Indonesia Update: New OJK Board of Commissioners

Indonesia Update | June 8, 2017
Authors: Kim Yaeger, Artha Sirait, Ian Saccomanno and Karin Silitonga
 
LOOKING AHEAD
 
 
  • June 13, 2017 (8:00 AM - 9:30 AM EDT) - U.S.-Indonesia Trade & Investment Framework Agreement: Private Sector Consultation: The U.S. Government and the Government of Indonesia welcome private sector participation during the upcoming Trade and Investment Framework Agreement Talks in Washington, D.C. Event details can be found here.
  • June 13, 2017 (4:30 PM - 5:30 PM EDT) - Roundtable with Tom Lembong, Chairman of the Indonesian Investment Coordinating Board: Please join the US-ASEAN Business Council and the U.S. Chamber of Commerce for a roundtable with His Excellency Thomas Lembong, the Chairman of the Indonesian Investment coordinating Board, in Washington, D.C. Event details can be found here.
  • June 14, 2017 (3:30 PM - 4:30 PM EDT) - Debrief with USTR on the U.S.-Indonesia Trade and Investment Framework Agreement (TIFA): Please join the US-ASEAN Business Council for a debrief following the TIFA discussions with Barbara Weisel, Assistant U.S. Trade Representative for Southeast Asia and the Pacific and Christine Brown, Director for Southeast Asia & Pacific Affairs, from USTR. Event details can be found here.
  • June 21-23, 2017 - Thailand Business Mission: The US-ASEAN Business Council is now registering executives for its 2017 Thailand Business Mission. Please note that the deadline for registration and submission of materials is Wednesday, June 7. A pre-mission planning call featuring U.S. Ambassador Glyn Davies will take place on June 12/13. Click here to register. Contact Matt Solomon at msolomon@usasean.org with any questions.
  • July 31, 2017 - ASEAN Secretariat Business Mission: The Council is now registering senior executives for its annual ASEAN Secretariat Business Mission, taking place on July 31 in Jakarta. Click here to register. Registration deadline is July 17. For more information, please contact Matt Solomon at msolomon@usasean.org or Mario Masaya at mmasaya@usasean.org.

  • Save the Date: July 25-27, 2017 - Philippines Business Mission. Please save the date for the annual business mission to the Philippines. Invitation and registration details to follow. Please contact Riley Smith at rsmith@usasean.org for more information or to express interest.
  • Save the Date: August 1-3, 2017 - Indonesia Business Mission. Please save the date for the annual business mission to Indonesia. Invitation and registration details to follow. Please contact Artha Sirait at asirait@usasean.org for more information or to express interest. 
 
THE COUNCIL'S TAKE
 
 

New OJK Board of Commissioners

On June 8, a new OJK Board of Commissioners was appointed following confirmation hearings conducted by the House of Representatives’ Commission XI, which supervises fiscal policy and the financial sector. The new commissioners are expected to be sworn in by July 20. Under the 2011 OJK Law, the structure of OJK Board of Commissioners consists of seven selected commissioners and two ex officio commissioners appointed by the Ministry of Finance and the Board of Governors of Bank Indonesia. The new OJK Board of Commissioners are: Wimboh Santoso (Chairman Position), Nurhaida, Tirta Segara, Riswinandi, Heru Kristiyana, Hoesen, and Ahmad Hidayat. The House of Representatives’ Commission XI chose to forego the recommendation made by President Joko “Jokowi” Widodo to adopt the specialization system and assign specific positions to each commissioner. Rather, commissioners were elected without specialization, and the position and duties of each commissioner will be determined internally by OJK.

The Establishment of the National Cyber and Encryption Agency (BSSN)

On May 23, President Joko “Jokowi” Widodo officially established Indonesia’s national cyber agency through President Regulation No. 53 of 2017, formally establishing Indonesia’s national cyber agency, by the name of Cyber Body and National Encryption Agency (Badan Siber dan Sandi Negara - BSSN) which was first proposed in 2015. BSSN will operate under the purview of the Coordinating Ministry of Political, Legal, and Security Affairs with the head of BSSN, who has yet to be appointed, reporting to Coordinating Minister General (Ret.) Wiranto. Structurally, the head of the BSSN will be supported by a Main Secretariat; Deputy of Identification and Detection; Deputy of Protection; Deputy of Monitoring and Restoration; and Deputy of Supervision and Control – all of whom will be appointed in the next four months by the President based on the recommendation of the Coordinating Minister.

With the establishment of BSSN, all of the tasks and functions in relation to the security of: information; the utilization of telecommunication network based on internet protocol; network and telecommunication infrastructure, at the Ministry of Communication and Information Technology, as well as all of the tasks and functions at the National Encryption Agency are now transferred to BSSN. As soon as the organizational structure is finalized which is said to be in the next four months, BSSN will be responsible to detect, prevent, and address possible threats to Indonesia’s cybersecurity, though no clear mechanism has been provided.

Indonesia's S&P rating upgrade

Standard and Poor’s Global Ratings (S&P) recently raised Indonesia’s sovereign credit rating to investment grade, lifting the rating from BBB+ to BB-. The agency’s long-awaited upgrade provided a window of opportunity for Indonesian companies to raise funds and was the only major debt rating agency that rates Indonesia’s sovereign bonds at one level below investment grade. The other rating agencies such as Moody’s and Fitch have maintained investment-grade ratings for Indonesia’s sovereign credit for more than five years. The increased rating is a result of several factors, recognizing the efforts that the Indonesian government has taken to stabilize the country’s public finances, the effective tax amnesty program with at least 745,000 taxpayers declaring more than USD330 billion of assets as of March 2017, and the sustained economic growth within the country amidst external shocks. This increased rating will open more investment opportunities in Indonesia, leading to shifts from portfolio investment to direct investment.

