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December 2015

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Trans-Pacific Partnership? No Choice! Indonesia is currently preparing to become a member of the Trans Pacific Partnership (TPP). Although there are many pros and cons of this plan, but Indonesia is considered to have no choice. Because if it does not get in the TPP, many factories will close and investors fled to other countries. This was revealed by the Minister of Trade, Thomas Lembong, at the Indonesia Economic Outlook 2016 seminar organized by PDBI held at JW Marriot Hotel, Mega Kuningan, Jakarta, Tuesday (11/24/2015). "Frankly, in a cabinet meeting yesterday, clearly, bluntly and loudly, that we have no choice," said Lembong. Lembong express, such as Vietnam recently completed negotiations with European Union. Moreover, Vietnam has become a member of the TPP. This condition, Lembong said, will make more and more factories in Indonesia closed and moved to Vietnam. "Vietnam has joined TPP, more and more stories about many closed factories in Indonesia and

moved to Vietnam. Soon we will lose 10-15% tariff with Vietnam,” said Lembong. “We considered as a poor country, GDP is below US$4,000. With Vietnam, our export have already lost 10-15%, especially when Vietnam had free access to Europe and the United States. So we will be left (by investor), believe me," Lembong added. He also added the President's statement, Indonesia will become a member of the TPP is a form of government confidence. "Join TPP, we headed first class. Indonesia able to do so," he said. Lembong reaffirmed, if Indonesia did not immediately join the TPP, then Indonesia will be the country left behind. "If we do not join, we will be left behind, in fact we have many advantages, we should be confident. Indeed our economic slowdown, but 4.7% was one of the highest in the world economy, they even contraction, there is minus 3%, minus 5%, so we are quite high, so it is quite an edge to compete," said Lembong.(qoi)

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Trans Pacific Partnership international country member.

Jokowi: ASEAN Should Contribute Indonesia Investment to Solving World Problem Agent water were sprayed using 23 helicopters; some countries are also helping Indonesia, including Singapore and Malaysia; and a firm legal process has been done. President Jokowi explained that he has compiled important steps for the future, namely the preparation of One Map Policy; establishes a moratorium on permits use of peat lands; conducting a review of licensing; as well as restoration of peat land ecosystems. “President Jokowi also reminded that 2015 is an important year for ASEAN, the ASEAN Community will come into force”. We will become one community, togetherness and cooperation should be encouraged to be highlighted,” the President said.

SETKAB.GO.ID

President Jokowi with ASEAN Leaders at 27th ASEAN SUMMIT, Kuala Lumpur Malaysia. President Joko Widodo said that in recent days the world was shocked by the sad news of the violence in several countries. Therefore, President Joko Widodo asked to do a better cooperation in the field of implementation of the ASEAN Convention on Counter Terrorism. “ASEAN needs to boost intelligence cooperation and in strengthening the rule of law,”

President Jokowi said on the Plenary Meeting of the 27th ASEAN Summit in KLCC, Kuala Lumpur, Malaysia, Saturday (21/11). In addition to the issue of terrorism, President Jokowi also highlight the handling of migration and the South China Sea. Related to the South China Sea, President Jokowi stressed that peace and security in the South China Sea should be maintained

and international law must be respected. Regarding to forest fires that had just occurred in Indonesia, President Jokowi explained, all efforts have been made by the Government of Indonesia. Forest fire fighting by land and air has deployed more than 30,000 personnel; weather modification and 325 tons of salt already stocked with 4 aircrafts; water bombing and 120 million liters of

At the same time, we are now towards the ASEAN Community by 2025. Therefore, ASEAN should be able to maintain unity and centrality, where the dynamics of our region will be higher. “Without unity and centrality of ASEAN, the region will become a struggle for influence of the great power, and ASEAN should be able to bring peace and stability of the region,” President Jokowi said. “ASEAN should be able to contribute to solve the world problem, and ASEAN must be part of a problem solver,” President Jokowi said.

President Jokowi gives new tasks to the ministers. A number of ministers assigned a special duty to handle relations with friendly countries, ranging from political to economic cooperation affairs. Cabinet Secretary Pramono Anung when confirmed, not denied when asked whether the minister's liaison to prevent any middle man or intermediary. "The point is that the designation was for efficiency, so there is responsible person, not throwing the responsibility, and for those countries when facing problems already know who to call," said Pramono in Bogor, Monday (11/23/2015). SETKAB.GO.ID

Pramono Anung ensure Foreign Minister retains full responsibility for the performance of economic diplomacy, including playing a key role in the process of negotiations between Indonesia and other countries. "The Ministers remain under the coordination of the Ministry of Foreign Affairs," said Pramono. Here is the arrangement of ministers appointed by the President Jokowi: 1. Minister of Energy and Mineral Resources Sudirman Said is responsible for countries in the Middle East. 2. Head of Bappenas Sofyan Djalil responsible for Japan.

Cabinet Secretary Pramono Anung. 3. SOEs Minister Rini Soemarno responsible for China. 4. Minister of Marine Affairs and Fisheries Susi Pudjiastuti responsible for Russia and the United States. 5. Minister of Communication and Informatics Rudiantara is responsible for the United States. 6. Trade Minister Tom Lembong responsible for Europe and Australia. 7. Transportation Minister Ignatius Jonan responsible for India. 8. Coordinating Minister for Politics Luhut Pandjaitan responsible for Singapore. 9. Minister of Maritime Rizal

Ramli was responsible for Malaysia. 10. Head of BE KRAF Triawan Munaf responsible for South Korea. 11. Head of BKPM Franky Sibarani responsible for Taiwan and Hong Kong. 12. Minister of Agriculture Amran Sulaiman responsible for Asean countries except Singapore and Malaysia. Meanwhile, when met, Minister of Foreign Affairs Retno Marsudi convince the assignment from President Jokowi will not overlap with her staff, along all remain under the coordination of the ministry she leads.(qoi)


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Opinion ATMONO SURYO

ASEAN THE RISE OF AN ECONOMIC POWERHOUSE ECONOMIC PROGRESS The world recognizes that a new and modern economic landscape is developing in East Asia. With the emergence of two giant countries: China and India. Followed by the development of ASEAN. A regional grouping of ten emerging countries in South East Asia. The following data on AEC (ASEAN Economic Community) gives an overall view on ASEAN’s development. Starting from the establishment of ASEAN in 1967 until the present AEC 2015. The important milestones in AEC includes: ASEAN vision 2020 in 1997 – Bali Concord II (ASEAN Community) in 2003 – AEC Blueprint in 2007 and the ASEAN charter in 2008. ECONOMIC PERFORMANCE ASEAN’s economic performance in the area of combined GDP, merchandise trade and investments is shown by the following data. In all 3 important areas, ASEAN economic performance has been quite remarkable. These three factors have until today functioned as ASEAN’s economic drivers in the developSupported by:

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ment of the regional economy. Those positive developments indicates that ASEAN is firmly on the rise. With the potential to become another powerhouse in Asia. The ASEAN public, especially in Indonesia, should be fully aware of such a possibility. There is firmly the need for strong public support for the development of ASEAN. A “low profile” mindset is not the right one for a region in the integration process. At the same time ASEAN recognizes that it is still facing many poor sectors and many challenges in their economies. Particularly in the area of poverty reduction and the growth of employment opportunities. RIGHT STRATEGIES In the area of economics the future will show whether ASEAN has taken the right strategy, namely: •To take the difficult and complex road of economic integration; •To establish the AEC (ASEAN Economic Community), as the institutional machinery to manage the integration process; One can safely conclude that it was the right decision by ASEAN to take the road of integration. The process of integration is a stage by stage process as it concerns a very diverse region. It requires difficult adjustments, strong commitments and positive actions by all the member countries. ESTABLISHMENT OF AEC

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Address Menara Batavia Lt. 25 Jl. K. H. Mas Mansyur Kav. 126 Jakarta 10220 Ph. (021) 57930347 Fax (021) 5727338 Email: ulfah@thepresidentpost.com Published by PT. Media Prima Nusa www.readtpp.com www.thepresidentpost.com www.thepresidentpostindonesia.com

The ASEAN economic Community is supported by the following four pillars: Pillar 1 : Single Market & Production Base Pillar 2: Competitive Economic Region Pillar 3: Equitable Economic Development Pillar 4: Integration into the Global Economy

- GDP With GDP doubling between 2007–2014; to reach US$ 2.57 trillion in 2014; ASEAN is now rated as the 7th largest economy in the global economy; after the USA, China, Japan, Germany, France and UK. Larger than many other developed countries. Which have in the past dominated the world economy for many centuries. - Merchandise Trade An increase of 57% for merchandise trade; amounting to US$ 2,53 trillion in 2014; trade has always been one of ASEAN’s strongest sector in their economies. Trade will continue to be a strong economic driver. - Intra ASEAN ASEAN recognizes, however, that intra-ASEAN trade has still to be developed to the optimum; to make ASEAN as a more “self-sustained economic entity”. - Investment Total FDI inflows increased by 160% to reach US$ 136.2 billion in 2014 with Intra-ASEAN inflows as the second source, after the EU. It is important to note that ASEAN investment inflows is larger than the ones coming from Japan, US and China. There will be the need for larger FDI (foreign direct investment) inflows into ASEAN in the immediate years to come.

The process of planning and managing through the establishment of the AEC is also not an easy one. As experienced by the European Union until today. ASEAN Blueprint shows how much work has to be done by the member countries. For one pillar alone such as the Single Market and Production Base some 277 measures are required to be implemented. In addition to the Single Market objective ASEAN has still to work on the development of the ASEAN Production Base. A process which requires the restructuring and reform of the economies of the member countries. It is obvious that the trend of intra-ASEAN interactions should be promoted to the fullest in the years ahead. To strengthen ASEAN position in facing the highly competitive global economy. A number of ASEAN countries have their difficulties to attain the right competitive position, particularly in the area of trade, services, production and finance. It becomes increasingly clear that effective work has still to be done on the ground by the members to develop ASEAN as a Competitive Economic region. To comply with Pillar 3 requirements. SINGLE MARKET & PRODUCTION BASE With its high economic growth and its large potential market, it has become relatively easy for ASEAN to develop an ASEAN

Single market. With Indonesia as its central market. There is no need for ASEAN to rely on high amounts of stimulus funds to increase domestic demand. As is happening in many other countries. ASEAN has become a highly attractive market for a large number of merchandise. ASEAN purchasing power is presently rising at a relatively high speed. It is predicted that this trend will continue for many years to come. ASEAN will continue to be on the high list of attractive markets. Not only in the area of consumer goods. But also in the area of development-related goods.

Needed to spur the development of large industries and manufacturing. The time has now come for ASEAN to give its full attention to the next objective: The Production Base area. The development of ASEAN’s Production Base will obviously require a very large amount of domestic and foreign investment. It is quite amazing to observe that a very large number of countries and investors are keen to enter into ASEAN investment sectors. “NEW DRIVING FORCE” A new driving force is developing around the world including in

Southeast Asia. Namely the growth of the Middle Class. According to Nielsen estimates the Southeast Asia Middle Class amounts to the incredible amount of 190 million in 2012 . Larger than the USA – France, Germany and UK – but smaller than China and India.

house in Asia. There are different estimates about Indonesia’s Middle Class. According to the! Boston Consulting Group, Indonesia middle class stands at 74 million and may reach to 141 million by 2020.

It is not clear yet, how this new wave of the Middle Class will affect the global economy. Nor the ASEAN countries in Southeast Asia.

