Indonesia Update: MCIT Circular on Online Marketplaces

Indonesia Update | February 16, 2017
Authors: Kim Yaeger, Artha Sirait and Ian Saccomanno
 
LOOKING AHEAD
 
 
The Council and the American Indonesian Chamber of Commerce will be hosting a luncheon with His Excellency Budi Bowoleksono, Ambassador of Indonesia to the United States on February 27 in New York. Please click here to register or contact mini@aiccusa.org for further information. 
 
THE COUNCIL'S TAKE
 
 

MCIT Circular on Online Marketplaces

The Ministry of Communication and Information Technology (MCIT) has issued Circular No. 5 of 2016  (available in Bahasa Indonesia) in an attempt to regulate the growth of e-commerce platforms that host third-party sellers. In its press release (available in Bahasa Indonesia), MCIT stated that this circular is in the spirit of the government’s national e-commerce roadmap, which contains 31 initiatives that aim to make Indonesia the biggest digital economy in Southeast Asia by 2020. This circular also stems from Law No. 11 of 2008 on Electronic Information and Transactions and its amendment, Law No. 19 of 2016.

The circular targets e-commerce providers and merchants, introducing standardized obligations and responsibilities such as: 

  • setting up a reporting mechanism on banned and prohibited content
  • required follow-up procedure on the reported banned and prohibited content within the following timeframe:
    • one day after the submission of a report, if the banned content is required to be deleted immediately
    • seven days after the submission of a report, for any banned content which differs from the content set out in the above point; and
    • 14 days after the submission of a report, for any content which relates to the infringement of intellectual property rights.

The circular was issued on December 30 and came into effect on the same day.

Jakarta’s Gubernatorial Election Update

On February 15, Indonesians voted in 101 regional elections across the archipelago, but the spotlight was on Jakarta. The special region’s incumbent governor, Basuki Tjahaya Purnama (known as Ahok) was running against two candidates, Agus Harimurti Yudhoyono, the eldest son of former President Susilo Bambang Yudhoyono and Anies Baswedan, a former Education Minister who served in the Jokowi administration from 2014 to 2016, he has since been replaced by Muhadjir Efendi. The incumbent governor is perceived to represent the minorities in Jakarta and is currently facing blasphemy charges, hence why the election has been perceived as a barometer of Indonesian tolerance. The Jakarta governorship is also seen as one of the nation’s most powerful political positions, having catapulted President Joko “Jokowi” Widodo from the governor’s position to presidency. Though the official count will not be released until the end of this month, unofficial counts carried out by various research companies and media organizations have the incumbent governor leading with 40-43 percent, followed Anies Baswedan coming in second at 39 percent. With unofficial results suggesting he is out of the race, Agus Harimurti Yudhoyono has conceded defeat at the end of the election day. The Jakarta gubernatorial administration law requires a runoff election in the event no one candidate wins more than 50 percent of votes, in such case the runoff election will likely take place on April 19.

 
IN THIS UPDATE
 
 
Regional Affairs
Singapore firms eye Indonesia for growth
ASEAN, Canada to maintain close ties after celebrating 40 years
Jokowi’s Australia visit back on track after tensions ease
Indonesia-US want cooperation based on bilateral agreements
Singapore and Indonesia agree on third maritime border treaty
SE Asia Stocks-Rise after Trump-Abe meet; Indonesia hits 3-mth high

National Affairs
Vice president expects two rounds in Jakarta election
Tax Amnesty Retribution Fee at Rp710bn in Third Period
Palembang to be developed into key industrial area
Key things to know about Indonesia's regional elections on Wednesday
Government to issue new package on agrarian reform

Defense & Security
Defense Ministry shows off locally made weapons

Economics
Indonesia to Sell $5.5 Bln Bonds to Global Markets This Year : Official
Indonesian trade posts $1.4 billion surplus
Central Bank Seen Holding Key Rate, Hoping Past Cuts Can Aid Growth
IDX targets 110,000 new investors in 2017
Economists Expect Bank Indonesia to Stand Pat on Benchmark Rate
Indonesia sells 18.43 trln rupiah bonds at auction, above target
IDX mulls changing pre-closing trading rule
Moody's Outlook Upgrade Promises Robust Future for Investors: Analysts

