Sabtu, 29 Oktober 2016

PERTAMINA TO BEGIN INVESTMENT IN MAHAKAM BLOCK

 By Andi Abdussalam
          Jakarta, Oct 29 (Antara) - State-owned oil and gas company Pertamina will invest in the Mahakam Block in 2017, one year before it officially takes over management of the country's major gas field from PT Total E&P Indonesie.
         Officially, Pertamina will take over in January 2018, after the contract of PT Total E&P Indonesie, which has operated the gas field for 50 years, ends on December 31, 2017.
        By investing earlier in the gas field, Pertamina hopes to prevent a decline in gas production when it takes over the operation. For this purpose, the government has agreed to the amendment of the Production Sharing Contract (PSC) with Total E&P Indonesie.
        Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan hoped that the amendment of the PSC would have positive impact on the continuation of the Mahakam Block production. Up to the first semester of this year, the Mahakam Block's gas production was recorded at 1,747 million metric standard cubic feet per day (MMSCFD) and oil production of 69,186 barrels per day (bpd).
        "President Joko Widodo provided directives that matters relating to the management transition should be prepared and completed as soon as possible. With the amendment of the PSC, Pertamina is now able to invest in the Mahakam Block during the transitional period. Later, this investment could be recognized by the Upstream Oil and Gas Operator (SKK Migas) as cost recovery," Minister Jonan said Tuesday.

CATTLE IMPORTS MUST INCLUDE HEIFERS

 By Andi Abdussalam
         Jakarta, Oct 28 (Antara) - In its efforts to encourage cattle production at home and reduce imports which last year still reached 36 percent of domestic needs, the government requires importers to include heifers in their feedlot cow imports.
       The Trade Ministry and the Agriculture Ministry will soon draft a technical guidance for the cattle importation scheme which requires the inclusion of mother cows. The government will audit the number of heifers included in the importation of feedlot cattle at the end of 2018.
        "At the end of 2018, the number of heifers that companies have imported would be audited. It should reach 20 percent of their total imports. If importers are allowed to import 123,800 feedlot cows at the end of this year, there should be between 24,000 and 26,000 heifers at the end of 2018," Director General for Internal Trade of the Ministry of Trade Oke Nurwan, said in Jakarta Friday.
        At home there are now 32 feedlot companies -- or about 75 percent of all feedlot firms which had the commitment to import cattle based on the Agriculture Minister's Regulation No.49/2016, Director General of External Trade of the Ministry of Trade Dody Edward said on the occasion.

Kamis, 27 Oktober 2016

ANTITERRORISM LAW REVISION MUST BE FINALIZED SOON

by Andi Abdussalam
         Jakarta, Oct 27 (Antara) - The draft revision of Law No. 15/2003 on Antiterrorism, which is under the deliberation of the House of Representatives (DPR), must be finalized soon.
        Coordinating Minister for Political, Legal and Security Minister Wiranto called for the draft revision of Law No. 15/2003 to be finalized soon, as it constitutes a legal weapon for security officers in the fight against terrorism.
       "If we do not have the weapon, which is the legal umbrella to fight terrorists, it means that we are fighting them with hands being tied," Wiranto said at his office in Jakarta recently.
        The deliberation of the bill, which was submitted by the government to the House last January, has been slow as it is still in the stage of collecting inputs from the public. It was initially planned to be completed by June 2016. But, it is still in the stage of collecting public inputs for inclusion in the problem inventory list (DIM).
        Inputs and suggestions are expected to come from the civil society, the Witness and Victim Protection Agency (LPSK) and the public in general.

Senin, 24 Oktober 2016

GOVT GOES ALL OUT TO CURB ILLEGAL LEVIES

By Andi Abdussalam
          Jakarta, Oct 24 (Antara) - Illegal levies have been a chronic problem afflicting various public services in many government agencies, including in the Ministry of Transportation.
        It is not only the state that suffers losses as a result of such illegal gratification, but also businesses and people as a whole.
        At the ports, such losses could be to the tune of Rp3 trillion per annum, according to an estimate arrived at by the Electronic Business Association (Gabel). Arnaldi Nasrum posted this information in the Kompasiana column in June last year.
       The industry could be annually suffering a Rp12 trillion loss as a result of losing market share. This is based on the fact that the value of the electronic market has been calculated as Rp27.7 trillion.
        Now, the government is going all out to curb such illegal levies in various institutions. Police arrested officials after they were caught red handed while collecting illegal levies at the Ministry of Transportation premises earlier this month.
         "We discussed the operation mounted against illegal levies (OPP). We received a report from the National Police chief that some officials of the Ministry of Transportation were arrested on charges of illegal levies on shipment documents," President Joko Widodo (Jokowi) confirmed after inspecting the search operation at the Ministry of Transportation's premises on October 11.