ASEAN, including Indonesia, should remain firm in their integration and development policies: to achieve high growth and increasing GDP; to expand their trade, services and investment;

It is predicted by international analysts that in the coming years ASEAN Middle class will assume a highly important role in developing ASEAN as a rising Power-

Concluding remarks;

It is the best policy that ASEAN countries will not only become a consumption society. And to

concentrate only on the development of the single market; -Time has now come to soonest develop ASEAN’s and the member countries production base; to include such areas as manufacturing, resources-based and high-tech industries; -And to promote the development of an innovative middle class and an active business sector; -The time has also come to promote and enhance Indonesia as a leading country in developing ASEAN as a strong economic powerhouse in Asia. (A/S)


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President Log

September 2013 Vol. 2 No. 9

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Opinion G-20 Summit, Indonesia Play Important Role

President Jokowi Holds Bilateral To Promote Situation, Condition and Tolerance Talk With Canadian Prime Minister G-20 leaders appreciated Indonesia as a country with the biggest Moslem population in the world with relatively good condition and a country that promotes tolerance. “They realize the important role that Indonesia plays as a country Regardless of whether with the biggest Moslem population where the situation and or not we still have condition is good and tolerance is plentysaid of oil and gas promoted,� President Joko Widodo (Jokowi) at Regnum reserves, all agree Carya Hotel in Antalya, Turkey, that Indonesia must on Sunday (15/11). During the G-20 Summit, carefully manage them Jokowi also told G-20 leaders that orderwithto improve as a in country the biggest Muslim the population, welfareIndonesia of the always promotes modern, moderIndonesian ate and tolerant Islam.people. Jokowi also offered condolences on behalf of the Indonesian government to the people of France for the latest attacks in Paris and condemned the violent action. Jokowi arrived at Regnum Carya Hotel in Antalya, Turkey, where the opening of the G-20 Summit was held on Sunday (15/11). Jokowi was directly welcomed by Turkish President Recep Erdogan. Jokowi attended the opening ceremony and made time to talk with President Erdogan before joining the joint photo session along with other G-20 leaders. G-20 comprises 19 member countries and the European

Our Oil and Gas Reserves ment has not been able to provide reliable data about the real oil and gas reserves in Indonesia. For how long will they still be available and keep up with our daily production target? Can’t it be measured with a more reliable data rather than with assumptions that only lead to wild opinions? The government would actually face a dilemma if it came out with a reliable data. If the data showed that there were only little left, it would automatically create pessimism. Pessimism would have implications on the government’s policies especial-

By Siraj El Munir Bustami

F

ormer Energy and Mineral Resources Deputy Minister Prof. Rudi Rubiandini made a startling statement right after he was installed as the head of the country’s oil and gas regulator SKKMigas on 15 January 2013. Rudi said that the oil production in 2013 reaches the lowest level. The country’s oil production target continues to drop despite the production target of 900,000 barrels/day in the 2013 state budget. Prior to that, the late Prof. Widjajono Partowidagdo, whom Rudi succeeded as the deputy minister following his sudden death, said that our biggest mistake was that we kept believing that Indonesia has huge oil and President gas reserves. Jokowi at Turkey G20 Antalya Summit 2015. Such matter has been a source of debates the government Union. G-20forcountries dominate Senegal, Singapore, and Zimbaand groups of in the the world public trade. who 75 percent bwe. are critical is because the governIndonesia the only ASEAN Azerbaijan was invited by host

country who becomes a member of G-20. This year’s G-20 Summit also invited world leaders from non-member nations, including Azerbaijan, Spain, Malaysia,

ly those related to cooperation contracts with contractors. But if the answers were that we still have plenty of reserves, it would automatically create a sense of optimism and it will increase our bargaining power. However, regardless of whether or not we still have plenty of oil and gas reserves, all agree that Indonesia must carefully manage them in order to improve the welfare of the Indonesian people. The government has still not until today issued data on Indonesia’s oil and gas reserves either by the Energy and Mineral

Resources Ministry or the National Energy Board. In one of the hearings between the House Commission VII and geologists in 2011, geologists said that they too didn’t know how much oil and gas reserves Indonesia has. The government, in this case the Ministry of Energy and MinSETKAB.GO.ID eral Resources, should comPrime of Canada, Justin Trudeu meeting with President Jokowi. pile dataMinister and issue an official information so that the public condition for investors in IndoneOn the sidelinestheof real the condiG-20 Team Member Ari Dwipayana said can understand sia. Summit in Antalya, both leaders conveyed their tion. The data should of Turkey, course President Joko Widodo (Jokowi) condolences on the terrorist be based on international stan“I asked Canada to widen their dards so that the cannewly suphad a bilateral talkpublic with the attacks in Paris. “President port all policies thatMinister the governmarket for Indonesian products appointed Prime of Jokowi and PM Trudeau have ment decides take. at the IC such as rubber, paper, furniture, Canada JustintoTrudeau agreed to fight against radicalism

Santai Hotel on Sunday (15/11). It was the first bilateral meeting for PM Trudeau, who took office on 4 November.

electronic, footwear, coffee and tea,� Jokowi said.

On that occasion, President also reserves invited Canadian The government has still not until today issued data on Indonesia’s oilJokowi and gas businessmen to invest in Indone“Congratulation on your appointSETKAB.GO.ID Ministry or the National Energy Board. In one of either by the Energy and Mineral Resources sia, particularly in human ment as Prime Minister of the hearings between the House Commission VII and We geologists 2011,resources, geologists said that agriculture, sustainCanada. want to inbuild able technologies and infrastrucwith they too didn’t know how much oilstronger and gascooperation reserves Indonesia has. ture sectors. Canada,� Jokowi said, starting his invited as representative of the talk with PM Trudeau. New Partnership for Africans �I hope Canadian businessmen Development (NEPAD), could take benefit of these opporDuring the meeting, both leaders Turkey, while Spain is a Singapore was invited as Chair of tunities and condition in Indonediscussed efforts to promote non-member country that is the Global Governance Group sia,� the President said. bilateral cooperation as well as permanently invited at G-20 (3G) and Zimbabwe was invited as several cooperation on global Summit. Malaysia was invited as Chair of the African Union. Furthermore, Jokowi and his issues, while in economic sector, Chair of ASEAN, Senegal was Canadian counterpart also talked both leaders saw opportunities in about efforts to forge cooperation trade and investment cooperation on climate change, as well as on between the two countries transnational crimes eradication. . Trade volume between Indonesia Jokowi conveyed Indonesia’s hope and Canada in 2014 reached US$ that UNFCCC COP 21 Meeting in 2.6 billion. Paris will produce a new international agreement on climate Jokowi also told the Canadian avadtechnologies.com change. Prime Minister that the Indonement which make both domestic sian Government had launched and international accords bemeeting, which will take place in Meanwhile, According to several economic policy packages come more flexible, not too bindJapan in December 2015. “The Presidential Communication to create a more conducive ing with regards to many of the meeting will contribute to the state’s non-political issues. strengthening of political and At this point, the demand for defense cooperation between the full competence on international two countries,� President Jokowi administration and bureaucracy in this globalization era becomes said.

and terrorism.

Therefore, the two leaders will promote cooperation on several sectors, such as human rights, development of democracy and strengthening inter-religion dialog,� Ari said. Ari also said that President Jokowi encouraged Canada to strengthen its commitment as Indonesia did to reduce emission by 29 percent in 2030 and 41 percent.

Globalization and the Challenges of President Jokowi and PM Abe Meeting To Boost of the Bureaucracy Indonesia’s Management Indonesia’s Infrastructure Development “International administration, even when it is aligned with the wishes of the people concerned, is almost always imposed from outside�(David Harland)

By Anak Agung Banyu Perwita

T

he sentence above shows that there are international (globalization) roles in the public administration management of a country. International intervention, in this case international administration, is often unpreventable in domestic lives. This is because a wide range of issues, processes and actors involved in the administration/bureaucracy have international dimensions. The question now is how a country with its administration capacity can maintain its integrity and sovereignty in managing al development matters profesits bureaucracy to achieve its naSETKAB.GO.ID sionally will only open the door tional development agenda. Presiden Jokowi and PM Abe at Meeting Room KLCC, Kuala Lumpur Malaysia to foreign intervention, either by Domestification and internahave signed cerprocess will play President Joko Widodo (Jokowi- tionalization press release on Sunday (22/11), countries cooperate that closely in various tain accords and those that have bigger roles in the government’s had a meeting with Prime the two Heads of State agreed to sectors.“Particularly regarding not. These are already reflected management in the era of gloMinister Shinzo Abe in Meeting balization boost the in cooperation could in thea infrastructure, I think that wide range of development which traditional Room KLCC, Kuala Lumpur borders strengthen the relations between the development in is problems, especially Indonesia in the manof a country will become Malaysia, Sunday (22/11). “It’s more the two countries, particularly in agement importantof for the prosperity of the domestic natural and more blurred. One of very delighted to meet Prime the infrastructure power resources. the region,� Abe said. impacts thatsuch we willasencounMinister Shinzo Abe after a ter plants, others. is growThere are at least three crucial fromports suchand a process points related to to the actors inmeeting in Japan in April and last ing demand for better transIn addition infrastructure, volved in ourisbureaucracy manparency, accountability and week in Turkey,� Jokowi said. Abe admitted that the relationcooperation also carried out in of all, the professionalism in dealing with ship between both countries is agement. the fields First of politics andcountry defense most of important international During the meeting, according to both very national good andand Indonesia is a actors where are the the Minister Foreign actors in the administration and issues. Our unwillingness and the Communications Team of strategic partner for Japan. Abe Affairs and Minister of Defense of bureaucracy management. Secincapability in managing nation-

President, Ari Dwipayana in a

also hopes the two countries can

both countries will have a

He added, that both leaders have also agreed to increase cooperation on energy efficiency and renewable energy sectors, as well as on peat land management. Accompanying the President in the talk were Minister of Foreign Affairs Retno Marsudi, Minister of Finance Bambang Brodjonegoro and Minister of State Secretary Pratikno.

The lack of or absence of competence in bureaucracy will only Jokowi Welcomes People’s Republic Of types China lead to three higher because it will affect the of malgovernance, level that can be Committment ofeffectiveness 20 Billion Dollars to Assist applied in various local, national namely bad and global issues. The adminisgovernance, weak tration competence is also relatIndonesian Financial Sector ed with the quality of good pubgovernance and lic governance which carries 8 (eight) characteristics, nameunderdeveloped ment of the Asian Infrastructure President Joko Widodo (Jokowi) which concern with the G-20 ly: participatory, consensus, acglobal governance. Investment Bank (AIIB) as well as received a visit of President of the summit this transparancy, time. “President countability, re-

The closeness of the relationship between Indonesia and Japan also indicated by the presence of business and political figures of Japan to Indonesia, led by Chairman of the Parliamentary League Indonesia – Japan, Toshihiro Nikai. Jokowi believes this visit will certainly strengthen the relationship between both ondly, the specific inter-governcommunities. “Tomorrow I will mental actorsofsuch as thetoWorld give Merit Honor Mr. Bank, IMFNikai and for others. ThirdToshihiro services to ly, multinational actorsand such as Indonesia in the Palace in the multinational companies. Based evening will receive prominent on the explanations above, there figures from politics and business are at least two consequences people Japan,� President that weofneed to know andsaid. un-

People’s Republic of China (PRC) Xi Jingping, at Hotel IC Santai, quires understanding Antalya,anTurkey, which isabout the countries’ needs stay for during coordinaPresident Jokowi the tion cooperation pattern among Summit of the G-20, in Antalya, state bureaucratic institutions. Turkey, on Sunday (15 / 11) On the other hand, this model 15:45 Local Time or approxialso refers to the interaction patmately at 20.45 pm. terns between the state actors President Communications and non-state actors in providTeam Ari Dwipayana inservices. a press ing public policies and release Sundaythe (15/11) In this on context, term night comexpressed, meetingthe held on monly usedintoaexplain interaction pattern and the sidelines ofbetween the G-20state summit, non-state actors is informal inthe two leaders agreed to increase ternational cooperation administration in the field and of bureaucracy. concept refers economics andThis finance. to bureauIn administration addition, also and discussed a cracy regulations and managenumber of global financial issues,

derstand about international adAccompanyingdevelopment. President Jokowi ministration

on the occasion among others First ofof all, pragmatism, the Minister Foreign Affairs Retno necessity understand inMarsudi, to CMEA Darminwhat Nasutternational administration ion, Coordinating Minister and for bureaucracy is in order to underMaritime Rizal Ramli, and stand modCabinetthe “relational Secretary state Pramono el�. On one hand, this model reAgung.

Jokowi welcomeseffectiveness the commitment sponsiveness, and efficiency, equitability and comof the Government of the PRC to pliance withIndonesian the law. assist the financial Secondly, the lack of or absector through funding for sence of competence in bureauIndonesian banks and liquidity cracy will only lead to three types support,� Ari said. of malgovernance, namely bad governance, weak governance President Jinping conveyed the and underdeveloped global govreadiness The of thethree Government of ernance. malgoverthe PRC which to improve Bilateral nances are the marked by Currency Swap Arrangement that weak national leadership and was given to Indonesia be about lack of austerity willto only result in various multidimension20 billion dollars. al On problems the local, nationthat in occasion President al and also international That’s Jokowi requestedlevel. the support exactly what Indonesia is facing of President Jinping that the right now in its national developcompetent Indonesian officials be ment management. able to enter in the top manage-

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Indonesia’s desire to put AIIB first regional office in Jakarta. Meanwhile, related to global issues, President Jokowi conveyed the Indonesia’s plan to push forthe reform of global financial architecture in the G-20, as it has been delivered at the time of the Asian-African Conference. “This reform is needed immediately to create a balance in the international financial system between the developed and developing countries,� said President Jokowi as quoted by President Communications Team Ari Dwipayana.

