Indonesia Economy Forum

[Daniel808]

MONDAY, 02 JANUARY, 2017 | 07:40 WIB
AIIB to Finance Three Indonesian Projects

Russia's delegate prepares to sign the articles of agreement of the Asian Infrastructure Investment Bank (AIIB) at the Great Hall of the People, in Beijing, June 29, 2015. China will hold a 30.34 percent stake in the Asian Infrastructure Investment Bank (AIIB), the Finance Ministry said on Monday, making Beijing the largest shareholder in a bank that is expected to project the country's growing influence. REUTERS/Jason Lee



TEMPO.CO, Jakarta - The Asian Infrastructure Investment Bank (AIIB) will finance three potential projects in Indonesia, namely Sumatra toll road, power plants, and dam maintenance and operation. “It’s been planned,” AIIB vice president Luky Eko Wuryanto told Tempo last week.

Lucky said that the AIIB has held talks with the government on the amount of financing. The funds to finance dam operations and Java 7 power plants are readily available this year. “[The fund for] Sumatra toll road [project] will be disbursed by 2018.”

The AIIB had earlier disbursed US$216 million (Rp2.8 trillion) to finance development of slum areas and US$100 million (Rp1.3 trillion) for regional infrastructure development.

Operation and maintenance of dams will cost US$300 (Rp4 trillion), whereas the projects of the toll road and power plant construction will cost US7.5 billion (Rp100 trillion) and US$1.8 billion (Rp23.4 trillion).

Luki said that the AIIB will open a representative office in Indonesia to finance potential government projects included in the Blue Book.

Basah Hernowo, Director for Financing System and Procedures, the National Development Planning Agency, said that foreign loans are the easiest solution to funding development projects. Indonesia can only generate Rp1,978.6 trillion from Rp4,796.2 trillion needed for development projects in the next five years.
ANDI IBNU

http://en.tempo.co/read/news/2017/01/02/056831789/AIIB-to-Finance-Three-Indonesian-Projects

Thanks to AIIB-Asian Infrastructure Investment Bank for your help to support Indonesia's Development

 

[Nike]

Pembangunan LRT JakartaPekerja menyelesaikan pembangunan konstruksi Light Rail Transit (LRT) di kawasan Kampung Makassar, Jakarta Timur, Kamis (5/1/2017). Proyek itu ditargetkan rampung tahun 2018 mendatang, sebelum Asian Games ke-18 dimulai. (ANTARA /Widodo S. Jusuf)

Pembangunan LRT JakartaPekerja berjalan di area pembangunan konstruksi Light Rail Transit (LRT) di kawasan Kampung Makassar, Jakarta Timur, Kamis (5/1/2017). Proyek itu ditargetkan rampung tahun 2018 mendatang, sebelum Asian Games ke-18 dimulai. (ANTARA /Widodo S. Jusuf)

 

[patu]

Jakarta`s giant sea wall to prevent city from sinking: Bappenas

Jakarta (ANTARA News) - The giant sea wall to be built along the coast of Jakarta is designed to prevent the city from sinking, head of the National Development Planning Board (Bappenas) Bambang Permadi Soemantri Brodjonegoro has said.
"The giant sea wall is planned on necessity not on some sort of image projection. Therefore no one should make a controversy of it," Bambang, who is minister for national development planning, said in a year-end discussion here on Saturday.
The national Capital Integrated Coastal Development (NCICD) has been in the center of controversy following corruption case involving the city councilor and a developer. Bambang said he has submitted to President Joko Widodo a report about calculation and comprehensive analysis of the project.He said the project become urgent as the city is sinking faster than previously expected.

"We are confronted with a situation of the city sinking faster than originally estimated. Not only Jakarta but all coastal areas of Java tend to sink," he said. Semarang of Central Java has even flooded with sea water, he added.
"Jakarta sinks much faster than previously estimated because of much use of ground water, therefore, we have to address this problem immediately," he said.
The capital city, one of the worlds most densely populated cities, sits on a swampy plain and is sinking at a faster rate than any other city in the world.

