Indonesia Update: August 1, 2018

Indonesia Update | August 1, 2018
Authors: Kim Yaeger, Artha Sirait, Ian Saccomanno and Rocky Intan
 
THE COUNCIL'S TAKE
 
 

New Regulation on Foreign Workers Recruitment by the Ministry of Manpower

On July 11, the Ministry of Manpower issued Regulation No. 10 of 2018 on the Recruitment of Foreign Workers (Regulation 10/2018) as one of the implementing regulations of Presidential Decree No. 20 of 2018 on the Utilization of Foreign Workers (Decree 20/2018) issued on March 26. Regulation 10/2018 aims to attract foreign investment through the simplification of work permits for foreign workers. As of March 2018, Indonesia has approximately 126,000 foreign workers in Indonesia majority of whom are from China, followed by Japan, Singapore, Malaysia and the United States as stated by Manpower Minister Hanif Dhakiri.

Regulation 10/2018 simplifies the issuance of work permits by eliminating the previously required IMTA (Permit to Employ an Expatriate) and treating an approved RPTKA (Expatriate Deployment Plan) as interchangeable. Previously, RPTKA was a prerequisite for an employer to secure an IMTA, a precondition to obtain visa and residence permit. Per Regulation 10/2018:

  • The RPTKA validity period has been changed from five years to the period of the relevant employment agreement. Employers must submit their applications for RPTKA via TKA Online, a web-based application service provided through the Ministry of Manpower website, by completing and uploading the relevant forms. If the requirements are met, approval will be granted in two working days. It is currently unclear how the TKA Online system operates with the establishment of Indonesia’s Online Single Submission (OSS).
  • Employers who employ any foreign workers are required to submit annual reports regarding the implementation of foreign workers recruitment; and educational and training programs for domestic co-workers – to Director-General for Development, the Allocation of Workers, and the Expansion of Job Opportunities at the Ministry of Manpower.
  • For every foreign worker recruited, employers are obligated to pay the Compensation Funds for the Utilization of Foreign Workers (DKP-TKA) of US$100/month for every foreign worker recruited. This payment is typically paid annually in advance through a government-appointed bank. In the past it has been administered by Bank BNI. This payment requirement is exempted for government institutions, foreign representations, international organizations, social organizations, religious institutions, certain positions in education institutions, and shareholding member of board of directors and board of commissioners.

Regulation 20/2018 also states that employers are obliged to provide Bahasa Indonesia language training for foreign workers. However, the new rule is not applicable for foreign workers employed in emergency or urgent situations, those in temporary employment (up to 6 months), founding members, members of management, supervisory boards, board of directors or board of commissioners. The regulation does not specify the technical level of proficiency to reach, the length of training, or the enforcement mechanism. Regulations requiring foreign workers to be able to communicate in Bahasa Indonesia is not a new theme in Indonesia since at least 2008, although implementation has varied. Now under Regulation 10/2018, technically there is no requirement for foreign workers to be able to speak Bahasa Indonesia but the employers of foreign workers must facilitate a language training for the foreign workers. While the simplification of IMTA/RPTKA is a move in the right direction, the requirements of language training and reporting are cumbersome, and could lead to confusion when it comes to implementation – which has been the case with the employment of foreign workers in Indonesia for the past few years.

Indonesia would benefit from the employment of foreign workers as it would be able to further develop particular sectors through knowledge sharing, in which the Jokowi administration has identified to develop e.g. Digital Economy and E-Commerce in which Indonesia targets to become its backbone by 2020, with an ambitious plan to achieve an online business value of US$130 billion also by 2020. In addition, foreign workers would also increase Indonesian workers’ competitiveness with other countries. Employment practices of foreign workers in Indonesia have been vague for years. Despite the fact that Indonesia only employs a fraction of foreign workers, it continues to be a controversial topic, making it an effective campaign issue in the lead up to election season particularly in relation to workers from China.

Recent Moves in Vice Presidential Candidates

As the August registration deadline by the General Elections Commission draws near, rumors of potential vice-presidential (VP) candidates have also been swirling around.

