Indonesian News

Garuda Indonesia Adds More Flights to Jakarta-Batam Route

Jakarta Globe Business - Fri, 2017-11-17 23:03
Jakarta. National flag carrier Garuda Indonesia on Friday (17/11) increased its flight frequency between Jakarta and Batam in the Riau Islands to 40 per week, from 35 previously. Garuda Indonesia marketing director Nina Sulistyowati said the step was taken to meet increased demand. "The flights to Batam are always more than 75 percent full, making it one of strongest markets," Nina said. "The additional flights are intended to provide more convenience for our customers in the two cities for both business and holiday travel," she added. The additional flights are available on Mondays, Tuesdays, Wednesdays, Fridays and Sundays, departing from Jakarta at 02:00 p.m. and departing from Batam at 02:35 p.m. The airline currently has a total of 54 weekly flights to and from Batam. This includes seven weekly flights between Batam and Medan, North Sumatra, and an equal number between the city and Bandar Lampung.
Categories: Indonesian News

PLN Signs Renewable Energy Deals Worth $1.5b

Jakarta Globe Business - Fri, 2017-11-17 19:48
Jakarta. State-owned utility company Perusahaan Listrik Negara signed power purchase agreements worth Rp 20.4 trillion ($1.5 billion) on Thursday (16/11) with nine independent power producers that will build renewable power plants with a total capacity of 640.65 megawatts. The deal is part of the government's efforts to increase the portion of renewable energy in the country's primary energy mix to 23 percent by 2025 from just 7 percent currently. Energy and Mineral Resources Minister Ignasius Jonan said the new power plants, including a geothermal, a hydropower, and seven small hydropower plants, will bring the total capacity included in power purchase agreements signed this year to 1,189.22 MW. The government has set a target for PLN, which has a monopoly on power distribution in Indonesia, to secure power purchase agreements for a total of 1,200 MW this year. "Developers' interest in renewable energy is increasing," PLN president director Sofyan Basir said. "Therefore, we will persist with efforts to make it easier for developers to invest in renewable energy." The agreements signed on Thursday involve the following projects: 1. Rantau Dedap geothermal power plant in Pagar Alam, South Sumatra, to be built by Supreme Energy Rantau Dedap at a cost of Rp 8.2 trillion. It will have a capacity of 86 MW. 2. Poso Peaker hydropower plant in Poso, Central Sulawesi, to be built by Poso Energy at a cost of Rp 11.1 trillion. It will have a capacity of 515 MW. 3. Tanjungtirta small hydropower plant in Banjarnegara, Central Java, to be built by Maji Biru Pusaka at a cost of Rp 201.6 billion. It will have a capacity of 8 MW. 4. Kincang 1 small hydropower plant, also in Banjarnegara, to be built by Koperca at a cost of Rp 9.14 billion. It will have a capacity of 0.35 MW. 5. Bakal Semarak small hydropower plant in Dairi, North Sumatra, to be built by Semarak Kita Bersama at a cost of Rp 125.6 billion. It will have a capacity of 5 MW. 6. Bone Bolango small hydropower plant in Bone Bolango, Gorontalo, to be built by Bone Bolango Energi at a cost of Rp 416.5 billion. It will have a capacity of 9.9 MW. 7. Koko Babak small hydropower plant in Lombok, West Nusa Tenggara, to be built by Sumber Daya Investasi at a cost of Rp 86.79 billion. It will have a capacity of 2.3 MW. 8. Cikaso 3 small hydropower plant in Sukabumi, West Java, to be built by Zhong Min Hydro Indonesia at a cost of Rp 182.2 billion. It will have a capacity of 9.9 MW. 9. Cibanteng small hydropower plant in Bogor, West Java, to be built by Prima Atrya Energi at a cost of Rp 71.40 billion. It will have a capacity of 4.2 MW.
Categories: Indonesian News

