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

Category: Economic

Indonesia Issues Rules on Company Ownership to Tackle Money Laundering

Jakarta. Indonesia issued rules this week requiring corporations to reveal details of beneficial ownership to the government, as part of efforts to tackle money laundering and terrorism financing in Southeast Asia’s largest economy.

This comes at a time when Indonesia is trying to join the Financial Action Task Force (FATF), an inter-governmental body that is fighting money laundering globally. The country was put on an FATF list of jurisdictions with weak measures to combat money laundering and terrorism financing in 2012.

While it was taken off the list in 2015 due to progress in improving regulations, it is yet to become an FATF member.

“Corporations could be used as a means, either directly or indirectly, by a beneficial owner who conducted money laundering and terrorism financing, as long as there is no regulation on it. So it is necessary to regulate the principle of recognising the beneficial owner of a corporation,” a copy of the new regulation shows.

All companies, foundations, limited partnerships and other types of corporations must disclose at least one person as their beneficial owner upon registering for business, the regulation, signed by President Joko “Jokowi” Widodo on March 1, stated.

Those already in operation must also reveal such details to authorities within a year.

Tax authorities can also use the data to identify new tax subjects and to audit tax reports, said Yustinus Prastowo, executive director of Center for Indonesia Taxation Analysis.

The ownership data must be updated at least once every year and is open to public upon request.


Government to reduce income tax rate for SMEs

(ANTARA PHOTO/Oky Lukmansyah)

Jakarta (ANTARA News) – The government will immediately reduce the annual income tax rate for small and medium enterprises (SMEs) from one percent to 0.5 percent.

“The step aims to boost the growth of SMEs. The regulation is under discussion,” Puspita W. Surono, Finance Ministry`s expert staff for tax supervision, noted in a press statement received here on Friday.

Under Government Regulation No. 46 of 2013, SMEs, with an annual turnover threshold of Rp4.8 billion, were required to pay an income tax of one percent.

The government will immediately revise the related regulations.

“This is the government`s commitment to developing SMEs. The tax should support SMEs through a light tariff,” Surono stated.

The Indonesian government is mulling over lowering the amount of tax on SMEs to 0.5 percent, from one percent, as of late March 2018, President Joko Widodo earlier stated.

“I have, in fact, proposed 0.25 percent, but the finance minister rejected it. If the decline is that far, it will have an impact on the state revenues,” President Joko Widodo had noted while addressing the opening of a meeting of the plenary council II and meeting of the Indonesian Young Businessmen Association leadership of 2018 in Tangerang, west of Jakarta, on Wednesday (Mar 7).

The president believes that spatial changes in the global economy had created opportunities for further boosting the nation`s economic conditions.

He has forecast that several food and beverage manufacturers as well as lifestyle industries will have brighter prospects in the global market.

“I think that such businesses will grow well in future. I have seen for myself food stalls and restaurants in several countries, which I think will grow at a faster pace,” he pointed out.

He also opined that digital application-based start-ups, particularly those engaged in sociopreneurship, will also grow rapidly.

Indonesia also has several industries operating in the handicraft sector that are known for their creativity, he added.


Editor: Heru Purwanto


Indonesia ranked second among most attractive investors: Jokowi

Jakarta (ANTARA News) – President Joko Widodo (Jokowi) has stated that according to US News and World Report survey results, Indonesia was in the second place among the world`s two most attractive countries for investment destination.

“Two weeks ago, the US News and World Report magazine in the United States conducted an international survey on the most interesting countries, and Indonesia was ranked second in the world,” the president stated, in the presence of general bank leaders of Indonesia who gathered at the State Palace here, on Thursday.

Jokowi noted that the survey method was conducted by the US magazine by interviewing 21 thousand respondents to make a ranking and selecting six thousand executive decision-making respondents.

“I learned one thing that the investment is made due to the trend in the targeted country,” he remarked.

The head of state revealed that the criterion for the investment was the trend and not the condition.

“They (investors) know when the country is going to fix certain things that are not ideal yet, and so they target it. It will not work if the ideal country has a declined trend,” he stated.