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Desember 2015

Minister Log Minister Bambang: IRS Can Help Indonesia Boost Tax Revenue

Minister Arief Yahya Prepares 1000 Yacht Tours in 2016 certification for tourism sector that is targeted to increase by 25,000 ASEAN-certified resources every year. “I will speed it up. In five years, I will make 125,000 more for ASEAN-certified Indonesian resources,” said Arief. The current number of certified Indonesian tourism labors are 125,000, which according to Arief, are twofold behind the Philippines.

Bambang said, through a conference call from Turkey. Bambang discussed the cooperation in a bilateral meeting with US Treasury Secretary Jack Lew, on the sidelines of a G-20 meeting in Antalya, Turkey. Despite lower than expected revenue this year, the Indonesian government has set an even higher tax collection target in the 2016 state budget.

collection and tax law enforcement. Bambang said he was keen to learn more about the best practices at the IRS.

The Finance Ministry has set the 2016 tax collection target, excluding excise and duties, at Rp 1,360.14 trillion ($98.42 billion), or 5.1 percent higher than this year’s target of Rp 1,294.26 trillion.

“The United States’ Treasury Department is willing to give some kind of support to other countries, especially to Indonesia, to improve our capacity,”

As of Nov. 4, Indonesia’s tax office had only managed to collect Rp 774.5 trillion in taxes, excluding excise and duties -- or only 60 percent of its full-year target.

Minister of Finance, Bambang Brodjonegoro. Indonesia is considering a cooperation with the Internal Revenue Service in the United States, in a bid to boost tax revenue, Finance Minister Bambang Brodjonegoro has revealed. The IRS is a US government agency that is responsible for tax

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SETKAB.GO.ID

Minister of Tourism, Arief Yahya. Minister of Tourism Arief Yahya said he is preparing yacht tours to be implemented next year. “I believe target of 1,000 cruise ships will be achieved next year,”

said Arief in Tempo Economic Briefing event, at the Ritz Carlton, Mega Kuningan, Jakarta, Tuesday (11/17/2015). Arief said there are five ports that will facilitate the tours. The ports are

located in Medan, Jakarta, Surabaya, Bali and Makassar. “The five ports are ready for embarkation and disembarkation,” said Arief. The minister is also preparing human resource

Arief said there are ten tourism destinations in 2016 that will become the flagship tourism destinations: Lake Toba, Belitung, Tanjung Lesung, Thousand Islands, Borobudur Temple, Mount Bromo, Mandalika Lombok, Komodo Island, Wakatobi National Park and Morotai. Arief added that Bali covers 40 percent of foreign tourists, Jakarta 30 percent and Riau Islands 20 percent.(qoi)

Minister Rizal: Indonesia Economic Minister Amran: If We Need It, Indonesia Growth Will Reach 6% in 2016 Has a Backup of Imported Rice Moreover, Rizal added, permits simplification of investment made by the government could improve national productivity so that economic growth is encouraged. Some simplification of regulations made include permit investment in industrial zones and export-import activities.

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Coordinating Minister for Maritim and Resources, Rizal Ramli.

Coordinating Minister for Maritime and Resources, Rizal Ramli said Indonesia’s economic growth in 2016 will reach 6%. This growth is higher than this year, which is approximately 4.7%. Rizal said there are several factors that can encourage such growth. He explained with a tender at the end of 2015 could

increase government spending next year. “Tender can be done now. So that the signature can be done in mid-December contract that could be implemented in January. It accelerates government spending,” said Rizal in the event CORE Economic Outlook 2016 in Jakarta, Wednesday (11/17/2015).

“The message with this deregulation is to cut red tape, which makes expensive business, we reduce as much as possible,” said Rizal. Then, Rizal also added that the government makes the tourism sector as a focus of economic development next year. This helped boost employment for the community. There are 10 tourist destinations that will be developed such as Lake Toba, Raja Ampat, Labuhan Bajo, Bromo, Mandalika, Wakatobi. Then, Tanjung Lesung, Belitung, Borobudur and Morotai.(qoi)

Minister Darmin: We’re Looking For Logistic Performance Breakthrough logistics area with various facilities as well as special economic zones (SEZ). Nasution highlighted the change notification system of export of goods (PEB) of freight on board (FOB) to the terms of delivery cost, insurance, and freight (CIF). “It’s not easy to change it, because it takes the means, competencies, and many other things,” Nasution said.

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Coordinating Minister for Economic Affairs, Darmin Nasution Coordinating Minister for Economic Affairs Darmin Nasution said Indonesia’s logistics performance is currently at No. 53 in the world. This position left behind from neighboring countries such as Vietnam, Malaysia, and Thailand. “Indonesia is a little better than India, a little different from the almost no different,” Nasution said in Tempo Economic Briefing exposure at the Ritz Carlton, Mega Kuningan, Jakarta, Tuesday(11/17/2015). Nasution said that logistics is a combination of many things, which seem simple but in fact many of its components are difficult to manage. To calculate

the score of the position of logistics performance, consisting of a combined system of customs, infrastructure, international shipments (freight transport), logistics competence, and timeline. “There are so many, it is no wonder that it took a lot of things to do in order to achieve a significant improvement,” he said. “We’re actually looking for a breakthrough to get out of things complicated, looking for logistic performance breakthrough,” Adding that the government tried to focus on encouraging the simplification. One of them is to build not only the bonded area and industry, but also bonded

As for the FOB, adopted the system in which when making a purchase of goods, all shipping, insurance, and the price of goods paid by importers after the ship arrived at the port of discharge or in the destination country. While the CIF system is a system of purchase of goods, shipping, insurance, and the price of goods paid before the ship left or at the port of loading. “The role of our exports since the first only up to the port, after it did not know anymore,” Nasution said. Nasution said with the CIF system, the validity and accuracy of the data export activities will be recorded, and in the long term is expected to encourage development of transportation and insurance businesses in the country.(qoi)

Minister of Agriculture Amran Sulaiman announced that the government had already had a backup of imported rice. However, he asserted that the rice would not enter Indonesia if it were not needed. “It’s only a backup. If we still have the supply, it won’t be sent here,” Amran said in Jakarta on Sunday (11/1/2015). According to Amran, until today, rice supply stands at 1.5 million tons, while last week, rice supply that entered Cipinang wholesale rice market reached 5,000 tons. Usually, he added, the amount of rice that entered the market was only 3,000 tons of rice. “It shows that our production has increased,” he added. The government, Amran said, would optimize local rice supply until the end of the year. However, declined to reveal from which countries the backup of imported rice would come from. He also declined to reveal the amount that would be sent.(awp)

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Minister of Agriculture Amran Sulaiman.

Minister Thomas: Each Special Economic Zones Have Different Constraint, Government Will Find A Solution The government has issued a package of economic policy phase VI. Its primary focus is the development of Special Economic Zones (SEZs). Minister of Trade Thomas Lembong, after meeting with President Joko Widodo explained that in order to succeed the economic package VI, then he will review several ports.“So I have a business trip to Manado (North Sulawesi), Tomohon, I will visit the port and SEZ. I began to see the details of what exactly the constraints in SEZs. It must be different for each region,” said Thomas, at the State Palace, Jakarta, Monday (11/09/2015) Thomas explains, each area that has a SEZs, have different constraints. He mentioned, as in North Sulawesi the main constraint is electricity problem, even over many years. Moreover, the pattern of shipping in the SEZs area also must be seen. Therefore, the transport becomes the way for entry and exit of goods, mainly to the destination area. “It was determined by the shipping, where the shipping destination,” he said. According to him, the development of SEZ on the economic package VI, must go hand in hand

between the region’s production and transportation. The Government helped find a solution. Besides later, can also by investors, said Thomas, as well as public private partnership (PPP). Government Will Encourages SEZ Infrastructure Investment The Government admitted that one of the problems the development of a Special Economic Zone is the lack of infrastructure. For example, transport problems and the availability of electricity. Trade Minister Thomas Lembong said the government would find a solution to the development of infrastructure in the SEZ. He himself admitted that he had traveled to a number of SEZs. To encourage the development of infrastructure, according to Thomas, the government has set up three steps. One of them invites investors to participate in building it. “Thus, the loads are not piled on the shoulders of the government. “Could investors themselves, or public-private partnership,” said Thomas, at the State Palace, Jakarta, Monday (11/09/2015). According to Thomas, in some SEZ, one of which SEZ Bitung, North Sulawesi, electricity

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Minister of Trade, Thomas Lembong. became a major problem because almost every day power outage. If so, then the SEZ is difficult to develop. While on transportation, highway construction is also on the agenda. For toll He said the government keen to wear a Public Private Partnership scheme

(PPP), such as toll Bitung-Manado.Thom admitted concerned with the development of SEZ, because if the SEZ grow, then the local economy also increased. There will be the added value to the national product.(qoi)


5 Kaltara Supports Tourism Minister in Developing Indonesia’s Tourism

Kaltara Explore 2015 in TMII Jakarta. North Kalimantan (Kaltara) apparently has been storing a number of potential tourist destinations and no less attractive than other areas in Indonesia. Hence the provincial administration of Kaltara continues to promote the tourist destinations,

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supported by the local culture specialties that can make foreign tourists interested in visiting this youngest province. For two days, starting today (07/11/2015) and tomorrow (08/11/2015), the provincial administration (Pemprov) of North Kalimantan held the

Kaltara Explore 2015 in Taman Mini Indonesia Indah, Jakarta. Pemprov’s Head of the Bureau of Economic and Development Risdianto, who opened the event, explained that the potential of tourism and culture in North Borneo will increasingly be promoted to make it well known to the public and to have a positive impact on tourist arrivals to Kaltara.

ment of the Kaltara provincial administration Risdianto when opening Kaltara Explore 2015 in Taman Mini Indonesia Indah, Jakarta, today (07/11/2015).

The provincial government of North Kalimantan (Kaltara) supports the efforts of the Indonesian Tourism Minister Arief Yahya in promoting tourism to foreign countries, for the tourism sector is now the mainstay in gaining foreign exchanges in a bid to improve the welfare of the people of this country.

He expressed his appreciation of the performance of Tourism Minister Arief Yahya by promoting the tourist destination of Indonesia to foreign countries so that more and more foreign tourists are interested in coming to Indonesia.“North Kalimantan continues to promote the potentials of tourist destinations and interesting local culture so that it can make foreign tourists interested to visit Kaltara," he said.(bby)

It was stated by Head of the Bureau of Economic and Develop-

Risdianto further said that Tourism Minister Arief Yahya has been working hard to realize the target set by President Jokowi to bring in 20 million tourists until 2019.

Thousand Islands Makes Tourism Promotion in Widescreen Movie In an effort to promote tourism for the tourist destinations and local wisdoms in the Thousand Islands, the local government will make a widescreen movie about the Thousand Islands.

Thousand Island, Jakarta.

It is planned that the movie will be launched on 2 May 2016. The widescreen movie will involve the children and all components of society in the Thousand Islands.

Building Infrastructure for the Indonesian Tourism Progress

Thousand Islands Regent Budi Utomo welcomed enthusiastically the making of the movie about the potential of tourism in the Thousand Islands.

(BI), the Indonesian Young filmmakers, the owner of Dapur Solo restaurant Swandani Kumarga and Creative Economy Agency.

The kick off ceremony of the making of the widescreen movie on the Thousand Islands was organized on Wednesday (18/11/2015). The film making is supported by Bank Indonesia

A number of important points featured in this widescreen movie will include local wisdoms, nautical spirit, culinary, culture, and tourism.(bby)

Angkasa Pura I at Juanda Airports. Indonesia’s tourism potential is recognized to be not inferior to that of other countries that attract foreign tourists to visit a variety of destinations spreading from eastern to the western end of the country.

Development Director of PT AP I in his presentation at a workshop about tourism with the theme 'Gong 21: Achieving World Class Tourism Wonderful Indonesia Goes World Class' in Jakarta recently.

That is why it is necessary to build infrastructure to support the development of tourism in Indonesia. Therefore the government continues to make improvements to the infrastructure in welcoming foreign tourists coming to this country.

