INDONESIA ENTERING RICE HARVEST SEASONS

by Andi Abdussalam

Jakarta, Feb 29 (Antara) - Targeting production of some 76 million tons of unhusked rice this year, Indonesia is entering a rice harvest season which is expected to yield 14.52 million tons of hulled rice.          "The grand harvest season is forecast to take place in the March - April 2016 period," Andi Muhammad Syakir, the head of the research and development center of the Ministry of Agriculture, said in Makassar, South Sulawesi, Monday.           Syakir made the remarks when reading out a written statement of Agriculture Minister Amran Sulaiman on the occasion of a simultaneous rice grand harvest in seven provinces in Indonesia.           In South Sulawesi, the function was centered in Sappae Village, Wajo District.  The seven province where the simultaneous grand harvests were conducted on Monday are Central Java, East Java, North Sumatra, and South Sumatra, in addition to South Kalimantan, West Nusa Tenggara (NTB) and South Sulawesi.          Minister Amran Sulaiman attended the grand harvest in Cilacap District, Central Java, during the simultaneous harvest events.          Overall, the Ministry of Agriculture has set a production target for unhulled rice at 76.226 tons, Andi Muhammad Syakir said.

PEOPLE WARNED OF PROXY WAR IN LGBT CAMPAIGN

By Andi Abdussalam

          Jakarta, Feb 27 (Antara) - The people are being warned of a proxy war amid pros and cons on the current issue of sexual orientation of lesbian, gay, bisexual and transgender (LGBT) people now allegedly seeking official state recognition.

         The emergence of the LGBT issue, which is seeking recognition in Indonesia is part of a proxy war. The war is launched to weaken and control a nation without the need to mobilize military forces, Defense Minister Ryamizard Ryacudu suspected.

         "I have written an article 15 years ago on modern wars, namely low cost wars. This (proxy war) has the same model," the minister said at his office Tuesday (February 23).

         The proxy war threat is dangerous to Indonesia because other nations do need to wage a war face-to-face. Therefore, the people are obligated to watch carefully the LGBT supporters who asked for legal recognition for their community, he said.

GOVERNMENT LOWERS INTEREST RATE FOR SMALL BUSINESSES

By Andi Abdussalam

Jakarta, Feb 26 (Antara) - Micro and small-scale enterprises (SMEs) are one of the country's economic pillars which are expected to compete in the frontline of the ASEAN Economic Community (AEC) era.          In an effort to increase the country's economic resilience, the government is developing and empowering SMEs by providing them with a low interest rate through its micro-economic loan program (KUR).          The government has lowered the interest rate of KUR for SMEs from 22 percent to 9.0 percent in order to empower small businesses in the country, Minister of Cooperatives and Small-scale Businesses Anak Agung Gusti Ngurah Puspayoga said.         "The government, through the Ministry of Cooperatives and Small-scale Businesses, will further cut the KUR rate for SMEs from the current 9.0 percent to 7.0 percent in 2017," Minister Puspayoga said in Ngawi, East Java, last weekend (February 19).

GOVERNMENT TO CUT BUDGET EXPENDITURE BY 10 PERCENT

by Andi Abdussalam

Jakarta, Feb 26 (Antara) - The Indonesian government is contemplating on cutting down its routine budget expenditure in 2016 by some 10 percent due to a predicted decline in tax revenues and drop in oil prices.          In anticipation of the failure to meet the state's revenue target, the government is likely to cut its budget expenditure by Rp200 trillion of the targeted revenues in the state budget totaling Rp2,096 trillion. If realized, the revenue target in the state budget will be reduced to some Rp1,900 trillion.          Vice President Jusuf Kalla stated that the discourse on the reduction of expenditure for ministries/state institutions should be raised as the government needed to evaluate the revenue performance in the state budget.          "If the tax revenue goes down, the budget expenditure will also automatically be reduced," the vice president noted at the Indonesia Summit 2016 in Jakarta on Thursday.