President Jokowi has also taken strides to capitalize on this increased rating, as he told his ministers to not issue new regulations that can hinder potential investments. Additionally, President Jokowi made plans to examine 23 regulations pertaining to restrictions on import and export, as well as to explore opportunities of moving restrictions from a quota-based system to a tariff-based system. In response to the new rating, the Investment Coordinating Board (Badan Koordinasi Penanaman Modal - BKPM) estimates an increased USD10 billion in foreign direct investments in the country over the next two years. Bank Indonesia Governor Agus Martowardojo also stated that following the new rating by S&P, the amount of capital inflow has reached IDR108 trillion, a jump from IDR62 trillion in the same period last year.

Indonesia’s New Regulation Promoting Local Pharmaceutical and Medical Device Industries

Indonesia’s Health Minister, Nila Moeloek, signed Regulation 17/2017 (available in Bahasa Indonesia) on February 27, 2017, which will promote development in the nation’s pharmaceutical and medical device industries. The Regulation regarding Pharmaceutical and Medical Devices Industries Development Action Plans is non-binding but presents the government’s aims to:

  • Promote both industries so that they can independently produce medicines, raw materials and medical equipment to fulfil national needs and for export purposes.
  • Establish, preserve and apply pharmaceutical product and medical device standards.
  • Increase the use of local pharmaceutical products and locally produced medical devices.
  • Revitalise the industries' technological capabilities and optimise the promotion of new capacities.
  • Encourage new investments.
  • Encouraging the pharmaceutical industry to transform into a research-based industry covering: R&D, clinical trials, formulation, manufacturing, distribution, and export.

The Regulation highlights the government’s outlook on future developments in these industries. With greater emphasis on local production and advancements, it is possible that future regulations will address import restrictions, localized research and development, and promoting exports of pharmaceutical products and medical devices.

 
 
IN THIS UPDATE
 
 

Regional Affairs
Indonesia, Australia cooperate to win world market access
RCEP's 3rd ministerial meeting completed in Hanoi

National Affairs
Indonesian panel picks Wimboh Santoso to head financial regulator
President installs board of directors of working unit on Pancasila
House agrees to an additional 19 legislative seats for 2019 election

ASEAN
Indonesian tobacco watchdog urges govt to sign FCTC to protect people

Customs
Government prepares regulation for tobacco import control
Indonesia bolsters economic cooperation with Nigeria
The Future of Asia 2017: Indonesia has 'lost interest' in TPP without US, vice president says
Indonesia and Australia aim for trade pact by year-end
Businessmen Welcome Plan of Trade Negotiation with Israel


Defense & Security
Indonesian ISIS Fighters Enter Philippines  
Southeast Asian nations step up cooperation as Islamic State threat mounts
DPR committed to accelerating discussion phase of anti-terror bill
Singapore ready to work with Indonesia following twin blasts in Jakarta

Economics
Gov't Increases Threshold for Automatic Bank Information Exchange
Indonesian Consumers Most Optimistic in 17 Years: Central Bank
Indonesian companies hunt funds after S&P upgrade
Govt Issues Presidential Regulation on Mini Markets
Some Bond Buyers Say Thanks for Indonesia Upgrade, Now Adieu
Jokowi: Time to Capitalize on Sovereign Credit Rating Upgrade
BI predicts May 2017 inflation at 0.37%
Six Indonesian Companies Make Forbes Global 2000 List
Bank Indonesia Ready to Restart Talks on Rupiah Redenomination
Indonesia, Canada launch local economy development program
Bank Indonesia Optimistic with Economic Growth of 7 Percent
Grab to create 5 million micro-entrepreneurs in Indonesia by 2018
Bank Indonesia Predicts Decline in Commodity Prices in 2018
Investment saving balance of payments
Indonesia sells $1.05 bln of bonds, more than targeted, after S&P upgrade
Association expects slow auto sales this year
Standard & Poor's raises Indonesia credit rating

Energy
Indonesia Asks OPEC to Reactivate Membership
Electricity firm opens tender for 168-MW solar power plants
PLN to settle tender for US$7.2b mine-mouth plants in 2017
BPH Migas to materialize flat fuel price: Jonan
Govt Adopts One-Fuel Price in 12 Districts
Indonesia eyes energy policy "overhaul" to attract investments
Ministry launches integrated geospatial application
Govt Expects ICP at US$50 per Barrel
Govt Auctions Geothermal Work Areas in July
New regulation opens way for geothermal sector’s infrastructure financing
Why Indonesia's decision to turn to diesel gas for power production is "short-lived"
Masela production capacity most likely 9.5 mtpa: Minister
Indonesia projected to become net LNG importer by 2022
PLN Ready to Electrify 365 Villages in Papua This Year
Govt reshuffles two agencies responsible for oil, gas businesses
Indonesia's revenue needs override coal curbs as oil take drops
Pertamina’s privileges may be revoked if efficiency not improved

