Focus

Focus (112)

17
April

On April 17th 2019, Indonesiahold simultaneous General Election. Indonesia had held General Election 11 times since its independence from the colonizers in 1945. The impact of revolution after the proclamation of Indonesian independence and the instability of cabinet were the reasons that the General Election in Indonesia was held 10 years after its independence namely in 1955. The first election in Indonesia was held in 1955. In the 1955 election, Indonesian people voted for members of House of Representatives (DPR). The contestants came from 29 parties. Although Indonesia did not have any experience in organizing general election before, the 1955 election was carried out successfully and conducively. The democracy festivity was transparent and open for all Indonesian people. Therefore, foreign observers perceived that the 1955 election was the most democratic election that Indonesia has ever held.The general election in Indonesia underwent several changes with the passage of time. After the rebellion of the Indonesian Communist Party in 1965 which was successfully countered, the new order was established. The next election was held again during the new order regime namely in 1971. The 1971 election was participated in by 10 parties. The 1971 election aimed to elect members of Indonesian House of Representatives (DPR), and the Regional House of Representatives for Provincial and Municipal Levels.Later, the New Order Regime cut off the number of political parties into two parties namely the United Development Party (PPP) and the Indonesian Democratic Party, plus the Functional Groups or Golkar. At the time, political parties were not allowed by the government to operate at villages. The General Election started to be held regularly every 5 years namely in 1977, 1982, 1987, 1992, and 1997.In 1998, the reformation movement successfully toppled the authoritarian new order regime. The 1999 election was held differently. As many as 48 political parties competed to become members of Indonesian House of Representative (DPR) and Regional House of Representatives (Provincial and Municipal Levels). The 2004 election applied different system. For the first time, in 2004 election, Indonesian people elected not only legislative members but also their president directly. The 2004 election applied the 3% Electoral Threshold so that the number of parties were restricted to 24 parties. Meanwhile, the 2009 election was participated in by 38 parties and local parties of Aceh. The Electoral Threshold was superseded in the 2009 election by the 2.5% Parliamentary Threshold. From 38 parties competing in the election, only 9 of them passed the parliamentary threshold and secured their seats at House of Representatives (DPR).The 2014 election was participated in by 12 parties. But, only 10 parties fulfilled the 3.5% Parliamentary Threshold and secured their seats at the Indonesian House of Representatives. Furthermore, as many as 16 national parties and 4 local Acehnese parties take part in the 2019 election. There are two presidential candidate pairs in the 2019 election. Presidential candidate pair Number 01 Joko Widodo and his running mate, Ma'ruf Amin. Meanwhile, Presidential Candidate pair Number 02 are Prabowo Subianto and, Sandiaga Uno.

15
April

Finally, Indonesia succeeds in producing its own submarine. The type of the main weapon system (Alutsista), submarine made by Indonesian people was officially launched at Submarine Facility Pier  of PT PAL Indonesia in Surabaya, East Java on Thursday, (April 11). The submarine is named "KRI Alugoro-405" which was produced with a technology transfer scheme with South Korea. The launch of the Alugoro-405 submarine was carried out directly by Minister of Defense, Ryamizard Ryacudu and Navy Chief of Staff, Admiral Siwi Sukma Adji. Minister Ryamizard Ryacudu as released by Media Indonesia on Friday said that the Alugoro-405 submarine will operate in all Indonesian waters. This ship is the third submarine made by PT PAL in collaboration with Daewoo Shipbuilding & Marine Engineering (DSME), South Korea. The first two submarines were built in South Korea and are currently in operation. The two submarines are ‘KRI Nagapasa-403’ and ‘KRI Ardadedali-404’. Meanwhile, Alugoro-405 was first built at PT PAL Indonesia.According to Minister Ryamizard, not all countries can produce submarines. In the ASEAN region, only Indonesia is able to produce it. He said that the launch of the third submarine is a major breakthrough in the Indonesian defense industry and it makes Indonesia even more accountable to the world. He also emphasized that Indonesia has no enemy, but the submarine launch shows that Indonesia is able to fulfill its defense equipment. Minister Ryamizard hopes that in the future, Indonesia will be able to sell its defense equipment to other countries. He views that Indonesia's ability to make independent defense equipment is in accordance with the ideals of the nation, which is to become the world's maritime axis.Meanwhile, President Director of PT PAL Indonesia, Budiman Saleh thanked the Ministry of Defense for PT PAL Indonesia to produce submarines. He also said that the construction of the submarine was funded through state funds worth Rp1.5 trillion. According to Budiman Saleh, with the launch of the submarine, the Indonesian defense industry, especially the Navy gains new strength as an effort of the national defense system to guard against potential threats.The Alugoro submarine has a length of 61.3 meters with a speed of 21 knots and is capable of sailing more than 50 days and can accommodate more than 40 crew. This submarine uses the latest technology and another advantage is able to carry out war at sea.

