Indonesia Update: President Jokowi to Attend APEC Summit on Nov 10-11 in Vietnam

Indonesia Update | November 9, 2017
Authors: Kim Yaeger, Artha Sirait, Ian Saccomanno and Gaofan Zhang
 
 
THE COUNCIL'S TAKE
 
 

President Jokowi to Attend APEC Summit on Nov 10-11 in Vietnam

President Joko “Jokowi” Widodo is scheduled to attend the 25th Asia-Pacific Economic Cooperation (APEC) Summit from November 10-11 in Da Nang, Vietnam. 

President Jokowi is expected to arrive in Vietnam on November 10 and will attend the APEC Business Council meeting with among others, President Ji Xinping of China, President Pedro Pablo Kuczynski of Peru and Prime Minister Jacinda Ardern of New Zealand. President Jokowi is expected to discuss four priority areas chosen by Vietnam as this year’s APEC Summit Host: promoting sustainable, innovative and inclusive growth; deepening regional economic integration; strengthening micro, small and medium enterprises’ competitiveness and innovation in the digital age; and enhancing food security and sustainable agriculture in response to climate change. In addition, Indonesia’s Ministry of Foreign Affairs stated that President Jokowi will also focus on innovative growth as well as the issue of inclusion; how globalization can involve all elements of society.

It will be interesting to closely follow how the Jokowi administration addresses APEC’s efforts to simplify regulatory arrangements in an effort to reduce trade and investment barriers considering several competing domestic economic efforts that lean towards protectionism. Trade and investment policies in Indonesia have certainly undergone changes along with various patterns of development strategy over the past few administrations from an inward-looking import substitution strategy during the Indonesia oil boom in the early 1970s to more trade liberalization seen in the early 1980s when Indonesia removed some non-tariff barriers, notably import licensing and import monopolies. These efforts continued until the early 1990s when it became more politically sensitive to reduce protectionism and remove non-tariff barriers in certain sectors such as agriculture and manufacturing; a situation that Indonesia faces to this day.

Indonesia hosted APEC in 1994 where APEC launched the Bogor Goals of free trade and investment by 2020 for developing economies. Following the 1994 APEC Summit, Indonesia undertook a dramatic liberalization of foreign ownership restrictions. Significant shifts have continued happening since then, and President Jokowi’s participation in this year’s APEC Summit reiterates Indonesia’s commitment to achieve free and open trade and investment. Even though unlike the WTO, APEC has no treaty obligations and decisions made are reached by consensus on a voluntary basis, Indonesia will still benefit from its participation particularly at a time when the regional and global landscapes have experienced fundamental shifts.

U.S. President Donald Trump will address the APEC Summit and jointly all the leaders are anticipated to declare key cooperation points. The 2017 APEC Summit is especially important as it will provide us with further indication on how President Trump intends to position the United States in Asia-Pacific. Under the leadership of former President Barack Obama, the Trans Pacific Partnership Agreement was finalized with 12 economies out of the 21 APEC members, but it has since taken a significant turn.

 
 
IN THIS UPDATE
 
 
Regional Affairs
Mahathir's Bugis remarks: Indonesian V-P wants apology
Australia-Indonesia free trade talks ramp up

National Affairs
Task forces to be to accelerate ease of doing business
Police Issues Order of Investigation into KPK Leaders
Top Indonesia court overturns discriminatory religious law
Mandatory Organization of Long-Distance Ferry Services
Indonesia requires ministers, officials to report new regulations
Stability sought ahead of 2018 elections
Number of unemployed rises to 7.04 million

Economics
Investment increase to boost economic growth: VP
Investment has grown in line with business confidence: Finance minister
Govt boosts regulation and supervision for labor-intensive economic development ...

