INDONESIA TO ADVANCE DEVELOPMENT IN BORDER AREAS

By Andi Abdussalam

Jakarta, May 30 (Antara) - The Indonesian government is concentrating on developing the border areas to advance physical development, increase economic activities, empower local people and improve their welfare in areas which share their borders with neighboring countries.          For this purpose, the central government has allocated a budget of Rp16 trillion to build and strengthen border regions this year.     "The government will focus on building and strengthening border regions in 2015," Home Minister Tjahjo Kumolo said in Manado, North Sulawesi, Friday.          The budget will be focused on the development of infrastructure, military and police defense, and other facilities, he noted.  As a result, border regions will become the base and gateway of economic growth in the country.          "Previously, we built border areas for four years. Unfortunately, it was developed only 16 percent," Kumolo remarked. There are a total of 187 sub-districts in the border regions of Aceh, Papua and East Nusa Tenggara, he pointed out.          The minister told the press that the development of border areas constituted a key to advancing Indonesia.          "President Joko Widodo is giving special attention to the preservation of regional integrity, the upholding of state sovereignty, the maintenance of national security and defense, the utilization of natural resources and the execution of equitable development," Kumulo added.

INDONESIA MUST GAIN FROM ITS OWN FISHERIES POTENTIALS

By Andi Abdussalam

Jakarta, May 29 (Antara) -- With the vast maritime territory and rich fishery resources of the country, Indonesians hope that the government maximizes the development of sea potentials so they can benefit from the marine wealth.         President Joko Widodo, who was inaugurated as Indonesia's seventh president last October, claimed in December that the country loses some Rp300 trillion annually from illegal fishing activities and that there are around 5,400 illegal vessels operating in Indonesian waters as a result of lack of decisive action taken by the government.         Therefore, the administration of Jokowi, as the president is fondly called, is focusing its attention on maritime development to regain the country's past maritime glory.         So far, Indonesia has yet to tap into the potential and is still weak in protecting its marine sector, which has a potential of generating US$1.2 trillion a year in revenue.         Indonesian food expert Florentinus Gregorius Winarno said in Semarang, Central Java, on Thursday that the people of the country had yet to be able to enjoy the benefits of their marine resources maximally because the largest portion of Indonesian fish was taken by foreign fishermen.         "Of the entire marine potential, only about 5 percent is enjoyed by Indonesian people," Winarno added.

BI REVISES GROWTH FOR 2015, SETS NEW ONE FOR 2016

by Andi Abdussalam

Jakarta, May 29 (Antara) -- Bank Indonesia (BI) has estimated Indonesia's economic growth in 2016 to be within the range of 5.4 to 5.8 percent.          This range is similar to its earlier prediction for 2015, which has been revised down to 5.1 percent.          Previously, the central bank set Indonesia's economic growth at a range of 5.4 to 5.8 percent for 2015 but later revised it down to 5.1 percent. It has now predicted growth of 5.4 to 5.8 percent for 2016.          Last week, BI said it would maintain its growth forecast at 5.4 percent but would see later whether it needed to be revised.          "BI is of the view that the country's economic growth this year will at least be at the lower limit of its 5.4 to 5.8 percent prediction. However, the bank will wait and watch whether it needs to review the figures in the second quarter of 2015," BI Governor Agus D. W. Martowardojo stated last week (May 20).         The BI revised down its previous prediction of 5.4 percent (lower limit) to 5.1 percent on Thursday.         "In 2015, Bank Indonesia predicts that Indonesia's economic growth will reach 5.1 percent, which is still better than that in 2014 (5.0 percent)," Martowardojo said here on Thursday.         At the same time, BI also set its projection of economic growth at a range of 5.4 to 5.8 percent year-on-year (yoy) for 2016.

