Sri Mulyani Wary of Donald Trump`s Steel Import Policy Tempo 6th Mar 2018
Finance Minister Sri Mulyani commented on U.S. President Donald Trump’s policy plan to impose a 25 percent import duty for steel products. Many people worry that the policy will have an effect towards Southeast Asian countries such as Indonesia. “If the rhetoric of retaliating through tariffs happen, history has proven that it is bad for the global economy if a trade-war takes place,” said Sri Mulyani at the Coordinating Ministry of Economic Affairs today, March 6. However, Sri Mulyani was reluctant to comment any further, she said that the U.S. itself is still faced with dynamics regarding that specific policy between President Donald Trump and members of the senate and congress. China as one of the largest steel producers in the world, that sells its product to the United States, is predicted that it would look for other alternative markets such as ASEAN countries including Indonesia.
Vietnam reopens market for Indonesian exports of automotive products Antara News 2nd Mar 2018
Defense & Security
Vietnam has agreed to reopen its market for Indonesian exports of automotive products after the Indonesia government agrees to comply with the Vietnamese import regulation on certificate of Vehicle Type Approval (VTA) for completely built-up (CBU) vehicles. Indonesia could not continue exports of automotive products in CBU form to Vietnam following change in the Vietnamese policy with two new regulations on imports of motor vehicles. "The Indonesian government will submit document on change in UTA certificate to the government of Vietnam hoping to have response in the first opportunity. We hope we would be able to soon resume exports of automotive products to Vietnam," Director General of Foreign Trade Oke Nurwan, said in a written statement received here on Friday. The two regulations are Prime Minister Decree No. 116/2017 (Decree on Requirements for Manufacturing, Assembly and Import of Motor Vehicle and Trade in Motor Vehicle Warranty and Maintenance Services) and Circular No. 03/2018 (regulation on the checking on imported automobiles for technical safety and environmental protection in line with the Decree No. 116/2017/ND-CP).
Exercise Cobra Gold Strengthens Interoperability, Regional Relationships U.S. DEPARTMENT OF DEFENSE 26th Feb 2018
WASHINGTON, Feb. 26, 2018 —Some 5,800 U.S. service members, working in Thailand alongside forces from 29 partner nations, have wrapped up one of the largest security cooperation exercises in the Indo-Pacific region. Pentagon spokesman Army Col. Rob Manning told reporters today that Cobra Gold 18, which ended Feb. 23, sought to improve participants’ capability to plan and conduct combined and joint operations, to build relationships among participating nations across the region, and to improve interoperability over a range of activities, including enhancing maritime security and responding to large-scale natural disasters.
Tax Office Granted Elevated Access to Professionals' Bank Accounts, Client Records Jakarta Globe 6th Mar 2018
The tax office announced new methods to evaluate the gross income of independent professionals like artists, architects, doctors, lawyers and writers, as well as small businesses. Under a new regulation, which will come into effect on Feb. 13, the tax office will scour taxpayers' bank accounts and previous tax returns and directly question businesses regarding the number of customers served and items sold, should the office suspect taxpayers of underreporting their taxes.
Hundreds of investors to attend regional investment forum, says BKPM The Jakarta Post 6th Mar 2018
The Investment Coordinating Board (BKPM) will invite at least 550 investors to attend a regional investment forum on the tourism sector to be held in Yogyakarta on March 14. BKPM chairman Thomas “Tom” Trikasih Lembong said the forum was intended to boost investment in tourism, especially in Yogyakarta, as the sector was promising and created multiplier effects, which could reach the grass root level of society. “The theme of this year’s meeting is economic connectivity, in which investments have to be aligned with globalization and an integrated global supply chain,” he told reporters in Jakarta on Tuesday. Investment realization in the tourism sector reached 20 percent based on a compound annual growth rate between 2013 and 2017, BKPM’s data showed. Meanwhile, realization in 2017 alone grew by 31 percent year-on-year (yoy), according to the data.