CAPITAL INFLOW EXPECTED TO DOUBLE THIS YEAR

By Andi Abdussalam

Jakarta, Feb 24 (Antara) - The government's step to launch a series of economic policy packages and the effort by the Indonesian central bank (Bank Indonesia/BI) to lower its benchmark rate are expected to boost foreign capital inflows to Indonesia.          The BI has forecast that the capital inflow of foreign investment will increase significantly this year compared to that recorded in 2015.          "Capital inflow this year is expected to increase two folds from that in 2015," Director of Monetary and Economic Policy of the BI Solikin M. Juhro was quoted as saying in Bandung, West Java, by RepublikaOnline on Saturday.          Based on the Indonesian Balance of Payments (NPI), the capital inflow amounted to US$16.7 billion in 2015, which drastically dropped from US$26 billion in 2014.          However, the capital inflow this year is expected to double the figure recorded in 2015, thanks to the various measures adopted by the government to improve the investment climate in Indonesia.          "Until mid-February of 2016, a total of Rp33 trillion (some US$2.5 million) of capital inflow has been recorded in Indonesia," noted Solikin.

INDONESIA TO BRING BANKING RATE DOWN TO SINGLE DIGIT

by Andi Abdussalam

Jakarta, Feb 24 (Antara) - In order to make the country's economy more efficient and competitive as it faces the ASEAN Economic Community, the Indonesian government is formulating steps to bring down banking interest rates to a single digit.          Vice President Jusuf Kalla said banking interest rate must be brought down to give a competitive edge to the Indonesian economy vis-a-vis other ASEAN member countries.          "We have no other way to compete with ASEAN member countries than making our economy efficient," the vice president said on Tuesday (Feb.23).          Kalla acknowledged that low interest rate will lead to fluctuations in the financial market but said on the whole, the economy will become better.          "Overall, the economy will become better. Of course there are some economic sectors that will have to make adjustments," the vice president added.          Chief Economic Minister Darmin Nasution said the government is finalizing steps to lower the lending rate which is still high and a burden on the people.          "We are making every effort so that in one month, the lending rates are lowered and results are obvious by the end of the year. The lending rate would stand at around 9.0 percent," Darmin said on Tuesday.

GOVERNMENT URGED TO MAINTAIN BAN ON MINERAL ORE EXPORT

by Andi Abdussalam

Jakarta, Feb 23 (Antara) - A legislator and businesses engaged in the development of smelters have urged the government to maintain its ban on mineral ore export, so that the country's raw minerals will have added value.          "It is a setback if the government reopens the opportunity for the export of raw minerals," Dito Ganinduto, a member of Commission VII on energy affairs of the House of Representatives (DPR), stated on Sunday.          Dito said that based on Law No. 4 of 2009 on Mineral and Coal Mining, the ban on the export of raw minerals was a program being carried out to ensure the development of downstream mineral industries in a bid to increase the added value of resources, which will ultimately boost the nation's economy.          Companies that are serious about developing smelters have also called on the government and the DPR to consistently maintain the export ban while revising Law No. 4 of 2009 on Mineral and Coal Mining.

ANTI-CPO LABELED PRODUCT ENTERS INDONESIAN MARKET

by Andi Abdussalam

Jakarta, Feb 22 (Antara) - A packaged food product bearing the anti-crude palm oil (CPO) labeling has entered the domestic market of Indonesia, the world's largest producer of CPO.          The imported product, with the "Palm Oil Free" (POF) label, has gained entry into the country at a time when Indonesia is developing its CPO as a strategic commodity.          Besides using it as a raw material for food items, Indonesia is also developing CPO as raw material for fuels, such as in its biofuel mix program in diesel fuel (now 20 percent), called B20.           It is even planning to develop a green economic zone as a CPO derivative production center, targeting to produce CPO-based jet-aircraft fuel whose added value and environmental impact are better than those of aviation turbine (avtur).          "This is a serious blow to the national palm oil industry in Indonesia where some 43 percent of the country's palm oil plantations are owned by local farmers. Farmers also produce some 30 percent of the CPO," Secretary General of the Indonesian Palm Oil Business Association (Gapki) Togar Sitanggang stated on Friday, last week, while referring to the entry of the anti-CPO commodity into Indonesia.

