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

Category: Economic

Indonesia, Korea target $30 million in bilateral trade

Indonesia and South Korea have set a target of increasing bilateral trade to US$30 million by 2020, President Joko “Jokowi” Widodo said in Seoul on Monday.

The target is expected to bolster bilateral ties with South Korea in honor of the 45th anniversary of diplomatic relations between the two countries.

“Amid [financial] uncertainties around the world, Indonesia and South Korea manage to maintain a strong [diplomatic] relationship. Our trade in 2017 increased by 20 percent,” Jokowi said during his third state visit to Seoul on Monday.

Jokowi said he was optimistic about achieving the goal since investors and businesspeople in South Korea responded positively to the prospect of increased bilateral trade.

The Indonesian leader has engaged in talks with businesspeople in Seoul in his bid to improve South Korean investment in Indonesia.

“In the meetings, they [the businesspeople] expressed appreciation for Indonesia, which has improved the investment climate for foreign investors,” said Foreign Minister Retno LP Marsudi, who accompanied Jokowi in the meetings.

The business leaders also reiterated their commitment to help Indonesia improve its domestic industries and catch up with foreign players. (rfa)

Source: The Jakarta Post

Indonesia targets $10b trade with Vietnam by 2020: Jokowi

The government aims to increase trade with Vietnam to US$10 billion annually from $6.8 billion, last year, with President Joko “Jokowi” Widodo on a visit to the country.

Jokowi arrived in Hanoi on Tuesday after concluding his visit to South Korea.

“In the last three years, our trade with Vietnam had seen an increase to $6.8 billion. We hope that in 2020, our trade will reach $10 billion,” said Jokowi in a statement on Wednesday.

Meanwhile, during Jokowi’s visit to South Korea, Indonesia signed agreements worth 5.76 billion. The President targeted $30 billion trade with the country by 2020.

While meeting with Vietnamese President Vietnam Trần Đại Quang in Hanoi on Tuesday, Jokowi said he had called on the Vietnamese government to eliminate trade barriers.

“I have asked President Trần Đại Quang to eliminate trade barriers, including those for automotive products from Indonesia,” Jokowi said, adding that during the meeting, he had also expressed the wish of Indonesian investors to develop their businesses in Vietnam.

During Jokowi’s visit, Indonesia and Vietnam signed a joint communique on fighting illegal, unreported and unregulated (IUU) fishing. The two leaders also agreed to intensify negotiations on an exclusive economic zone. (bbn)

Source: The Jakarta Post

Solar energy gradually replacing fossil fuel in Karimunjawa

Solar energy is gradually replacing fossil fuel in the Central Java islands of Karimunjawa, occupied by about 8,000 people, due to the operation of solar photovoltaic (Solar PV) power plants starting this August, an official has said.

Karimunjawa district head Saptwagus Karnanejeng Ramadi said on Tuesday that starting Aug. 1, three outer islands – Parang, Genting and Nyamuk – have been fully electrified with solar PV power plants.

“After we held a month-long test in July, now the three islands can be electrified for 24 hours with the capacity of 1,500 watt hour [Wh],” he said adding that previously, the region had six hours of electricity per day.

The Karimunjawa Islands – three hours by boats from Jepara regency – used to require at least 35,000 liters of non-subsidized diesel fuel per month Rp 11,550 (80 US cents) per liter to fuel power plants in the district, including its three surrounding islands.

Two years ago, state-owned electricity firm PLN took over the diesel-based power plants, after which residents had to pay the same electricity rate as the people in Java because of the government’s one-price policy.

However, for the three islands, Karimunjawa district still has to allocate around 6,000 liters of diesel fuel per month.

“But the consumption [of diesel fuel] may go down to zero because of the three Solar PV power plants. The diesel fuel will only be used as backup,” said Karimunjawa district secretary Nor Soleh.

The three Solar PV power plants are part of phase 3 ( ESP3 ) of Denmark’s environmental support program worth Rp 26 billion, whose goal is to promote renewable energy in Indonesia. (bbn)

Source: The Jakarta Post

Central Java seeks 21% of renewable energy contribution

The Central Java administration has targeted to meet 21 percent of the province’s total energy demand with renewable energy by 2025 – lower than the national target of 23 percent.

Renewably energy currently contributes 10 percent to the province’s total energy demand, according to Imam Nugroho, head of the electricity division at the Energy and Mineral Resources Ministry’s Central Java office.

“We are in the process of issuing a bylaw that will be in accordance with the national target of 23 percent by 2025,” he said.

Four renewable energy projects started five years ago in Central Java, involving the conversion of landfill methane gas to energy in Semarang, solar photovoltaic in Karimun Jawa Island, refuse-derived fuel used by the cement industry in Cilacap and waste-water treatment to energy in Klaten.

All projects are under a partnership agreement with the Danish government, with a total investment of Rp 180 billion (US$12.4 million) through the Environmental Support Program ( ESP3 ).

Emil Salim, senior program officer from the Royal Danish Embassy in Jakarta, said all four projects are scheduled to fully operate no later than late 2018 and would be handed over to the government.

In addition to the four projects, a geothermal-based power plant is being constructed in Purwokerto, Baturaden district, with a capacity of around 75 megawatt (MW).

“We also have a 50-MW solar energy potential in Boyolali that has attracted China’s developer,” he said, adding that talks continue with a developer on the cost of the project. (bbn)

Source: The Jakarta Post

Indonesia, India sign business-to-business agreement on palm oil

Indonesian and Indian businesspeople signed on Monday a business-to-business agreement on palm oil to build communications between producers and consumers of the commodity.

The agreement, a memorandum of understanding (MoU) on sustainable palm oil production, was signed by the Indonesian Palm Oil Board (DMSI), the Solvent Extractors Association (SEA) of India and civil society organization Solidaridad Network Asia.

“India uses our palm oil products a lot so we need to build communications not only between the two governments but also between associations,” Coordinating Economic Minister Darmin Nasution said during the MoU signing at the Office of the Coordinating Economic Minister in Jakarta.

