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).

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).

EVALUATING IMPACT OF PACKAGES ON LOGISTICS CENTERS

By Andi Abddussalam

Jakarta, Aug 27 (Antara) - The government will evaluate the impact of its economic policy packages on Bonded Logistics Centers (PLB) to see whether the policy is effective in facilitating the flow of goods in bonded zones.          The evaluation will  be carried out in the Cikarang PLB, West Java, among others, by a team of the Working Group I (Pokja I), one of the four Pokjas set up to accelerate and monitor the implementation of the government's economic policy packages.          The Pokja I will carry out observations in bonded areas as part of its task to conduct a campaign and dissemination of information on the package of policies. The working group also carries out its task of disseminating information through media advertisements.      Her group will see the problems being faced in the implementation of the economic policy packages and try to find solutions to the problems, according to Pokja I Coordinator for Economic Affairs, Diah Maulida. It will see the problems prevailing there before and after the implementation of the policy, she added.

GOVT DEREGULATES HOUSING FOR LOW-INCOME PEOPLE

by Andi Abdussalam

Jakarta, Aug 26 (Antara) - The government has issued a de-regulatory measure to facilitate the construction of low-cost housing for low-income people.          The measure, part of the efforts to implement the government's one million house development program, was aimed at enabling low-income people to have a house of their own. It was contained in the 13th tranche of the government's Economic Policy Package (PKE XIII) announced last Wednesday (Aug 24).          According to Public Works and Public Housing (PUPR) Minister Basuki Hadimuljono, the government specifically issued the PKE XIII as a concrete measure to fulfill what was conceived by the first vice president Bung Hatta.          It was Bung Hatta's dream to provide decent housing for all people, particularly those from the low-income group, including families of the civil servants and members of the military and National Police.      "The aim behind the issuance of the PKE XIII is to facilitate the construction of low-cost houses for low-income people by streamlining the licensing procedures," Minister Basuki Hadimuljono said when visiting the tomb of Bung Hatta at Tanah Kusir Public Cemetery. The visit was also in conjunction with the National Housing Day observed on Thursday.

POLICY PACKAGE INCREASES EASE OF BUSINESS IN INDONESIA

By Andi Abdussalam

Jakarta, April 28 (Antara) - After unveiling its 11th  economic policy package late last month, the government on Thursday announced again the 12th tranche of the package aiming at increasing the ease of doing business in Indonesia.          "This is a big and important package with a wide scope," Chief Economic Minister Darmin Nasution said at the State Palace following the announcement of the new policy by President Joko Widodo(Jokowi)  in Jakarta on Thursday.          President Jokowi  announced the twelfth tranche of the economic policy package regarding the ease of starting new small and medium business (SMEs) undertakings.          The policy package is part of the nine-point development program (Nawacita), which mandates the country to become a self-reliant and competitive nation, the president said.       Through this policy package, the government will make every effort to simplify procedures, cut fees and shorten the settlement of several aspects, including the ease of starting new businesses, application for building construction permits, property registration, electricity donation, and access banking loans, he stated.      This policy package may have a more significant impact and improve the ease of doing business, he said.

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.

POLICY PACKAGES EXPECTED TO BOOST GROWTH NEXT YEAR

by Andi Abdussalam

Jakarta, Nov 19 (Antara) - The series of economic policy packages announced by the government since September will start impacting the economy in the fourth quarter of 2015 and boost growth to about six percent next year.          Coordinating Minister for Maritime and Resources Rizal Ramli believes that several instruments in the government's economic policy packages will encourage aggressive economic growth, taking it to six percent in 2016.          The government has, since September, announced six chapters of the economic policy packages and is expected to soon unveil the seventh installment of the package.          "I think that we would be able to grow by six percent in 2016. Our target over the next two years is that our growth should surpass that of India and the Philippines," Rizal stated in a presentation at the Center of Reform on Economics' (CORE's) Economic Outlook 2016, in Jakarta on Wednesday.

