Jakarta, Indonesia. Photographer: Rony Zakaria/Bloomberg

• Ratings company to meet with finance minister in coming weeks
• Indonesia failed to win rating upgrade from S&P in June

S&P Global Ratings may not be ready to upgrade Indonesia’s credit rating from junk yet, concerned by rising bad debts and risks to the growth outlook.

While S&P is “broadly optimistic” about Indonesia’s economy, there are worries that are still holding back a higher rating, Kyran Curry, a director of sovereign ratings and S&P’s primary analyst for the country, said by phone from Singapore on Tuesday.

“It’s very hard for me to recommend to a rating committee a higher rating on a country like Indonesia when there are material headwinds that are presenting at the moment,” he said. “And one is in the corporate sector and the second one is in the banking sector.”

Indonesia failed in June to win an upgrade from S&P, which rates the nation’s debt at BB+ with a positive outlook. S&P said at the time that while the country’s fiscal framework had improved, it still faced challenges on its budget performance. The ratings company will meet with Indonesian Finance Minister Sri Mulyani Indrawati within the next few weeks before it makes its next assessment due in December.

The banking sector is “still a fairly profitable system, it’s self-funded, it’s not reliant on external savings to fund its loan book growth and lending standards are adequate,” Curry said. “But at the same time non-performing loans are rising because of the stresses in the corporate sector.”

Uncertain Outlook

He added that capital adequacy ratios are sound, liquidity is “still ok” and that there are reasonable buffers in place.

The non-performing loan ratio climbed to 3.2 percent at the end of July from 2.7 percent a year earlier, according to data from the Indonesia Financial Services Authority.

“So this is not all a positive story,” said Curry. “There are some downward risks there, and combine that with the economic outlook which remains uncertain at the moment then the risks are still quite material.”

S&P is the last of the three main credit-rating companies to keep Indonesia on junk status. Curry said S&P still maintains a positive outlook on the nation’s debt and that President Joko Widodo had put in place good policies that demonstrated he was leading an administration that “was more reformist than previous governments.”

Josua Pardede, an economist at PT Bank Permata in Jakarta, said Indonesia still faces fiscal risks. He estimated the tax shortfall for this year will be more than 200 trillion rupiah ($15 billion), causing the budget deficit to widen to around 2.7 percent of gross domestic product. The government has a deficit cap of 3 percent of GDP.

“We’ve seen in the last two years that although the subsidy on energy is already being reallocated to more productive sectors, the fact remains the tax shortfall has increased,” he said. “That’s the reason why S&P has not been ready yet to upgrade Indonesia, but I think next year Indonesia should have a greater chance.”

Tax Amnesty

Widodo, also known as Jokowi, pushed through a tax amnesty program this year that’s earned the government about 98 trillion rupiah so far, helping to ease pressure on the budget.

He has pledged to ramp up spending on new roads, ports, railways and airports to boost economic growth to 7 percent. Growth has been lagging following a slump in commodity prices, with the central bank this week forecasting expansion at the lower end of its 4.9 percent to 5.3 percent range this year.

“We would observe that the tax amnesty bill is showing dividends and it looks like it’s going to lead to improved revenue performance going forward. That’s very important,” Curry said. Economic growth remains “relatively good,” which will support the government’s revenue and fiscal performance, he said.

Indonesia has also made strides in managing inflation and the currency, with the central bank allowing more flexibility for the rupiah to be determined by the market, Curry said.

“From a governance viewpoint what we’ve been seeing and why the rating is on a positive outlook at the moment is that there is much better policy coordination between the BI and the Ministry of Finance and the other areas of economic policy,” he said.

Indrawati’s return to the country as finance minister after a stint as a World Bank managing director in Washington has also reinforced S&P’s assessment of Indonesia.

“This new finance minister comes to the role with very impressive credentials and we think it’s strongly likely that she will address some of the momentum in following through on the government’s fiscal priorities,” Curry said. “She’s a very gifted policy maker and we expect that to really help the fiscal story.”