Energy
Jokowi digs in heels over 100% electrification deadline
House preparing bill on special energy holding company
Indonesia Sets New Tax Rates for Mineral Exports
Association doubts over gross-split sliding scale
Renewable energy development ruling is setback: Expert
World Bank gives Indonesia $55.25m to develop geothermal power

Financial Services
Financial Services Regulator to Allow On-Balance-Sheet Lending for Fintechs
Fintech Talk: How fintech shapes millennials’ financial behavior
OJK Disseminates Regulations on Fintech and Pawnshop
The OJK Issues New Regulation Good Corporate

Food & Agriculture
Indonesia suspends importation of Indian buffalo meat
Indonesia set to export 100,000 tons of rice in 2017
Foreign oranges put Indonesia's own in tight squeeze

Health & Life Sciences
Business watchdog sees unhealthy competition in pharmacy industry
Combatting Malnutrition
Falling through the cracks
Greenpeace Indonesia Launches Air Pollution Monitoring App

ICT
Indonesia urges Facebook to open local office
House meddles in interconnection rate polemics
Indonesia sees long but possible path to developing own satellites

Infrastructure
Jokowi wants North Sumatra to become international hub
Indonesian high-speed rail project stalls, waiting on land-
Jokowi to Inaugurate Six Mega-Projects in Bangka Belitung
W Java to build and renovate 600 bridges
President calls for acceleration of bitung economic zone development
Soekarno-Hatta Airport Third Runway Project to Start in April

Manufacturing
Motorcycle Sales Rise in January, Manufacturers Confident of a Rebound
Govt to Offer More Micro Loans for Agriculture, Fishery, Manufacturing Sectors
Xiaomi starts manufacturing its devices in Indonesia - Business - Chinadaily.com.cn
Company to construct factory in Palu economic zone
 
ARTICLE CLIPS
 
 
Regional Affairs

Singapore firms eye Indonesia for growth The Straits Times 16th Feb 2017
Indonesia has jumped to top spot as the most attractive overseas destination for Singapore companies looking to spread their wings. For many companies here, it is a no brainer, given the vast size of the market of 250 million people sitting right at Singapore's doorstep.

ASEAN, Canada to maintain close ties after celebrating 40 years The Jakarta Post 15th Feb 2017
ASEAN and Canada have celebrated its 40th year of relations, pledging to preserve the partnership to maintain regional peace, stability, security, development and welfare. Marie-Louise Hannan, Ambassador of Canada to ASEAN, said her country would continue to expand its regional engagement in areas that support ASEAN’s community building objectives, contributing to the fostering of peace, security and prosperity.

Jokowi’s Australia visit back on track after tensions ease The Jakarta Post 14th Feb 2017
President Joko “Jokowi” Widodo is likely to make a much-awaited state visit to Australia at the end of this month, government officials say, reaffirming Indonesia’s commitment to maintaining good bilateral ties despite a rocky patch in its relationship with its neighbor earlier this year. The upcoming state visit is aimed at improving the “already good relations” between the two countries, Foreign Minister Retno LP Marsudi asserted.

Indonesia-US want cooperation based on bilateral agreements The Jakarta Post 14th Feb 2017
Industry Minister Airlangga Hartarto has said Indonesia will try to strengthen bilateral cooperation with the United States to boost trade between the two countries. “For Indonesia, America is one of our strategic markets. Therefore, trade between the two countries should be increased,” Airlangga said in a statement after meeting with US Ambassador to Indonesia Joseph R. Donovan Jr. on Monday.

Singapore and Indonesia agree on third maritime border treaty Channel NewsAsia 13th Feb 2017
After 10 rounds of discussions over three years, Singapore and Indonesia have agreed on a third maritime border treaty. The two countries’ foreign ministers on Friday (Feb 10) exchanged the Instruments of Ratification for the treaty which will soon be registered with the United Nations.

