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GMF to expand business in aircraft spare part engineering
6 hours ago | 600 Views

Jakarta (ANTARA News) - PT Garuda Maintenance Facility (GMF) AeroAsia, which has been known to operate only as aircraft maintenance workshop, has succeeded in producing aircraft spare parts.

GMF AeroAsia is an Indonesian company, a member of the state-owned Garuda Indonesia Group, established in 1984 as Garuda Maintenance Facilities Support Center.

Director of Line Operation of GMF AeroAsia Tazar Marta Kurniawan said on the sidelines of Indonesia Engineering Conference and Exhibition (IAECE), here on Wednesday, the company has qualified technicians to develop business in aircraft spare part engineering industry.

"We have for years doing the job of maintenance, but beside maintenance we can do a lot of things here with our existing resources. We could improve the performance of components," Tazar said .

He said GMF already won the "Design Organization Approval" (DOA) and "Part Manufacturing Approval" (PMA), one of the requirements to design and produce spare parts.

"Based on our experience, we could with our technicians fulfill the requirements, design and produce alternative spare parts for aircraft," he said.

He said GMF could produce spare parts more competitive in price and quality that will allow aircraft to operate more effectively as they do not have to waste time in importing spare parts from other countries.

"Normally, the price would be cheaper and the quality is superior adapted to our environment," he said, adding the spare parts could be 60-70 percent cheaper as it had no cost component of importing and it is faster in procurement. How much an airline will lose in potential income if an aircraft was grounded a day waiting for the supply of spare parts, he said.

He said GMF has developed four types of aircraft spare part and the number would be increased to 15 types this year.

He said GMF already have two candidates for business partners -- a company from the United States which will distribute and promote the GMF-made spare parts in the market. "The two companies have agreed to do that for us," he said.

We need to first build up a network for which the company has invited all stakeholders both from universities or other institutions such as the Technology Application and Study Agency (BPPT), and domestic and foreign aircraft maintenance companies.

"In the past we focused only on aircraft maintenance. GMF did not have to bother about design as there is BPPT, and the National Aviation and Aerospace Institute (LAPAN) and the products were audited by the Transport Ministry," he said.

Tazar said GMF would not concentrate only on domestic market but it would expand foothold to regional and international markets.

"Our target is to become one billion company, a compoan y with an income of US$1 trillion," he said.

Meanwhile, head of the sub-directorate of engineering at the Directorate of Aircraft Airworthiness Suharyadi Partodiyono said the government would support the initiative of GMF.

Suharyadi said maintenance of most aircraft is made abroad, therefore, GMF needs to develop itself especially as it already has the FAA certificate that GMF could also serve foreign aircraft.

He said there are always modifications, therefore, aircraft would not continue to be the same in design .

Meanwhile GMF had converted a Fokker F27 passenger aircraft into a cargo plane for Bangladesh, another indication of significant progress in the technical capability of the company.

The conversion of the 30-seat capacity aircraft into a cargo plane with a carrying capacity of 5.5 tons took two months.

Vice President for Engineering Services of GMF Bambang Suryowinarto said GMF has big potential to expand its business.

"Aircraft more than 20 years in age are no longer allowed to fly , but they could continue operation after they are converted into cargo planes. In Indonesia there are many old units of than Boeing 737 aircraft," Bambang said

He said this year GMF would convert two units if grounded passenger aircraft of domestic airlines into cargo planes. (*)

http://www.antaranews.com/en/news/110881/gmf-to-expand-business-in-aircraft-spare-part-engineering

GMF can into aircraft maker someday...........
 
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GMF to expand business in aircraft spare part engineering
6 hours ago | 600 Views

Jakarta (ANTARA News) - PT Garuda Maintenance Facility (GMF) AeroAsia, which has been known to operate only as aircraft maintenance workshop, has succeeded in producing aircraft spare parts.

GMF AeroAsia is an Indonesian company, a member of the state-owned Garuda Indonesia Group, established in 1984 as Garuda Maintenance Facilities Support Center.

