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Japan supports Indonesia`s infrastructure development program

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Japan supports Indonesia`s infrastructure development program
Minggu, 22 November 2015 18:39 WIB | 555 Views

Kuala Lumpur (ANTARA News) - Japanese Prime Minister Shinzo Abe has said his country supports Indonesias infrastructure development program as it would boost the regional progress.

Indonesias development was crucial for the regional progress, therefore Japan gave its support to Indonesia continuously, Abe stated in the bilateral meeting with President Joko Widodo (Jokowi) held on the sidelines of the ASEAN Summit here, Sunday.

Japan continuously establishes strategic relations with Indonesia in various issues, he added.

President Jokowi said he was pleased to see Prime Minister Abe again after meeting him in the G20 Summit in Atalya, Turkey, recently.

"Tomorrow evening, we will receive some 1,000 Japanese businessmen and prominent figures in Jakarta," Jokowi noted.

Indonesia will confer merit medals to some Japanese figures in recognition of their contribution to Indonesia, at the Presidential Palace in Jakarta.

In the bilateral meeting with Abe, Jokowi was accompanied by Cabinet Secretary Pramono Anung, Coordinating Minister for Political, Legal and Security Affairs Luhut B Panjaitan, Coordinating Minister for Economic Affairs Darmin Nasution, Coordinating Minister for Maritime and Resources Rizal Ramli and Foreign Minister Retno Marsudi.(*)

Japan supports Indonesia`s infrastructure development program - ANTARA News

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Presiden Joko Widodo melakukan pertemuan bilateral dengan Perdana Menteri Jepang Shinzo Abe (kiri) disela acara Konferensi Tingkat Tinggi ke-27 ASEAN pada hari kedua di Kuala Lumpur Convention Center (KLCC), Malaysia. , Minggu (22/11). (ANTARA FOTO/Setpres/HO/pd/15)

20151123antarafoto-kttasean-211115-7.jpg


Presiden Joko Widodo melakukan pertemuan bilateral dengan Perdana Menteri Jepang Shinzo Abe (kiri) disela Konferensi Tingkat Tinggi ke-27 ASEAN pada hari kedua di Kuala Lumpur Convention Center (KLCC), Malaysia. , Minggu (22/11). (ANTARA FOTO/Setpres/HO/pd/15)
 
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lundqvist 50 points1 month ago*

Okay, so I work for a Japanese company, in international development, in rail/transport specifically. This post will be very industry-specific, but may have some general interesting points here and there.

I deal with the Japan vs. Chinese technology question constantly. The Japanese mindset toward Chinese competition is, let them deal with simple engineering projects (like long-distance roads) and let Japan be favored for "high-quality urban infrastructure" (exact phrase from an MLIT-led Japan-Kenya infrastructure conference I recently attended).

When China is competitive in the latter, Japan is getting really upset about it. But honestly, despite every METI or JICA report requiring a section on "superior Japanese technologies," the differences are minor -- a lot of the technological advancements made in Japanese engineering are only appropriate for Japanese society/the Japanese economy anyway (e.g., hyper-sensitive earthquake system shutdown mechanisms, garakei with 20MP cameras, world-class bidets, etc.).

There is no difference in the quality of engineering educations between Todai and Peking University. When we talk about Chinese infrastructure "falling apart," that is a question of cutting corners in construction supervision, not in initial design. But even if that's China's fault, and not the fault of the recipient country/local politicians (a highly debatable point), it's not a great argument to be made against them. I'm glad there has never been a single fatality from a Shinkansen accident because I have feelings and death makes me sad, but from a cost-benefit standpoint, the economic activity generated by a mega-infrastructure project will probably easily outweigh dozens or even hundreds of deaths (in case you didn't realize, your government has a cost figure attributed to your life; if you live in the US, last I checked FEMA values you around $3 million).