SE Asia Stocks-Rise after Trump-Abe meet; Indonesia hits 3-mth high Reuters 13th Feb 2017
Southeast Asian stock markets rose on Monday, tracking Asian peers, as investor concerns eased after U.S. President Donald Trump set aside tough campaign rhetoric over security and jobs in a smooth meeting with Japanese Prime Minister Shinzo Abe. Also boosting sentiment were Trump's change of tack to agree to honour the "one China" policy, and his tax reform plans.

National Affairs

Vice president expects two rounds in Jakarta election The Jakarta Post 15th Feb 2017
Vice President Jusuf Kalla expects Jakarta’s gubernatorial election to go on to a second round, predicting that none of the three candidate pairs will garner the 50 percent of votes needed to win outright. Kalla, a senior Golkar Party politician, delivered the statement after casting his own vote for the capital, which is among 101 regions holding  elections on Wednesday.

Tax Amnesty Retribution Fee at Rp710bn in Third Period Tempo 14th Feb 2017
The third period (January-March) of tax amnesty program has only seen Rp710 billion in retribution fees paid, far smaller compared to that of the preceding periods of Rp103.2 trillion. In the first period (July-September 2016), as many as Rp97.2 trillion paid in retribution fee, whereas that of the second period (October-December 2016) was Rp6 trillion. Director General of Tax Ken Dwijugiasteadi said that his office does not only target the SMEs in the last period of tax amnesty.

Palembang to be developed into key industrial area Antara News 14th Feb 2017
South Sumatra province will prioritize the development of Palembang city into an industrial area as a Special Economic Zone is being established in Tanjung Api-Api, Banyuasin, Permana, head of the provinces trade office, said. The city administration is working to establish the 300-hectare Gandus Industrial Area, he said on Monday.

Key things to know about Indonesia's regional elections on Wednesday The Straits Times 13th Feb 2017
Indonesians will head to the polls on Wednesday (Feb 15) for the country's second simultaneous election since independence in 1945. Before the first such election on Dec 9, 2015, Indonesia had never held elections with so many areas being contested at the same time. The decision to hold these elections on the same day is aimed at cutting costs and improving efficiency. The third and final simultaneous election will be held next year.

Government to issue new package on agrarian reform The Jakarta Post 10th Feb 2017
The government is preparing a new economic package to alleviate poverty and reduce economic and social disparity through agrarian reform, head of Presidential Staff Teten Masduki has said. Part of the policy would see the collection of progressive taxes from those who owned idle plots of land, he noted. “Poverty and social disparity in Indonesia are worsening,” said Teten, as reported by tempo.co on Friday.

Defense & Security

Defense Ministry shows off locally made weapons The Jakarta Post 14th Feb 2017
The Defense Ministry showcased 15 newly launched items of defense equipment produced by local manufacturers on Tuesday, which will be used to support primary weapons defense systems for the Indonesian Military (TNI). The locally engineered products consist of seven items for the Navy, four for the Army and four for the Air Force; all of which were the result of the government’s Rp 86 billion (US$6.45 million) defense industry development program throughout last year.

Economics

Indonesia to Sell $5.5 Bln Bonds to Global Markets This Year : Official Jakarta Globe 16th Feb 2017
Indonesia will sell $5.5 billion worth of bonds to global markets this year, a finance ministry official said on Thursday, adding that they will be yen- and euro-denominated conventional bonds, as well as U.S.-dollar Islamic bonds.

Indonesian trade posts $1.4 billion surplus The Jakarta Post 16th Feb 2017
Indonesian trade posted a US$1.4 billion surplus in January, a drastic surge from only $10 million in January 2016, the Central Statistics Agency (BPS) has said. “This is the highest surplus since January 2014,” BPS head Suhariyanto said during a press conference in Jakarta on Thursday.