Financial Services
Financial authority to kick off negotiations with Philippine central bank
Minimum account balance for AEOI reporting set at US$250,000
BRI, AGO partner to fight banking crimes
Government to establish electronic toll collection consortium
Rise of e-banking leads banks to prepare less cash for Idul Fitri
Indonesia's Salim Group re-enters banking with local takeover
OJK issues new regulation regarding public companies' shareholding reporting obligations
Survey highlights risks to Indonesian consumers in using digital financial services
Australia’s ASIC and Indonesia’s OJK sign agreement to promote financial innovation across respective markets
Indonesia: Bancassurance potential remains great
Banking secrecy a 'thing of the past'
OJK's regulation on fintech-based lending services
Bank secrecy to end internationally in 2018: Sri Mulyani
Finance Ministry to Limit Automatic Bank Information Exchange

Food & Agriculture
Indonesia president approves two-year extension of forest moratorium
Two state enterprises to convert sugarcane waste into fertilizers
Government to realize self-sufficiency in garlic in 2019
Government imposes zero-dollar exit tax on CPO
Indonesian beef price remains high despite influx of Indian buffalo meat
Government to finish five irrigation dams in 2017
Indonesia Secures $600m Loan From ADB to Beef Up Irrigation Systems

Health & Life Sciences
Indonesia tobacco bill would open tap for ads aimed at kids, health official says
Granting Indonesian youth access to reproductive health rights
Free School Meals Help Indonesian Children Stand Tall
Indonesia: Leptospirosis kills eight in Kulon Progo
Malaysia and Indonesia form strategic partnership | IMTJ
Pharmaceutical Exports Indonesia Remain Under Pressure in 2017 | Indonesia Investments
Stem cell treatments ready to replace medicine in 10 years: Expert
Halal Pharmaceuticals Market To Make Great Impact In Near Future by 2026 | LANews.org

ICT
Govt Upbeat to Have 1,000 Digital Companies by 2020
Communication Minister : Persecution Violates Information Law
Regulation establishing Indonesian cyber body signed
All Indonesian cities to have internet connectivity by 2019: Minister
Southeast Asia’s internet economy tops US$50 billion: Report
Southeast Asian censors test mettle of social media groups

Infrastructure
Japan grants Indonesia ¥1.43b to build vessel traffic system in Dumai
Govt Expects to Build 396 Kilometers Toll Road This Year
ASEAN infrastructure gap turns negatives into positives
Indonesia to Bank on 'Silk Road' Revival

Manufacturing
Domestic Steel Production Not Fully Optimized Yet

 
ARTICLE CLIPS
 
 
Regional Affairs

Indonesia, Australia cooperate to win world market access Antara News 29th May 2017
Indonesia and Australia through the Indonesia-Australia Comprehensive Economic Partnership (IA-CEPA) talks have agreed to take advantage of opportunities in third countries and world markets.

RCEP's 3rd ministerial meeting completed in Hanoi The Jakarta Post 24th May 2017
Trade Minister Enggartiasto “Enggar” Lukita attended on Monday a third meeting of the Regional Comprehensive Economic Partnership (RCEP) in Hanoi Vietnam, together with trade ministers from 15 countries, according to a statement issued by the Indonesian Trade Ministry.

National Affairs

Indonesian panel picks Wimboh Santoso to head financial regulator Reuters 8th Jun 2017
The Indonesian parliament's finance commission on Thursday voted for banker Wimboh Santoso to head the financial regulator. The commission's choice needs to be endorsed by the wider parliament in a vote on a later date. If approved, Santoso would begin his five-year term in July.

President installs board of directors of working unit on Pancasila Antara News 7th Jun 2017
President Joko Widodo (Jokowi) at the State Palace, here, Wednesday, installed nine members of the board of directors and chairman of the Presidential Working Unit on reinforcement of the Pancasila Ideology (UKP PIP). The 10 people were installed based on Presidential Decree No. 31/M/2017 on the Appointment of Board of Directors and Chairman of the UKP PIP.

House agrees to an additional 19 legislative seats for 2019 election The Jakarta Post 30th May 2017
The House of Representatives will add 19 seats in the 2019 legislative election, bringing a total of 579 lawmakers in the legislative body. House members made the decision during the deliberation of the election bill on late Monday evening, following heavy debate and closed-door lobbying among factions.

ASEAN

Indonesian tobacco watchdog urges govt to sign FCTC to protect people The Jakarta Post 30th May 2017
Ahead of World No Tobacco Day on May 31, the National Commission on Tobacco Control (Komnas PT), a coalition of organizations that has been staunchly campaigning on tobacco issues in Indonesia, has asked the government to draft a comprehensive regulation on tobacco control to protect society.

Customs

Government prepares regulation for tobacco import control Antara News 8th Jun 2017
Indonesia's Trade Ministry has planned to issue a regulation for tobacco import trading control, with one key point requiring importers to absorb domestic tobacco. The ministry's Director General for International Trade Oke Nurwan said here on Wednesday that the government has prepared the regulation following the decline in farmers selling price in the domestic market.

Indonesia bolsters economic cooperation with Nigeria VietnamPlus 7th Jun 2017
Indonesia and Nigeria need to bolster bilateral trade relations and investment, said Indonesian Foreign Affairs Minister Retno Marsudi on June 5. The official made the statement during her meeting with her Nigerian counterpart Geoffrey Onyeama in Abuja, Nigeria, according to Indonesian Ministry of Foreign Affairs. The two countries need to enhance bilateral trade cooperation through preferential trade agreements, the Indonesian minister added. To improve market access for Indonesian products in West African countries, Retno expressed her hope that Nigeria will help Indonesia form a preferential trade agreement between Indonesia and the Economic Community of West African States. Lowering tariffs and eliminating non-tariff barriers will increase bilateral trade, as well as trade between Indonesia and countries in West Africa.