So anyway, Chinese packages are attractive/Japanese packages are unattractive for developing nations for the following reasons, in no particular order:

  • Because of the currency strength, Yen-denominated loans are incredibly expensive, despite the low interest rates/grace periods (depending on the income classification of the country, as per JICA). I'm American -- I wouldn't take out loans in the UK.
  • Consulting/design fees for the overall processes are much lower, because Chinese consultants will sleep four to a hotel room, whereas I am writing this from the comfort of an 13,000 Yen/night room alone (plus 4,000 Yen food allowance), and if I was older I would be flying business class here as well. These fees are not a major share of overall expenses when we're talking about national mega-projects like a high-speed rail, but they can be significant when comparing two packages for a smaller project.
  • Working with Japanese engineers is something that I do not wish upon my worst enemies. Imagine all the worst aspects of Japanese bureaucracy, combined with the stubbornness and borderline-autism of your typical engineer.
  • On bureaucracy, the project cycle from the Japanese side is just too slow. You'll start with an exploratory mission, to scope out potential projects. For urban settings, next will be an urban master plan further scoping out potential projects, which can take about two years. Then, you'll move onto a feasibility study for a specific project that can take two years. JICA will evaluate the loan-worthiness of the project for an unclear amount of time, from an extremely risk-averse standpoint (despite all the time and resources you have provided assisting the JICA consultants with their studies, Japan might very well walk away). Assuming you pass, then you have a loan agreement between the two governments. Following this, you'll move into the detailed design phase, which is another year and a half, and you'll start the bidding/tendering processes. You're basically five to seven years out before you start doing anything. It didn't matter if your government already had done all of the study/design phases by itself, or even if another respectable agency (like a consultant hired by the World Bank) did one -- Japan has to do it from scratch, because only Japanese engineers understand the world correctly, or something like that. China comes in with the financier, the designer, and the construction company in one meeting, and you start pretty much right away. Japan assumes that the developing world should follow the same economic and infrastructure planning schedule as they use, but in reality, rapid changes are needed far faster than Japan is willing to provide.
Abe announced about half a year ago that he wants to fast-track the planning and loan agreement processes to speed up the lending timelines to the developing world (particularly, to Southeast Asia, which naturally has nothing to do with territorial fears). But nothing has come of this, and it will be ages before anything does -- fixing slow government review processes requires a slow government review process.
 
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Indonesian president receives Chief of Japanese League Parliament Toshihiro Nakai at State Palace.

Presiden Joko Widodo (ketiga kanan) didampingi Menko Pembangunan Manusia dan Kebudayaan Puan Maharani (keempat kanan), Seskab Pramono Anung (kelima kanan), Menlu Retno Marsudi (kedua kanan) dan Mendag Thomas Lembong (kanan) menerima Ketua Liga Parlemen Jepang-Indonesia Toshihiro Nakai bersama delegasi di Istana Negara, Jakarta, Senin (23/11). Pertemuan tersebut untuk meningkatkan hubungan kerjasama antara Indonesia dan Jepang. (ANTARA FOTO/Widodo S. Jusuf)

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Presiden Joko Widodo (kanan) menerima Ketua Liga Parlemen Jepang-Indonesia Toshihiro Nakai (kedua kiri) bersama delegasi di Istana Negara, Jakarta, Senin (23/11). Pertemuan tersebut untuk meningkatkan hubungan kerjasama antara Indonesia dan Jepang. (ANTARA FOTO/Widodo S. Jusuf)

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Ketua Liga Parlemen Jepang-Indonesia Toshihiro Nakai (keempat kiri) bersama delegasi melakukan pertemuan dengan Presiden Joko Widodo di Istana Negara, Jakarta, Senin (23/11). Pertemuan tersebut untuk meningkatkan hubungan kerjasama antara Indonesia dan Jepang. (ANTARA FOTO/Widodo S. Jusuf)
 
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President awards medal to Japan-Indonesia Parliament League chairman
Selasa, 24 November 2015 01:11 WIB | 499 Views

Jakarta (ANTARA News) - President Joko Widodo awarded the "Bintang Jasa Utama" medal to Toshihiro Nikai, the chairman of the Japan-Indonesia Parliament League, for his immense contribution, here on Monday.

President Joko Widodo presented the medal, the countrys highest civilian honor, on Nikai at the State Palace.

"The Bintang Jasa Utama medal has been given in recognition of extraordinary services rendered to improve friendly relations between Indonesia and Japan," state secretary Pratikno said.

