SAIL SABANG TO PROMOTE ACEH TOURISM

by Andi Abdussalam

Jakarta, Oct 29 (Antara) - Aceh Province, in the northern tip of Sumatra, will organize an international event called 'Sail Sabang' in a month to come, as part of the annual 'Sail Indonesia' to promote its tourism potential.         The sailing event, which will be held from Nov 28 to December 5, 2017, will be organized around the Weh Island where the Sabang Municipality of Aceh province is located.         During the sail event, activities will take place in four locations, namely on the bay of Sabang, Sabang Fair, Gapang Resort, and Kilometer Zero. It will be held under the theme "Sabang Toward Destination Gate of World Maritime Tourism."    According to the Deputy Speaker of the House of Representatives, Fahri Hamzah, Sail Sabang is a state project in the westernmost province of Aceh, which functions as a gateway to Indonesia.          "Sail Sabang is not just the job of the Event Organizer but the state project to make Sabang as the westernmost entrance of Indonesia," Hamzah stated in Sabang on Saturday (Oct 28).          The local government is now gearing up to organize the event, which is expected to be attended by more than 100 yachts from different countries such as Australia, Singapore, Malaysia, Thailand, and European countries, including those from other parts of the world.

EXCISE TAX IS TOO LOW TO CURB CIGARETTE CONSUMPTION

By Andi Abdussalam

Jakarta, Oct 28 (Antara) - The government has decided to impose a 10.04 percent excise tax hike on tobacco-based products, particularly cigarettes, beginning January 2018, yet the consumer institute describes it a setback, as it will not reduce cigarette consumption.          In terms of percentage, the 10.04 percent increase in excise tax is a setback, as the hike is too low, and even it is lower than the 11.19 percent in 2016. Every tax hike should be progressive until it reaches the minimum 57 percent, as mandated by the Law on Excise.          Hence, the prevalence of smoking in Indonesia is forecast to increase further, with a hike of only 10.04 percent in the tobacco excise tax in 2018, according to the Indonesian Consumers Foundation (YKLI).          "Poor families and juveniles can still afford to buy cigarettes. An increase of 10.04 percent (in the excise tax) will only raise the price by Rp30 to Rp50 per cigarette," YLKI Chairman Tulus Abadi stated in Jakarta on Thursday (Oct 26).          However, Director General of Customs and Excise of the Ministry of Finance Heru Pambudi explained that the policy on excise tax on tobacco-based products is decided after taking into account four factors: health, cigarette industry, labor or employment, and state revenue.

2018 BUDGET EXPECTED TO HELP MAINTAIN ECONOMIC MOMENTUM

by Andi Abdussalam

Jakarta, Oct 26 (Antara) - The 2018 state budget, with a spending set at Rp2,220.7 trillion and a revenue of Rp1,894.7 trillion, is expected to help maintain the current positive economic momentum.         The Bill on the 2018 State Budget was passed into law by the House of Representatives (DPR) at its plenary meeting on Wednesday. Hence, according to Finance Minister Sri Mulyani Indrawati, the government is optimistic of being able to maintain the current positive economic momentum.         Minister Indrawati remarked that the government lauded the support extended by the DPR's leadership and members, including the budget committee and all the commissions, which have worked along with the government, to implement the mandate of the Constitution by deliberating the 2018 state budget bill intensively and constructively.         Hence, the current positive economic momentum will continue to be strengthened in 2018, the finance minister stated.         "The government will maintain the economy and strengthen the momentum to reach 5.4 percent in 2018," Indrawati noted in Jakarta on Wednesday.

GOVT RETAIL BOND SALES STILL BELOW TARGET

By Andi Abdussalam

Jakarta, Oct 25 (Antara) - The proceeds of the Indonesian Retail Bond (ORI) sales are still below the target, especially the ORI014 series. Hence, the government will launch seven more actions of the series before year-end.          Director General of Risk and Financing Management of the Ministry of Finance, Robert Pakpahan, said that he was not worried if the sales proceeds of Rp8.94 trillion of the Indonesian Retail Bond, ORI014 Series, are still below the previously set indicative target of Rp13 trillion.          "In terms of financing, we are not worried because we still have many options," Pakpahan stated when asked in Jakarta on Tuesday (Oct 24).          Pakpahan added that one of the reasons why ORI014 was less attractive to retail investors was because of the low coupon rate of 5.85 percent, following the current interest rate growth. The coupon rate of 5.85 percent is also lower than the coupon rate on the ORI issuance of the previous series.          "Currently, in Indonesia, the interest rate is down, so the 5.85 percent coupon rate is considered low. This reflects secondary market in the state securities market," Pakpahan remarked.