"I Gusti Ngurah Rai Airport in Bali is an example of the airport developed by AP I in an effort to support the promotion of Indonesian tourism because Bali is up to now still a favorite destination for foreign tourists coming to Indonesia," he explained.

Not only that, the management of PT Angkasa Pura (AP) I, which manages a number of airports in the country, has been reportedly continuing to improve the infrastructure in order to provide better services to the foreign tourists. That was stated by M Asrori, Marketing and Business

Asrori added that his department has been seriously developing the infrastructure in a number of airports managed by PT AP I. Head of Tourism Office at the Riau Islands (Riau) administration Guntur Sakti also said that local governments support the efforts of Tourism Minister Arief

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Yahya in developing the Indonesia tourism. Guntur said that Batam and Bintan and other destinations in Riau Islands continue to be developed that will attract foreign tourists to come there. He further explained that tourists from Singapore and Malaysia still dominate the visits to the Riau Islands. "We are trying to make tourists from China to be attracted to visit the Riau Islands," said Guntur. At the same occasion, President/CEO of PATA Indonesia Chapter Poernomo Siswoprasetijo said that in effort to increase the tourist arrivals to Indonesia it is needed to cooperate with international tourism wholesalers.(bby)


6 In Conjungtion with National Heroes Day, Indonesian Batik Fractal Wins in Brazil

HPN 2016, Socialization Moment of Halal Tourism in Indonesia

Batik Fractal, which represented Indonesia in Brazil, won ISIF Asia Award 2015. The award was presented to Batik Fractal's CEO Nancy Margried on Tuesday (10/11/2015) in coinciding with the commemoration of Heroes Day. Batik Fractal gained the ISIF Asia Award 2015 in the category of the Common Good.

The Implementation of National Press Day (HPN) in 2016 in Lombok, West Nusa Tenggara (NTB), is considered to be the right moment to disseminate information regarding the operation of halal tourism in various regions in Indonesia. "The HPN 2016, to be attended by various national media, will be the right moment for the socialization of the success of Lombok in getting the World's Best Halal Tourism Destination and World's Best Halal Honeymoon Destination during the event of the World Halal Travel Awards 2015 in Abu Dhabi, United Arab Emirates," said Vice Chairman of the IHRA NTB LA Hadi Faishal when being contacted by patainanews.com, on Monday (23/11/2015).

On the social media of facebook, Nancy, as she is usually called, evidently so proud wrote, "We are bringing batik to the world! Batik Fractal is the winner of ISIF Asia Award 2015 on the Code for the Common Good category. Yeaayy Indonesiaa !!!" No wonder President Jokowi made time to visit Batik Fractal booth during his working visit to Bandung Creative City Forum (BCCF) last January and now Batik Fractal has been chosen as the winner of the ISIF (Information Society Innovation Fund) Award. "At our place, President Jokowi took a look at our fashion products of Batik Fractal and learned jBatik; a software that produces batik by using fractals. He was also interested in the products produced by the community of mothers of Batik Fractal Community," said CEO of Batik Fractal Nancy Margried when being contacted by patainanews.com, on Wednesday (23/09/2015). The national heritage of traditional fabrics (wastra), especially batik is now gaining interest more and more from the world community. The awareness to wear batik has been intensified since 2009. This typical Indonesian fabric has been officially recognized by UNESCO and enlisted in the Representative List of Intangible Cultural Heritage of Humanity. The recognition of the world institution has been encouraging the demands to increase, not only from the people in this country but also from all over the world.

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CEO Batik Fractal, Nancy Margried. The assumption that batik is used only at an official event seems to have faded away because now many young people begin to wear batik on various occasions. And, Batik Fractal has won the ISIF Award. This was told by Nancy when being contacted by patainanews.com on Tuesday (22/09/2015). "Thank you for the support of all parties in realizing our vision for applying technology in traditional Indonesian culture," she said. Batik is known as a national heritage of traditional fabric (wastra). And as a heritage of this nation, it deserves to be preserved by the younger generations, even it would be not wrong if some of them use the development of technology to be applied on batik without compromising the value of the philosophy contained therein. Yes, Batik Fractal indeed takes the advantage of technology.

According to CEO Batik Fractal Nancy Margried, Batik Fractal is given a touch of innovation during its designing process. So, she continued, basically Batik Fractal provides a new approach in designing batik, which is through the use of technology. "What's interesting about Batik Fractal for the batik artisans is how technology can help them on the workmanship of batik and increase their creativity and productivity," she said when being contacted by patainanews.com, on Tuesday (04/08/2015). Meanwhile, she continued, for the batik users, Batik Fractal will certainly presents modern creations with new motifs are more diverse. Nancy, as she is usually called, revealed that the enthusiasts of Batik Fractal products range from teenagers to adults. "In general, the Batik Fractal customers are batik lovers who want a touch of modern motif in batik," she said. The advantage of batik so far is being favored by

foreign tourists. Batik Fractal products are also popular among the foreign tourists visiting this country. "Like foreign tourists in general, they are interested in Indonesian batik. However, especially for Batik Fractal, they are interested because of the technology touches in our traditional batik artwork," she explained. Nancy added that since 2008 Batik Fractal has been entering the global market. So, Batik Fractal began to explore the international markets by that year, not limited only in the domestic market. "However, to prepare the infrastructure to be able to market the products to the global markets in systemization, we can only start running it in 2014. We are grateful today that Batik Fractal products have already entered the export markets with international standards," she said.(bby)

Hadi, as he is usually called, said that in the HPN 2016, planned to be attended by President Jokowi and Tourism Minister Arief Yahya, could be the beginning of the declaration of halal tourism by the government applied in various destinations in Indonesia. "Later the HPN 2016 Lombok could also be used for ceremonial celebration of the success of Lombok in winning two prestigious titles in the prestige event of the World Halal Travel Awards 2015 in Abu Dhabi, United Arab Emirates, some time ago," he said. Hadi, who is also General Manager of d'Praya Lombok Hotel, further said that foreign tourists visiting a variety of destinations in

Vice Chairman of the IHRA NTB, LA Hadi Faishal. Indonesia coming from various countries with various ethnic and various faith, so that it would be good if all regions in Indonesia also have some halal tourism attractions. "The neighboring countries, such as Singapore, Thailand, and Malaysia, have been implementing halal tourism for quite a while, but it is not done in all parts of the countries so that it becomes a golden opportunity for Indonesia to implement halal tourism in many destinations in this country," he said. According to him, the implementation of halal tourism can be started with kosher food, and a place of worship for the provision

of tourist facilities. Hadi, who is also Chairman of the Advisory Board ASITA NTB, added that Lombok has become an entry point for the operation of halal tourism in Indonesia since Lombok was the one who represented the country in the prestigious event of World Halal Travel Awards 2015 in Abu Dhabi, United Arab Emirates recently. "Lombok won the prestigious awards in the world-scale event in Abu Dhabi, United Arab Emirates. And, it could be emulated by other destinations in Indonesia so that later they could also be able to participate in the prestigious event," he said.(bby)

Eclipse Festival 2016 at Ngata Baru

Pilgrimage Tours For Tourist Spiritual Comfort Tourism Minister Arief Yahya stated that his ministry has determined, and also requested all related stakeholders, to enhance and improve the governance of pilgrimage tourist destinations in Indonesia.

tourism. "I urge the national choreographers to pay more attention to the clothing. We will help in promotions on all national TV stations. I will also focus on sanitation, clean lavatories," he said.

In addition, the composition of the population by religions aside of forming religious-based tourist segment, will also form the characteristic of a pilgrimage tourist destination in every region.

Minister Arief Yahya, when delivering a keynote speech in the National Governance Workshop on Pilgrimage Travel Destinations held in cooperation between the LKBN Antara and the Tourism Ministry in the Auditorium Adhiyana Wisma Antara Jakarta, also said that his ministry would focus on three points to build and improve the governance of pilgrimage tourist destinations.

He also said that starting next year the ministry will allocate Rp1 billion for one location of pilgrimage tourist destination to finance the destination management particularly for clean sanitation.

Pilgrimage Tour for Spiritual Leisure of Travelers

"I will focus on marketing, destination, and human resources," said Minister Arief Yahya in a press release received by patainanews.com on Wednesday (18/11/2015).

"I call on the people to sustain the pilgrimage sites then they will improve the life of yours. I hope in the future the pilgrimage tourism will be able to create welfare of society around the sites," he said.

According to him, the pilgrimage tourist destinations need to be more seriously developed, including destination management, tourism product packaging, as well as the promotion and marketing of that special interest segment. Especially for the governance of destinations, Minister Ariel will focus on the packaging and the attractiveness of the pilgrimage

In the meantime, related to human resources (HR) the ministry will prepare100 people per location to provide technical guidance about the hospitality in a pilgrimage tourist destination.

According to the minister, Indonesia has the potential of religion-based tourism that is very complete and is recognized worldwide. He gave an example of Walisongo Sites for having the potential as the larger pilgrimage route and the longest exceeding the Camino de Santiago that is now the pride of Europe.

Arief Yahya said the appeal of pilgrimage tourism sites, which is potential to be developed seriously, is Walisongo Sites located in eight regencies/municipalities in the province of East Java, Central Java and West Java. Aside from being a cultural heritage based on Islam, these sites also represent cultural diversity and inter-religious tolerance in Indonesia. In addition to visit the tomb of saints, another attraction is the religious celebration called haul or religious memorial to commemorate the services of people who are considered to be important in the context of religion and nation. The haul celebration of Sunan Ampel Surabaya, for example, is able to attract visitors up to 10 thousand people per day. Data compiled from various sources led to a general idea that the number of pilgrims in nine tombs of Walisongo in 2014 reached

12.2 million people and the tourists spending was recorded up to Rp300 thousand per visit or total expenditure in the year amounted to Rp3.6 trillion. It is estimated that in 2014 there were 3,000 foreign tourists who visited the sites with a total expenditure of about US$450,000 or US$150 per day. The Tourism Ministry projected that tourist arrivals in Walisongo Sites in 2019 would be able to achieve 18 million tourists, or about 15 percent of the target tourists in 2019 with tourist spending per visit on average Rp400 thousand or about Rp7.2 trillion in a year. The right promotion and marketing strategies in foreign countries is expected to make the Walisongo Sites as a choice tourist destination of special interest-based religion that is able to attract 10,000 foreign tourists per year, with a total expenditure of US$1.5 million, or an average of US$150 per day. The workshop was also attended by Sultan Kasepuhan XIV Cirebon PRA Arief Natadiningrat, Vice Chairman of the Aulia Tomb Stakeholders of Java, Ahmad Mundzir, Member of Parliament Ferdinansyah, and Head of the Museum of History and Culture of East Java Provincial Tourism Office Endang Prasanti.(bby)

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Total Solar Eclipse. A Total Solar Eclipse (GMT) will take place on 9 March 2016 in several cities in Indonesia. This rare phenomenon will be celebrated in various activities in the Eclipse Festival 2016. The event will be conducted in Ngata Baru, Sigi Regency, Central Sulawesi Province, on 1-7 March 2016. Ngata Baru is located about 25 minutes drive from the downtown of Palu, Central Sulawesi's capital, and can be reached in 15 minutes from Mutiara Airport, Palu. Ngata Baru is the highest hill in Sigi Regency, surrounded by mountains and rivers which are often beautified by thousands of butterflies. Hence the tourist destination with the best visibility has been chosen as the point to enjoy the eclipse. The festival will be filled with workshops, art galleries and healing zone for children using Indonesian traditional medicines. The workshops include discussion on education that presents experts as the speakers with the

main topic on the Total Solar Eclipse. Other topics to be discussed will be the art, music, culture, science, psychology, anthropology, health, astrology, the environment and much more. The activities such as yoga, meditation, language exchange, a documentary film are also scheduled to be done there. Enjoy also the works of art displayed by local and international artists. Before the eclipse to commence, tourists will be entertained by musical performances on three stages at once. Both local and international musicians will work together to exchange culture while playing wide varied musical genres, ranging from psychelic, trance, techno, acid, electronica to traditional. The local authorities have been cooperating with the local residents to exert strict controls for the safety of the tourists. The festival is very important for the local tourism industry consider-

ing this is the largest Total Solar Eclipse event and the only one that targets foreign tourists as the main guests. The Kaili people, as an indigenous tribe in Sigi Regency, are the natives of the Ngata Baru land. Before the festival is officially open, the people of Kaili will perform rituals to ensure the Eclipse Festival 2016 will run well. The residents of Ngata Baru and the Kaili people are reportedly very proud and happy to be part of the festival which will be spotlighted by the rest of the world. Palu town itself is a peaceful town in Central Sulawesi, inhabited by friendly people and has the amazing underwater life. The Mutiara Airport Palu is connected to Jakarta with direct flights. There are also direct flights from Bali that in this event will facilitated by charter flights. Later, the committee will provide a vehicle to take tourists to Ngata Baru from Mutiara Airport Palu.(bby)