Toshihiro Nikai, born on February 17, 1939, was chairman of the Committee and Budget of the House of Representative in 2013 and chairman of the General Council of the Liberal Democrat Party.

President Joko Widodo issued Presidential Decision Number 84/TK/2015 dated August 7, 2015 to award the medal to Nikai in recognition of his services to strengthen the relations between the two countries.

Bintang Jasa Utama," awarded for extraordinary services to the Indonesian state and nation in certain fields other than military, is ranked below the "Bintang Mahaputra.

President Joko Widodo, at a meeting with the Japan-Indonesia Parliament League, said he appreciated the chairman of the Japan-Indonesia Parliament League and 1,100 Japanese figures who are currently visiting the country.

"I hope this visit will continue to promote the close relationship between Japan and Indonesia, between Japanese and Indonesian communities, and cultural exchange between the two countries.

President Joko Widodo said he had met and had a discussion with Japans Prime Minister Shinzo Abe and the two had agreed to strengthen bilateral cooperation.

"We have agreed to cooperate in infrastructure and manufacturing, including maritime, and in other fields," he said.

As an open economy, he said, Indonesia will continue to deregulate certain businesses, and efforts such as the recently issued six economic policy packages were aimed to create a more efficient and competitive economy.

Toshihiro Nikai expressed appreciation for the Indonesian government for the medal and for the honor to meet with the head of state.(*)
 
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Govt asks Japan to make
Indonesia an export hub

Anton Hermansyah, thejakartapost.com | Business | Wed, November 25 2015, 3:06 PM


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(Kompas/Totok Wijayanto)
Business News



The government has asked Japan to make Indonesia an exporting basis for Japanese companies in return for the Japanese government’s request to review 11 tariff posts in the automotive industry.

"Ports are important to their exports as well as to Indonesia. Along with their request to drop tariffs in the automotive industry, we are asking them to make Indonesia an exporting basis," said Bachrul Chairi, the Trade Ministry’s director general in charge of international trade.

Moving on from the high-speed train, the government of Japan had seen that there were more sectors to be developed in Indonesia and recently asked Minister of Trade Thomas Lembong for a tariff review and for help in finding a replacement for the Cilamaya Port project as soon as possible, Bachrul toldthejakartapost.com.

Businesspeople from Indonesia and Japan met at the Indonesia-Japan Business, Trade & Investment Partnership Program at Fairmont, Senayan, on Nov. 24.

Before the change of government in Indonesia, Japan had felt that policies were protective and unsupportive of foreign investment, Bachrul said, adding that some Japanese companies had even pulled investment out of Indonesia.

But, he added, now that Indonesia was relaxing a lot of rules for foreign investors, the Japanese government was planning on more investment in Indonesia. (dan)(+)

- See more at: Govt asks Japan to make Indonesia an export hub | The Jakarta Post
 
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Japan`s trust in Indonesian investment potential remains high
Selasa, 24 November 2015 01:17 WIB | 769 Views

Jakarta (ANTARA News) - The trust that the Japanese investors repose in Indonesias investment potential remains high, Capital Investment Coordinating Board (BKPM) chief Franky Sibarani has said.

Japan once again displayed the high trust it places in Indonesias investment potential through the arrival in Indonesia of a 1,000 strong Japanese business delegation on Monday night.

"I think the 1,000 member delegation from Japan is the biggest ever from any country. The delegation will be received by the President," Franky said in a written statement here on Monday.

The Japanese business delegations visit followed close on the heels of a meeting between President Joko Widodo (Jokowi) and Japanese Prime Minister Shinzo Abe during the ASEAN Summit in Kuala Lumpur over the weekend.

President Jokowi is expected to receive the visiting Japanese delegation which is led by the Japan-Indonesia Parliament League. It consists of Japanese entrepreneurs and important Japanese figures.

Franky said it will be a positive visit from the investment aspect because it shows that the Japanese confidence in Indonesian investment potential is still strong, though there were many factors that could have discouraged them, including the failure of Japan to secure a fast train project in Indonesia.

President Jokowi had earlier met with Japans Prime Minister Shinzo Abe at Kuala Lumpur Convention Center on Sunday. The meeting, aimed to boost further cooperation between the two countries, was constructive. The summit meeting took place at a meeting room at the KLCC.

