Kedutaan Besar Republik Indonesia
Embassy of the Republic of Indonesia
Ambassade de la RÉpublique d'Indonésie

Category: News

Indonesia prepares four fiscal incentives to boost investment

Finance Minister Sri Mulyani Indrawati has said several regulations are being revised to provide more tax incentives to businesspeople interested in investing in the country.

She said in Jakarta on Tuesday that the four incentives were in the form of tax allowances, tax holidays, tax deductions for small and medium enterprises (SMEs), as well as incentives for companies that carried our research and development (R&D) activities.

On tax allowances, Sri Mulyani said the government would expand the number of business sectors that would be eligible for the incentives, including income tax deductions.

She said the expansion plan was based on an instruction issued by President Joko “Jokowi” Widodo and recommendations from a number of ministries.

“The business sectors that will receive the tax allowance will be announced after the revision of the finance ministerial regulation,” said Sri Mulyani as quoted by after a limited Cabinet meeting on investment at the Presidential Office, adding that Jokowi had called for simpler procedures to obtain the incentives.

She said the second incentive was a tax holiday in which the government would offer income tax deductions of between 10 and 100 percent.

The third incentive is related to tax deductions for SMEs, said Sri Mulyani, adding that her ministry needed to revise Financial Ministerial Regulation No 250/1995 on SMEs to accommodate the incentive.

The fourth fiscal incentive are income tax deductions of up to 200 percent for companies carrying out R&D activities, she added. (bbn)

Indonesia introduces tax data integration system to boost transparency

Finance Ministry’s Directorate General of Taxation introduced on Wednesday a tax data integration system that aims to improve taxpayer data transparency, with state-owned energy company Pertamina becoming the first participant of the system.

Minister Sri Mulyani Indrawati said in Jakarta on Wednesday that with the system, all transactions would be quickly recorded and carried out more accurately.

“If it is carried out manually, the probability of making errors is also high,” said Sri Mulyani while inaugurating the system with State-owned Enterprises (SOE) Minister Rini Soemarno as reported by

By joining the system, Pertamina’s data, including purchases, sales and employees’ salaries could be monitored by the directorate general and the company could also automatically pay taxes and file reports.

Sri Mulyani added that the system was expected to reduce disputes between the tax office and taxpayers.

Meanwhile, Minister Rini said that while Pertamina was the first participant of the system, she would ask the other 30 SOEs to join the system, although Sri Mulyani only demanded that six other SOEs join.

Rini welcomed the introduction of the system because it would help SOEs conduct tax audits. “The system is also important for us because we can determine companies’ income and profit earlier and help them pay taxes more accurately and efficiently,” he added. (bbn)

Bali to develop offshore airport

Bali plans to develop an offshore airport in the northern part of the resort island with the name of Bandara International Bali Baru (BIBU) or the New Bali International Airport.

Project developer PT BIBU president director I Made Mangku said in Bali on Thursday that the company preferred to develop an offshore airport because the initial plan of an onshore airport would have sacrificed a number of things, including 33 Hindu temples, 121 historical sites, roads, residences and productive rice fields.

Meanwhile, Bali Governor Mangku Pastika has prohibited any taking over of productive land, Hindu temples or historical sites for the development of the new airport, Made added.

“There are so many obstacles to developing an onshore [airport], therefore we prefer to develop offshore,” said Made as reported by, adding that the offshore airport would be developed off Beleleng regency.

He said the new airport development was aimed at promoting the many tourism spots in North Bali like Tulamben, Nusa Penida and West Bali National Park as well as to open access to Banyuwangi in East Java and Lombok in West Nusa Tenggara.

He said that currently, Bali tourism was only concentrated in the southern part of Bali, the location of I Gusti Ngurah Rai International Airport.

New Bali International Airport is designed to accommodate 32 million passengers annually, equipped with a 230,000-square-meter terminal and a 4,100 meter runway. (bbn)

Tambora Charms festival to return in April

The Pesona Tambora (Tambora Charms) festival is set to return in April to Dompu regency, West Nusa Tenggara. Held for the fourth time since 2015, the event will mostly take place on the Ndoro Ncanga savanna field.

The Tourism Ministry and the West Nusa Tenggara provincial government officially announced the event on Feb. 22 in Mataram.

“This year, the festival was listed on the 2018 calendar of events by the ministry. This shows that the event is considered an attraction,” said West Nusa Tenggara Tourism Agency head Lalu Mohammad Faozal.

The first Tambora festival was launched to commemorate the massive eruption of Mount Tambora in 1815.

Faozal stated that a number of events would take place between April 1 and 11 in several locations across five regencies on Sumbawa Island. Among the events are the Extreme Marathon Tambora Challenge 320K, a surfing festival at Lakey Beach in Dompu regency and a buffalo race in West Sumbawa.

Faozal also said that the number of visitors would likely increase this year due to improved access to the island.

“The road has been paved with hot mix, and there are three daily flights from Lombok International Airport to Bima,” he said.

The Tourism Ministry’s division I deputy of marketing development, I Gede Pitana, stated that after three years of festivals, Sumbawa Island and Mount Tambora had garnered interest as exceptional tourist destinations. (wen)

Source: The Jakarta Post

SMEs take local products to Bahrain agriculture expo

Indonesia’s participation is made possible through the collaboration of PT Smexindo Inti Artha and strategic partner Induk UMKM (micro, small and medium enterprises), agriculture company SRAM & MRAM and the Indonesian Farmers Association (HKTI).

Smexindo has facilitated 10 small and medium enterprises (SMEs) in related industry sectors, including furniture, handicrafts, agriculture, landscaping, ceramics and porcelain, and food and beverage. The SMEs hail from various regions across the archipelago, from Central Java to South Kalimantan, and from Bali, West Java, Banten to Jakarta.

“Through this exhibition, we are trying to promote Indonesia through our premium-quality products as diverse, unique and exotic non-oil export commodities,” said Smexindo president Rika Aryuna.

Indonesian Ambassador to Bahrain Nur Syahrir Rahardjo said the products displayed at the expo aimed to raise awareness in the Arab kingdom and surrounding nations of the potential of Indonesian products. “This opportunity is a promotional event as well as an effort to expand [our] export markets, especially non-oil exports to Bahrain and the Middle East and North Africa [MENA], and encourage Middle Eastern tourists to come to Indonesia,” said Nur Syahrir.