The Future of Asia 2017: Indonesia has 'lost interest' in TPP without US, vice president says Nikkei Asian Review 5th Jun 2017
TOKYO -- Indonesia has lost its motivation to join the Trans-Pacific Partnership, due to the U.S. withdrawal from the trade pact, the Southeast Asian country's vice president told the Nikkei Asian Review in an interview on Monday. "The allure of the TPP for Indonesia was the fact that the U.S. was part of the deal," Jusuf Kalla said on the sidelines of the Future of Asia conference in Tokyo. "Without the U.S., we feel that the benefits on the trade front for Indonesia aren't that big, and we have lost interest."

Indonesia and Australia aim for trade pact by year-end Bangkok Post 5th Jun 2017
Indonesia and Australia hope to complete negotiations for a free trade agreement by the end of this year, following a successful seventh round of talks this month, which resulted in agreement on more "early outcomes" from the deal. The latest meeting on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), as it's formally known, reviewed nine early outcomes: exchange of skilled workers; partnership in food security, particularly meat and beef; financial services; recommendations on the Indonesia-Australia Business Partnership Group (IA-BPG); vocational training; fashion and jewellery design; food innovation; food and drug standardisation; herbal products, and mapping of standards. Another higghlight of the commitment to strengthening economic ties is an agreement to penetrate third countries or the global market as an "economic powerhouse", instead of just tapping each other's market.

Businessmen Welcome Plan of Trade Negotiation with Israel Tempo 29th May 2017
usinessmen have welcomed the government plan to establish trade negotiations with Israel. The two countries currently have no diplomatic relations. “We shall separate political and economic affairs; don’t let them intertwined. Why don’t we explore economic affairs?” the Indonesian Businessmen Association (Apindo) International Relations and Investment director Shinta Widjaja Kamdani told Tempo yesterday.

Defense & Security

Indonesian ISIS Fighters Enter Philippines   Tempo 7th Jun 2017
The National Counterterrorism Agency (BNPT) has detected the movements of the Islamic State of Iraq and Greater Syria (ISIS) fighters from Indonesia to the Philippines through the former’s north borders. The police and National Armed Forces (TNI) are now handling the exit route, according to the BNPT spokesman Irfan Idris.

Southeast Asian nations step up cooperation as Islamic State threat mounts Reuters 5th Jun 2017
Southeast Asian nations plan to use spy planes and drones to stem the movement of militants across their porous borders, defense officials said at the weekend, as concerns rise over the growing clout of Islamic State in the region. Indonesia, Malaysia and the Philippines said they will launch joint air patrols this month at their shared boundaries in the Sulu Sea, in addition to existing maritime patrols.

DPR committed to accelerating discussion phase of anti-terror bill Antara News 1st Jun 2017
Chairman of the House of Representatives (DPR) Setya Novanto affirmed his commitment to speeding up the discussion phase of the anti-terror bill, as requested by President Joko Widodo.

Singapore ready to work with Indonesia following twin blasts in Jakarta TODAYonline 25th May 2017
The Republic is ready to work with Indonesia to apprehend the culprits behind the twin blasts that occurred in Jakarta on Wednesday night (May 24), the Ministry of Foreign Affairs (MFA) said on Thursday.

Economics

Gov't Increases Threshold for Automatic Bank Information Exchange Jakarta Globe 8th Jun 2017
The Ministry of Finance will increase the minimum threshold for bank accounts to be subject to automatic bank information exchange to ease the burden of small businesses and to simplify banking administration, the ministry said in a statement on late Wednesday (07/06). Under the new policy, only a bank account with at least Rp 1 billion ($75,000) will be entered into the information exchange system for the ministry's tax directorate general.

Indonesian Consumers Most Optimistic in 17 Years: Central Bank Jakarta Globe 7th Jun 2017
Indonesian consumers felt more optimistic in May than they have in the past 17 years, thanks to better job availability and expectations incomes will rise, a survey by the central bank showed on Wednesday (07/06). Bank Indonesia's consumer index stood at 125.9 in May, the highest since the survey began in June 2000. The April reading was 123.7.

Indonesian companies hunt funds after S&P upgrade Bangkok Post 5th Jun 2017
Indonesian companies are striving to utilise a window of opportunity to raise funds on better terms that has opened after Standard & Poor's long-awaited upgrade of the country's credit rating to investment grade. Before its May 19 upgrade of Indonesia's sovereign credit outlook to BBB- from BB+, S&P had held out for more than five years from matching the ratings awarded by its peers, Fitch and Moody's, to Southeast Asia's biggest economy.

Govt Issues Presidential Regulation on Mini Markets Tempo 3rd Jun 2017
The government is currently drafting Presidential Regulation to regulate the mini market business that flourishes dramatically. Coordinating Minister for Economic Affairs Darmin Nasution said that the regulation intended to protect traditional markets and Small Medium Enterprises (UKM) will be issued this year.

Some Bond Buyers Say Thanks for Indonesia Upgrade, Now Adieu Bloomberg.com 1st Jun 2017
Indonesia’s ascension to investment grade at the big three ratings companies has spurred optimism for more inflows to the nation’s bonds. But beyond the hoopla, the risk-reward equation is worsening.