"This shows that strong cooperation between Indonesia and Japan will continue and will become even better," the President said to newsmen on the sidelines of the ASEAN Summit.

He said, "I have conveyed that all investments in infrastructure, manufacturing and industries will proceed well."

Prime minister Abe said the relations between the two countries have been very good and Indonesia is Japans strategic partner.

He hoped the two countries would continue to cooperate closely in various sectors.

President Jokowi said he would in the near future meet with Japanese businessmen as well as former Japanese Prime Minister Fukuda and the chairman of the Indonesia-Japan Parliamentary League, Toshihiro Nikai.

Based on data of the BKPM, Japan was ranked third on the list of investors who realized their projects in the January-September 2015 period with investment reaching 1,318 projects, valued at US$2.5 billion.

Japan was ranked third on the list of investors after Singapore and Malaysia, respectively.

Singapore realized 1, 999 projects worth US$3.55 billion, followed by Malaysia with 600 projects valued at US$2.9 billion. South Korea was ranked fourth with 1,529 projects accounting for US$1 billion and the Netherlands was in the fifth place with 301 projects worth US$908 million.

In the October 22 to November 20, 2015 period, the Japanese investment commitment and interest was recorded at US$19 billion. Of this, secured principle licenses amounted to US$6 billion.

Some US$3.1 billion of the investment interest and commitment has been categorized as serious and principle licenses are expected to be issued.(*)

Japan`s trust in Indonesian investment potential remains high - ANTARA News
 
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Press Release Indonesia Investment Coordinating Board (BKPM): Indonesia Remains as Japan’s Prominent Investment Partner

PRESS RELEASE
Indonesia Remains as Japan’s Prominent Investment Partner

Jakarta, 24 November 2015 – The visit of 1.100 Japanese figures lead by the Japan-Indonesia Parliament League, who met President Joko Widodo last night (23/11),displayed the fact of Indonesia being Japan’s prominent partner. Amongst the delegation were Chairman of Japan-Indonesia Parliament League, Toshihiro Nikai, Japan’s Minister of Trade Economy and Industry, Motoo Hayashi, along with 17 delegations consisting of parliament members, Governor of Yamanashi, Ehime, and Kochi Perfecture.

Chairman of Indonesia Investment Coordinating Board (BKPM), Franky Sibarani, who accompanied President Jokowi during the meeting, said that the visit re-confirms the trust of Japan towards Indonesia. “1.100 Japanese figures that consists mostly of entrepreneurs and government officials from the central and regional perfectures,who consider Indonesia as its imporant partner” said Franky on his official statement to the press, Tuesday (24/11).

Franky pointed out that BKPM will continue to actively facilitate and help the realization of investment interests from Japanese enterprises. One of the initiatives that has been done by BKPM is by establishing a marketing officer team, especially assigned for handling Japan related investment. “Participation of these Japanese figures, also depicts a sign that the endeavor to strengthen Indonesia-Japan relationship is deliberately pursued,” added Franky.

President Joko Widodo through its Cabinet Secretary, Pramono Anung, yesterday (23/11), also announced the new special task given to its Minister to foster economic cooperation with partner countries. State Minister of National Development Planning and Chairman of Bappenas, Sofyan Djalil, was appointed as liason between Indonesia and Japan.

The presence of the 1.100 japanese figures is also intended to take advantage of the new free-visa policy, in order to future increase the number of tourists visit between both countries and ease exploration of potential partnership.

Previously, President Jokowi has conducted a bilateral meeting with Prime Minister of Japan, Shinzo Abe, during the ASEAN Summit last week and discussed about enhancing economic partnership between both countries.

An Offer in Agriculture Partnership
BKPM Chairman said that Chairman of Japan-Indonesia Parliament League, also offerd to conduct a partnership in agriculture sector.

“One of the scheme is a cooperation using Japanese technology, specifically in the improvement of the quality of land and irrigation that could significantly enhance Indonesia’s agriculture productivity,” he added.