The Bahrain International Garden Show was held for the first time in 2004, and offers an opportunity for exporters as well as plantation investors to learn about the Bahrain market.

“We will maximize this opportunity to reach a broader market access in the Middle East and expose local products and brands, in addition to expanding our export potential and meeting new buyers and distributors in the Arabian Gulf,” Rika Aryuna added.

Induk UMKM chairman Hariadi Saptadji said the exhibition was a benchmark reference for improving the quality, production and technology of SMEs toward competing in the international market. (waw)

Source: The Jakarta Post

Yogyakarta to transform into Indonesian Silicon Valley

The Yogyakarta provincial administration is set to transform 385 hectares of land in Piyungan, Bantul regency, and Sentolo, Kulon Progo regency, into a technology center similar to Silicon Valley in the San Francisco Bay Area in the United States.

“The two locations are prepared to become the Silicon Valley of Indonesia,” said the assistant to the Yogyakarta regional secretary for development affairs, Budi Wibowo, in Yogyakarta on Wednesday as reported by Antara news agency.

He said the areas would be converted into an industrial estate that would become the center of fashion, culinary arts, handicrafts, animation and games as well as other creative businesses. “There will be no large manufacturing factories,” he added.

The two areas – 335 hectares in Bantul and 50 hectares in Kulon Progo – have long been the subject of the development plan.

Budi said the provincial and local administration would cooperate with any investors seeking to do business in the two areas, the development of which would be kicked off by President Joko “Jokowi” Widodo on March 12.

Furthermore, he said the provincial administration had coordinated with the Bantul and Kulon Progo administrations over the business license issuance plan to ensure a quick and smooth investment process.

He said the tenants of the digital valley would be small and medium enterprises (SMEs) focused on creative businesses. “We have 524,395 SMEs that dominate economic growth in Yogyakarta,” he added. (bbn)

Source: The Jakarta Post

Indofood Agri Joins Hands With J&F Investimentos to Acquire Sugar Mill in Brazil

Jakarta. Indofood Agri Resources, the agribusiness unit of Indonesian conglomerate Indofood Sukses Makmur, announced on Monday (19/02) that it has set up a joint venture with Brazil-based investment holding company J&F Investimentos for the acquisition of a sugar mill in the South American country.

Indofood Agri, through its Brazilian business unit Indoagri Brazil Participacoes, and São Paulo-based J&F Investimentos invested about $7.2 million each in the joint venture, known as Canapolis Group.

Canapolis was formed in November last year and the company acquired a sugar mill in Brazil’s fourth-largest state, Minas Gerais, for $42 million in December through a court auction after the mill’s previous owner was declared bankrupt.

The acquisition will be paid off in four installments, with the final payment due in June 2019. The mill, which has an annual crushing capacity of 1.8 million tons of sugar cane, is situated on a 6,048-hectare sugar plantation.

Canapolis expects to start milling operations by 2020, once it completes the mill renovation and starts harvesting sugar cane.

The company has also set aside capital expenditure, to be funded with a bank loan, for the rehabilitation of the plantation and renovation of the mill.

The Indonesian conglomerate controls 50 percent of the joint venture, with the remainder belonging to J&F Investimentos.

Singapore-based Indofood Agri is mainly engaged in the production of palm oil, sugar cane and rubber.

J&F Investimentos is a holding company with numerous subsidiaries in various business sectors, including agribusiness, manufacturing, waste management and electricity generation.

One of its best-known subsidiaries is footwear company Alpagartas, which produces Havaianas flip-flop sandals.

Source: Jakarta Globe

Indonesia to Have More Than 5 Start-Up Unicorns by 2019: Minister

Jakarta. Indonesia is likely to have more than five startups worth at least $1 billion each by 2019, with healthcare and education the most promising sectors to spawn new unicorns in Southeast Asia’s biggest economy, its communication minister told Reuters.

Driven by a youthful population of more than 250 million people owning at least 100 million smartphones, Indonesia has seen a rapid growth in the number of startups trying to capitalize on this potential in a growing economy.

The country currently has four unicorns — companies that have reached $1 billion in valuation without tapping the stock markets — including ride-hailing company Go-Jek, travel site Traveloka and market places Bukalapak and Tokopedia.

“Among Asean [the Association of Southeast Asian Nations] countries we have seven unicorns and, out of seven, four are from Indonesia,” said Communication and Information Minister Rudiantara, noting that even one of the unicorns outside Indonesia derived most of its revenue from the country.

“I believe we’ll have more than five unicorns until 2019,” Rudiantara said in an interview.

Investors in Go-Jek include Tencent Holdings, with Alphabet’s Google joining the latest fundraising. Tokopedia has backing from Alibaba and SoftBank Group, while Traveloka’s backers include Expedia and Bukalapak investors include Singapore’s GREE Ventures.

The minister said that a unicorn was likely to come from the education sector.

“If we see the numbers, I project that has to come from [the] education [sector],” he said.

Under Indonesia’s constitution, the government has to spend a fifth of its annual budget on education, so even excluding private spending an app or startup only needed to get a small percentage of this “huge” potential, he said.

Indonesia’s state budget for education was Rp 400 trillion ($29.50 billion) in 2017.

The minister said the biggest local app for education currently is Ruanguru.

The other most promising sector to develop a unicorn is healthcare, which has a state budget of more than Rp 100 trillion, he said.

He noted the development of startups like HaloDoc, which offers online medical consultation, and others including Alodokter.

On funding, the minister said he wanted to help make it easier for unicorns to apply for initial public offerings in Indonesia. Local regulations prevent listings before companies have made a profit for a number of years.

“If necessary, I will go to the OJK [financial regulator] to solve this issue,” he said, adding the government should no longer be just a regulator.

“It’s an old model. The government has to be the facilitator,” Rudiantara said.

Source: Jakarta Globe

Indonesia Had 143m Internet Users in 2017: APJII

Jakarta. Indonesia recorded 143.26 million internet users last year, a 7.9 percent increase from 2016, a survey by the Indonesian Internet Service Providers Association, or APJII, has shown.

The survey, titled “Penetration and Behavior of Internet Users in Indonesia in 2017,” which was published by APJII on Monday (19/02), categorized the country’s internet users by age, education, economic status, devices they use, etc.

