Indonesia Update: Indonesia Issues its 16th Economic Policy Package

Indonesia Update | September 7, 2017
Authors: Kim Yaeger, Artha Sirait, Ian Saccomanno and Gaofan Zhang
 
LOOKING AHEAD
 
 
  • September 26 - 26 for the 2017 Mission to the ASEAN Ministers of Energy Meeting (AMEM): For more information, please contact Riley Smith at rsmith@usasean.org 
  • October 15 - 17 for the BKPM Regional Investment Forum in Padang, Indonesia: Following the success of its previous forum in Bali, the Indonesia Investment Coordinating Board (BKPM) will hold its 2017 REGIONAL INVESTMENT FORUM in Padang, West Sumatra entitled “Promoting Investment in Tourism Industry and Supporting Infrastructure”. Please click here for more information.
  • October 17 - 18 for the 2017 Brunei Business Mission: Please save the date for the US-ASEAN Business Council's annual mission to Bandar Seri Begawan, Brunei on October 18, 2017. Please plan to arrive in Bandar Seri Begawan in the afternoon of October 17 (3:00 PM) for a pre-mission briefing and potentially a reception at U.S. Ambassador Craig Allen's residence. The Council is currently developing proposals to engage the Government of Brunei on its priorities in an effort to diversify its economy, which will include the financial sector (electronic payments, insurance, banking and financial inclusion), ICT sector (digital economy, cyber security), and energy sector. If you would like to propose any ideas or if you have any questions, please contact Artha Sirait at asirait@usasean.org

  • December 6-8 for the 2017 Myanmar Business Mission: Please save the date for the US-ASEAN Business Council's annual business mission to Nay Pyi Taw and Yangon, Myanmar. Official invitation with registration details to follow. Requested meetings include: President U Htin Kyaw, State Counsellor Daw Aung San Suu Kyi, Key Cabinet Ministers, Members of Parliament including Speaker of the Pyithu Hluttaw (Lower House) U Win Myint, Myanmar Investment Commission, and the UMFCCI. Please contact Jack Myint at jmyint@usasean.org with any questions or to express interest.

 
THE COUNCIL'S TAKE
 
 

Indonesia Issues its 16th Economic Policy Package

On August 31, the Government of Indonesia launched its 16th economic policy package to further boost investment in the country through a more efficient and integrated business licensing system. In addition to developing a more effective and efficient system regarding business licensing, the package also aims to improve the coordination between ministries and regional authorities across Indonesia; to better balance the national and regional regulations, allowing the central government and the provincial government to work more closely to achieve the harmonization of regulations which has been an issue in the past.

Indonesia’s 16th economic policy package will be implemented in two phases. First is the establishment of task forces to implement business licensing processes and to oversee the application of licensing checklists at special economic zones, free trade zones, and industrial and tourism areas using data sharing. Second is the development of the single submission system which would also include regulatory reforms. Coordinating Minister for Economic Affairs, Darmin Nasution in his public announcement stated that Indonesia aims “… to use information and technology through the implementation of an integrated licensing system (also referred to as single submission).” His Coordinating Ministry has since described the single submission system as an integrated licensing system, where investors only need to go to one place to obtain all of the required licenses therefore speeding up the process. This process is expected to commence next year. Under the new policy package, the central government also aims to standardize the quality of its administrative officers, which is expected to better assist investors.

Since September 2015, the Jokowi administration has issued 16 economic policy packages accommodating various business sectors in Indonesia in an effort to boost investment in the country. The 16th economic policy package is expected to further strengthen the “Indonesia National Single Window (INSW)” program, which was designed to build a more consistent, transparent, simplified, and efficient system to better facilitate trade and logistic activities in the country. It is in furtherance of the 15th economic policy package which was issued earlier in June 2017.

Jokowi Established Negotiation Team on International Trade Agreements

On August 18, President Joko “Jokowi” Widodo established a negotiation team in charge of Indonesia’s international trade agreements, whose objectives are “to enhance market access, protect and secure Indonesia’s national interests in international trade agreements”. Such establishment was mandated by Law No. 7 of 2014 on Trade and the establishment itself was carried out based on Presidential Regulation No. 82 of 2017. In addition to Indonesia’s bilateral and regional trade agreements with several countries across the Asia Pacific and the ASEAN Free Trade Area; Indonesia and the United States have the Trade and Investment Framework Agreement (TIFA) as a platform for both countries to build and address bilateral trade issues. The most recent TIFA talks took place in June 2017 in which the interagency teams for the TIFA were led by Indonesia’s Ministry of Trade Director General for International Trade Negotiations Iman Pambagyo and Assistant U.S. Trade Representative for Southeast Asia and the Pacific Barbara Weisel.