Indonesia’s agriculture sector has not yet been developed by Japanese investors. From the Data released by BKPM, during the period of 22 October 2014 until 20 November 2015, investment interests in agriculture sector reached only US$ 41 million. “Whereas from other sectors, such as infrastructure for example, has been realized into investment commitment of US$ 5 billion,” said Franky.

During that period, the total of investment interest and commitment from Japan reached US$ 19 billion. From that amount, those that have received Principal License reached US$ 6 billion, as for those that are categorized as serious investment interest, reached the value of US$ 3.1 billion which is expected to soon be realized as Principal License.

According to Franky, Japan is one of the main contributors of Indonesia’s investment realization target. From the investment realization data released by BKPM, during the period of January – September 2015, Japan ranked number 3 of FDI in Indonesia, reaching investment value of US$ 2.5 billion with 1,318 projects, below Singapore who reached the number 1 rank with investment value of US$ 3.55 billion (1,999 projects) and followed by Malaysia with investment value of US$ 2.9 billion (600 projects). Meanwhile for the 4th rank, under Japan is South Korea with investment value of US$ 1 billion (1,529 projects) and Netherlands with investment value of US$ 908 million (301 projects).


--Finish--


For further information, please contact:
Ariesta Riendrias Puspasari
Head Bureau ofLegislation, Public Relations, and Executive Administration
Jl. Jend. Gatot Subroto No.44 Jakarta 12190
Ph. : 021-5269874
HP : 08161946825
E-mail : humas@bkpm.go.id
To download press release, please click here


BKPM - Indonesia Investment Coordinating Board Official Website
 
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RI, Japan ink loan deal
for infrastructure projects

Dylan Amirio, The Jakarta Post, Jakarta | Business | Sat, November 28 2015, 5:26 PM
Indonesia and Japan signed a loan agreement on Friday in which the East Asian country has committed to providing ¥140.051 billion (US$1.14 billion) to support several infrastructure and energy projects in this country, including Jakarta’s Mass Rapid Transit (MRT) system and an electricity transmission network.

The agreement was signed by Japanese Ambassador to Indonesia Yasuaki Tanizaki and the Foreign Ministry’s director general for the Asia-Pacific and Africa, Yuri O. Thamrin.

The deal followed up Japanese Prime Minister Shinzo Abe’s announcement about the proposed assistance during President Joko “Jokowi” Widodo’s visit to Japan in March.

The ¥140.051 billion will be disbursed and distributed by 2019 for three specific projects. Up to ¥75.2 billion will be used to develop the next phase of the MRT for the Hotel Indonesia traffic circle in Central Jakarta to Kampung Bandan in North Jakarta.

Currently, construction work is ongoing for the first phase of the north-south line from Lebak Bulus in South Jakarta to the traffic circle. The construction is expected to be finished in 2018.

Another 1.919 billion Yen will be used to develop phase one of the Jakarta MRT’s east-west route, from Kampung Melayu in East Jakarta to the Hotel Indonesia traffic circle.

The Japanese Embassy’s economic counsellor, Takuro Tasaka, however, said the east-west line project is still under preliminary discussion, meaning that Indonesia has yet to decide on the design and concept of the route.

“In accordance with the wishes of Prime Minister Shinzo Abe, Japan will continue to expand and stand by its commitment to help develop infrastructure in Indonesia. We feel that the Jakarta MRT would become a major transportation innovation here,” Tasaka said on Friday.

Japanese companies Shimizu, Tokyu, Obayashi and Sumitomo Mitsui are among those involved in the construction of the Jakarta MRT. Underground drilling for the project began in September.

Also in September, MRT Jakarta president director Dono Boestami said that 43 percent of the underground construction has been completed and 18 percent of the above-ground construction is finished.

Aside from the MRT project, a portion of the loan will be used for the construction of a transmission system that will deliver electricity between Java and Sumatra.

Up to ¥62.9 billion will be spent on the project, which will also involve the construction of an electricity transmission station and an AC/DC converter station.

Tasaka added that parts of the electricity project are still currently in the tendering process, but a contractor has already been found to work on it.

Each of the three loans come with their own conditions: the one for the east-west Jakarta MRT project is subject to interest of 0.01 percent per year with a 25-year return period, while loan for the second phase of the north-south line carries an interest of 0.1 percent a year with a tied return period of 40 years.