Govt Working on Pension Fund to Improve Civil Servants Welfare Tempo 5th Mar 2018
The government is working on a civil servant’s (PNS) pension fund financing scheme to improve pensioners’ welfare, said Minister of Administrative and Bureaucratic Reform (MenPAN-RB) Asman Abnur. According to MenPAN-RB, pension fund received by retired civil servant are currently small to finance their daily lives. “Imagine echelon I, whose income is around Rp40 million, once they retire only get Rp4.5 million per month,” said Asman after attending the launch of an online-based community service program in the area of the car-free day (CFD ), Imam Bonjol, Jakarta, Sunday, March 4.
Trade minister hopes ASEAN-EU FTA will help SMEs The Jakarta Post 4th Mar 2018
Indonesia has expressed its hope that a free trade agreement (FTA) between ASEAN and the European Union (EU) can boost small and medium enterprises (SMEs) and subdue a negative campaign against palm oil. Speaking during the 16th consultation of ASEAN Economic Ministers (AEM)-EU Trade Commissioner in Singapore on Friday, Trade Minister Enggartiasto highlighted the crucial role of SMEs and palm oil in Indonesia’s economy. “The FTA between ASEAN and EU must contain programs that can boost SMEs. Points in the agreement must also help counter the negative campaign against palm oil,” he said to delegates in the meeting as quoted in a press statement from the Trade Ministry.
Bali ready to host IMF-WB annual meeting: IMF official The Jakarta Post 2nd Mar 2018
International Monetary Fund (IMF) managing director Christine Lagarde has expressed optimism that Indonesia is ready to host the annual IMF-World Bank meeting in Bali, which will be held from Oct. 12 to 14. Having visited the venue for the international event in Bali Nusa Dua Convention Center in Bali, Lagarde confirmed the decision to hold the annual meeting in the Island of Gods. "I'm very happy to confirm that we have made the irrevocable, irresistible decision to confirm the meeting of the IMF and World Bank here in Bali in October," she said in Bali on Friday. “I have every confidence that here in Bali, we will have a successful event.” She added that this year’s annual meeting location had generated a lot of excitement among the members of the IMF and the World Bank. "There is a lot of excitement in the membership about going to Bali and having our annual meeting in Bali. Unfortunately we will have to do a lot of work, and the delegates will have to avoid the sun, the blue sky and the beautiful vegetation for a few days,” she said, while adding that she hoped after the meeting some of the delegations would prolong their stay to enjoy Indonesia. (bbn)
Energy Ministry Scraps Hundreds of Troubling Regulations to Boost Investment Jakarta Globe 6th Mar 2018
Indonesia has revoked 186 regulations in the energy and mineral resources sectors that were considered troubling, as the country seeks to improve the investment climate, while improving the ease of doing business, a minister said. "This is important, as was instructed by the president; we have to be business- and investment-friendly to increase employment and boost economic growth," Energy and Mineral Resources Minister, Ignasius Jonan said at a press conference in Jakarta on Monday (05/03).
Fuel, electricity prices to remain unchanged until 2019 The Jakarta Post 6th Mar 2018
President Joko “Jokowi” Widodo has insisted on maintaining the current prices of electricity and certain types of fuel until at least the end of 2019, when he completes his term, saying it was part of an effort to preserve the people’s purchasing power. Subsequently, the prices of Premium gasoline (RON 88) and subsidized diesel Solar will stay at 6,450 (49 US cents) and Rp 5,150 per liter, respectively. These rates have been in place since April 2016, even though the price of global crude continues to rise. Meanwhile, the price of low voltage electricity for non-subsidized customers of state electricity firm PLN will remain unchanged at Rp 1,467.28 per kilowatt hour (kWh). Prices for mid-voltage and high-voltage electricity will also still hover at Rp 1,114.7 and Rp 996.74 per kWh, respectively. “As instructed by the President, [...] the prices of Premium and Solar will remain unchanged [until 2019]. We will do our best to keep the prices at the current level,” Energy and Mineral Resources Minister Ignasius Jonan said on Monday evening.