Wika to Boost Profits by 30 Percent in 2018

Jakarta Globe Business - Fri, 2017-11-17 19:27
Jakarta. State-controlled construction firm Wijaya Karya, or Wika, expects to post a 30 percent higher profit next year on the back of new contracts and in an effort to diversify its businesses. This year, the company's profit target is Rp 1.22 trillion ($90.25 million), up 20 percent from last year, while the revenue target is Rp 25.75 trillion, or 64 percent more than in 2016. Wika recorded Rp 435.9 billion in net income in the first six months, a 70 percent increase from the same period last year. The company's revenue increased by 57 percent to Rp 9.5 trillion in the same period. "We will continue to innovate our construction projects and improve our business efficiency to have an outstanding performance record in 2018," Wijaya Karya president director Bintang Perbowo said on Thursday (17/11). At the end of September, the company secured 90 percent of this year's contract target of Rp 103.25 trillion. It wants the value of its new contracts to increase by 24 percent next year and has so far secured three quarters of the target. The company also plans to issue the so-called Komodo bonds — Indonesia's first rupiah-denominated global bonds — by the end of the year. The company earlier reported that it will raise around Rp 5.3 trillion ($400 million) from the Komodo bonds issuance. Several other companies, including state-controlled toll road operator Jasa Marga and state power company Perusahaan Listrik Negara, also intend to issue the bonds. Next year, Wika will participate in a toll road project in Bandung, West Java. Bintang said the company will partner with others in operations, but he did not elaborate further.
Categories: Indonesian News

Indonesia One of Top Three Countries in the World With Largest Number of Digital Tourists

Jakarta Globe Business - Fri, 2017-11-17 19:13
Jakarta. Travelport, a UK-based travel trading platform, has released new data on digital tourist destination trends, with Indonesia in third place after India and China. Digital tourists are those who plan, order and travel by utilizing digital platforms. China is a major contributor to foreign tourist arrivals in Indonesia, with the number of tourists reaching 1,607,600 as of September 2017. Tourism Minister Arief Yahya stated that the "go digital" strategy is important because there is a change of behavior among consumers. Digital travelers nowadays are always interconnected with mobile apps or devices, wherever and whenever. The characteristics of go digital are interactive, from looking, booking and paying on one device. He added that 70 percent of consumers search for and purchase travel bookings digitally. "We must adapt to consumer behavior in order to survive. The proof is clear, digital tourists are getting bigger," Arief said. Not only to attract foreign tourists, go digital is also very important in developing tourism destinations in Indonesia. Managing director of Travelport Asia Pacific (APAC), Mark Meehan, said that based on the survey, 93 percent of respondents admitted they prefer to make travel plans based on videos and photos from social media. "Digitalization adds a larger number of travelers and travel demands in Indonesia. Travel experiences are becoming more transparent and travelers can compare services and costs," Meehan said.
Categories: Indonesian News

Indonesia Secures $300m World Bank Loan for Fiscal Reform

Jakarta Globe Business - Fri, 2017-11-17 18:34
Jakarta. Indonesia secured a $300 million loan from the World Bank to help improve the government's spending quality, revenue administration and taxation policy, the multinational lender said in a statement on Friday (17/11). The loan, which was approved by the World Bank's board of executive directors on Nov. 1, forms part of the Washington-based lender's support for Indonesia's fiscal reforms through a partnership framework focused on government priorities that have transformational impact. "Building on the substantial progress to date, further fiscal reforms are needed so Indonesia can meet its aspirations," said Rodrigo A. Chaves, World Bank country director for Indonesia. "Effective design and implementation of taxation and spending policies can directly and indirectly improve the lives of poor and vulnerable families by making tax systems become more efficient and fair and by better resourcing the government to provide critical services, such as health, social assistance and infrastructure," he added. The loan, prepared in collaboration with the French government's Agence Française de Développement, is also supported by other World Bank programs related to public financial management. The World Bank noted that Indonesia has one of the lowest revenue-to-gross domestic product ratios in East Asia and the Pacific. The multilateral lender said this revenue gap is caused by persistently low compliance rates and also partly due to suboptimal tax-policy design, which has led to a limited tax base and difficulties in its administration. "Without a major reform in revenue collection, along with the continued moderation of commodity prices, Indonesia's revenue-to-GDP ratio may remain at a lower level. This would severely constrain the fiscal space for spending on development priorities," said Hans Anand Beck, World Bank lead economist and team leader for the operation. The loan is the second of three aimed at supporting Indonesia's fiscal reforms. The first has already been allocated to support reforms that included larger allocations for health-care and social-assistance programs, and reducing value-added tax exemptions on some consumer goods to assist poverty reduction efforts.
Categories: Indonesian News

