PERTAMINA PREDICTS SURPLUS IN DIESEL PRODUCTION

By Andi Abdussalam

Jakarta, Nov 28 (Antara) - Under obligation to implement the government's mandatory biofuel mix of 20 percent diesel fuel, state-owned oil/gas firm Pertamina has predicted that it will have pure diesel production surplus of about 400 thousand tons per month.          The government, through the Energy and Mineral Resources Ministry (ESDM), has over the past two years issued a regulation requiring Pertamina to implement a mandatory biofuel mix of diesel oil.          The mandatory biofuel mix policy is expected to have broad implications such as the absorption of 5.3 million kiloliters of biodiesel, which is some 4.8 million tons of the country's crude palm oil (CPO) production, and the retrenchment of US$2.54 billion of foreign exchange from fossil fuel import cuts.          The government through the ESDM minister's regulation number 12/2015 has raised the mandatory biofuel mix of diesel from 10 percent (B10) in 2014 to 15 percent (B15) this year.          It is planning to raise it further to 20 percent (B20) in 2016.          For this purpose, Pertamina established a partnership with 11 biodiesel producers to meet the need for the fuel from November 2015 to April 2016.

GOVERNMENT BEGINS TRANS-SULAWESI RAILWAY PROJECT

By Andi Abdussalam

Jakarta, Nov 28 (Antara) - The Indonesian government is committed to developing railway projects in provinces across the country, particularly outside Java Island, in an effort to increase connectivity and reduce transportation costs.          President Joko Widodo (Jokowi) Wednesday, November 25, inspected the construction of the first phase of the 2000-kilometer (km) Makassar-Manado Trans-Sulawesi Railway Project, which is being built at a cost of Rp40 trillion and is expected to commence operations in 2018.          "The railway service is expected to commence operations in 2018 and will connect the two capitals," the President told newsmen after the inspection of the first phase.          The first phase of the Trans-Sulawesi section stretches 145 km from Makassar, the South Sulawesi provincial capital, to Parepare Municipality, and is expected to begin operations by the end of 2016.          The government was committed to providing infrastructure in the regions across the country, the President emphasized.          "It is not only here but also in other places. In Papua, we are still conducting a study, which is expected to be completed in the next quarter, so that the construction may possibly start next year," he noted in Barru, a district town of South Sulawesi which is blessed by the project.

INDONESIA TO EXPEDITE INFRASTRUCTURE PROJECTS

By Andi Abdussalam

Jakarta, Nov 27 (Antara) - The government hopes to start implementing infrastructure projects by early 2016 in an effort to stem the continuing slide in the economy.          It is in the process of finalizing government-private partnerships (KPS) and foreign loan-funded infrastructure projects that will be implemented soon. Some 1,600 infrastructure projects under the Ministry of Public Works and Public Housing are ready for auction.          Minister of National Development Planning and Head of the National Development Planning Board Sofyan Djalil said on Wednesday that the projects are ready for auction and construction can start by early 2016.          "Those (ministries/state institutions), who have received a huge budget for infrastructure development, have been responsive," he noted on the sidelines of an economic seminar.          The government is expediting the implementation of the infrastructure projects because this can help overcome certain problems in the economy, which is still slowing down.          According to Finance Minister Bambang Brodjonegoro, infrastructure development is part of the solutions that will help stem the economic slide.         "The economic slowdown is still taking place. We must have a reliable sector that can halt it. We should boost government expenditure in infrastructure development," the Finance Minister noted here on Thursday.