The president believed that Indonesia would be trusted more by international investors because of the improved trend experienced in the country.

“Perhaps, the improvement in the trend is slow, but it is consistent,” Jokowi, accompanied by Coordinating Minister for the Economic Affairs Darmin Nasution, Finance Minister Sri Mulyani, and Head of Financial Services Authority (OJK) Wimboh Santoso, explained at the meeting with the leaders of commercial banks in Indonesia.

Referring to the issue, the president asked Nasution to improve the ranking of ease of doing business in Indonesia, which was stood at 72 last year.

“I believe the rank will be below 60; however, it is not possible to get a rank below 50. I wish it can be applied due to the minister`s certainty,” he added.

However, the trust of conducting investment in Indonesia has improved, which can be seen from Standard and poor`s Rating.

Fitch rating, which has increased from BBB- to BBB, is a mark of international trust in Indonesia, Jokowi concluded.

Reported by Joko Susilo

Editor: Heru Purwanto


Investor protection fund Rp307.11 billion

Jakarta (ANTARA News) – Until February 2018 the Securities Investor Protection Fund (SIPF) has collected a protection fund for Indonesian capital market investors of Rp307.11 billion (about US$22,357,608).

“The protection fund consists of investor protection fund amounting to Rp157.11 billion and investor compensation reserve valued at Rp150 billion,” Indonesia SIPF`s President Director Ignatius Girendroheru said in an official statement here on Wednesday.

He added that the investor protection fund was a set of funds which was established under the rules of the Financial Services Authority (OJK) to protect investors in capital market from loss of assets.

Meanwhile, reserve compensation fund is fund belonging to Self-Regulatory Organization (SRO) which is placed in SIPF Indonesia as a reserve fund. This fund is used if the investor protection fund is insufficient to replace claims for loss of investor assets which is kept in securities companies and custodian banks.

“As of February 2018, the value of investor protection fund has grown by 12.88 percent year on year. The growth of value is from the annual fee of members consisting of 105 securities companies and 19 custodian banks,” he noted.

Ignatius pointed out that the total amount of investor protection fund members` due in 2018 was Rp17.07 billion (about US$1,242,696). This amount is higher than that in the previous year which amounted to Rp13.42 billion. The increase of investor protection fund also came from the investment of the fund which reached Rp7.47 billion yoy.

Meanwhile, Indonesia SIPF`s Director Widodo added that the total value of investor assets in the stock market under SIPF`s protection until the end of February 2018 has reached Rp4,491.6 trillion (about US$326,988,480). The amount increased by Rp200.06 trillion or grew 4.66 percent year to date.

According to him, the increase in asset value was due to several factors, including the strengthening of the stock market which was reflected by the growth of composite stock price index (IHSG) of 3.80 percent during that period. Another factor is corporate activities of issuing initial public offering (IPO) or corporate bonds.

“Up to the end of February 2018 there were two companies conducting IPOs with a total value of Rp201.6 billion, seven institutions issued 23 bond series with total emission value of Rp18.57 trillion, and 10 series of Government Securities (SBN) issuance with a value of Rp42,57 trillion,” he explained.

Meanwhile, the number of investors protected by Indonesia SIPF until February 2018 is 794,997 investors based on the number of securities sub accounts (SRE) in PT Kustodian Sentral Efek Indonesia (KSEI).

“The number of investors protected by Indonesia SIPF increased by 32,185 SRE or grew by 4.22 percent,” Widodo noted


Editor: Heru Purwanto


Indonesia to offer more interesting tax incentives for investors

Jakarta (ANTARA News) – The Indonesian government will offer more interesting tax incentives than other ASEAN countries, to lure more investment inflow, Finance Minister Sri Mulyani Indrawati stated.

“We have done a benchmarking and in terms of allowance and holiday, our offers will be much better than Thailand, Malaysia, Vietnam, and Philippines,” she noted here on Tuesday.

The incentives are made to finalize all investment`s regulation in Indonesia that had been ordered by President Joko Widodo (Jokowi).