Central Bank Seen Holding Key Rate, Hoping Past Cuts Can Aid Growth Jakarta Globe 15th Feb 2017
Indonesia's central bank is expected to hold its benchmark interest rate steady again on Thursday and rely on last year's rate cuts to help boost economic growth. All 20 analysts in a Reuters poll predicted Bank Indonesia (BI) will keep the 7-day reverse repurchase rate at 4.75 percent, where it has been since October, despite economic growth coming in below expectations.

IDX targets 110,000 new investors in 2017 The Jakarta Post 14th Feb 2017
The Indonesia Stock Exchange (IDX) has set a target to attract 110,000 new investors by the end of 2017, a 20 percent increase from the 540,000 investors recorded late last year. The target was similar to last year's number, which stood at 100,000 people, said IDX director Nicky Hogan on Tuesday.

Economists Expect Bank Indonesia to Stand Pat on Benchmark Rate Jakarta Globe 14th Feb 2017
Economists expect Bank Indonesia to maintain its benchmark rate at 4.75 percent during this week's policy meeting, amid rising inflation and uncertainties in the global economy. Economists at Bank Mandiri, Bank Central Asia, Bank Permata, Bank Danamon Indonesia, DBS Bank, Samuel Asset Management and the SKHA Institute for Global Competitiveness (SIGC) agree that the central bank should keep its seven-day reverse repo rate unchanged.

Indonesia sells 18.43 trln rupiah bonds at auction, above target Reuters 14th Feb 2017
The T-bills maturing in May 2017 had a weighted average yield of 5.05558 percent, higher than 5.02014 percent at the previous auction on Jan. 31. The T-bills which will mature in February 2018 has a weighted average yield of 5.98448 percent, higher than 5.90243 percent at the last auction.

IDX mulls changing pre-closing trading rule The Jakarta Post 10th Feb 2017
The Indonesia Stock Exchange (IDX) is weighing options on changing the pre-closing trading regulation in a bid to enhance transparency. Pre-closing trading occurs 10 minutes before the close of each trading day or at between 3:50 p.m. and 4 p.m. During the period, investors are still able to input their stock offers and demands to be calculated by the bourse's system and to be included on the Jakarta Composite Index (IDX).

Moody's Outlook Upgrade Promises Robust Future for Investors: Analysts Jakarta Globe 9th Feb 2017
Moody's Investors Service's decision to upgrade its credit outlook on Indonesia to "positive" from "stable" late on Wednesday (08/02) provided investors with a much-needed assurance of the country's long-term prospect. A better outlook indicates a possible rating upgrade that allows the country to attract more foreign investors by selling government bonds at lower rates.

Energy

Jokowi digs in heels over 100% electrification deadline The Jakarta Post 15th Feb 2017
President Joko “Jokowi” Widodo remains adamant on his plan to supply electricity to all parts of the country by the end of his term in 2019. “The instruction from the President is that we have to achieve an electrification ratio of 100 percent in 2019,” Energy and Mineral Resources Minister Ignasius Jonan said on Wednesday.

House preparing bill on special energy holding company The Jakarta Post 13th Feb 2017
Gus Irawan Pasaribu, the chairman of House of Representatives Commission VII overseeing energy and mineral resources, has said the House is currently drafting a bill that will serve as the legal basis for a special energy holding company for state-owned enterprises in the energy sector. Gus said the holding company would coordinate at least four state-owned enterprises in the energy sector.

Indonesia Sets New Tax Rates for Mineral Exports Jakarta Globe 13th Feb 2017
Indonesia has set export taxes of up to 7.5 percent for semi-processed metals including lead, zinc, iron and copper concentrate, the finance ministry said on Monday (12/2), with rates depending on progress companies make in developing smelters. "The more advanced the physical development of processing facilities, the lower the export tax rate that will be applied," the ministry said in a statement.