On July 24, Democratic Party chairman and former president Susilo Bambang Yudhoyono held a joint press conference with Prabowo on the possibility of a coalition in the 2019 presidential election. “The path to building this coalition is wide open, especially after we have agreed on what problems the people are facing,” said Yudhoyono. His son Agus Harimurti Yudhoyono who ran unsuccessfully in the 2017 Jakarta Gubernatorial Election was also in attendance. He has been touted as potential VP candidate for Prabowo, although the proposal is still negotiable. To formally register Prabowo to run for President, Gerindra needs to secure a coalition from other parties with at least 20 percent of seats in the House or 25 percent of the popular votes based on the results of the 2014 legislative elections. Along with intensive talks with the Prosperous Justice Party (PKS) and National Mandate Party (PAN), there are rumors that it is attempting to tie up with the Democratic Party.

The news has not been less frenzied about the potential VP candidates for President Jokowi himself. Various names have been floated. On July 16, the President stated that former Constitutional Court chief justice Mahfud MD, Golkar chairman Airlangga Hartarto, and West Nusa Tenggara governor Muhammad Zainul Majdi, widely known as Tuan Guru Bajang (TGB) are in the running. The National Awakening Party (PKB) also claims that its chairman Muhaimin Iskandar is in play to be President Jokowi’s running mate.

The incumbent Vice President Jusuf Kalla has also indicated that he is interested in the role. On July 20, he filed an application to the Constitutional Court in concurrence with Indonesian Unity Party (Perindo) on challenging Article 169 of the 2017 Elections Law, which prohibits presidents and vice presidents from running for third terms regardless of whether they served consecutive terms or not. Separately, President Jokowi held a meeting with the leaders of his coalition parties, namely PDI-P, Golkar, Hanura, Nasdem, PKB, and PPP to discuss potential vice-presidential candidates. In a statement signed by its secretary-general, Hasto Kristiyanto, PDIP-P said it considers Jusuf Kalla a suitable candidate, caveat being PDI-P respects and will adhere to the Constitutional Court’s ruling.

 
 
IN THIS UPDATE
 
 
Multilateral Trade Agreements
Indonesia, EU discuss energy in CEPA talks

Regional Affairs
China launches steel dumping probe against EU, Japan, S. Korea, Indonesia

National Affairs
SBY, son meet with Prabowo, again
Deadly quake hits Indonesia tourist spot
Prabowo ready to drop presidential bid, support other figure
Doors still open for other presidential candidates, PKS says
Top Democrat official says willing to work with devil to beat Jokowi
Agus’ vice presidential bid not nonnegotiable: SBY
Jokowi coalition agrees on VP candidate
Dems, Gerindra’s path to coalition ‘wide open’
PDI-P says Kalla right person for Jokowi's VP, again
TGB resigns from Democrats in follow-up to announcing support for Jokowi
Tommy Suharto's Berkarya Party Gears Up for Election, Wants 'Spirit of Change'
SBY, Prabowo set for coalition talks
Prabowo slams aide for calling Agus ‘inexperienced’, ‘a kid’
Molotov cocktails tossed at PKS politician's residence
Prabowo visits Yudhoyono in hospital
Ex-convict Tommy to run in legislative contest
PDI-P says Rizieq’s lawyer vying for House seat with party
Prabowo meets Puan in undisclosed location
Eyeing VP slot, Democrats lean toward Gerindra
Celebrities, ministers eye House seats in 2019
Third coalition at stake after Muhaimin's maneuver
Mahfud, Airlangga, TGB on VP candidates list, Jokowi says
West Java governor-elect vows to regenerate hafiz
Densus 88 shoot dead three alleged terrorists in Yogyakarta
Army general linked to Jokowi's inner circle appointed new Pangkostrad
Gerindra's VP list also down to five
Muhaimin still on Jokowi's VP hopeful list, PKB claims

Market Development
Indonesia's fashion startups tap into Singapore market

Customs
Indonesia lobbying to maintain US trade ties
Indonesia Scrambles to Mitigate Trade War With US

Defense & Security
Indonesia-South Korea Security Ties in Focus With Defense Pact
Indonesia equips second KCR-60M attack craft with Chinese-made naval weapon
Indonesia withdraws BO-105 helos from UN task force after concerns raised over capabilities | Jane's 360
Indonesia-Singapore Navy Ties in Focus with Bilateral Visit
Indonesia reveals details of Chinese sensors onboard KCR-60M vessels