The Minister of Trade under the guidance of the Coordinating Minister for Economic Affairs will lead a team of at least 21 members including: Minister of Foreign Affairs; Minister of Law and Human Rights; Minister of Finance; Minister of Health; Minister of Manpower; Minister of Industry; Minister of Energy and Mineral Resources; Minister of Public Works and Public Housing; Minister of Transportation; Minister of Communications and Informatics; Minister of Agriculture; Minister of Environment and Forestry; Minister of Marine Affairs and Fisheries; Minister of Villages, Development of Underdeveloped Regions, and Transmigration; Minister of Tourism; Minister of State Secretary; Cabinet Secretary; Head of National Standardization Body; Head of the Investment Coordinating Board; and the Head of the Food and Drug Supervisory Agency. The team will also include the Chairman of the Indonesian Chamber of Commerce and Industry as the only private sector representative. The formation of this negotiation team is seen necessary to formulate and establish Indonesia’s negotiating positions and strategies in international trade agreements.

If needed, the negotiation team may also assemble an advisory team which may include academics, business players or experts on international trade agreements, though the list is not exhaustive. The team reports to President Jokowi and submits written reports at least annually or as necessary.

 
 
IN THIS UPDATE
 
 
Regional Affairs
Indonesia and Singapore sign five agreements
Indonesia expects to conclude four FTAs in 2017
Australia-Indonesia free trade deal will encounter protectionism
Indonesia, Vietnam mend ties after talks to settle South China Sea disputes
Indonesia Eyes Rp131.5tn Worth of Trade with Vietnam

National Affairs
Minister Sri Mulyani Watchful of 2018 Global Risk
Finance minister meets Jokowi to discuss fiscal incentives
Indonesia eases investment rule
After political storm, Indonesia president faces economic clouds
Presidential Regulation to Cut Red Tape, Fast-Track Business Licensing
Now is time to attract investments: Jokowi
Transportation Ministry introduces three acting directors general
Indonesia, China Strengthen Ties in Political, Legal, Sectors
Indonesia needs to realize its sharia economy potential
Presidential Spokesman Comments on Cabinet Reshuffle Rumor

Customs
U.S. Issues Affirmative Preliminary Countervailing Duty Determinations on Biodiesel from Argentina and Indonesia
Indonesia faces barriers in palm oil exports

Defense & Security
China demands Indonesia drop new name for Natuna waters
U.S., Indonesian Navies Enhance Training Objectives
Japan seeks expanded industrial engagement with Indonesia and India
Indonesia, Singapore Conduct Mine Countermeasure Military Drills
Indonesia to buy $1.14 billion worth of Russian jets

Economics
Govt’s 16th economic package receives warm welcome
Iran, Indonesia to boost economic ties
Indonesia expects higher growth of digital industry in 2019
16th Policy Package ​to Continue​ Structural ​Reforms in Indonesia
Bank Indonesia rate cut shows comfort with outlook
Indonesia's Rate Cut Shows Comfort With Rupiah Outlook

Energy
Indonesia's changes to oil, gas deals "positive" for investors - association
Indonesia expresses 'deep concern' over investigation into alleged steel rod dumping

Financial Services
Indonesia’s central bank forbids merchants from swiping customers’ debit/credit cards on cash register to protect personal data
Indonesia: Rules revised to promote infrastructure investments
Financial authority to regulate peer-to-peer lending
Indonesia Unexpectedly Cuts Interest Rate: ETFs in Focus
Indonesia's banking industry is attracting many investors — but there are major risks
Indonesian Banks to Go Digital
New OJK Deputy Chair Vows Responsive Policies in Fast-Changing Finance Sector

Food & Agriculture
Food sector to hold reins of power in future: President
Indonesia Caps Rice Prices in Bid to Keep Food Costs Stable
Indonesia faces more barriers in palm oil exports
CPO export increases by 25 percent in first half
Indonesia denies biodiesel dumping allegation in US
Indonesia expects to become self-sufficient in salt in 2019
Agriculture Ministry to involve thousands of students to train farmers
How Indonesia’s President monitors food security