Sabtu, 22 Oktober 2016

INDONESIA FACES AN INCREASING ELDERLY POPULATION

 by Andi Abdussalam
           Jakarta, Oct 22 (Antara) - Indonesia is facing the problem of a growing number of elderly people who are expected to reach over 32 million in the next two decades.
          Indonesia's elderly in 2010 was 4.9 percent, or 11,878,236 people, and this number is projected to increase to 10.8 percent, or 32,112,361 people in 2035.
          Accourding to senior researcher Sukamdi of the Center for Population and Policy Studies (PSKK) of the Gadjah Mada University  (UGM),the country is actually going to face a big problem.
          "The same issue also occurs in other countries such as Japan. However, there is no awareness of the fact that we have a big problem with the elderly. In my view, Indonesia has not shown a sufficient response to the problem of the elderly," Sukamdi said at the UGM campus Saturday.
          The data at the UGM's PSSK on Indonesia's Population projections from 2010 to 2035 indicate that the percentage of the elderly population will increase to 100 percent, he said.
          In 2010, the percentage was 4.9 percent, or 11,878,236 people, and this number is projected to increase to 10.8 percent, or 32,112,361 people, in 2035.

GOVT TO ISSUE LOGISTICS POLICY PACKAGE

 By Andi Abdussalam
         Jakarta, Oct 23 (Antara) - The Indonesian government has since September 2015 issued 13 economic policy packages which have improved the country's investment climate through simplifying regulations which so far impeded investment.
        The economic policy packages have been able to improve not only the investment climate but also increase the competitive edge of the Indonesian economy by encouraging regional and national economic development as well.
         The forming of new bonded logistics centers (PLBs) might be the most successful in the implementation among the series of economic policy packages, according to Coordinating Minister for Economic Affairs Darmin Nasution.
        Therefore, the government is preparing a special economic policy on a logistics distribution system, especially to expedite the implementation of the blueprint on the logistics supply system of the country.
         So far, the government has issued 13 economic policy packages over the past year, marked with massive deregulation, simplifying licensing procedure and cancelling thousands of regional regulation. "PLB has succeeded in cutting logistics cost and improving efficiency in domestic trade," Darmin said addressing a Jakarta International Logistic Summit and Expo (JILSE) in Jakarta on Wednesday (October 19).

Jumat, 21 Oktober 2016

NEW POLICY PACKAGE TO DEAL WITH E-COMMERCE

By Andi Abdussalam
          Jakarta, Oct 22 (Antara) - The business of e-commerce in Indonesia, like in many other countries, is now developing, recording a total transactions of US$12 billion in 2014.
          This year it is estimated to reach $24.6 billion.
        The volume of e-commerce transactions in Indonesia is still relatively small, namely about one to two percent of the total retail transactions. It is smaller than the world's average eight percent, or the 16 percent in South Korea and 12 percent in the United States.
        Yet the government is taking an anticipatory step to tackle the rapid growth of e-commerce transactions in the country. It will include it in its 14th economic policy package to be announced in the near future.
        Now, various sides, including the relevant ministries/state agencies, are discussing matters on the inclusion of such transactions in the government's Economic Policy Package XIV.  One of the issues that is a focus of discussions is related to taxation. It is expected that imposition of taxes would not put too much burden on the businesses.
        The government will issue the XIV economic policy package, probably in the next two weeks, according to Coordinating Minister for Economic Affairs Darmin Nasution.
       "Perhaps in two weeks. It is still being discussed," Darmin said in Jakarta recently (October 5).

Kamis, 20 Oktober 2016

JOKOWI'S ECONOMIC DEVELOPMENT GETS GOOD RESPONSE

By Andi Abdussalam
          Jakarta, Oct 21 (Antara) - The economic development in two years of President Joko Widodo's (Jokowi's) government has gained positive responses from an economic analyst, financial authority and businesses.
        The Jokowi-Jusuf Kalla (JK) government is considered to have made effective economic breakthroughs and given right responses to global and domestic economic turbulence.
          Businesses also claimed to have gained benefit from the economic development in the past two years.
         "We see that over the past two years, the economic development in the country has been relatively good," Hariyadi Sukamdani, the chairman of the Indonesian Business Employers Association (Apindo) , said in West Nusa Tenggara on Thursday.
         Werry Darta Taifur, an economist specializing in analyzing economic development with the University of Andalas, West Sumatra,  said President Jokowi has been able to make effective economic breakthroughs in his two years at the helm.
         "It was effective because people felt its impact. Of course, we still need one to two years to see the overall results." 

