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Vice President Ma'ruf Amin. (ANTARA/HO/Asdep KIP Setwapres)

Indonesian Vice President Ma'ruf Amin attributed the decision to streamline the state-owned enterprises (SOE) to augment their productivity and competitiveness in the global market.

"This is deemed necessary as the government's response to be better prepared to face the global competition while concurrently boosting national productivity," Amin remarked during a general lecture of the National Defense Institute (Lemhanas) in Jakarta on Thursday.

Amin expounded that the decision to streamline state enterprises (BUMN) was projected to enhance its role in the development of micro-, small-, and medium-scale enterprises that would ultimately drive domestic productivity.

Amin highlighted that the government will downsize 142 state enterprises to some 100 companies through mergers covering several sectors, including oil and gas, food, pharmaceutical, infrastructure, telecommunication, film, and publishing.

"The number and coverage of the state enterprises is currently too large. Hence, it should be downsized in accordance with the line of business to make it more efficient and competitive," he stated.

The criteria to merge state enterprises include the value creation capability and the ability to apply Public Service Obligation (PSO).

"Currently, we are still conducting an assessment of all state enterprises to sort and ensure the accomplishment of the two basic criteria. The Ministry of State Enterprises has forecast that the number of BUMN will be reduced to some 100 companies," he remarked.

State-Owned Enterprises (BUMN) Minister Erick Thohir had earlier spoken of steps to be readied to strengthen SOEs, including boosting efficiency by streamlining 27 BUMN clusters to 12 clusters, so they are more focused on their core business.

Thohir had reiterated the importance of cluster downsizing for BUMN in the face of global competition.

The minister believes that the competition will get tougher once the COVID-19 pandemic ends. (ANTARA)

Head of Indonesia's Investment Coordinating Board (BKPM) Bahlil Lahadalia. ANTARA/HO-BKPM/pri/sh

 Investment Coordinating Board (BKPM) Head Bahlil Lahadalia made assurance that some companies will commence construction in July 2020, as Indonesia benefits from the relocation of multinational firms from other countries.

"Those companies will commence (the construction work) in July 2020. They have fulfilled the requirements, and we facilitate them in terms of the investment location," Lahadalia remarked during a press conference at the Presidential Office in Jakarta on Thursday.

The companies are part of seven firms from various countries, including Japan, the United States, and South Korea, that confirmed on June to relocate their plants to Indonesia, with investment totaling US$850 million, or some Rp11.9 trillion.

The BKPM head noted that in addition to the seven companies, some 17 firms from various countries are intensively communicating with the Indonesian government over their factory relocation plan.

"The procedure to procure an investment license will be completed in 2020," he affirmed.

The seven companies include the US-based solar-powered lights manufacturer Alpan Lighting (PT CDS Asia), Japanese electronic component manufacturer Sagami Electric (PT Sagami Indonesia), and Japanese automotive spare parts industry Denso (PT Denso Indonesia).

Japanese electronic goods manufacturer Panasonic (PT Panasonic Manufacturing Indonesia), South Korean electronic goods manufacturer LG Electronics (PT LG Electronics Indonesia), audio and video equipment maker Meiloon, and tire manufacturer Kenda Tire, both from Taiwan, too are part of this move.

Industry Minister Agus Gumiwang Kartasasmita affirmed that among the 17 companies to make a relocation commitment was LG Chemicals, with an investment plan, worth $9.8 billion, to build an integrated battery plant and nickel smelter in Batang.

Kartasasmita noted that the seven companies will offer 30 thousand jobs to the locals, while the LG Chemical project had the potential to provide 14 thousand new jobs. (ANTARA)

President Joko Widodo (Jokowi) supports establishing the World Syuro (Consultative) Assembly, initiated by the Indonesian People's Consultative Assembly (MPR), to promote a harmonious, peaceful, and civilized Islamic world order, MPR Chairman Bambang Soesatyo (Bamsoet) stated.

"President Joko Widodo fully supports MPR’s efforts to form the World Syuro Assembly that will serve as a forum for the people's consultative assemblies from various countries having a similar system, especially Muslim-majority countries in the world," Bamsoet noted in his statement in Jakarta on Thursday.

Bamsoet held a meeting with President Jokowi at the Bogor Palace, West Java, on Wednesday (July 8).

Jokowi's support would further bolster MPR’s enthusiasm to declare the establishment of the World Syuro Assembly in August 2021.

The World Syuro Assembly will also initiate the formation of the World Sharia Stock Exchange or Global Sharia Stock Exchange in response to the chaotic global economic conditions owing to extended periods of capitalism and liberalism.

Establishment of the Global Sharia Stock Exchange is projected to facilitate the realization of an Islamic Capital Hub in the world’s capital market industry.

"As a start, the World Sharia Stock Exchange may involve various well-known stock exchanges, such as the Malaysian Islamic Capital Markets, Istanbul Stock Exchange, and Dubai Financial Market. This idea needs to be further studied and explored by various economic experts from various world countries, facilitated by the World Syuro Assembly," he remarked.

The Golkar Party politician opined that parliaments were instrumental in pushing the governments of their respective countries to break free from the shackles of capitalism.

Thus, by prioritizing the Islamic financial industry, in addition to avoiding usury, economic actors will not make speculations on currencies.

"Simply stated, money is used to meet the needs of the real sector and not merely for the sake of speculation that ultimately makes the liberal economy vulnerable to the crisis. This is what is occurring now. A trade war is ongoing between China and the United States, and in the process, all countries are affected. This is owing to an imbalance in the world economic order," he pointed out.

"The world’s approach must be changed to that of mutual help and human solidarity that gives opportunities to one and all to attain prosperity and welfare," he stated.

Moreover, the World Syuro Assembly is expected to establish a global Halal hub. (ANTARA)

Volunteers of the Indonesian Red Cross (PMI) in Lhokseumawe, Aceh, distribute basic  necessities, such as food and clothes for prayers, to Rohingya refugees. ANTARA/HO-The Indonesian Red Cross (PMI) Public Relations

Twenty-five Rohingya children, aged between 5 and 17 years, who are currently being sheltered in Aceh arrived without their parents, according to Indonesian Foreign Affairs Minister Retno Marsudi.

"There are 25 children, aged 5-17 years, (who have) arrived without accompanying families in this group," she told the press at the Presidential Palace in Jakarta on Thursday.

The United Nations High Commissioner for Refugees (UNHCR) is currently collecting data on the 99 Rohingya refugees who were saved by Acehnese fishermen in June this year, she said.

“The UNHCR has started the registration process since July 5, 2020, and it is expected to be completed by July 12. Up till today, UNHCR Indonesia has collected data on 65 out of the 99 migrants," she remarked.

This weekend, the refugees will be transferred to the Meunasah Mee Training Center in Lhokseumawe. They are currently being accommodated in an abandoned local immigration office building in Lhokseumaweh, North Aceh.

Two refugees, who were sick and given medical treatment upon their arrival in Aceh, have recovered and joined the rest.

The Indonesian government is providing medical facilities, including in Cut Meutia Hospital, for those requiring treatment.

On June 22, 2020, three Acehnese fishermen had rescued the 99 Rohingya refugees after their boat started sinking in the Malacca Strait waters. The refugees were headed to Malaysia.

The fishermen towed the refugees — 48 women, 34 children, and 17 men — to the North Aceh shore and offered them food and drinking water.

At present, the North Aceh government, the Indonesian Red Cross (PMI), and several humanitarian NGOs such as ACT, are looking after the refugees. (ANTARA)