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June
BI records foreign capital inflow to Indonesia worth Rp 112.98 trillion
Written by MaryatiBank Indonesia -BI recorded that foreign capital inflow to Indonesia since the beginning of the year until Friday, May 31, 2019 has reached Rp112.98 trillion. The capital inflow is also one of the pillars of fulfilling foreign exchange demand in the domestic market so that this has helped maintain the stability of the rupiah exchange rate in recent times.Governor of BI, Perry Warjiyo pointed out that the foreign capital inflow that went into government bonds or State Securities -SBN reached Rp56 trillion. Meanwhile, around Rp57 trillion went into stock instruments. He stated that this reflected that foreign investors were very confident in Indonesia, while maintaining the stability of the rupiah exchange rate against the US dollar.According to Governor Perry, overall, indicators on the domestic financial market are still maintained. The capital inflow is inseparable from the yield of competitive domestic financial instruments compared to the peers.The yields on 10-year government bonds were recorded at 8.01 percent. This parameter was added with low inflation movement in the range of 3.1 percent (year on year) until May 2019. The inflation rate is considered to increase foreign investor confidence because the prices of goods are maintained amid the momentum of high consumption during Ramadhan and before Lebaran.Governor Perry further said that until the end of May 2019, the condition of the rupiah exchange rate was still under control. At the close of Wednesday, (May 29, 2019), the rupiah was transacted at 14,395 rupiah per US dollar. He also said that Bank Indonesia would continue to carry out measures to stabilize exchange rates according to fundamentals if needed, both through intervention in foreign exchange and the purchase of State Securities on the secondary market.
May
Indonesian President Asks Businesspeople to Help Overcome Current Account Deficit
Written by MaryatiIndonesian President Joko Widodo asked the Association of Young Indonesian Businesspeople -HIPMI to help increasing export and investment in the country. That was conveyed by the President during national gathering and joint iftar with HIPMI in Jakarta on Sunday (May26). According to the President, export and investment increases are the key to maintain economic stability and to overcome current account deficit.President Joko Widodo further said, the big problem faced for decades until now is the always-deficit current account. Therefore, the President asked Indonesian Chamber of Commerce and Industry KADIN, Association of Young Businesspeople HIPMI, Indonesian Employers Association APINDO, and other associations together with the government toovercome those issues. The president added, if the deficit in current account is solved, Indonesia can begin entering the next steps, namely the era of technology and innovation.President Joko Widodo explained, in the recent 5 years, the government had been focused on infrastructures, such as seaports, airports, roads, and power plants. According to him, every island needs seaports while many inter-regencies are not yet connected.After inter-region connectivity was made through infrastructure, the President wanted the government heads of all levels such as governors, regents, and mayors to connect their regions to economic zones.Meanwhile, Ajib Hamdani from Indonesian Association of Young Businesspeople -HIPMI said that his organization is optimistic that the post-election economic condition will stay conducive and the businesspeople will begin investing. According to him, political situation indirectly will affect the economy.However currently, the situation had gradually become conducive and the economic growth had been improving. Those were seen from the increasing value of investment.Also joining the national gathering and joint iftar with Indonesian Association of Young Businesspeople HIPMI were House of Representatives Chairman Bambang Soesatyo, Regional Representatives Council Head Oesman Sapta Odang, State Secretary Minister Pratikno, Social Affairs Minister Agus Gumiwang, Trade Minister Enggartiasto Lukita, Golkar Party Board of Experts Chair Agung Laksono, Indonesian Chamber of Commerce and Industry Chairman Rosan Roeslani, and heads of regional HIPMI.
May
Mandalika Special Economic Zone (KEK) located in Central Lombok Regency, West Nusa Tenggara is prepared to become a world-class integrated tourism area. Under the management of the Indonesian Tourism Development Corporation (ITDC), Mandalika is expected to be able to present natural tourism objects combined with Lombok's distinctive cultural riches, plus world-class racing performance. Mandalika is also considered to be a new economic point outside Java.President Joko Widodo has paid a serious attention to the Mandalika. This was seen from his second visit to Mandalika on Friday (5/17). He was to see at first hand Mandalika Special Economic Zone of development project, especially the preparation of the MotoGP Circuit. While looking at the location, President Joko Widodo said that he believed that the development of the Mandalika could bring Lombok to become a leading tourism destination besides Bali. He hopes that the development will be completed no later than January 2020. So by 2020, all the facilities needed by the MotoGP will be available. President Joko Widodo is also optimistic that the construction of the racing circuit and all supporting facilities at the Mandalika will be completed in 2020. President Joko Widodo also emphasized that various facilities have been built to support the Mandalika Special Economic Zone and MotoGP circuits such as airports, road infrastructure and hotels. President Joko Widodo added that the implementation of MotoGP is the serious effort of the government to move the economy into Lombok, and could even influence national economic growth.Meanwhile, Governor of West Nusa Tenggara (NTB), Zulkieflimansyah said that the acceleration of the development of the Mandalika Special Economic Zone (KEK) aims to host MotoGP in 2021. According to him, currently, the government is accelerating the construction of a number of facilities to support the International motorbike racing event. When accompanying President Joko Widodo to observe the Mandalika Special Economic Zone (KEK) on Friday (17/5), Governor Zulkieflimansyah emphasized that his side would make every effort to accelerate development in the Mandalika Special Economic Zone.He hopes that the construction of the MotoGP’s supporting facilities provides maximum benefits for the people of West Nusa Tenggara. In addition, he also expects that with the completion of the Mandalika Special Economic Zone, this would improve the economy of the people in NTB Province. Governor Zulkieflimansyah added that after the Moto GP event, more and more local and foreign tourists will get to know and visit NTB.