Association doubts over gross-split sliding scale The Jakarta Post 13th Feb 2017
The Indonesian Employers Association (Apindo) has expressed doubt over the government’s newly-launched gross-split sliding scale for the oil and gas upstream industry in its ability to apply to exploration industry contracts. The contractors for the exploration industry are apparently not interested in the new scheme, as there is uncertainty over whether it could actually benefit them, Sammy Hamzah, Apindo chairman for energy and mineral resources, said on Sunday.

Renewable energy development ruling is setback: Expert The Jakarta Post 10th Feb 2017
An energy expert has criticized the government for discouraging the development of renewable energy with the issuance of the latest regulation by Energy and Mineral Resources Minister Ignasius Jonan. Yunus Daud of the University of Indonesia said Energy and Mineral Resources Ministerial Regulation (Permen) No 12/2017 on the utilization of renewable energy for electricity had discouraged investors from putting their money in the sector.

World Bank gives Indonesia $55.25m to develop geothermal power The Jakarta Post 10th Feb 2017
The World Bank’s board of executive directors has approved $55.25 million in grants to support geothermal energy projects in Indonesia with the aim to facilitate investment in geothermal power generation. “Insufficient energy holds back Indonesia’s growth potential and limits the future opportunities of millions of Indonesians. These grants will help Indonesia develop its abundant geothermal power potential,” World Bank country director for Indonesia Rodrigo Chaves said in a statement.

Financial Services

Financial Services Regulator to Allow On-Balance-Sheet Lending for Fintechs Jakarta Globe 15th Feb 2017
The Financial Services Authority, Indonesia's financial services regulator known as the OJK, is preparing a regulation that would allow local financial technology companies to lend money directly to customers to provide more financing choices for the public, its senior officials said on Tuesday (14/02).

Fintech Talk: How fintech shapes millennials’ financial behavior The Jakarta Post 14th Feb 2017
When you find yourself relaxing at a café, shopping center or urban recreational venue, then the common sight you will most likely see are young people busy fiddling with their smartphones; chatting via text message, then taking selfies to upload to multiple social media accounts. This is probably an accurate rendering of the habitual lifestyle of that demographic often referred to as urban-middle-class-millennials.

OJK Disseminates Regulations on Fintech and Pawnshop Tempo 14th Feb 2017
The Financial Services Authority (OJK) disseminated two regulations on financial technology lending services and on pawnshops on Tuesday, February 14, 2017. OJK deputy commissioner for non-banking supervision Dumoly F. Pardede, said that the OJK supports the development of financial technology (Fintech) lending services in Indonesia.

The OJK Issues New Regulation Good Corporate Baker McKenzie 16th Feb 2017
On 23 December 2016 the Financial Services Authority (OJK) issued Regulation 73/POJK.05/2016 on Good Corporate Governance (GCG) for Insurance Companies (Regulation 73). Regulation 73 became effective on 28 December 2016. The first specific regulation on GCG for insurance companies was Regulation of Minister of Finance No. 152/PMK.010/2012 on Good Corporate Governance for Insurance Companies (Regulation 152). On 8 April 2014, the OJK issued a new regulation on GCG for Insurance Companies, that is, OJK Regulation No. 2/POJK.05/2014 (Regulation 2).

Food & Agriculture

Indonesia suspends importation of Indian buffalo meat ABC News 16th Feb 2017
The Indonesian Government has suspended the importation of Indian buffalo meat following a ruling by the nation's Constitutional Court, but there are many who believe the ban will not last. Last week the court ruled that meat from countries prone to foot and mouth disease (FMD) could only be imported under emergency circumstances.

Indonesia set to export 100,000 tons of rice in 2017 The Jakarta Post 14th Feb 2017
The nation is set to export some 100,000 tons of rice this year as the commodity’s production is estimated to reach a surplus, an official has said. Mat Syukur, an expert staffer at the Agriculture Minister’s division for trade and international affairs, said on Tuesday that the export plan would not affect domestic supply.

Foreign oranges put Indonesia's own in tight squeeze The Jakarta Post 11th Feb 2017
Inflows of imported oranges have put the country’s own exotic orange variants in a tight squeeze, further jeopardizing local businesses that are already facing a hard time against their foreign counterparts. The saying “don’t judge a book by its cover” does not apply to the sales of Mandarin oranges at Kopro Market in Grogol, West Jakarta.