RI READY TO LEAD GLOBAL EFFORTS TO OVERCOME GLOBAL WARMING

by Andi Abdussalam

Jakarta, Nov 26 (Antara) - Indonesia will ask developed nations to help reduce the world's carbon emissions and show its seriousness in overcoming global warming during the Paris climate conference being held next week.          Indonesia is also ready to take the lead in global efforts to overcome climate change issues, setting a target to reduce its own emissions by 30 percent by 2030.          "The Indonesian President will raise several issues during the 21st Conference of Parties (COP-21) of the U.N. Framework Convention on Climate Change (UNCCC). This will also show Indonesia's recognition and grave concern for the climate issue and that it is ready to take the lead in overcoming global warming," Indonesian Foreign Ministry Spokesman, Arrmanatha Nasir said here on Thursday.          The ministry spokesman said Indonesia as an island state is one of the countries that is most affected by the impact of climate change.          For this purpose, Indonesia has prepared documents and plans to reveal a special mission during the climate change conference in Paris.

INDONESIA MAXIMALLY PREPARED TO FACE AEC

by Andi Abdussalam

Jakarta, Nov 25 (Antara) - Indonesia and other ASEAN member countries have made maximal preparations to enter the common free trade era, when the implementation of the ASEAN Economic Community (AEC) will begin on December 31, 2015.          Although many still cast doubts, Indonesia, on its part, says it is now ready to face the AEC as it has completed 94.1 percent of the preparations.          "I think 94 percent is the maximal preparations we have made," President Joko Widodo (Jokowi) stated on the sidelines of the ASEAN Summit in Kuala Lumpur on Sunday.          Therefore, Indonesia is now ready to face the AEC, which will be implemented beginning next January.          "If we calculate all areas that the ASEAN members need to work on, we have completed 94.1 of the required preparations," President Jokowi noted at the Kuala Lumpur Convention Center.          He said that some of the ASEAN members had completed 92 percent, 93 percent, and even 94 percent of the preparations.          "This means that like it or not, everything must be prepared," he affirmed.      Indonesia should be able to derive benefits from the implementation of the AEC.          "We cannot expect to get something (easily). All should be seized." Jokowi remarked.          The Indonesian president emphasized on improving efficiency and competitiveness and stressed on revising regulations that create hurdles.         The president noted that if all aspects are taken into account, then the number of areas that had yet to be worked on could reach several hundred.

FISHERY POLICY MUST BENEFIT SMALL-SCALE FISHERMEN

by Andi Abdussalam

Jakarta, Nov 24 (Antara) - The Ministry of Marine Affairs and Fisheries (KKP) has claimed to have achieved success in fighting fish poaching in the country's waters, thereby resulting in an increase in fish catch.         While illegal fishing has been drastically reduced, the KKP also made assurance that fish catch transshipment at sea for direct sales overseas has been stopped. All the caught fish will first be taken to the country's fishing ports.     However, this success should also benefit the 7.8 million poor fishermen living in the coastal areas in order to improve their welfare.          The People's Coalition for Fishery Justice (Kiara) has also called on the KKP to pay attention to traditional fishermen in the coastal areas. It should not merely focus on implementing measures to improve fish stocks in the waters but also increase the prosperity of fishermen.          "We need to emphasize that the management of fisheries resources should not be confined to solely handling fish stocks but also protecting and empowering fishermen, so that the well-being of poor fishermen in the coastal areas would be improved," Kiara Secretary General Abdul Halim noted on Monday (Nov. 23).

CHINA SUPPORTS RI'S LIQUIDITY AND INFRASTRUCTURE PROJECTS

by Andi Abdussalam

Jakarta, Nov 23 (Antara) - Liquidity assistance worth US$20 billion provided by China, through a bilateral currency swap scheme, will strengthen Indonesia's liquidity amid the current global economic turmoil, according to Bank Indonesia (BI), the Indonesian central bank.         "This is part of the second line of defense. If there is pressure, it would provide liquidity support," BI Governor Agus Martowardojo stated on Friday.         Therefore, the BI governor hailed the bilateral currency swap arrangement, which increased from the previous scheme valued at US$15 billion.     He said the liquidity support assistance indicated increasing investor confidence in Indonesia's economy, which has been increasingly improved in line with the development of the domestic economy.         "The confidence is reflected in the decrease in the rupiah's depreciation from 19 percent year-to-date (ytd) last August to 10 percent ytd now. This displays the increase in confidence," noted Agus.         Recently, the governments of Indonesia and China held a bilateral meeting on the sidelines of the G20 Summit in Antalya, Turkey, last week (Nov. 15).