Economics
Steel import uncontrollable, local producer says
House passes non-tax state revenue bill
Government calls on export heavyweights to help bolster rupiah
Indonesia, US to devise trade roadmap
Indonesia wrapping up new regulation to expand the use of B20
Bank Indonesia projects current account deficit to hit $25 billion this year
Double-digit loan growth possible in 2018, says Citi Indonesia
Enggartiasto to drum up GSP support from U.S. importers
State budget designed to allow for rising crude prices: Ministry
Government told to cancel $200m loan from World Bank
Jakarta to revise taxable value of property after protests
Bank Indonesia absorbs Rp 5.97t from 9-, 12-month SBI action
Bank Indonesia helps small enterprises go global
Indonesian minister, businesspeople fly to US to begin trade mission amid war
Coordinating Minister Darmin: Trade War is Unavoidable
Government welcomes BI’s plan to attract foreign capital
Bank Indonesia Holds Rates, but Affirms 'Hawkish' Stance to Aid Rupiah
Taxpayer complains over 100% property tax increase
Macroeconomic figures in 2019 state budget bill still changeable, minister says
Govt plans 500% diesel subsidy hike for 2019
Bank Indonesia holds key rate at 5.25 percent
Bid to revive Indonesia property market highlights central bank's...
Social assistance helps lower poverty rate, says minister
Bank Indonesia records $358.6b in foreign debt in May
Indonesia's Rate Hikes Aren't Helping Its Currency or Coconuts
One Map Policy portal site set to launch in August
BPS records US$1.74 billion trade surplus in June
Poverty rate falls to lowest level ever: BPS
Bank Indonesia observes capital inflows following rate hike
Investors postpone plans over weakening rupiah, says BKPM
Business grows 20.23 percent in Q2: BI
Eximbank told to boost funding to export-oriented industries

Energy
PP Properti to develop luxury hotel in West Nusa Tenggara economic zone
Government to revoke coal price cap policy
Medco reduces gas price in Aceh’s Block A
US investors offered projects in seven sector
Papua, Mimika must buy Freeport shares: Inalum
Coal miner Bukit Asam’s profit grows 50% in first half
Government closely monitors Pertamina asset sales
Purchase agreement for Freeport shares to be inked in August: Inalum
Pertamina edging toward closing US$1.44b deal for Java 1 power plant
Pertamina vows to maintain control if assets sold
Grasberg’s large copper reserves promise large profits: Minister
Biodiesel use expansion has long way to go despite abundance of CPO
‘Populist policies’ may take toll on Pertamina assets
Indonesia to auction 16 mining sites
Palm oil from Indonesia's shrinking forests taints global brands: Report
Govt closes three new exploration block deals
PLN suspends power plant project over graft case
Indonesia, India sign business-to-business agreement on palm oil
Three candidates for Pertamina CEO submitted to President
Government oversells PT Freeport Indonesia agreement
11 banks to fund Inalum in buying Freeport shares
Freeport’s divestment deal worth $3.8 billion 
A guide to understanding the Freeport divestment deal
Indonesia a Step Closer to Acquiring $3.85b Freeport Majority Stake
Indonesia now controls 51 percent of Freeport shares
Energy ministry inks new gross-split PSC for four blocks
Pertamina seeks to be single operator of Rokan
New biodiesel recipe can cut Indonesia's fuel imports -Industry minister
Indonesia may expand biodiesel rules to include all vehicles
CPO, solar energy could help achieve renewable energy target, minister says
Indonesia to raise 2018 energy subsidies to keep fuel, power prices unchanged
Indonesia accelerates use of B30 biodiesel fuels
Indonesia, EU explore energy cooperation
Geothermal potential to contribute to energy security in Indonesia

Financial Services
Indonesia postpones domestic insurance requirement for thermal coal exporters to Feb 2019 | S&P Global Platts
After sprinting to aid rupiah, Indonesia c.bank could struggle in a marathon
BCA to raise time deposit rate by another 0.25 percentage points
Indonesia pushes back coal, palm oil insurance rules to Feb 2019
Indonesian central bank aims to revive country's sluggish property market
Indonesia c.bank to launch new overnight benchmark next week
Regional security firms to start business next year: OJK
Indonesia's top telecom opens up e-wallet to rivals' customers
OJK to launch fintech center in August
The Financial Service Authority of Indonesia to Release New Set of Rules for Fintech
Indonesia bucks emerging markets trend as buyers pile into bonds
Fintech regulation coming soon: OJK
Indonesia to Get Bank Data of Citizens Living in US
Bankers see Go-Jek as new competitor: Survey