He said a network of associations could help the government campaign about the use of palm oil in India and address misconceptions about the commodity.

“Because of the lower price, consumers in India consider palm oil a low-quality product, which is not true. Because palm oil yield is three to four times higher than other [vegetable] oils, we can provide a lower price,” Darmin said.

SEA president Atul Chaturverdi, who promised to campaign for the sustainable production of Indonesian palm oil, said the MoU would allow for better cooperation between Indian and Indonesian palm oil stakeholders.

“This MoU can be a way forward to create a sustainable model for Indonesia, which is good for smallholders as well as consumers of palm oil in India,” he said. (bbn)

Source: The Jakarta Post

Garuda Indonesia eyes Paris as new international route

The European Union’s ban on Indonesian airlines was lifted on June 14, allowing local carriers to fly directly to Europe.

In response to the good news, reported that national flag carrier Garuda Indonesia was considering opening a new route to Paris, France.

The airline’s cargo and international trade director, Sigit Muhartono, said on Wednesday that following the announcement, the company had begun assessing several destinations in Europe, including Paris.

Based on the research, Garuda Indonesia had found that Paris’ Charles de Gaulle Airport was among popular entrances to Europe, besides London and Amsterdam.

In addition to France, Garuda Indonesia is also considering opening a new route to Germany. However, Paris is still a priority.

Sigit also said if the company planned it aggressively, the route could be opened by the end of this year. (jes/kes)

Source: The Jakarta Post

BPS records US$1.74 billion trade surplus in June

The Central Statistics Agency (BPS) announced on Monday that Indonesia had recorded a trade surplus of US$1.74 billion in June, overturning the $1.45 billion trade deficit of the previous month.

Exports in June rose 11.47 percent year-on-year (yoy) to $13 billion, driven in part by increased exports in fuel and electrical machinery as well as vehicles and automotive spare parts.

Meanwhile, imports grew 12.66 percent yoy to $11.26 billion, with a 14.56 percent yoy increase in raw materials and a 19.94 percent yoy increase in capital goods.

June’s figure surpassed Bank Indonesia’s (BI) estimated trade surplus of close to $1 billion, on the assumption that seasonal factors that dominated imports the previous month would not occur in June.

Despite recording positive growth, trade still posted negative growth with June imports contracting by 36.27 percent month-to-month (mtm) and exports also contracting by 19.18 percent mtm.

BPS head Suhariyanto said the contractions were due to seasonal factors, particularly with industries having fewer working days in June because of the 10-day extended Idul Fitri holiday from June 11 to 20.

“The decrease in exports in June, which coincided with Idul Fitri, fit the usual pattern we have observed during Idul Fitri,” he said in Jakarta on Monday.

Indonesia, however, still posted a deficit of$1.02 billion in the first semester, compared to a $7.66 billion surplus in the same period last year. (bbn)

Source: The Jakarta Post

Jokowi inaugurates first Indonesian wind farm in Sulawesi

President Joko “Jokowi” Widodo on Monday inaugurated the 100-hectare Sidrap Wind Farm in Sindereng Rappang regency, South Sulawesi, the first wind power project in the country and the largest of its kind in Southeast Asia.

The Sidrap Wind Farm, which will produce 75 megawatts (MW) of electricity and can power up to 70,000 households, is part of the 35,000 MW electricity program.

“Seeing that all the blades of the wind turbines in Sidrap rotate, it means there is enough wind here. I feel like I’m in the Netherlands, although I’m in Sidrap,” said President Jokowi in his speech.

The wind farm project was constructed by UPC Renewables in collaboration with a local firm, with a total investment of US$150 million.

The electricity produced from the farm will be channeled to the networks of state-owned electricity company PLN and will be distributed to South Sulawesi, Southeast Sulawesi and West Sulawesi.

The President also said a similar project was being developed in Jeneponto, the construction of which is 80 percent complete. He added that another project was being developed in Tanah Laut, East Kalimantan, while another is set to be developed in Sukabumi, West Java.

The President said Indonesia was rich in sources of renewable energy, including geothermal and solar energy.

He added that power plants that sourced renewable resources had a total capacity of 2,000 MW and would continue to be developed to reach the target of a 23 percent contribution of renewable energy to the country’s electricity production by 2020. (bbn)

Source: The Jakarta Post

Japanese investors express interest during Kalla visit

Vice President Jusuf Kalla has said a number of Japanese companies and banks have expressed interest in investing in Indonesia.

The interest was expressed on the sidelines of the International Conference on The Future of Asia held from June 10 to 13 in Tokyo.

“Almost all companies expressed a desire to increase their investments, from banking to manufacturing industries,” Kalla said, as quoted by on Wednesday.

During the conference, Kalla met with, among others, representatives of MUFG Bank Ltd and Marubeni Corporation as well as Japan-Indonesia Association chairman Yasuo Fukuda.

Kalla said he told Japanese businesspeople that the automotive industry invested significant funds in Indonesia and claimed that several companies wanted to invest in this sector.

The banking industry was also attractive to Japanese investors, said Kalla.

Japanese interest in the Indonesian banking sector has been shown by the plans of major Japanese lenders to acquire two Indonesian banks.

Last year, Sumitomo Mitsui Banking Corporation announced it would raise its stake to a majority in PT Bank Tabungan Pensiunan Negara Tbk (BTPN). Japan’s Mitsubishi UFJ Financial Group has also announced its plan to buy 73.8 percent of Bank Danamon’s shares.

Many potential Japanese investors also inquired about infrastructure projects under development by the government, said Kalla, adding that these investors also asked what investment was needed by the country.

Japanese companies are currently involved in several major projects in Indonesia, including the mass rapid transit (MRT) project in Jakarta, the Patimban Port project in West Java and the Jakarta-Surabaya high-speed train project. (ris/bbn).

Source: The Jakarta Post

EU lifts ban on all Indonesian airlines

Indonesia has been given an Idul Fitri gift as the European Union ban on Indonesian airlines was lifted a day before the festivities.