The first phase of building the giant sea wall that will cost around Rp10 trillion is to keep Jakarta from caving in until 2025, he said.In addition the city administration has to control the use of ground water by improving the drinking water supply system, he said.

"For that purpose in the next phase we need to build sea wall not on-shore but off-shore that the cost would be much high at Rp70 trillion up to Rp80 trillion. That might save Jakarta until 2040 or longer," he said.The plan, therefore, has to be carefully drawn and the technology is not easily available, he said.

He said the sea wall on shore has to be built soon in places where the ground sinks faster, adding by 2020 or 2021, the government has to start planning construction of the off shore wall.(*)

Source : antara

I hope that this "not" new consept will be design and be constructed as clean, transparantly and trustfully. We should not built "the 'proyek model' costructions, but the best from designing to it's end result(building, brigde nor high way).
For the brighly future of us all go!

 

[Nike]

Broadband penetration boosts GDP
Jumat, 6 Januari 2017 19:01 WIB | 265 Views

Jakarta (ANTARA News) - Every 10 percent rise in broadband penetration will increase the gross domestic product (GDP) by nearly 1.3 percent, Information and Public Communications Director General at the Communications and Information Technology Ministry Rosarita Niken Widiastuti stated.

"Several studies indicate that every 10 percent increase in teledensity would raise the GDP by as much as 0.7 percent," Widiastuti stated in her opening remarks at the meeting of the Board of Directors of the Confederation of ASEAN Journalists here on Friday.

She noted that this fact demonstrated that Information and Communication Technology (ICT) is able to boost public welfare, as it supports creativity and innovation.

According to Widiastuti, the development of ICT supports one of the Association of Southeast Asian Nations (ASEANs) sustainability agenda comprising connectivity that is built through verbal, non-verbal, and personal communication.

"Hence, mass communication, including print and electronic media, as well as communication infrastructure, are significantly needed," Widiastuti noted.

She explained that some areas of ICT have development potential in Indonesia coupled with an increase in the number of internet users and the growth in mass media.

"A survey in 2012 showed that there are 120 million active Facebook users in the ASEAN community," she stated.

"Currently, there are 132 million internet users in Indonesia, of which 95 percent of 63 million have Facebook and Twitter accounts," she said, adding that 88 million Facebook users have placed Indonesia as the worlds fourth-largest Facebook user country behind India, the US, and Brazil.

Meanwhile, more than 50 million Twitter users in the country place Indonesia as the worlds fifth-largest twitter user community after the US, Brazil, Japan, and the UK.

In addition, there are 15 private television stations, 390 local television broadcasters, four million paid television subscribers, 415 newspapers, 495 magazines, 257 tabloids, and 5.3 million blogs.

"Such media presence holds enough potential to ensure socialization and influence the people of ASEAN member states. The concern is regarding the willingness of the media to actually perform its role," Widiastuti emphasized.

She expressed hope that the media will highlight the values of idealism to fulfill the publics right to knowledge by providing accurate, factual, correct, educative, inspirational, enlightening, and empowering information. (*)

http://www.antaranews.com/en/news/108786/broadband-penetration-boosts-gdp

 

[Nike]

Infrastructure, transportation development remains priority this year: President
Kamis, 5 Januari 2017 23:23 WIB | 780 Views

Jakarta (ANTARA News) - The development of infrastructure and transportation to boost inter-regional connectivity will remain the governments priority in 2017, President Joko Widodo (Jokowi) has said.

"As we enter 2017, I would like to stress, once again, the development of infrastructure and transportation that ensures connectivity between areas, islands and especially, rural regions will remain the governments priority," Jokowi stated, in a closed meeting in the State Palace Complex here Thursday.

It will facilitate balanced development and growth, at the same time, narrowing inequality between cities and villages in Indonesia, the president believed.

"I want to emphasize that building connectivity does not solely mean developing transportation infrastructure, but it is also related to logistic systems and multi-means distribution," he remarked.