10
April

Indonesian shoes production ranks the 4th in the world after China, India, and Vietnam. With the total production of 1.4 billion pairs of shoes in 2018, Indonesia accounts for 4.6% of the global footwear production. In addition, Indonesia becomes the 4th biggest footwear consumer amounting to 886 million pairs of footwear. These were stated by Director General of Small Medium Enterprises (SMEs) at the Ministry of Trade, Gati Wibawaningsih in her press statement received in Jakarta on Sunday (Apr 7). Gati further stated that currently the number of footwear industry in Indonesia reaches more than 18,000 business units, most of them consist of small enterprises, 441 of them are medium enterprises, while 155 others are large enterprises. Thousands of these footwear enterprises had absorbed more than 795,000 workers.Gati Wibawaningsih explained that the Ministry of Industry provides an opportunity for young generations to participate in Indonesia Footwear Competition 2019 (IFCC 2019) in a bid to support the development of Indonesian Footwear Industry, especially small and medium enterprises.Gati Wibawaningsih explained that Indonesia Footwear Creative Competition 2019 is a 3 in 1 creative footwear competition, comprising design, photography, and videography. The competition is initiated by Indonesian Footwear Industry Development Agency (BPIP) based in Sidoarjo, East Java which is a task force unit under Directorate General of Small, Medium, and Various Enterprises at the Indonesian Trade Ministry. Gati pointed out that BPIP focuses on the improvement of  human resources, advancement of knowledge and technology in footwear industry, as well as standarization of footwear products.Indonesia Footwear Creative Competition-IFCC 2019 is going to be held by BPIP in collaboration with Petra Christian University of Surabaya. Gati perceived that young generations these days have always been fond of channeling their creative ideas through design and product visualization either as commercial activities or merely as hobbies. Therefore, through IFCC 2019, BPIP would like to facilitate young generations to explore more about footwear industry as well as convince them about the significance of footwear industry in the development of fashion. Most importantly, through the event, BPIP would also like to encourage young generations to utilize the opportunity of footwear industry in establishing prospective business in the future.Gati Wibawaningsih expressed her appreciation for the East Java Government's contribution to actively stimulating the development of creative industry through Millenial Job Center.

08
April

The jewelry industry is one of the mainstay sectors, that contributes to the national economy through the achievement of its export value. Director General of Small, Medium and Multifarious Industries at the Ministry of Industry's (IKMA), Gati Wibawaningsih at the opening of the Jakarta International Jewelry Fair 2019 in Jakarta on Thursday ((4/4) explained that domestic jewelry products are able to globally compete and to have high added-value. The Ministry of Industry noted that the export value of Indonesian jewelry products reached US$2.05 billion dollars throughout 2018. The main export destination countries include Singapore, Switzerland, Hong Kong, the United States and the United Arab Emirates. These countries dominate up to 93.02 percent of the total exports of national jewelry products. Gati also said that Indonesia is currently ranked 9th in the world as a jewelry exporter with a market share of more than 4 percent in the global arena. This makes it an opportunity for the Indonesian jewelry industry to continue to increase productivity and expand its market. Therefore, the Ministry of Industry is determined to maintain the availability of raw materials so that business continuity in the jewelry industry sector can be maintained. In line with these efforts, the Ministry of Industry also proposed a reduction in import duties on national jewelry products in export destination countries such as the United Arab Emirates. To further expand the market access of the domestic and foreign jewelry industry, the Ministry of Industry actively facilitates national jewelry small and medium industries (IKM) to participate in international exhibitions. One of them was at the Jakarta International Jewelry Fair 2019 held by the Indonesian Gold and Jewel  Association (APEPI) from April 4 to 7, 2019 at the Jakarta Convention Center. According to Gati, the exhibition also played a major role in efforts to develop industrial investment and jewelry trade. Jakarta International Jewelry Fair is one of the largest jewelry exhibitions in Indonesia, which aims to be a promotional event and business meeting for business people in the jewelry sector. This annual event has been held 13 times. This year, 30 small and medium-sized jewelry industries participated in the exhibition, such as  from Surabaya, Jogjakarta, Bali, Martapura, West Papua and Jakarta.