The Finance Minister noted the incentive package will be announced by President Jokowi in April this year, in order to give global`s confidence towards economic growth, emerging market, and conducive investment`s climate in Indonesia.

“The government has undeniable commitment to reform investment policy. We will provide ease of doing business, simplification, service, and certainty,” she said.

Indrawati revealed that there would be some radical changes in the incentives` package on tax holiday and tax allowance.

Indonesia will give a certainty of 100 percent tax holiday to replace existing 1 percent rate.

“Every qualified business that gets facility will be receiving a 100 percent tax holiday in a certain of period, which depends on its investment`s values. The bigger, the longer it will get a tax holiday,” she noted.

Indonesia would also offer tax allowance for pioneers category in order to expand its business capacity. This category could also choose to receive tax holiday or tax allowance.

“For small-medium enterprises with under Rp4.8 billion (turnover), we will cut their income tax from 1 percent to 0.5 recent,” said Indrawati.

The low income tax incentives would also be given to research and development investments in order to encourage product innovation.


Editor: Heru Purwanto


Indonesia`s first-quarter growth to exceed 5.01 percent: BI

Jakarta (ANTARA News) – Bank Indonesia (BI) Governor Agus Martowardojo believes that the national economy will grow above 5.01 percent in the first quarter of 2018 or higher than the growth in the same period of 2017.

The first-quarter growth was fueled by the business world`s good performance, coupled with the continuation of government programs as indicated by higher imports of raw materials since December 2017, he said here on Tuesday.

However, the economy in the first quarter of 2018 will grow at a slower pace than in the fourth quarter of 2017 when it expanded by 5.19 percent year-on-year.

“Since December, imports have grown highly, contributed mostly by the import of raw materials. We also predict the balance of trade will still record a deficit,” he said.

Household consumption in the first three months of 2018 also improved as compared to the trend of annual consumption in the first quarter of 2018.

The good household consumption resulted from the distribution of the first phase of village funds.

The amount of village funds that has been disbursed reached Rp2.92 trillion, accounting for 24.4 percent of the ceiling of Rp12 trillion in the initial phase.

The government is expected to allocate Rp60 trillion in village funds this year.

The village funds, coupled with social assistance from the government will sustain the contribution of household consumption to the national economic growth this year, he said.

Household consumption grew 4.9 percent last year, less than the annual trend of 5 percent.

“In general, the sources of our growth rest with investment, exports and consumption,” he added.

Reported by Indra Arief Pribadi

Editor: Heru Purwanto


Indonesia to offer infrastructure projects at IMF-World Bank Meeting

Jakarta Post – Finance Minister Sri Mulyani has said the government would offer investment in infrastructure projects to potential investors from across the world who attend the IMF-World Bank meeting in Bali from Oct. 8 to 14.

She said in Jakarta on Tuesday that a number of countries had expressed interest in financing infrastructure projects in Indonesia.

“From the annual meeting in [last] April in Washington, we have received many offers from financial institutions, particularly for financing infrastructure projects,” said Sri Mulyani after attending a meeting of IMF-World Bank Group 2018 national organizing committee as reported by

She explained that during the Bali meeting, which would be attended by many heads of state, ministers, representatives of various organizations as well as business communities, there would be many side events at which Indonesia could display various investment opportunities, including infrastructure projects.

He believed many investors would be interested in investing in Indonesia, both through the government’s debt papers and through direct investment to the projects offered by the government, particularly because Indonesia has a high investment grade.

Meanwhile, Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan, who is also chairman of the IMF-World Bank Group 2018 national organizing committee, had instructed state-owned infrastructure financing firm PT Sarana Multi Infrastruktur (SMI) to prepare infrastructure projects that could be financed by foreign investors.

He said SMI had to collect data about the projects and the value of each project. (bbn)

VP calls for boosting food productivity to build food resilience

Jakarta (ANTARA News) – Vice President Jusuf Kalla has called for increasing food productivity through technological developments to build food resilience.

“In short, it is how our food security can be maintained, how productivity can be increased through the use of technology and systems, as well as how the environment can be preserved. Unless the environment is preserved, everything will come to a standstill, as all plants need water,” he noted while opening the Jakarta Food Security Summit here on Thursday.