People in rural, border and far-flung areas have to pay a high price to buy even the basic necessities. They even find it hard to obtain these goods, the president pointed out.

"I have, therefore, directed the authorities concerned to ensure that toll roads and flyovers are well integrated with industrial areas and logistic centers," he declared.

Besides, sea toll roads and sky bridges should boost the areas economy by facilitating easy movement, the president asserted.

The infrastructure in the country must ensure easy exchange of goods between districts, rather than just allowing goods into a particular area, the president stressed.(*)

http://www.antaranews.com/en/news/1...elopment-remains-priority-this-year-president

 

[Nike]

Foreign Perceptions of Indonesian Economy, Gov't vs JPMorgan
04 January 2017 |

• Donald Trump
• Sri Mulyani Indrawati
• JP Morgan
• Federal Reserve
• GDP

The government of Indonesia suspended all cooperation with US multinational banking and financial services firm JP Morgan Chase after the US bank double downgraded Indonesia from overweight to underweight without elaborating too much on the exact motives behind this drastic move. According to Indonesian government officials this downgrade is excessive and lacks evidentiary support or rational justification. Moreover, they argue this "misleading" downgrade has a big psychological impact on investors and therefore it "disturbs Indonesia's financial stability".

P Morgan released the report (that includes Indonesia's double downgrade) in November 2016, the month in which global markets were rocked by the surprise victory of Donald Trump in the 2016 US presidential election, another looming Fed Funds Rate hike, while ethnic and religious tensions were rising in Indonesia with a huge demonstration being staged in Jakarta - in early November - by conservative Muslims who demanded the arrest of Jakarta Governor Ahok. In that month (November 2016) the Indonesian rupiah depreciated around 4.5 percent against the US dollar.

Indeed, in November 2016, there was plenty of reason to be concerned about Indonesia's short-term conditions (and therefore foreign investors sold a net USD $2.8 billion of Indonesian stocks and bonds in the fourth quarter of 2016). Not only Indonesia, also other emerging markets were plagued by capital outflows due to (looming) monetary tightening in the USA and expectations of a rebound in US corporate earnings, accelerated US economic growth, and prospects of tax cuts and fiscal stimulus under the new Donald Trump administration.

However, we regard JP Morgan's double downgrade of Indonesia as "excessive" (a single downgrade would make more sense, as in the case of Brazil). Likewise, we label the reaction of Indonesian government officials as "excessive" as well.

Indonesian Finance Minister Sri Mulyani Indrawati was not amused when learning about the double downgrade. According to her, Indonesia's economic fundamentals are currently strong, reflected by accelerating GDP growth, low inflation, an improving current account deficit, a stable rupiah exchange rate (supported by the government's tax amnesty program), and a manageable budget deficit (2.46 percent of GDP). Sri Mulyani said it is irresponsible of JP Morgan to double downgrade Indonesia and therefore she insisted to cut all ties with JP Morgan. However, the reaction of the Indonesian government also gives rise to concern whether other research providers may face difficulties when releasing reports about the Indonesian economy that are deemed to be negative.

The termination of cooperation between the Indonesian government and JP Morgan implies that the "perception bank" status of JP Morgan in Indonesia has been revoked and therefore it cannot provide any services within the largest economy of Southeast Asia anymore, including the underwriting of bonds (JP Morgan is a traditional underwriter for Indonesian government global bonds).

JP Morgan told news agency Bloomberg on Tuesday (03/01) that their operations in Indonesia continue to run as usual and they will discuss matters with Indonesia's Finance Ministry to come to a solution.

It is interesting to take a look at the perceptions - of a selection of influential foreign institutions - on the Indonesian economy.