Jokowi: Time to Capitalize on Sovereign Credit Rating Upgrade Jakarta Globe 31st May 2017
President Joko "Jokowi" Widodo told his ministers not to issue new regulations, especially those that that have the potential to obstruct investment, in order for the country to capitalize on Indonesia's recently raised sovereign credit rating from Standard & Poor's.

BI predicts May 2017 inflation at 0.37% Antara News 29th May 2017
Bank Indonesia (BI) has predicted the May 2017 inflation rate will stand at 0.37 percent month-to-month, due to a rise in the prices of garlic, chicken meat, eggs and transportation tariffs.

Six Indonesian Companies Make Forbes Global 2000 List Tempo 29th May 2017
Forbes Magazine has released the 2017 Global 2000 List. The indicators include sales, profit, assets and market value. Six Indonesian companies are named in the Forbes Global 2000 list: state-owned lenders Bank Rakyat Indonesia (BRI), Bank Mandiri, Bank Negara Indonesia (BNI), private lender Bank Central Asia (BCA), state-owned telecommunication company PT Telkom and cigarette manufacturer Gudang Garam

Bank Indonesia Ready to Restart Talks on Rupiah Redenomination Jakarta Globe 24th May 2017
Bank Indonesia is ready to restart discussions with the House of Representatives on the redenomination of the rupiah, a director at the country's central bank said on Wednesday (24/05).

Indonesia, Canada launch local economy development program The Jakarta Post 24th May 2017
National Development Planning Minister Bambang Brodjonegoro and Canadian Ambassador to Indonesia Peter MacArthur launched in Jakarta on Tuesday a local economy development project worth C$18 million (US$13.31 million) for the provinces of Gorontalo and Southeast Sulawesi.

Bank Indonesia Optimistic with Economic Growth of 7 Percent Tempo 24th May 2017
Bank Indonesia expressed optimism that the Indonesia’s economic growth would stand above 7 percent this year after the country faced global uncertainty due to the US monetary policy and plummeting commodity prices last year.

Grab to create 5 million micro-entrepreneurs in Indonesia by 2018 Digital News Asia 23rd May 2017
GRAB recently committed to new goals under its US$700 million ‘Grab 4 Indonesia’ 2020 master plan.

Bank Indonesia Predicts Decline in Commodity Prices in 2018 Tempo 23rd May 2017
The Governor of Bank Indonesia Agus Martowardojo predicts a slight decline in commodity prices next year. It would have an impact on the government’s economic growth target of 5.4-6.1 percent set out in draft 2018 state budget.

Investment saving balance of payments The Jakarta Post 22nd May 2017
Investment has become the savior pushing Indonesia's balance of payments (BoP) into positive territory amid increasing imports and secondary income from abroad.

Indonesia sells $1.05 bln of bonds, more than targeted, after S&P upgrade Reuters 23rd May 2017
S&P upgraded Indonesia to investment grade on Friday, sending Jakarta shares and government bond prices rising. The other two main rating agencies, Fitch and Moody's, upgraded Indonesia to investment grade more than five years earlier.

Association expects slow auto sales this year The Jakarta Post 22nd May 2017
Association of Indonesian Automotive Manufacturers (Gaikindo) chairman Yohannes Nangoi has said automotive sales are expected to increase 3.7 percent to 1.1 million vehicles this year.

Standard & Poor's raises Indonesia credit rating Associated Press 19th May 2017
Standard & Poor's has raised Indonesia's sovereign credit rating to investment grade in recognition of a stable governing coalition and improved control over government finances.

Energy

Indonesia Asks OPEC to Reactivate Membership Jakarta Globe 5th Jun 2017
Indonesia has sent a letter to the Organization of the Petroleum Exporting Countries, or OPEC, to reactivate its membership in the group, a Ministry of Energy and Mineral Resources spokesman said.

Electricity firm opens tender for 168-MW solar power plants The Jakarta Post 5th Jun 2017
State-owned electricity firm PLN has opened tender processes for solar power plants in Sumatra with a total capacity of 168 megawatts (MW) of electricity in a bid to meet the government’s goal to supply 23 percent of the national energy mix from renewable sources by 2025.

PLN to settle tender for US$7.2b mine-mouth plants in 2017 The Jakarta Post 5th Jun 2017
State-owned electricity firm PLN plans to hold tender and settle all power purchase agreements (PPAs) for 12 mine-mouth coal-fired power plants in Sumatra and Kalimantan this year to ensure electricity supply in those regions in the long run.

BPH Migas to materialize flat fuel price: Jonan Antara News 5th Jun 2017
Minister of Energy and Mineral Resources Ignasius Jonan has asked the Director of Regulatory Agency for Downstream Oil and Gas (BPH Migas) to make the flat fuel price program a success. "The one program that should not fail in all areas in the entire nation is the flat fuel price. It is very important and must succeed," Jonan affirmed, after inaugurating echelon II officials of the Ministry of Energy and Mineral Resources in Jakarta, on Monday.

Govt Adopts One-Fuel Price in 12 Districts Tempo 5th Jun 2017
The government has planned to adopt one-price fuel policy since the end of last year. It has been developing fuel distributors in districts to implement the policy. As of June 1, as many as 12 fuel distributors have operated in 12 districts. “As for 2017, from the target of 54 locations, 12 have operated in 12 districts. More may operate in mid or end of June,” Energy Ministry spokesman Sujatmiko said in a written statement on Sunday.

Indonesia eyes energy policy "overhaul" to attract investments Asian Power 1st Jun 2017
Explorers will be offered various financial incentives. The Ministry of Energy and Mineral Resources of Indonesia is considering overhauling its energy policy, in an attempt to attract as much as US$200bn of investments over the next decade and to reverse the decline in its oil production, according to Enerdata.