Director of Line Operation of GMF AeroAsia Tazar Marta Kurniawan said on the sidelines of Indonesia Engineering Conference and Exhibition (IAECE), here on Wednesday, the company has qualified technicians to develop business in aircraft spare part engineering industry.

"We have for years doing the job of maintenance, but beside maintenance we can do a lot of things here with our existing resources. We could improve the performance of components," Tazar said .

He said GMF already won the "Design Organization Approval" (DOA) and "Part Manufacturing Approval" (PMA), one of the requirements to design and produce spare parts.

"Based on our experience, we could with our technicians fulfill the requirements, design and produce alternative spare parts for aircraft," he said.

He said GMF could produce spare parts more competitive in price and quality that will allow aircraft to operate more effectively as they do not have to waste time in importing spare parts from other countries.

"Normally, the price would be cheaper and the quality is superior adapted to our environment," he said, adding the spare parts could be 60-70 percent cheaper as it had no cost component of importing and it is faster in procurement. How much an airline will lose in potential income if an aircraft was grounded a day waiting for the supply of spare parts, he said.

He said GMF has developed four types of aircraft spare part and the number would be increased to 15 types this year.

He said GMF already have two candidates for business partners -- a company from the United States which will distribute and promote the GMF-made spare parts in the market. "The two companies have agreed to do that for us," he said.

We need to first build up a network for which the company has invited all stakeholders both from universities or other institutions such as the Technology Application and Study Agency (BPPT), and domestic and foreign aircraft maintenance companies.

"In the past we focused only on aircraft maintenance. GMF did not have to bother about design as there is BPPT, and the National Aviation and Aerospace Institute (LAPAN) and the products were audited by the Transport Ministry," he said.

Tazar said GMF would not concentrate only on domestic market but it would expand foothold to regional and international markets.

"Our target is to become one billion company, a compoan y with an income of US$1 trillion," he said.

Meanwhile, head of the sub-directorate of engineering at the Directorate of Aircraft Airworthiness Suharyadi Partodiyono said the government would support the initiative of GMF.

Suharyadi said maintenance of most aircraft is made abroad, therefore, GMF needs to develop itself especially as it already has the FAA certificate that GMF could also serve foreign aircraft.

He said there are always modifications, therefore, aircraft would not continue to be the same in design .

Meanwhile GMF had converted a Fokker F27 passenger aircraft into a cargo plane for Bangladesh, another indication of significant progress in the technical capability of the company.

The conversion of the 30-seat capacity aircraft into a cargo plane with a carrying capacity of 5.5 tons took two months.

Vice President for Engineering Services of GMF Bambang Suryowinarto said GMF has big potential to expand its business.

"Aircraft more than 20 years in age are no longer allowed to fly , but they could continue operation after they are converted into cargo planes. In Indonesia there are many old units of than Boeing 737 aircraft," Bambang said

He said this year GMF would convert two units if grounded passenger aircraft of domestic airlines into cargo planes. (*)

http://www.antaranews.com/en/news/110881/gmf-to-expand-business-in-aircraft-spare-part-engineering

GMF can into aircraft maker someday...........
And be a positive support for Indonesian local aerospaces industry.
 
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Saturday, 13 May 2017
Malindo to be renamed Batik Air

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by b.k. sidhu


BATIK Air is going to be the new name for Malindo Air.

This will come into effect in the second half of this year, but everything else will remain the same.

The rationale behind the branding change is to better align the offerings within Indonesia’s Lion Air Group stable of airlines to ensure there is seamless full service travel domestically and internationally.

“The feeder traffic from Lion Air group is not much now but the dynamics will change with Batik Air in the second half of this year,’’ Malindo Air CEO Chandran Rama Muthy says.