Spatial Planning Issue Blocks Amman's Smelter Development

Jakarta Globe Business - Fri, 2017-11-17 16:29
Jakarta. Amman Mineral Nusa Tenggara, a mining subsidiary of Medco Energi Internasional, has hit a regulatory roadblock in its smelter development, jeopardizing the company's ability to continue exporting some of its gold and copper concentrates. Amman's $1 billion smelter development in West Sumbawa, West Nusa Tenggara, is located in an area designated as farmland, which is an apparent violation of the region's spatial plan. "Amman is building a smelter but it violates spatial planning because it is on farmland," Ahmad Bastian Halim, extractive industries deputy assistant at the Coordinating Ministry for Economic Affairs, said on Thursday (16/11). He said the Amman case is one of "many examples of large investments in mining that are hampered by spatial planning regulations." He said the government is looking at ways to review spatial planning regulations across the country, but in Amman's case, at least for now, the existing spatial plan would take precedence over the company's interests. Amman spokesman Rubi Purnomo was not immediately available for comment. The company started clearing land for the smelter in April, after securing a one-year export permit from the government in February. The permit allows the company to export 675,000 wet metric tons of ore. The permit extension next February would depend on the company's ability to come up with an environmental impact analysis, which Amman seeks to complete by the end of this year. Amman's current plan is to build a smelter with an annual capacity of 1 million tons of copper concentrate, which can be upgraded to double the capacity. The smelter will process concentrates from the company's Batu Hijau and Elang mines. The latter is currently still in the exploration phase.
Categories: Indonesian News

Indonesia Second Favorite Destination for Muslim Millennial Travelers: Mastercard Report

Jakarta Globe Business - Fri, 2017-11-17 14:27
Jakarta. Indonesia is Muslim millennials' second-favorite holiday destination based on a recent report from Mastercard-Halal Trip Muslim Millennial Travel Report. Despite losing out to Malaysia, which was the demographic's top choice, Indonesia's position improved from a previous fourth place in 2016. "Even though the target is number one, this result has shown an improvement. The target for next year should be number one," said Tourism Minister Arief Yahya at the Wonderful Indonesia Co-branding Forum (WICF) event at Balairung Soesilo Sudarman in Jakarta on Tuesday (14/11). "We've set our competitors. Our emotional rival, Malaysia. Our professional rival, Thailand. Even Japan has started to provide halal certificated foods," said Tourism Minister Arief Yahya. He added that the entire nation must continue to work hard to make improvements in the tourism sector.
Categories: Indonesian News

Bali to Prepare for End-Year Peak Season

Jakarta Globe Business - Fri, 2017-11-17 11:43
Jakarta. Tourism Minister Arief Yahya said that Bali is ready to welcome foreign tourists during peak travel season from the end of November to January 2018 to achieve the 2017 target of drawing 15 million tourists to Indonesia. According to a statement received by the Jakarta Globe on Thursday (16/11), Arief said the tourism sector is more and more becoming the leading driver of the nation’s economy. The number of foreign tourists who entered Indonesia from January-September this year reached 10,458,000, up 25.05 percent with the same period in 2016. That increase, according to deputy for foreign marketing development I Gde Pitana, is certainly very positive. Compared to Asean's growth of only 6.5 percent and the world's growth of only 5 percent, a 26 percent increase in foreign tourists arrivals to Indonesia is certainly enough to raise optimism. He said from Sept. 23 to Oct. 29 the status of Mount Agung, a volcano in Bali, was set at the highest alert level, which had a clear impact on visits to Bali, the largest destination of foreign tourists in the country. Under the direction of Arief, the Bali Tourism Hospitality Task Force was formed to fulfill the needs of tourists such as accessibility, accommodation and attractions, as well as monitoring and handling issues that develop in the media related to Mount Agung’s activity. The Tourism Ministry is now intensifying marketing strategies and promotions to potential markets such as China, Singapore, Australia, Malaysia and Japan. Activities include conducting introduction tour activities by inviting media and tour operators from each country.
Categories: Indonesian News

