GOVT EXPECTS RP165 TRILLION FROM TAX AMNESTY PROGRAM

by Andi Abdussalam

Jakarta, June 29 (Antara) - The House of Representatives (DPR) enacted into law on Tuesday the government's tax amnesty bill which will provide tax pardons for the repatriation of assets worth thousands of trillions of rupiah currently stashed abroad.          The government hopes to receive Rp165 trillion in taxes from tax redemptions and asset declarations of the repatriated money. Money to be obtained from the tax amnesty program is accounted for in the 2016 Revised State Budget (APBNP 2016).          Finance Minister Bambang Brodjonegoro had previously forecast that taxpayers registering for the tax amnesty program would declare overseas assets of up to Rp4 thousand trillion, while the income flow of repatriated funds is expected to reach Rp1 thousand trillion.        The amended state budget has a deficit of Rp296.7 trillion, with a target for state income and grants totaling Rp1,786.2 trillion and state expenditures totaling Rp2,082.9 trillion.          The state income includes the Rp165 trillion in taxes expected from the repatriation of capital during the tax amnesty period, which will remain in effect until March 2017.          Brodjonegoro said he would select investment management companies and banks to accommodate the repatriated funds.          "We will carefully select investment management companies and banks," the minister stated last month.

SAFETY OF LEBARAN TRAVELERS GETS PRIORITY

by Andi Abdussalam

Jakarta, June 27 (Antara) - Millions of post-fasting or Lebaran travelers will start homebound exodus this week for the Lebaran festivities and family reunions in their respective hometowns.          Transportation Minister Ignasius Jonan said the government will give priority to the safety of the travelers during the exodus, a tradition that marks the end of the fasting month of Ramadan every year.          In 2015, for example, some 11.36 million Lebaran revelers across the country headed for their hometowns. Seven hundred people lost their lives in accidents that year.          Therefore, the Transportation Ministry will focus on providing safety and ensuring there are no traffic jams, as per President Joko Widodo's orders.          "Based on the directives of President Jokowi, two things must receive attention during the current Lebaran exodus, namely eliminating gridlocks as people travel back to their homes or when they return, and providing maximum safety during the trip," Minister Jonan told a press conference on Friday (June 24).          The minister will coordinate with the police, particularly the traffic police and the directorate generals of sea, air and land transportation, as well as with the regional governments.

TASK FORCE TO ERADICATE ILLEGAL INVESTMENT PRACTICES

By Andi Abdussalam

Jakarta, June 25 (Antara) - The government will set up investment-alert task forces in the region to overcome rampant illegal investment practices that offer fictitious business opportunities to the public in the region.       The regional investment-alert task force will follow the central government's Investment-alert Task Force formed in 2007 to tackle illegal investment practices.       Seven ministries/institutions are involved as members of the central government's Investment-alert Task Force. These are the Financial Service Authority (OJK), the Trade Ministry, the Communication and Informatics Ministry, and the Cooperatives and Small Enterprises Ministry, apart from the Attorney General, the National Police and the Capital Investment Coordinating Board (BKPM).       The main task of the regional investment-alert task force is to prevent and handle illegal investment practices that are rampant in many regions of the country.       Therefore, the government, through the Investment-alert Task Force of the seven ministries/institutions, will set up the same task forces in the region.

BEEF IMPORTS TO BRING DOWN SOARING PRICES ARRIVING

BY Andi Abdussalam

Jakarta, June 23 (Antara) - The high demand for beef in the current fasting month of Ramadan has caused the price of the commodity to soar from some Rp90 thousand to about Rp125 thousand-Rp130 thousand per kilogram (kg).          The prices had also sky-rocketed in several regions few days before the arrival of the fasting month. Beef prices soared to Rp170 thousand per kg in Aceh, Rp160 thousand per kg in West Kalimantan, Rp120 thousand per kg in Jakarta, and Rp90 thousand per kg in cattle-rearing regions, including East Java.           President Joko Widodo had earlier given directives that commodity prices during the fasting month and its subsequent Ied Fitr, or Lebaran festivities, should not increase. The head of state made it clear that the price of beef should be maintained at Rp80 thousand per kg.          In an attempt to bring down beef prices as suggested by the president, the government is importing beef. It even diverted the commodity, which was earlier imported for food industries, to public consumers.