“We, Malindo Air (Batik Air Malaysia) will be the international link within the Lion Air group while the existing Batik Air Indonesia will continue to serve the Indonesian market and it is a full service carrier. We will promote Batik Air Malaysia brand across the 16 countries we operated in, and this will be a boost to our country, heritage and culture,’’ Chandran says.

The Lion Air Group controls Lion Air, Wings Air, Batik Air (Indonesia), Lion Bizjet, Malaysia’s Malindo Air, and Thailand’s Thai Lion Air. Malindo is 49% owned by Lion Group, controlled by Rusdi Kirana and his brother, and the remaining 51% is held predominately held by Chandran.

For a long time Indonesian carriers were banned from flying into Europe but that ban has since been lifted. Instead of Batik Air Indonesia flying all over the globe, the group has Malindo for its Asian connectivity, and the latter is now in the final stages of sealing a code share arrangement with a Middle East airline, which will give it global access to several markets.

Cities like London, Paris, Amsterdam, Stockholm, Rome, New York, Chicago, Rio De Janerio, Cape Town, and many others will be within reach once the code share is inked.

The idea is to keep the traffic flying within the group and code share partners.

Chandran is looking at several code share arrangements over the coming months and years as that is the only way the airline can grow its traffic profile and at the same time serve the market which needs connectivity.

No doubt Malaysia Airlines also has several code share arrangements and is member of oneworld alliance but choices are what the travelling public needs.

Malindo now offers interlining services to four airlines - Etihad Airways, Oman Air, Turkish Airlines and Qatar Airways.

It is hoping to end up with 30 such arrangements by the end of next year and this year it will add 10 more. “We have a big dream and by 2018 we would have 30 interline partners and several code-shares and our passengers traffic should be more than 10 million by then,’’ he adds.

Today Malindo boasts of 240 daily departures both from its bases in Subang and KLIA.

But back in 2013 when it started, not many believed this airline would pass the test of time. Many predicted that it would collapse soon after it took off.

But Malindo has proved its sceptics wrong up till now and is one of the fastest growing airlines globally given the spate of route openings and aircraft deliveries.

Last year it took deliveries of about ten new aircraft and this year it has taken deliveries of three. It expects seven more, adding to its current fleet of 45 currently. It will add five to seven new destinations to its existing list of 43 destinations.

“It is just growing and the pace has made people notice the airline,’’ says an industry observer.

One of the factors that had pushed it forward was due to Malaysia Airlines’ two major air disasters. While Malaysia Airlines shrunk its network, Malindo grew and capitalised on full service offering market.

Lower jet fuel prices and the move from klia2 to KLIA helped it reduce cost and price its fares appropriately to capitalise on the growth.

Malindo airfares are not like those low cost carriers as they do not charge for baggage and offer entertainment and meals onboard.

Malindo ended its first year carrying 900,000 passengers, and ended 2016 with 5.6 million. This year Chandran reckons the numbers will reach eight million.

From renting a small premises at Subang, it has bought over four floors in a building for RM16mil to house its operations, also in Subang. It has dedicated one floor for training purposes.

By June it will also be introducing the electronic flight bag for its crew so as to do away with paper.

For a company that does not own aircraft assets, it does not have to fork out big sums to buy aircraft. Instead it has operational leases with Lion Group at what Chandran says are at “market rates.’’

Is Malindo profitable?

“We are looking positive,’’ he says but will not elaborate. On whether Malindo would ever be listed, he says “let’s focus on making it profitable before dreaming of an IPO’’.

http://www.thestar.com.my/business/business-news/2017/05/13/malindo-to-be-renamed-batik-air/

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201705121299.jpg



Konsep Desain Stasiun MRTSuasana pembangunan stasiun Mass Rapid Transit (MRT) Blok A di Jakarta, Jumat (12/5/2017). Pembangunan stasiun MRT yang terdiri dari tujuh stasiun layang dan enam stasiun bawah tanah tersebut akan memiliki konsep desain yang berbeda diantaranya stasiun Lebak Bulus dengan konsep Green Valley, Stasiun Haji Nawi dengan konsep Betawi Culture dan Stasiun Dukuh Atas dengan konsep Forest. (ANTARA /Muhammad Adimaja/)



