BUSINESSES EXPECTED TO MAKE INNOVATIONS AMID RUPIAH'S APPRECIATION

by Andi Abdussalam

Jakarta, Oct 13 (Antara) - The strengthening of Indonesia's rupiah currency, which has appreciated from about Rp14,709 per US dollar a week earlier to Rp13,483 on Monday, will offer a good momentum for industries to develop creativity and innovations.         General Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Suryo Bambang Sulisto affirmed that companies, as part of their business governance, needed a concerted vision in order to increase their creativity and innovations.         "Creativity and innovations in business governance can double business expansion and company profits," Sulisto noted in a written statement on Monday.          Therefore, Kadin has suggested that the subsequent policies to be issued by the government should support the positive momentum of the rupiah, which has been appreciating over the past few days against the greenback.        "The positive momentum needs to be supported by the government's correct and accurate policies," Deputy Chairman of Kadin for banking and financial affairs Rosan Perkasa Roeslani noted.          He expressed hope that the positive indication, in the form of the appreciation of the rupiah and the stock composite index values over the past few days, would be the early signs of the improving Indonesian economy.

FOREIGN COUNTRIES' ASSISTANCE EXPECTED TO END HAZE MENACE

by Andi Abdussalam

Jakarta,  Oct 12 (Antara)- The problem posed by land fires in Indonesia, and the resultant haze which also affected neighboring countries, is expected to end soon as teams from foreign countries commenced fire extinguishing operations on Monday.              The fires and haze have affected health and disturbed daily life in Indonesia and neighboring countries.              The teams from Singapore and Malaysia joined the local forest and land fire prevention task force to commence fire extinguishing operations on Monday, focusing on the hotspots in Ogan Komering Ilir (OKI) district in South Sumatra.              "Today, teams from Singapore and Malaysia, along with South Sumatra's Forest and Land Fires Prevention Task Force, have begun aerial and land operations to extinguish the fires in Ogan Komering Ilir and Musi Banyuasin District," South Sumatra Governor Alex Noerdin stated on  Monday.              The operations were commenced in OKI and Musi Banyuasin, the two districts hit by forest and land fires so badly that they made South Sumatra the biggest haze exporter province in Indonesia during the current drought.     Hence, Ogan Komering Ilir District was accorded priority in fire extinguishing operations because OKI has been the biggest source of haze, compared to other districts in Indonesia, Coordinating Minister for Political, Legal and Security Affairs, Luhut Pandjaitan, told the press on Monday.

BKPM EXPECTS NEW INVESTMENTS FROM SOUTH KOREA, JAPAN

By Andi Abdussalam

Jakarta, Oct 10 (Antara) - The Indonesian Capital Investment Coordinating Board (BKPM) is vying for new investments from Japan's Okayama Prefecture in the automotive component factory and from South Korea in various sectors.         The South Korean investments being expected are estimated to be worth US$600 million.         A major automotive component company, which so far supplied components for Mitsubishi cars, is interested in developing an auto component factory in Indonesia.          On investment from South Korea, BKPM Chairman Franky Sibarani said on Friday his board has identified that South Korea is interested in making a new investment in Indonesia, worth US$600 million.         The BKPM said various firms have evinced an interest to invest in different business sectors, such as a ferronickel smelter, valued at US$300 million, biomass worth US$100 million, palm oil refineries and its derivatives, and the animal food industry and fruit processing, with a combined value of US$200 million.          Sibarani said the South Korean interest was identified through an investment and business seminar on Indonesia, organized by the Indonesian Investment Promotion Center (IIPC) and the Asean Korean Center, on Tuesday.