The vice president remarked that one of the problems currently faced by Indonesia was a decline in the area of agricultural land that has caused a food shortage.

Kalla pointed to the decrease in agricultural land due to the rising population in the country, which is estimated to reach 350 million by 2045, and will certainly increase the demand for food.

“It means the demand for food will continue to increase at a rate of about three percent a year. Indonesia must be ready to meet the increasing demand through production with regard to a change in the consumption patterns and depletion of agricultural land owing to urbanization,” he explained.

The vice president also urged to conduct technological research in the field of agriculture in the region to increase food productivity in the midst of the depleting agricultural land.

“Research on rice has been conducted in Subang, rubber research in Sumatra, and sugar research in Pasuruan. Certainly, businessmen must support the research work with regard to boosting productivity, with the hope that the use of technology will help to tackle the challenges posed by the rising population or climate change that may affect food productivity,” he added.

Reported by Fransiska Ninditya

Editor: Heru Purwanto

President underlines improvement of confidence in Indonesia`s economy

Tangerang, Banten (ANTARA News) – President Joko Widodo has underlined improvement of confidence in Indonesia`s economy as three main rating companies have upgraded the country`s sovereign bond ratings to investment grade.

“The improvement of confidence should be utilized,” Joko Widodo said here on Wednesday.

S&P Global Ratings, Moody`s Investors Service and Fitch Ratings have a positive outlook on their assessments of the nation`s debt.

Based on the World Bank`s latest report, Indonesia ranked 72nd out of 190 countries in the 2018 Ease of Doing Business.

This means Indonesia rose by 19 positions from 2017 when Indonesia was ranked 91st

Indonesia`s nominal gross domestic product was at Rp 13,558 trillion, or US$1 trillion in the 2017 exchange rate. This has placed Indonesia in a group of countries with economies above US$1 trillion, like Australia, South Korea and India.

“Indonesia`s economy is in good condition,” the president said.

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 Rp 678.8 trillion.

In addition, the government has 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 earlier 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).


Editor: Heru Purwanto

Indonesia to have world’s best OSS system: Govt

The government claims it will have the best online single submission (OSS) system in the world to help the ease the process of obtaining business licenses.

The OSS Indonesia system, which is expected to launch in April, will be equipped with comprehensive information on investments, according to Edi Putra, head of a special task force operating under the Office of the Coordinating Economic Minister.

“Other countries’ OSS systems only deal with investment. We will include information about licenses, facilities and complaints,” he said, as quoted, adding that OSS Indonesia would also deal with licenses for small businesses.

Edi said the OSS in China, for example, only served online applications for export permits, while Taiwan’s OSS only focused on economic activities in certain areas.

“[Indonesia’s] OSS serves both investments in special economic zones and other areas,” Edi said, adding that several ministries already had their own systems that will be integrated into OSS Indonesia.

The Communications and Information Ministry, for example, has an application system called SiCantik, while the Transportation Ministry operates the National Single Windows (NSW) for aviation businesses.

Ellen Setiadi, the Office of the Coordinating Economic Minister’s undersecretary for industry and commerce coordination, conceded that each ministry had its own investment regulations and online systems.

The government is currently working to synchronize them, she said. “We will deal with the issue,” Ellen added. (bbn)

GMF AeroAsia Offers 2.8bn Shares to Investors

TEMPO.COJakarta Garuda Indonesia subsidiary, Garuda Maintenance Facility AeroAsia or GMF AeroAsia, plans to release more than 2 billion shares. The decision was made at a shareholders’ meeting today, March 6.

GMF AeroAsia president Iwan Joeniarto said the company will issue 2.82 billion new shares, which is 10% of the company’s paid-in capital, through a rights offering. As much as 8.28 percent of the issued shares will be offered to strategic investors, while the remaining 1.72 percent will be offered to employees through a Management and Employee Stock Option Plan (MESOP).

Read: GMF AeroAsia Goes Public

“We will offer the new shares to strategic investors—we have set the criteria for the investors,” Iwan said at the Soekarno-Hatta International Airport’s office area in Tangerang, Tuesday.