Health & Life Sciences
Health-Conscious Indonesians on the Rise, Growth of Nutritious Products Expected
Indonesia calls for stronger health cooperation within ASEAN

ICT
Jokowi highlights digital economy cooperation
Bank Indonesia, Transport Ministry Team Up to Provide Cashless Commutes
Indonesia to build Batam as a digital industrial park
Indonesia's e-commerce market set to hit $130b by 2020
China's JD.com Eyes Indonesia with Investment of Go-Jek
Alibaba Founder Jack Ma Agrees to Advise Indonesia on E-Commerce
Jack Ma says infrastructure is a ‘key challenge’ to Indonesia’s ecommerce growth
Ministry reviews court order to annul ride-hailing apps ruling

Infrastructure
Indonesia's Regulator Eases Investment Rule to Aid Infrastructure Funding
Govt to Commence Jakarta - Surabaya Train Project Next Year
Indonesia's national rail network aims for more growth, less inequality
Ministry is Rp431tn Short on Infrastructure Budget
Minister appoints new director general for sea transportation
Govt to Consult with Experts over Online Transportation Bill
Indonesia to introduce tax breaks for low-carbon cars
Securing land still a problem for Indonesia rail project

Manufacturing
Indonesian Manufacturing Back in Expansion Mode
 
ARTICLE CLIPS
 
 
Regional Affairs

Indonesia and Singapore sign five agreements The Jakarta Post 7th Sep 2017
Indonesia and Singapore on Thursday signed three memorandums of understanding (MoU), one technical arrangement and one framework for heads of agreement (HoA) at the official residence of Singapore's President on Thursday.

Indonesia expects to conclude four FTAs in 2017 The Jakarta Post 7th Sep 2017
The government is optimistic that it will conclude four bilateral free trade agreements (FTAs)  this year. The four agreements include comprehensive economic partnership agreements (CEPA) with Australia, the European Free Trade Association (EFTA) and Chile as well as a preferential trade agreement (PTA) with Iran.

Australia-Indonesia free trade deal will encounter protectionism The Sydney Morning Herald 29th Aug 2017
Malcolm Turnbull's desire for a "high quality" free trade agreement with Indonesia will confront Jakarta's protectionist impulses, with chief negotiator Deddy Saleh saying his country was shooting for a "good quality" agreement instead. "High quality" free trade was different to "good quality", Mr Deddy explained to Fairfax Media, because, "A 'high quality' agreement suggests opening the markets fully".

Indonesia, Vietnam mend ties after talks to settle South China Sea disputes The Straits Times 24th Aug 2017
Amid two recent maritime stand-offs in the waters around the Natuna Islands in South China Sea, Indonesia and Vietnam mended ties after President Joko Widodo and Communist Party of Vietnam secretary-general Nguyen Phu Trong held talks in Jakarta on Wednesday (Aug 23). 

Indonesia Eyes Rp131.5tn Worth of Trade with Vietnam Tempo 23rd Aug 2017
Trade Minister Enggartiasto Lukita said that Indonesia is aiming at boosting the value of its trade with Vietnam. The government has set a target to achieve US$10 billion worth of trade with Vietnam. "The President wants to reach US$10 billion [worth of trade with Vietnam]," Enggartiasto said at the Presidential Palace in Jakarta today, August 23. 

National Affairs

Minister Sri Mulyani Watchful of 2018 Global Risk Tempo 7th Sep 2017
Finance Minister Sri Mulyani Indrawati announced that the government is keeping an eye on the upcoming global risk between the United States and China, which can affect Indonesia’s national economic climate. “Especially with the United States that has a protectionist tendency. We are also monitoring the risk that would arise from China’s economic rebalancing,” said Sri Mulyani on Wednesday.

Finance minister meets Jokowi to discuss fiscal incentives Antara News 6th Sep 2017
Finance Minister Sri Mulyani met President Joko Widodo (Jokowi) at the Merdeka Palace here on Wednesday to discuss potential fiscal incentives to increase investment inflows.

Indonesia eases investment rule The Straits Times 5th Sep 2017
Indonesia's financial regulator has changed its rules governing investments by non-bank financial institutions, according to a new regulation signed last week, in a move aimed at getting those firms to support government infrastructure projects.

