| By Andi Abdussalam |
Jakarta, May 25 (ANTARA) - Beginning next year, Indonesia's economic growth is expected to rely on and shift to investment instead of public consumption and other sectors such as government expenditure. "Right now, public consumption is still dominant, but in 2013, investment will have a bigger contribution than other sectors. Hence, investment will be the dominant sector," declared Chief Economic Minister Hatta Rajasa. The government's expectation about this shifting of the economic growth driver from public consumption to investment was echoed by Finance Minister Agus Martowardojo. The investment sector will serve as the source of economic growth in 2013. "When it occurs in 2013, it will be the first time that the source of economic growth will come from investment, whose contribution will exceed that of public consumption," asserted the finance minister. The finance minister's confidence that the investment sector will become the main driver of the nation's economic growth by next year is based on the fact that investment in the country has continued to increase every year. "The investment in the country has been systematically increasing from 2008-2009 until now," Agus remarked. However, he was unable to predict the percentage of economic growth that will be contributed by investment. "It should be seen first before it is made public, but (we hope) that the investment will grow by over 10 percent," the finance minister explained. Domestic and foreign investments in Indonesia in the first quarter of 2012 totalled Rp71.2 trillion, according to Gita Wirjawan, the chief of the Capital Investment Coordinating Board (BKPM). He said that the figure showed an increase of 32.8 percent, compared with an increase of Rp53.6 trillion for the same period in the previous year. "The increase in investment was generated by the increasingly equitable distribution of investment throughout the country. The growth of investment is in line with the various policies issued by the government," Gita added. According to BKPM, the amount of foreign and domestic investments in 2011 reached Rp251.3 trillion - an increase of 20.5 percent from the corresponding figure of Rp208.5 trillion in 2010. This year's investment is expected to increase by about 10 percent. Consequently, Finance Minister Agus Martowardojo has opined that the investment sector will become the main driver of economic growth in 2013. The government is convinced that investment will provide a greater contribution to the nation's economy in 2013 than any other sector such as government expenditure or public consumption. In the meantime, Bank Indonesia (BI) has also predicted that the increased investment and domestic demand boosted by strong consumption will be the drivers of the country's economic growth this year. In its report on economic prospects for 2012, BI expects to see greater consumption in the household and government sectors, while investments will continue to increase because of the favourable economic climate. In this respect, according to BI, Indonesia's economy will grow by 6.3-6.7 percent, despite the current global economic slowdown. In fact, Vice President Boediono expects even higher economic growth. Boediono expressed his hope that the country's economic growth will reach at least 7-8 percent in order to absorb the existing manpower in the country. "The figure of 6.5 percent economic growth is not sufficient. We want it to reach 7-8 percent in order to reduce unemployment," the vice president pointed out. With regard to public consumption, which is one of the factors that will boost the nation's economic growth, the central bank has projected that household consumption will increase by 4.7-5.1 percent, as the real income of the people is expected to rise, along with the pay raise for civil servants and higher wages for workers. Meanwhile, government consumption is estimated to grow by 5.7-6.1 percent. BI reported that fiscal deficit in 2012 will be kept in check to maintain the country's economic stability. According to BI, investment will grow by 9.6-10.1 percent as the mid-term economic prospects are strong and the domestic market remains attractive for investment. The increase in capital spending and foreign direct investment is also expected to have an impact on infrastructural growth, which is still lagging behind. The investment climate had also improved, owing to infrastructure development and regulations that have helped promote investment growth amid the current global economic uncertainties. Moreover, investment in infrastructure development is expected to increase imports of heavy transportation equipment. Imports of goods and services may still reach 11.6-12.0 percent, thanks to the increasing - though limited - domestic demand and consumption. Economic analyst Tony Prasetiantono stated that at present, the allocation for infrastructure development is less than 3 percent of the Gross Domestic Product (GDP). He said that the government can further increase its infrastructure expenditure through the development budget in order to boost economic growth. "At present, Indonesia's GDP is about Rp7,400 trillion, while the allocation for infrastructure is only about Rp100 trillion. The ideal budget for infrastructure expenditure is about Rp370 trillion, or about 5 percent of the GDP," Tony noted.***2*** |