Government to raise energy subsidies in 2018 Antara News 6th Mar 2018
The government will increase energy subsidy allocation this year as a result of the increase in the world crude prices, which exceed the state budget assumption at US$48 per barrel. "The energy and mineral resources minister and the state-enterprises minister have calculated the needed subsidy addition yesterday," Finance Minister Sri Mulyani said in Jakarta on Tuesday. Mulyani stated that the increase in the energy subsidies included diesel oil for state-owned oil and gas firm Pertamina. It will receive additional subsidy from the current allocation of Rp500 per liter. "The subsidy for diesel oil in the state budget law was decided at Rp500 per liter. However, it is no longer adequate based on the daily condition. We are now calculating how much an additional subsidy would be needed, and we will report it to the House of Representatives (DPR)," Mulyani noted.
Govt pushing ahead with locomotive biodiesel plans The Jakarta Post 5th Mar 2018
The government will decide whether to resume the 20 percent biodiesel blend ( B20 ) policy for the locomotive sector by the end of June, when it expects to complete a fuel performance test in Sumatra. The government decided in May 2017 to relax the B20 policy for locomotives operated by state-owned railway company PT KAI following sporadic cases of engine failure the company experienced since the policy was first implemented in 2016. Since January, the government has been testing the performance of locomotives manufactured by two American companies, General Electric (GE) and Electro-Motive Diesel (EMD), running on 20 percent-blended biodiesel on the Tarahan-Tanjung Enim railway from Lampung to South Sumatra. “The testing will run for six months until June,” the Energy and Mineral Resources Ministry's bioenergy director, Andriah Feby Misna, said recently.
Jokowi’s 35,000 MW program only reaches 3.8 percent progress The Jakarta Post 4th Mar 2018
The government revealed that the progress of its flagship 35,000-megawatt (MW) electricity procurement program had only reached 3.8 percent as of Feb. 1 since its launch in May 2015. President Joko “Jokowi” Widodo’s administration initially planned to develop power plants with a combined capacity of 35,847 MW by 2019, more than 75 percent of which would be constructed by independent power producers (IPPs), while the rest would be the responsibility of state electricity firm PLN. However, as of Feb. 1, only 1,362 MW worth of plants had commenced operations, 17,116 MW had begun construction, while 12,693 MW had been contracted and the remainder had only reached the procurement and planning stages. Nevertheless, the Energy and Mineral Resources Ministry’s spokesperson, Agung Pribadi, said the figures signified forward movement in the country’s electricity sector, especially considering that only 1,061 MW worth of plants had commenced operations in November last year.
Coal prices projected to remain healthy in 2018 The Jakarta Post 4th Mar 2018
Global coal prices are expected to remain healthy throughout 2018 owing to stable demand from China and increasing consumption in India, says the World Coal Association (WCA). WCA chief executive Benjamin Sporton projected that demand from China would continue to be reasonably strong this year, despite the country’s plan to implement a huge gasification program for households and industries to reduce its dependence on coal. Furthermore, he said India would also increase its coal imports amid soaring demand from its power generation sector and lower-than-expected domestic production. “India is not in a shortage situation, but it is running very closely behind it, and that’s really what has driven coal exports into India, and a good chunk of that is coming from Indonesia,” Benjamin told The Jakarta Post recently.
Foreign investors allowed to bid for big mining concessions The Jakarta Post 5th Mar 2018
The government has allowed foreign investors to bid for mining concessions with a total area of more than 500 hectares, while smaller areas will be prioritized for regional administration-owned enterprises (BUMD) operating in their regions. The Energy and Mineral Resources Ministry recently issued Regulation No. 11/2018 through which it introduced detailed stipulations regarding the auction of expired mining areas previously operated by various mining permit holders in the country. Under the regulation, mining concessions with areas less than 500 ha will be offered through a tender process to BUMD first, before being offered to national private companies, cooperatives and individuals as the least priority option.
Company in focus: Indonesia's biggest state bank embraces digital disruption Nikkei Asian Review 2nd Mar 2018
As president of Indonesia's Bank Mandiri, Kartika Wirjoatmodjo has spent most of the past two years tackling a mountain of bad loans that has squeezed the state-owned lender's bottom line and hampered expansion plans overseas.