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Konsep Desain Stasiun MRTPekerja menyelesaikan pembangunan stasiun Mass Rapid Transit (MRT) Blok A di Jakarta, Jumat (12/5/2017). Pembangunan stasiun MRT yang terdiri dari tujuh stasiun layang dan enam stasiun bawah tanah tersebut akan memiliki konsep desain yang berbeda diantaranya stasiun Lebak Bulus dengan konsep Green Valley, Stasiun Haji Nawi dengan konsep Betawi Culture dan Stasiun Dukuh Atas dengan konsep Forest. (ANTARA/Muhammad Adimaja)
 
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YEAAAAAAAAAAAAAAAAAAAAAAAYYYY.....the first High Speed train in South east asia. <3

RI, China Signs USD4.5bn Loan Agreement for High Speed Train Project

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TEMPO.CO
, Beijing - Indonesian-Chinese consortium PT Kereta Cepat Indonesia-China (KCIC) has signed a loan agreement worth US$4.5 billion with China Development Bank (CDB).

The agreement was reached following a bilateral meeting between President Joko Widodo and Chinese President Xi Jinping at Great Hall of People yesterday night.

KCIC CEO Hanggoro Budi Wiryawan said that the loan facility is equal to 75 percent of the bullet train project cost of US$6 billion. The remaining fund will be generated from the both Indonesian and Chinese shareholders, he said.

As such all requirements in the loan agreement have been met following the MoU signing, Hanggoro said.

Also attended the MoU signing ceremony was the Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan, State Secretariat Minister Pratiko, SOE Minister Rini Soemarno, Transportation Minister Budi Karya Sumadi and Indonesia Investment Board (BKPM) chairman Thomas Lembong.

source : tempo

TransJakarta Corridor 13
  • height : 23 m
  • length : 9.3 km
  • fully operational : June 22, 2017
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Sepinggan International Airport, Balikpapan
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It seems we're already hit 1 trillion dollar mark this year.

Nominal GDP growth (assuming the GDP growth average is +5%):
(2015) US$861 billion
(2016) US$ 932 billion (+71 billion)
(2017) US$ $1.020 trillion (+88 billion)
(2018) US$ 1,113.070 trillion (+93 billion)

Pretty good figure, but there's still a lot more room to grow even more.

source:

http://www.imf.org/external/pubs/ft...9&c=536&s=NGDPD,NGDPDPC,PPPGDP,PPPPC&grp=0&a=
 
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It seems we're already hit 1 trillion dollar mark this year.

Nominal GDP growth (assuming the GDP growth average is +5%):
(2015) US$861 billion
(2016) US$ 932 billion (+71 billion)
(2017) US$ $1.020 trillion (+88 billion)
(2018) US$ 1,113.070 trillion (+93 billion)

Pretty good figure, but there's still a lot more room to grow even more.

source:

http://www.imf.org/external/pubs/ft/weo/2017/01/weodata/weorept.aspx?sy=2015&ey=2022&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=76&pr1.y=9&c=536&s=NGDPD,NGDPDPC,PPPGDP,PPPPC&grp=0&a=

So .. You have to stabilized or if you cabn .. to strenghten your IDR ... If not ... yuour GDP (current market) will continue to volatile like "roller coaster" ... as it happened before ...:meeting:
 
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It seems we're already hit 1 trillion dollar mark this year.

Nominal GDP growth (assuming the GDP growth average is +5%):
(2015) US$861 billion
(2016) US$ 932 billion (+71 billion)
(2017) US$ $1.020 trillion (+88 billion)
(2018) US$ 1,113.070 trillion (+93 billion)

Pretty good figure, but there's still a lot more room to grow even more.

source:

http://www.imf.org/external/pubs/ft/weo/2017/01/weodata/weorept.aspx?sy=2015&ey=2022&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=76&pr1.y=9&c=536&s=NGDPD,NGDPDPC,PPPGDP,PPPPC&grp=0&a=

Indonesian gov. actually deliberately trying to weaken Rupiah nominal value as long as international commodity prices still very low, to uphold standard of living of many worker who depends on commodity sector who depends on international market prices.