Despite the increase, however, the growth in the number of internet users has slowed, compared to 2016, when it was up 20.4 percent from 110.2 million in 2015.

APJII secretary general Henry Kasyfi Soemartono told reporters the growth rate slowed last year, as internet penetration in urban areas has been quite saturated, and telecommunication infrastructure needs to be revamped in rural areas, especially in the eastern part of the country, he said.

“The use of fiber optic installations in big cities is quite popular due to their advanced infrastructure, but in rural and rural-urban areas there are still challenges … therefore a satellite internet connection can be an alternative,” he said.

APJII employed a multistage cluster-sampling approach and conducted interviews to produce the survey. It was based on data collected from 2,500 internet users aged 13 and above, in six regions — Java, Sumatra, Sulawesi, Kalimantan, Bali-Nusa Tenggara and Maluku-Papua. The margin of error was 1.96 percent.

Internet Use Trends

According to the survey, about 44.16 percent of the respondents accessed the internet with their mobile phones, 39.28 percent used computers and mobile phones, while 4.49 percent used computers only. The study revealed that 89.35 percent of them used the internet for chatting, 87.13 percent to access social media, 74.84 percent to use search engines, 72.79 percent to view images, and 70.23 percent to download videos. Several features were usually accessed simultaneously.

The study covered urban areas (non-agricultural sector-based income), rural areas (agricultural sector-based income) and urban-rural areas (mixed income).

In urban areas, 72.41 percent of people had access to the internet, in rural-urban areas — 49.49 percent. In rural areas, the internet penetration rate stood at 48.25 percent.

Java Still Dominates

While nearly 55 percent of the country’s population was connected to the internet in 2017, the island of Java had the highest penetration rate — 58.08 percent — followed by Sumatra (19.09 percent), Kalimantan (7.97 percent), Sulawesi (6.73 percent), Bali-Nusa Tenggara (5.63 percent) and Maluku-Papua (2.49 percent).

“The number of internet users will definitely increase this year, but to stimulate growth we must focus on rural areas, as they are still left behind … We need to provide them with telecom infrastructure,” Henry said.

Source: Jakarta Globe

State budget grows positively in January: Finance minister

Jakarta (ANTARA News) – The realization of the state budget showed a positive trend in January 2018 as was reflected by the improving performance of state revenues and expenditures, Finance Minister Sri Mulyani Indrawati stated.

“As of January 31, 2018, the state budget has shown a positive growth and has raised optimism about achieving better performance,” Mulyani remarked in a press conference here on Tuesday.

State revenues amounted to Rp101.4 trillion in the year ending January 31, 2018, accounting for 14.7 percent of the realized state revenues in the same period last year, she remarked.

State revenues in January 2018 were derived from tax receipts worth Rp82.5 trillion, up 11.8 percent from Rp74 trillion in the same period of last year, she noted.

“The realization of state revenues was fueled by growing revenues from income tax on oil/gas, non-oil/non gas commodities, luxury sale tax, customs and excise revenues,” he pointed out.

Meanwhile, the realization of state expenditures reached Rp138.4 trillion, or 6.2 percent of the ceiling of the 2018 state budget, at Rp2,220.7 trillion, up 3.9 percent as compared to the same period last year.

The state expenditures were derived from the central government`s spending worth Rp63.8 trillion, representing a 10.7 percent increase as compared to Rp57.6 trillion in the same period last year.

The central government`s spending comprised ministries` spending worth Rp19.7 trillion and non-ministerial government institutions` spending worth Rp44.1 trillion.

With the realization of the state budget in January 2018, the budget deficit was recorded at Rp37.1 trillion, or 0.25 percent of the national gross domestic product, or lower than that of the same period last year, at Rp44.9 trillion, or 0.33 percent of the gross domestic product.

Reported by Satyagraha

Editor: Heru Purwanto


Jokowi government succeeds in slashing inflation: Palace

Padang, W Sumatra (ANTARA News) – A Presidential palace spokesman said in three years the government of President Joko Widodo (Jokowi) has succeeded in slashing inflation from 8.36 percent in 2014 to 3.61 percent year-on-year in 2017.

“The inflation dropped sharply in three years that the prices remained within the purchasing power of the people,” Yanuar Nugroho, Deputy II of the Head of the Presidential Staff said at a national discussion here on Tuesday.

The country`s economic growth also was quite stable at 5.1 percent in the first quarter of 2017, higher than Thailand`s 3.7 percent, South Korea`s 2.7 percent and Russia`s 2.5 percent, Januar said.

The country`s economic growth was not very high but it was the forth among the G-20 countries, he said at the discussion on National Road Show of Achievement in Three Years of Jokowi-Jusuf Kalla Government held at the state University of Andalas in cooperation with the Presidential Staff Office.

He also said the Indonesian entrepreneurship ratio rose from 1.65 percent in 2014 to 3.01 percent in 2017, and economic gap has also narrowed with the application of the equitable development concept.

“In 2014 , the gap was 0.414 and in 2017 it was reduced to only 0.393,” he pointed out.

He said in three years there were four development focuses carried out by the government – economic development, eradication of poverty and social aid, narrowing regional gap and political and security stability and culture.

In a bid to reduce the lopsidedness , the priority has been given to rural development, and subsidy is provided only for those entitled to it, he said.

He cited under the Jokowi government, subsidy is given directly to farmers not to fertilizer factories as rich farmers would have more benefit if the subsidy is given to fertilizer factories.

An example of equitable development is the construction of the Trans Papua highway , he said.

He denied suggestion that poverty is worse in the country, saying the number of people living below the poverty line dropped from 10.96 percent in 2014 to 10.64 percent in March 2017.


Editor: Heru Purwanto


Government opens investment opportunities in livestock sub-sector

Jakarta (ANTARA News) – The Government of Indonesia has opened wide opportunities for various parties to invest in the country`s livestock sub-sector, Director General of Animal Husbandry and Animal Health at the Ministry of Agriculture I Ketut Diarmita stated.

“To encourage the business community to invest, the government has issued various regulations,” Diarmita noted in a written statement to ANTARA here on Tuesday.

According to Diarmita, the government has been striving to increase the population of domestic beef cattle by boosting the related budget.

However, he acknowledged that relying heavily on the government`s budget for the livestock sub-sector will be inadequate and not a wise option.