Health & Life Sciences

Business watchdog sees unhealthy competition in pharmacy industry The Jakarta Post 13th Feb 2017
Business Competition Supervisory Commission (KPPU) chairman Syarkawi Rauf has seen a trend of unhealthy competition in the pharmacy industry. He said that 70 percent of the medicine market, worth around Rp 56 trillion (US$4.2 billion), was controlled by only a few companies. Unhealthy competition among the pharmacy companies has sparked illegal practices in which the industry directly asks doctors to recommend that their patients use their products, thus forcing patients to buy certain brands of medicine.

Combatting Malnutrition Tempo 15th Feb 2017
The Nusantara Sehat program was initiated in 2015. This is a replication of the Pencerah Nusantara program run by the office of the president's special envoy for the millennium development goals (KUKPRI-MDGs). Like its sister program, Nusantara Sehat is aimed at improving the quality of primary healthcare services in Indonesia, namely at the puskesmas and integrated healthcare posts (posyandu). Diah Saminarsih, special staff at the health ministry, said the program is expected to reach out to between 1,000 to 1,500 puskesmas by the end of 2019.  Like the previous program, which aimed at pushing Indonesia to achieve the MDGs, Nusantara Sehat is designed to support the national sustainable development goals (SDGs) comprising 17 targets, among them achieving good health and well-being for our citizenry, as well as eliminating starvation and providing better nutrition. (*)

Falling through the cracks Inside Indonesia 13th Feb 2017
Millions of Indonesians are unable to access the new Jaminan Kesehatan Nasional (National Health Insurance) or JKN simply because they are unable to register. By relying on the inflexible civil registration system that requires citizens to register through their family, the JKN often fails to cover those who need it the most, solely as a result of poor administration. 

Greenpeace Indonesia Launches Air Pollution Monitoring App Jakarta Globe 13th Feb 2017
Environmental activist group Greenpeace Indonesia launched a mobile application on Tuesday (14/02) that can be used to monitor air quality. The app, known as UdaraKita, which translates to "our air," allows users to determine air pollution levels in the greater Jakarta area and several other cities in Indonesia. Despite seemingly low air pollution levels, fine particulate matter of 2.5 microns in diameter and less is known as the small killer and considered extremely dangerous, as it can cause serious respiratory diseases and even lung cancer.

ICT

Indonesia urges Facebook to open local office The Jakarta Post 15th Feb 2017
The Communications and Information Ministry has urged Facebook to open a proper local office to enable it to adequately tackle complaints about fake news and negative content that spreads through the social media platform. Minister Rudiantara conveyed the request during a meeting with the Asia Pacific-based delegation led by Facebook’s head of global policy management, Monika Bickert, on Tuesday, saying that the existence of an official office in Indonesia would enable the firm to better respond to content complaints and improve communication with the government.

House meddles in interconnection rate polemics The Jakarta Post 14th Feb 2017
The “Interconnection Rate” working group led by the House of Representatives’ Commission I, overseeing telecommunications, foreign affairs and defense, has held its first hearing on the hot-button issue of possible interconnection rate cuts. At its first meeting with the group, the Telecommunications Regulatory Body (BRTI) received several recommendations regarding its plan to go forward with changing the rates.

Indonesia sees long but possible path to developing own satellites The Jakarta Post 13th Feb 2017
Indonesia is taking baby steps to reduce its dependence on foreign telecommunications satellites through technology-transfer arrangements and micro-satellite development. In fact, more and more Indonesian engineers have been trained abroad to master the technology. A 27-year-old engineer from state-owned telecommunications company Telkom, Angga Risnando, for example, has learned the art of making the Telkom 3S satellite directly from Cannes-based satellite manufacturer Thales Alenia Space (TAS).

