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Focus (385)

18
December

Public Works and People Housing Ministry kept increasing new dam development in some provinces to support national water and food resilience. One of the provinces to have more dam is Lampung. In the province, two dams will be built namely Way Sekampung Dam in Pringsewu and Martatiga Dam in Martatiga District. Minister Basuki Hadimuljono in official statement in Jakarta, Sunday said, water resource and irrigation management will be continued to support sustainable agricultural production.

Minister Basuki said, the three dams will also have raw water, energy, flood control, and tourism which will increase local economy. The two dams will complement water management system, including irrigation supply from Batutegi Dam that had been operating since 2005.

Way Sekampung Dam has 68 million cubic meter capacity to add around 15,000 hectares of irrigation in the Sekampung Irrigation System to be total 70 thousand hectares in total. It was expected the planting intensity can be increased 260 percent mainly for Pringsewu Regency.

The dam will also provide raw water for Bandar Lampung City, Metro City, and South Lampung Regency for almost 2,500 liter per second, with 5.4 Megawatt power potential. The dam can reduce flood amounting to 185 meter cubic per second and becoming tourism object in Pringsewu Regency.

Martatiga Dam is under development with capacity of 148 million cubic meter in the downstream of Way Sekampung River. It is projected to water irrigation land for almost 11 thousand hectares and as raw water source with 830 liter per second capacity.

Besides Way Sekampung and Martatiga, there have been Seguruh and Jabung dams. All were built to optimize Way Sekampung River water which has great potential, especially for irrigation.

16
December

The Ministry of Agriculture strengthens cooperation with Saudi Arabia to increase trade, specifically agricultural commodities, including rice exports. Upon receiving the arrival of the Saudi Ambassador to Indonesia, Essam bin Abed Al-Thaqafi in Jakarta last Thursday (12/12), Minister of Agriculture, Syahrul Yasin Limpo guaranteed that Indonesian agricultural commodities could be exported to Saudi Arabia, especially for Muslim residents in the country, because all rice products of Indonesia have been halal-certified.

On the same occasion, Expert Staff of the Minister of Agriculture in International Trade and Relations, Banun Harpini explained that at this time, Saudi Arabia is still importing its rice needs from Thailand, India and the United States. He also said that frozen chicken products would be offered for export, remembering that the source of imported chicken from Saudi Arabia comes from Brazil and contains salmonella. So, the frozen chicken has to be stopped for a while. Therefore, Indonesia will replace the frozen chicken market for Saudi Arabia. Banun added that other potential commodities for Saudi Arabia are Cavendish bananas and pineapples which have been exported to various countries so far.

To accelerate exports, the Indonesian government is given the opportunity to introduce Indonesian agricultural products through an exhibition to be held by the Saudi Embassy in Jakarta in January 2020. Furthermore, in February, the Ministry of Agriculture will officially visit Saudi Arabia as a follow-up to the trade cooperation in agricultural products.

Meanwhile, Saudi Arabian Ambassador Essam bin Abed Al-Thaqafi stated that his side has held a discussion with the Ministry of Agriculture regarding Indonesian agricultural products that could be exported. He also said that he would immediately implement a memorandum of understanding between the Indonesian Ministry of Agriculture and Saudi Arabia in the near future. One of the memoranda of understanding is directly related to agriculture, such as conducting training for farmers and the plan to export agricultural products, including agricultural machinery needed by Saudi Arabian market.

11
December

Indonesia invited Thailand and Malaysia as member of International Tripartite Rubber Council (ITRC) to protect rubber farmers. Indonesia also invited the two countries to arrange joint effort in overcoming other natural rubber issues for the sake of the farmers. Press release of Indonesian Trade Ministry mentioned that it was stated by Indonesia which led the ITRC meeting in Jakarta on December 2-5.

APEC and International Organization Negotiation Director of Trade Ministry Antonius Yudi Triantoro said, the meeting discussed global natural rubber market condition and arranged concrete steps in overcoming low natural rubber price, which directly affects rubber farmers’ welfare. All related sides need to protect rubber farmers with various planned efforts.

In the meeting, ITRC member countries agreed to keep being comitted to maintaining natural rubber supply through ITRC scheme and to expand cooperation framework with other producing countries. ITRC has the scheme to maintain natural rubber supply through Supply Management Scheme (SMS) and Agreed Export Tonnage Scheme (AETS).

To increase rubber consuption in third countries, ITRC created Demand Promotion Scheme (DPS) as platform for member countries to convey strategies to increase domestic natural rubber use such as for asphalt mix and various other natural rubber-based innovations.