GMF AeroAsia wants strategic investors that have strong capital, able to develop the company’s business, and provide added value to the GMF brand. The rights offering will be bundled with a divestment of 10-12 percent stake in GMF AeroAsia’s parent company, Garuda Indonesia Group.

According to Iwan, several investors have stated their interest to buy the shares. He declined to name who these investors are as they are still negotiating.

The rights offering proceeds, Iwan added, will be used to expand GMF AeroAsia‘s business capacity both in Indonesia and abroad. The company has its eyes on at least three new markets this year; Batam, the Middle East, and Australia.

Adam Prireza

Energy Ministry Scraps Hundreds of Troubling Regulations to Boost Investment

Jakarta. Indonesia has revoked 186 regulations in the energy and mineral resources sectors that were considered troubling, as the country seeks to improve the investment climate, while improving the ease of doing business, a minister said.

“This is important, as was instructed by the president; we have to be business- and investment-friendly to increase employment and boost economic growth,” Energy and Mineral Resources Minister, Ignasius Jonan said at a press conference in Jakarta on Monday (05/03).

He explained that 90 general regulations and another 96 related to permits, certification requirements and government recommendation prerequisites for certain projects in the energy and mineral resources sectors have been revoked.

Indonesia seeks to lure $50 billion in investment in the energy and mineral sectors this year alone.

The regulation regulations were applied by different directorate generals in the ministry, including oil and gas, minerals and coal, and new and renewable energy.

The Directorate General of Minerals and Coal saw the revocation of 32 general and 64 permit-related regulations.

Ministry officials will start to inform the relevant stakeholders about the newly scrapped regulations in the coming weeks, Ignasius said.

“We hope the cuts will have a quick impact, so that the business world will experience a better, less bureaucratic service,” he added.

Source: Jakarta Globe

Bali ready to host IMF-WB annual meeting: IMF official

International Monetary Fund (IMF) managing director Christine Lagarde has expressed optimism that Indonesia is ready to host the annual IMF-World Bank meeting in Bali, which will be held from Oct. 12 to 14.

Having visited the venue for the international event in Bali Nusa Dua Convention Center in Bali, Lagarde confirmed the decision to hold the annual meeting in the Island of Gods.

“I’m very happy to confirm that we have made the irrevocable, irresistible decision to confirm the meeting of the IMF and World Bank here in Bali in October,” she said in Bali on Friday.

“I have every confidence that here in Bali, we will have a successful event.”

She added that this year’s annual meeting location had generated a lot of excitement among the members of the IMF and the World Bank.

“There is a lot of excitement in the membership about going to Bali and having our annual meeting in Bali. Unfortunately we will have to do a lot of work, and the delegates will have to avoid the sun, the blue sky and the beautiful vegetation for a few days,” she said, while adding that she hoped after the meeting some of the delegations would prolong their stay to enjoy Indonesia. (bbn)

Four not-to-miss events in East Nusa Tenggara in 2018

This year, the Tourism Ministry has compiled numerous annual events across the archipelago to draw in tons of adventure-seekers and travel enthusiasts like yourself, for a whale of a time.

Nearly every month reveals more highlights, ranging from cultural festivals and art fairs to wildlife appreciation trails, set in one or more of Indonesia’s 34 provinces. East Nusa Tenggara (NTT) is no an exception.

The southernmost province has been steadily winning the hearts of globetrotters worldwide with its lush jungle greenery and iconic pink-sand beaches, not to mention the thriving diversity of its local traditions.

Don’t know where to start? Below are our recommendations:

Komodo Festival

The Komodo National Park, located in Labuan Bajo is ranked as one of the world’s top wildlife tourist destinations. Just recently, Labuan Bajo emerged as runner-up for the world’s best snorkeling spot, beating the popular Raja Ampat Islands.

This brings Labuan Bajo a level above the Galapagos Islands in Ecuador — notable for being home to over 300 species of reptiles. Outdoor enthusiasts from all over the world flock to Komodo National Park to catch a glimpse of one of the world’s largest exotic reptiles in motion. The Komodo Festival was initiated in the hopes of accelerating the development of tourism in Labuan Bajo.