Rabu, 19 Oktober 2016

INDONESIA POISED TO SERVE AS ASPAC'S LOGISTICS HUB

by Andi Abdussalam
          Jakarta, Oct 19 (Antara) - Indonesia, actively working to become a maritime axis nation and expanding its logistics transportation connectivity through a sea toll project, is poised to serve as a logistics center in the Asia Pacific Region.
         With that in mind, the government is developing Bonded Logistics Centers (PLBs) in various parts of the country. So far, it has built 28 PLBs and is planning to build more.
         Now, at least 124 companies wishing to run PLBs business in the country are consulting the government.
         According to Heru Pamungkas, the director general of customs and excise, these 124 companies are currently having consultations on the establishment of Bonded Logistics Center (PLBs). 
    "A total of 124 companies are consulting the Customs and Excise Office. Every week, we have a consultation forum to give a chance to these companies to convey their interest. We assist and provide explanations to them so that they understand various technical matters, facilities and objectives of the PLB," the director general said on the sidelines of the Jakarta International Logistics Summit and Expo (JILSE) in Jakarta on Wednesday.

         Heru noted that of these 124 companies, nine or ten can be asked to run PLB business in the near future.

Selasa, 18 Oktober 2016

EXPORTS DECLINE BUT SURPLUS AGAINST IMPORTS

 By Andi Abdussalam
          Jakarta, Oct 18 (Antara) - Indonesia's exports have been declining over the past three quarters of this year, but they still record a surplus when compared to the imports during the same period.
         The values of Indonesia's exports in the January-September 2016 period were recorded at US$104.36 billion, while its imports in the same period stood at $98.69 billion, thus recording a surplus of $5.67 billion.
         The values of Indonesia's exports over the past three quarters of 2016, which stood at $104.36 billion, declined by 9.41 percent when compared to its exports in the same period a year earlier.
         Indonesia's imports in the January-September 2016 period, which totaled $98.69 billion, also dropped by 8.61 percent over the same period in 2015.
         Based on the data from the Central Bureau of Statistics (BPS), Indonesia's export performance in September 2016, which stood at $12.51 billion, declined when compared to that in August, which amounted to $12.74 billion.

Minggu, 16 Oktober 2016

TEI 2016 BOOSTS INDONESIAN EXPORTS

 By Andi Abdussalam
       Jakarta, Oct 17 (Antara) - Indonesia's exports, up to August this year, dropped 10.61 percent compared to the same period last year. However, Trade Expo Indonesia (TEI) 2016's success is considered a turning point in its export performance.
        The Indonesian Chamber of Commerce and Industry (Kadin) hailed the rise of Indonesian exports, as reflected in the increase in the transaction values of Trade Expo Indonesia (TEI) 2016.
         "This is a good opportunity to see a turning point in our exports. Our exports continued to drop since early this year. We are grateful, as TEI 2016 could create a momentum," Kadin Chairman for export development Handito Joewono said in Jakarta on Sunday.
         The cumulative value of Indonesian exports from January to August 2016 reached 91.73 billion US dollars, down 10.61 percent over the same period in 2015.
          However, the success of this year TEI is expected to become a turning point in Indonesia's export performance. The value of trade sanctions concluded in the TEI 2016 has reached US$974.76 million, up 7.2 percent from last year's TEI transaction value, which stood at US$909 million.

Sabtu, 15 Oktober 2016

FARMERS REJECT PLANNED CLOSURE OF SUGAR MILLS

 by Andi Abdussalam
          Jakarta, Oct 15 (Antara) - Seeing rising sugar mill inefficiency from high costs, low productivity, decreasing sugarcane plantations and idle capacity, the state enterprises ministry is considering shutting down 10 sugar factories.
        This idea contradicts Agriculture Minister Amran Sulaiman's plan when he said last April that he would build 10 new sugar mills to push up sugar production. The minister planned to build new factories as Indonesia so far still imported some 50 percent of its domestic needs which reached about five to six million tons per annum.
         State-owned plantation companies (PTPNs) held a meeting with the deputy for agro-industry and pharmacies of the Ministry of State Enterprises, Wahyu Kuncoro, on October 6 and reportedly agreed to the closure.
         However, the state enterprises ministry plan to close down the mills (PGs) has been rejected by sugarcane farmers.
         Chief Patron of the Indonesian Sugarcane Farmers Association (APTRI), Arum Sabil firmly rejected the plan of the state enterprise ministry to close down nine mills in Java and another one outside Java.