Due to the higher budget burden, the government has to finance the overall development of the sector. Hence, it has encouraged the private sector to contribute to the development of sub-sectors through investment and development of partnerships.

“The livestock sub-sector needs support from all parties, not only from the government but also from the private sector and society,” he stated.

Diarmita explained that in order to encourage investment, the government has facilitated, through both regulation and deregulation, such as Presidential Regulation No. 44 of 2006 according to which the business of cattle farming, both cut and dairy, is open to both local and foreign investors.


Editor: Heru Purwanto

BI maintains key rate at 4.25 percent

Bank Indonesia (BI) has decided to maintain its benchmark rate on the back of the macroeconomic and financial system stability as well as to support the domestic economic recovery.

BI’s seven-day reverse repo rate was kept at 4.25 percent, while lending rates and the deposit facility rate were also maintained at 5 percent and 3.5 percent, respectively.

“We believe [the decision] was in line with the macroeconomic and financial system stability and supports Indonesia’s economic recovery,” said BI Governor Agus Martowardojo in Jakarta on Thursday.

However, Agus added that BI continued to monitor external risks, such as instability generated from the Federal Reserve’s interest rate hike, which could be higher than anticipated, and the increase in oil price.

The domestic risks, meanwhile, include ongoing corporate consolidation, weaker-than-expected banking intermediation as well as risks to inflation, Agus added.

“Bank Indonesia will continue to optimize the monetary, macroprudential and payment system policy mix to maintain the balance between macroeconomic and financial system stability as well as strengthening the implementation of structural reform,” he said. (bbn)

Pinisi Boat Enters World’s Intangible Cultural Heritage List

Foreign Minister Retno Marsudi on Tuesday (13/02) received a Unesco certificate recognizing the pinisi, a traditional Indonesian sailboat, as the world’s intangible cultural heritage.

The document was delivered by Hotmangaradja Pandjaitan, Indonesia’s ambassador to France and the United Nations Educational, Scientific and Cultural Organization.

The minister said the Unesco acknowledgement of the signature Bugis sailing vessel from South Sulawesi is not the last goal, but a means to promote and support the preservation of culture.

“The recognition of the pinisi boat of South Sulawesi as the world’s intangible cultural heritage is a big pride for the people of Indonesia,” Retno said, as quoted in the ministry’s statement.

“It should be followed by a good preservation policy that includes educational efforts.”

The boat entered the Intangible Cultural Heritage List last year, following the kris (a traditional wavybladed knife), wayang (shadow theater), batik, angklung musical instrument, noken bag from Papua, Saman dance from Aceh, and Balinese dance.

Pantun, a Malay poetic form proposed by Indonesia and Malaysia, is expected to be approved by Unesco this year.

Next year, Indonesia plans to propose martial art pencak silat.

“The Unesco recognition of Indonesia’s cultural riches and is an encouragement for us to keep preserving them,” Hotmangaradja said.

Palembang LRT to Be Ready in July; Initial Fare Set at Rp 5,000

A light rail transit system currently under construction in Palembang, South Sumatra, is set to be completed in June and fully operational by July.

The government will subsidize the initial fare, which has been set at Rp 5,000 (35 US cents) until December, to encourage the public to make use of the new mode of transportation built for this year’s Asian Games.

The games, jointly hosted by Jakarta and Palembang, will start in August.

The 23-kilometer LRT will connect the city’s Sultan Mahmud Badarudin International Airport II to Jakabaring Sport City, where the games will be held.

The Ministry of Transportation said fares will be reviewed after December.

“Initial ticket price is Rp 10,000 for the Palembang LRT, but the public must be aware that the price is Rp 5,000 after state subsidizes,” Transportation Minister Budi Karya Sumadi said after an event in Palembang on Monday (12/02).

“We will conduct an operational test [for the LRT] in March,” he added.

The government believes the subsidized fare is necessary to change the public’s commuting habits, while also taking into account purchasing power in the region.

“The most important thing is that the LRT is used by the people, and the subsidy correlates with their purchasing power,” said Zulfikri, director general of railways at the ministry.


Progress in the LRT construction project, which broke ground in 2016, currently stands at 86 percent, slightly behind schedule.

“There’s a 2.9 percentage point deviation; that’s a miss for this week,” said Suranto, a project official.

The Palembang LRT system will have 13 stations, starting from Sultan Mahmud Badarudin International Airport II to its end point in Ogan Permata Indah in Banyuasin district.

Suranto said the delay was caused by road reconstruction, necessitated by the LRT project.

“There are 13 stations we have to build, with each having a typical construction model, but another issue is when we have to repair damage caused to the road by the construction process,” he said.

“The road repairs are also our responsibility,” he added.

However, Suranto said they would put pressure on the contractors to meet the June deadline.

“We’re pushing contractors to not have any more delays, because the timeline deviation is quite significant. We’re also worried that the project may not completed by June,” he said.

The Palembang LRT will cost Rp 12.5 trillion, funded from the state budget.

Indonesian mangoes, dragon fruit to enter Australian market

Indonesia will soon export mangoes and dragon fruit to Australia, a decision made during the 21st meeting of the Working Group on Agriculture, Food and Forestry Cooperation (WGAFFC) between Australia and Indonesia, held in Melbourne from Feb. 14 to 15.

The Agriculture Ministry’s Agriculture Quarantine Agency head, Banun Harpini, who acted as cochair during the meeting, said Australia had agreed to irradiate the fruit to assure healthy products would enter the Australian market.

“In the upcoming harvest season in October, we will start exporting mangoes to Australia,” said Banun as reported by on Thursday, adding that one of the aims of the meeting was to discuss the provision of Indonesian fruit to the Australian market.

Meanwhile, export of dragon fruit could start in the middle of this year, Banun added.

Meanwhile, Louise Van Meurs of Australia’s Agricultural and Water Resources Department demanded that Indonesia accept the entry of seed potatoes from South Australia and Victoria, which Indonesia agreed to during the meeting.

In addition to the agreement, Australia would also allow the entry of Indonesian chicken products on the condition that Indonesia’s Agriculture Quarantine Agency would closely supervise the exporters in fulfilling the biosecurity requirements set by the Australian government.

During the meeting, the delegates also discussed various other issues, including existing regulations in each country that related to the issue of and cooperation in capacity building in the forestry sector. (bbn)

President Jokowi`s 2019 Work Plan Revealed

TEMPO.COJakarta – The National Development Planning Agency (Bappenas) revealed that the work plan of President Joko Widodo (Jokowi) for 2019 will focus on the equity for quality growth.