Cinemaxx Future Strategy, Expansion Amid Tech Disruption

Jakarta Globe Business - Fri, 2017-11-17 11:14
Jakarta. Indonesian movie theaters will continue to thrive as unique cinema experiences — in comparison to digital streaming services or cable television services — especially because of a large market potential to expand. The largest economy in Southeast Asia today only has one movie screen for every 260,000 to 270,000 people, far below the likes of Malaysia or Taiwan, which have one screen for every 30,000 to 40,000 people. For Brian Riady, executive director of Cinemaxx Global Pacific, a cinema network operating under the Lippo Group, this means that the industry has room for growth of five to seven times over. "We see that there is going to be a lot of growth coming in the future across the country. Indonesia's population is young, with a median age of 29," Brian said. He said Indonesia's cinema industry could generate around $300 million a year, or about $1.5 billion to $2 billion over the next five years. This young market, Brian said, while becoming more familiar with digital streaming businesses, still has a soft spot for the cinema experience. The cinema business has survived disruption from television, then home videos and DVDs in recent decades and blooming digital streaming services are unlikely to permanently dent the industry's growth. "People come to the movie theaters because they want shared experiences with the people closest to them. If you go to a cinema with your family, wife, children, girlfriend or loved ones, you will find a different experience than watching a home entertainment, YouTube or streaming service at home," he said. Indonesia today has more than 1,300 movie screens, while Cineplex 21, Indonesia's largest cinema chain, owns about 1,000 screens. Key metropolitan markets, like Greater Jakarta, account for at least 50 percent of total cinema screens in the country. Java is home to 75-80 percent of all movie screens in the country. Tier 2, Tier 3 For Cinemaxx, it is crucial to bring the going-to-cinema experience to Indonesia's underserved market. "We see [growth opportunities] not coming from the metropolitan market, but from tier 2-3 markets," he said, referring to cities with populations between 500,000 and 1 million, and cities with populations between 100,000 to 500,000, respectively. Cinemaxx grew its business to 100 screens in just less than two years - from August 2014 to May 2016 - a relatively short period considering "other cinema players spent 10 years to operate 100 screens," Brian said. Currently, Cinemaxx operates 26 cinemas with 140 screens in 20 cities across the archipelago, including Denpasar in Bali, Baubau in Southeast Sulawesi, Lombok in West Nusa Tenggara, Kupang in East Nusa Tenggara, Bandung in West Java and Batu in East Java. By the end of 2018, the company projected to operate 340 screens and by the next five years, Brian targets to operate a total of 800-1,000 screens. "We are still very small, only about 10 percent of [market share in Indonesia]. We are also still finding a good model, building a team. But we are only three years old. We have the potential to grow fast," he said. Competition and Local Film In the 1990's Indonesia, only Cineplex 21 served large metropolitan cities, while smaller, independent theaters catered to markets in less populated cities. In 2006, Blitz Megaplex, which was later acquired by South Korea's CGV, made a splash into the urban cinema market. In the past few years, however, many more cinema operators have entered the scene, including Flik - which operates under property developer Agung Sedayu Group - and Kota Cinema Mall. South Korea's conglomerate Lotte is also starting to invest in Indonesia's cinema industry following a government decision to allow foreigners to own 100 percent stakes in cinemas. Still, heightened competition in the cinema industry can benefit the local film industry. Cinema operators sold 9.43 million tickets of local films in 2014. That number grew 10.2 percent to 10.4 million tickets in 2015. Brian said that last year Indonesia's cinema operators sold 30 million tickets for films produced in Indonesia. "The growth in cinema is always succeeded by local production or films. If you think about local films and production, Indonesia or other markets, the biggest market is going to be local audiences," Brian said. In 2014, local films offered by Cinemaxx only accounted for 7.4 percent of all tickets sold.  That number rose about 10.3 percent in 2015, while last year it jumped to 33.5 percent. As of this year, local film ticket sales account for 34.5 percent of all Cinemaxx tickets sold.          
Categories: Indonesian News

Bank Indonesia Revises 2017 GDP Growth Forecast to 5.1%

Jakarta Globe Business - Thu, 2017-11-16 22:49
Jakarta. Bank Indonesia revised its forecast for 2017 economic growth to 5.1 percent on Thursday (16/11), near the lower end of its previous range of 5.0 percent to 5.4 percent. The central bank announced the change at the end of a policy meeting at which it held the key policy rate at 4.25 percent, as widely expected. Earlier this month, Indonesia reported annual growth of 5.06 percent in the third quarter, which fell short of the market's projection of 5.13 percent. On Thursday, the central bank said it expected the current-account deficit for 2017 to be less than 2 percent of gross domestic product, and it expects the headline inflation rate to be between 3.0 and 3.5 percent at year-end. Reuters
Categories: Indonesian News

