| National Affairs
Indonesia cracks down on cheap fares to boost airline safety Reuters 8th Jan 2015
Indonesia has cracked down on the sale of cheap tickets for domestic flights to ensure that airlines do not cut corners on safety, the transport ministry said on Thursday. The decision to tighten the rules on the fares came into effect on Dec. 30, two days after AirAsia flight QZ8501 crashed into the Java Sea en route from Indonesia to Singapore. There were no survivors among the 162 people on board.
PAN braces for ‘dynamic’ chairman election The Jakarta Globe 8th Jan 2015
Another member of the opposition Red-and-White Coalition, the National Mandate Party (PAN), may see an internal rift manifest in its upcoming national congress, which will see a succession in the party. PAN is expected to see incumbent Hatta Rajasa compete against People’s Consultative Assembly (MPR) speaker Zulkifli Hasan in the party’s chairmanship race slated to take place in March. Party members have already referred to the upcoming race as “very dynamic”. - See more at: http://www.thejakartapost.com/news/2015/01/08/pan-braces-dynamic-chairma...
Golkar will not try to oust government The Jakarta Post 8th Jan 2015
Negotiators for the Golkar Party’s conflicting camps have drafted an agreement, including a clause that the party will not attempt to overthrow the current government. “We agree not to disrupt or overthrow the current government for the next five years,” kompas.com quoted Agun Gunandjar Sudarsa, a negotiator from Agung Laksono’s camp, as saying after a meeting at Golkar Headquarters on Thursday.
AirAsia Jet Tail Found: Basarnas Chief The Jakarta Globe 7th Jan 2015
Indonesia’s Search and Rescue Agency, or Basarnas, on Wednesday announced they had recovered the tail from the wreck of AirAsia Flight QZ8501. “We have a picture of the part and we can confirm that it’s the tail,” Bambang Soelistyo, chief of the Basarnas, told reporters at a press conference in Jakarta. Soelistyo said the picture — taken by one of the recovery divers — showed the piece on the seabed with “AX” and “Air” visible on the side, which confirmed it was part of the Indonesia AirAsia plane. The piece of the wreckage was about 10 meters in length, five meters in width and three meters high, according to a report from Detik.com quoting Bambang.
Jokowi Inaugurates Two PDI-P Members to Constitutional Court The Jakarta Globe 7th Jan 2015
President Joko Widodo inaugurated a Balinese law professor from his own political party on Wednesday to a vacant seat on Indonesia’s beleaguered Constitutional Court. I Dewa Gede Palguna, a law professor from Udayana University in Bali, was appointed the new Constitutional Court justice to replace Hamdan Zoelva, the court’s chief justice. Hamdan withdrew his application for re-selection to the court, the highest court of appeal on legal disputes relating to Indonesia’s written constitution, without giving a specific reason.
Indonesia naval captain says may have located missing plane's tail section Reuters 5th Jan 2015
An Indonesian naval patrol vessel has found what could be the tail of a crashed AirAsia passenger jet, the section where the crucial black box voice and flight data recorders are located, officials said on Monday. News of the possible breakthrough came as the transport ministry in Jakarta said some officials on duty at the time of the accident will be moved to other roles. It also announced it was tightening rules on pre-flight procedures.
Indonesia’s marine policy The Economist 3rd Jan 2015
ITH over 13,000 islands, Indonesia is by far the world’s biggest archipelagic state, a nation shaped as much by the seas around it as by its land. Yet the new president, Joko Widodo, believes Indonesians have “for too long turned our backs” on the water. In his inaugural speech in October the head of state, widely known as Jokowi, expressed a desire to “be as great in the oceans as our ancestors were in the past”. A few weeks later, at an Asian summit in Myanmar, he went further. Indonesia should revive its maritime culture, develop its fishing industry, improve maritime links through things like better ferries and ports, and crack down on illegal fishing and other violations of sovereignty. Indeed, he said, Indonesia should be nothing less than a “world maritime axis” between the Indian Ocean and the Pacific. For all Jokowi’s related talk of boosting naval and coastguard strength (Indonesia’s naval budget is smaller than Singapore’s), his new maritime policy is aimed squarely at increasing prosperity at home. Tens of millions of Indonesians live from fishing. Meanwhile, the country’s farthest-flung islands, particularly those in the east, suffer from the tyranny of distance; improving maritime linkages would cut high transport costs and boost investment and productivity, particularly in manufacturing.