Institution
Perception
Fitch Ratings Recently Fitch affirmed Indonesia's long-term foreign- and local-currency issuer default ratings at 'BBB-' but revised the outlook from 'stable' to 'positive'. The improvement is primarily attributed to Indonesia's low government debt burden, favorable economic growth outlook, and the government's structural reform agenda.
BNP Paribas SA Says the growth spurt in the USA will aid Asian equities although higher inflation and sharper-than-anticipated rate hikes in the USA also imply sustained US dollar strength, which will hit sentiment. Risk premium in emerging markets is expected to remain high. It sees stable economic growth in Indonesia and recommends buying Indonesia’s rupiah because of the country's higher yields and support from the commodity-producing economy.
HSBC Global Asset Management Rupiah-denominated sovereign bonds are their favorite as they offer good value after the recent selloff. While there remain plenty of global uncertainties, Indonesia is better positioned than its regional peers in Asia.
Western Asset Management Believes that Indonesian and Indian (local currency) bonds are good choices.
Morgan Stanley Included Indonesia in its sovereign credit trade recommendation for 2017.
Credit Suisse Group AG Positive on Indonesia due to the improving macroeconomic environment, balance sheets, valuations and underexposure of global funds.
IG Asia Favors Indonesian equities because amid subdued growth and an uncertain trade situation, economies with strong domestic fundamentals appear to be most promising.
Pioneer Investment Management Keeps overweight positions in India and Indonesian notes due to the two nations' reform processes, improving economic growth and relatively high yields.
Goldman Sachs Believes Indonesia's economic fundamentals are strong enough to limit heavy pressure on its currency and capital outflows amid monetary tightening in the USA.
Indonesia Investments Despite possible short-term capital outflows in times of monetary tightening in the USA (or other global shocks), Indonesia's economic fundamentals are improving gradually, yet continuously, due to structural reforms and prudent fiscal management of local authorities. The government's focus on the development of the manufacturing industry and infrastructure will significantly strengthen the country's economy on the long-term.

http://www.indonesia-investments.co...indonesian-economy-gov-t-vs-jpmorgan/item7491

http://www.indonesia-investments.co...indonesian-economy-gov-t-vs-jpmorgan/item7491

 

[Nike]

Indonesian ministry to intensify coffee plantation
Sabtu, 7 Januari 2017 03:21 WIB | 789 Views

Farmers picking Arabica coffee beans in the village of Fajar Harapan, Bener Meriah, Aceh Province. (ANTARA/Rizky Pinossa)

Jakarta (ANTARA News) - The Indonesia Agriculture Ministry, through its Plantation Directorate General, will carry out a coffee intensification program on 8,850 hectares (ha) of land at the countrys coffee production centers.

The activity aims to increase the plantation productivity and national coffee production, Plantation Director General Bambang said Friday (Jan. 6).

"We have allocated Rp35.5 billion from the state budget for the Plantation Directorate General toward these activities," he declared.

The intensification of plantation will be carried out in the form of improvement in the Robusta coffee plants on an area of 4,900ha in 22 districts, spread across nine provinces.

The improvement will also be carried out for Arabica coffee plants, covering an area of 3,750ha in 17 districts, spread across 10 provinces. There will also be an expansion in plantation area by 200 ha in two districts of Central Kalimantan.

Through improvement in plantation and expansion of its area, the directorate general has targeted national coffee production of 637,539 tons in 2017, with the total plantation area covering 1.227 million ha, Bambang revealed.

The target is lower than in 2016 where the coffee plantation acreage in the country had reached 1.228 million ha with a production of 639,305 tons, he added.

In addition to crop intensification and expansion, the directorate general will also handle plant pests, make provision for post-harvest processing tools and quality seeds to improve national coffee production, he affirmed.