03
April

Indonesian President, Joko Widodo, inaugurated three Special Economic Zones (SEZs) namely Maloy Batuta Trans Kalimantan, Morotai, and Bitung Special Economic Zones at Sam Ratulangi Airport, Manado City, North Sulawesi on Monday (April1). President Joko Widodo was accompanied by Coordinating Economic Affairs Minister, Darmin Nasution, Cabinet Secretary, Pramono Anung, and Governor of North Sulawesi, Olly Dondokambey.In his remark, President Joko Widodo hoped that through the inauguration of the three Special Economic Zones, various kinds of industry and factories could be established. Thus, the Special Economic Zones can provide plenty of job opportunities for society.In addition to building Special Economic Zones, the government must establish infrastructures to supplement the Special Economic Zones. With proper infrastructures, the products made by the economic zones industry could compete with other products. Moreover, the activities of the industry could be more efficient. President Joko Widodo took Bitung-Manado Toll Road as one of the examples of the infrastructures at Bitung Special Economic Zone.President Joko Widodo also hoped that the three special economic zones would support the equalization of development of Eastern Indonesia region such as North Maluku and North Sulawesi. Previously, only raw materials were exported by the industry surrounding the regions. However, through the Special Economic Zones, it is expected that Indonesia would have its own processing industry in various sectors such as fishery, palm oil, plantation products, as well as tourism.The President pointed out that the export of processed products would give additional value for local economy and provide society with plenty of job opportunities. President Joko Widodo also remarked that he would like to return to Manado next September or October, in a bid to inaugurate Manado-Bitung Toll Road.On the same occasion, Coordinating Economic Affairs Minister, Darmin Nasution said that Bitung Special Economic Zone, North Sulawesi, would be operated to attract investors with the main focus on palm oil, fishery, and pharmacy sectors.Furthermore, Morotai Special Economic Zone will focus on the investment of fishery and tourism sectors. Meanwhile, the investment at Maloy Batuta Trans Kalimantan Special Economic Zone will focus on palm oil processing and energy sectors. Minister Darmin elaborated that the investment value at each of the Maloy Batuta Trans Kalimantan and Morotai Special Economic Zones approximately reaches 37 trillion Rupiah. Meanwhile, the investment value at Bitung Special Economic Zone approximately worth 35 trillion Rupiah. Besides the Special Economic Zones, the Indonesian Government has been establishing supporting infrastructures such as Bitung-Manado Toll Road and Bitung Container Port.

01
April


The Gaikindo Indonesia International Auto Show (GIIAS) automotive exhibition was officially opened in Surabaya, East Java on Friday (29/3). The exhibition is organized by the Indonesian Automotive Industry Association (Gaikindo). Minister of Industry, Airlangga Hartarto, when opening the exhibition said that the export of completely built up (CBU) cars had reached 264 thousand units, and Completely Knock Down (CKD) around 82 thousand units, bringing the total to 346 thousand units.
The Ministry of Industry targets the national automotive exports to be able to penetrate 450 thousand units this year, along with the optimization of local components which increase every year. Minister Airlangga said that the automotive industry is now one of the mainstay sectors in supporting the national economic growth. Therefore, the government prioritizes the development of the automotive industry in order to be more competitive globally, especially amidst the digital era.
He also emphasized that the government keeps creating a conducive business climate in a bid to push the addition of new investments and business expansion in the automotive industry sector. Minister Airlangga Hartarto also pointed out that national automotive products have been competitive in the international arena. This competitiveness is inseparable from the optimization of local components. According to Minister Airlangga, the level of domestic components is the key to success of the national automotive industry sector and this is expected to be a hub for the ASEAN market even at the Asian level.Minister Airlangga added that in the domestic market, Indonesia is superior to Thailand. He targets that production will be able to reach 1.5 million units by 2020. He appreciated the implementation of the 2019 Gaikindo Indonesia International Auto Show which pays serious attention to the transfer of information on technology and innovation of motor vehicles, especially cars. He hopes that this series of exhibitions featuring the latest products and technologies for commercial vehicles can run smoothly, and provide a positive role for the automotive industry in Indonesia. Meanwhile, General Chairman of Gaikindo, Yohannes Nangoi wants the implementation of Gaikindo Indonesia International Auto Show in Surabaya to be one of the important elements to push the growth of the national automotive industry. He added that the exhibition which has taken from March 29 to April 7 will be visited by around 50 thousand people.