— With assistance by Thomas Kutty Abraham

http://www.bloomberg.com/news/artic...recommend-indonesia-upgrade-as-bad-debts-rise

BAD:
1. Stresses in the corporate sector --> Rising non-performing loan ratio.
2. Risks to the growth outlook
3. Tax shortfall
4. Budget deficit
5. Slump in commodity prices

GOOD:
1. Banking sector is still a profitable and self-funded.
2. Capital adequacy ratios are sound, liquidity is “still ok”.
3. President Joko Widodo had put in place good reformist policies.
4. Tax amnesty program / Tax reform.
5. Govt spree on Infrastructure Projects.
6. Good policies in managing inflation and the currency.
7. Better policy coordination between the BI and the Ministry of Finance and the other areas of economic policy.
8. The return of a very gifted policy maker with very impressive credentials Minister Sri Mulyani Indrawati.

 

[Nike]

The rising of NPL is much to do with global economic downturn and commodity slump. Mostly private sector in mining and palm oil.... not a really recent news

 

[skyhigh88]

The rising of NPL is much to do with global economic downturn and commodity slump. Mostly private sector in mining and palm oil.... not a really recent news

True! but it will be nice to have NPL rates gone down. Maybe banks can do a tighter screening before lending money.

sygnya masih ada jg org bank yg bisa disogok untuk keluarin pijeman ke PT yg harusnya gak qualified

 

[skyhigh88]

The Jakarta Post
Indonesia’s wooing of China pays off
Dylan Amirio
Jakarta | Fri, October 28 2016 | 07:22 am

Indonesia’s wooing of China seems to have paid off as Chinese investments continue to perch on the list of top-five realized foreign direct investments (FDI) this year.

Indonesia-China economic relations are getting warmer, a trend not seen in previous years.

According to the latest data from the Investment Coordinating Board (BKPM), the realized investments from China and Hong Kong hovered in third and fourth place in the January-to-September period, whereas a year ago, Hong Kong only sat in ninth place and China sat in 10th place.

Since taking office in October 2014, President Joko “Jokowi” Widodo has stepped up his administration’s attempt to court China into making various business deals in the archipelago.

In less than two years, Jokowi has met five times with Chinese President Xi Jinping.

He has also held a string of meetings with Chinese businesspeople, with one of the most notable being Jack Ma, the chairman of the Chinese online marketplace Alibaba Group Holding Ltd. Jokowi even made Ma an advisor to Indonesia’s steering e-commerce committee.

The efforts have not stopped at meetings.

The Investment Coordinating Board (BKPM) has created a special desk as well to facilitate Chinese investors. The Chinese desk — as it is dubbed — offers online services using mobile application platforms WeChat and WhatsApp to assist with the investment-application process and provide investment regulation updates in the Chinese language.

The results have been satisfactory. By the end of September, China was already working on 1,205 projects, worth US$1.6 billion, while Hong Kong was working on 758 projects, worth $1.6 billion.

In total, the amount of foreign direct investment (FDI) stood at Rp 295.2 trillion ($22.66 billion), equal to almost 77 percent of the full-year target of Rp 386.4 trillion. Singapore remains Indonesia’s top foreign investor and the steel and mineral processing industries remain the most preferred sector of foreign investors.

China, in particular, has most of its investments parked in the steel and mineral processing sectors, with smelters in Sulawesi included as part of its investment. One example is PT Virtue Dragon Nickel Industry, which processes ferronickel in Konawe, Southeast Sulawesi province.

BKPM investment monitoring and implementation deputy chairman Azhar Lubis attributed the high investment in those sectors to the ban on mineral ore exports.

“Companies have no choice but to build smelters. However, at the same time they feed other industries, such as the automotive industry,” he said on Thursday.

Chinese investors are also going large in the cement and automotive industries, signaling a commitment to Indonesia’s infrastructure sector, namely by Chinese cement maker Anhui Conch Cement Co. Ltd., which has built cement plants in Kalimantan and the Papua islands.

BKPM chairman Thomas Lembong pointed to tourism as another sector that Chinese investors could move into.

“Chinese investments in tourism are small, but we see more and more Chinese tourists visit Indonesia. It can be an opportunity for them to cater to the tourists,” he said, adding that it was also upbeat that it would be able to achieve its full-year target in the remaining months.

Separately, Chris Kanter, an advisory board member of the Indonesian Chamber of Commerce and Industry (Kadin), said opportunities were robust for Chinese investors, citing large demand from the Indonesian market.

“Sometimes commitment does not translate into full realization, so it takes time for a project to be complete. To see the completion, the government simply has to consider their detailed demands,” he said.