Ministry launches integrated geospatial application Antara News 1st Jun 2017
The Ministry of Energy and Natural Resources here on Wednesday launched an application to provide an integrated geospatial information on several sectors, including oil, gas, power, geology, resources potentials, and energy reserves.

Govt Expects ICP at US$50 per Barrel Tempo 1st Jun 2017
The Finance Ministry predicted that the Indonesian Crude Price (ICP) would reach US$50 per barrel this year, which is higher than that assumed in the 2017 State Budget at US$45 per barrel.

Govt Auctions Geothermal Work Areas in July Tempo 1st Jun 2017
The government will be auctioning geothermal work areas in July following the issuance of a ministerial regulation on auction procedure. Energy and Mineral Resources Ministry new renewable energy and energy conservation director-general Rida Mulyana said that the regulation is being finalized at the legal bureau.

New regulation opens way for geothermal sector’s infrastructure financing The Jakarta Post 31st May 2017
The Finance Ministry recently issued a new ministerial decree regulating the management of funds for the geothermal sector by state-owned infrastructure financing company PT Sarana Multi Infrastruktur (SMI).

Why Indonesia's decision to turn to diesel gas for power production is "short-lived" Asian Power 30th May 2017
It is also expensive and risky, analyst says. The announcement last week of new diesel gas contracts and more diesel-powered generators for power production in hundreds of locations across Indonesia is short-sighted, expensive and risky, according to the Institute of Energy Economics and Financial Analysis (IEEFA).

Masela production capacity most likely 9.5 mtpa: Minister The Jakarta Post 30th May 2017
Energy and Mineral Resources Minister Ignasius Jonan has said the onshore liquefied natural gas (LNG) plant for the gas-rich Masela block will most likely have a production capacity of 9.5 million tons per annum (mtpa) and 150 million standard cubic feet per day (mmscfd).

Indonesia projected to become net LNG importer by 2022 The Jakarta Post 29th May 2017
Indonesia is projected to become a net importer of liquefied natural gas (LNG) by 2022 amid increasing domestic demand and declining output at mature gas fields, data from Fitch Group's BMI Research show.

PLN Ready to Electrify 365 Villages in Papua This Year Tempo 27th May 2017
State-owned Electricity Firm PLN is ready to provide electricity to 365 villages and eight regencies in Papua and West Papua this year.

Govt reshuffles two agencies responsible for oil, gas businesses The Jakarta Post 26th May 2017
The government has reshuffled two agencies tasked with overseeing upstream and downstream oil and gas businesses in the wake of a plan to “merge” those agencies.

Indonesia's revenue needs override coal curbs as oil take drops NASDAQ 24th May 2017
Indonesia will miss coal production targets as the government needs to lean on revenue from the fuel to make up shortfalls from its take from oil and gas output, ensuring the country keeps its top coal exporter status, officials said.

Pertamina’s privileges may be revoked if efficiency not improved The Jakarta Post 23rd May 2017
Energy and Mineral Resources Minister Ignasius Jonan has warned of a possible revocation of state-owned energy giant Pertamina's managerial privileges in oil and gas blocks—the contracts of which with private companies are set to expire—if the company fails to improve its efficiency.

Financial Services

Financial authority to kick off negotiations with Philippine central bank The Jakarta Post 2nd Jun 2017
The Financial Services Authority (OJK) is set to sign a letter of intent (LoI) with Banko Sentral ng Pilipinas, the Philippine central bank, on Sunday, paving the way for lenders in the two countries to expand their cooperation.

Minimum account balance for AEOI reporting set at US$250,000 Antara News 2nd Jun 2017
Finance Minister Sri Mulyani Indrawati confirmed here on Thursday that the minimum account balance to be reported under the Austomatic Exchange of Information (AEOI) has been set at US$250,000.

BRI, AGO partner to fight banking crimes The Jakarta Post 1st Jun 2017
State-owned lender PT Bank Rakyat Indonesia (BRI) signed a memorandum of understanding (MoU) and several agreements with the Attorney General’s Office (AGO) in Jakarta on Wednesday to fight against banking crimes.

Government to establish electronic toll collection consortium Antara News 1st Jun 2017
The Public Works and Public Housing Ministry (PUPR), in cooperation with Bank Indonesia, will establish an electronic toll collection (ETC) consortium to set up a non-cash payment system on toll roads, which is targeted to operate thoroughly in Oct 2017.

Rise of e-banking leads banks to prepare less cash for Idul Fitri The Jakarta Post 31st May 2017
An increased use of electronic banking services has led state-owned lenders Bank Mandiri and Bank Rakyat Indonesia (BRI) to prepare lesser amounts of cash ahead of Idul Fitri celebrations, compared to last year.

Indonesia's Salim Group re-enters banking with local takeover Nikkei Asian Review 30th May 2017
Indonesia's largest conglomerate, Salim Group, has acquired a majority stake in a local bank, marking its first return to the banking business since the 1998 Asian financial crisis. Through various affiliated entities, the group bought at least 51% of Bank Ina Perdana by subscribing to new shares issued by the Indonesia-listed lender. The acquisition value is estimated at 570 billion rupiah ($42 million). The bank has 22 branches in Java and had 2.3 trillion rupiah in assets as of December 2016.