Head of Bappenas Bambang P.S. Brodjonegoro stated that the quality equity will not just be emphasized among income groups in society, but also among regions. “It contains five national programs and 24 priority programs,” said Bambang on Wednesday, February 15.

According to Bambang, the five national programs emphasize human development, inter-region discrepancies, added value, energy, food and water sustainability, and national security stability.

The 2019 national priority is considerably simpler compared to that in 2018 that focuses on ten focus elements which include education, health, housing, tourist and business development, energy and food sustainability, poverty alleviation; infrastructure, connectivity, and maritime affairs; regional development; as well as politics, law, defense, and security.

Bambang previously said that the 2019 government work plan (RKP) will be strengthened by maintaining the national security stability. According to Bambang, Bappenas believes that national security stability and equity are closely linked together.

President Jokowi has already discussed the 2019 RKP in a plenary cabinet session where he emphasized that investments and exports must continue to be the key driver for economic growth.


Indonesia promises speedier licensing, offers tax incentives

Finance Minister Sri Mulyani Indrawati has said that the government will continue to reform its regulations and had offered incentives in an effort to boost investment, reported.

Speaking on Monday in Jakarta, she said that the government would further eliminate regulations that could disrupt investment to help speed up the licensing process for investors.

Sri Mulyani added that the central government would coordinate closely with local governments to roll out reform packages that would, in the end, enable the government to set up a “single submission system” for all business and investment permits.

The single submission system is intended to ease the licensing process and significantly cut down the waiting period for businesses.

“When the single submission system is implemented, the coordination with local governments will become very important,” she said.

As for the incentives, she said, the Finance Ministry would cooperate with the Industry Ministry to simplify the process for providing tax holidays and tax allowances to investors.

President Joko Widodo has reminded his ministers and regional government heads  several times to simplify the business licensure process to attract more investors to the country in the competitive global investment climate.

“If we delay, the funding will go to countries that already offer a better investment climate,” the President said on Monday during a Cabinet meeting at the Presidential Office. (bbn)

Italy backs Indonesia`s palm oil in EU

Jakarta (ANTARA News) – Italy is supporting Indonesia`s bid to use palm oil as one of the biofuels in the European Union (EU) market, Indonesian Ambassador to Italy Esti Andayani said.

“From the beginning, Italy has always supported us, either in the WTO (World Trade Organization), the European Union or the European Parliament,” Andayani said here, Tuesday.

According to Andayani, the Italian government is supporting the use of palm oil in the EU region, because the country uses palm oil for its products, including in food products and cosmetics.

“When I met with the president of Ferrero Rocher, he told me that their chocolate and Nutela products used palm oil. Palm oil has longer shelf life than other (vegetable) oils. It does not turn sour easily, thus ensuring the products using it last longer,” she said.

The ambassador said the Ferrero Rocher president had assured Indonesia that they would continue to use palm oil, as the results of a research they conducted showed that it was not hazardous to human health.

“They (Ferrero Rocher) will continue to use palm oil. By conducting a research, they have proven that people who said it (palm oil) is not healthy are liars. The company won in the court against the hoax,” she noted.

Hence, the Indonesian government will cooperate with the Italian government and Ferrero Rocher to fight the ban on the use of palm oil in the EU region.

In addition to this, the Italian government, through several of its ministries, has also thrown its weight behind Indonesia`s struggle against the black campaign on palm oil in EU, she stressed.

Indonesian Foreign Minister Retno LP Marsudi earlier expressed concern about the ban on the use of palm oil for biofuel in the EU region when she met with Italian Minister for Foreign Affairs and International Cooperation Angelino Alfan.

Italy is the third largest market for Indonesian palm oil in Europe.

In October 2017, the European Parliament passed a resolution to phase out palm oil exports from the EU biofuel programme from 2021.

The resolution was passed based on claims that palm oil manufacturers have failed to achieve the UN`s sustainable development goals on responsible consumption, production and climate action.

Reported by Yuni Arisandy

Editor: Heru Purwanto

Indonesian Solok Radjo Coffee to Penetrate U.S. Market

TEMPO.COJakarta - Solok Radjo coffee, well known for its good quality, is capable to penetrate the U.S. market. Chief of Department of Cooperatives, Small and Medium Enterprises in West Sumatra Zirma Yusri said the Arabica coffee will be exported to the United States this year.

“The market is already started,” he said in Padang, Tuesday, February 13.

Read: Indonesia Explores Vietnam Coffee Market

The market for the coffee, as stated, available through some exhibitions participated in several countries to introduce the Solok Radjo coffee internationally.

Besides, review from a coffee evaluator Q Grade is very helpful to present the product to the coffee lovers.

Read: Indonesia’s Coffee Exports to South Korea Jump 53 Percent

Zirma mentioned Solok Radjo coffee has unique scent and taste; it has a fresh-sour and a bit sweetness. Aside from that, it faintly smells good like spices.

The quirky taste and smell have made the coffee favored by the coffee lovers, not only in West Sumatra but also in Indonesia. Now, Solok Radjo sets to gain access into international market and coffee farmers in Solok begin to feel the result of their hard work.


Boost Investment, Sri Mulyani Focuses on Regulation and Incentive

TEMPO.COJakarta – Finance Minister Sri Mulyani said the investment will be encouraged by simplifying regulations and providing incentives. It is expected to boost investment contribution towards economic growth. Sri Mulyani said it will be done by reducing the various rules that hinder. She also stated the government also needs to create a shorter and easier investment process.

Read also: Best Minister Award a Burden, says Sri Mulyani

Related to incentives, the Ministry of Finance will cooperate with the Ministry of Industry. Both are evaluating incentives in the form of tax holidays and tax allowances.

The Ministry of Industry will also help to determine which industries are entitled to receive incentives. Sri Mulyani said there are provisions applied for incentive recipients.

President Joko Widodo asked the Working Cabinet to quickly improve the investment. He said all nations are racing to withdraw funds from abroad.

Jokowi said the investment is needed to open additional employment and accommodate unemployment. Investment is also one of the driving forces of Indonesia’s economic growth.