Presidential Regulation to Cut Red Tape, Fast-Track Business Licensing Jakarta Globe 31st Aug 2017
President Joko "Jokowi" Widodo issued a new regulation on Thursday (31/08) to simplify and integrate business licensing processes. The regulation's goal is to create by March an integrated application system for investors and make them able to obtain all licences required at one place.

Now is time to attract investments: Jokowi The Jakarta Post 29th Aug 2017
President Joko "Jokowi" Widodo has reminded relevant officials in his administration that now is the time for Indonesia to attract more investments as the country is scoring well in global surveys and has a stable economic situation.

Transportation Ministry introduces three acting directors general The Jakarta Post 28th Aug 2017
The Transportation Ministry has introduced three acting directors general at a press conference after the resignation, the dismissal and the arrest of former top officials in the ministry.

Indonesia, China Strengthen Ties in Political, Legal, Sectors Tempo 25th Aug 2017
Indonesia and China pledged to strengthen bilateral ties in the fields of politics, defense, law, and security. Coordinating Minister for Political, Legal, and Security Affairs Wiranto said that the mutual partnership between the country has strengthened since the Comprehensive Strategic Partnership was signed in 2013. 

Indonesia needs to realize its sharia economy potential The Jakarta Post 23rd Aug 2017
Finance Minister Sri Mulyani Indrawati has said that Indonesia needs to spread knowledge about the sharia economy to the public so the country with the world’s largest Muslim population could unearth the great potential of its Islamic economy. 

Presidential Spokesman Comments on Cabinet Reshuffle Rumor Tempo 23rd Aug 2017
Presidential spokesman Johan Budi said that he has yet to get the latest information on a possible cabinet reshuffle. “I have not received any information or confirmation yet as to whether the President will reshuffle his cabinet or not,” he said in Bandung yesterday, adding that it was the President’s prerogative.

Customs

U.S. Issues Affirmative Preliminary Countervailing Duty Determinations on Biodiesel from Argentina and Indonesia Department of Commerce 22nd Aug 2017
Today, U.S. Secretary of Commerce Wilbur Ross announced the affirmative preliminary determinations in the countervailing duty (CVD) investigations, finding that exporters of biodiesel from Argentina and Indonesia received countervailable subsidies of 50.29 to 64.17 percent and 41.06 to 68.28 percent, respectively. Commerce also determined that critical circumstances exist in both investigations, allowing for collection of duties for a retroactive period of 90 days prior to publication of the preliminary determination in the Federal Register.

Indonesia faces barriers in palm oil exports Hellenic Shipping News 28th Aug 2017
Indonesia is facing another trade barrier in its palm oil commodity exports after the one applied by European Community (EC) in April over green issue. The freshest challenge was received from the Indian government which recently increased its import duty for Indonesian crude palm oil (CPO) entering the nation by 100 percent from 7.5-15 percent.

Defense & Security

China demands Indonesia drop new name for Natuna waters The Jakarta Post 3rd Sep 2017
China has issued a demand for Indonesia to reverse its decision to rename the South China Sea (SCS) waters that lie within Indonesia’s exclusive economic zone (EEZ).

U.S., Indonesian Navies Enhance Training Objectives U.S. Department of Defense 7th Sep 2017
The U.S. and Indonesian navies have come together for the 23rd iteration of a bilateral exercise and skills exchange called Cooperation Afloat Readiness and Training, or CARAT. 

Japan seeks expanded industrial engagement with Indonesia and India Jane's 360 6th Sep 2017
Japan is undertaking efforts to deepen understanding of the defence industrial capabilities of Indonesia and India, with a view to pursuing military technology programmes with the two countries and possible defence trade, Jane's has learnt.

Indonesia to buy $1.14 billion worth of Russian jets Reuters 22nd Aug 2017
Indonesia will buy 11 Sukhoi fighter jets worth $1.14 billion from Russia in exchange for cash and Indonesian commodities, two cabinet ministers said on Tuesday. 

Economics

Govt’s 16th economic package receives warm welcome The Jakarta Post 4th Sep 2017
Business people have enthusiastically welcomed the latest 16th economic package on the acceleration of business implementation, which aims to improve coordination between ministries and provincial administrations in business permit issuance.

Iran, Indonesia to boost economic ties Mehr News Agency 28th Aug 2017
Indonesian ambassador to Iran said trade turnover between Tehran and Jakarta, which stood at $338 million in 2016, could rise to a total 600 million dollars by the end of 2017. 