LAKE TOBA FESTIVAL EXPECTED TO BOOST FOREIGN TOURIST ARRIVALS

By Andi Abdussalam

Jakarta, Nov 20 (Antara) - Inaugurated by Tourism Minister Arief Yahya on Thursday, the four-day Lake Toba Festival 2015 is expected to attract at least one thousand foreign tourists and 55 thousand local visitors to North Sumatra's lake resort.          "The festival is expected to further promote Lake Toba at the international level to boost foreign tourist arrivals. The annual number of foreign tourists arriving at Lake Toba has so far been recorded at 200 thousand," Tourism Service Head of North Sumatra Elisa Marbun stated on Monday.      Marbun noted that the Lake Toba festival's implementation this year is expected to increase the number of foreign tourists visiting North Sumatra in 2016.     Moreover, the festival this year is being held in Berastagi, Karo District, which is well known for its beautiful panoramas, including scenic mountainous landscapes as well as vegetable and fruit gardens.         Traditionally, seven districts around the strategic area of Lake Toba take turns to host the festival. After the Toba Samosir District hosted the event in 2014, it is now (2015), Karo District's turn to organize it, Ikrimah Hamidi, a member of the North Sumatra Legislative Assembly (DPRD), stated last week.

BANKS ACCELERATE DISBURSEMENT OF MICRO LOANS

by Andi Abdussalam

Jakarta, Nov 20 (Antara) - Banks assigned by the government to distribute micro loans (KUR) to small and medium-sized enterprises (SMEs) are accelerating efforts to provide credits, so that the amount would reach over Rp20 trillion this year.          Moreover, the amount of credits that had been extended until November 17 by distributor banks -- Bank BRI, Bank Mandiri, and Bank BNI -- only reached Rp11.7 trillion, or less than half of the government's target to extend KUR worth Rp30 trillion this year.          "The distributor banks are making various efforts to expedite the realization of KUR to small businesses," Braman Setyo, the deputy for business restructuring and development of the Ministry of Cooperatives and SMEs, stated here on Thursday (Nov. 19).          He noted that the distribution of KUR credits until November 17, through Banks BRI, Bank Mandiri, and Bank BNI, had only reached Rp11.7 trillion. Therefore, the three executing banks are doing their best to expedite the provision of KUR, so that the amount disbursed this year could reach over Rp20 trillion.

BETTER INFRASTRUCTURE NEEDED TO REDUCE LOGISTICS COSTS

by Andi Abdussalam

Jakarta, Nov 19 (Antara) - Indonesia needs to build adequate infrastructure to facilitate the flow of 150 thousand tons of goods per day and reduce its logistics costs, which still account for 26.4 percent of the Gross Domestic Product (GDP).          Transportation Minister Ignasius Jonan stressed that the government must ensure the development of infrastructure in an effort to reduce logistics costs.          "I am confident that if infrastructure is developed and improved, logistics activities will become more efficient and effective," Minister Jonan said during a "Tempo Economic Briefing" in Jakarta on Tuesday.          The minister said that even development and improvement of infrastructure across the country will smooth the dispatch of goods and reduce the logistics cost that the people should spend.          "We all know our ultimate goals in this respect. We want our logistics activities to be more efficient and more effective. The problem of infrastructure and logistics should be solved not only by the private sector, but also by the government and state-owned enterprises (SOEs)," the minister said.

