Diesel power plants (PLTDs) of the national power utility company PLN could use pure crude palm oil (CPO) without mixture for fuel, the Executive Director of the Institute for Essential Services Reform (IESR) Fabby Tumiwa has said. Technically, CPO does not necessarily be mixed with diesel oil, but it needs special treatment before being used that it will have the characteristics of automotive diesel oil (AD), Fabby said.

"CPO needs preheating up to a certain temperature. Therefore, basically, it is possible to use pure CPO to fuel PLTDs," he said in Jakarta on Monday.

The government has ruled the use of CPO but at a 20 percent ratio in a mixture with ADO known as B20 for transport and industrial fuel. The policy is to save oil fuel and increase demand for CPO, which has been low in market demand. The problem is the CPO price being very unstable.
It would be most likely when the CPO price is high, the producers would refuse to supply CPO at a price below the export price, he said.

"PLN needs a stable price and continuity of supply," he added.

A lawmaker from the Commission VII Ramson Siagian expressed support for the idea of using pure CPO to fuel power plants of PLN, saying "it would significantly save foreign exchange for the import of ADO. At the same time, CPO would have wider market in the country that the result could be an increase in CPO price on higher demand, Ramson said. However, he said, it would need to make sure that the use of CPO would not reduce the life time of the PLTD machines.

Researcher from the Center for Study and Application of Technology (BPPT) Agus Kismanto said not all PLTDs such as low revolution (rpm 750) PLTDs of PLN could use CPO for fuel.

Agus said, currently, PLTDs use residue/marine fuel oil, adding that in order to be compatible with CPO, PLN needs to consult first with the factory producing the PLTD machines. He said currently there is PLTD machines with the brand of MAN from Germany and Wartsila from Finland , which have special machine of PLTD using CPO for fuel. He suggested that all PLTDs using ADO should be shut to be replaced with ones using CPO for fuel.

"Indonesia needs only to buy the license and we could produce PLTD machines in the country . This is very feasible business as we have thousands of PLT units," he said.

Agus Kismanto suggested that the fund managed by the BPDP-KS (the Body managing the oil palm plantation fund) be used to finance the PLN program for the PLTD fuel conversion, to ensure certainty for the state electricity company in CPO supply at a stable price.

Fabby Tumiwa has another suggestion to create a win win solution between PLN and CPO producers that is to adopt cost plus margin or cost plus adjustment scheme in case of change in CPO price in the world market.

Earlier, Energy and Mineral Resources Minister Ignasius Jonan said he had told PLN as the authority in electricity in Indonesia, to replace ADO with CPO.

"We have instructed PLN to change the fuel of PLTDs with a total capacity of at least 1,800 megawatts with pure CPO," Jonan said when opening an Indonesia- Finland business forum here recently.

Minister of State Enterprises (BUMN) Rini Soemarno also encourages PLN to stop using ADO to fuel its power plants.

Currently there have been technology to use pure CPO to fuel PLTDs, therefore, PLN should use only CPO, she said here last week.

The use of CPO which is available in abundance in the country would reduce dependence of PLN on imports for oil fuel (BBM), Rini said, adding the conversion could save as much as US$1 billion in imports of ADO. (ant)

Indonesia could use China`s digital commerce platforms to boost its exports not only to China but also to other countries, Indonesian ambassador to China Djauhari Oratmangun said in Beijing, on Monday ( 10/12 /2018 ) 

"If we want to boost exports, investment and tourism we have to have good relations with China as our main partner. China has an advanced IT and e-commerce," Djauhari said when receiving delegation of China-Indonesia discussion on China-ASEAN relations.

During the Singles Day sales event, he said, Alibaba gained a total US$30.79 billion in 24 hours while JD.com obtained US$18 billion.

"These two largest platforms in China could get more than US$48 billion in just 24 hours, an amount bigger than our export value to China in a year," he remarked.

The ambassador said Indonesia should use these digital commerce platforms which have already launched the Indonesian Pavilion to boost its export.

Currently five Indonesian products that have entered the digital platform are shrimp crackers, biscuits, coffee, instant noodle and swallow nest.

Other potential digital-based enteprises are Jumore which has existed in 157 countries and Tencent which has operated social communication WeChat to develop cashless payment method for tourists.

"However for this issue we need to have the regulation, especially for tourists to assure the state revenue from this transaction," he said.