Indonesia expects higher growth of digital industry in 2019  Xinhua 28th Aug 2017
The government of Indonesia had projected digital industry will expand rapidly in 2019, which will provide thousands of jobs.

16th Policy Package ​to Continue​ Structural ​Reforms in IndonesiaInsider Stories 27th Aug 2017
The Government of Indonesia is preparing its next economy policy package, with a focus on a task force for investment aimed at every regional government, Ministries as well as government institutions.

Bank Indonesia rate cut shows comfort with outlook Bangkok Post 23rd Aug 2017
Indonesia’s central bank surprised most economists on Tuesday by lowering interest rates, reflecting its relative comfort with the currency and inflation outlook. The benchmark rate was cut by a quarter point to 4.5%, with all but six of the 28 economists surveyed by Bloomberg having predicted it would stay on hold. 

Indonesia's Rate Cut Shows Comfort With Rupiah Outlook Bloomberg.com 22nd Aug 2017
Indonesia’s central bank surprised most economists on Tuesday by lowering interest rates, reflecting its relative comfort with the currency and inflation outlook.

Energy

Indonesia's changes to oil, gas deals "positive" for investors - association U.S. 5th Sep 2017
Indonesia’s revisions to new oil and gas production-sharing contracts are positive for investors, the leading energy industry association said, amid waning interest in energy exploration and declining oil output from the former OPEC member.

Indonesia expresses 'deep concern' over investigation into alleged steel rod dumping The Sydney Morning Herald 1st Sep 2017
The Indonesian Government has expressed its "deep concern" after Australia launched an investigation into the alleged dumping of steel rods exported from Indonesia and two other countries.

Malaysia, Indonesia in talks with China to expand palm oil use in biodiesel Free Malaysia Today 23rd Aug 2017
Indonesia and Malaysia are currently in discussions with China to expand the use of palm oil in the world’s second-biggest economy through palm-enriched biodiesel, the plantations industries and commodities minister said today. 

Financial Services

Indonesia’s central bank forbids merchants from swiping customers’ debit/credit cards on cash register to protect personal data Coconuts 6th Sep 2017
In most card transactions in Indonesia, the customer’s debit or credit card is swiped both on the Electronic Data Capture (EDC) machine as well as the merchant’s cash register. 

Indonesia: Rules revised to promote infrastructure investments Asia Insurance Review 5th Sep 2017
Indonesia's financial regulator has changed its rules governing investments by insurance companies and other non-bank financial institutions, in a move aimed at getting these entities to support government infrastructure projects, reported Reuters. 

Financial authority to regulate peer-to-peer lending The Jakarta Post 30th Aug 2017
The Financial Service Authority (OJK) will soon regulate peer-to-peer (P2P) lending to minimize the risk of bad debt in the virtual financing business. OJK’s financial technology (fintech) licensing and supervision director Hendrikus Passgi said his institution would issue a circular that would serve as a guideline for P2P transactions.  

Indonesia Unexpectedly Cuts Interest Rate: ETFs in Focus NASDAQ.com 26th Aug 2017
Indonesia's central bank unexpectedly cut its benchmark interest rate by 25 basis points on August 22, 2017. It now stands at 4.5%. Improving inflation outlook and less hawkish stance of the U.S. Federal Reserve led to this decision. A mere six out of 28 economists surveyed by Bloomberg predicted a rate cut, while others expected the bank to hold.

Indonesia's banking industry is attracting many investors — but there are major risks CNBC 25th Aug 2017
Kartika Wirjoatmodjo, president director and CEO of Bank Mandiri said at a CNBC panel earlier this month that he does not see margins or profitability decreasing anytime soon as "excess to financing is still limited and if all banks were to grow rapidly, it will take at least five years for the market to converge." 

Indonesian Banks to Go Digital: Report Jakarta Globe 23rd Aug 2017
Indonesian banks are going digital to stay competitive and relevant to meet the needs of millennial consumers who are set to dominate the population in the next decade, according to a recent report by corporate strategy consulting firm Soldiance, published on Tuesday (22/08).

New OJK Deputy Chair Vows Responsive Policies in Fast-Changing Finance Sector Jakarta Globe 23rd Aug 2017
Supreme Court Chief Justice Hatta Ali swore in Nurhaida for a five-year term as deputy chairwoman of the Financial Services Authority, or OJK, in Jakarta on Tuesday (22/08). Nurhaida, who served as OJK commissioner for capital market supervision from 2012 to 2017, was promoted to replace Rahmat Waluyanto, whose tenure ended this year.