GOVERNMENT CONTINUES EFFORTS TO CONTROL COMMODITY PRICES, STOCK

By Andi Abdussalam

Jakarta, May 28 (Antara) -- The government is doing its best to curb the prices of food commodities and to ensure their availability in the face of the Muslim fasting month of Ramadan.          Additional efforts are being made as costs usually rise during this period due to higher consumption.          The government will focus on the availability of stock and stability of food commodity prices, ahead of the holy fasting month and Idul Fitri festivities.          "We hope in this year's Idul Fitri celebration, there will be no inflation because inflationary pressures are usually higher ahead of Ramadan and Idul Fitri. Now, we ask the government to implement necessary policies so that inflation does not surge," Chief Economic Minister Sofyan Djalil said.          Indonesian Muslims are expected to begin the fasting month on June 18, and it will last till July 16. The post-fasting month will be celebrated with festivals popularly known as Lebaran or Idul Fitri on July 17 and 18.          To maintain the stability of food commodity prices, the government will introduce certain measures.          "The government will adopt any measure or policy to ensure the availability of food commodities and the stability of their prices," Trade Minister Rachmat Gobel said on Wednesday.

GOVT GEARS UP TO PREVENT GRIDLOCKS DURING EID EXODUS

by Andi Abdussalam

Jakarta, May 27 (Antara) -- The annual exodus of Idul Fitri (Eid) travelers, which takes place about a week before and after the Muslim fasting month, has always created traffic congestions in several parts of the country.          This year, the number of Idul Fitri travelers heading to their hometowns using land, sea and air transportation systems to celebrate the post-fasting festivities of Lebaran is predicted to increase by 2 percent to 20 million people.          Land transportation is the busiest means as travelers often find themselves trapped in gridlocks. Therefore, the government has started preparing measures to address the problem before the peak days.          The peak traveling days are usually one week before and after the Idul Fitri holidays or Lebaran. The fasting month of Ramadhan this year is from June 18 to July 16.       The government, through relevant ministries, is preparing measures to tackle traffic jam issues during the homebound and return flows of travelers, who are expected to use both private and public modes of transport.          The number of travelers using private vehicles is predicted to increase 5.8 percent, while those using public transportation are estimated to drop by 5.8 percent this year.

INDONESIA NEEDS TO PROTECT ITS MEDICINAL HERBS

By Andi Abdussalam

Jakarta, May 26 (Antara) -- Indonesia, a major global producer of medicinal herbs (jamu), needs to protect its jamu products in the face of the free trade area under the implementation of the ASEAN Economic Community(AEC).          Indonesia has developed some three thousand types of jamu, herbal medicines believed to contain medicinal properties that can cure diseases since time immemorial. It also serves as an alternative form of medication to modern drugs.          The appeal for protecting Indonesia's jamu products was made by producers in the country at the opening of their Seventh National Meeting at the State Palace on Monday.          According to PT Sido Muncul, one of the country's noted jamu producers, jamu industries hope that the Indonesian government will provide protection in the face of the AEC, which will be implemented at the end of the year.          "In the face of the ASEAN Economic Community, we hope the government will supervise and protect the country's jamu industries," President Director of PT Sido Muncul Irwan Hidayat said at the Presidential Palace on Monday.

BI CONVINCED ECONOMY WILL GROW BASED ON ITS PREDICTION

By Andi Abdussalam

Jakarta, May 26 (Antara) - Although the economic growth is lower than the first-quarter forecast for 2015, Indonesia's central bank, Bank Indonesia (BI) is convinced that the country's economy will grow based on its estimates this year.          The BI still maintains its projection that the Indonesian economy in 2015 will at least reach the lower limit of its estimate at 5.4 percent.          The BI has projected that the country's economy this year will grow at a rate between 5.4 percent and 5.8 percent. However, the economic growth in the first quarter was recorded at only 4.71 percent.          "BI is of the viewpoint that the country's economic growth this year will at least be at the lower limit of its prediction at 5.4 percent. It will be at the lower limit of its 5.4-5.8 percent predication. However, BI will wait and watch whether it needs to make a review in the second quarter of 2015," BI Governor Agus D.W. Martowardojo remarked last week, (May 20).