INDONESIA POISED TO BECOME WORLD'S LARGEST GEOTHERMAL POWER PRODUCER

by Andi Abdussalam

Jakarta, Oct 25 (Antara) - The Ministry of Energy and Mineral Resources (ESDM) has estimated that Indonesia will become the world's largest geothermal power producer by 2021.          In the next four years, the capacity of Indonesia's geothermal power plants (PLTPs) will surpass that of the world's largest geothermal power producer, the US.          Geothermal Director of the Directorate General of Renewable Energy and Energy Conservation of the ESDM Ministry Yunus Saefulhak said in 2021, the installed capacity of Indonesia's PLTPs is forecast to reach over 3,550 megawatts (MW).          "In 2021, we are optimistic of becoming number one," he noted in Jakarta, Tuesday (Oct 17).          Indonesia is currently ranked third, in terms of utilization of geothermal energy, behind the Philippines. Currently, the US' PLTP capacity is estimated to remain stagnant at 3,450 MW. Meanwhile, the Philippines' PLTP capacity is forecast to decrease from the current installed capacity of some 1,870 MW.          For 2017, Indonesia's installed capacity target is set at 1,858.5 MW, and the geothermal road map has also been prepared. Saefulhak is optimistic that the target would be met.

JOKOWI MUST FOCUS ON INFRASTRUCTURE IN EASTERN REGION

By Andi Abdussalam

Jakarta, Oct 21 (Antara) - President Joko Widodo (Jokowi) should continue to push for his development program in the infrastructure sector in the eastern region of the country based on his Nawacita development priorities.         Infrastructure development in the eastern region, particularly in Papua and West Papua, is very crucial to increase connectivity and improve the welfare of the local people.         "We hope the efforts to develop the eastern region would not slow down. Please let Pak (Mr) Jokowi accelerate the development in the remaining two years of his term," Andi Rukmana Karumpa of Indonesian Chamber of Commerce (Kadin) said in a statement in Jakarta on Saturday.         Politics, which will begin to heat up in the face of the presidential race in 2019, should not hamper the infrastructure development program. After all, many countries have been on track in the development of their infrastructure.         "Even China, in several ways, has surpassed the US, but we are still embroiled in an endless political squabble," Karumpa pointed out. He expressed hope that all parties would maintain political stability in the last two years of Jokowi administration to ensure that the government is able to function more peacefully.

INDONESIA, QATAR STEP UP ECONOMIC COOPERATION

By Andi Abdussalam

Jakarta, Oct 21 (Antara) - Qatar Emir Sheikh Tamim bin Hamad Al Thani conducted a two-day tour of Indonesia on Oct 17 and 18 to step up bilateral ties, especially in the economic fields.         Visiting Indonesia for the first time since both countries established relations 41 years ago, the Qatari Emir came to Indonesia to explore various economic cooperation and trade, because the value of the two-way trade between the two countries was still relatively small, namely US$900 million last year.           According to the Spokesperson of the Indonesian Foreign Affairs Ministry, Arrmanatha Nasir, about 43 business delegates accompanied the Qatari Emir to discuss and ink economic cooperation in sectors such as energy, investment, trade, economy, health, youth and culture, sports, and civil aviation.          During a meeting with President Joko Widodo (Jokowi) at the Presidential Palace in Bogor, West Java, on Wednesday (Oct 18), Sheikh Tamim discussed cooperation in the development of infrastructure and tourism.          "His Excellency Emir Al Thani and I were discussing efforts to strengthen cooperation in infrastructure and tourism," Jokowi stated in a press conference after the meeting on Wednesday.