The EU’s executive body, the European Commission, cleared all Indonesian carriers from the EU Air Safety List, which prohibits a number of airlines from operating within EU member states.

“Following today’s update, all airlines certified in Indonesia are cleared from the list; following further improvements to the aviation safety situation that was ascertained in the country,” said the EU press release received by The Jakarta Post on Thursday.

The ban was revoked after a positive assessment of Indonesia’s flight safety by the International Civil Aviation Organization in October last year and the EU aviation audit agency in March this year, according to a press statement by the Foreign Ministry also on Thursday.

“[It is] the most beautiful gift for Indonesia this Idul Fitri,” said Foreign Minister Retno LP Marsudi on her official Instagram @retno_marsudi. “The long fight eventually delivered a satisfying result.”

Source: The Jakarta Post

Wika Signs $830m Construction Project in the Philippines

Wijaya Karya has signed up for a $834 million expressway project in the Philippines, marking the state-controlled construction company’s latest expansion in the Southeast Asia country.

The company, better known as Wika, signed a memorandum of understanding with the Citra Consortium, which holds toll-road concessions. The consortium includes Indonesian contractors Citra Marga Nusaphala Persada, Citra Persada Infrastruktur and a local company, CLGP Philippine Holdings.

Wika will work on the Manila-Taguig Expressway, comprising an 18.18-kilometer overpass alongside the Pasig River. The toll road will serve as a link between the third stage of the Metro Manila Skyway and the Metro Manila Expressway that connects Pasig, Makati and Manila.

“We are confident the deal between Wika and Citra Consortium will support the company’s business portfolio improvement in the Philippines,” Wika president director Tumiyana said in a statement on Wednesday (30/05).

In addition to the Manila-Taguig Expressway project, Wika has so far started reconstructing of the Clarin Bridge in Bohol. The bridge, which forms part of the Bohol Circumferential Road, collapsed during a 7.2-magnitude earthquake that struck the area in 2013. Wika teamed up with a local firm, VT Lao Construction, for the 445.8 million-peso ($8.5 million) bridge reconstruction project.

The 104-meter bridge, targeted for completion in October next year, is expected to facilitate access to tourist areas, as well as accelerate the flow of goods and services in Bohol Province.

Destiawan Soewardjono, operations director at Wika, said the company is expecting more overseas projects in the future.

“Our selection as contractors in infrastructure projects in several countries, such as the Philippines, Malaysia, Myanmar and East Timor, shows the quality and competitiveness of Indonesia’s state-owned enterprises are solid,” he said.

The company has set aside Rp 37 trillion ($2.7 billion) for capital expenditure this year, more than triple that of last year. It will use the funds for expansion, including in the areas of industrial estates, power plants and toll roads.

Source: Jakarta Globe

Jokowi, Modi to Discuss Economy, Maritime and Indo-Pacific Concept

President Joko “Jokowi” Widodo and India’s Prime Minister Narendra Modi are set to meet on Wednesday (30/05) as part of the latter’s visit to Indonesia, where the two leaders will discuss a range of bilateral issues, including the economy, maritime and the Indo-Pacific concept.

“[They will discuss] issues relating to maritime, economic development … that will certainly be part of the dialogue, and also people to people, because that is a very strong pillar of India-Indonesia relations,” India’s ambassador to Indonesia, Pradeep Kumar Rawat, said during a press conference in Jakarta on Monday.

Jokowi and Modi will also address defense, security, infrastructure and tourism during their meeting, he added.

Modi’s visit to Indonesia follows Jokowi’s visit to India in late January, when he attended the Asean-India Commemorative Summit and India’s Republic Day Parade.

Key Cooperation Areas

Indonesia and India will celebrate their 70th year of diplomatic relations in 2019, and seem set to strengthen ties from the foundations of their strategic partnership, which was established in 2005.

Despite launching negotiations for a comprehensive economic cooperation agreement in 2011, the two countries have yet to reach a conclusion.

According to Rawat, countries in the region, including India, have been more concerned with finalizing the regional comprehensive economic partnership, (RCEP), which is expected to be ready this year.

RCEP consists of all 10 Asean member states, and six of Asean’s FTA partners: Australia, China, India, Japan, South Korea and New Zealand.

RCEP states represent almost half of the world’s population, 31.6 percent of global output and about 28.5 percent of global trade, with the partnership expected to support job creation and promote innovation, among other things.

However, the lack of bilateral economic agreements have not slowed down their trading relations.

Indonesia is India’s largest trading partner in Southeast Asia, with total bilateral trade valued at over $18 billion in 2017. India is Indonesia’s top export market for palm oil and the second biggest importer of Indonesian coal.

Rawat said that Indonesia-India trade relations are closely linked to its ties as close maritime neighbors.

“Certainly the maritime dimension of our engagement will grow. We are in global trade, and a large part of trade goes through these maritime routes,” Rawat told reporters.

Furthermore, Indonesia and India have agreed to step up relations across various key areas in recent months, including in security and maritime, as a result of meetings held at the ministerial level, including that between Foreign Minister Retno Marsudi and Chief Security Minister Wiranto, with their respective Indian counterparts.

In 2017, Indonesia welcomed more than 480,000 tourists from India. This year, the Ministry of Tourism has set an ambitious target of attracting around 700,000 Indian travelers to the archipelago.

As part of an effort to reach this goal, national flag carrier Garuda Indonesia launched a direct flight from Mumbai, India, to Denpasar, Bali, on Apr. 23.

Indo-Pacific Concept

Rawat said Jokowi and Modi will also discuss the Indo-Pacific concept when they meet this week, a topic they covered during their last meeting and is part of both countries’ foreign policy priorities this year.

This foreign policy orientation has also been taken up by a number of other countries, including the United States, Australia and Japan.

According to Rawat, Indonesia and India share a similar views regarding the concept, especially given their commonalities and shared perspectives on values of democracy, transparency and rules-based systems.