All Indonesians proud of Sri Mulyani’s award: Jokowi

Jakarta Post – President Joko “Jokowi” Widodo has praised Finance Minister Sri Mulyani Indrawati for being awarded Best Minister in the World at the World Government Summit in Dubai on Sunday.

Jokowi said the award was acknowledgment of the country’s prudent fiscal management as well as careful and effective state budget planning and implementation.

“This is recognition not only for one minister. I think all Indonesians are proud of the award,” said Jokowi in Jakarta on Monday.

The award is based on an assessment by independent institution Ernst & Young and was presented during the World Government Summit in Dubai by United Arab Emirates Vice President Sheikh Mohammad bin Rashid Al Maktoum.

The award has been given out annually since 2016.

In her acceptance speech, Sri Mulyani said the award was recognition of accomplishments made under the administration of President Joko “Jokowi” Widodo, particularly in the economic sector.

She highlighted the hard work of civil servants working at her ministry in dealing with financial issues.

The World Government Summit is an annual event held in Dubai involving government representatives from all over the globe. At the forum, representatives of government officials, policy makers, experts and private companies exchange views about global trends.

The summit was attended by 4,000 participants and presented 90 speakers from 150 countries. (bbn)

Recognition to Minister Mulyani shows Indonesia’s economy managed effectively

Jakarta (ANTARA News) – President Joko Widodo said here on Monday that an international recognition designating Sri Mulyani as the world’s best finance minister proved Indonesia’s economy was on the right track and was being managed effectively.

“I think all Indonesians are proud of this achievement, and this shows that our macro economy and fiscal policies are on the right track; also, they are being managed prudently and effectively,” he stated.

Speaking after opening the working meeting of Indonesian ambassadors and top diplomats at the foreign ministry’s Pancasila building here, he said the achievement was the world’s recognition to Mulyani’s capabilities.

Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum handed over the Best Minister in the World Award to Mulyani at the World Government Summit that the country hosted.

“The selection process was conducted by a reputable institution, Ernst & Young,” the head of state remarked, adding that this achievement was the world’s recognition for only one minister. “I think everyone is proud of her,” he said.

The `Best Minister in the World Award` has been given to one minister since 2016.

Indonesian economy continues to recover in 2018

Jakarta (ANTARA News) – Indonesia has one of the strongest economic fundamentals in the ASEAN region as shown by low debt, moderate inflation, stable governance, and marginal political risk.

This year, Indonesia`s economy is expected to rebound to 5.3-5.4 percent due to consumption recovery and continuing infrastructure investment.

In the World Bank`s January 2018 edition of its Global Economic Prospect (GEP) report, Indonesia`s economic growth is considered stable at 5.3 percent year-on-year (y/y) in the 2018-2020 period.

One of the key reasons why the World Bank expects a solid jump to 5.3 percent (y/y) GDP growth for Indonesia in 2018 and beyond is because the nation`s household consumption is estimated to improve on the back of rising wages.

Meanwhile, rising commodity prices are also expected to boost the economy of the Southeast Asian largest economy. Indonesia is one of the world`s big commodity exporters.

Based on data of The Investment Coordinating Board (BKPM), Indonesia`s economic growth would still mainly be driven by domestic consumption and investment. Until the third quarter of 2017, investment in Indonesia amounted to Rp 513.2 trillion, constituting 75.6 percent of the government`s target of attracting Rp 678.8 trillion of investment.

In addition, the government proposed a growth target at 5.4 (yoy), while Bank Indonesia offered the growth range of 5.1 to 5.5 percent.

An economist of DBS Bank Gundy Cahyadi remarked that a trend of rising commodity prices, which is believed to attract investment and boost household consumption, will increase economic growth in 2018 to 5.3 percent year-on-year (yoy).

If commodities remain at current levels, the investment growth and household consumption will increase, Cahyadi said.

In addition, the realization of infrastructure development will affect the economy in 2018.

In 2017, infrastructure development attracted investment that boosted Indonesia`s economic growth in the fourth quarter of 2017 by 5.19 percent (yoy).

With policy-making becoming more challenging and the 2019 Presidential election looming, Indonesia would need a major pull from the external environment to move to a higher gear.

GDP growth may still pick up slightly to 5.3 percent and 5.4 percent in 2018 and 2019, respectively, up from our forecast of 5.1 percent for 2017.

“Stronger commodity prices will translate into higher contribution of net exports to overall GDP growth. Investment growth will continue its gradual recovery. Meanwhile, consumption growth remains relatively stable at 5 percent,” Cahyadi stated.

Financial Services Authority (OJK) official Bambang Widjanarko estimated that Indonesia`s economy will continue to recover in 2018, as indicated by the improvement of motor vehicle and cement sales as well as consumers` confidence.

He stated that the economic growth potential is supported by investment growth, especially through infrastructure development.

Foreign investors` confidence in Indonesia`s economic growth is also high, as reflected in the upgraded rating of Indonesia as a grade investment state which was previously ranked 41 to 36 (global competitiveness index) and listed as a top improver based on the ease of doing business 2017, he stated.

In the meantime, he added that the bank intermediation performance is predicted to grow in the range of 10-12 percent in line with the growth of economy, third-party fund (DPK), and credit growth.

Nevertheless, credit growth is expected to be in the range of the lower limit of the projection range, considering the process of individual bank consolidation, NPL improvement, and competitive pressure from peer-to-peer lending industry.

Meanwhile, Vice Chairman of the House of Representatives Commission XI Achmad Hafisz Tohir remarked that energy, food, and water security, as basic human needs, are fundamental problems that need to be addressed in the coming year.

Indonesia`s economic strategy cannot rely on continued extractive commodities but should rely more on the superiority of higher value industry competitiveness,” he said.

Another challenge related to Indonesia`s economic fundamentals is the limited carrying capacity of long-term financing of the formal financial sector in national development.

“In the future, various external and domestic challenges need to be monitored in order to avoid having a negative impact on the Indonesian economy,” he noted.

For that, he added that the policy synergies between Bank Indonesia and the government need to be strengthened. The economic policy mix is directed at safeguarding macroeconomic stability and financial system and maintaining the momentum of economic growth, in order to achieve sustainable and long-term economic growth.

President Joko Widodo earlier underscored the need for Indonesia to transform its economy from consumption-based to investment-based economy.

The time has come for Indonesia to shift to investment-based economy from consumption-based economy, he stated.