7 Tanjung Lesung, The Leading Sector of Economic Development in South Banten

'Bagan Badak Race’ Enriches Banten South Beach Tourism

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Bagan boat race at Tanjung Lesung. The ‘Bagan Badak Race’ has become a new attraction for Banten tourism in complementing the other tourism activities in the province of Banten. "If other region has the 'Tour the Singkararak' or another, well Banten now has the 'Bagan Badak Race'. This is the first and probably the first in the world," said Banten Governor Rano Karno when launching the 'Bagan Badak Race' as one of the series of Tanjung Lesung Festival in Kerang Beach, Pandeglang, over the weekend. According to Rano, the race in the future should be preserved and enhanced in order to attract more tourists, both domestic and foreign. "If this year only 10 units of fishing boat participate, then the next year should be many more to make it more attractive. Likewise with the communities involved

should be many more," he said. According to him, with the breakthrough in creating a new tourism attraction through the fishing boat race event, it is expected to give more colors to the Banten tourism development, especially to the tourist destination of Banten south coast. A total of 10 units of traditional fishing boat, equipped with lift nets and decorated, began the race from Kerang Beach in Kampung Citeurup, Panimbang District and finished at the 'Beach Club' in Tanjung Lesung. Head of Culture and Tourism Office of Banten Ali Fadillah said that Tanjung Lesung Festival is a series of activities in order to enliven the Banten 15th anniversary. The event is also a part of tourism promotion efforts for the southern coast of Banten. “This event belongs to the people; we do not differentiate between officials and the public. All should

be involved in efforts to raise Banten tourism," said Ali Fadi. The Tanjung Lesung Festival was also liven up with the activities of fishermen bazaar, Banten tourism business forum, the screening of "Jawara Kidul” (Champion of the South) and "Perempuan Lesung” (Women of Lesung) and the traditional art performance of Banten. Ali said that he hoped the construction Serang-Panimbang turnpike will trigger the development of tourism and the economy in South Banten region, particularly Lebak and Pandeglang. "In the year 2016, the toll road of Serang-Panimbang will begin to build. It will become the lifeblood for the development of Lebak and Pandeglang including the tourism sector," said Ali Fadillah.(awp)

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The

Bodur Beach at Tanjung Lesung.

Banten Province has been progressing quite rapidly. This region has a variety of natural resources to be a capital base of economic development. However, the southern region of Banten has not shown the progress that is equivalent to the northern region. Lebak with 28 districts and Pandeglang with 35 districts could be raised as an example. If the northern region has been known as a national

industrial estate, the southern region is known nationally as Baduy and Ujung Kulon. This condition should be addressed through proper development priorities. The first stimulus can be started from tourism. South Banten region is very rich in tourism. Moreover, Tanjung Lesung has been established as one of the 10 Special Economic Zones (SEZ) in Indonesia. The strategic role of SEZ Tanjung Lesung could be

appointed as the leading sector of Economic Development in South Banten. “When it is done, we believe economic growth in the southern region of Banten will rise rapidly and parallel to the northern region,” said Rosan Roeslani, Deputy Chairman of Kadin in Banking and Finance at Hotel Novotel, Tangerang, Banten, recently. Tourism has a multiplier effect, good for large-scale

enterprises as well as SMEs. Moreover, the government had issued incentives through the Economic Policy Package Volume VI, which specifically provides tax and non-tax benefits for investors in the SEZ. If SEZ Tanjung Lesung can move in the right direction, Rosan believes the presence of any investor will impact on the welfare of residents in the surrounding area, as well as those located along the connecting lines.(qoi)


8 SEZ Tanjung Lesung Enlisted in Economic Policy Package VI Focus

600 Coral Reef Seedlings Planted in SEZ Tanjung Lesung The Directorate of Conservation of Marine Biodiversity has organized an activity of Maintenance and Monitoring the Results of Coral Reef Transplantation participated in by several agencies and communities, among others were Loka Management of Coastal Resources and Serang Sea, Command Headquarters of Marine Navy Jakarta, I-CAN (Indonesian Coral Reef Action Network), and the community of sea conservation. The activity took place on 10 to 12 November 2015. The opening ceremony began with a welcome speech from the Head of Loka PSPL Serang as the host of the event. Then it proceeded with the official opening of the event by the Head of Maritime Affairs and Fisheries Office Pandeglang. The activities continued with a parallel presentations delivered by the Directorate of KKHL and Command Headquarters of Marine Navy Jakarta. The first day was ended by the delivery of the technical material of the I-CAN. On the second day, the participants conducted coral reef

"There are 8 SEZs established under the government regulation (PP), namely Tanjung Lesung (Banten), Sein Mangkei (North Sumatra), Palu (Central Sulawesi), Bitung (North Sulawesi), Mandalika (West Nusa Tenggara), Morotai (North Maluku ),

Community of Maintenance and Monitoring the Results of Coral Reef Transplantation at Tanjung Lesung. transplantation by planting as many as 600 coral reef seedlings, which were arranged on 30 (thirty) selves made of iron bars. Each rack consists of 20 coral seedlings and labeled with the number 1 through number 20. The shelves were descended gradually since 08.00 am in the

waters of Tanjung Lesung under the good weather conditions of quite bright sunlight. On the third day, the participants did the monitoring of the results of coral transplantation by measuring the height and diameter of the seedlings of the coral reefs on each substrate, followed

by cleaning the seedlings and the shelves. Hopefully with such activity, each agencies and community observant to the marine conservation issues can perform the maintenance on the existing transplants in their respective territorial waters.(qoi)

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SEZ Tanjung Lesung. The Special Economic Zones (SEZ) Tanjung Lesung has been included and become 1 of 8 SEZs to be placed under the focus of the government in economic policy package VI. The development of SEZs is in order to push the economy in the countryside areas.

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The

Tanjung Api-api (South Sumatra), and the Maloi Batuta Trans Kalimantan - MBTK (East Kalimantan). Under the PP, some facilities and services are provided for the SEZs," said Coordinating Minister for Economic Affairs Darmin Nasution in Jakarta. Zones Based on Local Resources The issuance of the PP, said Darmin, was not just to make the SEZs as a zone with various incentives, but to encourage the development and deepening of industrial clusters based on local

resources owned by each region around the SEZs. "With a note that those which is not a local resource directly still even then may be developed in the zones", said the minister. In addition, the PP will encourage the integration of efforts to create a favorable investment climate conducted by the central and local governments as well.

Banten’s Domestic Investment In the Third Quarter Reached Rp2.9 Trillion

"This is the first group in which the zones facilitated jointly by the central government and local government," Darmin added.(qoi)

Banten Year-on-year Import Value Decreased 30.36% Great

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Mosque of Banten (Masjid Agung Banten).

Realization of capital investment or investments in Banten in the third quarter of 2015 to domestic investment (DCI) reached Rp2.9 trillion. Head of the Banten Investment Coordinating Board and Integrated Services (BKPMPT) Babar Suharso, in Serang, on Tuesday (11/10/2015), said the investment activity based on reports received by BKPMPT Banten in the third quarter of 2015, the value of investments to foreign

direct investment (FDI) reached US$606.7 million with 452 projects, as for domestic investment (PMDN) value of investment reached Rp2.9 trillion with 100 projects. “Investment sector, which is most in demand by domestic investment is the trade and repair as many as 17 projects with an investment of Rp9.1 billion,” said Babar. While the majority of foreign investment engaged in the metal

industry, metal goods, machinery and electronics as much as 78 projects with an investment of US$87.9 million. “From the distribution of the highest investment for FDI in the third quarter of 2015, most in the Tangerang district as much as 195 projects with an investment of US$184.4 million,” said Babar. As for domestic investment, said Babar, Serang ranks first as the destination of domestic invest-

ment, with a total investment of Rp1.9 trillion in 18 projects. Later in Cilegon city ranks second PMDN with an investment of Rp412.9 billion with 11 projects. “For the FDI in Banten, dominated by Singapore, which is the country with the highest investment value reached US$200.7 million in 57 projects,” said Babar Suharso.(qoi)

Lebak Regency Ensure Conducive Investment Climate

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for the export-import activity..

Even the purchase of goods from abroad in Banten cumulative January-September this year dropped but the monthly non-oil imports in September 2015 rose. Head of the Central Bureau Statistics (BPS) Banten Syech Suhaimi said in cumulative January-September decreased 13.86%, while specific in September 2015 against the previous month rose 13%. "During the January-September still showed imports of non-oil commodities is still very dominant in the structure of

import of Banten," he said according to data from BPS, Friday (13 November 2015). In line with the 13.86% decline in the import of up to nine months was US $ 5.92, during the same period last year worth US $ 6.88 billion. Acquisition of imports during January -September equivalent portion is 79.54% of total imports reached US $ 7.45 billion. Along with the depreciation of the value of imports until the end of the third quarter / 2015, the purchase of products in Septem-

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ber compared with August have increased 13%. With this ninth month imported US $ 639.60 million, while the previous month of US $ 566.03 million. "Increased imports tend to be associated with a reduction of non-oil commodity prices in international markets," said Suhaimmi. While it is generally the value of imports in Banten during September rose 6.23% compared to the previous month to US $ 748.17 million. This value when compared year on year decreased 30.36%.(awp)

Lebak

Regent Investment Potential.

Board of Investment and Integrated Licensing Services (BPMPT) Lebak guarantee the investment climate in the region conducive. “During this time lebak community are peaceful, safe, orderly, and conducive,” said Chief BPMPT Lebak Hari Sutiono in Lebak, Saturday (10/31/2015). During this time, investors who invest in Lebak increased from year to year. In fact, the realiza-

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tion of target achievement is always higher than the target set by the government area. Currently, the value of the investment until October 2015 reached Rp3.684 trillion, exceeding the target for the year are set Rp1 trillion. The value of these investments consisted of the Domestic Capital Investment (DCI) Rp78.788 billion and Foreign Direct Investment (FDI) Rp3.605 trillion. “We are targeting the realization of the value of invest-

ments in 2015 amounting to Rp1 trillion,” he said.

it could encourage an increase in people’s income,” he said.

According to him, during this time Lebak is very conducive and safe in Banten province, because the people are quite religious. There was also a sense of brotherhood and harmony in the community quite high and run well. Therefore, domestic and foreign investors can grow and develop and be able to absorb thousands of local labor.

He said that domestic investment value of which PT Charoen Pokphand, PT Sierad, PT Sarana Provendo Utama, PT Gama Group, PT Cipedang Putra Utama and others. Meanwhile, foreign investment Rp2.7 trillion consisting of PT Cemendo Gemilang, PT Aplus Gypsum, PT Samudera Banten Raya, PT Saedong, PT Semen Lebak, PT Dongkuk Sukses Mandiri.

The regional government opened as wide investor by providing services easiness licensing process for domestic and foreign investments that would expand. In addition, it gives assurance of security so that investors like to invest in Lebak in accordance with the mission and vision of the Government of Lebak. “We work hard to provide the best services for domestic investment and foreign investment companies as

“All of total domestic and foreign investment in 2015 reached Rp3.684 trillion,” he said. He also added the possibility of residential development in this area which will accommodate the millions of citizens of Jakarta, because it will be operated double-track commuter line.(qoi)


The President Post

Business

9 Desember 2015

Develop Anami Project, PT Jababeka Cooperate With PP Properti Largest State-Owned Enterprises (SOEs) Property company in the country, PT PP Properti (Persero) Tbk. (Stock code: PPRO) in collaboration with a subsidiary of PT Kawasan Industri Jababeka Tbk. (Stock code: KIJA) to develop Anami on industrial land owned by Jababeka.

Mou agreement signing between PT Jababeka and PT PP Properti (Persero) for developing Anami.