The electricity project loan carries an interest of 1.4 percent per year with a return period of 25 years.

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- See more at: RI, Japan ink loan deal for infrastructure projects | The Jakarta Post

Partnership with Japan
can boost RI industry

Prima Wirayani, The Jakarta Post, Jakarta | Business | Wed, November 25 2015, 5:28 PM


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Japan-Indonesia business: Japan-Indonesia Economic Committee (Keidanren) chairman Shigeo Oyagi (left), Indonesian Trade Minister Thomas Lembong (second left), Japanese Economy, Trade and Industry Minister Motoo Hayashi and Japan External Trade Organization (JETRO) chairman Hiroyuki Ishige chat during the opening of the Indonesia-Japan Business, Trade & Investment Symposium at the Fairmont hotel in Jakarta on Tuesday. The event was organized by JETRO to discuss current investment between the two countries.(JP/Jerry Adiguna)
Business News


Indonesia can strengthen its industrial structure and increase the quality of its economic growth through a strong partnership with Japan, officials have said.

Japan External Trade Organization (JETRO) vice president Yuri Sato said on Tuesday that the East Asian country could offer its experiences and established global networks to help Indonesia build its manufacturing to offset low export revenues caused by plummeting commodity prices.

“Japan’s government and businesspeople can assist Indonesian companies to diversify exports and improve productivity through transfer of knowledge and technology,” she said during the Indonesia-Japan Business, Trade and Investment Partnership Symposium in South Jakarta.

The symposium was attended by, among others, Indonesian Trade Minister Thomas Trikasih Lembong, Japanese Economy, Trade and Industry Minister Motoo Hayashi and Japan-Indonesia Parliamentary League chairman Toshihiro Nikai.

Sato added that the current sluggish economic situation was a “blessing in disguise” for Southeast Asia’s largest economy as its only solution was to change its export structure, which currently depends mostly on unprocessed commodities, to concentrate more on manufactured products.

Data from the Central Statistics Agency (BPS) shows that primary commodities — such as crude palm oil (CPO) and rubber — make up the largest part of the country’s export portfolio worth US$121.8 million, around 14 percent of non-oil and gas commodity values, as of October.

Sato said that Indonesia had fundamental advantages that could ensure a sustainable economic growth and attract investments, such as a large population, a so-called demographic bonus, a stable political situation and abundant natural resources.

Meanwhile, JETRO chairman and CEO Hiroyuki Ishige said that his office intended to actively work with the Indonesian government to boost exports and encourage investment exchanges to integrate the region’s economies.

“Several problems have happened around the high-speed train project, but we are still cooperating to strengthen competitiveness in industry, infrastructure and human resources development,” he said.

Japan and China were in a heated competition to win the nation’s first-ever high-speed rail project, connecting Jakarta with Bandung in West Java. The government eventually chose China to build the link.

Nevertheless, a meeting between Japanese Prime Minister Shinzo Abe and President Joko “Jokowi” Widodo in Kuala Lumpur on Sunday signaled that both countries intended to continue cooperating. Jokowi said after the meeting that Indonesia would engage with Japan in future infrastructure projects, in addition to maintaining existing investments in infrastructure, manufacturing and industry.

Minister Thomas stated that currently the government was loosening its protectionist economic policies, which hampered industrial growth and worsened the country’s economic situation.

“Openness is important and it can facilitate the integration of Indonesia’s economy into the region,” he said, hailing Abe’s economic policy as bold, assertive and reformist.

Meanwhile, Minister Hayashi expressed hope that Indonesia’s and Japan’s relationship could be stronger and mutually beneficial in both ASEAN and globally.

“In this global economic uncertainty, it is important for Indonesia’s and Japan’s partnership to expand further and jack up the global economy,” he said.

Japan is Indonesia’s number one export market. Export values booked last year amounted to $23.1 billion, 13.1 percent of the value of Indonesia’s total exports. Japan is Indonesia’s number three importer, bringing in goods and services worth $17 billion, 9.5 percent of total imports.
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- See more at: Partnership with Japan can boost RI industry | The Jakarta Post
 
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Japan ready to assist with irrigation technology
Selasa, 24 November 2015 09:02 WIB | 1.065 Views

Jakarta (ANTARA News) - Japan has expressed readiness to help and cooperate with Indonesia in land quality improvement and irrigation technology.

