VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The President Joko Widodo inaugurated Indonesian Contingent for the Asian Games XVIII 2018 in Jakarta and Palembang, South Sumatra, on Wednesday (8/8) afternoon, in the middle of the page the Merdeka Palace in Jakarta. #AsianGames2018

The Association of Southeast Asian Nations` (ASEAN`s) centrality in the development of the Indo-Pacific partnership concept is supported by several countries, Foreign Affairs Minister Retno Marsudi stated. The support was apparent after Indonesia discussed the Indo-Pacific concept with ASEAN member countries and consulted with ASEAN dialogue partners in the East Asia Summit held in Singapore on Sunday.

"During the summit, it was clear that almost all countries continue to lend support to the ASEAN`s centrality even in the development of the Indo-Pacific concept," Minister Marsudi noted after the commemoration of the ASEAN`s 51st Anniversary in Jakarta, Wednesday.

"The discussions around a new partnership concept surely take a lot of time, but at least Indonesia has presented its concept and perspective on the Indo-Pacific to ASEAN member countries. The concept will become the ASEAN`s, and the ASEAN will become the center for discussion around this," she explained.

Consultations on the Indo-Pacific concept have been conducted since last year, and Indonesia has laid emphasis on ensuring the concept can target economic and security cooperation. Issues revolving around the Indo-Pacific concept are strategic to Indonesia and the ASEAN, as they are geographically located in between the Indian and Pacific Oceans.

The Indonesian government offers a perspective on the Indo-Pacific region aimed at enhancing cooperation in maritime, connectivity, and integrated development agendas. Indonesia`s concept on the Indo-Pacific aims to increase the added value of the ASEAN`s existing partnership mechanism, especially to strengthen the East Asia Summit. ( ant ) 

The government has decided to provide salt farmers with government-subsidized bank loans for small and medium enterprises known as KUR credit scheme to encourage the people`s salt and self-sufficiency programs.

"The government needs to facilitate funding and financing for the salt production program through the KUR scheme," Deputy of Macroeconomics and Finance at the Coordinating Ministry of Economic Affairs Iskandar Simorangkir stated in Jakarta on Wednesday.

Simorangkir explained that the granting of KUR credits aims to assist the financing of salt farmers whose endeavor is categorized as a small business and not as a salt extraction in the mining sector.

"The government is striving to provide KUR credit for salt farmers," he said.

Earlier, the salt commodity sector, based on the classification of the commercial bank`s business field, was included as one of the sectors in the mining businesses. According to Regulation of the Coordinating Minister for Economic Affairs No. 11 of 2017 on KUR`s implementation guidelines, the mining sector is not included in the sectors that could receive KUR credits. Since 2015, the distribution of KUR to salt farmers has reached Rp1.1 billion, but interest subsidies have not been paid since this sector is not included in the KUR financing program sectors.

The overall distribution of KUR loans for salt commodities recorded a five percent NPL ratio. Hence, special supervision is needed on credit financing for this commodity. On this occasion, the government also decided to allocate KUR credits for 13 business activities in the tourism sector to encourage the entry of foreign exchange into Indonesia. For the addition of this KUR allocation, Simorangkir noted that the government had increased KUR allocation for 2018 from Rp117 trillion to Rp123.53 trillion.

The addition of KUR in 2018 is decided based on considerations as recommended by the Financial Services Authority. The Financing Policy Committee for ultra-, micro-, and medium-scale businesses hopes that it would help UMKM access financing with affordable interest rates.

Until July 2018, the realization of KUR`s distribution has reached Rp79.2 trillion, or 67.6 percent of the Rp117 trillion target. This KUR distribution includes 3,209,569 debtors with non-performing loans at only 0.01 percent. ( ant )

Indonesia and Myanmar have explored trade and investment potential in both countries to optimize bilateral economic cooperation, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Rosan P. Roeslani said.

"Business matching would need to be continued between Indonesian and Myanmar`s investors. We have huge potential for cooperation," Roeslani said in Jakarta on Wednesday.

Kadin held a business meeting with Myanmar on the sidelines of the visit of its Minister for Union Government, U Thaung Tun, to Indonesia. Myanmar was the 42nd largest trade partner of Indonesia in 2017, with total trade value reaching US$975 million, increasing from $729 million in 2016. Indonesia`s export to Myanmar has increased from $615 million in 2016 to $829 million in 2017, while its import increased from $113 million in 2016 to $142 million in 2017. Indonesia has enjoyed a trade surplus with Myanmar, with its main export of palm oil, paper, fuel oil, and coal.

Roeslani remarked that the bilateral trade has faced some challenges, such as the absence of export product complementarity; lack of direct transportation, which has affected supply continuity; and complicated licensing system for export and import. On the other hand, the two countries have a large potential for trade, with negotiable price, quality, and payment methods for some agriculture commodity products.

According to Roeslani, Myanmar should give Indonesian businessmen the opportunity to expand their market to the country, as both are ASEAN members. Indonesia and Myanmar have recorded a relatively small amount of investment. Myanmar?s investment in 2017 was only recorded at $600 thousand in three projects, while Indonesia`s investment during the period had reached some $200 million. ( ant )