Indonesia and India are members of East Asian Summit (EAS), which consists of 18 countries and which was established in 2005.

Source: Jakarta Globe

Trainmaker signs more purchase agreements with Philippines

After signing an agreement in January, state-owned train manufacturer PT Industri Kereta Api (INKA) signed on Monday another purchase agreement with Philippine National Railways (PNR).

The agreement consists of the purchase of four sets of diesel-powered trains with a value of US$21.4 million, as well as the purchase of three locomotives and 15 passenger trains with a total value of $26.1 million.

The trains will be delivered gradually from Jan. 18 until May 27, 2020.

Previously, INKA and PNR also signed a purchase agreement for two sets of diesel-powered trains in January with a contract value of $9.7 million.

“The [State-Owned Enterprises] Ministry will continue to support PT INKA in its expansion,” said Minister Rini Soemarno in a statement recently.

Previously, INKA also announced a deal worth Rp 1.3 trillion (US$92 million) to supply locomotives to Zambia, marking its first foray into the largely untapped African market.

It is also looking at the possibility of exporting to other African countries, including Nigeria, Sudan, Mozambique and Egypt, as well as in Asian markets like Bangladesh, Malaysia, Thailand, Singapore and Australia, among others. (dwa)

Source: The Jakarta Post

Jokowi launches airport train in West Sumatra

President Joko “Jokowi” Widodo launched the Minangkabau Ekspres Train, an airport train connecting Padang, the capital city of West Sumatra, to the province’s Minangkabau International Airport on Monday.

The 200-seat train is the third in the country after the launch of airport trains connecting Soekarno-Hatta International Airport in Tangerang, Banten, to Jakarta and another train connecting Kualanamu International Airport to Medan in North Sumatra.

The Minangkabau Ekspres will run five times from Simpang Haru Station in Padang to the airport and back.

The train can transport up to 393 passengers per trip. A ticket costs Rp 10,000 (70 US cents) for a full trip from Padang to the airport, but passengers only need to pay Rp 5,000 if they embark on a short trip from Padang Station to Tabing Station.

The airport’s train station is connected to a corridor that plane passengers must use to reach the airport’s departure lounge.

Jokowi was accompanied by First Lady Iriana at the launch,

The president’s entourage included Cabinet Secretary Pramono Anung, Transportation Minister Budi Karya Sumadi, Public Works and Housing Minister Basuki Hadumuljono and Education and Culture Minister Muhadjir Effendy, West Sumatra Governor Irwan Prayitno and Deputy Energy and Mineral Resources Minister Arcandra Tahar. (bbn)

Source: The Jakarta Post

Indonesia, South Africa organize forum to boost economic ties

The Indonesian Trade Promotion Center (ITPC) Johannesburg, in cooperation with the Indonesian Consulate General in Cape Town, has organized the Indonesia-South Africa business forum in Cape Town, South Africa, to boost economic relations between the two countries.

ITPC Johannesburg head Pontas Parsaoran Tobing said the business forum was the first promotional activity implemented through one-on-one business meetings in which businesspeople could exchange information about business opportunities.

“One-on-one business meetings are an effective way to strengthen cooperation among businesspeople,” Pontas said in a written statement received by The Jakarta Post on Friday, adding that the ITPC was ready to help Indonesian businesspeople explore business opportunities in the country.

The Indonesian consul general in Cape Town, Khrisna Adi Poetranto, led the business forum, which was attended by buyers and South African Parliament member Shahid Esau.

During the event, Khrisna also promoted the 33rd Trade Expo Indonesia, dubbed the largest trade exhibition in Indonesia. It will be held from Oct. 4 to 28 at the Indonesia Convention Exhibition (ICE) in BSD City, Tangerang, Banten.

Indonesian-South African trade was recorded at US$1.2 billion in 2017, a 20 percent increase from the trade value in 2016.

Indonesian exports to the country decreased by 3.2 percent to $704 million in 2017 from $728 million in 2016, while Indonesian imports from the country increased to $492 million in 2017 from $291 million in the previous year. (bbn)

Source: The Jakarta Post

West Java’s Kertajati Airport starts operation on Thursday

Kertajati International Airport in Majalengka, West Java, will officially start its operation as an international airport on Thursday, Transportation Minister Budi Karya Sumadi said in Jakarta on Tuesday.

“The airport was opened as an international airport [on Thursday],” said Budi after a meeting with Coordinating Maritime Affairs Minister Luhut Pandjaitan at Luhut’s office, adding that certificates and other operational permits had been issued by the relevant agencies.

“[All licenses] have been completed. [June] 24 is its official operation day as an international airport. In fact, we’re allowed to operate today,” the minister said, adding that the soft launching of the airport would be implemented in the near future.

However, Budi said the airport would be used as an embarkation point for the haj pilgrimage in August because its runway was not long enough to carry wide-bodied aircraft, which are mostly used for long-haul flights to Mecca. The airport only has a 2,600 meter-long runway, while wide-bodied aircraft such as Boeing 777s and Airbus A330s need at least a 3,000 m-long runway.

The minister explained that the “historical landing” would be marked by a flight from Jakarta to Kertajati, which would be noted as a maiden flight to the airport.

He also said the airport was expected to serve people who wanted to fly from West Java cities and towns to their hometowns to celebrate the Idul Fitri holiday in June, but it depended on the airlines.

“We want to do so, but we have to talk to the airlines. They have preference on which airport they would fly from. From the airport’s side, starting from May 24, it is ready for operation,” he added.

Kertajati International Airport is located some 200 kilometers from Jakarta. Its development cost an estimated Rp 2.1 trillion (US$153.7 million). Combined with its operational costs, total investment in the new airport will be about Rp 2.6 trillion.

The airport’s developer, PT Bandara Internasional Jawa Barat (BIJB), is owned by West Java province. (bbn)

Source: The Jakarta Post

Indonesia to open 8 more ports for international trade

Indonesia is set to open eight more seaports for international trade to help its  products become more competitive in the international market, an official has said.