Samuel Asset Management economist Lana Soelistianingsih acknowledged the positive results, but called on the BKPM to dig deeper into the investors’ claims and avoid labeling first steps such as land acquisition to build factories as “realization”.

http://www.thejakartapost.com/news/2016/10/28/indonesia-s-wooing-china-pays.html

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Focus Taiwan
Indonesia eyes Taiwan's innovation, tech capabilities
2016/10/28 15:18:17

Jakarta, Oct. 28 (CNA) A trade official from Indonesia said on Thursday that his country is upbeat about cooperation between Taiwan and the Southeast Asian country, particularly given Taipei's strong innovation and industrial technology development.

Iman Pambagyo, director general of international trade co-operation under Indonesia's Ministry of Trade, told an investment conference held by a delegation from Taiwan's Ministry of Economic Affairs (MOEA) in Jakarta that his country has abundant natural resources which should make Taipei and Jakarta natural partners at a time when Taiwan is pushing its "new southbound policy."

Since President Tsai Ing-wen (蔡英文) of the pro-independence Democratic Progressive Party took office on May 20, the administration has sought to encourage Taiwanese investors to look more to Southeast Asia and India as a way of reducing dependence on China.

The government's new southbound policy is aimed at building closer ties with business partners in the region and hopes to turn the Association of Southeast Asian Nations (ASEAN) into an extension of Taiwan's domestic market.

The Taiwan delegation led by Vice Economics Minister Yang Wei-Fuu (楊偉甫) arrived in Indonesia on Wednesday from Malaysia. During its trip the delegation has held investment seminars in a bid to boost business ties between Taiwan and the two ASEAN member nations.

Iman commented on the way Taiwan has taken advantage of its lead in innovation and industrial technology, adding that Indonesia's interest in developing e-commerce is one area the two sides could work together.

In addition, Iman said that the Indonesian government is gearing up to strengthen industrial development, which will require a large pool of talent, creating more opportunities for cooperation.

The Taiwan delegation is comprised of representatives from state-owned or government-invested firms such as Taiwan Sugar Corp. (台糖) and Taiyen Biotech Co. (臺鹽實業) as well as officials from the trade promotion group Taiwan External Trade Development Council (TAITRA).

Yang said that Indonesia is seeking to improve infrastructure and Taiwan is willing to provide assistance, indicating that Jakarta has asked for Taipei's cooperation in a wide range of industries, ranging from sugar and salt production, to ship building, natural gas and solar energy development.

(By Jay Chou and Frances Huang)
enditem AW /

http://focustaiwan.tw/news/aeco/201610280011.aspx

 

[pr1v4t33r]

Karpowership, PAL to build power ships to light up Indonesia
Karpowership Indonesia, which operates floating power plants, has sealed a cooperation deal with state-owned ship builder PAL Indonesia to manufacture power ships with a total capacity of 5,000 megawatts (MW).

The subsidiary of a Turkey-based company will transfer the power ship technology to PAL ranging from installation, construction and design to procurement and maintenance.

“The aim is to cooperate with PAL for the transfer of technology, for the local-content increase, so power ships can become a solution for Indonesia,” Karpowership CEO Orhan Remzi Karadeniz told journalists in Jakarta on Friday.

Karpowership has supplied power ships to provide electricity in remote areas of the country such as Amarang, North Sulawesi. “We will continue delivering power ships to Ambon, Lombok, Kupang and Medan in the next couple of months,” he said.

PAL president director Muhammad Firmansyah Arifin said the collaboration could support the government’s ambitious program to generate an extra 35,000 MW of electricity for the nation within five years.

“Floating power plants are very suitable for Indonesia, which consists of many islands. We will first learn about the technical and management aspects from them and build the vessels soon,” he said, adding that it would take about a year for PAL to build a power ship.

http://www.thejakartapost.com/news/...-build-power-ships-to-light-up-indonesia.html

 

[patu]

Woow ... Your rating is still "JUNK" .. lower than Philipinnes with their "investment Grade" rating ..

No wonder ..Whatever you say .. Like and/or Dislike ...No doubt .. ..Others can assess your condition "more accurate and objective" than yours ...(See our case ... Najib and 1MDB .. but, S&P still did not deteriorate our "Investment Grade of A-" rating into JUNK as they did to Indonesia) ..

http://www.theborneopost.com/2015/02/11/sp-affirms-currency-rating-on-malaysia-with-stable-outlook/

And no wonder what ever you said it is up on us to choose not you nor your troller compatriots.
Oh come on bro seek our effort and advantage.
As for me it is better to be improofing then be stall.