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23
November

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Sweden is looking forward to further engagement in Indonesia's ambitious new capital project since it will adopt the smart city development concept learned from Swedish experiences.

“We look forward to getting further engaged, as the new capital project moves on to the implementation phase,” Swedish Ambassador to Indonesia Marina Berg emphasized during a webinar of the Sweden-Indonesia Sustainability Partnership Week televised here on Monday.

The country has learnt about the plan to build a new capital for Indonesia, she noted, adding that it has become the first project on the list of collaboration projects in future.

“Since then, we have been in close contact with Bappenas (the National Development Planning Board). We are working on the master plan planned for the new capital,” she noted.

Berg revealed that during the visit to Sweden with the National Development Planning (PPN) Minister and Head of the National Development Planning Board (Bappenas), Suharso Monoarfa, they had comprehensively explored the topic of Indonesia’s new capital project and had reviewed what knowledge and information can be gained from the Swedish experience of smart-city development.

Apart from Indonesia’s new capital project, Sweden's second focus is Indonesia’s 5G development, she added.

“The main point is how to utilize the technology in Indonesia’s cities as part of sustainable development. The discussions are ongoing,” she remarked.

Furthermore, the ambassador is optimistic that Indonesia’s G20 presidency in 2022 would create new opportunities between both countries.

“We see great opportunities for cooperation on moving the sustainability agenda forward during Indonesia’s G20 presidency and also during the agenda in 2023 when Sweden holds the EU (European Union) presidency and Indonesia being the chair of ASEAN,” she expounded.

Sweden has formulated 10 points for future collaboration with Indonesia encompassing electrification of Jakarta’s bus system; rail development of MRT and LRT; Ministry of Transportation’s Buy the Service (BTS) program; sustainable development implementation; new capital; projects on smart grids and energy efficiency; waste-to-energy in Medan, Cirebon, and Probolinggo; Citarum river clean-up program, annual Indonesia-Sweden health forum; and innovation and digitalization of hospitals. (Antaranews)

23
November

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Indonesian security personnel arrested six undocumented Chinese nationals found illegally mining gold in Sewa village, Wapoga sub-district, Waropen district, Papua province, on Sunday.

They were identified as Ge Junfeng (48), Lein Feng (37), Yan Gangping (41), Tan Liguo (54 ), Tan Lihua (58), and Lu Huacheng (38 ), Lt.Col.Leon Pangaribuan, commanding officer of the 1709/Yawa District Military Command, informed in a statement received by ANTARA here on Monday.

The Chinese nationals had been in Sewa village for four days, said Pangaribuan.

The illegal aliens' whereabouts were detected after a local resident informed officers of the 1709-03/Warbah Sub-district Military Command, he added. The army personnel then went to the village and nabbed them, he continued.

The Chinese nationals could not show any legal documents, including passports, nor did they speak the Indonesian language, Pangaribuan said, adding that they were handed over to the Biak immigration authority.

According to the Papua Immigration Office, 116 foreign nationals faced legal sanctions and were deported last year.

Ninety-nine of the 116 illegal immigrants were Papua New Guinea (PNG) citizens, while the remaining 17 comprised 14 Chinese nationals, two South Korean nationals, and one US citizen, it informed.

Currently, Papua province has immigration offices in Jayapura, Merauke, Timika, and Biak as well as 10 active immigration checkpoints and two cross-border posts.

ANTARA has reported that illegal gold mining activities have oftentimes been blamed for the environmental damage that has resulted in landslides and flash floods in various parts of Indonesia.

In this context, President Joko Widodo had drawn attention to the criticality of curbing illegal gold mining activities to prevent the recurrence of natural disasters in the future.

At a recent webinar, Energy and Mineral Resources (ESDM) Minister Arifin Tasrif had said that illegal mining activities were acts of crime, and the Indonesian government will continue to crack down on them.

The rising market prices of mineral and coal commodities over the past year have triggered an increase in illegal mining activities in various parts of Indonesia, he added. (Antaranews)

23
November

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The development of geoparks into tourist destinations will have a multiplier effect on the community, State-Owned Enterprises (SOEs) Minister Erick Thohir said at the virtual Indonesian Geopark National Conference here on Monday.

It would not only create investment opportunities, but also open new jobs in the creative economy sector, which could improve the people’s economy and welfare, he elaborated.