Actually i am all for limited war in Korean Peninsula, as the war will made surge in demands of many Commodities Indonesia produces like nikel, tin, oil, foods, drugs and so on. So with war between Saudi proxies and Iranian proxies will disrupt oil production in MENA.
 
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China gives positive response to Indonesia investment offer: Luhut
3 hours ago | 526 Views

Jakarta (ANTARA News) - Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said China had given positive response to investment project offered by Indonesia at the Belt and Road Initiative (BRI) forum earlier this week in Beijing.

Among the projects offered by Indonesia include integrated seaports of Bitung, in North Sulawesi, and Kuala Tanjung in North Sumatra and power generating plant and industrial estate in North Kalimantan.

"President Joko Widodo told President Xi Jinping when saying goodbye yesterday that next month a team from Indonesia may visit China to follow up talks on the projects," Luhut said here on Tuesday.

He said the President has passed order to prepare the list of projects to be offered to China.

"We just wait for an official announcement from the president. It would concern a fairly big investment fund. China agreed on the program to produce palm oil-based bio-diesel B5 fuel. The project would need palm oil that we could supply," he said.

Indonesia is the worlds largest producer and exporter of crude palm oil and China is a major consumer of the commodity.

The two-day BRI forum ending on Monday was attended by 29 heads of state and government and heads of international organizations such as the International Monetary Fund (IMF) discussing synergy in policy, community relations and development of infrastructure.

Indonesia, which is busy carrying out its ambitious infrastructure projects, hopes to gain from the forum.

Luhut did not say investment figure agreed upon between Indonesia and China, although a number of other countries already received fairly large investment from China.

"China already invested heavily in a number of other countries. Among those receiving big inflows of investment from China include Saudi Arabia through the sale of a stake in its oil company Saudi Aramco. In Pakistan, China already invested US$62 billion, in Malaysia US$30 billion, and in the Philippines US$20 billion," he said.

Compared to those countries, Indonesia, the largest economy in southeast Asia, has not succeeded much in drawing investment from China. Based on data at the Capital Investment Coordinating Board (BKPM), Chinese investment under the BRI forum in Indonesia was only around US$5 billion-US$6 billion,

Luhut said the government would facilitate investment by China in Indonesia such as with tax holiday. He said the agreement reached at the forum was not in the form of loan fund.

China, the worlds second largest economy has a foreign exchange reserve of US$3 trillion, Luhut said, adding by releasing only one third of the fund China could help many other countries in economic development.

"The Belt and Road Forum could be better than APEC as discussion at the BRI is more concrete. However, we would remain to be careful. We dont want to convert investment into loan as we want to maintain the position of our debts below 30 percent of our GDPO," he said.

China sees the strategic position of Indonesia in its vision of reviving the legendary Silk Road . During his visit here in 2013, President Xi addressed the Indonesian Parliament, and spoke about One Belt One Road (OBOR) and the establishment of Asian Infrastructure Investment Bank (AIIB) to finance infrastructure projects and expressed support for regional economic connectivity and integration.

Investment offer from China for Indonesia began to come such as for the planned development of Jakarta-Bandung speed railway facility and infrastructure.

The Chinese government indicated in a number occasions that the Jakarta-Bandung speed railway was a prestigious project in Southeast Asia. Chinese officials said the project is a model of bilateral cooperation between the two countries involving the government and the private sector.

China, now the worlds largest investing country, has up to US$500 billion set aside for investment program in the next 10 years. The huge fund is to be used mainly to finance infrastructure projects, which are badly needed by Indonesia.

Indonesias exports to China had grown fast before slump hit the global economy including Chinese economy. The crisis resulted in a decline in Indonesias exports including to China.