Bank Indonesia Holds Key Interest Rate at 4.25%, as Expected

Jakarta Globe Business - Thu, 2017-11-16 22:45
Jakarta. Bank Indonesia kept its key policy rate unchanged on Thursday (16/11), as expected in line with a goal of maintaining financial stability at a time the market anticipates a US interest rate hike next month. The central bank held the seven-day reverse repurchase rate at 4.25 percent for a second straight month. In August and September, the bank cut the rate by a total of 50 basis points. On Thursday, the deposit facility and lending facility rates were also kept unchanged, at 3.50 percent and 5.00 percent, respectively. All 20 analysts polled by Reuters had forecast that the policy rate would be held. Reuters
Categories: Indonesian News

World Bank Releases Report Assessing Indonesia's Social Assistance Programs

Jakarta Globe Business - Thu, 2017-11-16 22:41
Jakarta. Indonesia's multi-year efforts to reduce poverty and inequality need a strategy update to further expand coverage, effectiveness and accelerate results, according to a report by the World Bank published on Wednesday (15/11). The report, titled "Towards a Comprehensive, Integrated and Effective Social Assistance System in Indonesia," reassesses both the strengths and weaknesses of the country's social assistance programs and proposes possible reform options. The report is an update of the bank's 2012 report titled "Protecting Poor and Vulnerable Households in Indonesia." "It is encouraging to see Indonesia's efforts to intensify social assistance reforms will help the country continue to move forward on the path of poverty and inequality reduction," Rodrigo A. Chaves, World Bank country director for Indonesia, said in a statement. "Continued reforms will ensure that the poorest families can receive more comprehensive coverage." The World Bank noted that Indonesia has been committed to developing social assistance programs with some achievements in the sector, including the reallocation of fuel subsidies to direct assistance to poor and vulnerable families; expansion of the conditional cash transfer program – also known as the Family Hope Program (PKH) – to the 10 million poorest families by the end of 2017 from 6 million last year and 3.5 million in 2015. Despite these efforts, the government is facing slowing poverty reduction and rising inequality. The report noted that the average annual reduction in the headcount poverty rate has slowed to 0.6 of a percentage point from 2014 to 2017, to reach 10.6 percent as of March this year. That compares with a 0.5 percentage point between 2011 and 2014 and 1.2 percentage points between 2007 and 2010. Meanwhile, inequality is also on the rise. The report notes that the Gini coefficient rose by about 6 percentage points in the 2005-2012 period and declined by 1.7 points to 39.3 Gini points by March 2017. A zero value represents absolute equality, while a value of 100 represents absolute inequality. The ultimate recommendation is to establish a "one system" integrated social assistance framework in the next four years that will bring all institutions, agencies and initiatives providing social assistance to share common standards and procedures. The report also recommends more flexible planning to provide benefits at times when they are needed and improved monitoring and evaluation to promote evidence-based implementation. "Improvements within existing programs will lead to a more effective system. Reforms such as these require time and experimentation to fully evolve, but given the achievements of recent years, we are confident of greater and lasting results in the near future," said Pablo Acosta, Changqing Sun and Juul Pinxten, the lead authors of the report. President Joko "Jokowi" Widodo has set a target to reduce the poverty rate to around 9.5 percent in 2018, compared with this year's 10.6 percent. According to the government's financial note, efforts to reduce poverty will include continuing with existing programs, providing basic infrastructure, as well as helping micro, small and medium businesses to reach their markets and receive funding.
Categories: Indonesian News

Italian Manufacturers Seek Cooperation With Indonesian Businesses in Printing, Packaging

Jakarta Globe Business - Thu, 2017-11-16 21:36
Jakarta. Italian manufacturers on Wednesday (15/11) expressed their interest to increase cooperation with their Indonesian counterparts, particularly in printing and packaging, during the 2017 Printech Indonesia event in Kemayoran, North Jakarta. "[Indonesia is] a very interesting prospect market for Italian companies [...] We are willing to strengthen cooperation with Indonesian industries," Alessandro Liberatori, director of the Italian Trade Agency (ITA) in Jakarta, said. The Italian Pavilion at the 2017 Printech Indonesia featured nine Italian companies in graphic, paper and converting machinery, including Cerutti Packaging Equipment and Uteco Converting. Liberatori hopes that the event will facilitate interaction and create a foundation to foster cooperation between Indonesian and Italian businesses. "In Indonesia there is no industry for graphic machinery. All our machinery for printing is imported from overseas," Ahmad Mughira Nurhani, chairman of the Indonesian Print and Media Association, said. Speaking at the event, Italian Ambassador to Indonesia Vittorio Sandalli also emphasized that "Italy can offer longstanding expertise and high level of technology" in this sector. According to business development director of the Indonesian Packaging Federation (IPF), Ariana Susanti, Indonesia’s packaging market size currently stands at $6.7 billion. The federation is expecting an increase of 4 to 6 percent by the end of the year, and targets an increase to $9.6 billion in the next few years. The 2017 Printech Indonesia concludes on Nov. 18.
Categories: Indonesian News