REVISION OF ANTI-GRAFT LAW FINALLY POSTPONED

By Andi Abdussalam

Jakarta, Feb 22 (Antara) - The planned revision of Law No.30/2002 on Corruption Eradication Commission (KPK) is finally postponed after President Joko Widodo (Jokowi) met with the leadership of the House of Representatives (DPR) and of the KPK on Monday.          The postponement of the law revision followed the pros and cons regarding four points of the draft revision which many quarters saw as an attempt to weaken the authority of the anti-graft body in fighting corruption in the country.          "After a comprehensive discussion, we agreed that the issue of revision of KPK law should not be discussed at this time. It must be postponed. I looked at the need for sufficient time for finalizing the planned revision of the law and making the public aware," President Jokowi stated after meeting with the leaders of the DPR and the KPK.          On Wednesday night last week, the DPR decided to postpone the deliberation of the draft from Thursday (Feb.18) to next Tuesday (Feb 23).  It has planned to take the draft to its plenary to decide whether it could be endorsed as the House initiative to revise it.          However, a series of opposition to the plan from many quarters have come to the surface in the run up to the plenary session, including from the Democrat Party leaders and religious figures.

GOVERNMENT STILL NEEDS TIME TO DECIDE ON DISSOLVING BATAM AUTHORITY

By Andi Abdussalam

Jakarta, Feb 19 (Antara) - The government is yet to arrive at a definitive decision on its plan to disband the Batam Free Trade Zone Authority (BP Batam) as it still needs time to contemplate on its pros and cons.          "The government has not yet arrived at a final decision as it is still conducting evaluations. We have not decided to dissolve it," Coordinating Minister for Political, Legal and Security Affairs Luhut Binsar Panjaitan stated in Batam on Thursday.           Panjaitan said the plan to disband BP Batam has been put on hold while awaiting the results of the government's studies, which were now being conducted by a team from the University of Indonesia.           After all, the central government is still waiting for the right time to invite Muhammad Sani, the governor of Riau Islands Province (Kepri), to Jakarta to seek inputs.           The BP Batam on Batam Island, which is being developed as an industrial island and a free trade and port zone near Singapore, is awaiting dissolution by the government for overlapping authority with the Batam Municipal Administration.

TWO EXPERTS SUPPORT ANTI-GRAFT AGENCY WATCHDOG

by Andi Abdussalam

Jakarta, Feb 18 (Antara) - Two constitutional experts have expressed support for creating a monitoring agency to supervise the Corruption Eradication Commission (KPK) and assure the anti-graft agency abides by the nation's constitution.         Supervision of the KPK is needed to prevent it from becoming a tyrannical agency, according to constitutional expert Margarito.         "The KPK is a major authority. If it is not controlled, it could become a tyrannical agency," Margarito said in the Parliament building on Wednesday.          Another constitutional law expert, Irmanputra Sidin, said he has challenged the mainstream, which is against the presence of a watchdog body in charge of supervising the performance of the KPK.          He supports calls for the forming of a watchdog body for the Corruption Eradication Commission (KPK).          "In my opinion, a supervisory body is constitutionally a principle for all agencies, to assure they remain operating within the boundaries of the constitution," Irmanputra told reporters on Tuesday.