27
March

Indonesian President Joko Widodo inaugurated Moda Raya Integrated Public Transportation - MRT Jakarta Phase I, at the Hotel Indonesia Roundabout (Bundaran HI) Central Jakarta, on Sunday (March24). In addition to formalizing the operation of the Jakarta MRT Phase I of Lebak Bulus - Bundaran HI route, President Joko Widodo also launched the construction of the 8.7 kilometer MRT Phase II, of Bunderan HI - Kota. At the beginning of his remarks, the President said, with the operation of the Jakarta MRT, a new civilization began in the capital city. The President advised the Jakarta residents to get used to queuing, time discipline, and maintaining cleanliness by not littering inside MRT stations and trains. President Joko Widodo further said, in the next 10 years, the MRT is targeted to be able to connect 231 kilometers across Jabodetabek or Jakarta, Bogor, Depok, Tangerang, Bekasi. The President asked the Jakarta Provincial Government to start construction of the Jakarta Integrated Moda Raya east-west route in 2019. In the inauguration the President signed an inscription witnessed by Jakarta Governor Anies Baswedan, President Director of Jakarta MRT, William Sabandar, Finance Minister Sri Mulyani and Minister of Transportation Budi Karya Sumadi. Meanwhile, Minister of Transportation Budi Karya Sumadi said the government was very committed to build integrated transportation modes in Jakarta. In line with the President, Minister Budi Karya Sumadi was convinced that the existence of the MRT could make people leave private vehicles and switch to public transportation. The construction of Phase III with the Cikarang route in Bekasi Regency to Balaraja in Tangerang Regency, is planned to begin this year or early 2020. On the same occasion, Finance Minister Sri Mulyani Indrawati said that the MRT was a valuable investment for Jakarta. The minister hopes that the inauguration of the Jakarta Integrated Moda Raya route in Lebak Bulus-Hotel Indonesia Roundabout (Bundaran HI), can solve the problem of congestion and high mobility of the Jakarta's society. Minister Sri Mulyani also hopes that this facility will soon be connected with other modes of transportation, such as Transjakarta and the Commuter Line Electric Rail, including the second phase of the MRT construction which will be carried out immediately.

18
March

The Tanjung Kelayang Tourism Special Economic Zone (SEZ) was officially opened by President Joko Widodo last Thursday (14/3). This area is prepared to become a world-class destination and expected to contribute more foreign exchange from tourism sector. The tourism Special Economic Zone located on Belitung Island, Bangka Belitung Province was built in an area of 324 hectares wide and the investment target is worth Rp 10.3 trillion. The inauguration of the Special Economic Zone was marked by the signing of an inscription by President Joko Widodo. In a press release on Thursday, President Joko Widodo said that the existence of the Special Economic Zone contributes to national economic growth. The President said that he also plans to open other new Special Economic Zone. Coordinating Minister for Economic Affairs, Darmin Nasution said that the Tanjung Kelayang Special Economic Zone is developed as an instrument for the economic transformation of Bangka Belitung from tin mining to tourism community. It is projected to absorb nearly 24 thousand employees. In the future, Tanjung Kelayang Special Economic Zone is ready to become a world-class tourist destination. He explained, the location of Tanjung Kelayang Special Economic Zone is very strategic because Belitung Island is geographically located between Jakarta and Singapore, which is targeted as a captive target. So far, the Tanjung Kelayang Special Economic Zone has succeeded in attracting investment by presenting an international hotel network. Minister Darmin Nasution hopes that the Tanjung Kelayang Special Economic Zone can increase foreign exchange from the tourism sector. The Special Economic Zone is expected to be able to attract Rp 20 trillion in investment by 2025, and bring in 59,000 tourists per year with an economic value of Rp751.4 billion per year when this Special Economic Zone is fully operational. Meanwhile, Secretary of the Special Economic Zone National Council, Enoh Suharto Pranoto explained that in addition to the Tanjung Kelayang,  the National Council is currently reviewing two proposed Special Economic Zones in Bangka Belitung Province. They are Sungailiat in Bangka and Tanjung Gunung Regencies in Central Bangka Regency. Both of these are expected to be established sooner. He added that to make it easier for investors who want to invest, the government has issued a policy of Integrated Business Licensing System, which is also applied in Special Economic Zones.