Jumat, 25 Mei 2012
ECONOMIC GROWTH TO RELY ON INVESTMENT
BALI TOURISM NOT FULLY BENEFITING LOCALS
| By Andi Abdussalam |
Jakarta, May 24 (ANTARA) - Tourism development in Bali, Indonesia's primary tourism province which contributes some 30 percent to the country's tourism revenues, has not yet fully benefited its local residents. "The visits of foreign tourists and domestic visitors, which continue to increase every year, have not yet improved the welfare of all people in Bali," Prof Dr I Wayan Windia of the Denasar-based Udayana Universiy, said on Thursday. This is because the development of tourism in Bali is not yet fully aimed at helping the local people. Some 2.6 million foreign tourists from various countries, and about five million domestic tourists, visit the province annually. This tends to marginalize the agricultural sector, which is the backbone of the local people's economy. Thus, those relying on the agricultural sector remain poor. Bali's population agency in 2009, for example, documented how 215,700 out of the total 3.5 million inhabitants are still living below the poverty line. Per capita income in Bali only reaches Rp12 million (US$1,200). "There is still a wide wealth disparity among districts. The tourism industry flourishes only in the southern part of Bali, leaving other districts underdeveloped," Bali Governor Made Mangku Pastika was recently quoted by the Jakarta Post as saying. Although Bali has been declared one of the world's most famous tourist destinations, the province has to work hard to upgrade its infrastructure and other supporting facilities. Further, the rapid development of hotels, villas, and shop houses, locally known as rukos, has threatened the island's environment. According to Uniting World media online, while Bali is well known as a tourist destination, there is considerable poverty in rural villages away from the tourist areas. Balinese culture is strongly patriarchal, so the impact on women in poor communities is particularly great. Local government receives funding to assist poor people with housing, electricity, water and other basic services. However, the voice of the poorest, especially women, is sometimes not heard in village-based planning meetings. Prof. I Wayan Windia said tourism development is a capitalistic activity which theoretically tended to marginalize weak people from tourist resort areas. He added that Bali is a tourist resort province where tourism is rapidly developing, and is visited each year by 2.6 million foreign and five million domestic tourists. Therefore, he questioned the government's efforts to realize the ideal of equitable distribution of the benefits of tourism development for the welfare of the people who were the object, as well as the subject, of tourism development. This, he said, is important for building a sense of unity and of forging diversity, as part of the efforts to foster the people's identity. Actually, there is nothing wrong with Bali's tourism development, yet, he said, in practice, tourism in the province is still seen, in general, as a 'monster' by the people of Bali. "The Bali people are questioning whether or not it is right for Bali to maintain its cultural tourism concept as a tourist destination," the professor asserted. He explained that the results of the tourism development sector in Bali had not yet holistically reflected the realization of Bali's cultural tourism development, which should serve as a reference to improving and raising the people's welfare standard. Therefore, Bali Governor Made Mangku Pastika, some time ago, urged the central government to allocate to the province a large portion of the national tourism revenue, since it contributed more than 30 percent of the total income. "We don't have natural resources. Tourism is the island's major source of income," Pastika said. In 2008, for example, about 1.9 million tourists visited the island, spending an average of $1,000 per visit. In order to improve the welfare of the people in Bali, President Susilo Bambang Yudhoyono, during a meeting in Bali last week, called for improvements in the economic program in Bali. He made the appeal while opening a coordination meeting being held to evaluate the government's master plan on the acceleration and expansion of Indonesia's economic development (MP3EI) in Bali, West Nusa Tenggara and East Nusa Tenggara. The MP3EI economic development program is a government endeavor that is expected to trigger growth in Indonesia and, in the long run, make the country one of the top five global economies by 2025. "Economic development through the MP3EI program, if successful, will certainly have a positive impact on the reduction of poverty. The program calls for commitment to addressing poverty at the regional level, as well as support of the national program," he said. The MP3EI program mainly focuses on infrastructure development in six corridors spread across the archipelago, including Sumatra, Java, Kalimantan, Sulawesi, Bali, Nusa Tenggara and Papua¿Maluku. Under the MP3EI program, Bali and Nusa Tenggara fall into Corridor V.***2*** |