RI INTRODUCES DNI REVISION IN US TO LURE INVESTMENT

by Andi Abdussalam

Jakarta, Feb 18 (Antara) ¿ Indonesia has opened 35 business sectors to US investors that were earlier found on the Negative Investment List (DNI), as announced during President Joko Widodo's  (Jokowi's) tour of the United States this week.          The government has revised the DNI and included it in the tenth economic policy package announced on Thursday, February 11. With their removal from the DNI, the 35 economic sectors are now open to 100 percent foreign investment.          Indonesian Trade Minister Thomas Lembong told US investors in San Francisco on Tuesday that the revision of the DNI opens significant investment opportunities for US companies in Indonesia.        These sectors included crumb rubber, cold storage, tourism businesses such as restaurants, cocktail lounges, cafés, recreation centers, arts, and entertainment, sports centers, and the film industry.          Thomas also used the forum to explain improvements in the country's export and import trade policies.          Also, during an Economic Ministers' Roundtable meeting in San Francisco on Tuesday with 16 companies, the government elaborated on the DNI and investment opportunities. Additionally, the government explained the steps it has taken to improve its trade and investment climate.

GAPKINDO WANTS GOVT TO REINFORCE RUBBER DOWNSTREAM INDUSTRY

by Andi Abdussalam

Jakarta, Feb 16 (Antara) - The Indonesian Rubber Producers Association (Gapkindo) wants the government to strengthen the country's rubber industry by opening the downstream rather than the upstream sector to foreign investors.          Gapkindo chairman Moenardji Soedargo said his association would welcome it if the government opens the door to foreign investors in the downstream rubber business to reinforce the integral structure of the rubber industry in the country.          However, the rubber industry in the upstream sector, such as crumb rubber business, should allow only the national or domestic industry players, with the number of existing factories in the country now reaching 140.          As of now, the existing rubber factories in the upstream areas were unable to operate to their full capacity and could not absorb workers optimally. "In such conditions, offering new investment (in the upstream sector to foreign investors) will kill the existing industry," Moenardji Soedargo said in Jakarta on Monday.

GOVERNMENT ISSUES PACKAGE TO BOOST DEVELOPMENT OF SMALL BUSINESSES

by Andi Abdussalam

Jakarta, Feb 12 (Antara) - After announcing its ninth economic policy package on electricity, cattle imports, and logistics deregulation last month, the government launched the tenth package on the revision of the Negative Investment List (DNI) on Thursday.          Micro, small and medium-scale enterprises (SMEs) and cooperatives have proven their resilience in facing economic crises and have become the pillars of the nation's economy.          Hence, the government has launched the tenth economic policy package aimed at boosting investment and promoting SMEs as well as cooperatives.          Through the tenth economic package, the government has revised the DNI and has offered more areas of business for SMEs and cooperatives.          The government has increased the number of reserved business sectors for SMEs and cooperatives by 19 additional business sectors. The new arrangement has been made following the revision of Presidential Decree (Perpres) No. 39 of 2014 on the List of Business Fields Closed and Business Fields Open with Conditions to Investment in the investment sector (DNI).          "The 19 sectors are covered in the activities of business services and construction that use simple or medium technology, with a value of Rp10 billion," Coordinating Minister for Economic Affairs Darmin Nasution stated at a press conference on February 11.          "In the previous DNI, around 55 percent of foreign shares were required in business areas such as pre-design and consulting services, architectural design services, and administrative services," the minister explained.

INDONESIA TO RAMP UP DEVELOPMENT OF INFRASTRUCTURE PROJECTS

By Andi Abdussalam

Jakarta, Feb 11 (Antara) - Indonesia is boosting its infrastructure development in an effort to provide economic benefits to its people and increase the country's competitive edge in the face of the ASEAN Economic Community (AEC).         "For this purpose, the government has selected 30 infrastructure projects worth some Rp851 trillion as priority projects to be developed until the end of the current government in 2019," Luky Eko Wuryanto from the Chief Economic Minister's office said on Wednesday.         The 30 projects were selected by the government through the Priority Infrastructure Development Acceleration Committee (KPPIP).         They will receive various forms of guarantees from the government, such as political, license and financial guarantees.         The guarantees for the 30 projects for the 2016 to 2019 period will be regulated under the Presidential Decree No. 3 /2016 on National Strategic Project Acceleration, according to Luky, who is the deputy for Infrastructure and Regional Development Acceleration at the office of the Chief Economic Minister.         Luky revealed this while speaking to the press during the Infrastructure Outlook 2016 event on Wednesday.