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Cooperation is carried out by KIJA subsidiary, PT Graha Buana Cikarang. Memorandum of Understanding (MoU) for cooperation was signed on Tuesday, November 17, 2015. In the event attended Mr. Sutedja, Director of GBC, Mr. Tjahyadi, Director of GBC, Mr. Budianto Liman, President Director of PT. Jababeka Tbk. Taufik Hidayat, Director of PT PP Properti, Mr. Giyoko Surahmat, Business & Development Director of PT PP Properti, Mr. Galih Saksono, Operational Director of PT PP Properti.

Jababeka Gather 150 Businessmen and Investors from Japan consumer goods until the issue of the minimum wage in 2016 with a number of speakers from the business community.

Tractors, is one of the early tenants in Jababeka, followed by other large companies such as Kao and Nissin” he explained.

“Japan is one of the countries that regularly invest large sums in Indonesia, and became the country with the largest direct investment or foreign direct investment (FDI) in 2013,” said Director of PT Jababeka Tbk, Sutedja Sidarta Darmono at the meeting.

Thus, he added, it tookthe initiative to encourage constructive discussions between Indonesian entrepreneurs, Japanese entrepreneurs and government in order to achieve the best solution.

“In 2014 Japan also ranked as the second largest FDI in Indonesia. While in the first half of 2015, the realization of the FDI of Japanese companies in Indonesia it ranks third,” he continued.

Director of PT Jababeka Tbk, Sutedja Sidarta Darmono. Employment becomes one of the actual issues for businessman and Japanese investors in Indonesia at this time, in view with restrictions on the use of foreign labor. Moreover, the slow process of

land acquisition and the ban on imports of certain stone materials is also an obstacle for entrepreneurs and investors from Japan. PT Jababeka Tbk, Thursday (11/05/2015) at the Metro Suites

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Hotel, President Executive Club, North Cikarang gathers 150 businessman and investors from Japan through the Japanese Businessmen Gathering. In a meeting it was discussed about automotive trends,

He explained, based on data from the National Investment Coordinating Board (BKPM), for the period January-September 2015, Japanese investment realization, is ranked third highest with an investment of US $ 2.49 billion, with a number of 1,315 projects.

“In connection with the automotive industry, the government asked Japan to increase investment in the automotive industry and particularly industrial components,” he explained. This event was attended by Director of PT Jababeka Tbk, Sutedja Sidarta Darmono, President Director of PT Toyota Motor Manufacturing Indonesia, Masahiro Nonami, President Director of PT Aeon Indonesia, Toyofumi Kashi, General Manager of PT Asuransi Jiwa Sinarmas MSIG, Yasuharu Nagano and officials from Labor Department Bekasi Regency.(qoi)

“In the industrial area Jababeka, Cikarang, there are more than 100 Japanese companies. United

Tanjung Lesung will be developed into a self-contained city-based tourism industry. While SEZ Morotai will be developed into fisheries, business and logistics industry-based. However, the acquisition of land in SEZ Morotai temporarily has not been fully completed. From a target of 1,101 ha of land acquisition, land acquired still only 300 ha. PT Kawasan Industri Jababeka Tbk (KIJA) become investors’ focus after the government provides incentives for investment in Special Economic Zones (SEZ).

Because, KIJA manage two SEZs namely SEZ Tanjung Lesung located in Banten and SEZ Morotai in Maluku. SEZ Tanjung Lesung of 1,500 ha acquired by KIJA in 2011 through its subsidi-

Currently KIJA income portion of the tourism sector in the SEZ is still classified as extremely small. KIJA revenue is currently dominated by the acquisition of Jababeka Industrial Estate in Cikarang by 99 percent. As of

September 2015, total revenues in the two SEZs also declined. Tanjung Lesung tourism revenue declined 22 percent, while in Morotai down 40 percent. Therefore, the incentive package volume VI of government policy would be helpful.

or 900 ha, and then multiplied by the average selling price of land Rp1.5-2 million,” said Director of PT BWJ Hyanto Wihadhi. “So, it’s around Rp18 trillion. But that’s only from the sale of land, yet the other,” Hyanto Wihadhi added.

Besides tax incentives, in the deregulation policy package volume VI also contained a rule foreigners can own property in SEZ and given the ease of visas for tourists and residence permit.

Meanwhile, for the acquisition of Tanjung Lesung land, KIJA only spend Rp1.5 trillion. Apart from the sale of land, the company also expects sales of property, including housing units and vilatel.

This policy is certainly positive for KIJA, because if the project is completed Tanjung Lesung, KIJA projected to benefit up to Rp16.5 trillion from the difference between the price of land.

Villa in SEZ Tanjung Lesung marketed at a price of US $ 2-4 billion per unit. Up to now, every year, SEZ Tanjung Lesung is able to bring about 250 thousand tourists.(qoi)

“The land area totaled 1,500 ha, but it was gross, net of about 30%

PP Properti Director said this cooperation is a good opportunity for the company, which has had a major advantage in the property, to increase competence in the field of management of industrial estates. Moreover, Jababeka is one of the industrial estate developers who have a long experience and a positive track record in running

the business during this time. Currently, Jababeka has a land bank of 5,600 hectares in Jababeka Cikarang. In addition, as a property developer Jababeka also aspire to build 100 town integrated with industrial areas throughout Indonesia. Jababeka has developed an independent industry-based town in Cikarang, namely Kota Jababeka, which has an industrial area that is integrated with a number of other facilities such as residential and commercial. Kota Jababeka also has a network of public transportation, shopping, recreation and entertainment centers, dry ports, power plants, waste water treatment, and a variety of other supporting facilities integrated as an independent city.(qoi)

Government Must Be Flexible To Develop SEZ Business operators expect the government to be more flexible in drafting regulations in every potential area developed as a special economic zone. President Commissioner of PT Jababeka Tbk., SD Darmono said the development of special economic zones (SEZ) to be accompanied by specific policies for each region that will be developed. According to him, the incentives offered and investment opportunities must be opened as wide as possible . “It should be different incentives between Tanjung Lesung and Morotai for example, because the location is so far apart, investors are certainly in doubt. Now it is like the chicken and the egg, investors are waiting for infrastructure and infrastructure waiting for investors,” he said, Sunday (08/11/2015) The Government issued Government Regulation of Tax Facilities and Ease in Special Economic Zones (SEZ) for the main activities of tourism. Incentives can be granted a tax reduction of development I of 50% -100%, or

may be granted a reduction in entertainment tax of 50% -100%. Darmono said that the private sector is still reluctant to go in for developing SEZs given the opportunity limits are still considered a long breakeven. Government support cannot only refer to the policy, but also the development of infrastructure, or the encouragement for banks to provide low rate of interest. “If the target is foreigners, policies should be friendly to them. Not to mention talking about access to the region, should be easily accessible,” he said. He added that the government should ask potential investors, about what is needed, so that the issuance of the policy is not misdirected. Meanwhile, Director General for Development of Industrial Zoning Ministry of Industry Imam Haryono said that if the location is remote, it is an absolute choice of infrastructure availability. “Incentives becoming less attractive, because it needs it intrastructure for remote locations,” he said.(qoi)

Industrial Estate Incentives Will Give Positive Impact

Impact of Investment Incentive, Jababeka Stocks (KIJA) Become Investors Focus ary PT Banten West Java Tourism Development (BWJ) and PT Tanjung Lesung Leisure Industry (TLLI) for Rp1.5 trillion.

In this cooperation, the two sides agreed to develop an area of 2.58 hectares in the Jababeka industrial area. Later, on the land will be built Riverview Residences, Anami concept consisting of approximately 900 units will be priced at Rp199 million per unit. A very strategic location with direct highway access and have a commercial facility to complement the needs of the Anami occupants.

The government’s plan to provide incentives in the industrial estates outside Java becomes an attractive offer for industrial estate developer. For example, PT Kawasan Industri Jababeka Tbk (KIJA) assess the government’s plan will have a positive impact for the industry. President Commissioner of PT Kawasan Industri Jababeka Tbk SD Darmono, expect that the government must provide an attractive incentive. “We look forward to the incentives for the development of industrial estates,” said Darmono, Sunday (11/15/2015). KIJA itself has industrial estate outside of Java such as Morotai, North Maluku. This developer will develop special economic zones (SEZ) in Morotai. Jababeka plans

to cultivate an area of 1,200 hectares (ha) in SEZ Morotai. The company will develop business in Morotai gradually. In the early stages, Jababeka will build 10,000 homes, targeting the middle class, and the hotel, consisting of 10,000 rooms. Furthermore, the company will build a place of tourism, schools and industrial agriculture, fisheries, and trade. In addition to developing the industrial estates, now KIJA continue to manage against the weakening of the exchange rate rupiah against the US dollar and the economic downturn to improve business performance in terms of revenue and profit. Because the company founded by SD Darmono noted a slowdown in business for the third quarter-2015.(qoi)


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December 2015

Regional Chocolate Products Could Be an Icon of Palu City

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ndustry Minister Saleh Husin said food products, particularly chocolate produce by small and medium industries (SMEs) could be the new icon of Palu City. “Not just fried onions, but I propose to officials Palu mayor if chocolate could also be an icon,” said Minister Saleh while inaugurating the chocolate house and packing house in Palu on Tuesday (11/17/2016). Chocolate products processed by small and medium enterprises (SMEs) in Central Sulawesi is not inferior to the same products from other regions. Even with chocolate produced by chocolate factory from abroad which are widely traded in the domestic market. “Chocolate produced by SMEs in Central Sulawesi was tasty and delicious and has a different scent from other chocolate,” he said.

Moreover, said Minister Saleh, raw material for making chocolate in Palu, using the original cocoa bean production by farmers.

Tourism Development In Morotai Waiting For Infrastructure Development Tourism is one of the main sectors for countries to increase sources of income outside of oil, gas and taxes. No exception for Indonesia as a developing country, with a huge potential for regional tourism to the areas that are still lagging behind.

“In my opinion, Central Sulawesi chocolate very tasty and definitely will be sold on the market,” he said.

Regent of Morotai, Yahya Hasan said, Morotai faces several constraints including the lack of access and basic infrastructure, such as roads, transportation, lodging and so on, tourism development in Morotai waiting for infrastructure development. He hopes that with the enactment of Morotai as Special Economic Zones (SEZ) by the government, will help to reduce the infrastructure limitations.

Therefore, Palu City Government should consider the possibility that chocolate products produced by SMEs Central Sulawesi could become an icon, in addition to fried onions that have been widely known to the public.

To develop and accelerate regional tourism in Morotai, it would hold “Sail Morotai and Expo 2016” to be held October 20, 2016, coincide with the two-year of Jokowi-Jusuf Kalla Government.

The presence of chocolate house and packing house further strengthen the marketing of products of food processing SMEs from chocolate.

Director of Resource Development and the Environment, the Ministry of PDT Faizul Ishom in Jakarta, Monday (11/09/2015) said underdeveloped area has enough potential to attract foreign tourists to Indonesia. The government through the Indonesian Tourism Promotion Board has a program in order to increase the potential of tourism in underdeveloped areas, namely green tourism, creative tourism and low season tourism.

“Mr. Mayor, make this product become an icon of Palu City,” said Minister Saleh.(qoi)

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Minister Saleh Husin observe the cocoa processing.

“We hope that through the development of tourism we will be able to overcome the fundamental problems of regional development for foreign exchange earnings or income of the region,” he said.(qoi)

NTT Will Be Developed For Salt Industry Center

SEZ Maloy Targeted To Operate in 2018

East Nusa Tenggara (NTT) has great potential to be developed as a center for salt production. Based on data from the Ministry of Industry, there is an area of 22,500 hectares (ha) in NTT that can be developed into a land of salt.

Special Economic Zones (SEZ) Maloy claimed to be able to operate in 2018. This was disclosed by the Acting Provincial Secretary East Kalimantan, Rusmadi. According to Rusmadi, SEZ Maloy requires two major infrastructures to operate, the ports and storage tanks.

The potential land is located in Kupang with an area of 6,100 ha, Nagekeo 1,205 ha, Ende 1,205 ha, and Rote Ndao 2,500 ha. In addition to the availability of land, NTT climate will make the harvest of salt can be longer. The quality of the seawater was good. Therefore, the Ministry of Industry encourages NTT immediately set into a special area for the salt industry. This was stated by Head of Industrial Research and Development (BPPI) of the Ministry of Industry, Sudarto, in the Garuda Room,

Ministry of Industry, Jakarta, Tuesday (11/17/2015).

needs to prepare land for salt production center.

“NTT potential for the development of industrial salt, because the quality of sea water, climate weather support, and extensive land has not been maintained. It was very strategic, NTT needs to be designated as a special area for the development of salt,” said Sudarto.