PALM REPLANTING TO GENERATE RP125 TRILLION ADDITIONAL INCOME

By Andi Abdussalam

Jakarta, Oct 20 (Antara) - The rejuvenation of Indonesia's aging oil palm plantations will increase the value of the country's crude palm oil (CPO) commodity to about Rp125 trillion per annum.         Hence, the government is launching a replanting program to rejuvenate old palm trees, as some of its 11.9 million hectares of plantation are already old.          Bambang, Director General of Plantation of the Ministry of Agriculture, said that the palm oil replanting program could generate a value-added productivity of Rp125 trillion per year.          According to him, of the total 11.9 million hectares of oil palm plantations in Indonesia, about  4.7 million or 48 percent are people's plantations. A total of 2.4 million hectares among the people's palm estates are still managed in a traditional way, so their productivity is not maximal.          The rejuvenation program for the farmers' oil palm plantations is believed to increase productivity and bring more prosperity to the people, with the full support of the government and the business community.

PKH PROGRAM EXPECTED TO HELP CUT POVERTY RATE

by Andi Abdussalam

Jakarta, Oct 19 (Antara) - The government's Family of Hope Program (PKH), a social protection program that provides cash assistance to the very poor families, is expected to help the government achieve its target of lowering poverty rate by 7-8 percent.         Hence, the government has set a target to cover 10 million beneficiary families under the PKH program in 2018, so that its efforts to cut poverty rate would be successful.         Social Affairs Minister Khofifah Indar Parawansa stated that the PKH was found to be the most effective program, compared to other social assistance and subsidies, as it contributed to a reduction of poverty rates by 0.15 percent.         "Of all social and subsidy assistances in Indonesia, PKH is considered to be the most effective in reducing poverty rates," Khofifah pointed out in a press conference to mark three years of the government of President Joko Widodo and Vice President Jusuf Kalla in her office in Jakarta on Thursday.         In addition, the effectiveness of the PKH is not different from the roles of guiders and coordinators who assist and guide the PKH beneficiaries (KPM).          According to her, out of all assistances and subsidies, only PKH has guiders recruited specifically by the Ministry of Social Affairs.

TEI 2017 RECORDS TRADE TRANSACTIONS WORTH US$1.2 BILLION

by Andi Abdussalam

Jakarta, Oct 16 (Antara) - The five-day Indonesian trade exhibition called the Trade Expo Indonesia (TEI) 2017 held at the Indonesia Convention Exhibition (ICE) in Serpong, Banten, concluded trade transactions worth US$1.2 billion, exceeding its previous target of $1.1 billion.          While closing the TEI 2017 on Sunday (Oct 15), Minister of Trade Enggartiasto Lukita said the value of export transactions will continue to increase with the realization of trade deals and contracts from buyers after the conclusion of the expo.          There are still some potential orders from buyers who are conducting field visits to the production areas of their respective exporters. The TEI 2017 international promotion event had recorded satisfactory transactions worth $1.268 billion, which was 24.3 percent higher than $1.02 billion in 2016.          "The enthusiasm shown by buyers is encouraging, and the value of transactions is something to be proud of," Lukia was quoted as saying by liputan6.com online media.          The TEI is Indonesia's largest business-to-business trade event showcasing the country's best export products. It is Indonesia's main international trade event, with strong participation from both businesses and high-level government representatives.

TECHNOLOGY KEY TO BOOSTING SALT PRODUCTION

by Andi Abdussalam

Jakarta, Oct 14 (Antara) - All sectors in the current technological era will require suitable technologies if they are not to be left behind, including in the production of salt.         Indonesia has the potential to produce and meet its domestic salt requirement, but due to weather anomalies, it has been lagging behind in domestic salt production; thus, it needs to import the commodity.     Although the country was earlier able to produce adequate salt to meet the domestic demand, its production last year was only some 144 thousand tons, much lower than its target of three million tons. The domestic salt requirement currently reaches 4.4 million tons per annum.         Hence, the government is encouraging to increase production and adopt a salt-processing technology.     "The Ministry of Maritime Affairs and Fisheries (KKP) should adopt a salt-processing technology that is adaptive to climate change and requires substantial investment," Subhan Usman, a researcher with Destructive Fishing Watch, stated in Jakarta on Friday.         According to Usman, the KKP has intensively worked to increase the nation's salt production. Moreover, the government has set a target to realize self-sufficiency by 2020. Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan wants the target to be moved forward and accelerated to be realized by 2019.