ASEAN
ASEAN Open Skies Set to Go Ahead Despite Year of Disasters in 2014 Jakarta Globe 5th Jan 2015
The recent crash of Indonesia AirAsia Flight QZ8501 in the Java Sea will not deter Indonesia’s aviation industry from embracing the opportunities offered by the Asean Open Skies policy, a scheme to liberalize the regional aviation market that came into effect on Jan. 1. Under the new policy, Southeast Asia’s skies will be transformed into a single aviation market, part of the Association of Southeast Asian Nations’ (Asean) Economic Community commitments that have been agreed upon by heads of the 10 members states of bloc.
Customs
New policy brings hope for Indonesian maritime industry Seatrade Global 2nd Jan 2015
With Indonesian president Joko Widodo's declared intention to to develop the maritime sector, the shipping industry and related businesses see renewed hope that the time has finally come for Indonesia to redefine its logistics systems to provide greater opportunities for shipping companies while at the same time lowering the cost of shipping goods, local reports said. According to industry players, the first key step is for the government to free the shipyard business from the tariffs that add 25% to production costs. Lack of incentives and no specific shipping policies in the past have caused inefficiencies in the industry, they said. While the introduction of the cabotage principle has seen the number of ships — operated by 1,200 shipping companies — increase to 13,244 in 2014, compared with only 5,000 ships seven years ago and total capacity increase to 19m gt from 5.6m gt scale is not everything, said INSA head Carmelita Hartoto. Indonesia needs more than just the cabotage principle. Issues related to port development and shipbuilding management as well as infrastructure need attention too, she said. Despite growing demand, national shipyards are not able to meet the market demand because of a range of problems.
Defense & Security
US to get involved in RI military The Jakarta Post 8th Jan 2015
Indonesia and the United States have stepped up their defense cooperation with the signing of an agreement under which the former will get more support and assistance from the US in planning and managing defense strategy. On Wednesday, the Defense Ministry and the US-based Defense Institution Reform Initiative (DIRI) signed a memorandum of understanding (MoU) allowing the latter to help formulate strategies with the aim of enhancing the performance of the Indonesian Military (TNI) from 2015 to 2019.
Outgoing Air Force chief reveals 2015-2019 modernization plans The Jakarta Post 8th Jan 2015
The Indonesian Air Force plans to conduct modernization programs for its aircraft and systems as well as procuring new assets in the 2015-2019 period, outgoing Air Force chief of staff Air Chief Marshal Ida Bagus Putu Dunia said on Thursday. In 2015, the Air Force will conduct the Falcon Star program to extend the structural life and mid-life upgrade (MLU) program to modernize the avionics of F-16 A/B Block 15 jet fighters, which belong to the 3rd Squadron at Iswahjudi Air Force Base (AFB) in Madiun, East Java, the Air Force said on its website.
Indonesia Tightens Security After US and Australia Warning The Jakarta Globe 7th Jan 2015
Indonesian authorities are on heightened alert following a security warning from the United States and a travel advice message from Australia — despite maintaining there is no imminent threat to safety. Tedjo Edhy Pudjianto, Indonesia’s Coordinating Minister of Politics, Legal and Security Affairs, said he had instructed all security forces to increase alertness in anticipation of a possible terrorist threat. However, he said Indonesia was not aware of a specific threat. “There have been no reports from the National Intelligence Agency (BIN) or the National Police, but that doesn’t mean we ignore it, we need to be more alert,” Tedjo said on Wednesday. The Australian travel warning was issued just days after the United States embassy in Jakarta issued a security warning for US-affiliated hotels, banks and businesses in Surabaya, East Java.
E. Java Police: Officers on Alert After US Security Warning The Jakarta Globe 5th Jan 2015
The East Java Police will do their best to safeguard American interests in and around Surabaya, its chief said late on Sunday, a day after the US embassy in Indonesia issued an alert reportedly related to the Islamic State movement. A.M. Hendropriyono, a former chief of the State Intelligence Agency (BIN), said on Monday that the issuance of the alert was related to the threat emanating from IS, which is outlawed in Indonesia but does have sympathizers here. “[The warning] is related to ISIS activity. From our own threat analysis it is clear that ISIS is still present,” said Hendropriyono, who is currently an adviser to the administration of President Joko Widodo.