Infrastructure

Jokowi wants North Sumatra to become international hub The Jakarta Post 16th Feb 2017
President Joko “Jokowi” Widodo has instructed his ministers to prepare North Sumatra to become an international hub because geographically, the province is strategically positioned in the international shipping line.

Indonesian high-speed rail project stalls, waiting on land- Nikkei Asian Review 15th Feb 2017
A more than $5 billion high-speed rail project in Indonesia is stuck in the station amid difficulty obtaining land along the planned route from Jakarta to Bandung, potentially derailing Chinese financing for the endeavor.

Jokowi to Inaugurate Six Mega-Projects in Bangka Belitung Jakarta Globe 14th Feb 2017
President Joko "Jokowi" Widodo on Tuesday (14/02) is going to inaugurate six mega-projects in Bangka Belitung to accelerate the maritime infrastructure development in the region, the province's governor has said. "With President Jokowi, we will officiate six infrastructure projects in Bangka and Belitung islands," Governor Rustam Effendi said in Pangkalpinang on Monday.

W Java to build and renovate 600 bridges Antara News 14th Feb 2017
Governor of West Java Ahmad Heryawan has said that his administration plans to build and renovate a total of 600 bridges this year. "Hopefully, we can build between 500 and 600 bridges in 2017, he said in a statement. West Java has allocated Rp25 billion in funds in its local budget for the purpose.

President calls for acceleration of bitung economic zone development Antara News 14th Feb 2017
President Joko Widodo has called for the acceleration of Bitung Port development into a Special Economic Zone (KEK) that would serve as an entry point to the eastern part of Indonesia. President Joko Widodo, or Jokowi as he popularly known, made his remark in a closed meeting on the evaluation of national strategic projects and priority program in North Sulawesi Province here on Tuesday.

Soekarno-Hatta Airport Third Runway Project to Start in April Tempo 13th Feb 2017
Soekarno-Hatta Airport Third Runway Project to Start in AprilState-owned operator PT Angkasa Pura II (Persero) plans to break ground on the third runway of Soekarno-Hatta International Airport in April. Angkasa Pura II president director Muhammad Awaluddin said that the runway of 3,000 m in length and 60 m in width will start operations in mid-2018 in a bid to increase the number of aircraft movements to 114 per hour.

Manufacturing

Motorcycle Sales Rise in January, Manufacturers Confident of a Rebound Jakarta Globe 14th Feb 2017
Domestic motorcycle sales rose 14 percent in January from the same month last year, boosted by demand from islands outside Java, where household income was on the rise thanks to recovery in global commodities price and government infrastructure spending. The manufacturers under Indonesian Motorcycle Industry Association (AISI) sold 473,879 motorcycles last month, compared to 416,263 in the same month a year ago, the association's data showed.

Govt to Offer More Micro Loans for Agriculture, Fishery, Manufacturing Sectors Jakarta Globe 13th Feb 2017
The Indonesian government plans to disburse more of its loans for micro, small and medium enterprises, known as KUR, to productive sectors such as agriculture, fishery and manufacturing this year. The above sectors are thought to be offering added values to the economy, a senior government official said on Thursday (09/02).

Xiaomi starts manufacturing its devices in Indonesia - Business - Chinadaily.com.cn China Daily 13th Feb 2017
Xiaomi Corp has started manufacturing its devices in Indonesia, as the Chinese smartphone vendor accelerates expansion in Southeast Asia. The move came after it posted an initial success in India, the world's fastest-growing major smartphone market. The Beijing-based company said in a statement on Friday that it is partnering with PT Erajaya Swasembada Tbk, PT Sat Nusapersada Tbk, and TSM Technologies to manufacture its smartphones in Indonesia.

Company to construct factory in Palu economic zone The Jakarta Post 9th Feb 2017
One company has received a principle license for foreign investment from the Investment Coordinating Board (BKPM) to open a factory in the Special Economic Zone (KEK) in Palu, Central Sulawesi. The president director of Bangun Palu Sulteng Ltd, which manages the KEK, confirmed that Sofi Agro Industries Ltd would invest in the Palu KEK.