Lately, however, there were signs of recovery. In the first two months of the year Indonesias exports to that country were valued at US$4.3 billion, up sharply from US$2.6 billion in the same period in 2016 and from US$2.7 billion in 2015.(*)

http://www.antaranews.com/en/news/1...-response-to-indonesia-investment-offer-luhut
 
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Indosat - PSN buy Satelit Palapa N1 from China

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Menteri Komunikasi dan Informatika Rudiantara (ketiga kanan) berjabat tangan dengan Vice President of China Aerospace Science and Technology Corporation Yang Baohua (kiri), didampingi CEO Pasifik Satelit Nusantara Adi Rahman Adiwoso (kanan) dan CEO PT Indosat Alexander Rusli (kedua kanan) seusai penandatanganan kesepakatan pada acara Asia Pasific Satellite Communications System International Conference (APSAT) 2017 di Jakarta, Rabu (17/5/2017). (ANTARA FOTO/M Agung Rajasa)


Indosat-PSN beli satelit Palapa-N1 dari perusahaan China

Jakarta (ANTARA News) - PT Indosat Tbk (Indosat Ooredoo) dan PT Pasifik Satelit Nusantara (PSN) melalui perusahaan patungan PT Palapa Satelit Nusa Sejahtera (PSNS) menandatangani kontrak pembelian satelit dengan produsen satelit asal China, China Great Wall Industry Corporation (CGWIC) di Jakarta, Rabu.

Penandatanganan kontrak pembelian senilai sekitar 220 juta dolar AS itu disaksikan oleh Menteri Komunikasi dan Informatika Rudiantara di sela Asia Pacific Satellite Communications System International Conference (APSAT) 2017.

President Director & CEO Indosat Ooredoo Alexander Rusli mengatakan satelit baru yang diberi nama Palapa Nusantara 1 atau Palapa-N1 itu akan diposisikan sebagai generasi penerus dari satelit Palapa-D pada slot orbit 113 derajat Bujur Timur.

"Ini satelit keempat yang pernah diluncurkan slot tersebut. Sudah financial close, jadi 2020 sudah ada satu pengganti sehingga layanan yang diberikan kepada pelanggan berjalan lancar," katanya.

Alex menuturkan satelit Palapa-N1 akan mengoptimalkan sumber daya spektrum yang ada untuk menyediakan layanan penyiaran (broadcast) dan pita lebar (broadband) di seluruh wilayah Indonesia dengan menggunakan teknologi baru yakni High Throughput Satellite (HTS).

Ia menambahkan bahwa pembelian satelit baru itu juga menegaskan sebagai penyedia layanan satelit sekaligus komitmen perusahaan untuk mempercepat proses penetrasi "broadband" di Indonesia.

"Target kami adalah untuk memastikan semua pelanggan eksisting mendapatkan layanan yang lancar. Kami harap dengan teknologi HTS, kami bisa menjadi bagian dari solusi broadband di Indonesia," katanya.

Alex menuturkan, dengan nilai pembelian mencapai ssekitar 220 juta dolar AS, biaya tersebut mencakup pembangunan, asuransi dan peluncuran satelit yang ditargetkan sebelum Juli 2020.

Pemilihan produsen satelit asal China dilakukan berdasarkan proses lelang dengan tiga kriteria, yakni teknis, waktu dan harga.

PSNS nantinya akan melakukan pengadaan dan pengoperasian satelit Palapa-N1 sebagai pengganti Palapa-D.

CEO Pasifik Satelit Nusantara Adi Rahman Adiwoso dalam kesempatan yang sama, berharap kerja sama tersebut mampu memecahkan masalah kesenjangan digital yang ada di masyarakat.

"Sekaligus mempercepat penetrasi akses internet ke seluruh wilayah Indonesia," ujarnya.