INDONESIA BEGINS REJUVENATING OIL PALM PLANTATIONS

By Andi Abdussalam

Jakarta, Oct 13 (Antara) - Indonesia, the world's largest crude palm oil (CPO) producer, has begun rejuvenating its oil palm plantations as some of its 11.6 million hectare plantations are now aging.         Rejuvenating its palm plantations is very important for Indonesia to maintain its reputation as the world's largest CPO exporter. Hence, Indonesia is now beginning to renovate its plantations especially in Sumatra.         President Joko Widodo (Jokowi) said the government will continue to rejuvenate the country's oil palm plantations, starting from Sumatra. The President made the remarks when inaugurating the rejuvenation of thousands of hectares of oil palm plantations in Musi Banyuasin District, South Sumatra on Friday.         The aim of plantation rejuvenation is to make the economy continue to increase. Moreover, CPO plays a significant role in the country's economy.         As some plantations are old, there has been a downward trend in CPO production.  According to  the Palm Oil Plantation Fund Managing Board (BPDP),  CPO exports fell two percent by volume in 2015, while production dropped by about seven percent.

PAPUA FOCUSES ON AIR INFRASTRUCTURE DEVELOPMENT

by Andi Abdussalam

Jakarta, Oct 12 (Antara) - The geographical conditions of the Indonesian easternmost province of Papua, especially in the remote areas, pose difficulties for land transportation, forcing the government to pay attention to the development of infrastructure for air transportation.          The means of transportation to reach remote areas in the mountainous regions in Papua is by small airplanes or helicopters. Hence, Papua continues to develop its airports or airstrips to facilitate the arrival of small planes or helicopters.          In Mimika District, for example, the government is developing the Hoeya and Bela airstrips in Jila subdistrict. Besides that, in Biak Numfor District, the Frans Kaisiepo International Airport is also being developed as a hub for air cargoes, apart from serving air passengers.          The Ministry of Transportation also continues to develop air transportation safety system, considering the difficult geographical conditions of regions in eastern Indonesia.         For this, the United States has also provided assistance worth US$1 million for the development of flight safety in the Indonesian eastern region, especial in Papua and Maluku provinces.         Head of Regional Transportation Service of Mimika District, John Rettob, stated in Timika early this month that Papua continued to develop the two airports of Hoeya and Bela in Jila subdistrict.

TEI 2017 SETS TRANSACTION TARGET OF US$1.1 BILLION

By Andi Abdussalam

Jakarta, Oct 11 (Antara) - Indonesia's annual five-day trade expo (TEI) 2017, which was opened by President Joko Widodo (Jokowi) in BSD City, Tangerang, Banten Province, on Wednesday, has set a transaction target of US$1.1 billion.          Indonesia has invited Middle East countries and other nations to take part in the 32nd trade event, as part of the efforts to achieve the target.         The expo, which is attended by business delegations from different countries, such as Jordan, Palestine, Saudi Arabia, Nigeria, and Cambodia, will showcase products by at least 1.1 thousand exhibitors.         The TEI is an annual trade exhibition organized by the Trade Ministry to introduce various high-quality service products and export commodities. The trade expo also highlights Indonesia as a destination country for international investors.         According to Jokowi, Indonesian products must be able to penetrate non-traditional markets in Africa, Eurasia, the Middle East, South Asia, and South America, among others.         Therefore, the president urged Indonesian embassies overseas to identify products in demand that Indonesian businessmen could meet. Indonesian embassies overseas have intensively promoted TEI 2017.

SOEs SHOULD MERGE TO REDUCE DOMINATION IN BUSINESS SECTORS

by Andi Abdussalam

Jakarta, Oct 11 (Antara) - Some 800 subsidiaries of 118 state-owned enterprises (SOEs) need to merge to reduce their domination in business sectors, so that small-scale private firms will have greater access to government projects.         This issue was raised by Rosan P. Roeslani, general chairman of the Indonesian Chamber of Commerce and Industry (Kadin), at its national meeting last week. In his speech, Roeslani highlighted the dominant roles played by SOEs in government projects due to which national private firms had lack of ample opportunities to secure projects.         "We hope the opportunity would first be given to national firms if they are unable to implement the projects and only then should they be offered to SOEs," Roeslani remarked during the meeting attended by President Joko Widodo (Jokowi).         There are several projects handled by SOEs and their subsidiaries, including small projects offered to their subcontractors, which should have, in fact, been offered to private firms and small companies.         Kadin expressed hope that SOEs would implement projects that can become their core areas of business and would not seize portions that should be carried out by the nation's private and small-scale companies.         "We hope that SOEs would return to conducting business in their core areas," Roeslani stressed.