Economics
Analysis: 2014 in review - 2015 market outlook The Jakarta Post 8th Jan 2015
The year 2014 ended strongly for the Jakarta Composite Index (JCI), which closed at 5,227 (high of 5,263 on Sept. 8; low of 4,161 on Jan. 6), reflecting a strong annual performance of 22.3 percent year on year (y-o-y) — much better than the 2013 performance of minus 1 percent y-o-y. In terms of regional performance, the JCI was the fourth best in both absolute (table 1) and US dollar terms (the Indonesian rupiah depreciated 1.8 percent in 2014), behind Shenzhen (China), Sensex (India) and the PCOMP (the Philippines).
Rupiah off to bad start as drop continues Jakarta Post 7th Jan 2015
Indonesia’s rupiah has had a bad start to the year, with investors kicking off 2015 in favor of the US dollar on bright economic prospects for the world’s largest economy, while other countries in the world struggle to grow. The rupiah began the year at around Rp 12,500 against the US dollar and has been depreciating ever since, hitting Rp 12,658 on Tuesday, according to Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR). Other emerging market currencies have also felt the pinch on speculation that Greece may exit the eurozone, a gauge of 20 developing-nation currencies sliding 0.9 percent to a 12-year low, according to Bloomberg data.
Widodo Makes Biggest Change to Indonesia Fuel Subsidies: Economy Bloomberg 30th Dec 2014
Indonesia will cap the diesel subsidy and scrap aid for gasoline beginning tomorrow, the biggest changes to a decades-old system that has tied up budget funds and bloated energy imports. President Joko Widodo’s government will implement a fixed diesel subsidy of 1,000 rupiah ($0.08) a liter effective Jan. 1, Energy Minister Sudirman Said told reporters in Jakarta today. The subsidy for gasoline will be scrapped, said Sofyan Djalil, coordinating minister for economic affairs. The government will pay gasoline distribution costs for areas outside of Java, Madura and Bali, Said explained.
Energy
Tin Shipments From Indonesia Tumble to Eight-Year Low on Curbs Bloomberg 8th Jan 2015
Tin exports from Indonesia slumped to the lowest level in at least eight years in 2014 after the world’s largest supplier tightened rules on exports. Shipments fell 17 percent to 75,925 metric tons last year from 91,613 tons in 2013, according to data from the Trade Ministry. That’s the smallest since 2007 when the government started checking overseas sales. Exports in December jumped to 10,318 tons from 465 tons in November, data showed today.
Kalla Group, Pertamina plan to develop LNG receiving terminal The Jakarta Post 8th Jan 2015
Kalla Group, through its subsidiary PT Bumi Sarana Migas (BSM), plans to team up with state-owned oil and gas company PT Pertamina to develop a Liquefied Natural Gas (LNG) receiving terminal in Banjarnegara, Banten. “We had previously aimed to develop an LNG receiving terminal on the west side of Java,” Pertamina director Yenni Andayani said, as quoted by kompas.com on Thursday.
Scrapping of fuel subsidies a landmark and boost for Indonesia Reuters 7th Jan 2015
The announcement came without fanfare, in line with Indonesian President Joko Widodo's style, but his decision to let petrol prices float freely is the most significant move to stabilise Southeast Asia's largest economy in years and shows his resolve to promote reform. On Jan. 1, Widodo's government scrapped subsidies for petrol, letting pump prices rise and fall in line with the cost of crude oil. "It took some guts," said economist Wellian Wiranto at OCBC in Singapore.
Indonesia Presses On With Higher Coal Royalty Fee to Boost State Revenue The Jakarta Globe 7th Jan 2015
The Indonesian government is pressing on with its plan to raise the royalty charged to coal miners in order to increase state revenue, but the move may cripple an industry that is battling with declining coal prices and weak global demand. The coal royalty fee will rise to 7 percent of total sales for coal with calorific content of less than 5,100 kilocalories per kilogram, from 3 percent, said R. Sukhyar, director general of coal and mineral at the Energy and Mineral Resources Ministry, on Tuesday.
Indonesia Doubles Transport Budget on $18 Billion Fuel Gain Bloomberg 5th Jan 2015
Indonesia will save about $18 billion from the biggest overhaul of its decades-old fuel subsidy system, allowing the government to double spending on transportation, agriculture and public works. The government will save 230 trillion rupiah ($18 billion) in total from the fuel subsidy change and 60 percent of that will be spent on infrastructure, Finance Minister Bambang Brodjonegoro told reporters today. The government plans to double spending on transportation from last year, said Energy and Mineral Resources Minister Sudirman Said in a Bloomberg Television interview with Angie Lau today.