Kamis, 13 Oktober 2016

GOVT LIKELY TO STOP EXPORTS OF UNPROCESSED NICKEL ORES

By Andi Abdussalam
          Jakarta, Oct 13 (Antara) - The government is unlikely to resume its export relaxation policy for unprocessed bauxite and nickel ores after revising regulations governing mineral and coal mining activities.
         "This has not yet been decided, but it is almost certain that we will not give export relaxation for nickel and bauxite ores. I want a further study," acting Minister of Energy and Mineral Resources Luhut Binsar Pandjaitan said in Jakarta on Wednesday.
         Based on Law No. 4 of 2009 on Mining, the government banned the export of unprocessed mineral ores as of January 2004. However, the implementation of the ban was pushed back to January 11, 2017, to give a chance to mining companies to build smelters at home.
         The export relaxation on mineral ores was contained in Government Regulation (PP) No. 1 of 2014. Now the government is drafting a revision of PP No. 1 of 2014. Many parties have expressed concern about the government's intention of resuming its export relaxation for all mineral ores.
         Mines Advocate Network (Jatam) argued that export relaxation of mineral ores will deplete the country's mineral ore reserves in various regions. "Export relaxation of mineral ores will cause the state and people to lose a chance to get added value from the development of smelters," Jatam Coordinator Merah Johansyah Ismail said on Wednesday.

Selasa, 11 Oktober 2016

TIME TO APPLY PRO-FARMER SYSTEM IN PLANTATIONS

by Andi Abdussalam
          Jakarta, Oct 12 (Antara) - The conflict between farmers and an oil palm plantation company in East Kota Waringin District, Central Kalimantan, needs serious government attention and a review of cooperation between farmers and companies.
         In East Kota Waringin District, for example, there has been an incident where local residents forced their way onto a plantation area to seize and harvest the company's nucleus palm oil crop.
         Allegedly, the locals were angry as the company failed to keep its promise to provide them with palm plantations. Normally, large oil palm plantations are cultivated under a Nucleus Estate (PIR) system, where the company (which owns nucleus plantation) cooperates with the farmers whose plasm land is outside the nucleus area.
         In the PIR system, the company owns 80 percent of the nucleus of the plantation, while the plasm farmers own the remaining 20 percent. They cooperate under a mutually beneficial basis.
         In the East Kota Waringin District case, the local people had earlier expressed an interest in an offer made by the company to become plasm farmers and, therefore, they had agreed to use their land. But it remained just a dream and they were left disappointed.

Senin, 10 Oktober 2016

INDONESIA NEEDS TO BOOST ITS MILK PRODUCTION

by Andi Abdussalam
          Jakarta, Oct 10 (Antara) - Calcium-rich milk is something that children, adults and even the elderly need to maintain their health and ensure their bones remain strong to support the body.
         Yet, Indonesia, with a population of about 250 million, is not yet able to produce adequate milk to meet its domestic needs. As of now, it produces only about 20 percent of the seven million liters required daily.
         According to Cooperatives, Small and Medium-Scale Enterprises (SME) Minister Puspayoga, Indonesia must not allow this situation to continue.
         Milch cow farmers must increase and maintain the quality of their milk production. All milk produced domestically, including by members of cooperatives, should be absorbed by the milk-processing industry (IPS) in order to meet the domestic need and reduce imports.
         An executive of one of the country's food and drinks company, PT Nestle Indonesia, argued that to increase productivity and improve the quality of milk, local milch cow farmers should adopt sustainable breeding practices.

Minggu, 09 Oktober 2016

SIMFES 2016 MESMERIZES AUDIENCE WITH TRADITIONAL MUSIC

 by Andi Abdussalam
          Jakarta, Oct 9 (Antara) - A blend of western-originated Country Music and Asian traditional melodies 'hypnotized' the audience during the Sawahlunto International Music Festival (SIMFES) 2016 held in Sawahlunto, west Sumatra, October 7-8 last week.
         The local government, in this case Sawahlunto's Tourism and Culture Service, organized the festival as part of its annual agenda to preserve traditional arts and culture.
         To help enliven it, organizers invited artists and singers to the festival that featured a blend of western and Asian music styles. The event was made livelier by the Country Music presented by Popular singer Tantowi Yahya with the 'Old Friends' music group. It was also livened up with the 'Kingdom of Daykanyama' of Japan and the 'JE Ensamble' of Bengkulu Province.
         The festival, which was witnessed by about 5,000 people was able to mesmerize the audience. After all, a cabinet minister did not want to miss the joyful event, contributing his golden voice that fascinated the spectators.
         "Tantowi was accompanied by the music group The Old Friends," Syukri SSn, the music group manager, said in Sawahlunto.