SE Asia Stocks: Indonesia Snaps 6 Days of Falls Ahead of Central Bank Meeting

Jakarta Globe Business - Thu, 2017-11-16 21:32
Indonesian shares climbed more than 1 percent on Thursday (16/11), snapping six straight sessions of decline, ahead of a central bank policy meeting, while Philippine stocks gave up early gains to close lower. Bank Indonesia is widely expected to keep its key interest rate unchanged, despite sluggish economic growth, as it prioritizes stability before an anticipated hike in US rates. Consumer goods and infrastructure stocks led the rise with Gudang Garam climbing 5.3 percent to its highest close since early July, while Telekomunikasi Indonesia gained 1.7 percent. The index of the 45 most liquid stocks in Indonesia surged 1.6 percent. Philippine shares fell 0.8 percent to their lowest close in more than six weeks after rising as much as 0.7 percent earlier in the day. Data released earlier showed that the country's economy expanded by a faster-than-expected 6.9 percent in the third quarter from a year earlier. SM Investments Corp and Ayala Corp were the biggest drags, shedding 2.3 percent and 2.7 percent, respectively. Fio Dejesus of Manila-based RCBC Securities said profit-taking in the two stocks sent the index lower. Singapore shares dropped for a fifth consecutive session, weighed down by banks. DBS Group Holdings shed 1.1 percent, while United Overseas Bank dropped 0.7 percent. Vietnam extended gains into a 10th session to close at its highest since January 2008, supported by consumer staples and financials. Joint Stock Commercial Bank for Foreign Trade of Vietnam rose 2.5 percent, while brewer Saigon Beverage Corp climbed 3.4 percent. Malaysian shares fell 0.3 percent to close at their lowest in eight months. CIMB Group Holdings dropped 1.3 percent to its lowest close in seven months, while telecommunication services provider Axiata Group fell 2.6 percent. Reuters
Categories: Indonesian News

China Hongqiao Mulls Moving Aluminum Smelting Capacity to Indonesia

Jakarta Globe Business - Thu, 2017-11-16 21:26
Fuzhou. China Hongqiao Group , the world's biggest aluminum producer, is looking into the possibility of moving recently shuttered illegal smelting capacity overseas, mainly to Indonesia, a source close to the company said on Thursday (16/11). Hongqiao had to shut 2.68 million metric tons in annual smelting capacity in its home province Shandong at the end of July amid reforms to cut excess supply in China. Hongqiao chief executive Zhang Bo told Reuters on Wednesday that this would not come back online next year. However, the company is "reviewing the feasibility" of moving this shuttered capacity to other countries, said the source who was briefed on the plan. Indonesia is the most likely destination since the company already has a 1-million-ton per year alumina refinery in the Southeast Asian nation, the source said, adding that Hongqiao is also evaluating the Indonesian market to get an idea of local aluminum demand. China is both the world's biggest producer and consumer of aluminum, but Hongqiao could find its expansion options at home limited amid ongoing supply-side reforms and seasonal curbs on production for environmental reasons. Hongqiao, with annual smelting capacity of 6.5 million tons, is among Chinese firms that must reduce aluminium output over winter, or from Nov. 15 until March next year, as part of China's anti-smog campaign. An executive at Hongqiao's state-run rival, Chalco, earlier told the China Aluminum Week conference in Fuzhou his company was also looking to Indonesia as a source of bauxite, the aluminum ore which is processed into alumina, which is then used to produce aluminum. "It's a good time to go global," Chen Xuesen, deputy director of the strategy development department at Chalco parent Chinalco, or Aluminum Corp of China, told the same conference. There has been a dearth of investment by Chinese companies in overseas aluminum smelting capacity, he said, except for Citic Resources Holdings' interest in a smelter in Australia, and that it had been difficult to find places that can provide the necessary amount of power for the smelting process. "More companies will take the initiative," Chen said. Reuters
Categories: Indonesian News