PEOPLE ASKED TO REMAIN CALM OVER SYNTHETIC RICE ISSUE

By Andi Abdussalam

Jakarta, May 24 (Antara) - While the law enforcing and other relevant agencies are still conducting investigations, the people are called on to remain calm over the circulation of rice suspected to have made of plastic substances.         The appeal to people to remain calm was made by Vice President Jusuf Kalla on Saturday who said that the Indonesian people should not be overly worried about by the synthetic rice issue.         "I don't know what the rice looks like and the motive behind its circulation. But I think the people should not be too worried," Kalla said at Sunda Kelapa Mosque in Jakarta on Saturday.          He said that the government was giving careful attention to the issue, studying the causes why the synthetic rice was circulated in a number of regions. "I don't think it is a big problem. If it is based on an economic reason, why should it be using plastic materials?" he questioned.          Early this week, the people in Bekasi District, West Java, were surprised by the issue of rice containing plastic substances sold at the local 'Mutiara Gading Timur' market.

KADIN PRIORITIZES GROWTH OF INDONESIA'S EASTERN REGIONS

By Andi Abdussalam

Jakarta, May 23 (Antara) -- The Indonesian Chamber of Commerce and Industry (Kadin) is shifting its focus on developing businesses in  Indonesia's eastern regions to boost and advance the economy in the relatively underprivileged areas.          In its efforts to encourage business development in the eastern parts of Indonesia, Kadin will hold a national working meeting to promote potentials in the regions, organize funding for investors and form integrated business provinces.          During the national working meeting, which will be held on Monday, May 25, and will be opened by President Joko Widodo, Kadin will hold discussions on the theme, "Trade & Investment Forum: East Indonesian Regions."    The forum will involve foreign and domestic investors, executives of state-owned companies (BUMN) and other businesspeople from the nation.         "We will offer projects that are ready to be developed and provide recommendations on effective policies to expedite development in eastern regions in Indonesia," Kadin Coordinator and Deputy Chairman for Eastern Areas Annar Salahuddin Sampetoding said in a written statement in Jakarta on Saturday.

GOVERNMENT STRIVING TO MEET RP519 TRILLION INVESTMENT TARGET

by Andi Abdussalam

Jakarta, May 22 (Antara) -- The Indonesian government, through the Capital Investment Coordinating Board (BKPM), is doing its utmost to achieve its investment target of Rp519 trillion for 2015.         Efforts the BKPM is making to achieve the target include organizing a roadshow in at least three cities and holding activities such as a regional investment potential show (GPID) and a regional investment forum as part of it. It is also introducing an Inland Free Trade Agreement (Inland FTA) scheme to boost investment.         With intensive promotional efforts, the BKPM hopes to attract investment of some Rp27.8 trillion in Sulawesi, Rp75.2 trillion in North Sumatra, Rp75 trillion in Kalimantan and Rp7.2 trillion in Maluku this year.         Organized from May 18 to May 22, the roadshow was held in the three cities of Medan (North Sumatra), Manado (North Sulawesi), and Mataram (West Nusa Tenggara).         "We are now organizing a roadshow in the three cities of Medan, Manado and Mataram," BKPM Chief Franky Sibarani said in a press release received by Antara in Jakarta on Sunday last week.

GOVERNMENT STILL NEEDS TO POPULARIZE NEW PERTALITE FUEL

By Andi Abdussalam

Jakarta, May 21 (Antara) - The government still needs to popularize its new Pertalite gasoline before launching it in the market as a national fuel, as a large section of consumers are not yet well informed about it.          "Many people are not yet well informed about Pertalite gasoline. They will be confused if it is launched in the market," economic observer Winata Wira of the Raja Ali Haji Maritime University, Tanjungpinang, Riau Islands, stated on Wednesday.          Wira remarked that fuel is a basic requirement, hence the government, through the state-owned oil and gas company Pertamina, should adopt a sensitive approach while implementing a new fuel policy. Since fuel is a very sensitive commodity, so Pertamina should consider the psychological aspects related to the consumers before launching it in the market.          "Pertamina should make every effort to take effective steps to convince the consumers. It has to introduce what Pertalite is and its benefits such as its environmental friendliness and efficiency that will encourage consumers to use it," Wira explained.