SIXTH POLICY PACKAGE FOCUSES ON SPECIAL ECONOMIC ZONES

by Andi Abdussalam

Jakarta, Nov 10 (Antara) - The government announced its sixth economic policy package on Thursday, last week, focusing on the development of Special Economic Zones (SEZs), water exploitation, and implementation of the National Single Window Service (INSW).          The policy on incentives for investors is aimed at reinvigorating the economy of the country's rural areas through the SEZ development scheme.          "Based on this package, the government has designated eight areas as SEZs to develop the local resources," Chief Economic Minister Darmin Nasution stated while announcing chapter six of the government's economic policy package during a press conference at the Presidential Office in Jakarta on Thursday (November 5).          National Development Planning Minister Djalil had earlier noted that the government, through the policy, will provide income tax incentives, licensing facilities, easy license extension, immigration incentives, and import tax incentives for investors in SEZs.          On tax incentives, Djalil remarked that the government will provide income tax cuts. However, he did not reveal the percentage of cuts on income tax as well as on the time frame for the tax holiday facilities.

GOVERNMENT PREPARES RP1.5 TRILLION FOR EXPORT-ORIENTED BUSINESSES

by Andi Abdussalam

Jakarta, Oct 16 (Antara) - The government will provide Rp1.5 trillion for 30 export-oriented small- and medium-scale enterprises (SMEs; UKMs) as working capital to ensure their survival and prevent them from laying off workers amid the economic slowdown.           The funds worth Rp50 billion to be given to each recipient company are included in the fourth tranche of the government's economic policy package announced on Thursday, October 15.           Finance Minister Bambang Brodjonegoro affirmed that the working capital to be provided by the Indonesian Export Financing Institution (LPEI) for businesses will save some 27 thousand workers from being laid off.          "After making a calculation, we find a potential (working capital) that could safeguard 27 thousand workers from being laid off," Minister Brodjonegoro stated while referring to the LPEI credit extension scheme, which is included in the government's fourth installment of its economic policy package announced on Thursday.          The minister explained that the credit assistance will be provided for SMEs whose businesses are export-oriented or supporting exports in a bid to ensure their survival and prevent worker layoffs.          The working capital will be given to 30 small companies, each having at least 50 workers though not exceeding 5,520. The assistance will be channeled by state-owned or private banks as well as capital venture and leasing companies that are partnering with the LPEI.

GOVT ISSUES FOURTH INSTALLMENT OF ECONOMIC POLICY PACKAGE

By Andi Abdussalam

Jakarta, Oct 15 (Antara) - The government on Thursday announced the fourth installment of its economic policy package, aimed at enhancing employment, increasing the number of micro loans (KUR) recipients and facilitating export development by small businesses.          Thursday's policy package is a follow up of the first and second phases of the policy package issued in September and the third installment announced on October 7.          The fourth installment is primarily aimed at solving the problems in the manpower sector, enhancing the number of KUR recipients and boosting exports for small-scale businesses.          "We hope the latest economic policy package can easily boost the business world. This policy is expected to facilitate of the growth in job opportunities and incoming investment," Cabinet Secretary Pramono Anung said on Thursday.          He said the newly announced policy package, therefore covered policies on the deregulation of the wage system, expansion of KUR recipients and the extension of credit by the Indonesian Export Financing Institution (LPEI) to small-scale businesses so that they can ramp up their exports.

SECOND ECONOMIC PACKAGE AIMED AT ATTRACTING INVESTMENT

by Andi Abdussalam

Jakarta, Sept 29 (Antara) - The Indonesian government announced a second tranche of economic policy package on Tuesday, aiming to attract more investment by providing facilities to investors and exporters to do business in the country.          According to Chief Economic Minister Darmin Nasution, since the aim is to draw more investment, the government is determined to cut the bureaucratic red tape and the time taken to wrap up licensing procedures to only a few hours from the several days it used to take so far.          Unlike the first economic policy package announced by President Joko Widodo himself on September 9, 2015, the second economic policy package was announced on Tuesday (Sept 29) by the working cabinet ministers.          Several policies issued by the government are aimed at simplifying procedures and expediting the licensing process to draw more investment.          "(We) hope that it would need only three hours," Minister Darmin Nasution said when announcing details of economic policy package at the presidential office on Tuesday.