Food & Agriculture

Food sector to hold reins of power in future: President Antara News 7th Sep 2017
President Joko Widodo (Jokowi) believes it is the food sector and not politics and law that will hold the reins of power in future.

Indonesia Caps Rice Prices in Bid to Keep Food Costs Stable Jakarta Globe 6th Sep 2017
Indonesia's trade ministry has capped retail prices for most types of rice, looking to "maintain stability" in the cost of the commodity which lies at the heart of cuisine in the Southeast Asian nation.

Indonesia faces more barriers in palm oil exports Xinhua 24th Aug 2017
Indonesia is facing another trade barrier in its palm oil commodity exports after the one applied by European Community (EC) in April over green issue. 

CPO export increases by 25 percent in first half The Jakarta Post 24th Aug 2017
Exports of crude palm oil (CPO) and its derivative products increased by 25 percent to 16.6 million tons despite sober demand amid competition against a rapeseed and soybean oil global glut in the first six months, Indonesian Palm Oil Producers Association (GAPKI) data shows.

Indonesia denies biodiesel dumping allegation in US The Jakarta Post 24th Aug 2017
The government will ask the United States to review its latest anti-dumping measure against Indonesian biodiesel, according to Trade Minister Enggartiasto Lukita.

Indonesia expects to become self-sufficient in salt in 2019 The Jakarta Post 28th Aug 2017
Indonesia, which has suffered from declining salt production in recent months, is set to become self-sufficient in the commodity by 2019 as a government team has begun the process of transforming idle land into salt fields.

Agriculture Ministry to involve thousands of students to train farmers Antara News 25th Aug 2017
Agricultural Extension and Human Resource Development Agency of the Ministry of Agriculture will involve thousands of college students to assist farmers to ensure increased agricultural production. 

How Indonesia’s President monitors food security GovInsider 24th Aug 2017
Indonesia is under threat of food insecurity and undernutrition, and faces “alarmingly high” stunting levels. In 2007, an estimated 7.7 million children under five were stunted, according to the Food Security Portal. And when climate change is in the picture, things become much more complex. 

Health & Life Sciences

Health-Conscious Indonesians on the Rise, Growth of Nutritious Products Expected: Report Jakarta Globe 25th Aug 2017
Majority of Indonesian urbanites — or city dwellers — are eating healthier and exercising more this year, fueling the demand for high-protein foods and sports drinks in the country, according to report published by global marketing intelligence firm Mintel.

Indonesia calls for stronger health cooperation within ASEAN Xinhua 24th Aug 2017
The health ministry of Indonesia on Thursday urged ASEAN member nations to step up cooperation in the health sector in a bid to prevent the spread of diseases in the region. 

ICT

Jokowi highlights digital economy cooperation The Jakarta Post 7th Sep 2017
President Joko "Jokowi" Widodo has highlighted the importance of cooperation in the development of the digital economy during a joint press statement with Singaporean Prime Minister Lee Hsien Loong.

Bank Indonesia, Transport Ministry Team Up to Provide Cashless Commutes Jakarta Globe 7th Sep 2017
Bank Indonesia, the country's central bank, signed an agreement with the Ministry of Transportation on Wednesday (06/09) that will make daily commutes easier, safer and more efficient by allowing public transportation to accept non-cash payments.

Indonesia to build Batam as a digital industrial park Antara News 29th Aug 2017
The Indonesian government plans to build Batam Island as a digital industrial park to develop the digital economy and entertainment in the region. "Batam is a strategic city located near Singapore and Malaysia. We want to build Nongsa like the Silicon Valley in the US," Minister of Research, Technology and Higher Education Mohamad Nasir said here on Monday.

Indonesia's e-commerce market set to hit $130b by 2020 Telecom Asia 29th Aug 2017
Indonesia has the biggest and fastest growing online retail sector in Southeast Asia, according to Research and Markets. In this environment, RTB House, a provider of retargeting technology for advertisers, anticipates that Indonesia’s e-commerce players will increase adoption and reliance on retargeting to improve customer engagement and conversion rates, strengthen branding, and enhance ROI on their marketing spends.

China's JD.com Eyes Indonesia with Investment of Go-Jek eMarketer 29th Aug 2017
The move by China-based tech firms into Southeast Asia continues apace. But the ranks of Alibaba and Tencent, so far the most aggressive to expand into the region, are now being joined by Alibaba’s largest ecommerce rival in China, JD.com.