POLICY PACKAGES EXPECTED TO BOOST GROWTH NEXT YEAR

by Andi Abdussalam

Jakarta, Nov 19 (Antara) - The series of economic policy packages announced by the government since September will start impacting the economy in the fourth quarter of 2015 and boost growth to about six percent next year.          Coordinating Minister for Maritime and Resources Rizal Ramli believes that several instruments in the government's economic policy packages will encourage aggressive economic growth, taking it to six percent in 2016.          The government has, since September, announced six chapters of the economic policy packages and is expected to soon unveil the seventh installment of the package.          "I think that we would be able to grow by six percent in 2016. Our target over the next two years is that our growth should surpass that of India and the Philippines," Rizal stated in a presentation at the Center of Reform on Economics' (CORE's) Economic Outlook 2016, in Jakarta on Wednesday.

GOVERNMENT TO PROMOTE SMEs IN TOURISM, EXPORT-ORIENTED BUSINESSES

By Andi Abdussalam

Jakarta, Nov 17 (Antara) - The government has been urged to lend support to small and medium-sized enterprises (SMEs) as they use local raw materials and absorb numerous workers and serve as the strong economic pillars of the nation.          "In the face of the ASEAN Economic Community (AEC), we hope that the government would work to develop micro, small, and medium-scale enterprises," Dr M. Firmansyah, an economic observer of the University of Mataram, West Nusa Tenggara, stated on Friday, last week.           After all, the progress of SMEs will benefit the local people as their products will also be consumed locally, he noted.           Therefore, the government has urged banks to provide financing support to SMEs doing business in the tourism sector and also to offer funding assistance to export-oriented SMEs.          The government, through Bank Indonesia (BI/the central bank), has indicated its efforts to prepare incentives for banks, which will increase their credits to SMEs doing business in the tourism sector.

GOVT DEVELOPS 10 DESTINATIONS TO ATTRACT MORE TOURISTS

by Andi Abdussalam

Jakarta, Nov 14 (Antara) - Besides waiving visa requirements for 90 countries, the Indonesian government is also focusing on the development of 20 tourism destinations in an effort to boost its foreign exchange revenues from this sector to US$20 billion.          "The development of tourism destinations is expected to increase the state foreign exchange earning to US$20 billion in the next five years, from the current US$10 billion," Governor of Bank Indonesia (BI) Agus Martowardojo said on the sidelines of a coordination meeting between the central-regional governments and Bank Indonesia (BI) in Yogyakarta Friday (Nov 13).          One of the challenges in the development of tourism is how the central and regional governments, as well the private sector, can make a tourism destination attractive, according to the central bank governor. This is needed due to the fact that the neighboring countries in Southeast Asia are also preparing their tourism destinations.          The Indonesian government has set a target to attract more foreign tourists and increase its annual foreign exchange earnings in the tourism sector from currently US$10 billion to US$20 billion in the next five years.

PRESIDENT YET TO DECIDE SECOND CABINET RESHUFFLE

by Andi Abdussalam

Jakarta, Nov 14 (Antara) - Even though a second cabinet reshuffle has become a public discourse of late, President Joko Widodo has yet to decide to revamp his cabinet immediately again after he replaced a number of ministers last August.          "Last night the President and the Vice President met with the leaders of political parties grouped in the Great Indonesia Coalition(KIH). A cabinet reshuffle will not be imminent but the President and Vice President know when it will be carried out," Cabinet Secretary Pramono Anung said in East Java Friday night.          Promono was reluctant to speak much about the possible replacement of a number of ministers who are considered to have not yet contributed well to the government. He only stated that the government now was trying to strengthen its support to political parties so that they will be strong in the Parliament and in the government.          Therefore, supporting political parties will be reinforced, according to Pramono. So, the term of the KIH, which is an alliance of political parties supporting Jokowi during the election, will no longer be popularized.          "It is now time not to use the KIH term, but support political parties," Pramono said, as there are political parties which will become new supporters of the government.