Indonesia: WanaArtha Life on infrastructure development funding through PPP Asia Insurance Review 1st Mar 2018
Indonesia’s life insurance sector hopes to accelerate the pace of funding for infrastructure developments in the country, and the wider Southeast Asia region, through promoting public-private partnerships (PPP), Ms Evelina Pietruschka, President Commissioner of WanaArtha Life, told Asia Insurance Review while attending the recently-concluded World Economic Forum in Davos, Switzerland. Ms Pietruschka, who is also Secretary-General of the ASEAN Insurance Council, believes the ASEAN insurance industry has a key role to play in bridging the infrastructure gap in the region. And she hopes that Indonesia can take the lead in creating a viable partnership model between the insurance industry and the public sector.
President shares information on health insurance program with IMF director Antara News 26th Feb 2018
President Joko Widodo (Jokowi) shared information on the National Health Insurance Program, implemented in Indonesia in the form of the BPJS and Indonesian Health Card, with the International Monetary Fund (IMF) Managing Director Christine Lagarde. During a visit to the Pertamina Central Hospital in Kebayoran Baru, South Jakarta, where Lagarde was also invited, President Jokowi said he was keen to highlight that Indonesia has a good health insurance program in place. "We want to demonstrate that Indonesia has a National Health Insurance system under the name of BPJS and the Indonesian Health Card (KIS), and I mentioned that the KIS has 92.4 million members and BPJS has 193.1 million. We have given to the community," President Jokowi explained.
Indonesia, Singapore exchange financial information Vietnam Plus 25th Feb 2018
Indonesia and Singapore will begin to implement the Automatic Exchange of Information (AEOI) agreement in September 2018, according to Indonesia’s Antara news agency. John Hutagaol, a tax expert of Indonesia’s Finance Ministry, said the Indonesian Government is preparing regulations, infrastructure, as well as human resources for the implementation of the agreement. On the other hand, Singapore will automatically share financial information on Indonesian nationals once the AEOI is implemented, he said.
Jokowi Nominates Perry Warjiyo as New Central Bank Chief Jakarta Globe 24th Feb 2018
Food & Agriculture
President Joko "Jokowi" Widodo has chosen Bank Indonesia Deputy Governor Perry Warjiyo as his sole nominee for central bank governor for 2018-2023, a lawmaker said on Saturday (24/02). The president has submitted his nomination to the national legislature for approval, but it has not yet reached House of Representatives Commission XI, which oversees finance and the banking sector. "This is true, but we are currently in recess, so we have not officially received the nomination submitted by the president to leaders of the legislature," Commission XI member Willgo Zainar told the Jakarta Globe.
Trade Minister Guarantees Rice Stock until Eid Tempo 6th Mar 2018
Trade Minister Enggartiasto Lukita guarantees there is enough rice stock until Eid el Fitr, which falls in June. According to Enggartiasto, the current stock of rice—including those that will be imported—is enough to meet the demand of the people. The minister also said that rice farmers will be harvesting soon, and hopes that it would help curb rice prices in markets. "After a grand harvest, rice prices will surely go back to normal," he said when visiting Giriroto Village in Boyolali Regency, Tuesday, March 6. Enggartiasto is in Boyolali to inaugurate pilot project of Hypermart Partnership Network with traditional stalls. To maintain the stability of rice prices in rural areas, Enggartiasto said his ministry will provide sufficient supply to each market. Therefore, Enggartiasto has asked the Logistics Agency (Bulog) to ensure there is enough supply of medium-quality rice.
Bulog to disburse 400,000 tons of subsidized rice in March The Jakarta Post 2nd Mar 2018
The National Logistics Agency (Bulog) will distribute 400,000 tons of subsidized rice in an attempt to stabilize the price in March. Of the 400,000 tons, 250,000 tons was taken from the March allocation, while the remaining allocations were in January and February, said Bulog president director Djarot Kusumayakti after meeting with President Joko "Jokowi" Widodo at the Presidential Palace in Jakarta on Friday. Meanwhile, a further 150,000 tons of rice from the April allocation would be pushed forward to March he said, adding: "The President has allowed us to distribute April’s allocation in March.” According to data from the Central Statistics Agency (BPS) released on Thursday, the price of all qualities of rice had increased in February compared to January. The price of premium rice increased by 0.31 percent, while the prices of medium and low quality rice increased by 0.37 percent and 1.99 percent respectively.