POLICE INVESTIGATING SUSPECTED SYNTHETIC RICE

by Andi Abdussalam

Jakarta, May 20 (Antara) - The local authorities are investigating the suspected circulation of synthetic rice that has sparked widespread uproar after reports on the discovery of plastic substances in rice that caused nausea and dizziness among the consumers.          The government is still investigating the reported fake rice, Trade Minister Rachmat Gobel stated on Wednesday.          "Yesterday, I already assigned my staff to conduct a laboratory test on the suspected fake rice to confirm whether it really contains plastic," he noted.          The Directorate General of Standardization and Consumer Protection at the Ministry of Trade is conducting an investigation after the Bantargebang police, Bekasi, West Java, found the suspected synthetic rice.          The widespread reports have created furor across the country, triggering panic among residents about the rice they consumed had contained plastic that might endanger their health.          "We are now investigating and checking it in Bekasi. We have sent the sample to the laboratory to examine it and are still waiting for the result of the examination," Director General of Standardization and Consumer Protection Widodo affirmed on Tuesday.          He remarked that the Ministry of Trade had never issued a license for the import of synthetic rice as his ministry could not issue a license for rice import without a recommendation from the Ministry of Agriculture.

INDONESIA HOPES TO EXPAND ITS COCOA GLOBAL MARKET

By Andi Abdussalam

Jakarta, May 16 (Antara) -- Indonesia, the world's third-largest cocoa producer, is intensifying its promotional activities to expand its cocoa exports to global markets, particularly in Europe.          As part of efforts to expand its cocoa global market, Indonesia is participating in a conference organized by the Federation of Cocoa Commerce (FCC) in London. It began on May 12 and will be held till May 17.          Vice President Jusuf Kalla is leading the Indonesian delegation, which includes the heads of coco-producing regions in Indonesia.          Among the heads of the Indonesian coco-producing provinces are Governor of South Sulawesi Syahrul Yasin Limpo, Governor of Southeast Sulawesi Nur Alam bin Isrudin, Governor of West Sulawesi Anwar Adnan Saleh, and Deputy Governor of West Sumatra Muslim Kasim.          The vice president said his mission at the conference was to increase the cocoa business in Indonesia so the commodity can expand its base in European markets.          "Cocoa is our third-largest export commodity after palm oil and rubber. The price of nearly all commodities dropped recently except that of cacao. This indicates that the global demand for cocoa is increasing," he affirmed.

GOVERNMENT STILL UNCERTAIN ABOUT RICE IMPORTS

By Andi Abdussalam

Jakarta, May 15 (Antara) - The government will still need to wait until May-end this year before deciding to import rice due to the difficulties being faced by the State Logistics Agency (Bulog) to procure rice stocks from the farmers.          Bulog's current rice stock stands at only 1.2 million tons, lower than the safe level of 2.0 million tons. However, it is facing hurdles in increasing the stock by procuring rice from farmers. Bulog buys rice from the farmers based on a reference price sanctioned by the government.          However, traders or speculators in the market are offering a higher price as compared to the government-sanctioned price. Bulog is now encountering problems while purchasing rice due to a high price triggered by non-simultaneous harvest seasons.          Regarding the lack of stocks, Vice President Jusuf Kalla affirmed on Friday, last week, (May 8) that the government is always open to importing rice, especially when it is facing a shortage of the commodity.          "The tap for rice import is always open, in case our production does not meet the demand, and it is required to make up for the deficit," he stated in his office.          Citing an example, he pointed out that if there is a shortage of rice during the Islamic fasting month in June, it is possible that the country will import rice to meet the requirement.

INDONESIA PROMOTES TOURISM, MARITIME POTENTIAL IN MILAN EXPO

by Andi Abdussalam

Jakarta, May 14 (Antara) -- Indonesia is taking part in Italy's six-month-long World Expo Milano 2015 (WEM 2015), one of the world's biggest events after the Olympics and the World Cup, to promote its maritime and tourism potentials.         Throughout the expo, which began on May 1 and will be held till October 31, the Indonesian pavilion will show 'Indonesia Today and in the Future' and promote Indonesian products and maritime potential.         Indonesia hopes to attract two million tourists from Europe after promoting its tourism potential all through the event.         "Visitors of World Expo Milano 2015 can witness Indonesia's tourist destinations and enjoy their beauty through an oculus media show that will make it appear as though they are traveling in Indonesia," Nus Nuzulia Ishak, the director general for National Export Development of the Ministry of Trade, said during the premiere of the "Virtual Journey of Indonesia" at the Indonesian pavilion in Milan on Thursday, May 7.          To promote the potential of the Indonesian maritime sector, Indonesia is launching a one-month-long voyage to WEM in Italy. Codenamed Kartika Jala Krida, the voyage is aimed at promoting Indonesian culture around the world.