COMPANIES GIVE POSITIVE RESPONSES TO GOVT TAX CUTS

by Andi Abdussalam

Jakarta, Nov 13 (Antara) - The government step to offer cuts on income tax for firms willing to revaluate their assets, as promised in its economic policy package, has received positive responses from many companies.         Finance Minister Bambang Brodjonegoro is convinced that numerous companies have been interested in conducting asset revaluations to obtain tax incentives in the form of tax cuts.         "Many companies, particularly in the financial sector, have positively responded to the policy and expressed their intention to carry it (the revaluation) out this year," the finance minister said on Monday.          Through this policy, the government offers tax incentives in the form of tax cuts on income tax from the previous 10 percent to the reduced six percent, four percent and three percent.          Bambang said that positive responses from companies convinced the government that it will be able to increase its tax receipts from companies carrying out asset revaluations. Companies will happily pay their income taxes after seeing reductions from 10 percent to six, four and three percent.

INDONESIA STILL NEEDS FURTHER PREPARATIONS TO FACE AEC

by Andi Abdussalam

Jakarta, Nov 10 (Antara) - Indonesia still needs to improve in the economic field to face the challenges and capitalize on the opportunities posed by the ASEAN Economic Community (AEC), which will be implemented beginning next January.          "Some quarters still harbor doubts regarding the readiness of Indonesian businesses in the face of the ASEAN free market," Chief Economic Minister Darmin Nasution stated on Wednesday, last week (Nov. 4).          The minister remarked that in the economic field, Indonesia still has several notes on areas of improvement, which have to be prepared in the short term and long run. Therefore, preparations are very important in the face of the AEC. This is particularly crucial for major economic issues.          "The volume of intra-ASEAN trade has increased significantly, and Indonesia must face it with further preparations," noted the chief economic minister.          He affirmed that the AEC offered opportunities as the ASEAN region is a huge market, with a combined population of 600 million and a gross domestic product (GDP) of US$2.4 trillion in 2014. This is attractive to investors.

SIXTH POLICY PACKAGE FOCUSES ON SPECIAL ECONOMIC ZONES

by Andi Abdussalam

Jakarta, Nov 10 (Antara) - The government announced its sixth economic policy package on Thursday, last week, focusing on the development of Special Economic Zones (SEZs), water exploitation, and implementation of the National Single Window Service (INSW).          The policy on incentives for investors is aimed at reinvigorating the economy of the country's rural areas through the SEZ development scheme.          "Based on this package, the government has designated eight areas as SEZs to develop the local resources," Chief Economic Minister Darmin Nasution stated while announcing chapter six of the government's economic policy package during a press conference at the Presidential Office in Jakarta on Thursday (November 5).          National Development Planning Minister Djalil had earlier noted that the government, through the policy, will provide income tax incentives, licensing facilities, easy license extension, immigration incentives, and import tax incentives for investors in SEZs.          On tax incentives, Djalil remarked that the government will provide income tax cuts. However, he did not reveal the percentage of cuts on income tax as well as on the time frame for the tax holiday facilities.

BETTER GROWTH FORECAST IN FOURTH QUARTER

by Andi Abdussalam

Jakarta, Nov 6 (Antara)- Indonesia's economy is expected to perform better in the fourth quarter of this year in the wake of the higher expenditure made by the government, the impact of economic policy packages and investment development projects.         The improvement in the economic performance is reflected in the upward trend in growth, recorded at 4.73 percent in the third quarter of this year. In the second quarter, the economic growth had fallen to 4.67 percent from 4.72 percent in the first quarter.         Therefore, there is optimism that the economic growth in the fourth quarter will be better.         Finance Minister Bambang Brodjonegoro has forecast that Indonesia's economic growth in the fourth quarter would reach 4.8 percent. Bank Indonesia (BI, or the central bank) has also made a similar predication.         BI has predicted that the economy will grow by 4.85 percent in the fourth quarter.         The Central Bureau of Statistics (BPS) expects that Indonesia's economic growth in the fourth quarter of this year will be better than in the third quarter when it was recorded at 4.73 percent.         "We hope that the economic growth in the fourth quarter will be higher because the capital expenditure in the third quarter was beyond expectation," BPS Deputy for balance and statistical analysis, Suhariyanto, said on Thursday.