China has contributed the largest number of tourists to the country at 2.5 million and it is expected to reach 3 million in 2018. (ant)

The Islamic Development Bank (IsDB) is expected to be involved in the development of education in Indonesia through Public-Private Partnerships (PPP).

"The national budget for education in Indonesia is 20 percent, or around Rp440 trillion, and this is the biggest among other sectors. However, this budget is not sufficient, given the complexity in enhancing the level of education, so the Public-Private Partnerships scheme is needed in this development program," Minister of National Development Planning Bambang Brodjonegoro remarked in a keynote speech at a workshop themed "Unlocking Indonesia`s Potentials in Procuring Social Sector Projects Through Public-Private Partnerships" held in Jakarta, Tuesday.

He added that the level of education in Java was relatively even, at 11.5 years. However, in other areas, such as Papua, the education level was still 8.5 years.

According to Brodjonegoro, the government is currently enhancing the quality of education and equitable distribution of educational facilities and infrastructure, ranging from early childhood education to higher education and at the same time improving the quality and competence of teachers.

"The government is also improving the quality of vocational education to reduce the rate of unemployment and offering education that is in tune with the demands of the industry through the link and match program that aligns education with the requirements of the job market," Brodjonegoro remarked.

According to Brodjonegoro, education is a new sector for the private sector in expanding its business.

He explained that the private sector can take part in designing, building, and financing the operation and maintenance of a development project, while the government has a role in the acquisition and provision of lands, issuance of regulations, and management of risks and uncertain conditions that might arise during the project.

"The IsDB can be involved in the PPP scheme for the construction of social infrastructure. Guarantees from the government, through ministries, government agencies, local administrations, and related state-owned enterprises, will make a project more feasible," Brodjonegoro stated.

In addition to education, IsDB is expected to be involved in health sector development projects within the framework of PPP.

Brodjonegoro noted that the health and education development program is expected to obtain financial support from IsDB, as the two sectors are not only included in the Sustainable Development Goals (SDGs) but are also the prioritized agenda of the Indonesian government.

He stressed that SDGs are more of an opportunity to invest rather than the development goals.

The workshop held by the ISDB brings together several ministries, local administrations, and the private sectors to build in-depth knowledge on PPP in the development of social infrastructure, especially the health and education sectors. (ANTARA)

Maritime Affairs and Fisheries Minister Susi Pudjiastuti has urged stakeholders to increase foreign exchange from the exports of shrimp, as it is a mainstay commodity.

"I appeal to all stakeholders to cooperate in advancing the economy, from both marine and aquaculture fisheries, especially shrimp, as this commodity provides a dominant share in the structure of national fishery product exports," Minister Pudjiastuti noted in a press statement received by Antara in Jakarta, Tuesday.

Earlier, Slamet Soebjakto, the director general of Aquaculture at the Maritime Affairs and Fisheries Ministry, stated that shrimp is one of the most ready fisheries commodities in the face of industry 4.0.

"In terms of profit investment, shrimp cultivation and business are very well-prepared, in terms of technology, facilities and equipment, as well as trade and marketing systems," Soebjakto noted.

Soebjakto explained that good and sustainable practices were applied in several shrimp aquacultures. In addition, shrimp farms have applied a biosecurity system to protect the commodity from diseases.

According to Soebjakto, the application of sustainable aquaculture is part of the transformation towards industry 4.0. In addition to shrimp, other aquaculture export commodities, such as white snapper, grouper, and seaweed, are among the most ready fisheries commodities for transformation towards the industry 4.0.

The government is urged to overcome a variety of domestic obstacles that hamper the improvement of competitiveness and enhancement of export volume.

"If the government only pursues the target of increasing export value in the near future, the way is not by signing several free trade agreements but by resolving issues that hinder the increase of Indonesia`s competitiveness," Executive Director of Indonesia for Global Justice Rachmi Hertanti noted.

According to Hertanti, the government`s perspective is also expected to expand in seeing trade cooperation that is not merely limited to exports and imports.

Rachmi asserted that competitiveness should be improved with various forms of economic cooperation that also benefits people.

According to a report from Reuters released by the World Economic Forum in Geneva, Switzerland, on October 2018, Indonesia`s Global Competitiveness Index 4.0 was ranked 45th out of the 140 countries.

The ranking is below Singapore, Malaysia, and Thailand, which are at the second, 25th, and 38th position respectively. (ANTARA)