Financial Services
BI urges acceleration of fiscal stimulus package
Good Corporate Governance for Securities Companies Acting as Securities Underwriters and Securities Brokers
Finance Minister Meets Gojek CEO, Discuss Fintech
Consumer trust weakens in October: Bank Indonesia
Economy grows 5.06% in Q3

Health & Life Sciences
Asymptomatic Infection Helps Norovirus to Spread in Indonesia
Income Increases Bode Well for Indonesia In Vitro Diagnostics

ICT
Indonesia Plans Automated System to Flag Contentious Internet Material
Personal data protection bill 'priority' for House, ministry claims
New Personal Information Provision for Pre-Paid SIM-Card Registration

Infrastructure
Indonesia adopts PHL’s PPP model in addressing infrastructure-financing woes
Government to allocate Rp3.17 trillion for infrastructure development near Malaysia border
Bogor - Bandung Double Track to Cost Rp1.1 Trillion
 
ARTICLE CLIPS
 
 
Regional Affairs

Mahathir's Bugis remarks: Indonesian V-P wants apology The Straits Times 9th Nov 2017
Indonesian Vice-President Jusuf Kalla wants Malaysia's former prime minister Mahathir Mohamad to apologise over his remark linking the ancient seafaring Bugis people to pirates.

Australia-Indonesia free trade talks ramp up The Sydney Morning Herald 8th Nov 2017
Prime Minister Malcolm Turnbull is expected to meet Indonesian President Joko Widodo in coming days as the two countries hammer out the final details of the first free trade deal Indonesia has signed in almost a decade.

National Affairs

Task forces to be to accelerate ease of doing business Antara News 9th Nov 2017
Indonesia, which has been able to improve its ease of doing business index from 91 to 72, will establish task forces for ease of doing business in order to further improve its business climate.

Police Issues Order of Investigation into KPK Leaders Tempo 8th Nov 2017
The National Police confirmed that it has issued a notification letter to begin an investigation (SPDB) into alleged letter forgery and abuse of authority cases involving KPK chief Agus Rahardjo and deputy chief Saut Situmorang.

Top Indonesia court overturns discriminatory religious law Religion News Service 8th Nov 2017
Indonesia’s top court has overturned a law that denied recognition and legal rights to followers of indigenous faiths, in a surprise advance for religious freedom in the world’s most populous Muslim nation.

Mandatory Organization of Long-Distance Ferry Services Hukum Online 8th Nov 2017
The Ministry of Transportation has issued Regulation No. PM 107 of 2017 on Mandatory Organization of Long-Distance Ferry Services (“Regulation 107/2017”), which serve as a set of guidelines for companies which are involved in the organization such services (“Organizers”).

Indonesia requires ministers, officials to report new regulations The Jakarta Post 7th Nov 2017
In a bid to avoid overlapping regulations, a presidential instruction (Inpres) has been issued that requires ministers, high-ranking officials and heads of non-ministerial institutions to report any new regulations they want to issue to the relevant coordinating minister's office and/or the President . bbn)

Stability sought ahead of 2018 elections The Jakarta Post 7th Nov 2017
As the nation’s political spectrum is shaking up ahead of the simultaneous regional elections next year, pressure is on President Joko “Jokowi” Widodo to ensure that stability remains conducive to fulfill his ambitious programs, less than two years before his tenure ends.

Number of unemployed rises to 7.04 million The Jakarta Post 6th Nov 2017
The Central Statistics Agency (BPS) has recorded an increase in the number of unemployed people to 7.04 million in August, 2017, up from 7.03 million in the same month last year.

Economics

Investment increase to boost economic growth: VP Antara News 8th Nov 2017
Vice President Jusuf Kalla stated that the increase of domestic and foreign investment is important to boost economic growth that in the third quarter 2017 grew by 5.06 percent.

Investment has grown in line with business confidence: Finance minister Antara News 8th Nov 2017
Investment has grown positively in the third quarter owing to business confidence in the countrys economic conditions, Indonesian Finance Minister Sri Mulyani stated. "Investment has grown seven percent due to the confidence of business players," she remarked here on Wednesday.

Govt boosts regulation and supervision for labor-intensive economic development ... The Jakarta Post 8th Nov 2017
In order to improve the regulation and supervision mechanism regarding the government’s labor-intensive village economic development program, Coordinating Human Development and Cultural Affairs Minister Puan Maharani has just organized a ministerial coordination meeting on the optimization of the labor-intensive economic development budget.

Financial Services

BI urges acceleration of fiscal stimulus package The Jakarta Post 9th Nov 2017
Bank Indonesia has called on the government to accelerate the introduction of its fiscal stimulus package to boost economic growth in the fourth quarter.

