VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

West Java Regional Secretary (Sekda) Iwa Karniwa said that the West Java Provincial Government has discussed the planned capital participation of state-owned airport operator PT Angkasa Pura (AP) II in PT West Java International Airport (BIJB).

"Recently, the West Java Provincial Government has held a discussion on the planned 25 percent ownership of the state-owned company (BUMN) in PT BIJB," Iwa Karniwa said in Bandung on Monday.

Iwa said that he had asked PT BIJB to discuss the amount of capital participation to be paid annually by AP II.

According to Iwa, the figure of IDR 625 billion will be considered during meetings between PT BIJB, a state regional company  (BUMD), and the BUMN, which manages Kertajati Airport in Majalengka.

"Regarding how much per year and what month will be paid, they will have a follow-up meeting," he said.

He added that in addition to finalizing the AP II plan to become a shareholder in BUMD, which is majority owned by the West Java Provincial Government, it also ensures that there is the remaining 11 percent of shares to be offered to foreign investors from Malaysia.

"We also encourage interested parties to target 11 percent of the shares. We are open to the first to enter PT BIJB," he said.

The party has calculated that if converted into rupiah, the 11.6 percent share is equivalent to Rp260 billion-Rp290 billion.

He said that from the two planned capital participation, he hoped that one of them could be realized immediately, considering that PT BIJB needed capital participation funds in the near future.

"So the first to make a deposit to BIJB is due to the need now," said Iwa.

If PT Angkasa Pura II (AP II) has officially injected capital into PT Bandarudara Internasional West Java (PT BIJB) of 25 percent, or Rp. 625 billion, it will be used for airport operations and paying off debts.

Director of PT Bandarudara Internasional West Java (BIJB) Muhamad Singgih said the financial problems of his company involved paying off debts in syndicated Islamic banking, both in terms of principal and margin. In addition, it also pays debts to contractors.

"If there is money coming from any investor, the equity we will use will not only be for operations, but also for reducing the debt burden to contractors," Singgih said. (ant)

The Mayor of Batam in the Riau Islands, Muhammad Rudi, wants to revive the shipyard industry, which once was known as the finest shipyard throughout Asia Pacific. Muhammad Rudi said in Batam on Monday that efforts to revive the shipyard industry would include development of its infrastructure, along with assistance from the many industrial concerns in Sagulung.

"We will begin operating the shipyard again, and will rebuild the road going to the industrial area," said the mayor.

He stated that the government also wanted to improve the roads in Batuaji and Sagulung to support the shipbuilding industry, while at the same time aiding the local community.

"We want to revive Batu Aji and Sagulung. They used to make their livings from the shipyard," he said.

Further, the construction of the Great Mosque in Batuaji, also due to the efforts of the mayor, will reduce the need for workers to drive as far as they currently travel for Friday prayer.

In addition to the place of worship, the mayor hopes that the Great Mosque of Batuaji can stimulate the economy of the people in the surrounding community.

The Great Mosque was also designed as a religious tourism site for Muslims from throughout the archipelago, as well as foreign tourists, especially from Singapore and Malaysia. The mayor noted that if the new mosque becomes a religious tourist destination that is visited by many tourists, then the local community must take advantage of such opportunities.

The plan for building the mosque, with a capacity for 25 thousand worshipers, is to be inaugurated in September 2019. (ant)

Bank Indonesia has sped up the issuances and transactions of commercial securities (SBK) as an alternative short-term nonbank source of funds.

This was achieved through the signing of an administrative agreement to settle SBK transactions between Bank Indonesia and the Indonesian Central Securities Depository (KSEI), on Friday 17th May 2019 in Jakarta. The move is consistent with efforts to stimulate the domestic demand for funds. The agreement signals the operational preparedness of SBK market infrastructure for SBN issuances and transactions, according to a statement from Bank Indonesia here on Monday.

The Deputy Governor of Bank Indonesia, Dody Budi Waluyo, stated his expectations that the various regulations and supporting infrastructure will enable SBK to play an important role as an alternative short-term funding solution for nonbank corporations, and as an attractive money market instrument for investors.

SBK infrastructure includes regulations (Bank Indonesia Regulations and Board of Governors Regulations) previously issued concerning SBK instruments and supporting institutions.

Currently, a total of 3 arrangers, 2 rating agencies, 46 legal consultants, 84 public accountants, 5 notaries, 4 brokers, 15 custodians and the Indonesian Central Securities Depository (KSEI) as the central custodian are registered with Bank Indonesia.

KSEI was approved by Bank Indonesia as the central custodian, in order to improve governance of SBK issuances and transaction settlements, particularly in terms of recording, administrating and settling scripless SBK transactions.

Moving forward, Bank Indonesia will strive to develop the SBK market by educating potential issuers through an outreach program.

Also, Bank Indonesia will coordinate with the Indonesian Financial Services Authority (OJK) to ensure there are no conflicts in enforcing regulations, specifically regulations for financial services institutions that may utilise SBK as short-term funding or an investment vehicle. (ant)

The Indonesian government has invited Brazil to invest in Indonesia's agriculture sector, especially in the development of the sugar industry.

Possible investment in sugar has become one point of discussion between Indonesian Agriculture Minister Amran Sulaiman and his Brazilian counterpart, Tereza Cristina, in Jakarta, on Monday.

Sulaiman said, as the world's largest sugar producer Brazil could invest and transfer its technology, especially in the field of sugar processing.

"We discussed issues about sugar plants. Brazil's Agriculture Minister has said she would be open to sharing experiences in sugar processing and ready to help Indonesia. We know that Brazil is the world's largest sugar producer. They are eager to transfer their knowledge to Indonesia," Sulaiman said.

In addition to the sugar industry, the government has also asked Brazil to open its market for Indonesian agriculture products, such as mangosteen and salak (snake fruit).

"They have opened the chance for us to export six types of strategic commodities.There is no limitation on which commodities could be exported to Brazil," he added.

During the meeting, the two ministers agreed that Brazil would accept exports of Indonesian commodities, such as snake fruit, swallow bird's nests, and pineapple, along with other commodities.

"The most important thing is that our agricultural products will be accepted. Up until now, Indonesian exports to Brazil had touched US$0.3 billion per year, most of it contributed by palm oil," he said.

Meanwhile, the Brazilian Agriculture Minister has asked Indonesia to open its market to the country's beef exports.

Responding to the request, Sulaiman said that the government would have to consider the issue of food security before it decided to import Brazilian beef. (ANTARA)