“The important thing is the readiness of the region to prepare the land for investment. Land in the eastern region needs a special approach to be released,” said Sudarto.

According Sudarto, the establishment of NTT as a special area of the salt industry needs to be realized, so that the supporting infrastructure such as roads and ports can be built. “With that determination, all relevant stakeholders will focus on building infrastructure for salt industry in there,” he said. Besides supporting infrastructure, the local government also

“It is targeted to operate in 2018. We are waiting for the construction of docks and storage tanks. According to the plan, will begin construction in 2016,” said Rusmadi, Sunday (11/15/2015) For the construction of the port, said Rusmadi, has no environmental problems. While, for storage tanks are still waiting for help from the Ministry of Industry.

If the land and the infrastructure have been prepared, there will be many investors who are interested to develop the salt industry in the province. In addition, the large capital required for the development of the salt industry in the province.

“Environmental issues are no longer a problem. The Ministry of Industry has also committed to build a storage tanks,” he said. Currently, the East Kalimantan provincial government is working on the infrastructure in the area of Maloy, namely roads, telecommunication towers, offices, to the provision of clean water.

Sudarto said, need capital of about Rp300 billion to build 1,000 ha of salt or Rp300 million per ha. Therefore, private investors should be encouraged to enter.(qoi)

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“For clean water we have agreed with the DPRD to be budgeted as a multiyear contract,” he said.

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Salt farmers harvesting salt from the sea.

Rusmadi said, until now there are 18 investors who are interested in joining in SEZ Maloy. “There are national and multinational investors. We are prioritizing investors engaged in the oleochemical first,” he said.(qoi)


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December 2015

11

Regional South Manokwari Build Special Foreign Tourists Can Watch Solar Eclipse Markets for Agricultural Products from Yacht in Belitung Travelers have been rushing booked tickets and lodging to Indonesia in March 2016, because at that moment there was a total solar eclipse. One of the wonders of nature, this time only happen in Indonesia, is a total solar eclipse. The total eclipse can be seen in the Indonesian archipelago and occur every 250 years. It is estimated that, the eclipse will occur on the date of 8 to 11 March 2016. Foreign tourists are already preparing for this event so that the flights and the hotels were full.

Senggang Market at Manokwari. South Manokwari Regency Government, West Papua Province, build a specialized market of agricultural products in the region, which is beneficial to trigger the harvest from farmers, said the Head of Regional Economy, Regional Secretariat of South Manokwari Regency, Bondan.

sell their agricultural products. This development in order to motivate farmers to be more productive,” he said.

“This development as well as to spur the growth of micro-economy of trade and agriculture,” he said in Manokwari, Sunday (11/02/2015).

The market development is utilizing the South Manokwari Regional Budget (APBD) fiscal year 2015.

Market development located at the afternoon market estimated to be completed by the end of December 2015. ” Afternoon Markets, all this time are crowded by the farmers who

In the development program, the Government of South Manokwari also prepared 84 main tables that can be used by farmers.

Market building will be built using lightweight steel construction in an area of 399 hectares in the region Ransiki District. South Manokwari Acting Regent, Lazarus Indou, previously said that the Government of South

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Manokwari plans to open 1,000 hectares of land to increase the production of rice, soybeans, sweet potatoes, cassava, pulses and vegetables. “We are trying, so that expansion can be done in 2016, by leveraging the Regional Budget (APBD) of fiscal year 2016,” he said. South Manokwari, he said, will seek a maximum of three years in order to realize self-sufficiency. “Like rice, for example, we sought to South Manokwari not bring rice from other regions. Instead, we will work so that the district became one of the suppliers of rice in the province of West Papua,” he concluded.(qoi)

“We offer other ways that come with yachts. One of the entrances could be from the Belitung,” said the former Coordinating Minister for Maritime Indroyono Soesilo on the sidelines Socialization of Indonesia Destination Update road show in Langkawi, Malaysia, Sunday (11/08/2015). Travelers with yachts can go through the Belitung and also enjoy the magical natural phenomenon. No need to worry about running out of flight or lodging. Why Belitung, because the target market comes from Singapore and Malaysia. If you want to find somewhere other than Belitung, there are still some other marina are ready to be visited.

Tanjung Tinggi Beach at Belitung.

“Marina was ready and able to see a total solar eclipse is Belitung, Ternate, Palu and Palembang,” said Indroyono which is an Honorary Advisor to the Ministry

of Tourism as well a Special Team to Accelerate Marine Tourism. Each marina is able to accommodate around 100 yachts. This yacht can also recline for days or

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months. The ease of regulatory entry of foreign yachts to Indonesia becomes an important point of interest of foreign tourists. The response has been positive

during the socialization, the expected target of 1,500 yachts and 460 cruises who came to Indonesia in 2016 can be realized.(qoi)


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December 2015

International Malaysian Ringgit, Worst Performer Among Asian Currencies in 2015 Companies in Southeast Asia’s third-biggest economy had sold 44.6 billion ringgit ($14.5 billion) of notes by the end of September, the least since 2010, according to data from Bank Negara Malaysia. Imports of investment goods shrank 26.4% through August, the most since 2009, a trend that Barclays Plc doesn’t see reversing soon. Rising costs of imports and consumer sentiment plunging to below global financial crisis lows have made borrowing for investment a tough sell. The Malaysian economy grew at the slowest pace in almost two years in the second quarter as plunging commodity prices and a political scandal made the ringgit the worst performer among Asian currencies this year.

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Malaysian Ringgit, the national currencies of Malaysia.

Vietnam’s Bank Bad Debts

“If you’re a company importing machinery for expansion, it may not be viable anymore given the currency weakness and slowing

growth,” said Rahul Bajoria, a Singapore-based economist at Barclays. “This could mean slower private investment going forward, something we have already seen in the past three quarters.” The slump is also hurting syndicated loans. Global banks lent just US$1.4 billion to Malaysian borrowers in the three months through Sept. 30, the slowest quarter in more than six years, data compiled by Bloomberg show. Excluding dollar notes from the sovereign, Petroliam Nasional Bhd and Export Import Bank of Malaysia, the leftover US$2.2 billion is the lowest mainly private issuance since 2011. The cost of foreign bonds for Malaysian companies has risen as the ringgit dropped 23% in the past year, the currency’s worst performance since the Asian Financial Crisis. The ringgit tumbled 32%

in the12 months following March 1997, prompting a wave of corporate defaults and eventually leading to capital controls by the Malaysian government. “The public and private sectors of Malaysia were never frequent issuers” offshore, said Florian Schmidt, head of debt capital markets for SC Lowy in Hong Kong. “I presume that the desire to avoid currency mismatches – remember 1997 – plays a significant role.” Malaysia’s central bank left interest rates unchanged for an eighth meeting on Nov. 5 as policy makers juggle risks to economic growth while contending with the fragile currency. The ringgit also weakened last week after Federal Reserve Chair Janet Yellen said a December rate hike would be a “live possibility” if US economic data continue to point to growth and firmer prices.(awp)

Uncertainties in Myanmar Impact The Real-Estate Market The world’s obsession with Myanmar’s general election on Sunday (11/8/2015) has overshadowed everything else that has happened in the country this year. Besides the political uncertainty, Myanmar has suffered much economic disruption, owing to the delay of larger investments and the effects of severe floods. The real-estate market in Yangon is no different. Construction of a number of large projects was postponed as demand faltered. The government’s decision on July 7 to revoke the planning permits for five projects near its iconic Shwedagon Pagoda has added to market uncertainty.

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Ngan Hang Nha Nuoc Viet Nam, The State Bank of Vietnam. Vietnam is viewed as one of Southeast Asia’s spots during a tricky and uncertain time for emerging markets. Since the global financial crisis, its banks have been shackled by bad debts that have dragged on growth. According to FT Confidential Research, an investment research service at the Financial Times, the roots of Vietnam’s bad debt problems are still not being properly addressed. The much-trumpeted fall in the official NPL figure mostly reflects the shuffling of bad debts from one balance sheet to another.

Vietnamese authorities are renowned for fudging data. In 2014, global rating agencies estimated Vietnam’s NPL rate was about 15 per cent. The roots of Vietnam’s banking problems go back to the early 2000s following the liberalisation of its economy, when credit grew at an average of more than 25 per cent a year. Much of this lending went to Vietnam’s network of state-owned enterprises (SOEs), which still dominate the economy and account for between 60 and 70 per cent of outstanding credit.

Significant volumes of bad debt remain locked up in the real estate and other non-core businesses of many powerful SOEs, but given the wide range of businesses involved — from mining to shipping to hotels — and the lack of transparency, it is hard to gauge its overall level accurately. Moreover, according to FT Confidential Research, too many vested interests connected to the Communist party have too much to lose and actively undermine efforts to address Vietnam’s opaque bank ownership structure.

In theory, private sector players cannot own more than 20 per cent of any one bank, but this is often circumnavigated, including by party members, and these vested interests present a significant obstacle to reform. Vietnam’s bad debt problem is in reality a manifestation of a deeper institutional malaise, making serious root-and-branch reform unlikely, regardless of who is chosen as Vietnam’s new leader at next year’s Communist party National Congress.(qoi)

In the residential sector, developers found it increasingly difficult to sell units as investors stayed on the sidelines and foreigners continued to be locked out of the market. Similar weakness was also observed in the serviced-apartment sector. The rents for Yangon’s serviced-apartments fell 1.4% quarter- on-quarter in 3Q2015. In the office sector, the office rental index has declined 40%

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Building construction at Myanmar. from its peak of two years ago. At its peak, the average transacted prices of strata office spaces in major commercial buildings were US$350to US$400 per sq ft.

Even if market rent were to decline further to US$5 per sq ft a month and prices peak at US$400 per sq ft.(awp)

Thailand’s Critical Water Situation

Singapore’s Private Home Sales Fall 30 Percent

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Private home at Singapore.

Sales of private homes by developers fell 30 per cent last month from a year earlier, as property cooling measures kept enthusiasm low in the island’s housing sector.

ongoing economic uncertainties that are now looming, apart from just the existing property cooling measures,” said Alice Tan, the head of Singapore research at consultancy Knight Frank.

Data compiled by the Urban Redevelopment Authority showed developers sold 546 homes last month, compared with 785 in October last year. Two new project launches pulled the figure 60 per cent higher than the 341 homes sold in September, when sales had nearly halved from a year earlier.

She expects developers to sell 6,500 to 6,800 private homes this year, compared with about 7,300 last year. Analysts say an interest rate rise in the United States is one factor that could prompt the government to review measures, which have particularly hit speculative and foreign demand.

Singapore introduced higher stamp duties and tighter lending since 2009 to cool homes prices.

Prices of private homes fell for the eighth consecutive quarter to 4½-year lows in the third quarter.(awp)

“Weak market still prevails, it could mainly be due to the

Low water level at the Chao Phraya Dam in Chai Nat Province, Thailand. Agriculture and Cooperatives Minister General Chatchai Sarikalaya said although the amount of water in the Chao Phraya and Mae Klong Rivers combined is higher than expected by 570 million cubic meters, the overall water situation still remains critical. The water in 4 major dams, which have 4.2 billion cubic meters of water in total, will have to be managed carefully to make sure there is enough for household

consumption and farming activities until April next year. In Sukhothai province, provincial governor Piti Keawsalab has instructed related officials to pump up water from the Yom River and store it in a 300- rai lake called Nong Pla Mho in preparation for the next dry season. Meanwhile, Lampang authorities are going to help residents affected by water shortages in 13 districts. The villagers are urged

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to conserve water and use it efficiently. The authorities will also ask the Ministry of Commerce to donate rice in the government stockpile to families who could not grow rice for their own home consumption this year. Farmers have also been advised against growing off season rice as there is only 40 million cubic meters of water left in Kew Lom Kew Kho Ma Dam.(awp)


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December 2015

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Highlights Sugiharto: Indonesian Economy Will Grow Above 5% in 2016 Year 2015 will pass a few weeks away. However, the Indonesian economy is not experiencing significant growth throughout 2015. Based on data from the Ministry of Finance, Thursday (11/26/2015) Indonesia's economic growth in the first quarter of 2015 by 4.7 percent, the second quarter of 2015 amounted to 4.67 percent and the third quarter of 2015 by 4.73 percent. This means quite difficult to reach five percent by the end of this year. Entering 2016, Bank Indonesia launched Indonesia's economic growth in 2016 is around 5.2 to 5.7%. SBY era former Minister of State Enterprises Sugiharto quite optimistic Indonesia's economic growth could reach that number. "Economic growth in the 5.2 to 57% it is logical, not grandiose.