ITRC Scheme aims to maintain natural rubber sustainability by stabilizing global natural rubber price. Sustainability of natural rubber must be fought for. Price improvement is also being strived for, so that farmers keep cultivate their rubber plants.

According to Antonius, low rubber price also makes farmers downgrade plant maintenance quality by reducing the use of fertilizer and pesticide. Thus, rubber leaves in Indonesia, Malaysia, and Thailand are attacked by pestalotipsis. That allows this disease grow and reduce natural rubber production.

Besides that, by expanding cooperation framework with other producing countries, it was expected that the measure taken will have greater significant influence towards global natural rubber market. Indonesia, Malaysia, and Thailand need to invite other producing countries, especially in ASEAN and other rubber organizations such as the Association of Natural Rubber Producing Countries (ANRPC) to synergize in overcoming various problems. 

09
December

Indonesian Minister of Foreign Affairs, Retno Marsudi and her Fijian counterpart, Inia Batikoto Seruiratu agreed that the two countries promote concrete economic cooperation in the Pacific region. Minister Retno Marsudi met Minister Inia on the sidelines of the 12th Bali Democracy Forum in Nusa Dua, Bali on Thursday (5 December). This was reported in  a written statement of the Indonesian Ministry of Foreign Affairs issued on Friday (6/12). On this occasion, Minister Inia Batikoto affirmed his support for the Indonesian government's commitment to enhance cooperation with the South Pacific countries, as a form of Indonesia's contribution to the security stability, peace and prosperity in the region.

Based on the successful implementation of the Pacific Exposition in Auckland, New Zealand in July 2019, the government of Indonesia once again invites Fijian government to collaborate in the Pacific Fair 2020 which will be held by Indonesia. Pacific Fair 2020 is expected to produce more concrete partnerships in the economic field in a bid to maintain the positive partnerships that have been established between Indonesia and the South Pacific countries during the Pacific Exposition.

Furthermore, both ministers also discussed the initial preparations for the formation of the Indonesia-Fiji Preferential Trade Agreement (IF-PTA). The trade agreement is expected to expand the opportunities for economic cooperation between the two countries in the fields of investment, infrastructure and connectivity. Thus, both sides hope that the initial stage of IF-PTA negotiations can be carried out in the first quarter of 2020.

In the field of agriculture, Minister Retno Marsudi said that the Fijian government specifically expressed hope that Indonesia could provide capacity building assistance in the form of training to manage agricultural products, such as cassava and sweet potatoes.

In addition, Indonesia and Fiji are exploring cooperation for the development of seaweed. This collaboration is concretely carried out in a partnership project between the two countries to establish a seaweed center.

Based on the written statement of the Indonesian Ministry of Foreign Affairs, so far the Indonesian government has continued to be committed to playing a major role in overcoming various challenges faced by countries in the Pacific region where most of the regions are island nations.

These challenges bring about impacts of climate change, marine issues and natural disasters. Besides, the Indonesian government also wants to contribute to efforts to develop the Pacific region.

05
December

Minister of Environment and Forestry Siti Nurbaya Bakar stated Indonesia’s commitment in handling solid waste at sea by 70 percent by 2025. The commitment was conveyed by Minister Siti Nurbaya before 26 ambassadors, including 10 ambassadors of ASEAN member countries and 16 ambassadors of ASEAN Partner countries, who participated in the ASEAN Coastal Clean Up 2019 event at the Mangrove Natural Park, Angke Kapuk, Jakarta, last Saturday.

Minister Siti Nurbaya said that Indonesia realized the challenges ahead would be even greater. Only through cooperation and collaboration these important problems can be overcome. Siti Nurbaya asserted that the Indonesian government has taken strategic steps in handling solid waste at sea, especially plastic, and has implemented the UN Agenda in 2030 for sustainable development.

These commitments include reducing solid waste at sea by 70 percent by 2025. He said, in the initial steps of this commitment, President Joko Widodo had issued a Presidential Decree on the National Policy and Waste Management Strategy in 2017. President Joko Widodo had also issued a Presidential Decree Number 83 year 2018 which discusses the strategic action plan to deal with marine waste from 2018 to 2025.

Siti Nurbaya also said, Indonesia had prepared a National Action Plan to reduce plastic waste through various activities in collaboration with all stakeholders, including local governments, businesses, communities, who had taken the initiative and innovation in combating this issue.Besides strengthening at home through the collaboration of all parties, Indonesian Government also actively involved in overcoming sea pollution within the framework of international cooperation.

To ensure all of these commitments, Indonesia has established a Regional Capacity Center for Clean Seas (RC3S) in Bali. This center will strengthen capacity building in the field of marine environmental protection from land-based activities.