BUSINESSES EXPECTED TO GROW WITH INSURED CREDITS

By Andi Abdussalam

Jakarta, May 13 (Antara) - Small and medium enterprises (UKM) should not be apprehensive regarding their business credits as the government has attempted to minimize credit risks through cooperation between a state-owned money-lending agency and a state credit insurance company.          The Agency for Revolving Fund Management for Cooperatives and Small and Medium Enterprises (LPDB-KUKM) has cooperated with state-owned credit insurance company Perum Jamkrindo to minimize the risks of non-performing loans (NPL) of UKM.           Last week, a cooperation agreement between the LPDB and Perum Jamkrindo was signed by the leaders of the two government institutions in Jakarta, on Wednesday.          Besides this, the LPDB-KUMKM has also cut its interest rate on loans from 6 to 5 percent this year. The LPDB's interest rate has been reduced to 5 percent considering that it is a non-profit institution aimed at offering business stimulus in the form of revolving funds to small businesses.

INDONESIA DEVELOPS SEAWEED DOWNSTREAM

By Andi Abdussalam

Jakarta, May 12 (Antara) - Indonesia, a major world seaweed producer which exports about 90 percent of its seaweed production, is developing the downstream sector of the commodity to tap its added value in the export market.          For this purpose, the government will soon build 10 factories to process seaweed into flour and chips that would increase the added value of the commodity. So far, the country exports the commodity in the form of unprocessed dry seaweed.          "The country's production of dry seaweed at present is around 10 million tons per year and 90 percent of the production is exported," Maritime Affairs and Fisheries Minister Susi Pudjiastuti said on Monday.          Based on this fact, the Indonesian Seaweed Association (ARLI) hopes that the Indonesian government would formulate a program for the development of seaweed in the downstream sector to optimize the commodity's potential in various regions for the benefit of the country's economy.         "We support the government's efforts to develop seaweed in the downstream sector, and we hope that the government will prepare the  program maturely and seriously," Safari Azis, the chairman of the ARLI, stated over the weekend.

HOUSING PROGRAM FOR LOW-INCOME PEOPLE IN PROGRESS

By Andi Abdussalam

Jakarta, May 11 (Antara) -- The Indonesian government is developing houses under its one million housing development program to provide 603,516 shelters to the country's low-income people (MBR) and 396,464 others to non-MBR families.          President Joko Widodo, who is popularly known as Jokowi, recently (April 29) launched the one million housing development program simultaneously in nine regions through a video conference centered in Ungaran in Semarang, Central Java.          In Ungaran, the president conducted the ceremonial groundbreaking for the construction of 103,135 houses as part of the first phase of the construction of one million houses.          In the first phase, the government will build 331,693 houses for low-income people in the nine regions of Semarang, North Sumatra, South Sumatra, Jakarta, Banten, West Java, East Java, Central Kalimantan and South Sulawesi.          In these regions, the laying of the cornerstones was carried out simultaneously, marking the beginning of the construction of one million houses. It was done through a video conference with the president.          Of the 603,561 units of houses prepared for low-income people, 331,693 will be built in the first phase, 98,020 in the second phase and 173,803 in the third stage.          Public Works and Public Housing Minister Basuki Hadimuljono had said that his ministry will commence work this year to reduce the large backlog in the implementation of the housing program.