The Transportation Ministry’s organization and human relations affairs division head, Gus Rional, said in Jakarta on Sunday that the opening of more seaports for international trade would cut transportation costs for industry.

“The seaports will help boost export and import activities,” said Gus as reported by

The eight ports are located in Muara Sabak, Jambi; Ciwandan, Banten; Cigading, Banten; Merak Mas, Banten; Belinyu, Bangka Belitung; Tanjung Pandang, Bangka Belitung; and Sorong in Papua.

Indonesia previously had 141 ports for international trade – 89 fully operated international seaports and 52 special terminals. (bbn)

Source: The Jakarta Post

Indonesia’s economy expands 5.06% in first quarter

Indonesia’s economy expanded by 5.06 percent year-on-year (yoy) during the first quarter this year thanks to growth in investments and consumer spending.

Data from the Central Statistics Agency (BPS) show that the first quarter figure at 5.06 percent was a slight increase on the 5.01 percent that was recorded over the same period last year.

“This figure is better than the first quarter of 2017 […] we hope that the figure will continue to increase in the next quarters because there are events that can spur economic growth such as Ramadhan and Idul Fitri, the regional elections and the Asian Games,” BPS head Suhariyanto said during a press release on Monday.

Consumer spending, which accounts for more than half of GDP, was recorded at 4.95 percent during the first quarter this year.

Investments grew by 7.95 yoy percent during the first three months of this year, contributing 2.54 percent toward the overall gross domestic product (GDP).

Exports also grew 6.17 percent yoy during the first quarter this year, while the growth of imports was higher at 12.75 percent.

Brunei agrees to Pindad weapons, APC purchase: Jokowi

President Joko a�?Jokowia�? Widodo has said that Brunei Darussalam agreed to purchasing Anoa armored personnel carrier (APC) and other military equipmentA�fromA�state-owned weapons manufacturer PT Pindad.

The agreement was made on Thursday during a meeting between Jokowi and visiting Brunei Sultan Hassanal Bolkiah at Bogor Palace in West Java.

After their meeting, the two leaders headed to the Indonesian Military’s (TNI) headquarters in Cilangkap, East Jakarta.

Jokowi said that he also offeredA�the Brunei Sultan aircraft from state-owned aircraft maker PT DI. a�?But the deal that has been reached is that Brunei will buy weapons and Anoa from Pindad,a�? the President said on Thursday as reportd byA�

He did not provide details on the weapons deal and how many Anoa vehiclesA�the neighboring country would purchase.

While at TNI headquarters, Jokowi and BolkiahA�attended a weapons demonstration and visited an exhibition of the primary weaponsA�defense system.

During their meeting, the leaders discussed a variety ofA�issues, including better protection for migrant workers. According to government data, 80,000 Indonesian migrant workers are in Brunei, which has 400,000 total citizens.

Foreign Minister Retno Marsudi announced on Thursday that the two leadersa�� agreement would be draftedA�into a memorandum of understanding that would includeA�regulations to ensure robust protection for the placement of Indonesian migrant workers in Brunei. (bbn)

Source: The Jakarta Post

Collections for Ramadan and Idul Fitri Featured at Muffest 2018

Ramadan is just around the corner. Within a couple of weeks, Muslims will fast from dawn to dusk, and then dine together with family and friends.

It is also a season to look good and stylish.

To celebrate the coming of Ramadan and Idul Fitri, a number of Indonesian designers and local brands launched their festive collections during the recent Muslim Fashion Festival (Muffest) 2018.

Here are some of the most interesting highlights.

Barli Pret-a-Porter

Designer Barli Asmara introduced his new label Barli Prêt-a-Porter.

“[Barli Prêt-a-Porter] is my new ready-to-wear line,” the designer said before his show at Muffest on Saturday (21/04). “It’s made of easy-to-wear and easy-to-mix-and-match pieces that are light and comfortable to wear all day long.”

In a fashion show sponsored by Wardah Cosmetics, Barli presented “Tsubarashi,” the debut collection of his new label.

“I was inspired by the Shibori technique from Japan,” the 40-year-old designer said.

For the collection, Barli applied Shibori patterns to silk organza. He then made the lightweight and crisp material into elegant headscarves, pants and structured outerwear.


Kami’s designers, Istafiana Candarini, Nadya Karina and Afina Candarini, were inspired by the freshness of spring in their “Maalia” collection.

“This new collection is totally different from our previous ones,” Nadya Karina, creative director of the brand, said before the show.

Kami’s previous collections generally took on soft pastel hues and earthy tones. This one is entirely white, which is often preferred for Idul Fitri.

The new collection also features more feminine shapes, with cascading ruffles and Swarovski crystals adorning the pieces.

“The collection is designed to make women stand out and look beautiful and special during Ramadan and Hari Raya,” Nadya said.

Khanaan Shamlan Signature Collection

Young designer Khanaan Shamlan presented a festive collection themed “Linea.”

The collection consists of long tunics and robes with unique patterns of fluid lines and tendrils.

“I designed the prints myself,” the designer said. “They are inspired by the gelaran batik motif, which is a variation of lines.”

The 28-year-old designer comes from a family of batik artisans in Pekalongan, Central Java.

The patterns, presented in solid black and white, give a modern and classy look.


Bandung-based Muslim fashion brand Zoya presented a collection titled “Asmaradana.”

“We were inspired by Pupuh Asmarandana when designing the collection,” Ivan Kurniawan, head of research and development of Zoya, said before the show.

Pupuh Asmarandana is an old, traditional song of West Java, which contains advice on love and life.

“It’s a collection full of love and passion,” Ivan said.

The label collaborated with three celebrities, singer Fatin Shidqia Lubis, entrepreneur and celebgram Medina Zein and actress Eksanti, to design the collection.

Fatin produced wearable everyday items in white and soft creamy hues. Pleats, ruffles and asymmetrical hemlines adorn her pieces.

Medina presented glamorous dresses, made of silk organza, decorated with sequins and crystals.