GOVT ASKED TO LOWER GAS PRICES

by Andi Abdussalam

Jakarta, Feb 6 (Antara) -  In line with the downward trend in the world oil prices, the industrial sector has called on the government to reduce the price of gas at home to ensure that their products remain competitive.         At least two associations representing the industry made the appeal, namely the Indonesian Chemical Industries Federation (FIKI) and the Indonesian Olefin and Plastic Association (INAPLAS).         "The government needs to adjust the gas prices in step with the world price trend. The price of gas is now going down in the world," Ridwan Adipoetra, secretary general of the FIKI, said here on Wednesday (Feb 3).          He said the world crude price has now dropped 75 percent to US$30 per barrel. Accordingly, the government lowered the prices of fuels through its third economic policy package. Unfortunately, the price of gas has not yet been lowered.          If this state of affairs was allowed to continue, it will make chemical industries at home difficult to compete.  The gas price has been adjusted only for the fertilizer industry where the government has lowered it from US$10 per 1 million British  thermal units (mmbtu)  to US$7 per 1 mmbtu.

IDEA TO STOP PREMIUM SALE IN JAKARTA NEEDS DISCUSSIONS

By Andi Abdussalam

Jakarta, Feb 6 (Antara) - The idea of Jakarta Governor Basuku Tjahaja Purnama (Ahok) to stop the sale of Premium gasoline in Jakarta has triggered public responses as it was seen as lacking grounds and is ineffective.         The Jakarta governor has raised the idea to stop the sale of Premium in Jakarta and encourage the people to use public transportation. Therefore, subsidy for premium should better be used for developing public transportation, according to Ahok.          "We are as the Jakarta residents should no longer consume Premium. The subsidy should be better be used for developing public transportation so that people would no longer use their private vehicles but change it to public transportation," he was quoted as saying by detikfinance, in Kelapa Gading, North Jakarta on Tuesday.          According to the Indonesian Consumers Institute (YLKI),  Ahok's idea to stop the sale of Premium gasoline in Jakarta in order to encourage use of public transportation will not be effective.  "Before taking such a step, the public transport facilities need to be improved. Public transportation network should be expanded to make all corners of the city accessible. Just stopping the sale of a premium fuel will not be effective," YLKI Chairman Tulus Abadi said on Friday.

GOVT URGED TO TAKE STEPS TO PREVENT MASSIVE WORKERS' LAYOFFS

by Andi Abdussalam

Jakarta, Feb 4 (Antara) - Global economic gloom and the pronged drop in world commodity prices have affected businesses in Indonesia, with scores of large companies being forced to shut down their factories.          A score of major companies, such as PT Toshiba, PT Panasonic, PT Chevron Pacific Indonesia, and PT Ford Motor Indonesia are planning to close their factories in Indonesia, which will result in massive layoffs of workers.          This will lead to thousands of Indonesian workers being laid off and becoming unemployed.          The Indonesian Workers' Union Federation recorded that the number of workers affected by the layoffs has reached 1,700 at PT Panasonic, 970 at PT Toshiba, 1,000 at Panasonic Lighting Cikarang Bekasi, 1,200 at PT Samoin, and 500 at PT Starlink.          "These layoffs will threaten the livelihoods of the victims' families, particularly nondescript workers. I hope the government will think of the impact of the layoffs and take anticipatory steps," legislator Okky Asokawati, a member of Commission IX on manpower of the House of Representatives (DPR) said on Thursday.

EMPLOYERS OBJECT TO BILL ON SAVINGS FOR PUBLIC HOUSING

by Andi Abdussalam

Jakarta, Feb 3 (Antara) - In efforts to resolve the issue of housing backlog, the government and the House are deliberating a public housing savings bill that will serve as a legal basis for the people to find access to savings to own houses.         However, businesses grouped in the Indonesian Chamber Commerce and Industry (Kadin) and in the Indonesian Employers Association (Apindo) have objected to the content of the Bill on Savings for Public Housing (Tapera bill), claiming that if the draft bill is passed into law, it will put further burden on employers.         Therefore, the Kadin has said it is opposed to the content of the draft bill because it would burden the industry and raise the cost of employment.         "Kadin appreciates the purpose of the Tapera bill which aims to give a chance to low-income people to own houses but we have also objected to the content of the bill because it puts the burden of funding the savings scheme on the shoulders of the employers," Chairman of Kadin Indonesia, Rosan P Roeslani, said in press statement in Jakarta on Tuesday.