GOVERNMENT OPTIMISTIC OF ACHIEVING 5.1 PERCENT GROWTH

by Andi Abdussalam

Jakarta, June 22 (Antara) - The government and House of Representatives' Commission XI on financial affairs have agreed to revise down the nation's economic growth target due to the global economic slowdown that continues to affect several nations' economies.         The government had set the economic growth target at 5.3 percent in the 2016 State Budget, however, only 4.92 percent was recorded in the first quarter of 2016.         In order to meet the set target, the government should achieve a growth of 5.42 percent in the remaining three quarters, which is a challenging task, taking into account the current economic conditions.          Therefore, the government and Commission XI had agreed on June 7 to change the 2016 economic growth target from 5.3 percent to 5.1 percent in the draft 2016 revised budget.      This implies that with the 4.92 percent growth recorded in the first quarter of this year, the government has to achieve an economic growth of 5.16 percent in the remaining three quarters to meet the 5.1 percent target set in the draft revised state budget this year.         The Indonesian central bank, or Bank Indonesia (BI), has forecast that the country's economy would grow between 4.9 and five percent in the second quarter of this year, or falling slightly short of the target.

BINTAN ISLAND READY TO GREET LEBARAN VISITORS

By Andi Abdussalam

Jakarta, June 21 (Antara) - Bintan, a tourist resort island close to Singapore as well as to Malaysia's Johor Bahru, in the Riau Island Province, is now ready to greet foreign tourists and local visitors expected to arrive during the post-fasting Lebaran holidays.          Millions of Muslims across the country are expected to visit or even spend holidays in tourist resort areas after having fasted for one whole month and subsequently celebrated the Ied Fitr or Lebaran festivities.          Lebaran revelers in Riau Islands or those from other provinces in Sumatra can enjoy their Lebaran holidays in Bintan Island. Bintan is one of the tourist resorts being developed by the government to help achieve its target to attract 20 million tourists by 2020.          The rising number of well-known tourist resorts in the country with world-class facilities, such as those in Bintan, will help increase the number of foreign tourist arrivals, thus making it possible for the country to achieve its foreign tourism target.        Additional tourism facilities such as those in Bintan will provide better hospitality. These will not be inferior to those offered in other places.          Tourism Minister Arief Yahya said Bintan, Riau Islands, offers 10 tourist destinations for holidaymakers visiting during the post-fasting Lebaran holidays.          The ten places are Pantai Lagoi Bay beach, Lagoi Love Lock Plaza, Lagoi Mangrove Tourism, Dugong Trikora beacg, Pasir Putih white sandy beach, Kota Kijang Park, Pantai Sakera beach, Museum Bahari maritime museum,  Antam Kijang Relief park and  Bukit Batu religious tourism destination.

PEOPLE WARNED OF DISASTERS DURING WET DRY SEASON

by Andi Abdussalam

Jakarta, June 19 (Antara) - The National Disaster Mitigation Agency (BNPB) has warned the people of possible natural disasters such as floods, landslides and whirlwinds during the wet dry season.          High intensity of rainfall is expected to take place in Indonesia in the coming several months as a result of the La Nina weather phenomenon.          According to Sutopo Purwo Nugroho, the head of the Data and Information Center of the BNPB, most parts of Indonesia should have entered the dry season period. Drought should have taken place since mid June this month.          However, rain with high intensity still often falls. The La Nina weather phenomenon will be detected clearly in July, August and September this year. It will have impact on the increase in rainfall during the dry season.          Thus, this year's dry season is a wet dry season given the fact that during the dry season the intensity of rainfall is still high.

OPERATOR PREPARING FERRIES FOR LEBARAN TRAVELERS

By Andi Abdussalam

Jakarta, June 18 (Antara) - The Merak-Bakauheni and Ketapang-Gilimanuk are the two crossing lanes that are the busiest during post-fasting Ied Fitr or Lebaran festivities season.          Merak and Bakauheni harbors are both ferry ports that connect the western tip of Java and the eastern part of Sumatra.          On the other hand, the Ketapang and Gilimanuk are two ferry ports that connect Java on the eastern tip of the island with the Indonesian tourist resort Island of Bali.          As the Lebaran season is only about two weeks away, state-owned ferry operator ASDP Indonesia has prepared about 52 ferries to serve the Ketapang-Gilimanuk crossing trips and 56 ferries to cater to Lebaran travelers willing to cross the Sunda Strait from Java to Sumatra or the other way around.         "Some 56 of the 59 ferries at Merak port will serve Lebaran travelers during the Lebaran season this year," PT ASDP Indonesia Ferry for Merak branch, Tommy Kaunan, said last week.          The ASDP data showed that the number of ferry trips for the Merak-Bakauheni crossing, the busiest route, will increase by two percent from 1,566 last year to 1,597 this year.