Premier Oil Seeking Buyers for Stake in Indonesian Gas Field

Jakarta Globe Business - Thu, 2017-11-16 20:36
London. Premier Oil is seeking buyers for a 25 percent stake in the Tuna field development in Indonesia after reaching a gas sale deal with Vietnam, chief executive Tony Durrant said on Thursday (16/11). Premier and SKK Migas signed on Nov. 10 an agreement to sell gas to Vietnam from the Tuna development, Premier said in a trading update. The field holds around 500 billion cubic meters of resource, Durrant said. The offtake agreement "represents a significant step forward in the potential development of the field envisaging using a new cross-border pipeline to connect the Tuna area to the existing Nam Con Son Pipeline system in Vietnam," Premier said. Premier will conduct appraisal drilling for the project in 2019 and will likely make a final investment decision late that year or in early 2020, Durrant told Reuters in an interview. The UK-focused oil and gas explorer owns a 65 percent stake in the field and will seek to sell up to a 25 percent stake to a partner in order to help finance the development, Durrant said. "We would like to keep 40 percent of the field," he said. Production from the field, which Premier discovered in 2014, is expected to start in 2022, he added. Premier Oil expects its $2.8 billion debt pile to start falling, with its flagship Catcher oilfield in the North Sea set to begin production on time in December, it said on Thursday. Reuters  
Categories: Indonesian News

Ciputra Group and Goenawan Mohamad Deny Buying Dahlan Iskan's Stake in Jawa Pos Group

Jakarta Globe Business - Thu, 2017-11-16 18:32
Jakarta. A director at Ciputra Development, a listed property developer that is part of the Ciputra Group, and senior journalist Goenawan Mohamad on Thursday (16/11) denied buying media mogul and former State-Owned Enterprises Minister Dahlan Iskan's stake in the Jawa Pos Group. Warta Ekonomi, a bi-weekly magazine, reported on Wednesday that Dahlan sold his entire stake in the Jawa Pos Group, a media-focused conglomerate, to the Ciputra Group. "The news was inaccurate," Harun Hajadi, a director at Ciputra Development, told the Jakarta Globe via telephone interview on Thursday. He declined to elaborate further. Ciputra, the founder of his self-entitled business conglomerate, is not a newcomer to the media industry. Along with Sukamdani Sahid Gitosardjono, Anthony Salim and Eric Samola, he established Jurnalindo Aksara Grafika, which publishes daily business newspaper Bisnis Indonesia. Sukamdani is the head of the family that controls two of Indonesia's oldest hotel chains, Hotel Sahid and Hotel Sahid Jaya Internasional. Anthony is the head of diversified conglomerate Salim Group. The report also mentioned Goenawan – the founder of Tempo weekly magazine – as one of the recipients of Dahlan's shares and that his son, Hidayat Jati, replaced Dahlan's son Azrul Ananda, known as Ulik, as Jawa Pos newspaper's president director. Both denied the news via social media. "The news about Jawa Pos by @thejakartaglobe is not true. There hasn't been any stake sale of Dahlan Iskan [at Jawa Post]," the senior journalist said in his tweet on Thursday.

Berita ttg Jawa Pos oleh @thejakartaglobe itu tidak benar. Sampai saat ini, tak ada penjualan saham Dahlan Iskan. Ajaib, @thejakartaglobe mau siarkan berita palsu.

— goenawan mohamad (@gm_gm) November 16, 2017 Hidayat also denied the news via his Facebook account. According to Warta Ekonomi's report, apart from selling his stake to Ciputra, the former minister allegedly sold some of his shares to his former Jawa Pos partner Eric Samola, whose family owns a stake in Tempo Inti Media, a listed media company that publishes Tempo Group's daily newspaper, weekly magazine, online news portal, children's magazine and lifestyle journals. However, Eric passed away more than 17 years ago, in October 2000. The report also said the Jawa Pos Group called an extraordinary general meeting of shareholders on Tuesday, which approved the resignation of Dahlan's son Azrul Ananda, known as Ulik, from his position of Jawa Pos newspaper's president director and Jawa Pos Group's commissioner. The Jakarta Globe spoke to some sources familiar with the matter who requested anonymity, saying that Dahlan met other shareholders at Jawa Pos Group on Wednesday evening and decided not to go ahead with the sale of his shares in the group. Dahlan did not reply to the Globe's inquiry via text message.
Categories: Indonesian News