RI, PORTUGAL FOSTER CLOSER TIES
| By Andi Abdussalam |
Jakarta, May 23 (ANTARA) - The current visit of Portuguese President Anibal Antonio Cavaco Silva to Indonesia is expected to open a new page in the relations between the two countries and expand their cooperation in various fields. It is a historic moment because this is the first visit by a Portuguese President to Indonesia since both countries established diplomatic relations in 1950. It has happened after Indonesia underwent political changes since the reforms movement in 1998. "President Silva's visit is the first of its kind to be conducted by a Portuguese head of state since both countries opened diplomatic relations in 1950, so it will mark a new page and a historic moment for the two countries to reinforce their commitment and build stronger ties and cooperation in the future," Ludiro Madu, the director of Indonesia Centre for Democracy, Diplomacy and Defence (IC3D), said on Tuesday. The meeting between President Susilo Bamang Yudhoyono and President Silva is important because Portugal is expected to understand the change in Indonesia's democratic politics since 1998. Ludiro stated the democratisation of Indonesia's political system would influence the agenda of the country's foreign policy and its international relations. "Indonesia plays an important role in various international issues such as the Palestine, human rights, world peace, and interfaith dialogues," he said. In a meeting on Tuesday with the Portuguese president, President Yudhoyono emphasised the importance of cooperation at the UN and increasing friendly relations between the Association of Southeast Asian Nations (ASEAN) and the European Union. The two countries have agreed to deepen their friendly relations in various international forums. Regarding the relations with the European Union, Ludiro said the Portuguese president's visit was a moment for Indonesia to find new opportunities to penetrate the European market. New initiatives needed to be created in the economic, social and cultural fields so that cooperation in such fields could be enhanced. The Portuguese president has been accompanied by about 20 business delegates and a score of members of parliament. This may create new opportunities for bilateral cooperation, particularly between both countries' business players. "In this context, Indonesia-Portugal relations should not always be limited to government-to-government ties only but also include people-to-people relationships," Ludiro said. According to Presidential Staff for international affairs Teuku Faizahsyah, the presence of the 20-member business delegation in the Portuguese president's entourage is expected to produce agreements on trade and investment. In a dinner hosted in honour of the Portuguese president, President Yudhoyono urged the Portuguese and Indonesian business players to build partnership and create new opportunities. He expressed hope the partnership could be built through meetings involving businesspeople from both countries. Besides, during the state visit of President Cavaco Silva, both leaders are scheduled to witness the signing of a number of memorandums of understanding for cooperation in various fields such as economy, social and cultural affairs, and diplomatic visa. Indonesia and Portugal have agreed to increase the value of trade between the two nations for common welfare. "I believe we have different strengths and can complement each other," President Yudhoyono said during the dinner party. "The Portuguese president and I have agreed to increase the value of trade so that the two countries' bilateral trade relations will be stronger and balanced," he added. President Yudhoyono noted the trade between the two countries was good and could still be increased. From 2010 to 2011 the trade value between the two countries increased by 58 percent, reaching US$171 million. Apart from the economic field, both nations have also enhanced cooperation in the social and cultural fields. They also have a sense of cultural proximity, which could enhance the potential for cooperation. "The closeness could be felt in various parts in Indonesia from Aceh in the West to Flores and Maluku in the East. Even in Jakarta, in the Tugu area, there are Portuguese descents who have preserved the kroncong music which is much influenced by Portuguese music," he said. ¿In Larantuka, Flores, every year ahead of the Easter Day the city is full with pilgrims who wish to celebrate 'Semana Santa' or the Holy Week. Christians there conduct rituals using Portuguese language," President Yudhoyono said. Indonesia and Portugal have also discussed cooperation in the fields of education, youth affairs, sports and mass media. Cavaco Silva welcomed the cooperation proposals presented by President Yudhoyono, saying Indonesia and Portugal had huge potential for cooperation in various sectors. "As a Portuguese president, and for the Indonesian people, I would take concrete friendly steps in the fields of economy, sciences, advanced technology, and other fields where the two countries could complement each other well," he added. The Portuguese president is visiting Indonesia at the invitation of President Yudhoyono. Indonesia's first president Soekarno visited Portugal in 1960.***1*** |