Currently, Indonesia has six geological sites that have been designated as global geoparks by the United Nations Educational, Scientific and Cultural Organization (UNESCO), he noted.

Still, there are dozens of such sites which can be developed into internationally acknowledged geoparks, he said.

"Hence, SOEs as development agents highly support the government's attempts in preserving and developing geoparks," the minister remarked.

The development will be carried out in accordance with the principles of the Sustainable Development Goals (SDGs), he said.

In addition, the development will not only focus on the economic sector, but also pay attention to local wisdom to ensure that the area is not overexploited, he added.

This would allow the geological, biological, and cultural wealth of the area to remain protected and preserved, Thohir said.

"Let’s continue to advance and preserve the culture and nature of Indonesia. No one else can do it, except us," Thohir emphasized.

Earlier, assistant deputy for social and environmental responsibility at the SOEs Ministry, Agus Suharyono, had said that the ministry is encouraging enterprises to collaborate in maintaining and advancing geoparks as their corporate social responsibility toward the community.

He lauded state-owned credit guarantee company PT Jamkrindo for its assistance in the development of geoparks by helping the surrounding micro and small businesses to improve, especially at the Ciletuh Geopark in Sukabumi district, West Java province.

Collaboration is crucial in geoparks development as there are many aspects that must be improved to optimize the sites’ benefits for the community, he remarked. (Antaranews)

22
November

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The United Nations on Monday pushed for urgent action to prop up Afghanistan's banks, warning that a spike in people unable to repay loans, lower deposits and a cash liquidity crunch could cause the financial system to collapse within months.

In a three-page report on Afghanistan's banking and financial system seen by Reuters, the U.N. Development Programme (UNDP) said the economic cost of a banking system collapse - and consequent negative social impact - "would be colossal."

 

An abrupt withdrawal of most foreign development support after the Taliban seized power on Aug. 15 from Afghanistan's Western-backed government has sent the economy into freefall, putting a severe strain on the banking system which set weekly withdrawal limits to stop a run on deposits.

"Afghanistan's financial and bank payment systems are in disarray. The bank-run problem must be resolved quickly to improve Afghanistan's limited production capacity and prevent the banking system from collapsing," the UNDP report said.

 

Finding a way to avert a collapse is complicated by international and unilateral sanctions on Taliban leaders.

"We need to find a way to make sure that if we support the banking sector, we are not supporting Taliban," Abdallah al Dardari, head of UNDP in Afghanistan, told Reuters.

 

"We are in such a dire situation that we need to think of all possible options and we have to think outside the box," he said. "What used to be three months ago unthinkable has to become thinkable now."

Afghanistan's banking system was already vulnerable before the Taliban came to power. But since then development aid has dried up, billions of dollars in Afghan assets have been frozen abroad, and the United Nations and aid groups are now struggling to get enough cash into the country.

'UNDER THE MATTRESS'

The UNDP's proposals to save the banking system include a deposit insurance scheme, measures to ensure adequate liquidity for short- and medium-term needs, as well as credit guarantees and loan repayment delay options.

"Coordination with the International Financial Institutions, with their extensive experience of the Afghan financial system, would be critical to this process," UNDP said in its report, referring to the World Bank and International Monetary Fund.

The United Nations has repeatedly warned since the Taliban took over that Afghanistan's economy is on the brink of a collapse that would likely further fuel a refugee crisis. UNDP said that if the banking system fails, it could take decades to rebuild.

The UNDP report said that with current trends and withdrawal restrictions, about 40% of Afghanistan's deposit base will be lost by the end of the year. It said banks have stopped extending new credit, and that non-performing loans had almost doubled to 57% in September from the end of 2020.

"If this rate continues of non-performing loans, the banks may not have a chance to survive in the next six months. And I am being optimistic," al Dardari said.

Liquidity has also been a problem. Afghan banks heavily relied on physical shipments of U.S. dollars, which have stopped. When it comes to the local afghani currency, al Dardari said that while there is about $4 billion worth of afghanis in the economy, only about $500,000 worth is in circulation.

"The rest is sitting under the mattress or under the pillow because people are afraid," he said.

As the United Nations seeks to avert famine in Afghanistan, al Dardari also warned about the consequences of a banking collapse for trade finance.

"Afghanistan last year imported about $7 billion worth of goods and products and services, mostly foodstuff ... If there is no trade finance the interruption is huge," he said. "Without the banking system, none of this can happen." (Reuters)