President, economists discuss food problems Antara News 28th Feb 2018
President Joko Widodo has invited 11 economists to the State Palace to discuss food problems in the country. "President Joko Widodo and 11 economists in the field of agriculture and fisheries discuss food problems and poverty," an economist from the Bogor Institute of Agriculture (IPB) Bayu Krisnamurthi said here on Tuesday. Based on data from the Central Bureau of Statistics (BPS), the stability of food prices has helped reduce poverty in Indonesia. The economists urged the government to concern about the increase of rice price. Krisnamurthi pointed out that the meeting also discussed the country`s rice production data, changes in rice consumption, and farmers` welfare.
Ministry to draft regulation on sustainable palm oil Antara News 24th Feb 2018
Health & Life Sciences
The Economy Coordinating Ministry stated here on Friday that it will draft the Presidential Regulation (Perpres) to strengthen the certification of Indonesian Sustainable Palm Oil (ISPO). "The (presidential) regulation is aimed at improving the supervision of (ISPO) certification," Musdhalifah, ministry`s deputy of foods and agriculture, stressed during a talk in Jakarta on Friday. She explained that a regulation was needed to synchronise all stakeholders, including Agriculture Ministry, Forestry and Environment Ministry, Industry Ministry, and the Trade Ministry. As one of the stakeholders, the Agriculture Ministry should maintain cooperation with the Forestry Ministry, because the latter determines which land is available for palm oil plantation.
Indonesia's Medical Equipment Market Value May Reach IDR13.5 Trillion This Year Netralnews 9th Mar 2018
Indonesia's medical equipment market in 2018 is estimated to exceed US $1 billion or equivalent to IDR13.5 trillion. However, foreign products still dominate 92 percent of the market, with the remaining market share owned by local products. Therefore, local innovators are encouraged to seek and engage middle-class health technology to strengthen the competitiveness of local products in terms of value and volume. "Based on conservative data, our medical equipment market value has surpassed US $1 billion, or equivalent to IDR13.5 trillion. The market is still dominated by foreign products, such as CT-Scans that can reach IDR8 billion per unit. Meanwhile, local [manufacturers] are still struggling in hospital bed technology, in which these products are sold for just IDR30 million, and some even cheaper, "said Ahyahudin Sodri, Executive Manager of the Association of Indonesian Medical Equipment (ASPAKI) in Jakarta, Tuesday (6/3/2018).
Indonesia's first biomedicine factory opens Nikkei Asian Review 1st Mar 2018
Indonesia's largest pharmaceutical company, Kalbe Farma, inaugurated its first biological drug factory on Tuesday, as it aims to produce higher-margin prescription drugs amid heated competition in the country's pharmaceutical industry. The factory, run by subsidiary Kalbio Global Medika, sits across an 11,000-square-meter site in an industrial zone in Cikarang, east of Jakarta. Kalbe invested 500 billion rupiah ($35 million) to construct the factory. Another 200 billion rupiah has been set aside to support research and development, and to transfer technology from Chinese and South Korean partners to support the operation, Kalbe said in a press statement.
IMF director lauds Indonesia`s health care system Antara News 28th Feb 2018
President Joko Widodo (Jokowi) stated that the Managing Director of the International Monetary Fund (IMF), Christine Lagarde, has lauded Indonesia`s national health system during a visit to the Pertamina Central Hospital on Monday. "Madame Lagarde was amazed. She also stated that Indonesia may be the only country in the world, with such large population, where the government covers the health insurance of the citizens. There are other countries that implemented similar systems, but they are significantly smaller in terms of population," Jokowi stated at the Delta Silicon industry area, Cikarang, West Java on Tuesday.