Senin, 21 Mei 2012
TWO INDONESIAN CLIMBERS CONQUER MT EVEREST
| By Andi Abdussalam |
Jakarta, May 21 (ANTARA) - The Indonesian Seven Summit Team ended its expedition to the peak of Mt Everest (8,848 m) after two of its climbers successfully planted the country's flag on top of the world's highest mountain on Saturday. However, two members of the team who climbed from the other side (southern route) of the mountain failed to reach the top. The Seven Summit Expedition Team scaling the mountain consisted of four members of Wanadri, the country's oldest outdoor activity organisation. The four members were divided into two groups - Iwan Irawan and Nurhuda, who climbed from the northern route (Tibet), and Ardeshir Yaftebi and Fadjri Al-Luthfi, who made the ascent from the southern face (Nepal). The Indonesian Red-and-White flag was successfully flown on top of Mt Everest when Iwan and Nurhuda reached the peak from the northern route on Saturday (May 19, 2012) at 7:46 am local time. In order to reach the peak of Mt Everest, which is also called "Sagarmatha Peak," the climbers went through a long process of several stages. They had to constantly coordinate with the guides who accompanied them since the beginning of the ascent. Of the two Wanadri climbers, Iwan Irawan was the first to reach the peak, followed by Nurhuda. They were then followed by Peter, a Swedish climber, and their guides Tashi and Lakpa. "Thank God, the Red-and-White flag has once again been flown on the peak of Everest by the climbers of the northern route," stated Ipong Witono, chairman of the world's Seven Summit Expedition Team, in an SMS sent to ANTARA on Saturday. Ipong expressed his thanks to all prayers conveyed by the country for the success of the team. "Thanks for the prayers, cooperation and guidance. We hope that the other group of Wanadri climbers who scaled the peak from the southern route (Nepal) on Sunday (May 20) will also pull off the same achievement. We also hope that God will bless them so that they can return home with their achievement," Ipong remarked. He said that with their ability to reach the world's highest peak, the climbers deserved to be called "Seven Summiters," a designation awarded those who have successfully climbed the seven highest peaks of the world. The designation is a dream for a world mountain climber. Earlier, the Wanadri climbers during their seven summit expedition have successfully climbed to the top of the six highest peaks in six continents, namely, the Ndugu-Ndugu or Cartenz Pyramid (4,884 m) Peak in Papua, the Kilimanjaro Peak (5,895 m) of Tanzania, the Elburz Peak (5,642 m) of Russia, the Aconcagua Peak (6,962 m) of Argentina (although one climber, Gina Afriani, failed in this attempt), the Denali/McKinley Peak (6,194 m) of Alaska and the Vinson Massif Peak (4,897 m) of Antarctica. Due to bad luck, however, the other two Wanadri climbers failed to conquer the peak of Mt Everest on Sunday. Ardeshir and Fadjri were attempting to scale the mountain from the southern route (Nepal). The Executive Chairman of the Seven Summit Expedition, Yoppie Rikson Saragin, reported from Kathmandu on Sunday that extreme weather had been the main cause of the Wanadri climbers' failure to continue their expedition to the peak. The bad weather compelled Fadjri Al Luthfi to descend from the Southcol Camp-IV (7,950 m) to Camp 2, and then to the Base Camp. With winds blowing at this speed, it was not safe for a climber to attempt the peak. These conditions were very different from the previous prediction that the winds would be at an average speed of 10 metres per second. Yoppie explained that in unfriendly weather, climbers have little chance of accomplishing a 'summit attack.' "At present, the climbers are taking rest at the Base Camp and awaiting their guide leader, Mr Hiro. The climbers are experiencing fatigue," he remarked. Fardjri Luthfi was the only Wanadri climber who was able to reach and stay at the Southcol Base. Ardeshir Yaftebi had earlier returned to the Base Camp because he suffered from laryngitis. These conditions forced the management of the Seven Summit Expedition Team to close the south route expedition and prepare the team to return to Indonesia. "As an executive chairman of the expedition, I must express thanks for all the prayers, guidance, support and cooperation conveyed to us for the realisation of the Seven Summit Expedition," Yoppie added. The withdrawal of the climbers from the southern route means that only two of the Wanadri climbers were successful in reaching Mt Everest's peak - Iwan Irawan and Nurhuda - who both climbed from the northern route (Tibet).***3*** |
Sabtu, 19 Mei 2012
SEARCH FOCUSES ON DISCOVERING SUKHOI'S FLIGHT DATA RECORDER
| By Andi Abdussalam |