Menkominfo Rudiantara menyambut positif penandatanganan kontrak pembelian satelit Palapa-N1 karena menjadi salah satu cara untuk membangun infrastruktur telekomunikasi di Indonesia.

"Dengan ditandatangani ini, ada security. Bisnis satelit itu bukan bisnis yang kita ngomong sekarang, besok keluar. Kalau ingin satelit ada di atas Indonesia butuh waktu tujuh sampai delapan tahun."

"Bangun satu satelit sendiri butuh 30-36 bulan. Maka sekarang guyur dulu Indonesia dengan infrastruktur, nanti permintaan akan tumbuh sendiri," pungkasnya.

Editor: AA Ariwibowo

http://www.antaranews.com/berita/629703/indosat-psn-beli-satelit-palapa-n1-dari-perusahaan-china
 
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Indonesia exports frozen octopus to Japan

Indonesia has started exports of frozen octopus to Japan through state-owned fishery firm Perinus, which has sent 30 tons of frozen octopus to Ibaraki Prefecture port from Makassar, South Sulawesi, since last week.

The move is a follow-up of a cooperation agreement between Indonesia and Japan International Cooperation Agency (JICA), Ministry of Maritime Affairs and Fisheries director general Nilanto Perbowo said as reported by kompas.com on Sunday.

Perinus targets to export 1,000 tons of frozen octopus to Japan this year through Ajirushi Company, a private company appointed by JICA for the agreement.

“We hope that Perinus can use the octopus processing device from JICA to maintain quality and to increase prices of octopus-based products from South Sulawesi and other Indonesian regions,” Nilanto said, adding that the ministry would continue to assist Perinus and fishermen to catch more octopuses in a sustainable way.

Assistance from the government will include ways to increase catch and methods in processing octopuses that meet international export quality.

“We hope the octopus will be one of Indonesia’s main export products in the future,” she said. (ecn/bbn)
http://www.thejakartapost.com/news/2017/05/16/indonesia-exports-frozen-octopus-to-japan.html
 
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S&P upgrades Indonesia's sovereign rating to investment grade

Rating agency Standard & Poor's (S&P) upgraded Indonesia's sovereign bond ratings to investment grade on Friday, saying the move reflected its assessment of reduced risks to the country's fiscal position.

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Fund managers say the investment grade from S&P, which matches the ratings awarded by Fitch and Moody's years ago, will give Indonesia access to a wider pool of investors. A rating upgrade usually also means an economy can get cheaper cost of borrowing for its bonds.

S&P has upgraded Indonesia's sovereign credit outlook to BBB-, which is an investment grade, up from BB+, junk status.

The agency said "Indonesia's increased focus on realistic budgeting has reduced likelihood that shortfall in future revenue would widen general government deficit significantly."

The main stock index in Jakarta spiked more than 3 percent after the S&P upgrade.

"From a macro stance, the S&P upgrade is positive as this will further reduce the country’s cost of funds which is relatively expensive vs its peers in the region," said Bharat Joshi, investment director at Aberdeen Asset Management in Jakarta.

S&P had previously not followed other big ratings agencies due to a host of concerns. It gave Indonesia a positive outlook in May 2015 for President Joko Widodo's bold move to remove gasoline subsidies.

In June last year, it denied Indonesia its coveted investment grade again, citing weak government revenue collection and worsening corporate credit quality.

Since then, Widodo reshuffled his cabinet and appointed respected reformist, former managing director of the World Bank, Sri Mulyani Indrawati, as his finance minister.

She then ran a tax amnesty program that many said was the world's most successful and is currently overseeing a plan to overhaul the taxation system.

http://www.reuters.com/article/us-indonesia-ratings-idUSKCN18F0RF?il=0


Begini Lonjakan IHSG Setelah RI Dapat Investment Grade

Sepanjang pagi hingga siang tadi IHSG bergerak cukup datar. Baru menjelang penutupan, tak lama setelah pengumuman S&P, IHSG langsung melonjak seperti terlihat di grafik di bawah ini.

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