The same is also true with industries that rely on natural resources, he said.

Indonesia must abandon the economy, which is based on natural resources, without processing and instead must pursue manufacturing industries to increase added value, he remarked.

“This is the key. Let us not continue to export raw materials without processing them. We must start with process-based economy,” he revealed.

He pointed out that the government is building more infrastructures as part of the efforts to boost the national economy.

Equitable infrastructure development across Indonesia is badly needed, he noted.

“Infrastructure development in Indonesia is urgent because its (existing) infrastructures are far from ideal and even tend to worsen. This is based on the results of a study conducted by the World Bank and McKinsey (in 2013),” he revealed.

Hence, the government has been stepping up infrastructure development in outlying regions, including Papua, which previously received less attention, he stated.

The government is building Trans Papua road and several other infrastructures to curb price disparities, especially in Papua, he concluded.


Editor: Heru Purwanto


JCR raises Indonesian credit rating to BBB+

Japan Credit Rating Agency Ltd. (JCR) has raised Indonesia`s sovereign debt rating from BBB- with a positive outlook to BBB+ with a stable outlook.

A statement on the JCR website says that, since President Joko “Jokowi” Widodo took office in October 2014, Indonesia has been pressing ahead with structural reforms aimed at promoting sustainable growth by reducing dependence on the natural resources sector.

The effects of reform initiatives, according to JCR, include an improved investment climate, an acceleration of infrastructure development and the control of external debt owed by the private sector, as a result of Bank Indonesia regulations on external borrowing.

“Taking those into consideration, JCR has upgraded its ratings by one notch and changed the outlook to stable,” said the rating firm.

The so-called economic policy packages and a BI reference rate cut had boosted private investment, especially in the non-commodities sector, JCR asserted, adding that the decline in the current account deficit and high foreign exchange reserves also reflected increasing resilience of Indonesia`s economy.

JCR also said fiscal reform in the form of shifting subsidy spending to infrastructure, health and education had helped reduce the fiscal deficit and increase spending efficiency.

Bank Indonesia Governor Agus Martowardojo said JCR`s decision to raise Indonesia’s credit rating reflected international institutions` confidence in the structural reforms.

“It also reflects harmonious synergy between Bank Indonesia and the government in safeguarding macroeconomic financial system stability,” he said. (bbn)

Mattel Indonesia to introduce batik-wearing Barbie

Mattel is set to launch an Indonesian version of its iconic Barbie toy, with the famous doll wearing the country’s signature batik clothing.

As reported by, the announcement came on Monday during 25thanniversary celebrations of Mattel Indonesia, which is a branch of the company’s headquarters based in California, United States.

At the event in Cikarang, West Java, a Barbie clad in batik was gifted to Industry Minister Airlangga Hartarto.

The doll was dressed in pink-and-purple batik with signature motifs of parang (tongue of fire) and megamendung (blue-and-white cloud). The outfit was completed with a scarf and accessories that included shoes, earrings and a golden-colored necklace.

“Today, the batik Barbie was launched, which shows that Mattel is geared toward the branding of local Indonesian products,” Airlangga said at the Mattel Indonesia factory in Cikarang, West Java, on Monday as quoted by

It is not yet known when the Barbie in batik will be available in stores or what motif the doll will wear. According to Mattel, the company is set to explore further development before officially launching the product in the market. (liz/kes)

Ubud Food Festival to feature 100 culinary experts

The annual culinary adventure event Ubud Food Festival is set to return this year on April 13-15 in Ubud, Bali, featuring around 100 culinary experts from Indonesia and abroad.

Among the Indonesian culinary experts slated to attend the festival are Sisca Soewitomo, who will cook Indonesian homemade food and serve it to visitors, Rinrin Marinka and Andrian Ishak, who is known for his skills in molecular gastronomy cuisine.

Read also: Ubud Food Festival 2017 features world-class culinary experts

Additionally, the event’s fourth edition will also present Michelin Star chefs, namely Colombo-born Rishi Naleendra, Sam Aisbett and Korean chef Jun Lee.

According to, the 2018 Ubud Food Festival will also feature other events, from discussions and cooking demos to workshops, film screenings and music performances. (wir/kes)

Indonesia encourages growth of digital economy

Jakarta (ANTARA News) – The internet has triggered the Fourth Industrial Revolution, marked by the development of digital economy globally, among others.

Digital economy functions primarily by means of digital technology, especially internet-based electronic transactions.

Digital economy permeates all aspects of society, including the way people interact, the economic landscape, the skills required to secure a good job, and also political decision-making.

Globally, digital economy contributes 22 percent to the economy, while digital technology applications are set to contribute US$2 trillion to the global gross domestic product by 2020.

In Southeast Asia, the value of online trade is estimated to reach $88 billion during the period between 2015 and 2025 for various apparel, electronic, household, and food products.

With the world`s fourth-largest population and a large number of internet users, Indonesia has the potential to become the biggest digital economy in Southeast Asia, both in terms of the manufacturing and retail industries.

This aspect was highlighted by Google and Temasek, foreign investors in Indonesia, through a study on digital economy in the Association of Southeast Asian Nations, according to an article by the Indonesian Investment Coordinating Board (BKPM).

Based on the study, Indonesia has witnessed a 19 percent annual increase in the number of internet users, with this figure possibly reaching 215 million before 2020.

Apart from a high growth in the number of internet users, Indonesia has also experienced a significant growth in the online market or e-commerce. Currently, the percentage of e-commerce transactions in Indonesia is high, reaching about 36 percent and is estimated to reach $81 billion before 2025.

Moreover, the BKPM had recorded foreign investment worth $4.8 billion in the digital economy last year. The realization, however, may take place over several years, BPKM Head Thomas Lembong stated as reported by and The Jakarta Post.

The Indonesian government has planned to formulate a policy to encourage innovations in digital economy and provide opportunities for e-commerce players to grow their businesses.

“The policies should not be too strict but be dynamic and adaptive in order to offer space for innovation and legal certainty,” Coordinating Minister for Economic Affairs Darmin Nasution stated recently.

He added that policies or regulations need to be developed with a principle approach rather than a standard approach, which potentially has become rapidly obsolete along with digital developments.

“Nowadays, this is not the standard that we want to set, as it will quickly become obsolete and tends to change easily. We want to implement principle policies to create a level playing field, which require similarities between online and offline businesses to balance the competition,” Nasution explained.