CHEAP FUNDS NEEDED TO DEVELOP RENEWABLE ENERGY

by Andi Abdussalam

Jakarta, Oct 7 (Antara) - Indonesia should not harbor concerns over depleting fossil fuel reserves since it is rich in renewables, as the sources of energy in the future, and geothermal is one of the country's renewable source assets.         Geothermal power in Indonesia is an increasingly significant source of renewable energy, and as a result of its volcanic geology, it is often reported that the country has 40 percent of the world's potential geothermal resources, which is estimated to be 29 thousand megawatts.         However, Indonesia requires funds to develop its new and renewable sources of energy. The government wants renewable sources to contribute 23 percent of the country's energy mix by 2025, and the country has pledged to reduce its greenhouse gas emissions by 29 percent by 2030.         In order to facilitate the development of renewable sources of energy, the Energy and Mineral Resources (ESDM) Ministry is encouraging PT Sarana Multi Infrastruktur (SMI), a state-owned infrastructure funding company, to help develop new and renewable energy by disbursing low-interest loans.          At a presentation of a Micro Hydro project for Indonesia in Jakarta on Thursday, Deputy ESDM Minister Arcandra Tahar said the government is looking for cheap funds to develop the potential of new and renewable energy in Indonesia.

ACEH FARMERS' EXCHANGE RATE DECLINES

By Andi Abdussalam

Jakarta, Oct 4 (Antara) - The exchange rate of Aceh's farmers declined by 0.31 percent in September, as compared to that in the previous month of August.          Yet, the decline in the exchange rate of the farmers does not necessarily reflect a decline in their welfare. Moreover, last month, farmers' products, in the form of commodities, succeeded in boosting the province's economic growth.          The farmers' exchange rate (NTP) is not the best measurement to reflect the farmer's level of prosperity. Yet, it is a good indicator of the farmers' level of purchasing power.          Up till now, experts and observers are still debating whether the level of NTP reflects the level of farmers' welfare. Even though farmers' NTP in September dropped to 0.31 percent, yet in the second quarter of 2017, Aceh recorded an increase in economic growth thanks to the development of its agricultural sector, where about 70 percent of Aceh people are farmers.          Aceh Province recorded a higher economic growth in the second quarter as compared to the first quarter of 2017, owing to the contribution of several sectors, particularly plantation, and other agricultural commodities.

INDONESIA OFFERS INFRASTRUCTURE PROJECTS IN ASEM FORUM

by Andi Abdussalam

Jakarta, Oct 1 (Antara) -  Indonesia offered infrastructure projects to investors and discussed on-going others with partner countries during the 4th Asia Europe Meeting - Transport Ministers Meeting (ASEM-TMM) in Bali on September 26-28.         During the ASEM-TMM forum, Indonesia discussed cooperation in the transportation and other sectors with, among others, Britain, Japan, China, Poland, Hungary, South Korea, the Philippines and Singapore.         During the first day forum, Indonesian  Transportation Minister Budi Karya Sumadi held the first bilateral meeting  with British Consultants to discuss cooperation in guide ship in the  Malacca Strait.          The British Consultants welcomed the idea of collaboration in vessel guides with European, Chinese, or Japanese. "During the first discussion, I proposed to a team from Britain to create a collaboration with ships guide owned by Europe, China, and Japan, and they expressed their ability to do so," the minister said.          Minister Sumadi discussed two possible cooperation with the Minister of Maritime, Economic and Interior Affairs of the Republic of Poland, Marek Grobarcyzk. Firstly, cooperation in the maritime sector, which included efforts to modernize the port in Kuala Tanjung, North Sumatra. Secondly, the offer of cooperation in the bus building industry, which included production and distribution to nearby countries.