“Each dress is unique … You would look stunning in them dresses during Hari Raya,” Medina said.

Eksanti designed loose-fitted dresses, in accordance with Muslim clothing rules.

“I’ve just started wearing shariah dresses. Therefore, I designed what I would wear myself,” the actress said.

Eksanti’s dresses, with color blocks, floral prints and asymmetrical layers, guarantee a modern and elegant look.

Source: Jakarta Globe

Gov’t to Axe Complicated Regulations to Boost Oil & Gas Investment

President Joko “Jokowi” WidodoA�told the Ministry of Energy and Mineral Resources on Wednesday (02/05) to continue axing several complicated regulations in a bid to accelerate more petroleum investment into Indonesia.

“I told the [Energy Ministry] that our regulations are still not conducive. There are still [many regulations] that are complicated, and require a lot of procedure. The regulations should be axed and simplified. I want to discuss that at this forum, what kind of regulations that still give us a headache,” Jokowi said at the 2018 Indonesian Petroleum Association (IPA) conference at the Jakarta Convention Center on Wednesday.

“We expect to increase [oil and gas] production every year because it has been years that we have not been conducting large-scale oil exploration. Our production keeps declining, and we keep importing oil. That is the expectation,” Jokowi said.

Once a founding member of the Organization of the Petroleum Exporting Countries (OPEC), Indonesia is now only able to produce oil about 800,000 barrels per day (bpd), half of its daily need, and has since relinquished its place in OPEC.

At its peak in 1995, the country was able to produce more than 1.6 million bpd, thanks to massive investments from foreign oil giants.

However, an uncertain regulatory environment and a lack of new investments to find new reserves has turned Indonesia into a net oil importer. International firms such as ConocoPhillips and Chevron have reduced their holdings, and the nation’s overall crude output now stands well below 1 million bpd.

Private investment in the oil and gas sector slumped to a multi-year low of $9.3 billion in 2017, compared to a target of $13.8 billion, according to BMI Research.

The government has been making efforts to eliminate several regulations. According to the Energy and Mineral Resources Ministry, the number of required permits for firms in the oil and gas industry to conduct business has been reduced to only six from a previous 104.

“If [you] cannot speak to the minister, speak directly to me,” Jokowi told the audience consisting of government officials, corporate officials, chief executives and journalists.

Last year, the government introduced its gross split scheme for new oil and gas production sharing contracts, replacing the previous cost recovery scheme, which had been in use for more than 50 years.

Under the cost recovery scheme,A�profit sharing is calculated after contractors deduct production and exploration costs. That requires a lot ofA�supervisionA�and a complicated bureaucracy to avoid accounting mishaps.

Meanwhile, the gross split system is more of an upfront approach, based on the working area and the gross production. The contractor will cover all operation spending, while the government will receive its profit-sharing once per a month.

“By shifting the production sharing from a cost recovery scheme to the current gross split, it shows the government’s significant efforts to show flexibility in an bid to attract more investment,” said Indonesia Petroleum Association president Ronald Gunawan.

“It’s very clear that the Energy and Mineral Resources Ministry has received industry input and strengthened provisions to improve the competitiveness of this scheme,” Chevron IndoAsia business unit director Chuck Taylor said, referring to gross split contracts.

Indonesia announced four winners from five blocks in a direct offer tender on Wednesday, including Lion Energy and units of ENI and Repsol. Interest in Indonesia’s tenders has been tepid, though, and the industry has pointed to more attractive opportunities in other countries.

Investors have also criticized Jakarta’s decision to hand exploration and development rights on expiring oil blocks to Pertamina in compensation for its losses on government-set retail fuel prices.


Jokowi slammed state-owned oil company Pertamina, whom he said had not been invested enough in exploration, stating that the firm has notA�conducted major oil exploration since 1970.

However, the president instructed his cabinet in March this year toA�keepA�fuel prices unchangedA�until the end of next year. That consequently shifted the subsidy burden to Pertamina, which is seeing its cost of importing fuel increase in line with rising global oil prices.

Jokowi issued several reforms in 2014 and 2015 shortly after taking office, when he decided to take the unpopular decision of cutting government fuel spending by more than 90 percentA�to fund infrastructure development across the archipelago.

That decision has served to hamper Pertamina’s performance. According to the Supreme Audit Agency (BPK), which reviewed the government’s financial report in 2016, the stateA�owesA�Pertamina about Rp 22 trillion ($1.57 billion) for subsidized fuel. Askolani, a director general of budgeting at the Ministry of Finance, said the government has set aside part of its budget to pay back half of its debt to Pertamina.

Pertamina Response

Pertamina senior vice president for upstream business development Denny Tampubolon said the company has been making efforts to conduct drilling exploration in Indonesia.

Denny said the exploration is done by conducting extensive geological surveys and drilling in high-risk wells, adding that oil discoveries are often limited because of mature wells.

“However, we are still trying to drill in those maturing wells as they potentially still have oil reserves.”

Pertamina will look to explore around 20 wells this year, up from 15 in 2017. The company’s oil and gas production rose to 693,000 boepd last year, a 7 percent increase from the year prior.

To boost production, the company has been exploring new wells across the archipelago, including in Tarakan, North Kalimantan, which may be able to produce 200 million boepd.

Source: Jakarta Globe

Kadin Sets Up Committee to Boost Trade Ties Between Indonesia, Brazil

The Indonesian Chamber of Commerce and Industry, or Kadin, has set up a special committee tasked with boosting trade relations with Brazil.

“The business relationship between Indonesia and Brazil is very promising; we both have a lot of untapped potential. The establishment of this committee will hopefully strengthen relations between the two countries,” Kadin chairman Rosan Roeslani said during a press conference at Mandarin Oriental Hotel in Jakarta on Wednesday (02/05).

He added that Kadin now has 10 bilateral committees.

The committee will serve as a bridge between Indonesia and Brazil to facilitate trade and help sustain a mutually beneficial relationship.