INDONESIA'S BANYUWANGI WINS WORLD TOURISM AWARD

By Andi Abdussalam

Jakarta, Feb 2 (Antara) - Dubbed as "The Sunrise of Java," Banyuwangi, an East Java Province's district, suddenly rose to fame on the world tourism stage when it was declared the first winner of a world tourism award in Europe.          Banyuwangi's success at the prestigious tourism forum came as Indonesia won three awards of the United Nations World Tourism Organization (UNWTO) at a ceremony held in Madrid, Spain, recently.          According to a district government spokesman, the Banyuwangi administration with its "Re-inventing the Government in Tourism" project, emerged as the first winner for Innovation in Public Policy and Governance category of the 12th UNWTO Awards for Excellence and Innovation in Tourism.          It defeated candidates such as Colombia, Kenya and Puerto Rico.          Besides Banyungawi, other three categories were won by the Itaipu Technological Park (Brazil) in the UNWTO Award Innovation in Research and Technology category, the Treetop Walking Path (Lithuania) for the Innovation in Enterprises category, and the Sisterhood of Survivors Program (Nepal) for the Innovation in Non Governmental Organization category.          Garuda Indonesia's Bali Beach Clean-Up campaign was the First Runner-up for the UNWTO Award for Innovation in Enterprises category.          Indonesia's NGO, Karang Lestari Foundation, with its  "Coral Reef Reborn" project was also the First Runner-Up for the UNWTO Award for Innovation in Non-Governmental Organizations (NGOs) category.

INDONESIA REVITALIZING TRADITIONAL MARKETS

By Andi Abdussalam

Jakarta, Feb 1 (Antara) - For most Indonesians, traditional markets are crucial to their day-to-day lives and economic activities, yet with the rapid growth of modern markets that have made shopping convenient, traditional markets are being pushed to the margins.          But since the country's middle and lower class consumers still need these traditional markets, they have actually drawn the attention of the government in the past one decade.          It was only in recent years that the government paid serious attention to revitalizing these markets, transforming them into a clean and convenient place for shopping.          The current government under the administration of President Joko Widodo (Jokowi) has planned to revitalize some 5,000 traditional markets across the country until 2019.          "The program to revitalize 5,000 traditional markets has been running well and will continue to till 2019. In 2015, the government revitalized 1,010 traditional markets. Actually, the number of traditional markets that were up for revitalization in 2015 had reached 1,017 but seven of them cancelled their proposals, Trade Minister Thomas Lembong said last week (Jan 26).

RI ENCOURAGES FISH STOCKING TO MAINTAIN FISHERY RESOURCES

By Andi Abdussalam

Jakarta, Feb 1 (Antara) - The Indonesian government continues to encourage eco-friendly cultured fish development and has begun fish restocking as part of its efforts to maintain the sustainability of its environment and fishery resources.         Director General of Cultured Fish of the Ministry of Maritime Affairs and Fisheries Slamet Soebjakto affirmed that eco-friendly and sustainable development of fisheries is being carried out in line with the directives of Marine Affairs and Fisheries Minister Susi Pudjiastuti.         "Based on the directives of Minister Susi, the development of cultured fish must not harm the environment, but it should support the sustainability of nature and fishery resources. Thus, fish restocking is also being carried out to achieve the two objectives," Soebjakto noted in a written statement recently.      According to the director general, the cultured fish sector should continue to be boosted in an effort to maintain its sustainability through restocking activities aimed at preserving and enriching the natural fishery resources.