Indeed, in 2015 during the first 6 months there is no improvement in the nomenclature of the Ministry, so that the budget absorption becomes slow. But I believe in 2016, the achievements of DIPA can reach 90-95%," he said in an event titled Indonesia Economic Outlook 2016 held by Indonesia Taiwan Business Council (ITBC) in Jakarta.

In 2016 is also not an easy year. According to him, there will be a number of challenges to be faced by the government of both external and internal.

Moreover, he continued, inflation in 2015 was the lowest in recent years, amounting to 3%. He also expects inflation in 2016 will rise 4 percent.

From internal factors, it is reminiscent of the government to enhance the security and stability of the country.

With rising inflation, he argued there was no reason for the government not to cut interest rates next year. "Next year inflation will rise 4%. So there is no reason for the government not to lower interest rates as Fed Rate. Interest rates should have had to go down but not drastically," he said.

"From external, first we are faced with how quickly the recovery of China and Japan. Secondly, hopefully Fed rate hikes do not create panic," he said.

Especially on the issue of ISIS crowded lately, because if Indonesia is safe, investors will be more confident. On the political side, he hopes President Jokowi can be decisive in solving various cases in Indonesia. "Essentially President Jokowi must be firm," he closed.(qoi)

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Indonesia’s Economic Outlook in 2016 at Marcentile Athletic Club Jakarta on Thursday, November 26th 2015.

President University and Careers Australia BKPM: President Jokowi Fully Sign MoU to Deliver International Qualifications Supports Efforts to Reduce Logistics Costs in Indonesia be difficult for Indonesia to face the challenges that the ASEAN Economic Community will introduce from 2016” added Rektor Dr Setiawan.

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Mou signing between President University with Careers Australia. Indonesia’s first English language speaking higher education institution, President University and leading Australian training institute, Careers Australia, today announced a joint-venture to deliver international business qualifications for young Indonesians and expatriates and to assist businesses at JABABEKA with up to date skills. “There are significant opportunities for our current students and businesses at JABBEKA to gain additional skills” said the Rektor

of President University, Dr Drs Chandra Setiawan , Phd during the signing of the MoU at the Ritz-Carlton, Jakarta on Wednesday (11/18/2015). Dr Setiawan said Indonesia still lacks adequate professional and competitive human resources, a fact that has been identified as one of the strategic issues facing Indonesia. “Without professionals with English language skills and international qualifications it will

The ASEAN Economic Community will permit skilled professionals from other ASEAN countries to work in Indonesia, which will increase competition for some employment opportunities, particularly in multinational companies. To ensure that Indonesians are able to compete for these positions, obtaining international qualifications in English will be important. S.D. Darmono, the Chairman of JABABEKA Group said that the Careers Australia qualifications to be offered at President University would also assist businesses at JABABEKA to upgrade the skills of their staff. “Indonesians are participating in a globalized world and it is important that they have international skills that are recognized

around the world and help companies to increase productivity and compete with others” he said. “We are delighted to work with President University which is well-known for teaching in English and for its relationships with the business community” said Careers Australia CEO Walter Gilmore. Based at JABABEKA, President University has excellent classroom and library facilities for their programs. “Students who successfully complete the business programs we are offering will receive an internationally recognized Australian qualification which will assist the graduates to work for multi-national companies in Indonesia and elsewhere in Asia and around the world. The first classes will commence at President University in mid 2016.(qoi)

In accordance with his commitment, President Joko Widodo in his working visit to the industrial area and port Java Integrated Industrial Estate (JIIPE) states that the industrial area has a very big role to reduce the cost of logistics. The latest, the Government through the BKPM and the Ministry of Finance has prepared a variety of licensing facilities and a customs facility for an industrial area. Head of the Investment Coordinating Board (BKPM) Franky Sibarani said, based on testimony from investors, logistics problems became one of the main concern.

"Integrated industrial area could be a solution to cut logistics costs significantly," he said on Thursday (11/12/2015). JIIPE integrated and connected to the port and the railway line to be one example of how logistics costs can be lowered. This is because investors can directly utilize a standard dock facility with the depth of 13 meters. JIIPE has 2,933 hectares

Java

JURNALMARITIM.COM

Integrated Industrial Estate (JIIPE) mock up.

industrial area, equipped with 406 hectares sea port area and 77 hectares residential area. BKPM has prepared the construction direct investment permit, which is the complement of the 3 hour investment services, to support the development of the industrial area. "Various facilities will be more complete with the support of the Directorate General of Customs who will form Bonded Logistics Center (PLB) in JIIPE," said Franky. PLB formation by the Customs Directorate adds strategic

aspects for JIIPE industrial area. The total value of industrial estate development investment is Rp50 trillion. Currently, JIIPE is entering the construction period, which is conducted by two state-owned companies, namely PT Hutama Karya and Waskita Karya. In this construction process, JIIPE managed to absorb 1,500 direct labors, with 90% of them come from communities around the industrial area. As for the overall tenant, is expected to absorb approximately 60,000 labors.(qoi)

U.S. – Indonesia Strategic Relations by: Hendra Manurung The state official visit to Washington D.C by Indonesia President Joko Widodo on 26-27 October 2015 showed remarkable decision to support U.S presence in Asia Pacific. As Secretary John Kerry highlight, Indonesia has played a very significant role in the region and in the ASEAN, where both countries contribute a lot to create a dynamic situation to bring peaceful stability in the region and in the world. U.S. government emphasized that the Trans-Pacific Partnership is the economic component and the crown jewel of the rebalance. At the meeting, President Joko Widodo and President Barrack Obama shared a lot of similar approaches to getting things done. They are both people who are doers, people who believe in bureaucratic reform, regulatory reform, moving the process and confidence to breaking down the barriers of bureaucracy.

U.S.-Indonesia relations have taken on increasing importance. Indonesia is the world’s 3rd largest democracy, the largest Muslim-majority population, the 10th largest economy in the world by purchasing power, possesses the world’s greatest marine biodiversity, and its second greatest terrestrial biodiversity. Indonesia borders the South China Sea, which contains the world’s busiest sea lanes and sees over USD 5 trillion in cargo and as much as 50 percent of the world’s oil tankers pass through its waters each year. The United States was one of the 1st countries to establish diplomatic relations with Indonesia in 1949, following its independence from the Netherlands. Indonesia’s democratization and reform process since 1998 has increased its stability and security, and resulted in strengthened U.S.-Indonesia relations. However, U.S. needs to secure its economic relations with Indone-

sia and vice versa. For U.S leaders, Indonesia plays a critical role with respect to ASEAN Single Market 2015, the South China Sea, climate change, and other specific related issues. Since 2010, it has been five years that Indonesia and U.S. develop their comprehensive partnership, launched by President Barack Obama and President Susilo Bambang Yudhoyono in November 2010. It’s a long-term commitment to elevate bilateral relations by enhancing cooperation and upgrading strategic consultations on key bilateral, regional, and global issues. Secretary of State Hillary Rodham Clinton and Foreign Minister Marty Natalegawa co-chair an annual Joint Commission of the U.S.-Indonesia Comprehensive Partnership. Secretary Clinton and Foreign Minister Natalegawa held the inaugural session of the Joint Commission in September 2010

in Washington, D.C., and the second meeting on July 24 in Bali, Indonesia.

promoting dialogues that will advance peace, tolerance, and respect for diversity.

Cooperation under the Partnership is outlined in a Plan of Action consisting of three pillars, i.e.: (1) Under the political and security pillar, both countries are working together to strengthen bilateral defense and security cooperation through June 2010 Defense Framework Arrangement and to combat non-traditional challenges to regional security; (2) Under the economic and development pillar, they are seeking expanded trade and further reduction of trade barriers; broadened development cooperation; collaboration on energy policy and renewable energy development; and progress on climate and environment challenges; (3) Under the socio-cultural/educational/science and technology pillar, they are expanding academic exchanges; launching a five-year effort to improve the quality of higher education in Indonesia; expanding scientific and research linkages; and

Thus, six working groups have been charged with coordinating strategies and highlighting policy priorities under the Plan of Action. These are existing forums on energy; security; and trade and investment as well as newly created groups on democracy; civil society; education; and climate and environment. At the same time, the Partnership is much more than the sum of its working groups and comprises expanding senior level visits; military exercises; cooperation on the environment; educational exchanges; and the development of institutional relationships, not only at the government level, but also between civil society, academia, and business. Pursuant to the Partnership, the two governments are developing habits of consultation on key international issues, such as international economic challenges

in the G-20, climate change, and diplomatic questions. Both expect to add other high-level dialogues as further development of the Comprehensive Partnership.

billion in 2014. Principal U.S. exports to Indonesia include transportation equipment, including aircraft, food and agricultural products, machinery and equipment, and chemicals.

Indonesia, the largest economy in Southeast Asia, has enjoyed steady economic growth over the past decade, averaging between 5 to 6 percent, with moderate inflation; rising foreign direct investment; and relatively low interest rates. Indonesia’s annual budget deficit is capped at 3 percent of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100 percent shortly after the Asian financial crisis in 1999 to less than 25 percent today.

Boeing signed a USD 22.4 billion deal for 230 commercial aircraft, the largest commercial sale in their history, with Indonesia’s Lion Air. There are significant challenges to bilateral economic relationship: the implementation of protectionist laws, limited infrastructure, and an unevenly applied legal structure.

Indonesia’s 100 millions growing middle class, strong domestic demand, large and youthful population, and need for new infrastructure makes it an important potential market for U.S. products and investment. U.S. bilateral goods trade with Indonesia exceeded USD 27

Under Joko Widodo leaderships, Indonesia wants to develop national digital and creative industry, which boosted transaction value close to USD 12 billion (2014), before only reached USD 8 billion. Indonesia was predicted become the biggest digital market in Southeast Asia by 2020 with USD 30 billion.


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December 2015

Event Gallery President University MoU with Careers Australia The MouU between President University and Careets Australia was held at The Ritz Carlton Jakarta on Wednesday, November 18th 2015. The event was attended by Chairman of PT Jababeka SD Darmono, Rector of President University Dr Drs Chandra Setiawan, Phd, CEO of Careers Australia Walter Gilmore.

Industrial Goes To Campus Industrial Goes To Campus was held at President Lounge Menara Batavia Jakarta at Tuesday, November 24th 2015. This event was attended by participants from President University’s students, with speaker from CEO ofPT Rittal Indonesia, Frick Hadi.This event is presented by PT Jababeka, President University, The President Post and Majalah Indonesia Industri.

Grand Opening Momiji Restaurant Grand Opening Momiji Restaurant at Jababeka Senior Living @D’Khayangan on November 25th 2015. The grand opening event attended by all directors Jababeka Group, Katsuhiko Suzuki an ISO Quality Management, Environment and HR, Touko, Kiyoko and Kazuko Hora from Developers of Infrastructure, Facilities and Parks, as well Masami Kitamura and Daiki Kasugaha from JETRO.


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December 2015

15

Event Gallery Momiji Matsuri 2015 Komunitas Alumni Jepang Indonesia (KAJI) and PT Jababeka present “Momiji Masturi 2015�. The event was held at Kota Jababeka, Cikarang on November 7th and 8th, 2015.The festival is supported by the Embassy of Japan in Indonesia, The Jakarta Japan Club (JJC),Japan External Trade Organization (JETRO), Japan National Tourism Organization (JNTO), The Overseas Human Resources and Industry Development Association (HIDA), Japan Foundation (JF), and the Japan Society in Cikarang.

Topping Of Apartement New Elvis Topping off ceremony New Elvis Tower was held at New CBD Jababeka Residence on Thursday, November 5th 2015. This event was attended by President Director of PT Graha Buana Cikarang ng Sutedja Sidarta Darmono, Director of Jababeka Setiawan Mardjuki, New Elvis Tower Project Leader Rommel, Representation from President University Josep Ginting and all construction team.

Cikarang Dry Port Field Report Cikarang Dry Port (CDP) at Kota Jababeka Cikarang on November 3rd 2015 expressed readiness for loading and unloading containers into alternatives spot to help unravel the tangled when loading and unloading goods (dwelling time) at the port of Tanjung Priok. The CDP Field Report attended by Cikarang Customs Head of upervision and Excise Medium Djanurindo Wibowo, Managing Director PT Cikarang Inland Port Benny Woenardi and all invited guests.


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