"We have a big potential. If there is Japan technology cooperation especially in land quality improvement and irrigation I am convinced the quality of productivity of agricultural commodities in Indonesia will be improving significantly," chairman of Japan-Indonesia Parliament League, Toshihiro Nakai, said at an Indonesia-Japan Partnership Reception at Hotel Mulia here on Monday evening.

The event was also attended by President Joko Widodo who on the occasion also expressed hope that Indonesian people could enjoy agricultural produce from Japan.

He said Japan has an advanced agricultural technology that could be applied in Indonesia that has also a big potential in the field of agriculture.

"Besides that we hope Indonesian people could also enjoy agricultural products from Japan," he said.

Foreign minister Retno LP Marsudi said earlier that Indonesia and Japan had agreed to cooperate in agriculture. "Especially in the field of irrigation, Japan has offered cooperation for irrigation development," she said.

Japan has also extended a scholarship program for agriculture studies including agricultural technology.

So far 20 people have even been invited for training in Japan in the field.

"The President has said that Indonesia is an open economy. With an open economy we are also open for cooperation with any country including Japan," she said.(*)
Japan ready to assist with irrigation technology - ANTARA News
 
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Pertamina Targets 2 Refineries to Finish Construction in 2019
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TEMPO.CO, Jakarta - PT Pertamina president director Dwi Soetjipto targeted Bontang and Tuban refineries to finish constriction in 2019. Pertamina is working with private sector in building those refineries.

Dwi said investors will invest in the two refineries in February next year. Many foreign investors are interested in oil refinery construction, especially in Tuban. “Most of the investors are foreign from Saudi Arabia, Kuwait, Russia and Japan,” he said on Thursday.

Investment in both refineries is each US$10 billion. The refinery construction is part of Pertamina’s plan to achieve Jokowi’s target to reach 100 percent oil refinery investment in 2019. “Some of them have finished. We aim to finish them all around 2022 and 2023,” said Dwi.

Dwi said the government will issue presidential decree on the refineries. With the regulation, Pertamina will have guidelines, especially for refinery in Bontang, in the cooperation with the government and private sector. The decree will provide opportunity for private sector to invest in refinery construction in Indonesia.

“If the marketing is for domestic, they will have to work with Pertamina, but if private sector is also allowed to build export-oriented refinery,” said Dwi.


Pertamina Targets 2 Refineries to Finish Construction in 2019 | Economy & Business | Tempo.Co :: Indonesian News Portal
 
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Pertamina Targets 2 Refineries to Finish Construction in 2019
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Zoom Out Zoom In Normal
TEMPO.CO, Jakarta - PT Pertamina president director Dwi Soetjipto targeted Bontang and Tuban refineries to finish constriction in 2019. Pertamina is working with private sector in building those refineries.

Dwi said investors will invest in the two refineries in February next year. Many foreign investors are interested in oil refinery construction, especially in Tuban. “Most of the investors are foreign from Saudi Arabia, Kuwait, Russia and Japan,” he said on Thursday.

Investment in both refineries is each US$10 billion. The refinery construction is part of Pertamina’s plan to achieve Jokowi’s target to reach 100 percent oil refinery investment in 2019. “Some of them have finished. We aim to finish them all around 2022 and 2023,” said Dwi.

Dwi said the government will issue presidential decree on the refineries. With the regulation, Pertamina will have guidelines, especially for refinery in Bontang, in the cooperation with the government and private sector. The decree will provide opportunity for private sector to invest in refinery construction in Indonesia.

“If the marketing is for domestic, they will have to work with Pertamina, but if private sector is also allowed to build export-oriented refinery,” said Dwi.


Pertamina Targets 2 Refineries to Finish Construction in 2019 | Economy & Business | Tempo.Co :: Indonesian News Portal



Japan's JGC to upgrade state refinery in Indonesia


TOKYO -- JGC and Indonesian construction company Encona have won an order from state-owned oil company Pertamina to repair and upgrade an oil refinery in the Central Java city of Cilacap.