Meanwhile ASEAN Secretary General, Dato Lim Jock Hoi, who was also present at the ASEAN Coastal Clean Up 2019 appreciated the Indonesian Government in terms of waste management and also appreciated the seriousness of the Ministry of Environment and Forestry in involving young people and the community to care for the environment.

02
December

Global economic conditions are projected to be unstable next year. However, the Indonesian government is committed to resisting the threat of declining economic growth as has happened in several countries. As reported by Antara, President Joko Widodo at Bank Indonesia Annual meeting in Jakarta on Thursday (11/29) said that Indonesia must be grateful because the economy could still grow above five percent.


President Joko Widodo also stated that for the G20 member countries, Indonesia's economic growth is only surpassed by China and India. Indonesia is in the third position, one level above the United States. President Joko Widodo is optimistic that next year, Indonesia's economy will be able to resist. On this occasion, he praised the coordination between three economic forces: Minister of Finance, Governor of Bank Indonesia, and Chair of the Financial Services Authority (OJK). According to him, without good communication, macroeconomic policies would not support each other.


President Joko Widodo further asserted that the government would focus on private sector growth. Because the role of the State Budget (APBN) in economic growth only reaches around 14 to 17 percent. He ordered that projects across Indonesia have to be carried out first by the private sector.


An optimistic view was also expressed by  Governor of Bank Indonesia, Perry Warjiyo who emphasized that the prospects for the Indonesian economy in 2020 are maintained with growth momentum to continue According to him, Indonesia has prepared a number of strategies to deal with the global economic crisis that will still occur in 2020. Indonesia's economic growth in 2020 is expected to increase from 2019 in the range of 5.1 to 5.5 percent.


This optimism arises because the 2020 inflation is projected to remain under control according to the target of 3.0 percent plus minus one percent. In addition, the current account deficit in 2020 is in the range of 2.5 to 3 percent of Gross Domestic Product (GDP). The capital and financial transaction surplus is projected to remain large to support external stability.

The Rupiah exchange rate in 2020 is also expected to move stable. The growth of banking third party funds in 2020 is predicted to reach 8 to 10 percent. Governor Perry also pointed out that the driving force of 2020 growth remains in consumption and investment. Bank Indonesia is also committed to continuing to issue accommodative monetary policies.

27
November

The pace of technology development had changed human life dramatically. That was stated by Indonesian President Joko Widodo in ASEAN-Republic of Korea CEO Summit at Busan Exhibition and Convention Center (BEXCO) on Monday (Nov25). President Joko Widodo said, the world changes rapidly and it is called the age of disruption. Big data, artificial intelligence, 4.0 technology had torn down all definition, measurement, and theories that have been used as reference until nowadays.

The Indonesian president further explained that the age of disruption brings a great opportunity, but along with unimaginable challenges. They are increasing tendency of economic nationalism and populism in some countries for several recent years. Even now, anti free market movement has emerged and protectionism approach dominates further.

President Joko Widodo stated that collaboration and win-win paradigm that in some decades had been basis for global economic cooperation is gradually replaced by transactional and zero-sum-game approaches. If nothing is done against them, global economic recession resulting from dysfunctional economic system and global finance as well as distrust towards global economic institution that had happened in 1930s, could repeat. The loss will be experienced by developed countries, emerging economies, developing countries, as well as business world. Therefore, President Jokowi affirmed that it is common responsibility to reject the global economic recess.

Apart from age of disruption, during the forum President Joko Widodo also spoke about renewable energy. According to the President, ASEAN and South Korea must be the foremost in renewable energy development in the region. He explained, Indonesian government had issued the obligation to mix biodiesel fuel from palm oil with solar amounting to 20 percent, which is called B20.

Next year, Indonesia will increase it into 30 percent or B30. Currently, Indonesia is developing water-based power plant. This is part of commitment made by Indonesian government towards Paris Agreement, namely utilizing low-emission energy. 

21
November

Directorate General of Law Enforcement, Ministry of Environment and Forestry held Simpatik Operation for ecosystem restoration of Mount Tilu Bandung regency and Papandayan Garut Regency on Monday, November 18, 2019. The operation was held by Directorate General of Law Enforcement in cooperation with Conservation Center and Natural Resources of West Java, Perhutani Forest Prevention and Security of South Bandung, TNI, the Police and the local apparatuses.

Head of sub directorate of Forest prevention and security of Java and Bali region Taqiuddin said that the join team try to implement preservation of forest area of Citarum that has turned the land function into vegetable plantation.