TRANSPORTATION MODES BEING READIED FOR LEBARAN

 

By Andi Abdussalam

Jakarta, June 17 (Antara) - The Transportation Ministry has prepared land, sea and air transportation modes to deal with the exodus of post-fasting month of Eid-Al-Fitr or Lebaran travelers.            Some 45 thousand buses, 447 trains with 1,400 carriages, 140 ships and 529 airplanes will be operated to transport millions of Lebaran revelers.         "We will evaluate all transportation modes to decide which modes can be operated and which cannot in an effort to provide a convenient passage for passengers," Transportation Minister Jonan said in Banjarbaru, South Kalimantan on Friday.         The minister was making an observation tour of Banjarmasin, South Kalimantan, to see the readiness of the Trisakti Seaport and Syamsudin Noor Airport in South Kalimantan.         Minister Jonan said four modes of air, land, sea and railway transportation systems had been readied three months ago. However, some of them are still under examination.

INDONESIA YET TO ACCEDE TO TOBACCO CONTROL CONVENTION

by Andi Abdussalam

Jakarta, June 16 (Antara) - The pros and cons behind Indonesia acceding to the World Health Organization Framework Convention on Tobacco Control (WHO FCTC) have long been speculated, and the government's indecisive stand has placed it in a difficult position.          Various circles from the health sector and the younger generation have, so far, called on the government to ratify the FCTC treaty, which had been circulated by the WHO since May 21, 2003, in an effort to curb tobacco consumption.          However, the government has yet to accede to the convention as over six million people earn a livelihood as workers in tobacco industries or as tobacco farmers. Tobacco also contributes trillions of rupiah in taxes to the state     The Framework Convention on Tobacco Control Youth Movement (GM-FCTC) has questioned the government's reluctance to accede to the convention amid increasing number of young smokers.          The GM-FCTC viewed the government's hesitance to ratify the convention as odd, especially during a time when 180 countries in the world, realizing the importance of controlling tobacco consumption, have acceded to the FCTC.          "It is ironical for Indonesia, as one of the initiator countries of the FCTC, to have not yet affirmed its commitment to controlling tobacco consumption by acceding to the FCTC," Margianta Surahman, a spokesman of the GM-FCTC, noted in a press statement in Jakarta on Wednesday.

EFFORTS UNDERWAY TO IMPROVE HAJJ PILGRIMAGE SERVICES

by Andi Abdussalam

Jakarta, June 15 (Antara) - Some three months before the D-Day of this year's Hajj pilgrimage season in September, the Indonesian government is now streamlining its services for the departure of 168,800 would-be Hajj pilgrims to the Holy Land.          President Joko Widodo has also promised to hold a special meeting to discuss matters related to organizing the Hajj pilgrimage. The president made the statement while receiving a delegation of the Hajj Supervisory Commission (KPHI) in Jakarta on Tuesday.          According to KPHI Chairman Samidin Nashir, the president responded positively to his Commission's recommendations and vowed to hold a special meeting to discuss matters relating to the Hajj pilgrimage program.         "The KPHI has made recommendations on the improvements in Hajj services," Nashir stated.          The government is also holding a training course for officials, who will be assigned to provide Hajj services. The course was inaugurated on Tuesday by Religious Affairs Minister Lukman Hakim Saifuddin.           He called on the course participants to improve their professionalism and maintain composure while providing services to the pilgrims.           "Do your job professionally with responsibility. Make sure you are able to have good control over your emotions while carrying out your tasks," the minister remarked while opening the training course for Hajj officials for the 2016 Hajj pilgrimage season at the Pondok Gede Hajj Dormitory in East Jakarta on Tuesday.