OJK issues new regulation regarding public companies' shareholding reporting obligations Lexology 30th May 2017
The Financial Services Authority (OJK) recently amended public companies' obligation to report on their shareholding by way of OJK Regulation 11/POJK.04/2017 regarding Reporting on Public Company Ownership or on Every Change in Share Ownership. Enacted on March 14 2017, the regulation aims to bring public companies' reporting obligations in line with international standards. Its scope is much wider and more detailed than the previous OJK Regulation 60/POJK.04/2015 regarding the Information Transparency of Certain Shareholders.

Survey highlights risks to Indonesian consumers in using digital financial services Digital News Asia 26th May 2017
INDONESIA is moving forward in leaps and bounds in terms of financial inclusion. The rapid growth of the government’s Digital Financial Services (DFS) in the form of Laku Pandai branchless banking and Layanan Keuangan Digital (LKD) e-money are examples of this progress.

Australia’s ASIC and Indonesia’s OJK sign agreement to promote financial innovation across respective markets Open Gov 23rd May 2017
The Australian Securities and Investments Commission (ASIC) and Indonesia's Otoritas Jasa Keuangan (OJK) have entered a Cooperation Agreement to promote innovation in financial services in their respective markets.

Indonesia: Bancassurance potential remains great Asia Insurance Review 23rd May 2017
Bancassurance is currently the largest life insurance distribution channel in Indonesia, having contributed to 51% of premiums in 2016. Although the channel's share in general insurance premiums is significantly lower at 3.57%, bancassurance still holds great potential, said Mr Edy Setiadi, Deputy Commissioner of Non-Bank Financial Institutions, Indonesia Financial Services Authority (OJK).

Banking secrecy a 'thing of the past' The Straits Times 22nd May 2017
With a stroke of a pen, President Joko Widodo effectively ended banking secrecy in Indonesia by issuing a decree last Tuesday to grant more powers to the taxman. The move means all banks, insurance firms and financial institutions must open their books to both the local and foreign tax authorities when ordered to do so for tax collection purposes.

OJK's regulation on fintech-based lending services Lexology 19th May 2017
To support the development of a technology-based financial industry in Indonesia, in December 2016 the Financial Services Authority (OJK) issued Regulation 77/POJK01/2016 regarding technology-based fund-lending services. In its press release, the OJK stated that the regulation was designed to protect consumer and national interests, while at the same time provide opportunities for local providers of financial technology (fintech) to grow and contribute to the national economy.

Bank secrecy to end internationally in 2018: Sri Mulyani The Jakarta Post 19th May 2017
After issuing regulation in lieu of law (Perppu) No. 1/2017 on financial information access for tax purposes, the government is set to commit to the Automatic Exchange of Information (AEOI) in 2018. Finance Minister Sri Mulyani said 100 countries, including G20 members had committed to AEOI; 50 of which will be ready to implement AEOI in September, while the rest will do so in September the following year.

Finance Ministry to Limit Automatic Bank Information Exchange Jakarta Globe 19th May 2017
Local banks may soon only be required to share information on large accounts to the tax office, as the government tries to limit risks from automatic bank information exchange, the Finance Ministry said on Thursday (18/05).

Food & Agriculture

Indonesia president approves two-year extension of forest moratorium Reuters Africa 24th May 2017
Indonesian President Joko Widodo has approved a two-year extension to a moratorium on issuing new licences to use land designated as primary forest and peatland, the environment and forestry minister said on Wednesday.

Two state enterprises to convert sugarcane waste into fertilizers The Jakarta Post 5th Jun 2017
State-owned plantation firm PT Perkebunan Nusantara (PTPN) XI has signed a Memorandum of Understanding (MoU) with state-owned fertilizer producer PT Pupuk Kujang to conduct research on the conversion of sugarcane waste into organic fertilizers.

Government to realize self-sufficiency in garlic in 2019 Antara News 5th Jun 2017
The Agriculture Ministry has targeted to achieve self sufficiency in garlic in 2019, sooner than its previously set target of 2033, Agriculture Minister Amran Sulaiman stated here, Monday.

Government imposes zero-dollar exit tax on CPO Antara News 2nd Jun 2017
The government has imposed a zero-dollar exit tax for crude palm oil (CPO) in June 2017, because the price of the commodity fell below US$750 per metric ton.

Indonesian beef price remains high despite influx of Indian buffalo meat ABC Rural 31st May 2017
Despite the importation of cheap Indian buffalo meat, the price of beef across Indonesia remains high. Indonesian consumers are once again forking out high prices to enjoy beef during the Islamic holy month of Ramadan, despite the influx of cheap buffalo meat from India.

Government to finish five irrigation dams in 2017 The Jakarta Post 27th May 2017
In an effort to increase agricultural production, the Public Works and Public Housing Ministry will finish the construction of five irrigation dams in 2017, an official has said.

Indonesia Secures $600m Loan From ADB to Beef Up Irrigation Systems Jakarta Globe 24th May 2017
Indonesia has secured a $600 million loan from the Manila-based Asian Development Bank, or ADB, to improve national irrigation systems in a bid to achieve food security and reduce nationwide poverty.

Health & Life Sciences

Indonesia tobacco bill would open tap for ads aimed at kids, health official says Reuters 1st Jun 2017
A proposed Indonesian tobacco law will roll back regulations to discourage smoking in a country that already has one of the highest smoking rates in the world and open the floodgates to advertising aimed at teenagers, a health ministry official said.

Granting Indonesian youth access to reproductive health rights The Jakarta Post 7th Jun 2017
Both in urban and rural settings, most young people in Indonesia still find it difficult to get accurate information on sexual reproductive health.