The national coffee production, in the last five years, experienced a real growth of around 1.29 tons per year during the 2010-2015 period, while the productivity was 1.24kg per ha, Bambang stated.
(Uu.A014/INE/KR-BSR/B003)

http://www.antaranews.com/en/news/108794/indonesian-ministry-to-intensify-coffee-plantation

 

[papacita]

Diversity ‘source of power’ in Indonesia: Jokowi

For the sake of unity – President Joko “Jokowi” Widodo (front, right) in Pekalongan, Central Java, on Jan. 8 calls on all Indonesian people to maintain unity in his remarks to commemorate the birth of the Prophet Muhammad. Indonesian Military commander Gen. Gatot Nurmantyo and National Police Gen. Tito Karnavian attended the event, which was hosted by Habib Muhammad Luthfi (front, left), a noted ulema from Pekalongan. (JP/Suherdjoko)
President Joko “Jokowi” Widodo has reminded all of the people in Indonesia that diversity is a gift from God that they should always be grateful for.

Speaking in Pekalongan, Central Java, on Sunday during Maulid Nabi, a commemoration of the birth of the Prophet Muhammad, the President said that diversity could even become a source of power if all Indonesian people could maintain their unity.

“Rasulullah [Prophet Muhammad] has given an example in engaging in politics. He once made a political contract with all elements and components of society through the Madinah Charter, which aimed to maintain their unity. Islam pays respect to the diversity of ethnic and social groups,” said Jokowi at the Kanzus Sholawat Building in Pekalongan.

“Indonesia has more than 700 ethnic groups with 1,100 local languages and this shows the diversity. The diversity is a gift from God we have always to be grateful for. We have 34 provinces and 516 regencies and cities. Let’s maintain our unity. We need unity. ‘NKRI Harga Mati!’ [The Unitary State of the Republic of Indonesia is undisputed],” the President said.

Showing loyalty – Hundreds of students of Islamic boarding schools listen attentively to President Joko “Jokowi” Widodo’s remarks during the Maulid Nabi celebration in Pekalongan, Central Java, on Jan. 8 while they display red-and-white banners emblazoned with the message: “NKRI Harga Mati” (The Unitary State of the Republic of Indonesia is Undisputed). (JP/Suherdjoko)
Jokowi said that social media had now become an intangible enemy. Everyone now has a mobile phone through which all information is available.

“Some information is true, but some other is false. There is information containing accurate facts, but some other information spreads slander. There is truthful information, but some of it is defamatory. The world [of information] opens very wide. Information must be selected. Otherwise it will divide us,” said Jokowi during the event, which was hosted by Habib Muhammad Luthfi bin Yahya, a noted ulema from Pekalongan. (ebf)
http://www.thejakartapost.com/news/2017/01/08/diversity-source-of-power-in-indonesia-jokowi.html

Power Plant in Batang, C. Java, to Start Operations in 2020

Jakarta. Construction of a $4.2 billion worth power plant in Batang, Central Java, is set to be completed in 2020, Bhimasena Power Indonesia spokeswoman said, as quoted by Antara news agency.

The project on a 226-hectare plot in Ujungnegoro, Ponowareng and Karanggeneng villages has been opposed by local residents and farmers, whose workplaces will be affected by land acquisition.

Bhimasena Power Indonesia (BPI) spokeswoman Ayu Widianingrum said the company believed "the construction of the $4.2 billion facility will be completed as scheduled," in 2020.

The 2,000-megawatt power plant will be connected to the Java-Bali power grid.

State utility company Perusahaan Listrik Negara (PLN) will buy electricity generated by the plant under a 25-year power purchase agreement.

Ayu said the land acquisition disputes have already been settled.

BPI is a joint venture between Japan's Electric Power Development, known as J-Power, and Adaro Power controlled by Indonesian coal miner Adaro Energy and Japan's Itochu Corporation.

According to Ayu, the Batang plant, which is reportedly going to be the biggest plant in Southeast Asia, will use the latest environment-friendly technologies.

Japan Bank for International Cooperation and a syndicate of international banks provide financial support for the project.

After 25 years, under the so-called "build, operate, own and transfer" scheme, the plant's ownership and assets, including the land, will be transferred to PLN.
http://jakartaglobe.id/business/power-plant-batang-c-java-start-operations-2020/

Kimia Farma to open 100 new outlets

Jakarta (ANTARA News) - PT Kimia Farma Apotek, the operator of hundreds of dispensaries all over the country, will open 100 more dispensary outlets this year.