The government is also making preparations to produce qualified human resources to develop the digital economy.

Foreign instructors are still needed following the rapidly expanding digital economy in Indonesia, Minister Nasution stated.

“Here, we are talking about the need for talent in the field of e-commerce, instructors for vocational education, as well as nursing workers whose numbers are still not sufficient,” he pointed out.

Other steps to support the preparation of human resources, especially in the areas of e-commerce and financial technology, are the provision of incentives to the Indonesian diaspora abroad and the development of vocational education.

Meanwhile, Communication and Informatics Minister Rudiantara promoted Indonesia’s digital strategy, while participating in the World Economic Forum (WEF) in Davos, Switzerland, on January 23–26, 2018.

With regard to the digital economy, Indonesia has outlined priority policies, such as the e-Commerce Map publishing. The government has also been working on several initiatives, such as the 1000 Digital Startup Movement, Eight Million Micro, Small, Medium Enterprises Go Online, and One Million Fishermen and Farmers Go Online, which are expected to be realized by 2020.

At the WEF on Jan 23, delegates from countries in the Association of Southeast Asian Nations (ASEAN) had launched the “Digital ASEAN” initiative aimed at developing the digital economy by adopting a regional approach to build integration in the ASEAN digital region and to establish the Board of Governors to help the ASEAN march into the digital economy.

Minister Rudiantara along with three other ASEAN ministers of digital economy from Vietnam, Thailand, and Singapore were part of the Advisory Board of Digital ASEAN.

At the WEF meeting, Rudiantara was also invited by the forum to become a member of the Stewardship Board for the “System Initiative on Shaping the Future of Digital Economy and Society” Sessions.

“This meeting offers the right momentum for Indonesia to socialize and promote Indonesia`s national digital strategy to create a sustainable digital priority in future through a collaborative approach,” Rudiantara emphasized.


Editor: Priyambodo RH


Indonesia always sees surplus in its trade with South Asian countries

Pekanbaru, Riau (ANTARA News) – Indonesia has always recorded a surplus in its trade with India and Pakistan thanks to ASEAN-India Free Trade Area (AIFTA), an international law expert said.

“With the AIFTA, it is not impossible (for Indonesia) to expand its trade relations with South Asian countries, including Sri Lanka, Pakistan, and Bangladesh,” Dr. Evi Deliana HZ, LLM of University of Riau. stated here on Saturday.

She was responding to Indonesian President Joko Widodo`s five-South Asian nation tour, which took him to Sri Lanka, India, Pakistan, Afghanistan, and Bangladesh from Jan 24 to 28, 2018.

During the tour, Indonesia signed several cooperation agreements with Pakistan, Sri Lanka, and Bangladesh, particularly in the trade field.

With the agreements, Indonesia and the South Asian countries believed that the trade relations will give them mutual benefit, she remarked.

“Indonesia hopes that the cooperation will further expand the market for its exports to South Asia,” she explained.

She added that the president`s visit also demonstrated the ever-increasingly closer relations between Indonesia and South Asian countries, particularly India.

Indonesia and India have special relations, particularly diplomatic and economic relations. India was among the countries which recognized Indonesia in the early days of its independence, she revealed.

“Almost all Indonesian presidents had paid state visits to India. In fact, when Soesilo Bambang Yudoyono took office (as the sixth Indonesian president), he visited India several times,” she pointed out.

Reported by Frislidia

Editor: Heru Purwanto


Indonesia records exports worth US$168.7 billion in 2017

Jakarta (ANTARA News) – Indonesia`s Trade Minister Enggartiasto Lukita revealed that the country`s exports in 2017 had reached US$168.7 billion, a year-on-year increase of 19.8 percent.

Exports have surpassed the previous target of a 5.6 percent increase, Enggartiasto noted at the opening of the ministry`s working meeting here on Wednesday.

The opening was attended by President Joko Widodo (Jokowi), some cabinet ministers, and businessmen.

The minister disclosed that the exports were supported by an increase in the non-oil and gas exports, at 15.8 percent, and oil and gas exports, at 20.1 percent.

He stated that the ministry had implemented some strategies to increase exports and had reoriented the task of trade representatives overseas.

“Not only as a government agent but also as business and marketing agent,” Enggartiasto noted.

In a bid to boost exports to non-traditional markets, Enggartiasto revealed that the ministry had sent its trade mission to South Africa, Nigeria, Egypt, Russia, and Chile, with transactions worth $264.7 million, or more than Rp3.57 trillion.

“Non-oil and gas exports to non-traditional markets, such as Africa, Latin America, Middle East, and South Asia, have shown positive growth in 2017,” he remarked.

He believes that this positive momentum has continued into early 2018.

“I accompanied the president on his tour to South Asia, covering Sri Lanka, India, Pakistan, and Bangladesh. Apart from accelerating the international negotiation process, we also sent a trade mission to India, with potential transactions reaching $2.16 billion (Rp28.6 trillion), and another mission to Pakistan, with transactions worth $115.02 million (1.52 trillion),” he elaborated.

In the energy sector, the ministry has signed an agreement to export liquefied natural gas to Pakistan and Bangladesh worth $10 billion (Rp13.5 trillion).

“India, Pakistan, and Bangladesh are among the 10 largest contributors to Indonesia`s trade balance surplus,” he stated, adding that the three countries are expecting more Indonesian products to enter their markets.

On the issue of food prices in the domestic market, he noted that the ministry can maintain stability in the prices of food items and their supply by focusing on domestic absorption.

The inflation rate was relatively low, at 3.6 percent, with food inflation, at 1.3 percent, dropping from the previous rate of 5.7 percent in 2016.

“Food inflation was at its lowest level and most manageable during the past five years,” he pointed out.

In line with the target to revitalize five thousand traditional markets in the 2014-2019 period, the ministry is currently conducting revitalization of 2,715 traditional markets.

The ministry has developed a market monitoring system for basic necessities that will become an online and real time reference for information on food prices.

The system contains information on the average price of 19 goods and nine basic necessities in 34 provinces across the country.

“We will also use this system as a transparent indicator to manage the supply of basic necessities,” Enggartiasto added.

(Reported by Joko Susilo/Uu.S022/INE/KR-BSR/A014)

Editor: Priyambodo RH