Free School Meals Help Indonesian Children Stand Tall Jakarta Globe 6th Jun 2017
In Indonesia, one in three children between the ages of six and 14 do not eat enough nutritious food, the UN World Food Program (WFP) says. (Antara Photo/Didik Suhartono)

Indonesia: Leptospirosis kills eight in Kulon Progo Outbreak News Today 5th Jun 2017
Indonesia: Leptospirosis kills eight in Kulon Progo Health officials in Kulon Progo in the Yogyakarta Special Region, Indonesia are reporting 58 cases of the bacterial disease, leptospirosis, including eight fatalities since the beginning of the year.

Malaysia and Indonesia form strategic partnership | IMTJ International Medical Travel Journal 1st Jun 2017
MHTC and five Indonesian strategic partners have signed a partnership agreement on health tourism. The Malaysia Healthcare Travel Council (MHTC) and five Indonesian strategic partners have signed an exclusive partnership agreement on health tourism.

Pharmaceutical Exports Indonesia Remain Under Pressure in 2017 | Indonesia Investments Indonesia Investments 1st Jun 2017
Dorojatun Sanusi, Executive Director of GP Farmasi Indonesia, said Indonesia's pharmaceutical product exports will rise in 2017 but "not too much". However, based on data from Indonesia's Statistics Agency (BPS), the value of Indonesian pharmaceutical exports fell 2.8 percent year-on-year (y/y) to USD $176.3 million in the January-April 2017 period (from USD $181.6 million in the same period one year earlier).

Stem cell treatments ready to replace medicine in 10 years: Expert The Jakarta Post 23rd May 2017
Developments in science and technology have enabled humankind to achieve the unthinkable, including advancements in healthcare. In the next 10 years, patients may not even need medicine to cure certain illnesses as reported by kompas.com.

Halal Pharmaceuticals Market To Make Great Impact In Near Future by 2026 | LANews.org LANEWS.Org 23rd May 2017
Drivers of the halal pharmaceuticals market include a growing Muslim population. Given that Muslims have been estimated to account for close to 25% of the global population in 2015—~1.6 billion people (PewResearch) – the annual growth rate of the Muslim population has been estimated to be ~1.6%, which is higher than the growth rate of the world population (1.1% per annum). Increasing awareness among Muslims regarding wellness and medicines is propagating mainly through increased education.

ICT

Govt Upbeat to Have 1,000 Digital Companies by 2020 Tempo 4th Jun 2017
The government are optimistic that 1,000 Startup Digital National Movement kicked off since 2016 will result in the establishment of 1,000 digital companies in Indonesia by 2020.

Communication Minister : Persecution Violates Information Law Tempo 2nd Jun 2017
Communications and Information Minister Rudiantara said that persecution, which is an act of hunting down a person or a certain group by disseminating identities of the person, violates the law on information and electronic transactions.

Regulation establishing Indonesian cyber body signed The Jakarta Post 1st Jun 2017
President Joko "Jokowi" Widodo has signed a long-awaited presidential regulation (Perpres) on the establishment of a national cyber agency. Officially named the Cyber Body and National Encryption Agency (BSSN), it is tasked with protecting the nation’s cyber world and boosting the economy.

All Indonesian cities to have internet connectivity by 2019: Minister Antara News 31st May 2017
Communication and Information Minister Rudiantara has vowed to offer high-speed internet access to all capitals and regencies in Indonesia by 2019 through the provision of government facilities under the "Tol Informasi" program.

Southeast Asia’s internet economy tops US$50 billion: Report The Jakarta Post 22nd May 2017
As the number of digital consumers in Southeast Asia rose by 50 percent to 200 million last year, the region’s internet economy has been valued at US$50 billion, a report shows.

Southeast Asian censors test mettle of social media groups Financial Times 24th May 2017
Big social media companies are under siege in Southeast Asia, where Thailand’s new king, Vietnam’s communist government and religious tensions in Indonesia are feeding a clampdown on content.

Infrastructure

Japan grants Indonesia ¥1.43b to build vessel traffic system in Dumai The Jakarta Post 5th Jun 2017
Indonesia will construct its second vessel traffic system (VTS) in an effort to improve its guiding service for ships passing through the Malacca straits with a ¥1.43 billion (US$12.9 million) grant from Japan.

Govt Expects to Build 396 Kilometers Toll Road This Year Tempo 30th May 2017
The government is aiming to build 1,000 kilometers of toll road by 2019. The State-Owned Enterprises Ministry Deputy for Construction Business and Transportation Infrastructure Pontas Tambunan said that the 396-kilometer toll road is expected to be built this year.

ASEAN infrastructure gap turns negatives into positives Times of Malta 23rd May 2017
If a spending deficit of $1.2 trillion in six key Asian economies and a rising tide of protectionist rhetoric in Europe don’t seem the most promising combination of business prospects, think again.

Indonesia to Bank on 'Silk Road' Revival The Jakarta Post 24th May 2017
President Joko "Jokowi" Widodo's ambitious infrastructure development program seems to match China's huge appetite for expanding investment through the latter's One Belt One Road (OBOR) initiative.

Manufacturing

Domestic Steel Production Not Fully Optimized Yet Tempo 23rd May 2017
The domestic steel productivity in 2017 is expected to increase by 5 percent compared to the previous year, considering that demands of domestic steel in 2016 reached 12 million tons, and the industry could only manage to provide 6-7 million tons.