INDONESIA BETS ON INCREASED INVESTMENT FROM INDIA

By Andi Abdussalam

Jakarta, Nov 5 (Antara) - With Indian Vice President, Mohammad Hamid Ansari, visiting Indonesia to discuss the expansion of economic relations, hopes have risen that India will ramp up investment in the country.          Vice President Jusuf Kalla said this while addressing the visiting Indian dignitary and the accompanying business delegation at a business forum held in Jakarta on Tuesday, reiterating that Indonesia is the right place to invest.          "Similar to India, Indonesian businesses are now spreading across the world and the country is also a good place for India to invest," he stated at the Indonesia-India Business Forum.          He further noted that Indonesia is currently intensifying its efforts to build cooperation with developing countries in the world, and therefore, now is the right time to invest in the country.          In view of the several similarities existing between the two countries, he believed that bilateral cooperation would run smoothly.          Indonesia's eagerness to attract and increase more investment from India is also reflected in the statement issued by the Capital Investment Coordinating Board (BKPM).          The BKPM is committed to optimizing Indian investments in Indonesia. This is important, considering that Indian investment has risen by 44 percent during the January to September period this year, compared with the previous year.

RI, FINLAND STEPPING UP BILATERAL TIES

by Andi Abdussalam

Jakarta, Nov 4 (Antara) - Indonesia and Finland are moving closer to stepping up bilateral relations, focusing on renewable energy and economic cooperation.         "We welcomed 11 top Finnish companies which want to do business in the fields of energy, information technology," Indonesian Prresident Joko Widodo (Jokowi) said in a joint statement with Finnish President Sauli Niinisto at the Merdeka Palace on Tuesday.          Bringing along with him executives of 11 top Finnish firms, President Niinisto is on a visit in Indonesia to discuss various topics of mutual concern, including regional and global issues as well as economic cooperation.          In a meeting on Tuesday, Indonesian President Joko Widodo (Jokowi) and Finnish President Sauli Niinisto agreed to cooperate in various fields.          "We welcomed 11 top Finnish companies which want to do business in the fields of energy, information technology and infrastructure," Jokowi said.          According to Indonesian Foreign Minister Retno LP Marsudi, both leaders discussed several bilateral matters, particularly cooperation focused on renewable energy and information technology.          "Indonesia and Finland agreed to explore cooperation in the fields of renewable energy and information technology. In terms of renewable energy, we will utilize the peatland areas," Marsudi stated.

INDONESIA DOES NOT NEED TO IMPORT FISH

by Andi Abdussalam

Jakarta, Nov 3 (Antara) - As part of the government's economic policy packages, the Minister of Trade has issued Trade Minister's Decree No. 87/2015 which regulates the import of certain products, including processed fish.          However, some quarters hold that the decree will disadvantage local manufacturing industry and domestic fish products.          A number of associations from the industrial circle have asked the government to cancel the Trade Minister's decree because they thought it would threaten the national industry and make domestic products less competitive.          "We have strongly stated that the Trade Minister's decree which was issued on October 15, 2015 is not siding with the domestic industry at all," General Chairwoman of the Indonesian Cosmetics Companies and Association, Putri K Wardani, said on Monday (Oct 26).          Even Minister of Marine Affairs and Fisheries Susi Pudjiastuti was upset, saying she was not involved in the decision making on an issue that partly concerned fishery products.          She said that twice in the past, her ministry was not consulted while formulating trade regulations on goods which also included products under the jurisdiction of the Ministry of Marine Affairs Fishery Resources. The first instance was when a regulation regarding import of salt was formulated, and the second was regarding a trade regulation about processed fish import.