Sabtu, 08 Oktober 2016

CATTLE BREEDERS TO RECEIVE FREE ARTIFICIAL INSEMINATION KITS

 By Andi Abdusslam
         Jakarta, Oct 8 (Antara) - Indonesia's cattle production is not yet enough to meet the domestic need of beef, making it necessary to import cattle meat even as efforts are on to improve livestock farming at home.
         In a bid to speed up beef self-reliance, the Ministry of Agriculture will provide four million artificial insemination kits free of charge to breeders across the country.
         Indonesia still needs to import one million heads of cows this year to meet the domestic need for beef.  The Ministry of Agriculture and the Ministry of Trade, therefore, require importers to include heifers while importing feedlot cattle. 
   "We hope that some 20 percent of the 700 thousand imported feedlot cattle are heifers," Agriculture Minister Amran Sulaiman said in Yogyakarta on Thursday (Oct 6).

          To expedite cattle production, the Ministry of Agriculture and the Ministry of Trade have made it obligatory for importers to include mother cows in their feedlot cattle imports.
          The government expects that this will enable breeders to earn an income while waiting for the result of the artificial insemination program. Besides, the government is also preparing a plan to grant licenses for cooperatives to import feedlot cattle.

Jumat, 07 Oktober 2016

GOVT IMPORTING BUFFALO MEAT TO STABILIZE MEAT PRICES

 By Andi Abdussalam
          Jakarta, Oct 7 (Antara) - The government will import 100 thousand tons of buffalo meat in an effort to help stabilize the meat prices since beef is still being sold at a relatively high price of Rp100 thousand per kilogram (kg).
         Buffalo meat is being imported as it is relatively cheaper at about Rp65 thousand per kg, even though some consumers in Asia, including in Indonesia, do not particularly have a taste for it. As a result, a few negative voices were being heard from among the traders as well as consumers against this plan.
         However, Agriculture Minister Amran Sulaiman said the government will continue its plan to import buffalo meat from India to meet the people's need for meat in view of the high prices of beef at home.
         "We will continue importing the commodity as long as consumers need it," Minister Amran stated on the sidelines of an exhibition on food and domestically produced goods that opened at Mandala Kredia Square, Yoyakarta, on Thursday (Oct 6).
         According to detikFood¿s online publication recently, the nutritional content of beef and buffalo meat does differ.

BATAM STILL STRUGGLING TO RESOLVE DUAL MANAGEMENT PROBLEM

 by Andi Abdussalam
          Jakarta, Oct 7 (Antara) - Batam, a tiny industrial island of the Riau Islands Province, is still struggling to resolve the problem of dual management.
         The island is governed by the Batam Free Trade Zone Authority (BP Batam) as well as the Batam City government, and businesses have complained about this dual management.
         Chief Economic Minister Darmin Nasution said on Friday that the government will find the best solution to this problem and conceded that businesses have complained about this peculiar situation in Batam.
         "We have to find a solution to this problem. After all, this is a problem that has been lingering on for the past 10 to 15 years. Clearly, it will not be easy to resolve it," the Coordinating Minister for Economic Affairs stated at a meeting with the Regional Representative Council (DPD) and business representatives from Batam in Jakarta on Friday.
         He explained that there are a couple of problems coming the way of  effecting a change in the status of Batam from a Free Trade Zone (FTZ) to a Special Economic Zone (SEZ).
         According to the minister, the government's Development Finance Comptroller (BPKP) is handling the problem of the dual management. The BPKP is carrying out an audit of the BP Batam institution before Batam's status changes to an SEZ effectively after the expiry of the transition period of three years.