BUSINESSES WELCOME GOVT INCENTIVES IN ELECTRICITY SECTOR

by Andi Abdussalam

Jakarta, Oct 10 (Antara) -- Businesses belonging to the Indonesian Young Entrepreneurs Association (HIPMI) welcomed the government policy providing electricity incentives for industries.          "The government's third tranche economic policy package, which covers electricity incentives with a tariff cut, is very helpful to businesspeople in the industrial sector," HIPMI Chairman for Trade, Industry and State-owned Enterprises Ian Dafy Fachry said on Friday.          According to Fachry, the lowering of the basic electricity tariff will have direct impacts on the nation's industries, while the reduction in diesel oil prices will have indirect benefits.      "We cannot deny that the lowering by Rp200 per liter of diesel fuel will help industries, particularly in the transportation sector. But its impact is not direct, while that of the electricity tariff will have a direct impact," he said.          Earlier, the government issued a number of policies in the electricity sector for industries, which it included in its third economic policy package.          Minister of Energy and Mineral Resources Sudirman Said remarked on Wednesday that the government has provided three types of incentives in the electricity sector, including an adjusted electricity tariff cut, a 30 percent tariff discount, and installments for paying electricity bills that are in arrears.

POLICY PACKAGE WIDENS MICRO LOAN ACCESS FOR ENTREPRENEURS

by Andi Abdussalam

Jakarta, Oct 9 (Antara) - The third phase of the government's economic policy package offers a chance to get micro loans (KUR) for entrepreneurs and for families with routine income, who wish to do business in the productive sector.          Chief Presidential Communication Team leader Ari Dwipayana said in written statement on Wednesday that the third economic policy package included efforts to expand the recipients of micro loans for small businesses, known as KUR.          "In order to widen banking access for entrepreneurs through the KUR scheme, the government has lowered the interest rate for KUR loans from about 22 percent to 12 percent," Ari said.          Under the new policy package, the government said families with routine income, who are willing to do business in the productive sector, would receive KUR credits.          With this policy, banks that have been assigned to distribute the KUR credits have been asked to actively offer the loans to such families. "This is expected to boost the number of KUR loan recipients and to facilitate the emergence of new entrepreneurs," Ari said.

FUEL PRICE CUTS EXPECTED TO BENEFIT MANUFACTURING SECTOR

by Andi Abdussalam

Jakarta, Oct 9 (Antara) - The Indonesian government has included new fuel oil prices in the third phase of the economic policy package to benefit the real sector, Energy and Mineral Resources Minister Sudirman Said stated.         "Since the beginning, we have decided a pattern of fuel oil price adjustment to be implemented every three months," Minister Said remarked at an energy seminar in Jakarta on Thursday.          He was referring to the government's third phase of the economic policy package, which included lowering the prices of diesel oil, aircraft fuel (avtur), liquefied petroleum gas (LPG), Pertamax gasoline, and Pertalite fuel.          Besides this, the minister also explained the government's reasons to lower the prices of fuels, except that of premium gasoline whose price remains unchanged.          "In nature, it is a multiple price-cut on fuels, such as avtur (aircraft fuel) and diesel oil, which are commonly used for transportation," Said explained.          On Wednesday, Sept. 7, the government announced the third phase of its economic policy package focusing on several fields, which are expected to benefit businesses in the manufacturing sector.          "In this third tranche of the policy package, the government emphasizes on how to reduce (production) costs," Chief Economic Minister Darmin Nasution noted in press statement on Wednesday.

GOVT SHOULD IDENTIFY MAIN CULPRITS OF LAND FIRES AND HAZE

by Andi Abdussalam

Jakarta, Oct 7 (Antara) - The government needs to identify the main culprits behind the land fires and haze that have caused health problems and hindered daily activities in Indonesia and the neighboring countries.         The main culprits of forest and bush fires must be identified to ascertain whether they are plantation companies, nomadic farmers, or individuals, so that effective steps can be taken to overcome the problems.          Environment expert Mohammad Hasroel of the University of Indonesia affirmed that the haze in several parts of the country was caused by land clearing activities for conducting rice farming.          However, according to the environmental forum Walhi, most of the hotspots in Indonesia are found in the concession areas of companies.         The environmental forum pointed out that from January to September 2015, the Institute of National Aviation and Space (LAPAN) recorded 16,334 hotspots, while the NASA FIRM noted 24,086 cases of fires in the five provinces of Jambi, West Kalimantan, Central Kalimantan, South Sumatra, and Riau.