During the time there are various agricultural activities at the natural conservation area, such as planting vegetables. So, the area which was previously as conservation forest now experincing degradation. The illegal activity has impacted to the change of ecosystem and degradation of forest function. During the dry season there happened lack of water and drought, while in rainy season flood and landslide threaten people’s life. Moreover, biodicersity in the area also threaten to extinct. Taqiuddin also stated that natural conservation and Mount Papandayan Natural Park and Mount Tilu Natural park are so far been certain fauna and flora habitates.

Taqiuddin added, by conducting preservation action for the two coservation parks, the areas experiencing regreening naturally. Then the forest will give contribution for water management and flood prevention. During the time, the joint team has successfully saved 7,000 hectares land. Of the total land it has been used as plantation area about 300 hectares at the natural conservation and natural tourism park.

25
November

President Joko Widodo has decided to return all investment licensing authority from the ministry to the Investment Coordinating Board -BKPM. Cabinet Secretary, Pramono Anung said that as a follow up, all ministers are asked to revoke 40 ministerial regulations considered to hamper investment and ease of doing business at least late December 2019.

After attending a limited meeting about the acceleration of ease of doing business at the Presidential Office in Jakarta, last Thursday (11/21), Pramono Anung said that his side has made an official letter to BKPM in accordance with President Joko Widodo's direction that once again the licensing authority becomes the full responsibility of BKPM. According to Pramono, the decision is aimed at improving the ease of investing or doing business in Indonesia.

In a World Bank report released last October, the rank of the ease of doing business (EEDB) in Indonesia was 73, down from 72 in 2018. The government targets Indonesia to be 50th rank in the ease of doing business in 2021, then 40th rank in the following years. Thus, President Joko Widodo assesses that there is a need for licensing reform. Pramono explained that licensing is made at the one door of BKPM because in such a world condition, Indonesia could not possibly move forward if obstacles in the government still exist.

Meanwhile, Head of BKPM, Bahlil Lahadalia emphasized that his side has begun to change the paradigm. So far in obtaining permit, the investors have been through some ministries by the assistance of BKPM. This case is considered difficult. Through President Joko Widodo's instructions, investors can invest their capital in Indonesia and they no longer need to go back and forth to the ministries to arrange a permit so that they can choose any regions across Indonesia to invest.

As new Head of BKPM, Bahlil added that there was an unexecuted  investment worth Rp 708 trillion. After a month in office or until last week, there has been an investment worth Rp 89 trillion which has been executed. Bahlil also pointed out that the government would form a one-stop system in managing ship permits.

13
November

The city government of Denpasar is currently focusing on lifting again the old potential which contains cultural values through "Heritage Tourism". That was stated by Denpasar Mayor, Ida Bagus Rai Dharmawijaya Mantra when becoming a speaker on" the 38th Executive Committee and International Seminar on Heritage and Sustainable Tourism" in the frame of "City Net Forum" in Nepal. 

Mayor Rai Mantra in a press release which was received by Antara News Agency in Denpasar, Monday (12/11), said that development of tourism sector currently has complex challenges, therefore it needs innovation to keep the stability of tourism sector. The existence of tourism sector can give sustainable and mobile benefitas the development of civilization. According to Rai Mantra, challenges of sustainable tourism development arean ability to create new tourism.

Mantra explained that the city government of Denpasar is currently focusing to arrange andprepare various supporting infrastructure to support the sustainable tourism sector, especially the development of cultural heritage tourism which is this time focused on development of Z Heritage zone which includes Jalan Gajah Mada, Jalan Sulawesi, Badung market and surrounding area in Denpasar.

Various efforts are optimizing to support development of sustainable cultural heritage tourism, beginning from the arrangement of cultural tourism area by putting forward program of preservation, collaboration, creativity, entertainment, conservation, education and "playground". 

In front of hundreds of participants of the seminar, mayor Rai Mantra exp[lained about the development of tourism sector which should be guided on input such as creativity, process, output that can be seen from visits, and also "outcome" asthe immediate benefits derived from an activity.

According to the Mayor, the important thingform cultural heritage is preservation, because its authenticityis the high value, so it needs maintenance by putting forward restoration system for every building and object of cultural preservation

He said after preservation, then entertainment, event, and brand which is able to give image and attraction for people, so that it becomes life style and trend that becomes a valued destination and keep moving in a sustainable manner

The success of Denpasar in protecting cultural heritage and sustainable tourism development is recognized by City Net Forum. Therefore, Denpasar is chosen as the host of the next City Net Forum Conference entitled Climate Leadership Conference on November 18 - 19.