The festival offers a range of activities with the highlight being a series of cultural arts performances featuring various traditional Flores dances unique to West Manggarai. In addition, visitors can look forward to tree planting activities, beach volleyball competitions, craft exhibitions and more.

When: March 5-10

Tour de Flores

Tour de Flores is an annual multi-day cycling event that has boosted tourism in the province tremendously in the past three years. The event might sound familiar as it was inspired by the prominent Tour de France race, which was first organized back in 1903.

Similarly, other Indonesian provinces were also encouraged to establish their own bicycle event adapted from the renowned race, namely Tour de Singkarak in 2009 and Tour de Banyuwangi Ijen in 2012.

With Tour de Flores successfully attracting cyclists from all over the world each year, the event has contributed greatly toward tourism and the economic growth of the island — nicknamed the Land of a Thousand Smiles. The 743-kilometer route is divided into five stages — with participants setting off from Larantuka and venturing through the bucolic outskirts of eastern Flores, before finishing in Labuan Bajo.

Tour de Flores is a challenge for all who are ready for an adrenaline rush.

When: May 6-16

Parade Sandalwood and Ikat Weaving

Following Labuan Bajo is Sumba, an island fast becoming the new prima donna of tourism in the archipelago. Exotic grasslands, rolling hills, horses, unique adatvillages, unspoiled beaches, you name it, Sumba has it all.

Albeit a remote and outlying island, the paradisiac scenery and rustic charm of Sumba continues to enthral both local and international sightseers. In fact, several films and documentaries produced on the island in recent years have successfully sparked immense curiosity and interest in the region’s exoticism.

Boasting varied cultural, historical and natural assets, Sumba indeed holds considerable tourism potential. To strengthen the region’s promotion of tourism, Sumba will host the Wonderful Sumba Island Festival (WSIF) 2018 from Aug. 2-9.

One of the main highlights of the event will be the sandel (sandalwood) horse parade — the sandalwood ponies actually originated from Sumba Island itself. Another featured highlight will be the ikat weaving demonstrations, in which traditional ikat fabric is handwoven by the island’s finest artisan weavers. WSIF will be held in Tambolaka, Southwest Sumba, and will also present various cultural performances, craft exhibitions and culinary bazaars that are not to be missed.

When: Aug. 2-9

Likurai Festival of Timor

This festival aims to showcase traditional music and dances originating from Belu, East Nusa Tenggara. Generally performed by male dancers, the dance involves movements that appear to portray a group of people fighting.

The male dancers often carry swords, whereas female dancers usually bear a small tihar or kendang — a two-headed drum distinctively used by Southeast Asian folk music ensembles.

This upbeat festival is bound to be a spectacular experience like you’ve never had before. The event is expected to promote Indonesia’s unparalleled cultural diversity, and at the same time boost the tourism potential of Belu. (dev/kes)

When: Oct. 27-28

Source: The Jakarta Post

Govt goes all out to double foreign tourist arrivals

Jakarta (ANTARA News) – The government, under President Joko Widodo (Jokowi), is resolved to advance the country`s tourism sector by setting a target to increase foreign tourist arrivals by about 100 percent in five years in 2019.

The administration of Jokowi, who assumed the presidency in Oct 2014, has set the target of annual foreign tourist arrivals at 20 million in 2019 from 9.4 million in 2014.

Starting its tourism program in 2015, Jokowi`s government set a tourist arrival target of 10 million in 2015 and succeeded to exceed the target, with 10.4 million tourists visiting the country that year.

In the following year, it was also successful in exceeding the 12 million target by recording arrivals of 12.02 million tourists based on data of the Tourism Ministry. Yet, the Central Bureau of Statistics noted that the number of foreign tourist arrivals in 2016 was only 11.52 million.

However, last year, the government failed to meet its 15 million visit target as it only booked 14.04 million foreign tourist arrivals.

Now, it has to work hard and make all-out efforts to meet its target of 17 million tourists this year and 20 million next year.