Food & Agriculture
BRI Agro seeks to double financing in plantation holding company
Netralnews.com - Reading Nutritional Content Label Should be Mandatory
Sari Roti producer announces stock buyback
Minister, stakeholders to meet on increasing egg price
Indonesian cocoa production shrinks as farmers switch crops
The Long Road to Reviving Indonesia's Cacao Industry
Over 3,000 Indonesian families receive Qatar Charity’s food aid
Indonesia revises requirements on horti import permits
Indonesia’s rate hikes not helping rupiah, coconuts
Jakarta Restaurants to be Inspected Ahead of the Asian Games
KAN to facilitate halal products export to UAE - ANTARA News
How the World Cup made eggs more expensive in Indonesia
Malaysia, Indonesia team upto guard palm oil sector
World Bank to fund Accelerate Agrarian Reform project in Indonesia | Global Edition
Saudi Arabia to send sacrificial meat to Indonesia - ANTARA News

Health & Life Sciences
Inside Indonesia’s ‘Double Burden’ Of Diseases
In Papua, polio vaccines to be provided along with MR immunization
Aceh to vaccinate 1.5 million children against measles, rubella
BPJS suggests doctors prescribe 'other' breast cancer drugs
Patient, family may sue BPJS Kesehatan for not covering cancer drug costs
Health Ministry sets up clinic for pilgrims in Medina
OIC seeks indigenous vaccines from Muslim countries - ANTARA News
Indonesia Clinical Laboratory Market Analysis & Outlook 2012-2022 - Analysis by Type and Type of Test
Indonesia among world’s less stressed countries
Prosperity-Independence Village, Indonesia's poverty reduction model
Each Day Narcotics Kill 30 Indonesians: Minister
Online surrogacy services spark debate on legal aspects
Family planning still not seen as human right in Indonesia

ICT
Telkom to launch Merah Putih satellite next month 
Technology key to developing smart cities in Indonesia
Facebook Says Indonesian User Data Not Misused
Smart cities: Digital savviness to resilient living
Indonesia leads ASEAN region in AI adoption

Infrastructure
Indonesia soars 17 levels in World Bank's logistic performance index
Commuter line e-ticketing service back to normal
Toll road operator seeks Rp 4t additional capex this year
China, S. Korea show interest in North Sumatra LRT project
Kediri to develop US$347 million airport
Jokowi inaugurates Kartasura-Sragen road
American investors show interest in Kuala Tanjung Port
Greater Jakarta: Final eight LRT cars arrive in Jakarta
Consortium proposes location change for high-speed train tracks
Developer seeks govt funds to continue Trans-Sumatra toll project
Government to build 10 new airports

Manufacturing
Indonesia to enhance strategic partnership with Boeing
House approves Rp 2.57t budget for Industry 4.0
Airbus near blockbuster $23 billion jet sale to AirAsia

Market Regulation
New Regulation on Dispute-Resolution Services for Government Procurement Contracts
Recruitment of Foreign Workers Further Regulated
Patent Implementation by Patent Holders in Indonesia
Investment board focusing on internal work to prepare OSS takeover
Investment board prepares to take over OSS system

TPP
TPP fuels Asia's zest for regional free trade pacts

Travel & Tourism
Citilink eyes new route from Banyuwangi to Kuala Lumpur
Soekarno-Hatta's Terminal 2 to be used for low-cost carriers
Surabaya named best tourism city
Indonesia needs LCC terminals to boost tourist arrivals: Minister
 
ARTICLE CLIPS
 
 
Multilateral Trade Agreements

Indonesia, EU discuss energy in CEPA talks The Jakarta Post 18th Jul 2018
Indonesia and the European Union sat down for their fifth round of talks on the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA) in Brussels, Belgium from July 9-13.

Regional Affairs

China launches steel dumping probe against EU, Japan, S. Korea, Indonesia The Jakarta Post 23rd Jul 2018
China on Monday launched an anti-dumping probe into stainless steel products imported from the European Union, Japan, South Korea and Indonesia as the metal remains the focus of global trade tensions.

National Affairs

SBY, son meet with Prabowo, again The Jakarta Post 30th Jul 2018
In the second such meeting within a week, Democratic Party chairman Susilo Bambang Yudhoyono (SBY) and his son Agus Harimurti met with Gerindra Party chairman Prabowo Subianto at the latter's house on Jl. Kertanegara, South Jakarta on Monday.