Indonesia Ends Subsidy of Low-Grade Gasoline The Jakarta Globe 2nd Jan 2015
Indonesians can finally enjoy a lower price of gasoline, thanks to a new fixed subsidy scheme introduced by the government and falling global oil prices. On Wednesday, chief economics minister Sofyan Djalil announced that starting Thursday, Pertamina’s widely used low-octane gasoline (RON88), known as Premium, will sell at Rp 7,600 (61 cents) per liter — a drop from Rp 8,500 per liter. The sharp fall in global oil prices has made it possible for the government to no longer subsidize Premium and to lower the price at the pump, Sofyan said. He added that the government would now only subsidize diesel — the price of which has also dropped from Rp 7,500 per liter to Rp 7,250.
Financial Services
JCI Up as Foreign Selling Pressure Eases The Jakarta Globe 7th Jan 2015
Indonesian stocks rose on Wednesday, following two days of decline, as selling pressure from foreign investors dissipated. The Jakarta Composite Index gained 38.06 points, or 0.74 percent, to 5,207.12, regaining some of the 1.4 percent loss from Monday and Tuesday trading. More than 8.3 billion shares valued at a combined Rp 5.7 trillion ($449 million) changed hands on Wednesday on the Indonesia Stock Exchange (IDX).
Malaysian bank expansion halted in RI Jakarta Post 7th Jan 2015
No more Malaysian banks would be permitted to operate in Indonesia as long as Indonesian banks were unable to set up branches in that country, the Financial Services Authority (OJK) said on Tuesday. The decision came following a deal the OJK signed with Bank Indonesia (BI) and the Malaysian central bank, Bank Negara Malaysia, which aims to support ASEAN banking integration (ABIF). The OJK explained that the agreement came with reciprocal principles. “Until three of our banks open in Malaysia, no more of their banks will be allowed to operate here in Indonesia. They already have three here,” the OJK’s banking supervision chief executive Nelson Tampubulon said as quoted by kompas.com.
Indonesia: Insurers processing AirAsia crash claims Asia Insurance Review 7th Jan 2015
Insurers have begun processing claims in the crash of an Indonesia AirAsia aircraft last month and hope to identify the beneficiaries by the end of January, an official from Indonesia's financial regulator said yesterday. Speculation about insurance payments surfaced after Indonesia's Transportation Ministry said last week that the airline only had permission to fly the plane's Surabaya-Singapore route on Mondays, Tuesdays, Thursdays and Saturdays. The flight which crashed took off on Sunday, 28 December. Mr Firdaus Djaelani, chief executive for non-bank financial industry supervision at the Financial Services Authority (OJK), told reporters that the incident remained "claimable" despite the confusion over the scheduling permit. He urged insurance companies to complete claim payments for the 155 passengers on board AirAsia flight QZ8501 by the end of this month at the latest, reported The Jakarta Post.
Insurance premiums subject to GST, says Chua Free Malaysia Today 7th Jan 2015
Deputy Finance Minister Chua Tee Yong announced today that the Goods and Services Tax (GST) of six per cent would be imposed on all insurance premiums, except for life insurance. He told reporters this after attending a ‘Hand Holding’ programme for the retail sector designed to address questions pertaining to the GST which comes into effect on April 1. Chua said that the tax imposed on insurance premiums was not an “issue” as insurance premiums were currently subject to the sales and service tax (SST).
RI-KL agreement may be replicated for future bilateral ties Jakarta Post 6th Jan 2015
Indonesia’s financial regulator plans to use a recent agreement with its Malaysian counterpart as a model for future bilateral ones on the integration of financial services in ASEAN with Singapore and other countries in the region. In the recent agreement, Malaysia has finally agreed to ease restrictions imposed on Indonesian banks to operate in the neighboring country. Financial Services Authority (OJK) commissioner on banking supervision Nelson Tampubolon said the agreement with Malaysia was a “heads of agreement”, which could act as a model or an umbrella for future bilateral agreements with other ASEAN countries, including Singapore.