The subsidiary of the state owned pharmaceutical company PT Kimia Farma Tbk said the new outlets would bring the total number of the companys dispensaries to 1,000 units this year.

Chief Executive of PT Kimia Farma Apotek Imam Fathorrahman said the management has set aside Rp20 billion for the plan to increase the number of its outlets.

"Currently the company already has 900 dispensaries with sales valued at a round Rp1.3 trillion last year," Imam said here on Sunday.

He said to coincide with its 14th anniversary in January, PT Kimia Farma Apotek will start entering the market of e-commerce.

"Holders of smart phones have reached 126 percent of the total population and internet owners around 52 percent. This is an extraordinarily big e-commerce market," he said.

In the first phase, the company will eye the Jabodetabek (Greater Jakarta) market and cooperate with order shopping service between Go-Mart.

"In principle through this service we could be accessed by customers in the Jabodetabek area, Bandung, Surabaya, Bali, and Makassar with more than 250 selected locations of our dispensaries," he said.

The digital service, however, is only for non-ethical medicines that could be sold without doctors prescription.

"This access has become a requirement . People dont have to go to dispensary for cosmetics and drugs that could be bought without doctor prescription," he said. (*)
http://www.antaranews.com/en/news/108823/kimia-farma-to-open-100-new-outlets

 

[pr1v4t33r]

Developement progress for SKOUW border post in Papua between Indonesia & PNG

Few months ago

Few weeks ago

 

[pr1v4t33r]

Asia Graphics - Indian stocks set to see highest earnings growth in 2017 (followed by Indonesia)

Indian stocks are expected to see the highest earnings growth of about 20 percent in the next four quarters, followed by Indonesia and South Korea, estimates data sourced from Thomson Reuters StarMine showed.

http://uk.reuters.com/article/asia-stocks-graphics-idUKL4N1EZ23K?rpc=401&


Indonesia bars JPMorgan from next dollar sukuk issuance

Indonesia has barred investment bank JPMorgan Chase & Co from submitting an underwriting proposal for its next U.S. dollar sukuk issuance, a finance ministry official said on Monday.

"The point is (JPMorgan) will no longer do business with the government," said Suahasil Nazara, head of the fiscal policy office at the ministry of finance.

The comments come after a November downgrade by the U.S. bank in its Indonesian stocks recommendation to "underweight" from "overweight".

The government has asked other banks to submit proposals by Thursday for a planned U.S. dollar sukuk offering, IFR, a Thomson Reuters publication wrote on Monday.

http://www.reuters.com/article/indonesia-bonds-jpmorgan-idUSJ9N1DV01M?rpc=401&

 

[papacita]

Indonesia to open 392 km of new toll roads in 2017: minister

An Indonesian minister said on Monday that the government has set a target to open 392 km of new toll roads in 2017, adding the total new toll roads opened by the government since 2015 to 567.9 km.

Public Works and Housing Minister Basuki Hadimuljono said that the new toll roads scheduled for operation this year would come from 34 toll road projects across the nation.

The minister said that his ministry has set target to open 1,182.7 km of new toll roads by 2018, extending to 1,851 km by 2019.

"So it would be exceeding from our new toll road target initially set at 1,000 km within 5 years," the minister said in Batang, Central Java.

The new toll roads scheduled to commence services this year would connect provinces in Java and Sumatra with several others to connect Jakarta and its outskirt areas, the minister said.
http://www.globaltimes.cn/content/1027855.shtml

Indonesia set to become geothermal superpower by 2025

Indonesia has set a target of developing 9.6GW of geothermal generation by 2025, almost seven times more than it has now, and a little less than three times as much as the US, the present leader for installed capacity.
The target was set by Arcandra Tahar, the deputy minister for energy, during a visit to the main Javanese site of Pertamina Geothermal Energy (PGE), the subsidiary of a state-owned energy company that is Indonesia’s main producer.