Among the strategy that the government is applying this year includes changing its tourism marketing pattern by applying a market zoning system.

Tourism Minister Arief Yahya previously stated that the country`s tourism marketing is divided into groups, which handled foreign and domestic tourists. Now, the tourism marketing is divided under a regional division based on the main market shares of the countries of origin of the tourists.

Basically, the marketing divisions have two main zones, namely Zone I, which covers Indonesia, Asean, Australia, and Oceania; and Zone II, which consists of Asia, America, and Europe.

“The new marketing strategy is divided by regions. For example, the deputy for marketing development of Zone I will handle Indonesia and neighboring countries (Asean), Australia, and Oceania. The others focus on other major foreign tourist markets, namely Europe, China, and India,” Yahya was quoted as saying by early this month (Feb 2).

Several markets, such as Europe, India, and China, have recorded high growth, and the Tourism Ministry should give major attention to them in preparing a marketing strategy. Through organizational restructuring, the minister expects that his ministry will become more focused on tourists. It must be more sensitive in understanding the needs of tourists and be more adaptive to the conditions in developing tourism products to meet the needs of tourists.

This year, the Ministry of Tourism is targeting nine main markets, namely China, Europe (UK, Germany France, Netherlands, and Russia), Singapore, Australia, Malaysia, India, Japan, Korea, and the Middle East.

Yahya explained that these countries are made the target based on their sizes, sustainability (growth), and spending (consumption) over the past year.

The increase in Chinese tourists to Indonesia is recorded at 30 percent, Australia at about 11 percent, India (quite high) at 45 percent, and Europe at 15.2 percent in the January-September 2017 period.

Minister Yahya said that tourism is an industry that can easily be developed but has a big potential to improve the welfare of the people. “Tourism is the most inexpensive and easy industry to improve the welfare of the people,” Yahya stated, in his speech at the opening ceremony of the 16th Glamorous Cultural Charm Festival of Garut District, West Java, on Wednesday (Feb 22).

For that, Yahya asked related parties to focus on improving the tourism sector for the welfare of the local community. Regions focusing on tourism, such as Bali, have higher per capita income than areas that do not focus on tourism development.

“In addition to high per capita income, the index of happiness is also high,” he remarked. For Indonesia, tourism has become the second largest foreign exchange earner, which beats oil, gas, and coal. The first position is occupied by palm oil commodity.

Thus, tourism can become the largest foreign exchange earner for the country in future. After all, the Indonesian government is increasingly active in improving and developing tourism in all potential regions in Indonesia.

Yahya appreciated the implementation of the 16th Glamorous Cultural Charm Festival of Garut, which carries the theme “Gawe Rancage Mawa Karaharjaan” (Work Towards Prosperity).

“This theme is very appropriate, with the aim of developing tourism to improve the welfare of the community,” he explained.

The Ministry of Tourism targeted the arrival of 17 million foreign tourists and 270 million domestic visitors in 2018.

In the meantime, the Central Bureau of Statistics (BPS) noted that the number of foreign tourist arrivals in Indonesia in 2017 had reached 14.04 million, up 21.88 percent compared with 11.52 million in 2016.

Head of BPS Suhariyanto noted at a press conference in Jakarta recently that of the 14.04 million foreign tourists, 11.79 million had entered through 19 main entry gates, and 2.25 million visited the country through the entry gates other than the 19 main entrances.

Based on BPS` records, the number of foreign tourist arrivals in 2014 had reached 9.43 million and rose to 10.23 million visits in 2015, while in 2016, the country had received 14.04 million visitors.

Meanwhile, the room occupancy rate of star-rated hotels in Indonesia in December 2017 had reached an average of 59.53 points, or an increase of 3.03 percent, compared with 56.50 percent in December 2016.

Similarly, as compared to the occupancy rate of star-rated hotels in December 2017, the figure increased by 1.65 points than November 2017.

The average length of stay of foreign and Indonesian guests in star-rated hotels in December 2017 was recorded at 1.72 days, an increase of 0.02 points compared to December 2016.


Editor: Heru Purwanto


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)

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)