Kamis, 06 Oktober 2016

INDONESIA NEEDS TO DEVELOP FISHERY INDUSTRY

by Andi Abdussalam
         Jakarta, Oct 6 (Antara) - It is very reasonable for Indonesia to aim to become the biggest fish processing industrial center in the world as two-thirds of its territory is covered with water, which can be tapped for fisheries resources.
        Fisheries and marine resources, in general, should contribute two-thirds of the economic resources to the country's economic development. However, the country cannot exploit its maritime potential maximally yet.
        The present government has turned to the sea to tap resources for the development of the country's economy, including the fisheries sector.
        However, not much progress has been made for the development of the country's downstream fisheries, such as the development of the fish processing industry.
        Some have assessed that in the upstream sector, the government has shown progress in fighting illegal fishing, banning transshipment at sea, disallowing the operations of fishing vessels of certain tonnage, and prohibiting the use of certain fishing devices.
        However, in the downstream sector, the government still has to work hard to encourage the development of fish industries, such as fish-processing businesses. This is expected to stop the fish de-industrialization trend.

Selasa, 04 Oktober 2016

RESERVOIRS STILL TO BE TAPPED TO THEIR FULL POTENTIAL

by Andi Abdussalam
          Jakarta, Oct 4 (Antara) - Indonesians, like most other people in the world, love to go out for a picnic to unwind at tourism resorts or at other destinations such as lakes after a long and hectic week of working.
         Lake Toba in North Sumatra is a famous natural tourism destination in the country, apart from the Saguling, Cirata and Jatiluhur reservoirs in West Java. Lakes and reservoirs, if cultivated optimally, have numerous economic benefits, including in the tourism sector.
         Indonesia has over 800 reservoirs which can potentially be developed as tourist destinations for holidaymakers and picnic lovers.
        Unfortunately, some reservoirs in the country are in a critical condition while others are also undergoing degradation due to heavy contamination on account of domestic refuse and silting due to soil erosion.
         Therefore, Indonesia needs to rehabilitate its reservoirs or even develop them into tourism destinations. This will benefit the people economically. The regional government of Lebak District in Banten Province, for example, is now offering investors to develop its reservoirs as tourist destinations.
         "We have at least three reservoirs that could be developed as tourism destinations, namely the Palayangan, Cicinta and the Cilemer reservoirs," Jumono, the head of Lebak's Dam and River Affairs Service, stated on Tuesday.

Senin, 03 Oktober 2016

ANCOL TO GO GLOBAL THROUGH TAFISA 2016 GAMES

 By Andi Abdussalam
       Jakarta, Oct 3 (Antara) - It is no longer alien to the ears of many residents of the densely populated Jakarta when one mentions Taman Impian Jaya Ancol, or Ancol Dreamland, an amusement park in North Jakarta.
         Facing Jakarta Bay, Ancol Dreamland has all the adventures the public craves: Sea World, Fantasy World, Atlantis Water Adventure, Marina Beach, swimming pools, an artificial lagoon for fishing, boating and bowling.
         Besides offering visitors an assortment of nightclubs, restaurants, a steam-bath, massage parlors and many other attractions, Ancol is also now busy making preparations to participate globally, by hosting a week-long  international  sporting event beginning this week.
         Ancol will host the sixth Games of The Association for International Sports for All (TAFISA), in which thousands of participants from at least 74 countries will take part.
         Organizers are intensively promoting the world recreational sports, which will be held in Ancol from October 6 to 12. Promotions are being simultaneously made in seven cities of Cirebon, Tegal, Semarang, Salatiga, Solo, Yogjakarta and Purwokerto.

Sabtu, 01 Oktober 2016

CIGARETTE PRICE HIKE CONSIDERED LOW

 By Andi Abdussalam
          Jakarta, Oct 1 (Antara) - Recent media reports about the possibility of the government hiking cigarette prices to about Rp50 thousand ($3.76) per pack, from Rp15 to 25 thousand ($1.13 to $1.88) have triggered an intense public debate.
         Much of the talk is centered around whether the price hike was too high, the efficacy of efforts to cut down the number of smokers, the fate of tobacco industry workers and tobacco farmers and similar other issues.
         The idea to increase the price of cigarettes was first floated by Hasbullah Thabrany of the Health and Economic Study Center of the Community Health Faculty of the University of Indonesia (FKMUI).
         In keeping with Finance Minister Sri Mulyani's views, the decision to hike the excise rate and cigarettes prices was taken in accordance with the Excise Law and was also included in the draft state budget.   
    "The Finance Ministry has not yet issued any new regulation regarding hiking the retail sales price or excise tariff on cigarettes," she had said in August.

         However, on Friday, the minister announced that the government¿s decision to raise the excise duty on tobacco. It will become effective next year as per the Finance Minister's Regulation No.147/PMK.010/2016.