The minister said the geothermal would provide the country’s main baseload power supply in future, making Indonesia the first country to base its energy strategy around this means of generation.

It would also be the realisation of plans that were first drawn up while the country was a Dutch colony. The first geothermal wells were drilled at Kamojang in 1926, and there are now four operating generating units with an output of 235MW.

These units are based on the slopes of Mount Guntur, one of the most active volcanoes in Java. Guntur produced frequent explosive eruptions during the 19th century, although it has since been dormant.

Despite the risks, the minister said geothermal was attractive to Indonesia’s energy planners because it was a reliable source of baseload power, and its greater use would allow a 30% cut in oil use.

Indonesia is reckoned to have something like 28GW of potential geothermal energy in some 265 volcanic sites, or around 40% of the global total. However, Mr Tahar said the challenge would be to develop it at a competitive price: as a 2015 World Bank report noted, investment in oil and gas sees much higher rates of return, which has meant that PGE has faced “a continuous battle for resources from its parent company”.

The country’s total installed geothermal capacity at present is about 1.4GW.
http://www.globalconstructionreview.com/news/indonesia-set-beco7me-geother7mal-superpo7wer-2025/

 

[papacita]

China Set to Take a Shine to Indonesian Nickel After Ore Export Ban Eased
Before the ban was instituted in 2014, Indonesia was a major supplier to China of the stainless-steelmaking ingredient

A worker monitoring the nickel melting process at a smelter of near Sorowako on Indonesia's island of Sulawesi in January 2014. PHOTO:REUTERS
Indonesia’s easing of a ban on nickel-ore exports presents a golden opportunity to China, which has spent the past three years hopscotching around Southeast Asia, Australia and even Africa to find raw minerals to feed its steel mills.

On Thursday, the Southeast Asian nation surprised markets by partially reversing a ban on exports of nickel ore and bauxite and extending an exemption for shipments of copper and other mineral concentrates. Before the ban on ore exports was imposed in January 2014, Indonesia was a major supplier of nickel ore and bauxite, a key aluminum ingredient, to China.

China accounts for around 30% of the world’s nickel consumption, the majority of which is used for making stainless steel, which has enjoyed a robust production run despite the nation’s economic slowdown.

The country’s proximity to Indonesia will reduce China’s cost of procuring ore for production of stainless steel and aluminum, which will likely weigh on international prices of these commodities. Before the export ban came into effect, Indonesia accounted for 12% of global output of nickel ore and between 12%-16% of bauxite production.

Restrictions on mining in two other Southeast Asian nations, the Philippines and Malaysia, also mean the timing of Jakarta’s decision could prove fortuitous for Beijing.

“Chinese producers of refined nickel will still import nickel ore from Indonesia for their domestic smelters as global supplies are tight with fears of a supply crunch from the Philippines,” said Sabrin Chowdhury, a commodities analyst at BMI Research. Since taking office in July, Environment Secretary Regina Lopez has canceled six mine permits in the Philippines, the world’s largest nickel-ore supplier, as part of a clampdown on the industry over environmental concerns.

Manny Samson, chief financial officer of Nickel Asia Corp., the Philippines’ largest nickel producer, said that given the size of Indonesia’s nickel suppliers even a partial lifting of its export ban is expected to pressure prices. “This news upsets almost everyone’s expectation that this will be a supply deficit year. We just hope the market could absorb the additional supply,” he said.

“The price action in the nickel market suggests a ‘wait and watch’ attitude of market participants; the stainless steel equities corrected 6-7%” Thursday, Citibank said in a report.

In Malaysia, the mining of bauxite has been suspended since last year in response to worries about pollution. Indonesia’s relaxed ban is likely to weigh on prices of the mineral, said Helen Lau, an analyst with Argonaut Research. China has been a heavy buyer of bauxite from Malaysia and then Australia in the period since Indonesia’s ban was implemented.

China accounts for around half of global production of aluminum. The nation’s aluminum smelters have been encouraged by a year-long rally to add new capacities and bring back on board previously idled capacity.