Ministry's decision to block Tumblr sparks outcry The Jakarta Post 6th Mar 2018
The Communications and Information Ministry officially released a statement on Tuesday regarding the blocking of microblogging and social networking website Tumblr. On Twitter, the ministry announced that its Content Complaint Team had received complaints from the public related to indecent content on Tumblr. Following an investigation and content analysis, it stated that there were more than 360 indecent accounts found on the platform's social media tumblr.com and application. "We also found that T*mb*r does not have a mechanism nor reporting tools to report indecent content," read the statement. "On Feb. 28, 2018, the Content Complaint Team then sent a notification email to T*mb*r and asked T*mb*r to clean its platform of indecent content, with a maximum response time of 2 x 24 hours." It added that Tumblr had given no response regarding the complaint after the time limit was up, "Thus [we] have blocked eight [domain name systems] DNSs [owned by] T*mb*r on Monday afternoon, March 5, 2018."
Govt calls on mobile phone users to recheck personal data The Jakarta Post 5th Mar 2018
The Communications and Information Ministry, along with the Population and Civil Registration Agency, suggested that prepaid mobile phone users check their citizenship identity (NIK) and family card (KK) numbers with respective telecommunication providers, as reported by Kontan. Rechecking personal information was deemed necessary following concerns over the security of personal data voiced by users across the country. A mobile phone user tweeted that his NIK and KK had been registered under 50 unique numbers. Websites to check personal data are as follow: Telkomsel users may check on: https://telkomsel.com/cek-prepaid Indosat Ooredoo users can visit: https://myim3.indosatooredoo.com/ceknomor/index Tri Indonesia users can visit: https://registrasi.tri.co.id/ceknomor Smartfren users can visit: https://my.smartfren.com/check_nik.php Prepaid mobile phone users were required to to register their phone numbers along with their KK and NIK by Feb. 28, after which respective providers would gradually block unregistered numbers.
Less than half of 120 fintech firms registered at OJK The Jakarta Post 5th Mar 2018
From about 120 financial technology (fintech) companies currently operating in Indonesia, only 36 have registered with the Financial Services Authority (OJK). Of the 36 companies, 34 operate in Greater Jakarta, while the remaining two are situated in Surabaya, East Java, and Ternate in North Maluku, according to the acting commissioner of OJK’s non-bank financial industry supervisory department, M. Ihsanuddin as reported by kompas.com. He added that 21 companies were supported by domestic investors, while 15 companies sourced their capital from foreign investors. Another 42 fintech companies have expressed interest in registering with the OJK. Ihsanuddin conceded that it was difficult for the OJK to identify the exact number of fintech companies operating in the country.
Gov't Will 'Weed Out' Hatemongers and Hoaxers Jakarta Globe 5th Mar 2018
Chief Security Minister Wiranto on Monday (05/03) said the government is committed to fighting hate speech and fake news, and candidates in upcoming elections should eschew hoaxes in their political campaigns. Wiranto told reporters he had requested that the National Police hunt down and prosecute individuals, groups or organizations responsible for disseminating hoax news stories. "We will weed them out," he stressed. The minister also gave a warning to politicians regarding the content of their campaigns in June's regional and next year's legislative and presidential elections. "Campaigning is permitted, but you must not take advantage of hoaxes, hate speech or issues concerning religion and ethnicity," Wiranto said, adding that such campaigns can only result in chaos. He said the government has a special inter-institutional team that relies on various new technologies to counter the spread of fake news in the country.
Indonesia, Singapore to implement AEOI in 2018 Antara News 24th Feb 2018
The governments of Indonesia and Singapore will begin to implement the Automatic Exchange of Information (AEOI) agreement in Sept 2018, the Finance Ministry`s International Tax Deputy John Hutagaol said. "We will start to exchange information (on financial information) in Sept next year," he stated after attending an event of Indonesian Investment Outlook 2018 in Jakarta, Friday (Feb 23). The Indonesian government now, according to Hutagaol, is still preparing regulations, infrastructures, as well as human resources for the implementation of the agreement. On the other hand, Singapore will automatically share the financial information on Indonesian nationals to the government once the AEOI is implemented.