ECONOMIC GROWTH TO REBOUND IN SECOND QUARTER

By Andi Abdussalam

Jakarta, May 10 (Antara) - The Indonesian economy grew at a slower pace in the first quarter of 2015 with a growth rate lower than that in the corresponding period in the previous year.          The low global oil prices, declining of exports, weakening of the rupiah and the late disbursement of government budget for development have among other things, been attributed to the slower pace of the economy.          The Young Indonesian Businessmen Association (Hipmi) has attributed the current economic slowdown in the country to slow disbursement of state budget funds for various infrastructure projects.          The economic slowdown indicated by the first-quarter economic growth was inseparable from the weak performance of budget realization at central and regional levels, chairman of the Himpi executive board Bahlil Lahadalia said on Tuesday.          Although Indonesia's economic performance has slowed down over the past few months due to a number of factors, yet the government is convinced the country's economy will grow better in the second quarter of 2015.          In the second semester, the government will begin disbursing funds for infrastructure development. Finance Minister Bambang Brodjonegoro said the absorption of budget for infrastructure had been low because the Revised 2015 State Budget (APBN-P) was endorsed by the House only in February, 2015.

BUSINESS OF BOND ISSUANCE EXPECTED TO IMPROVE IN Q2

By Andi Abdussalam

Jakarta, May 9 (Antara) -- Despite delaying the issuance of bonds in Indonesia due to the economic gloom last year, several companies see better prospects in the second quarter of 2015 even though it is still overshadowed by economic slowdown.          An analyst of PT Pefindo Riset Konsultasi, Guntur Tri Hariyanto, said that the prospects of issuing corporate bonds in Indonesia in the second quarter of 2015 will be better, although the downward trend of the economy and the weakening of the rupiah will continue to prevail.         "Since early this year, the performance of Indonesian corporate bonds has been one of the best in the world, despite being overshadowed by risks at home," Hariyanto stated on Friday.          He added that domestic bonds received positive response from investors because they offered high coupon interest amid the downward trend in the coupon values of global bonds.          For instance, the yield of the government's 10-year bonds, which serve as a reference of bond coupons in the country, reached 7.7 percent as compared to that of the United States' market, which offered 2.1 percent.

GOVERNOR'S IDEA TO LEGALIZE PROSTITUTION SPARKS CONTROVERSY

By Andi Abdussalam

Jakarta, May 6 (Antara) - Alleged rampant online prostitution has led Jakarta Governor Basuki Tjahaya Purnama (Ahok) to propose an idea to legalize, certify, and localize prostitution in a bid to tackle the social vice.          However, the governor's idea has stirred up a hornet's nest as it runs counter to morality. Condoning, let alone legalizing, certifying, and localizing prostitution just means justifying slavery and human trafficking as prostitution is not free from these practices.          "Within the system of prostitution, there is slavery. With or without certification, you can find exploitation, criminalization, human and even child trafficking there," Minister of Social Affairs Khofifah Indar Parawansa stated on Thursday last week.          Therefore, the minister voiced his objection to the Jakarta administration's plan to provide certification to sex workers in the capital city.          Earlier, the Jakarta governor had recommended that the city administration should legalize prostitution in certain areas.          The governor noted that legalizing prostitution in certain areas will provide an alternative solution for it.          "Legalizing a prostitution site would be a solution because no matter how hard we try, we will never be able to eradicate prostitution. It will always exist as long as humans exist," Governor Ahok emphasized.

JOKOWI EXPECTED TO RESHUFFLE WORKING CABINET

by Andi Abdussalam

Jakarta, May 5 (Antara) -- Six months into his term, President Joko Widodo, who was installed as Indonesia's seventh president last October, is expected to reshuffle his cabinet ministers as they are believed to be underperforming.          Of late, some quarters have been voicing the need for Jokowi, as the president is popularly known, to reshuffle his Working Cabinet to make his government run more effectively.          "As seen in the performance of the Working Cabinet, only a few ministers have been active and carrying out their duties based on the tasks given by President Jokowi. Others give the impression that they did not perform the given tasks," a sociologist of the Gorontalo State University, Rudy Harold said last month.          There have been indications that Jokowi will finally review his cabinet ministers, as pointed out by Vice President Jusuf Kalla on Monday.          Kalla confirmed that the government will reshuffle its current cabinet to improve its performance.         "Yes, it will be done as performance needs to be improved, and it will need people with the required capabilities," he stated at his office but did not mention when the reshuffle will take place.