GOVT CHECKS VEHICLES FOR LEBARAN TRANSPORTATION

by Andi Abdussalam

Jakarta, June 14 (Antara)  - The government is conducting checks to determine the condition of vehicles that will be used to transport post-fasting Ied Fitr or Lebaran travelers who will be headed for their hometowns to celebrate the Muslim holiday festivities.         The Transportation Ministry is examining means of transport to be used for travel by air, land and sea to ensure the safety and security of homebound travelers, popularly known as pemudik. Such travels will start early next month.          "All modes are being checked. Physical examination of vehicles will be carried out till  June 24, 2016. Checks are not being carried out randomly; instead vehicles are being checked one-by-one. Vehicles found not roadworthy will not be allowed to operate during the Lebaran transportation season," Transportation Minister Ignasius Jonan said after a cabinet plenary session on the 2016 Revised State Budget (APBNP 2016) and Reports on Iid Fitr Preparations, held at the Presidential Palace last week.          Ignasius Jonan said this year the Ministry of Transportation will check 1,200-1,400 buses, locomotives, passenger trains, airplanes and ships.

FOOD COMMODITIES ADEQUATE FOR LEBARAN

by Andi Abdussalam

Jakarta, June 14 (Antara) - The stocks of various essential food commodities, including rice which is a staple food for the Indonesian people, are adequate to meet the people's needs in view of the upcoming Ied Fitr or Lebaran festivities.          The State Logistics Board (Bulog) currently has 2.1 million tons of rice in stock, sufficient to meet people's requirement for the coming seven months. "Bulog has some 2.1 million tons of rice stock. The people's monthly rice requirement is some 300 thousand tons," Bulog Procurement Director Wahyu has stated.       To meet the need for other commodities, the Agriculture Ministry is organizing massive market operations in 4,000 locations throughout Indonesia, aimed at keeping prices of staple foods stable.          "We are carrying out massive market operations in 4,000 locations in Indonesia daily. A short term solution is a massive operation ahead of Ied Fitr Muslim holiday," Agriculture Minister Amran Sulaiman pointed out while observing the launch of a market operation in Pasar Minggu, South Jakarta, on Sunday (June 12).          During the market operation at Pasar Minggu, commodities such as rice, shallots, cooking oil, red chili and sugar were sold. Housewives swarmed the premises of the horticulture office to buy basic necessities being sold at prices below regular market prices.

SUBSIDY CUT NOT TO REDUCE DIESEL OIL SUPPLY

By Andi Abdussalam

Jakarta, June 11 (Antara) - The government's plan to cut its diesel oil subsidy will have no impact on the volume of diesel oil supplies which currently amount to about 16 million kiloliters.          However, Energy and Mineral Resources (ESDM) Minister Sudirman Said has not given any assurance about whether it will lead to lesser consumption of biodiesel, being intensively promoted by the government.          In the 2016 State Budget (APBN 2016), a provision of Rp1,000 per liter has been kept for diesel oil subsidy. The Draft 2016 Revised State Budget (RAPBNP 2016) will have a subsidy figure based on the cut applied.          Finance Minister Bambang Brodjonegoro said the fixed diesel oil subsidy of Rp1,000 per liter in the APBN 2016 will be reduced to Rp350 per liter in the RAPBNP 2016.          As a result of the cut, the fuel oil and liquefied petroleum gas subsidies in the APBNP 2016 will amount to Rp40.63 trillion, down from Rp63.68 trillion in the APBN 2016.          Earlier, ESDM Minister Sudirman Said informed Commission VII on energy affairs of the House of Representatives (DPR) about the government's plan to cut diesel oil subsidy by Rp650 per liter and that it will form the basis of the figure in RAPBNP 2016.      Sudirman stated the government was yet to discuss the impact of diesel oil price after the subsidy cut, but it is expected to adjust itself to the market price within a three month period.          The minister admitted that the government has made significant corrections in the APBN 2016. In the energy sector, the world oil price slide was the main factor for budget adjustment.