The 30 billion yen ($243 million) order covers the design and construction of equipment to refine gasoline from locally produced oil, including a catalytic reformer and a hydrodesulfurization unit. It is slated for completion by September 2018.

Domestic demand for petroleum has made oil-producing Indonesia an importer. And with more people now owning cars, gasoline consumption is on the rise.

Oil-importing Asian nations continue to place orders for projects like refineries, petrochemical plants and liquefied natural gas import terminals. Such orders for downstream investments are precisely what JGC is now focusing on winning at a time when cheap crude is leading oil majors to cut investments in upstream resource development.

Petroleum facilities: Japan's JGC to upgrade state refinery in Indonesia- Nikkei Asian Review
 
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BKPM: Japan to become FDI source in 2016

REPUBLIKA.CO.ID, JAKARTA -- The Head of Indonesia's Investment Coordinating Board (BKPM), Franky Sibarani stated that Japan will become a source of Foreign Direct Investment (FDI) in 2016.

To maintain a positive trend of such activities, BKPM officials plan to visit Tokyo, Japan, to promote investment cooperation with the local trade chambers.

"Japan will remain an investment 'fountain' in the FDI program, as it plans to enter Indonesia next year," Franky said.

Based on the investment record of BKPM, during the period of October 22, 2014 to December 4, 2015, Japanese investment interest was pegged at U.S.$11.4 billion. Japanese companies have already received principle permits of up to U.S.$5.7 billion.

During the planned visit to Japan, Franky plans to provide Japanese investors with information regarding Indonesia's investment policies, such as a three hour-investment license service, investment opportunities in various sectors, especially the priority like labor-intensive industry, infrastructures, and tourism.

"These three priority sectors are major contributors of Japanese investment," Franky noted, adding, that these sectors also include major investment categories developed by BKPM's marketing team.

The investment in the labor-intensive sector has reached U.S.$2.05 billion, the infrastructure sector is U.S.$700 million and regional tourism is U.S.$650 million.

"Japanese companies have received principle licenses, the commitment for investment in the infrastructure sector that has reached U.S.$4.6 billion and an intensive-work industry has risen to U.S.$607 million," he noted.

Franky is also scheduled to meet with Japanese banks in order to engage financing investment plans. Through the meetings, he expects mutual benefits and cooperation between both countries.

Japan is one of the main contributors for the realization of Indonesia's investment target. Data indicates that investment realization for the January to September 2015 period, released by BKPM, showed that Japan was placed third, with an investment of U.S.$2.5 billion in 1,318 Indonesian projects.

Japan is ranked below Singapore, which has invested U.S.$3.55 billion in 1,979 projects and Malaysia, which has invested U.S.$2.9 billion in 600 projects.
BKPM: Japan to become FDI source in 2016 | Republika Online
 
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BKPM Eyes Up to $13 Billion of Investment from Japan
Jakarta.
Indonesia's Investment Coordinating Board, or BKPM, has targeted up to $13 billion in investment commitments from Japanese business next year as the government pledges to continue improving the investment climate across the country.

Japan, Asia's second-largest economy, is the third biggest source of foreign direct investment in the country, after Singapore, with a total investment of some $2.49 billion over the January to September period.

"The characteristics of Japanese investors is that they seek the cooperation of all stakeholders, both the central government and the local government," BKPM chief Franky Sibarani said in a statement on Saturday during his visit to the Indonesian embassy in Tokyo, Japan.

"We hope that BKPM and the Indonesian embassy in Tokyo can increase our cooperation in attracting as many investors from Japan as possible to Indonesia."

Franky's visit to Japan is part of a larger effort by the Indonesian government to attract more private investment from overseas in order to kick-start growth and development in Southeast Asia's largest economy.

During his visit, the BKPM chief met with 183 Japanese investors to promote potential projects in the industrial and manufacturing sectors, as well as the BKPM's recent initiative to push out licensing within a three-hour window.

The BKPM is aiming to book as much as Rp 600 trillion ($42 billion) in investment next year, up 13 percent from this year's target of Rp 519.5 trillion.
BKPM Eyes Up to $13 Billion of Investment from Japan | Jakarta Globe
 
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