May
European Union Appreciates Standard of Indonesian Sustainable Palm Oil
Written by MaryatiThe European Union –EU appreciates the standard of Indonesian Sustainable Palm Oil -ISPO. Head of the ISPO Commission Secretariat, Azis Hidayat said in Jakarta on Friday (10/5) that for two days from 8 until 9 May, nine European Union member countries: Belgium, Spain, Finland, Ireland, Sweden, Hungary, the Netherlands and Britain and The Food and Agriculture Organization (FAO) representative visited ISPO members of oil palm plantations in Riau province. The visit which was attended by the embassy representatives was an activity initiated by the American and European Directorate General of the Ministry of Foreign Affairs to provide understanding and concrete evidence of the application of the ISPO as Indonesia's commitment to implement sustainability schemes. During the visit, the European Union actively engaged in dialogue with oil palm stakeholders starting from the government, businesspeople and farmers.During the dialogue with the palm oil farmers, the European Union began to understand that ISPO is an important part of Indonesia's commitment to be able to increase the production of fresh fruit bunches up to 50 percent, improve quality and encourage high selling prices. They really appreciate that. Aziz said that the European Union praised ISPO member farmers who have good technical knowledge regarding productive and sustainable palm oil management. In fact, the European Union encourages more farmers to be involved in the ISPO scheme. Because oil palm plantations in Indonesia are an important part of people's economy with more than 40 percent of farmers' oil palm plantations.Aziz Hidayat also pointed out that from the visit, the European Union understood more about the Indonesian government being transparent and committed to sustainable management. Even the European Union has just learned that ISPO adopts not only international principles, but also standards above the average criteria required by international certification agencies. The Indonesian government also provides an understanding that palm oil production with ISPO schemes has a major role to reduce deforestation and improve environmental conditions. Aziz ensured that all ISPO certification systems refer to international standards and conformity assessments based on the National Accreditation Committee.Meanwhile, Chairperson of the Fiscal Division of the Indonesian Palm Oil Businessmen Association (GAPKI), Bambang Aria Wisena hopes that ISPO becomes the main platform for the sustainability of the Indonesian palm oil industry. As a mandatory certificate, ISPO with strict regulatory controls greatly helps the palm oil industry increase productivity in a sustainable, responsible and legal manner. Bambang Aria Wisena also emphasized that the strengthening of ISPO is an important part of maintaining Indonesia's position as the world's largest palm oil producer and the highest-earning commodity producer in Indonesia.
May
The government of Indonesia, the Asian Development Bank (ADB), and the government of Timor-Leste signed a memorandum of understanding –MoU to support cross-border trade and cooperation between Timor-Leste and the province of East Nusa Tenggara –NTT in Indonesia. The MoU was signed by ADB President -Takehiko Nakao, Finance Minister -Sri Mulyani and Timor Leste Finance Minister -Sara Lobo Brites on the sidelines of the 52nd annual meeting of the ADB Board of Governors in Nadi, Fiji's third largest city on Saturday (4/5). Based on the agreement, Indonesia and Timor-Leste will reduce barriers at the cross-border land and air transportation and harmonize procedures at border crossing points. Both sides also seek to reduce animal health barriers to livestock trade and improve tourism promotion in NTT and Timor-Leste through joint marketing.ADB President -Takehiko Nakao said that regional cooperation and integration are very important for sustainable and inclusive growth in Asia and the Pacific regions. This MoU is an important step in supporting cross-border cooperation between Indonesia and Timor-Leste. Supporting livelihoods in lagging border areas is very important to overcome inequality. Anyone can participate in increasing regional prosperity. The Memorandum of Understanding is built based on the 'Scoping Study on Increasing Cross-Border Cooperation and Integration between Indonesia and Timor-Leste' carried out by ADB at the request of the Indonesian and Timor-Leste governments. The study identifies various challenges and opportunities for cross-border collaboration and identifies tourism and livestock as the main sectors for short-term benefits through collaboration.Indonesian Minister of Finance, Sri Mulyani said that the Indonesian government is committed to reducing regional inequality in Indonesia, and East Nusa Tenggara is one of the less developed regions in Indonesia. Thus, it is necessary to increase connectivity, accessibility and capacity as well as cross-border economic collaboration. This Memorandum of Understanding is a complementary national strategy to support border areas with additional collaboration with Timor-Leste.Meanwhile, Minister of Finance of Timor Leste, Sara Lobo Brites said that Timor-Leste has made a significant step since independence. Timor Leste would like to integrate more closely with ASEAN and the world economy and diversify its economy. According to the Brites, reducing trade barriers and establishing cooperation with closest neighbors is a key step in achieving this goal. He welcomed happily the memorandum of understanding with ADB and Indonesia as a first step in a sustainable partnership and mutually beneficial for growth.