Anderson Tanoto, the youngest son of Indonesian tycoon Sukanto Tanoto, was appointed as chairman of the Brazil Committee. The Tanoto family owns a pulp and paper factory in Bahia, Brazil.

“We have palm oil and Brazil has soybean. It’s very important for our two nations to transition into the new economy by intensifying our trade. Brazil has made serious efforts to stop deforestation and we’re taking similar steps. We have much to learn from each other,” Anderson said.

Rubem Barbosa, Brazil’s ambassador to Indonesia, said during his speech that the committee plans to expand beyond trade in the future.

“We hope to conclude documents facilitating Brazilians to come to Indonesia soon. Technical cooperation between the two countries, boosting agribusiness, environmental protection and technology transfers are also part of our long-term goals,” Barbosa said.

The two countries have maintained amicable diplomatic relations since 1953 and Brazil is Indonesia’s main trade destination in South America.

“Our countries have a lot in common, therefore we have a lot to learn and gain from each other, especially on sustainable development strategies, land management, agricultural automation and ways to increase productivity. We hope the newly established committee will enhance the relationship between our countries,” said Shinta Kamdani, Kadin deputy chairwoman for international relations.

Source: Jakarta Globe

Indonesia welcomes 3.67m tourists in first quarter

Central Statistics Agency (BPS) records show that tourist arrivals in the first quarter of 2018 grew by 14.87 percent from a year earlier to 3.67 million.

BPS head of statistics distribution and services Yunita Rusanti said in Jakarta on Wednesday that the number of arrivals in March had reached 1.36 million, up 28.76 percent from March 2017.

She said the increase in tourist arrivals also reflected in room occupancy rates of star-rated hotels, which averaged 57.10 percent in March, compared to 54.70 percent in the same month of 2017.

Meanwhile, average the length of stay of tourists was 1.95 days, up by 0.06 points from March 2017.

The largest increase of incoming tourists was recorded at Supadio International Airport in Pontianak, West Kalimantan, where arrivals in March exceeded the year-earlier value by 168.74 percent, followed by Juanda International Airport in Surabaya, East Java (up 96.35 percent) and Sam Ratulangi International Airport in Manado, North Sulawesi.

Overall, the number of tourists arriving by plane increased 13.03 percent in March 2018 from March, 2017, while tourist arrivals through seaports and land borders increased 38.29 percent and 135.8 percent, respectively. (bbn)

Source: The Jakarta Post

Trade mission records $279.19 m potential in Dhaka

The Indonesian trade mission on Apr.A�26-28 to Dhaka, Bangladesh, has recorded US$279.19 million in potential transactions, which includes train cars, automotive products, food andA�beverage products and spices.

a�?As an emerging market, Bangladesh gives Indonesia an opportunity to increase trade and investment,a�? Arlinda, the Trade Ministry’s national export development director general,A�said in a statementA�The Jakarta Post received on Monday.

Arlinda said the mission was a follow-up to President Joko Widodoa��s visit to Bangladesh in January, when the President agreed with BangladeshiA�Prime Minister Sheikh Hasina and President Abdul Hamid to boost economic cooperation between the two countries.

He alsoA�called on Indonesian entrepreneursA�to explore the large potential forA�exportingA�various products and commodities to the Bangladeshi market.

The Indonesian delegation ran a business forum and the Indonesian Fair at Le MA�ridienA�DhakaA�duringA�the trade mission, which involvedA�93 businesspeople from 43 companies.

The Indonesian FairA�saw some 10,000 visitors, as well asA�a memorandum of understandingA�that state-owned airport operator PT Angkasa Pura I and PT Angkasa Pura Property signed with Bangladesha��s Zaman Company Limited on developingA�property to support the tourism industry.

Indonesia and Bangladesh recorded US$1.67 billion in trade in 2017, of which $160 billion was in Indonesian exports and $73.19 million in imports. (bbn)

Source: The Jakarta Post

Indonesia-Australia CEPA negotiators to solve differences: Trade minister

Trade Minister Enggartiasto Lukita has said negotiators of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA CEPA) will meet to settle the differences that could not be resolved in previous meetings.

“The negotiation team will sit together with their Australian counterpart. The team has to finalize discussion by the end of this month,” the minister said after a Cabinet meeting onA�the economic partnership at the Vice Presidential Office in Jakarta over the weekend.

The minister did not reveal the exact date and place of the negotiations.

TheA�negotiationsA�were originally planned to concludeA�in November 2017, but the countries hadA�failed to reach an agreement on a number of issues.

Enggartiasto said President Joko “Jokowi” Widodo and Australia Prime Minister Malcolm Turnbull had targeted to finalize the unsolved issues, particularly in regard to taxes, in August and planned to ink the agreement in October or in November.

Indonesian-Australian trade reached US$8.46 billion in 2016, with $3.19 billion in Australian exports to Indonesia and $5.26 billion in Indonesian exports to Australia.

Enggartiasto said the government would soon start trade talks with Morocco and Kenya, particularly in trying to agree on a preferential trade agreement (PTA).

“With African countries, the agreement is aA�PTA, which should be completed quicker as a PTA is not as complicated as an FTA [ free trade agreement] ,” he said.

Indonesia will also open talks on FTAs with Egypt and Turkey. (bbn)

Source: The Jakarta Post

Taspen seeks to boost business expansion of subsidiaries

State-owned pension insurance company PTA�Taspen plans to optimize its subsidiariesa�� business to improve its growth this year.

One of the strategies was to boost expansion of its subsidiary, Taspen Properti, by building more apartments for civil servants, Taspen president director Iqbal Latanro saidA�on Sunday.

a�?For example, Taspen Properti is in the process of developing a civil servant apartment complex. It also has some offices that have been rented to subsidiaries of state-owned companies,a�? he said as quoted byA�

In the first quarter of 2018, Taspen recorded total assets of Rp 232 trillion, up by 11 percent year-on-year. In addition, it also managed to post a significant increase in profits in the first three months of this year.

a�?Usually in the first quarters [of each year], we suffer losses. However, this year we were able to record a 506 percent surge in profits,a�? Iqbal said.