INDONESIA MIGHT NEED TO IMPORT MAIZE

by Andi Abdussalam

Jakarta, June 10 (Antara) - Indonesia has set a target to produce 24 million tons of maize this year, more than its estimated need of 21.4 million tons, yet agribusiness circles say the country still needs to import the commodity.          "Let us review the price of maize at the end of this month. If it does not come down, it means there is no additional domestic production. If there are no stocks, it will be impossible for us not to import the commodity," Indonesian Agribusiness Club Secretary, Tony Kristiyanto, said on Tuesday.          Therefore, Indonesia still needs to import maize because domestic production has not increased while demand for the commodity continues to soar.          Indonesia's maize production has been increasing over the past several years. In 2014, the country's production of the commodity reached 19.01 million tons, up 2.68 percent from the 19.51 million tons produced in 2013.          Last year, maize production in the country was about 20.6 million tons, 8.7 percent more than in 2014.          However, the rising domestic needs and little progress in production this year might force the country to import the commodity. Tony noted that Indonesia had to import maize since it is used as animal feed.

LOGISTICS SYSTEM NEEDS IMPROVEMENT TO REDUCE FISH IMPORTS

by Andi Abdussalam

Jakarta, June 10 (Antara) - Certain fishery units in the country still import fish as raw material for their production amid efforts to boost fish output at home and improve the welfare of local fishermen.          Maritime Affairs and Fisheries Minister Susi Pudjiastuti admitted that there were fishery units which still rely on imports but the number of these industries is small. Different restaurants also still import salmon fish to serve their customers.          Fish imports have been going on from the past, Susi said. "Fish imports have been there from the past, but now it is more open to the public," Minister Susi told the Parliament during a hearing with Commission IV on agricultural affairs of the House of Representatives (DPR) in Jakarta Wednesday (June 8).          Therefore, the government will improve the logistics in the fishery sector in an effort to reduce fish imports. The improvement of the logistics mechanism in the maritime and fisheries sector will reduce the import of the commodity in the future.          "If the logistics system is good, the import of fish will come down," Minister Susi said.

GOVERNMENT URGED TO LOWER BEEF PRICE

 by Andi Abdussalam

Jakarta, June 9 (Antara) - The prices of food commodities, particularly beef, in the market this week have been increasing as Muslims across the country began observing the fasting month of Ramadan.          President Joko Widodo had earlier given directives that commodity prices during the fasting month and its subsequent Eid al-Fitr, or Lebaran festivities, should not increase.          The president had made it clear that the price of beef should be maintained at Rp80 thousand per kilogram (kg).          However, the prices of food commodities, such as shallots and beef, remain high, while that of rice was successfully stabilized. Consumers believe that the price of beef has been rising steeply.          "The government has the responsibility to protect consumers from the skyrocketing prices of food commodities, particularly that of beef, which has now reached between Rp125 thousand and Rp130 thousand per kg. It has to stabilize the prices at a fair level and make it affordable to the consumers," Chairman of the Indonesian Consumers Institute Tulus Abadi noted in a press statement on Saturday (June 4).         The price of beef until this week still remained high in the market despite the government's plan to keep it under check. It seems that the plan has not been implemented optimally.

SEA TRANSPORTATION FACILITIES BEING PREPARED FOR LEBARAN TRAVELERS

by Andi Abdussalam

Jakarta, June 8 (Antara) - Indonesia will once again see the exodus of the devout when a large number of people travel to be with their families for Ied Fitr post-fasting, or Lebaran, early next month.           Tens of millions of Lebaran revelers across the country will be home-bound, traveling by air, land or sea.          A sector that will witness the flow of a large number of travelers will be sea transportation. Although port operators predict the number of those traveling by sea to remain stable this year, the government will not take any risk and will make adequate arrangements lest it is found wanting.          Authorities are gearing up to prepare passenger terminals at seaports and to check the worthiness of ships that will transport Ied Fitr travelers, locally known as 'pemudik.'     Port operator company PT Pelindo III is preparing 13 passenger terminals at ports in the areas where it operates. It has predicted that the number of passengers passing through its 13 terminals will not see a major increase this year.