Indonesia’s revised regulations allow mining companies to continue exporting as long as they meet several conditions, including committing to build smelters over a five-year period and converting from long-term contracts of work to a mining licensing system, a process that could take some time. Producers also are required to reserve at least 30% of their smelter capacity for processing low-grade nickel ore, though any excess ore would be eligible for export. Mining companies in Indonesia typically prefer to use only higher grades of ore, which are easier to process.

Under the revised rules, there should be plenty of available nickel ore for exports but shipments are still likely to be affected by export taxes, said Ben Lawson, chairman of the Djakarta Mining Club, an industry group.
http://www.wsj.com/articles/china-s...f-indonesias-nickel-ore-export-ban-1484309040

32 Smelters Worth US$20bn Operate in Indonesia

TEMPO.CO, Jakarta - As many as 32 mineral processing and refining corporations operated in Indonesia between 2012 and 2016 with a total investment of USD20 billion, said Jonathan Handoyo, deputy chairman of Processing and Smelting Companies Association (AP3I).

“From 2012 to 2017, as many as 32 new smelters were built. The investment value was 20 billion US dollars,” Jonathan told Tempo on Thursday in Jakarta.

According to him, the majority of the investors Chinese firms holders of industrial permits (IUI) issued by the Investment Coordinating Board (BKPM).

The 32 companies are engaged in processing activities of a wide range of minerals, such as nickel, alumina, iron, zircon, silica and chopper. They operate in various regions in Indonesia, such as Ketapang, Banten, Gresik, Konawe, Morowali and Obi Island.

Jonathan said that he had no knowledge on possible new investments in 2017. “We shall wait the government’s decision,” Jonathan said, as quoted by the news agency Antara.

ANTARA
https://en.tempo.co/read/news/2017/01/13/056835561/32-Smelters-Worth-US20bn-Operate-in-Indonesia

 

[Nike]

Jp Morgan lose to our pressure

http://m.antaranews.com/berita/607087/bi-wajar-jp-morgan-naikkan-peringkat-indonesia

 

[pr1v4t33r]

Indonesia Rocked The Mining World With This Unexpected Move

One major event dominated mining news this week. Affecting nearly every major metal — from copper and nickel to gold and aluminum.

An abrupt and unexpected change in mining laws from major producing nation Indonesia. As I wrote last Thursday, Indonesia’s mining sector has been in a state of flux. With exports of copper concentrates halting in the face of a January 12 deadline imposed years ago by the government.

Lawmakers had been scrambling to pass legislation dealing with the export stoppage. And Friday they did introduce new rules — covering not just copper, but also unexpectedly reopening the door to exports of other metals.

readmore: http://oilprice.com/Energy/Energy-G...e-Mining-World-With-This-Unexpected-Move.html


Indonesia`s trade balance sees US$8.78 billion surplus

Indonesias 2016 trade balance saw a surplus of US$8.78 billion compared to 2015, driven by a 1.99 percent rise in exports during December, according to the Central Statistics Agency (BPS).

According to BPS Chief Suhariyanto on Monday, Indonesias exports reached $144.43 billion, while its imports stood at $135.65 billion. He added that the trade surplus in 2016 was higher than in the previous year, when it was recorded at $7.67 billion.

The 1.99 percent rise in December 2016 exports to $13.77 billion saw a 1.13 percent increase for non-oil and non-gas exports to $12.54 billion, while oil and gas exports increased by 11.66 percent to $1.231 billion compared to the previous month.

Among the non-oil and non-gas commodities, mineral fuels recorded the highest increase in December 2016 with a value of $140.6 million, up 9.06 percent from the previous month.

The increase in oil and gas exports was attributed to the rise in crude oil exports, which increased by 10.67 percent to $443.9 million. Oil product exports also increased by 30.69 percent to $91.4 million, while natural gas exports increased by 10.18 percent to $696.4 million.

http://www.antaranews.com/en/news/108960/indonesias-trade-balance-sees-us878-billion-surplus

 

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