Indonesia: Airline "must pay" compensation to the next of kin of QZ8501 victims Asia Insurance Review 6th Jan 2015
AirAsia Indonesia is required to pay compensation to the next of kin of the 162 victims of Flight QZ8501 which crashed into the sea on 28 December while flying from Surabaya to Singapore, according to a senior Indonesian official. "An airline must pay compensation," Acting Air Transportation director-general Mr Djoko Murdjatmodjo said yesterday in response to a question on insurance payments. "The obligation to pay compensation lies with the airline," he said. Questions over compensation to families or next of kin of the QZ8501 victims have emerged after the Indonesian authorities said last Friday that the flight had not been authorised.
Indonesia: One in 5 Indonesians deemed financially literate Asia Insurance Review 5th Jan 2015
Only a fifth of Indonesia's population of 250 million people are financially literate, the head of the country's financial regulator has said. Mr Muliaman Hadad, the chairman of the Financial Service Authority (OJK), said only 21.84% of Indonesians have sufficient knowledge and understanding of financial matters, reported Jakarta Globe. Speaking at an event last month, he also said only about 60% of Indonesians, or roughly 150 million, have access to financial services. Some Indonesians refuse to open banks accounts, as they worry about losing their money if they deposit it with banks.
2014: Year of tight liquidity, compressed margin The Jakarta Post 5th Jan 2015
Tight liquidity and compressed margins took center stage in the domestic banking scene throughout 2014 as lenders went all out to guard their funding sources and to prevent their profitability from free falling. Executives at major banks interviewed by The Jakarta Post acknowledged that they saw funding sources dry up in 2014, unlike what happened in previous years. Bank Rakyat Indonesia (BRI) finance director Achmad Baiquni, one of the interviewed executives, said that the banking industry’s credit expansion had been seriously restrained by tight liquidity. “We cannot disburse loans without sufficient funds,” he said. The funds in question are difficult to get, as a result of a “tight-bias” monetary policy that has been set by Bank Indonesia (BI) since mid-2013.
New Indonesian Regulation May Boost Growth for Multifinance Firms in 2015 Jakarta Globe 5th Jan 2015
Indonesia’s multifinance companies could see further growth in financing this year as a new regulation allows the firms to enter new sectors. While the general outlook for multifinance companies in 2015 will not change much from last year, Suwandi Wiratno, the chairman of the Association of Multifinance Companies in Indonesia (APPI), said that the new regulation from the Financial Services Authority (OJK) could give an extra boost to the industry. “We will survive in 2015. Our hope is to book at least a 5 percent to 10 percent growth compared to 2014,” said Suwandi recently. The OJK’s new rule allows multifinance companies to offer new forms of financing, such as investment financing and working capital financing.
Investor numbers hoped to grow 30 percent in 2015 The Jakarta Post 2nd Jan 2015
The Indonesian Central Securities Depository (KSEI) expects the number of investors in the stock market to grow by up to 30 percent in 2015, as it plans to increase its campaign to target diverse new investors. As of Dec. 18, there were 363,746 investors in the bourse, a 13 percent increase from 320,000 in the same period last year, KSEI director Margeret M. Tang said recently. “We predict that the number of investors will increase by around 20 percent to 30 percent next year, because annual growth is pretty strong,” she said. KSEI plans to boost its advertising campaign on the benefits of stock-market investment aimed mainly at youngsters. Only 28,000, or 8 percent of the total number of investors, are under 25 years old — a figure that could still be improved.
Malaysia eases restrictions on RI banks The Jakarta Post 2nd Jan 2015
Malaysia has finally agreed to ease restrictions imposed on Indonesian banks to operate in the neighboring country as part of its commitment to the integration of financial services in ASEAN nations. The agreement — which highlights equal reciprocity and national treatment among the two countries — was signed by Bank Indonesia (BI) Governor Agus Martowardojo, Financial Services Authority (OJK) chairman Muliaman D. Hadad and Bank Negara Malaysia (BNM) Governor Zeti Akhtar Aziz in Jakarta. It is part of a larger ASEAN Banking Integration Framework (ABIF) that has been set for the 10 member countries within ASEAN — Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. According to Agus, at the same time BI has agreed to the ABIF guidelines that will make way for the subsequent endorsement of the ASEAN Framework Agreement on Services (AFAS) by each country’s finance minister.