04
March

The Indonesian government has offcially started applying zero tariffs on Palestinian imported commodities since Thursday, February 28 2019. Indonesian Minister of Trade, Enggartiasto Lukita, Palestinian Ambassador to Indonesia, Zuhair al Shun and Indonesian Deputy Minister of Foreign Affairs, Abdurrahman Mohammad Fachir held a meeting with Indonesian Vice President Jusuf Kalla at the Vice President's Palace in Jakarta on Thursday related to the start of the tariff elimination. Minister of Trade, Enggartiasto Lukita in his statement in Jakarta on Thursday as released by Antara News Agency stated that  in the initial stage, the decision was applied to dates and olive oil. He said that Vice President Jusuf Kalla also emphasized that  "zero tariffs" are applied to other Palestinian commodities without feasibility studies like  general trade agreements with other countries. According to Minister Enggartisto, the application of zero tariffs shows the strong commitment of the Indonesian Government in supporting the strengthening of the social life and capacity of the Palestinian economy and this is expected to increase the competitiveness of Palestinian products. He also explained that the provisions for the elimination of tariffs for the two Palestinian products have been active since February 21, 2019, marked by the sending of a diplomatic note by the Indonesian Ministry of Foreign Affairs to Palestine. Thus, the Indonesian people are expected to be able to enjoy Palestinian dates when Ramadan arrives. Minister Enggartiasto Lukita also emphasized that this step is also an important momentum to improve Indonesia-Palestine bilateral trade relations. Meanwhile, Palestinian Ambassador to Indonesia, Zuhair Al Shun welcomed the long-awaited decision of the Indonesian government. He also submitted a list of other commodities which are considered potential to be given tariff elimination in Indonesia. Data from the Central Statistics Agency (BPS) shows that the total trade between Indonesia and Palestine in 2018 reached US$3.5 million dollars. Palestine is the Indonesia's 164th export destination. The main export commodities to Palestine include coffee, tea, pasta, bread, perfume and soap. Meanwhile, Palestine is the 162nd source of import for Indonesia, with dates as  the main import commodity.

27
February

The entourage of Indonesian trade mission to India in a bid to attend meeting and the 4th exhibition of the India-ASEAN 2019 from 21-23 February 2019 brought positive outcome for the country's economy. Kompas Newspaper on Monday (Feb 25) reported that besides giving opportunity to reduce the customs tariff for the derivative products of crude palm oil, the trade mission succeeded at helping Indonesia's products penetrate the Indian market.The Indian Government would like to reduce customs tariff from 50-45% for the derivative products of crude palm oil, which is the same as the one applied for Malaysia's products. It is one of the points of the Indonesian trade mission delegates led by Indonesian Trade Minister, Enggartiasto Lukita.A number of Indonesian enterprises receive the opportunity to expand their produts to India. The products which can be exported comprise not only the derivative products of crude palm oil but also jewelry, food and beverages, as well as textile products.Director General of the National Export Development at the Indonesian Trade Minister, Arlinda said that the Indian businesspeople also explore the opportunity of purchasing rubber products, spices, and paper from Indonesia. There were at least five Indian businesspeople who attended the business exploration held on the sidlines of the India ASEAN Meeting and Expo to explore the opportunity of Indonesia's rubber commodity.Minister Enggartiasto reported to journalists that the demand of rubber has increased in Indonesia which is the same as their need over vegetable oil. According to Minister Enggartiasto, most of the time, India has always imported rubber from Singapore. However, the rubber itself came from Indonesia.Enggartiasto affirmed the importance of partnership and collaborative principles in trade cooperation. Enggartiasto viewed India as the 4th biggest trade partner of Indonesia but trade is not the matter of rank, benefits, and deficit. The true essence of trade partnership is how trade can support the development and prosperity of the society in both participating countries.The total trade value between Indonesia and India reached US$ 18.7 billion From the trade, Indonesia gained a surplus of US$ 8.7 billion. Meanwhile, 60% of Indonesia's total exports is composed from crude palm oil.

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