May
Indonesia ready to become the world's Muslim fashion center next year
Written by MaryatiMinister of Industry Airlangga Hartarto opened the 2019 Muslim Fashion Festival (MUFFEST) at the Jakarta Convention Center, South Jakarta on Wednesday (1/5). The event that takes place on May 1 until 4 exhibits local designer works, cosmetic and jewelry products. In his remarks, Minister Airlangga Hartanto conveyed his appreciation to the designers and supporters of the event. He pointed out that the government pushes Indonesia to become the world's Muslim fashion center. He also stated that after building infrastructure this year, human resources are the next priority, including the creative sector. Therefore, it also has to push vocational school education to be able to create young designers to appear and reach overseas markets.He further said that his side continues to enhance the development of the Muslim fashion industry in Indonesia in bid to be more competitive in the global arena and to show Indonesia's readiness to become one of the world's Muslim fashion centers by 2020. The opportunities for the global and domestic Muslim fashion markets are still very huge. Thus, the domestic Muslim fashion industry must play a major role.Minister Airlangga Hartarto also emphasized that the high number of Muslims in the world is one of the driving engines to develop the Muslim fashion industry. In 2018, Indonesia’s total population of Muslims reached 24 percent of the total Muslim population in the world. The 2019 Muslim Fashion Festival is attended by more than 100 designers who exhibit various kinds of fashion, beauty and jewelry products.National Chairman of Indonesian Fashion Chamber, who is also the Chairperson of the 2019 Muslim Fashion Festival (MUFFEST), Ali Charisma said that Indonesian Muslim clothing has distinctive characteristics that are very clear, very varied; their creations are open and their appearance is extraordinary. This can bring Indonesia to compete with international brands.Meanwhile, Director General of Small, Medium and Various Industries at the Ministry of Industry, Gati Wibawaningsih said that the Ministry of Industry involved 656 Small and Medium Industries (IKM) and 60 designers in the development of the Muslim fashion industry during 2018-2019. She also explained that the development program is integrated from upstream to downstream. Examples of programs are the link and match of the Muslim fashion industry with the textile industry, technical guidance and certification of the Indonesian National Work Competency Standards, capacity building for Muslim fashion of Small and Medium Industries, and the development of new entrepreneurs for Muslim clothing.
April
Minister of Foreign Affairs of Republik of Indonesia, Retno LP Marsudi and the Customs Minister of the People's Republic of China, Ni Yue Feng signed the mangosteen trade protocol on Thursday (25/4). The signing was carried out on the sidelines of the International Cooperation Conference on nd2 Belt and Road Forum -BRF II. The signing of the mangosteen trade protocol was carried out after China has allowed Indonesia to re-export the fruit to China. Minister Retno Marsudi said that this collaboration is part of enhancing connectivity and investment. He explained that in essence, the protocol serves to remove obstacles to the export of these commodities. Since 2017, China has given permission, Indonesia again sends mangosteen to China with the largest population in the world, Minister Retno Marsudi also explained that besides mangosteen, Indonesia would also export dragon fruit to China.Minister Retno Marsudi noted that China is the biggest trading partner for Indonesia, with the trade value of both parties reaching US$70 billion dollars or around Rp990 trillion in 2018. Last year's trade value increased 23 percent compared to 2017. However, she views that Indonesia's trade deficit with China is still quite large. Thus, both countries have agreed to reduce deficits and to make trade more balanced and mutually beneficial. On this occasion, Minister Retno also said that Indonesia has facilitated the export of fruits from China such as mandarin oranges. Furthermore, Minister Retno Marsudi hopes that Minister Ni Yue Feng would provide assistance in finalizing Salak import from Indonesia, including the reduction in pineapple fruit tariffs so that bilateral trade would be more beneficial for both sides.Meanwhile, Minister Ni Yue Feng welcomed the request delivered by Minister Retno Marsudi. Minister Ni Yue also enjoyed the signing of the import protocol for mangosteen and dragon fruit from Indonesia.One day before, Minister Retno LP Marsudi also held a bilateral meeting with her Chinese counterpart, Wang Yi discussing the issue of palm oil and various other issues. In terms of palm oil, Indonesia expects China to immediately realize its commitment to increase palm oil imports from Indonesia. So far, China has opened up its market to various Indonesian products, such as palm oil and fruits.
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.
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.
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.