Groups to challenge phone registration policy over security concerns The Jakarta Post 5th Mar 2018
Three civil society organizations (CSO) have announced plans to legally challenge the government’s mandatory phone registration policy, arguing that it compromised the safety of private data. The Legal Aid Institute for the Press (LBH Pers), the Indonesian Legal Aid and Human Rights Association (PBHI) and the Southeast Asia Freedom of Expression Network (SAFEnet) said they have compiled reports from mobile phone users who claimed their personal information had been stolen because of the program. One user, for example, reported that despite having only one phone number, his family card (KK) and citizenship identity (NIK) numbers had been registered under 50 different SIM cards. “Forcing or requiring [mobile phone users] to submit their personal data to their mobile provider, which is a third and a private party, without any [security] guarantee is terrible,” PBHI program coordinator Julius Ibrani told The Jakarta Post on Monday. He added that a lawsuit against the program would seek to protect the personal data of mobile phone users.
State-owned enterprises, TNI sign MoU on infrastructure development Antara News 5th Mar 2018
The State-Owned Enterprises Ministry and The Indonesian Military (TNI) have agreed to establish cooperation to accelerate infrastructure development. The agreement was marked by the signing of a Memorandum of Understanding (MoU) between State-Owned Enterprises Minister Rini M. Soemarno and TNI Commander Marshal Hadi Tjahjanto in Cilangkap, Jakarta, on Monday. Soemarno explained that the cooperation was a form of synergy between the Ministry of State-Owned Enterprises and the TNI for the implementation of their respective duties and functions. The Ministry of State-Owned Enterprises and the TNI utilized human resources (HR), education, training, and others. "The TNI will support the tasks and functions of the Ministry of State-Owned Enterprises as an agent of development," he stated.
Gov't Allows Work on 34 Elevated Infrastructure Projects to Proceed After Safety Audit Jakarta Globe 28th Feb 2018
The Ministry of Public Works and Housing has allowed work on 34 elevated infrastructure construction projects to resume after the National Construction Safety Committee finalized a series of safety audits. Public Works and Housing Minister Basuki Hadimuljono last week announced the suspension of work on 36 projects, most of which involve transportation infrastructure, after several construction accidents in short succession. The most recent accident, which brought the total for the past two years to 14, occurred just hours before the minister was to announce a suspension of work on the Bekasi-Cawang-Kampung Melayu Toll Road project in East Jakarta following an accident that resulted in seven workers sustaining serious injuries when a concrete mold collapsed.
Infrastructure setbacks in Indonesia reflect broader risks Global Risk Insights 7th Mar 2018
President Jokowi’s desire to secure his infrastructure vision before next year’s election holds risks for Indonesia as well as his own candidacy. Doubts are growing over Indonesian President Joko ‘Jokowi’ Widodo’s infrastructure vision, following a spate of construction-related accidents on elevated toll roads and railways. 15 accidents have occurred over the past six months, mainly at Jakarta sites handled by state-owned enterprises (SOEs). Nine people have been killed and many others injured, leading to a suspension of work pending enquiries. These accidents necessitate reflection upon the broader risk that Jokowi’s lofty ambitions carry. His desire to realise as many projects as possible before the 2019 election has influenced construction companies to overemphasise project progress at the expense of required safety measures and quality management procedures. If not addressed, economic and logistical risks associated with these projects will mushroom into broader political risks for the government moving forward.
Indonesia to restart 38 infrastructure projects after safety review Reuters 2nd Mar 2018
Indonesia said on Friday it would allow work on 38 of 40 suspended elevated infrastructure projects, including rail and road works, to resume after they passed a safety review.Indonesia suspended construction after a series of accidents raised concern about safety as the government boosts infrastructure development. Under the drive, a series of projects ranging from a subway in traffic-clogged Jakarta to seven new airports and thousands of kilometres of road are being built, many by state-owned enterprises.The Ministry of Public Works and Housing on Friday said that the 38 projects had been allowed to resume work, although some still needed to address issues.