GOVERNMENT EXPECTED TO ISSUE SECOND PHASE OF POLICY PACKAGE

By Andi Abdussalam

Jakarta, Sept 22 (Antara) - After announcing the first phase of the economic policy package on September 9, the government is planning to unveil the second phase of the same package at the end of this month.          "We will complete the process in the second half of September as the president will return from his visit to the Middle East on Sept. 15," Chief Economic Minister Darmin Nasution stated.          The minister made the statement at Halim Perdanakusumah Airport on Friday (Sept. 11) after bidding farewell to President Joko Widodo (Jokowi) who departed on a four-day visit to several Middle Eastern countries.          Nasution stated the government would soon issue a second phase of the policy package comprising four groups of regulations to overcome various economic problems.          "There will be four groups (of regulations) in the second phase of the policy package," Nasution said.

ECONOMIC PACKAGE SHOULD BENEFIT GENERAL PUBLIC

by Andi Abdussalam

Jakarta, Sept 11 (Antara) - The economic package policy issued by the government on Wednesday should focus not only on investment that benefits businesses, but also on improving the welfare of the general public, including fishermen in the coastal areas.         The working cabinet of President Joko Widodo should not give second priority to the economy of the people in the coastal areas, a fisheries representative said.         The People's Coalition for Fishery Justice's (Kiara's) Secretary General, Abdul Halim expressed concern on Friday that the economic policy package would reduce the state's role and give free access to investors through new market mechanisms.         "If there is an emphasis only on investment, it will not improve the fishermen's welfare. Fishermen will be adversely deprived of their basic rights through economic policy deregulations," Halim said.         He further said that it would become impossible for the government to improve the welfare of fishermen, fish pond cultivators and salt farmers if it depends on deregulation.         But according to President Joko Widodo, the economic policy package will also improve the welfare of fishermen.        "The stimulus package is expected to facilitate inter-regional trade and tourism, as well as increase fishermen's welfare and the production of fish catch. The package will also economize fuel by 70 percent through the conversion of diesel fuel into liquefied petroleum gas (LPG)," the President said on Wednesday.

OBSERVERS DOUBT EFFECTIVENESS OF GOVT'S POLICY PACKAGE

by Andi Abdussalam

Jakarta, March 24 (Antara) - Some economic observers have raised doubts about the effectiveness of the recent government's economic structural reform policy package implemented to control fluctuations of the rupiah currency against the US dollar.          On Monday, last week, the government issued an economic policy package aimed at improving the performance of Indonesia's trade balance and services trade balance, which had become the dominant contributors to the country's current account deficit.          The government economic structural reform policy package comprises policies on tax allowance, anti-dumping import duties, visa-free facility, the use of 15 percent biofuel mix,  the application of Letter of Credits for mining companies, and the restructuring of domestic reinsurance firms.          Economic political observer Ichsanuddin Noorsy pointed out that the government's economic policy package was not adequate to strengthen the rupiah value to a stable level.          "Even though the government implements the economic policy package, the rupiah currency will remain under turmoil," noted Noorsy.

GOVT BRACING ITSELF FOR FACING ECONOMIC UPHEAVALS

By Andi Abdussalam

Jakarta, Aug 22 (Antara) - The Indonesian government is formulating a package of economic policies it will announce on Friday in the face of current economic upheavals.          The Ministry of Finance, the central bank (Bank Indonesia/BI) and the Financial Service Authority (OJK) are now engaged in a close coordination an effort to maintain national economic stability.          "We are taking anticipatory measures in the face of the current economic conditions. We have now good communication and exchanged information to share similar views," Finance Minister Chatib Basri said after having a coordination meeting with BI Governor Agus Martowardojo and OJK Chief Commissioner Muliaman Hadad on Wednesday.          Chatib said that the current conditions were different from the economic crisis in 2008 or in 1998. But the government is preparing a step in the form of a package of economic policies to stave off current account deficit, the weakening of the rupiah currency and to maintain growth.          President Susilo Bambang Yudhoyono chaired a cabinet meeting to discuss efforts to face the current economic conditions on Wednesday.          "The government will formulate measures to maintain financial stability, curb inflation and maintain growth so that it will not drop sharply," the President said after chairing the meeting.          The package of economic policies is expected to be implemented even before next week.