Jakarta, 19 (ANTARA) - As the search operation to evacuate the victims was officially terminated on Friday, a 16-member joint Indonesian-Russian team is now focusing its search on recovering the flight data recorder of the crashed Sukhoi in West Java. The Russian-made SSJ-100 with 45 people on board - eight Russians, 35 Indonesians, one Frenchman, and one American - was on a demonstration flight when it crashed on Mount Salak in Bogor district, West Java, on Wednesday (May 9) afternoon. The flight data recorder has not yet been found. Like the cockpit voice recorder which records the conversations of the crew in the cockpit, the flight data recorder records technical flight data and is also a part of the black box. Officials note that the Sukhoi's flight data recorder is needed to reveal the cause of the crash. Therefore, the joint Indonesian-Russian team is now focusing its attention on finding it. The cockpit voice recorder was found last Tuesday (May 15). Members of a joint team from the army's Kopassus special force and the Indonesia Rock Climbing Federation discovered the cockpit voice recorder at the site of the crash. "After checking it, the National Committee for Transportation Safety confirmed that the aircraft item carried by the Kopassus team is the part of the black box," the chief of the Suryakencana Military Command 061, Col. AM Putranto, said. The cockpit voice recorder was later flown by helicopter to Halim from Bogor, West Java, after being officially handed over by Chairman of the National Search and Rescue Agency Vice Marshal Daryatmo to Head of the National Committee of Transportation Safety Tatang Kurniadi at Pasir Pogor Square, Bogor. The cockpit voice recorder arrived at Halim Perdanakusuma air force base on Wednesday. Now, the joint Indonesian-Russian team is focusing its efforts on searching for the flight data recorder. The team, composed of 10 Russian and 6 Indonesian volunteers, was flown to the crash site on Friday. "The team will continue the search for the flight data recorder, which has not yet been found," On Search Commander Col. Inf. AM Putranto, who is also the chief of the Suryakancana Military Resort 061 of Bogor, said here on Saturday. The joint team continued its search for the flight data recorder on Saturday, after it called off Friday¿s search due to poor weather conditions. Officials hope the flight data recorder will provide critical data from the plane during the moments before and after the crash. The Russian team has been involved in the search for the flight data recorder for only three days. "We gave the Russian team three days to become involved in the operations, beginning on Friday when the evacuation of Sukhoi's victims was officially brought to a close," Putranto said. Putranto explained that on Friday the 16 members of the Indonesian-Russian team were at the crash site of the ill-fated plane. But because of rain and bad weather conditions, they were ordered to stop their search expedition and rest at the helipad on the peak of Mt Salak. Two helicopters, a Russian Bolco and a Superpuma, remain on alert at the helipad to pick up team members when they finish their mission. The joint team for the evacuation of the victims was officially halted on Friday, yet operations are still to continue on a regional basis by Military Resort 061, assisted by the National Search and Rescue Agency, the National Transportation Safety Committee and local police. The operation has no deadline and should not be affected by the termination of the operations for the evacuation of the victims. "The termination of the evacuation operations will not affect the search for the flight data recorder, which has yet to be found," Search Mission Coordinator Ketut Parwa said. According to Ketut, the search for the flight data recorder has nothing to do with the termination of the victims evacuation operations, although he has also begun to withdraw his men from the crash site because, at present, the main focus of his team is to discover the flight data recorder. Military Resort 061 Commander Col. AM Putranto said the team searching for the flight data recorder would be assisted by his military command which oversaw the region. The operation to recover the flight data recorder is now being carried out by regional authorities. "We will continue to conduct searches for the flight data recorder and they will be carried out, in turn, with teams assigned for the tasks," noted Putranto. In the meantime, Indonesia has begun to analyze the discovered cockpit voice recorder. "The investigation or downloading of the black box should be conducted in Indonesia in accordance with international regulations about flight safety," Tatang Kurniadi told the press conference. In addition, the Indonesian government is coordinating with the Russian government regarding the downloading of the cockpit voice recorder, he said.***3*** |
Jumat, 18 Mei 2012
OPERATIONS FOR SUKHOI VICTIMS FORMALLY CLOSED
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INDUSTRIES COMPLAIN OF GAS SUPPLY, PLANNED PRICE INCREASE
| By Andi Abdussalam |