Last year, Taspena��s net profit climbed by 191 percent from 2016 to Rp 171 billion.

Taspen has partnered with 45 banks and PT Pos Indonesia to channel payments. To date, it has 6.5 million customers.

Source: The Jakarta Post

North Lombok marina officially caters to international yachts

Medana Bay Marina in Medana Beach, North Lombok regency, has been declared a special tourist terminal for international yachts, in a move that opens up access to foreign tourists looking to explore West Nusa Tenggara.

According toA�, the marina’s management company, PT Wisata Alam Samudra, said the decision was made official through Transportation Ministerial Decree No. 567/2018 on April 3.

With the move, Medana Bay Marina is now the only seaport in West Nusa Tenggara that can handle all processes related to customs, immigration, quarantine and port masters. Previously, foreign yachts that wanted to visit the location were required to register with one of 19A� ports, including those in Tual, Maluku; Kupang, East Nusa Tenggara and Benoa, Bali.

Additionally, North Lombok was also chosen as the country’s global hub for international ships.

Medana Bay Marina was built in 2009 on 6,000 square meters of land and a reserve of 5 hectares, mostly to cater to yachts that travel to and from Australia and New Zealand. Annually, it welcomes an average of 90 yachts per year, “especially during the Sail Indonesia event,” said the marina’s owner and president director, Ace Robin.

In September, the management plans to add new facilities and equipment, such as a boat trailer that comes with a slipway to safely help people disembark 30-ton yachts and reach land. (kes)

Source: The Jakarta Post

Jakarta to host GVS Venture Summit

Indonesia will for the second time host the Global Ventures Summit where startup investors from Silicon Valley in the United States and others will raise funds and discuss the development of startup companies in the country and beyond.

Unlike last yeara��s event that took place in Bali, this yeara��s summit from April 25 to 27 will be held in Jakarta.

According to a statement from GVS managing director Ahmed Shabana, the a�?Silicon Valley Tours The Worlda�? summit will have over US$30 billion in Silicon Valley funds with a $50,000 Pitch Battle. Since last year, GVS has helped over 12 companies secure over $20 million in funding in Los Angeles, Bali, Dubai and Mexico City.

The investors coming to GVS Jakarta this year include Silicon Valley’s Google Ventures, Base and Angelist. The speakers scheduled to take part in the summit include founder of homegrown ride-hailing app Go-Jek Nadiem Makarim and Google’s ventures partner Lo Toney.

Hari Sungkari from the Creative Economy Agency will talk about innovation and Bali 2019 while Luis Ernesto Gonzales from @ProMexico is set to discuss technology ecosystems in Latin America.

In addition, the summit will also discuss transportation venture funding and early-stage venture challenges.

On the last day, Boye Hartmann from @Y Digital Group Asia will discuss blockchain startups while Cynthia Johnson from @Bell + Ivy will discuss Hollywood’s branding tactics. In addition, Ken Ratri and Aulia Halimatussadiah from @Geek Hunter and Zetta will talk about talent and community.

Tickets and information can be found onA�

Source: The Jakarta Post

Indonesia books $1.09b trade surplus in March: BPS

The Central Statistics Agency (BPS) announced on Monday that Indonesia booked a US$1.09 billion trade surplus in March after posting a trade deficit for three consecutive months from December 2017 to February.

BPS head Suhariyanto said the surplus was supported by a surge in exports that reached $15.58 billion, a 6.14 percent year-on-year (yoy) increase, while the import value reached $14.49 billion, a 9.07 percent yoy increase.

a�?The export surge mostly occurred in non-oil and gas sectors such as agriculture commodities — herbs, coffee and corn a�� that grew 20 percent,a�? he said, adding that exports in the industry and mining sectors also increased.

China, the United States and Japan were the three top importing countries of Indonesiaa��s non-oil and gas products, contributing 37.78 percent to the total Indonesian export value.

a�?Coal, lignite, and steel were the main products we exported to China in the first quarter,a�? he said.

However, the value of oil and gas exports decreased 3.81 percent month-to-month (mtm) to $1.3 billion due to a slow performance in gas exports.

Meanwhile, on the import side, industrial materials and capital goods made up over 90 percent of total imports in the first quarter of 2018, a 8.35 percent and 27.72 percent yoy increase, respectively, Suhariyanto added.

Meanwhile, imports of consumption goods only contributed 8 percent of the total import figure in March.

Suhariyanto expressed hope over Indonesia maintaining its achievement in April through the diversification of exported products. a�?Also, we have to create more trade partnerships with non-traditional markets,a�? he said. (bbn)

Source: The Jakarta Post

West Kalimantan to have new port in 2019

The Indonesian Port Corporations (IPC), also known as state-owned port operator PT Pelabuhan Indonesia II, announcedA�on Wednesday the construction of the Pantai Kijing Port in West Kalimantan, which is projected to begin operation in the third quarter of 2019.

a�?The Kijing Port will operate in line with international standards. It will be the largest port in Kalimantan and will strengthen inter-island connectivity,a�? said IPC president director Elvyn G Masassya when announcing the project’s start of construction in Mempawah, West Java, on Wednesday.

The Kijing Port, which will be developed in four phases, is located 80-kilometers away from Pontianak Port. IPC prefers to construct a new port away from the existing port because of the high sedimentation from the Kapuas River and land limits near the existing port.

In the first phase, the IPC will construct four terminals a�� a container, dry bulk, multipurpose and liquid bulk terminal.

The capacity of the container terminal is projected to be 1 million foot equivalent units (TEUs) annually, while liquid bulk and dry bulk will have a capacity of 8.3 million tons and 15 million tons respectively.

The Kijing Port will be integrated into the Special Economic Zone to be developed in the area, as part of the effort to create a new growth center in the province.

Assistant to the West Kalimantan secretary Alexander Rambonang said the development of the two projects would help open downstream businesses to the plantation and mining sectors, the major commodities of the province. (bbn)

Source: The Jakarta Post