Infrastructure Development Paramount to Compete With Our Neighbors: Jokowi

Jakarta Globe Business - Thu, 2017-11-16 17:03
Jakarta. Indonesian President Joko "Jokowi" Widodo in a speech on Wednesday (15/11) spoke of infrastructure as a "fundamental foundation" for the country to compete with its neighbors, and said that having a "big vision" and a long-term plan to develop the country is of utmost importance. "We are a big country, with big potentials. But we are far behind our neighbors [...] why are we building a lot of new infrastructure? Because trying to compete with other countries is impossible without the right infrastructure," Jokowi said during a speech at the National Democratic Party’s (Nasdem) sixth anniversary event in Jakarta. Since taking office in 2014, Jokowi’s administration has been obsessing over Indonesia’s infrastructure development, with targets set for 2019 to build toll roads, dams, power plants and transportation hubs. This includes a new Trans-Papua road in Papua and West Papua, Makassar New Port in South Sulawesi and Kuala Tanjung Port in North Sumatra. According to Jokowi, these projects are part of the government’s effort to compete with its neighbors and to create equality and social justice across the archipelago. "Do we have to wait for Papua’s economy to grow before we can build roads there? I don’t think so. We build the roads because we are more than certain their economy will grow," Jokowi said. The president spoke optimistically of Indonesia’s progress in developing its infrastructure and human resources, emphasizing the need for a "big vision" to decide which projects must be prioritized, and to devise a long-term plan. Jokowi also explained his plan to boost Indonesians' — especially low-income earners' — purchasing power using the so-called "village funds." Next year, the government's "Padat Karya Cash" program will use the funds through ministries — including the Villages, Disadvantaged Regions and Transmigration Ministry and the Transportation Ministry — to create more jobs. During the event, Nasdem also nominated Jokowi as the party’s candidate in the 2019 presidential election.
Categories: Indonesian News

Gov't Expects Completion of Manado-Bitung Toll Road by 2019

Jakarta Globe Business - Thu, 2017-11-16 16:58
Jakarta. Public Works and Housing Minister Basuki Hadimuljono visited the Manado-Bitung Toll Road project in North Sulawesi on Tuesday (14/11). The 39-kilometer toll road, scheduled for completion in 2019, will connect the provincial capital and Bitung International Seaport. The road is among President Joko "Jokowi" Widodo's national strategic projects and it is designed to eliminate traffic congestion along the route and lower logistical costs in the region. It is also expected to cut travel time between Manado and Bitung to 45 minutes from up to two hours currently. "As one of the doors for export-import activities, Bitung Seaport is critical for our economy and the toll road will provide better access to it," Minister Basuki said in a statement on Wednesday. Land acquisition for the project is currently 75 percent completed and some construction work has already taken place since 2016. "The management should accelerate the project with a larger labor force and increased working hours, especially on the land that has already been cleared," Basuki said. The road is partly funded from the state budget, with additional funding from a Chinese government loan and an investment by state-owned toll road operator Jasa Marga.
Categories: Indonesian News

Indonesia to Set Up Land Bank Next Year

Jakarta Globe Business - Thu, 2017-11-16 15:22
Jakarta. Indonesia will soon release a presidential regulation as a legal basis to set up a land bank entity next year as part of the government's efforts to address a land deficit for housing, a minister said on Tuesday (14/11). The forthcoming land bank, which will repossess any piece of land left unused by their owners after a certain period, is designed to prevent land prices from skyrocketing due to speculation. "Hopefully by the end of 2017 or early next year we will have the land bank," Agrarian Affairs and Spatial Planning Minister Sofyan Djalil said. According to Sofyan, the regulation on land bank is now awaiting a signature from President Joko "Jokowi" Widodo. The government is still preparing more details on the land bank entity's organization and its budget, Himawan Arief Sugoto, the head of land bank formation team at the ministry, said. According to Himawan, the Indonesian land bank will serve as a state-owned entity to acquire vacant properties such as abandoned houses, forgotten buildings and empty lots so that they can be repurposed. He estimates there are 78,000-hectares of abandoned land, 23,000-hectares of which has been acquired by the government to be used by the National Police, the Indonesian Armed Forces and civilians for social purposes. "The land can also be used for industrial area or [building] new cities," he said. "The [abandoned] land should be handed over to the land bank and then we plan, design so there won't be any chance for land speculators to spur the land price." The Ministry of Public Works and Housing said Indonesia's housing backlog — or the difference between housing needs and its availability on the market — reached 13.5 million units this year. Each year, Indonesians need about 800,000 unit of housing but developers can only provide as much as 500,000 units a year.  
Categories: Indonesian News
Syndicate content