Jakarta, May 18 (ANTARA) - Industries have so far complained of a gas supply shortage at their factories, and now they are complaining about the government's plan to increase the price of gas, which will increase their operating costs. The government is unable to meet the industrial sector's gas needs as it prioritises demand from the export market, said the chief of the Indonesian Chamber of Commerce and Industry (Kadin) Suryo Bambang Sulisto. "The policy to export gas is wrong," he remarked recently. The government has taken the wrong step by exporting a large quantity of gas, he observed, adding that the policy will weaken the domestic industry. According to Suryo, the lack of gas supplies to the national industries has made them unable to compete with foreign rivals. "Gas supplies often fluctuate. Sometimes they increase, but at times they decrease and even stop. As a result, many companies turn to coal, which is costly and is not environment-friendly," he explained. "It is impossible for the government to import gas because it is costly," he added. Indonesia's gas lifting is estimated at 1,300 million barrels equivalent to oil per day (mboepd). According to Finance Minister Agus Martowardojo, the government has set a gas lifting target of 1,290-1,360 mboepd for next year's budget. "For accountability and in order that the public know it, we will include the figure of gas lifting (in the state budget) from year to year, which will become part of the budget macro assumption," the minister stated. In an effort to meet the domestic industry's gas requirements, the Indonesian government will review its gas sales contract with Japan in order to meet these requirements, particularly those of the industrial sector. "We continue to respect the existing contract with Japan. Only after the contract expires will the government assess domestic gas supplies," remarked Industry Minister MS Hidayat in the meantime. He confirmed that the government will prioritise gas supplies to the domestic industry. "The government wants the demand for gas from the manufacturing sector fulfilled. Only if there is surplus gas can we export it to Japan," he pointed out. According to the minister, gas supplies are one reason that investors are concerned about investing in the country. "South Korean tyre manufacturer PT Hankook Tire Co Ltd plans to invest around US$1.1 billion in Indonesia until 2018, but the gas supplies to the company still fall short of its needs," he said. Besides of the lack of gas supplies, industries have also complained of the government's plan to increase gas prices for industries. The state-owned gas distributor firm PGN has decided to increase the price of gas for industries by 55 percent from US$6.7 to US$10.2 per million British thermal units (mmbtu) beginning May 1, 2012, said the PGN secretary. PGN Corporate Secretary Heri Yusup said that PGN had taken this decision because its price of purchasing from gas contractors had also increased since April 1, 2012. In the meantime, state-owned power firm PLN also expressed its objection to the planned gas price increase of 55 percent - from US$6.7 to US$10.2 per mmbtu. The head of the PLN fuel and gas affairs division Suryadi Mardjoeki declared that his company would ask for a special gas price, different from that for other industries. "Electricity is somewhat different from other industries," he asserted. Industries, through their various associations, have filed complaints with the government and threaten to go on strike to protest against the planned gas price hike. The leaders of the Association of Indonesian Food and Beverage Producers (Gapmi) and the Association of Ceramic Industries (Asaki) announced on Thursday that they would write to the government to protest the decision by PGN, adding that they would prefer it if the price increase were implemented in stages. According to Heri Yusup, however, the planned gas price hike was still in the process of being made public. "We are still in the process of popularising the plan to increase gas prices for industries. We will make our evaluation based on inputs from the public," he remarked. Meanwhile, Asaki chief Achmad Widjaya complained about the PGN's decision to increase the gas price when it was already unable to meet its quota of gas supplies. "It is strange. They raise the price, but the service remains poor. This is what has made industries send a strong message of protest to the government," he noted. Heri of PGN pointed out that a number of associations and industry consumers had agreed to the plan to increase the price, on condition that gas supply would not decline or even increase. He explained that the contractors who had increased the price of gas that they sold to PGN had promised to increase supplies. According to Heri, the volume of gas supply from gas contractors has already begun to increase, with an average distribution of 800 million metric standard cubic feet per day (mmscfd). The same view was expressed by Industry Minister MS Hidayat, who maintained that industries would actually agree to the price increase as long as they were guaranteed gas supply. "Actually, industries will accept economically feasible prices. What becomes a problem is when the price rises but the supply declines, which obstructs production," Hidayat remarked.***2*** |