Good Corporate Governance for Securities Companies Acting as Securities Underwriters and Securities Brokers Hukum Online 8th Nov 2017
The Financial Services Authority (Otoritas Jasa Keuangan - “OJK”) has issued Regulation No. 57/POJK.04/2017 on the Implementation of Good Corporate Governance by Securities Companies Acting as Securities Underwriters and Securities Brokers ("Regulation 57/2017"), with the overall objective of improving the quality of securities companies, as well as ensuring customer protection....

Finance Minister Meets Gojek CEO, Discuss Fintech Tempo 7th Nov 2017
Finance Minister Sri Mulyani has met Gojek CEO Nadiem Makarim to discuss the development of financial technology (fintech) in Indonesia. Makarim said that Finance Minister Sri Mulyani wanted to know more about fintech in general and the ever-growing digital revolution.

Consumer trust weakens in October: Bank Indonesia The Jakarta Post 7th Nov 2017
A recent Bank Indonesia survey shows that consumer trust has weakened in October due to a perceived decrease in jobs, declining incomes and continuing poor economic condition in the coming six months, Antara reported on Monday.

Economy grows 5.06% in Q3 The Jakarta Post 6th Nov 2017
Economic growth stood at 5.06 percent year-on-year (yoy) in the third quarter of this year, slightly more than the 5.01 percent recorded in the previous quarter, the Central Statistics Agency (BPS) announced in Jakarta on Monday.

Health & Life Sciences

Asymptomatic Infection Helps Norovirus to Spread in Indonesia Infection Control Today 6th Nov 2017
Norovirus is the most common cause of acute gastroenteritis in humans. A Japanese research team has shown that norovirus is significantly present in the stools of healthy volunteers in Indonesia who are asymptomatically infected with the virus. This suggests that asymptomatic infection is a source of norovirus outbreaks, and sheds light on the transmission mode of the virus.

Income Increases Bode Well for Indonesia In Vitro Diagnostics Business Insider 6th Nov 2017
 Indonesia offers compelling opportunities for companies targeting healthcare markets in Southeast Asia, according to Kalorama Information. The healthcare market research firm said that the number of people with household expenditure exceeding $200 per month is expected to reach 141 million by 2020 (from 74 million in 2013). This improvement, according to Kalorama Information's new report Indonesia IVD Market Analysis, translates into an estimated 233 million-dollar IVD market.  One that is expected to grow faster than the IVD market average worldwide.There are other positive factors: expectancy has also gone up and child mortality rates have declined significantly.

ICT

Indonesia Plans Automated System to Flag Contentious Internet Material Jakarta Globe 8th Nov 2017
Indonesia plans to launch in January a new automated system using 44 servers to help block websites displaying content such as pornography or extremist ideology, a Communications Ministry official said on Wednesday (08/11).

Personal data protection bill 'priority' for House, ministry claims The Jakarta Post 8th Nov 2017
The Communications and Information Ministry will urge the House of Representatives to pass the personal data protection bill as the latter has listed it in its 2018 national priority legislation program (Prolegnas), the ministry’s highest ranking official said.

New Personal Information Provision for Pre-Paid SIM-Card Registration Hukum Online 6th Nov 2017
The Ministry of Communication and Informatics (“Ministry”) has issued Regulation No. 21 of 2017 (“Second Amendment”), which makes a second amendment to Ministry Regulation No. 12 of 2016 on the Registration of Telecommunications Service Customers (“Regulation 12/2016”)....

Infrastructure

Indonesia adopts PHL’s PPP model in addressing infrastructure-financing woes BusinessMirror 9th Nov 2017
While taking a back seat in the Duterte administration’s infrastructure-development program, the Filipino brand of public-private partnership (PPP) has been adopted by Jakarta as the new cornerstone of Indonesia’s plan to bridge its own infrastructure gap.

Government to allocate Rp3.17 trillion for infrastructure development near Malaysia border Antara News 8th Nov 2017
The central government is set to allocate another Rp3.17 trillion for the construction of several facilities near the border with Malaysia in North Kalimantan province. In a press statement released on Monday, North Kalimantan Governor Irianto Lambrie said he has received information that the central government would increase the budget fund for the construction of several facilities in the new province.

Bogor - Bandung Double Track to Cost Rp1.1 Trillion Tempo 8th Nov 2017
Transport Minister Budi Karya Sumadi said construction of double track railway between Bogor and Bandung via Sukabumi and Cianjur is estimated to cost Rp1.1 trillion.