3 parties sign agreement for Asean Banking Integration Framework The Star 1st Jan 2015
Bank Negara, Bank Indonesia and Otoritas Jasa Keuangan have signed a heads of agreement (HoA) that serves as a precursor to the conclusion of the Asean Banking Integration Framework (ABIF). The HoA outlines the areas that will be bilaterally implemented between Malaysia and Indonesia under the ABIF. The agreement sets out the definition of qualified Asean banks (QABs), which entails the presence of Malaysian and Indonesian banks in each other’s jurisdiction. In a statement, Bank Negara said the HoA also identified the market access and operational flexibilities that would be accorded to the banking institutions once conferred and established as a QAB in the respective jurisdiction. “For Indonesia and Malaysia, greater financial integration has the potential to significantly facilitate greater bilateral trade and cross-border investments between our respective countries, and thus contributes to growth that will be mutually reinforcing,” said Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz in a statement.
RI ‘in early stage’ of financial inclusion The Jakarta Post 31st Dec 2014
Indonesia is still in an early stage in terms of financial inclusion development, since many people still have no access to basic financial services, according to a survey. “At a time when Japan and Singapore develop very fast, Indonesia and countries like Bangladesh and India are still in the early stage of financial inclusion development,” MasterCard Asia Pacific Group Executive Global Product & Solutions T.V. Seshadri said as quoted by Antara in a statement on Tuesday. According to Seshadri, in a diverse region like Asia innovation, partnership and education about finance are important issues that will fill the gap between access and use of financial products as well as realize the benefits of financial inclusion. MasterCard revealed the development of financial inclusion in 30 developed and developing countries, including eight in the Asia-Pacific region: Bangladesh, China, India, Indonesia, Japan, Malaysia, the Philippines and Singapore.
Bank Mutiara to get more capital injection The Jakarta Post 31st Dec 2014
Japanese finance company J Trust Co. Ltd., the major shareholder of PT Bank Mutiara, is injecting the lender with more capital, up to Rp 1.3 trillion within the next four years. Earlier, the Japanese company had already given the bank Rp 300 billion and the remaining Rp 1 trillion will be provided in phases. In the first phase Rp 350 billion will be disbursed in the first quarter of 2015. The lender will then receive two payments of Rp 200 billion each in 2016 and in 2017. The last disbursement of Rp 250 billion will be made in 2018. “J Trust wants to strengthen the lender by injecting capital,” Bank Mutiara president director Ahmad Fajar said as quoted by Antara on Tuesday. The capital will be used to prepare supporting infrastructure for the expansion of the lender’s business in consumer finance, as well as in small and medium scale financing.
Health & Life Sciences
Indonesia's Mitra Keluarga to pre-market up to $300 mln IPO in end-Jan - IFR Reuters 6th Jan 2015
Indonesian hospital operator Mitra Keluarga plans to start pre-marketing its initial public offering (IPO) worth $200 million to $300 million in late January or early February, IFR reported on Wednesday, citing two people close to the deal. Morgan Stanley and UBS are the senior underwriters for the planned IPO while CIMB is the junior underwriter, said IFR, a Thomson Reuters publication.
Emerald of the Equator: Indonesia the Next Healthcare Frontier Forbes 29th Dec 2014
The “Emerald of the Equator” (Zamrud Khatulistiwa) or Indonesia is home to an estimated 252 million people living on 17,000 islands. It is famous for its rich history and hundreds of unique cultures and languages. Tourists come to Indonesia to witness the scenic beauty of Bali, flavor of coffee, adorable orangutans, curious komodo dragons, rain forests and spices. But Indonesia is transforming into more than exotic gourmet experiences and spa massages. The country has invested heavily in building its infrastructure and boldly implemented universal health coverage – Jaminan Kesehatan Nasional (JKN) – which was rolled out in January 2014.
ICT
Govt to set up national cyber agency The Jakarta Post 7th Jan 2015
The government is planning to establish an agency that would lead a campaign against cyber attacks, including those threatening financial institutions and basic infrastructure, such as cellular services and electricity, amid concerns that the country is “vulnerable” to such attacks. Communications and Information Minister Rudiantara and Coordinating Political, Legal and Security Affairs Minister Tedjo Edhy Purdijatno held a meeting with President Joko “Jokowi” Widodo at the Presidential Office on Tuesday to discuss the plan to form the body, which would be tasked to marshal an integrated cyber defense.