S&P RATING NOT TO AFFECT INVESTMENT IN INDONESIA

By Andi Abdussalam

Jakarta, June 4 (Antara) - The international rating agency Standard and Poor's (S&P) has provided Indonesia with the BB+ rating, a level lower than 'Investment Grade', but the government is convinced it will not disturb investment interest in Indonesia.          Indonesia's economic conditions now are relatively better than those of many advanced countries after the global economic gloom. Moreover, two other international standard rating agencies, Fitch and Moody¿s, have awarded Indonesia with an investment grade level.         The conditions of Indonesia's debt-to-gross domestic product (GDP) ratio and its debt management are far better than those of other emerging nations, and even better than those of countries which have secured the Investment Grade level.         "Frankly speaking, we question the reasons of the S&P (to provide us with BB+ rating). We see that its reasons are the same as those in its previous rating. So, there is nothing new," Finance Minister Bambang Brodjonegoro said in Jakarta Thursday.         The S&P in its latest publication this month did not yet provide Indonesia with the "Investment Grade" level. The agency rated Indonesia's long-term state debentures with the BB+ level and short-term securities with the B level. Prospects in the long-term for Indonesia are positive.

SAIL KARIMATA EXPECTED TO CONTRIBUTE TO TOURISM TARGET

By Andi Abdussalam

Jakarta, June 4 (Antara) - Organized from August to October this year at the Karimata Strait that links four provinces, 'Sail Karimata' is expected to contribute to the government's target of achieving 12 million foreign tourist arrivals in 2016.          The government hopes that Sail Karimata would have high economic value that could transform the maritime sector into a main contributor to the government's target of earning some US$4 billion of foreign exchange from the tourism sector by the year 2019.          Therefore, the government has so far held various sail Indonesia events as it is convinced that these events have the potential to contribute to the tourism sector.           After all, such events that have been categorized as marine tourism activities have so far contributed still only about 10 percent of the total US$1 billion worth of foreign exchange earned from the tourism sector.           Indonesia's earnings from the tourism sector are still small compared to that of Malaysia which earns about $8 billion from this sector.          "This is a challenge for us. If our projection of $4 billion in 2019 is realized, we will still stand outclassed by Malaysia," Tourism Minister Arief Yahya stated at the launch of the event in Jakarta Wednesday (June 1).

PRESIDENT INAUGURATES POWER PROJECTS IN VARIOUS REGIONS

By Andi Abdussalam

Jakarta, June 3 (Antara)  - President Joko Widodo visited Aceh, Bangka Belitung, West Kalimantan and Gorontalo this week to inaugurate power plants in seven provinces as part of the government's efforts to implement its 35 thousand megawatts electricity development program.         These power plants are in different provinces, namely Aceh, North Sumatra, Riau, Bangka Belitung, Lampung, West Kalimantan and Gorontalo with a combined capacity of 754 megawatts (MW).          The 754 MW electricity projects are part of the efforts to achieve 35 thousand MW power production target. The government is planning to develop and complete all these plants by 2019. If successful, it will enhance the nation's current electricity generation capacity from some 50 thousand MW to 85 thousand MW by the end of 2019.           President Joko Widodo (Jokowi) said the new electricity plants will help overcome the problem of power shortage and outages in the country.           "One solution to overcome power shortages in districts and cities is to build PLTMG," Jokowi stated while officiating a 184-MW compressed natural gas-fired power plant (PLTMG), located in the premises of Perta Arun Gas company, in Lhokseumawe, Aceh, on Thursday (June 2).

MOROTAI GEARS UP TO BECOME WORLD-CLASS TOURISM DESTINATION

by Andi Abdussalam

Jakarta, June 1 (Antara) - The Morotai Island in North Halmahera District, North Maluku Province, has all the natural beauty and cultural richness to become a prospective world-class tourist destination.          Along with the central government's "Wonderful Indonesia" tourism campaign to attract 12 million foreign tourists in 2016 and about 20 million by 2019, the Morotai local government adopted the same strategy to entice tourists by launching the "Wonderful Morotai Island 2016" campaign.          The "Wonderful Morotai" tourism brand is an interesting tourism promotional program as it combines enchanting cultural aspects with natural and man-made marine tourism attractions on the Morotoi Island where various festivals and activities are being held from March to December 2016.          "I am convinced that through the `Wonderful Morotai Island' program, Morotai will flourish and become one of the world-class tourist destinations that could attract foreign tourists. Morotai has its own uniqueness apart from being endowed with beautiful nature and a unique culture. Also, it is strategically located along the Asian and Australian shipping lanes," Tourism Minister Arief Yahya said while launching the "Wonderful Morotai Island 2016" event in Jakarta on Wednesday.