Alibaba Founder Jack Ma Agrees to Advise Indonesia on E-Commerce Jakarta Globe 23rd Aug 2017
Jack Ma, the founder of Chinese e-commerce giant Alibaba, has agreed to become an advisor to the Indonesian government to help the country tap the rapidly growing sector. Ma relayed his acceptance to Coordinating Economic Affairs Minister Darmin Nasution and Communications and Information Technology Minister Rudiantara during a meeting in Beijing on Tuesday (22/08).

Jack Ma says infrastructure is a ‘key challenge’ to Indonesia’s ecommerce growth Tech in Asia 23rd Aug 2017
Jack Ma, China’s richest man on the back of his Alibaba online shopping empire, said yesterday that infrastructure and logistics are key challenges to Indonesia’s burgeoning ecommerce industry. The comments came amidst a meeting in Beijing between Jack Ma and Indonesian ministers, for whom Ma is an official advisor on its digital economy. 

Ministry reviews court order to annul ride-hailing apps ruling The Jakarta Post 22nd Aug 2017
Transportation Minister Budi Karya Sumadi has said his ministry will need to review the content of Monday’s Supreme Court ruling, which ordered the annulment of 14 articles from Transportation Ministerial Regulation No. 26/2017 on ride- hailing apps.

Google expands its public Wi-Fi program for emerging markets to Indonesia TechCrunch 24th Aug 2017
Google is launching its public Wi-Fi program, which offers free connectivity at railway stations and other locations such as universities, in Indonesia, the company announced today.

Infrastructure

Indonesia's Regulator Eases Investment Rule to Aid Infrastructure Funding Jakarta Globe 6th Sep 2017
Indonesia's financial regulator has changed its rules governing investments by non-bank financial institutions, according to a new regulation signed last week, in a move aimed at getting those firms to support government infrastructure projects.

Govt to Commence Jakarta - Surabaya Train Project Next Year Tempo 6th Sep 2017
The Transportation Ministry expects the Jakarta - Surabaya semi high-speed train project development will be commenced in mid-2018.

Indonesia's national rail network aims for more growth, less inequality The Straits Times 4th Sep 2017
Indonesia has finalised its plan for a national railway network, which as envisioned by President Joko Widodo, will beef up land connections and support all seven of its key seaport hubs. 

Ministry is Rp431tn Short on Infrastructure Budget Tempo 31st Aug 2017
The of Public Works and Public Housing Ministry is Rp413.5 trillion short on infrastructure budget for the period of 2015 to 2019. "The new government's capability is only 67 percent of the budget required," the ministry's secretary-general Anita Firmanti said in Jakarta, Thursday, August 31.

Minister appoints new director general for sea transportation The Jakarta Post 25th Aug 2017
Transportation Minister Budi Karya Sumadi on Thursday appointed Bay Mokhamad Hasani as the ministry’s acting director general for sea transportation to replace Antonius Tonny Budiono, who was arrested by the Corruption Eradication Commission (KPK) on Wednesday.

Govt to Consult with Experts over Online Transportation Bill Tempo 23rd Aug 2017
Transportation Minister Budi Karya Sumadi said that he would consult with experts to address the issue with a bill on online-based transportation services. Earlier, the Supreme Court (MA) accepted a petition demanding the court to conduct a judicial review on the Transportation Minister’s Regulation No. 26/2017.

Indonesia to introduce tax breaks for low-carbon cars Nikkei Asian Review 23rd Aug 2017
The Indonesian government has drawn up a policy framework to fully promote environment-friendly cars, such as electric and hybrid vehicles. The key pillar of the new policy is to introduce tax breaks for low-carbon emission cars, with the goal of reducing emissions by 29% by 2030. 

Securing land still a problem for Indonesia rail project Nikkei Asian Review 24th Aug 2017
Indonesia is facing major delays in securing the necessary land for a planned high-speed railway, raising questions over whether Beijing should take the lead instead or if the railway will be finished at all. 

Manufacturing

Indonesian Manufacturing Back in Expansion Mode Jakarta Globe 6th Sep 2017
Indonesia's manufacturing sector has returned to growth in August, thanks to improving business confidence and rising demand for exports, according to the Nikkei Indonesia Manufacturing Purchasing Managers' Index report, released on Monday (09/04).