VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Director of the Fiscal Affairs Department of the International Monetary Fund Vitor Gaspar, encouraged Indonesia to increase investment in human resource development. He said this when delivering a fiscal supervision report on Wednesday in Nusa Dua Bali. He said, Indonesia had experienced significant progress in the last 50 years in terms of sustainable and inclusive development. This is evidenced by the increase in Gross Domestic Product and other social indicators. To continue this positive growth, according to him, the Indonesian government, which is currently focusing on infrastructure development, requires a development strategy more focused on developing human resources.

"To think about policy, fiscal policy as a tool for sustainable and inclusive growth. Indonesia has recorded impressive progress in the last 50 years. This is testify by growth in GDP per kapita but also by a wide range of social indicators including health and indicators like infant mortality, life expectancy, and much else. Going forward, continuation of progress requires a development strategy. In Indonesia the emphasize is in investment. Investment in human, social and physical capital," said Vitor Gaspar.

Furthermore, Vitor Gaspar said, in an effort to support investment in infrastructure, human resources, education and health, the Indonesian government needs a sustainable source of financing. According to him, it would be obtained if the Indonesian government was able to raise state income from the tax sector. The sector which according to him still gives low contributions to Indonesian economic growth. (VOI/Ndy/TRANS NUKE/AHM)

Financial Counsellor and Director of the Monetary and Capital Markets Department of The International Monetary Fund  (IMF) Tobias Adrian, stated that the international currency exchange rate including the rupiah are under pressure due to the strengthening of the United States Dollar. In his presentation of the Global Financial Stability Report in Nusa Dua Bali, nevertheles, according to Tobias, the Indonesian government could overcome it by opening the door to wider foreign investment to enter Indonesia. In addition, according to him, the Central Bank of Indonesia or Bank Indonesia can also take intervention steps to ensure that liquidity remains stable.

"So because there’s current account deficit Indonesia has to fund itself externally from international investors that is why an exchange of depreciation can be a shock absorber. And that is a good thing in our advise. Now of course the central bank of Indonesia has also intervene in foreign exchange market in order to make sure that liquidity condition in the market orderly and that is also very much consistent with the IMF advise on how to stabilize market financial conditions. 

The Global Financial Stability Report (GFSR) in October 2018 found that global short-term risks to financial stability have increased, reflecting increasing pressure in developing countries and rising trade tensions. According to Tobias, this risk, although still moderate, can increase significantly. Intensification of concerns about emerging markets, a wider increase in trade tensions, the realization of political and policy uncertainty, or faster than expected tightening in monetary normalization, can lead to sharp tightening in financial conditions. This, according to Tobias, increases the urgency for policy makers to increase efforts to improve the resilience of the financial system by completing the financial regulatory reform agenda and developing macroprudential policy tools. (VOI/Ndy/Trans NUKE/AHM)

Indonesian President Joko Widodo and Malaysian Deputy Prime Minister, Wan Azizah Wan Ismail in a bilateral meeting at the Bogor Presidential Palace on Tuesday October 9th, 2018 discussed an effort to promote sustanaible palm oil business. The Indonesian Foreign Affairs Minister, Retno Marsudi who accompanied the President said that Malaysian Government had asked Indonesia to work together to promote sustanaible palm oil industry to the world  through Council of Palm Oil Producing Countries (CPOPC). The effort is done to counter negative issues on palm oil that happen to the two countries as the biggest palm oil producers in the world.

"The Deputy Prime Minister has earlier mentioned about palm oil. It means that both countries, like it or not, have to work together to promote the sustanaible palm oil and the President said ok and this is good cooperation reflected in CPOPC. CPOPC is organization of palm oil producers which members are Indonesia and Malaysia. And we work together.through CPOPC, said Retno Marsudi.

Moreover Minister Retno Marsudi said that as Malaysian Prime Minister, Mahatir Mohamad during his visit to Indonesia recently also revealed the same thing. Mahatir asked Indonesian government to fight the negative campaign against palm oil launched by the European Union. The European Union accuses that palm oil plantation causing environmental damage can stall the commodity export from Indonesia and Malaysia. According to Mahatir the accuse was baseless and unproven. Retno added besides palm oil commodity, Malaysian Deputy Pime Minister Wan Azizah mentioned about terrorism termination by Intel information exchange. The Deputy Prime Minister has also promised to increase the security in her country’s water territory with big and sophisticated patrol ship. This follows the kidnapping of two Indonesian citizens working on Malaysian fishing boats in Sabah waters, Malaysia last month. (VOI/REZHA/trans: NK/AHM)

Minister of Communication and Informatics Rudiantara launched Multi-function Satellite Project in the sidelines of a series of  International Monetary Fund ( IMF)- World Bank Annual meeting on Monday (8/10) in Nusa Dua Bali. The launch was attended  by Minister of Finance, Sri Mulyani Indrawati and Minister of Public Work and Public Housing, Basuki Hadimuljono. He said some of heads and representatives of State Owned Enterprises contributed in the governmental development projects. Minister Rudiantara on his speech said that it is the right time for Indonesia to have satellite that can connects all Indonesian people though internet, particularly  in supporting educational world and health in Indonesia.

“Indonesia has two hundred and twenty six thousand  schools including Elementary School, Junior High School and Senior High School. Almost 90 thousand schools have not had internet connection. More than 4 thousands Center for People’s Health have not had internet connection. Almost 50 thousands from 75 thousands sub-district offices and villages  have not connected with internet. We must connect them. There are one hundred and fifty thousand spots that must be connected by us. It takes much time if we use terrestrial solution and withdrawn cables. We will use satellite. So, it is our own satellite. Captive for the government of Indonesia and especially for education and health,” said Rudiantara.

Moreover, Minister Rudiantara said that  the launch of Multi-function Satellite Project  has just reached project tender phase. He emphasized that there were many investors who were interested in supporting the existence of satellite in Indonesia. Rudiantara also said the project of Multi-Function Satellite will use scheme funding between Government Cooperation and Enterprises. He said the scheme guarantees the transparency and supports the  good governance in Indonesia. (VOI/Ndy/TRANS:AF/DP)