Waiver on Patent Fee to Boost Indonesian Innovation The Jakarta Globe 7th Jan 2015
Indonesia plans to waive all fees for filing of patent and copyright applications, as part of efforts to encourage greater domestic innovation and boost the country’s competitiveness. Muhammad Nasir, the minister for research, technology and higher education, said on Tuesday that researchers and inventors had been discouraged from registering their innovations with the government because of the high cost of filing a patent application. “Inventors have had to pay a lot for the intellectual property rights to their innovations, even as those products have yet to generate [money],” Nasir said during a visit to the Jakarta Globe newsroom in South Jakarta “How can we expect to drive more innovation under such conditions?”
Diaz Hendropriyono new Telkomsel commissioner The Jakarta Post 6th Jan 2015
Former State Intelligence Agency (BIN) chief AM Hendropriyono, who was also previously involved in President Joko “Jokowi” Widodo’s election campaign team as an advisor, has said that he did not intervene in the appointment of his son as a commissioner for the nation’s largest cellular operator, state-owned Telkomsel. Hendropriyono said the public was free to judge his son’s capability to be a commissioner for Telkomsel, a unit of Indonesia’s top telecommunications firm Telekomunikasi Indonesia (Telkom).
Infrastructure
Widodo Plans Land Bank to Quicken Indonesia Infrastructure Bloomberg 8th Jan 2015
Indonesian President Joko Widodo will start a land bank this year, turning his focus to accelerating infrastructure projects after freeing up budget funds in the biggest overhaul of the country’s fuel subsidy program. Widodo, known as Jokowi, will establish a land bank that will be jointly managed by the finance, public works and transportation ministries, Finance Minister Bambang Brodjonegoro said in an interview with Bloomberg TV Indonesia late yesterday. He’s also ordered agencies to complete all procurement for infrastructure projects this year by the end of March, the minister said.
Indonesia’s New Airfare Regulation Comes Under Fire The Jakarta Globe 8th Jan 2015
Indonesian Transportation Minister Ignasius Jonan’s move to set a price floor for airfares, citing ostensible safety concerns, has drawn a wave of condemnation, with experts and lawmakers calling the decision irrelevant and unnecessary. The minister’s adviser, Hadi Djuraid, announced on Tuesday that Jonan will issue a regulation that bar low-cost carriers such as AirAsia from offering tickets more than 40 percent below the price offered by mainline carriers. “In the future, [budget carriers] can no longer offer cheap tickets, like say Rp 50,000 [$3.93]. The limit will be set at 40 percent [of prices set by non-budget airlines],” Hadi said as quoted by Detik.com. “We are still awaiting approval from the ministry of justice.
TransJakarta Pledges to Be Subsidy-Free by 2019 After Fresh Business Plan The Jakarta Globe 7th Jan 2015
Bus operator TransJakarta has said the company will no longer depend on subsidies from the Jakarta city government to pay for operational and maintenance costs from as early as 2019. The public transportation operator, which prior to becoming its own company last year was a unit within the Jakarta administration, has spent trillions of rupiah since the program began in 2004. Last year, the city subsidy for the program, whose buses run on dedicated lanes, was more than Rp 830 billion ($65 million), a sharp increase from Rp 468 billion the previous year.
Hopes for Shipbuilding Sail on the Horizon The Jakarta Globe 1st Jan 2015
Indonesia’s shipyards may see a silver lining to what has been a cloudy past as the government’s focus on the maritime sector is reinforced by steps to improve the national logistics system. President Joko Widodo has declared his intention to develop the long-neglected maritime sector. Many parties in the shipping industry and related businesses are confident that the time has finally come for Indonesia to redefine its logistics systems to provide greater opportunities for shipping companies while at the same time lowering the cost of shipping goods. The first essential step, say industry actors, is for the government to free the shipyard business from the tariffs that add 25 percent to production costs.
It’s Now or Never for Infrastructure in 2015 The Jakarta Globe 29th Dec 2014
Pressure is building on the Indonesian economy as it enters 2015. Increasingly unable to compete on export markets, the arrival of the Asean Economic Community at the end of this year will further open the domestic market to competition from more efficient regional peers. Fixing the country’s pathetically poor infrastructure is essential if the economy is going to overcome these challenges. This is it: the make-or-break year for President Joko Widodo in his push to develop the country’s infrastructure. Apart from projects worth Rp 150 trillion ($12 billion) in the 2015 state budget, the government also plans to offer another 43 infrastructure projects worth $52 billion to private investors, providing a litmus test for the new president’s ability to meet his goal of connecting the cities and islands across the archipelago.
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