Deadly quake hits Indonesia tourist spot BBC News 29th Jul 2018
A powerful earthquake has struck a popular tourist destination in Indonesia, killing at least 14 people. The 6.4 magnitude quake hit the central island of Lombok just before 07:00 local time (00:00 GMT) on Sunday. The island attracts tourists from around the world due to its beaches and hiking trails, and is located about 40km (25 miles) east of Bali. More than 160 people are injured and thousands of homes are damaged, officials say.

Prabowo ready to drop presidential bid, support other figure The Jakarta Post 28th Jul 2018
In a rare statement, Gerindra Party chairman and presumptive presidential candidate Prabowo Subianto said he was ready to throw support behind other eligible people to run for president in next year's election.

Doors still open for other presidential candidates, PKS says The Jakarta Post 28th Jul 2018
The opposition coalition may not necessarily field Gerindra Party patron Prabowo Subianto in the upcoming presidential election, Prosperous Justice Party (PKS) executive Salim Segaf al-Jufri has said.

Top Democrat official says willing to work with devil to beat Jokowi The Jakarta Post 26th Jul 2018
Democratic Party deputy secretary-general Rachland Nashidik has tweeted a controversial message saying he is ready to work with the devil to beat President Joko “Jokowi” Widodo in the next year’s election.

Agus’ vice presidential bid not nonnegotiable: SBY The Jakarta Post 25th Jul 2018
In working toward forming a coalition, Democratic Party chief and former president Susilo Bambang Yudhoyono has said the vice presidential bid of Agus Harimurti Yudhoyono, his eldest son, is open to negotiations.

Jokowi coalition agrees on VP candidate The Jakarta Post 24th Jul 2018
The six political parties standing behind President Joko “Jokowi” Widodo’s reelection bid have agreed on a vice-presidential candidate after party leaders met with the President at Bogor Palace on Monday evening.

Dems, Gerindra’s path to coalition ‘wide open’ The Jakarta Post 24th Jul 2018
Democratic Party chairman Susilo Bambang Yudhoyono said in a joint press conference with Gerindra Party chairman Prabowo Subianto that both parties were talking about the possibility of a coalition to contest in the 2019 presidential election.

PDI-P says Kalla right person for Jokowi's VP, again The Jakarta Post 24th Jul 2018
Vice President Jusuf Kalla is a suitable candidate for vice president, the Indonesian Democratic Party of Struggle (PDI-P) said in a written statement on Tuesday.

TGB resigns from Democrats in follow-up to announcing support for Jokowi The Jakarta Post 24th Jul 2018
West Nusa Tenggara (NTB) Governor Muhammad Zainul Majdi, also known as Tuan Guru Bajang (TGB), has resigned from the Democratic Party a few weeks after declaring his support for President Joko “Jokowi” Widodo.

Tommy Suharto's Berkarya Party Gears Up for Election, Wants 'Spirit of Change' Jakarta Globe 23rd Jul 2018
The Beringin Karya Party, commonly known as Berkarya, held training for its legislative candidates in Bogor, West Java, on Sunday (22/07), to prepare for next year's legislative election.

SBY, Prabowo set for coalition talks The Jakarta Post 23rd Jul 2018
Democratic Party chairman Susilo Bambang Yudhoyono (SBY) and his Gerindra Party counterpart, Prabowo Subianto, are set to meet at Yudhoyono’s residence in Kuningan, South Jakarta, on Tuesday after last week’s delayed meeting.

Prabowo slams aide for calling Agus ‘inexperienced’, ‘a kid’ The Jakarta Post 23rd Jul 2018
Gerindra Party leader Prabowo Subianto has publicly reprimanded one of his deputies, Arief Poyuono, for calling Agus Yudhoyono, one of Prabowo’s potential vice presidential candidates, too “inexperienced” and “juvenile” to lead the country.

Molotov cocktails tossed at PKS politician's residence The Jakarta Post 19th Jul 2018
Two Molotov cocktails were thrown at the house of Prosperous Justice Party (PKS) politician Mardani Ali Sera in Pondok Gede, Bekasi, West Java, early Thursday by unknown assailants.

Prabowo visits Yudhoyono in hospital The Jakarta Post 18th Jul 2018
Wearing a suit and red tie, Gerindra Party chief patron Prabowo Subianto visited Democratic Party chairman Susilo Bambang Yudhoyono at Gatot Subroto Army Hospital (RSPAD) in Central Jakarta on Wednesday evening.

Ex-convict Tommy to run in legislative contest The Jakarta Post 18th Jul 2018
The youngest son of former president Soeharto, Hutomo Tommy Mandala Putra, popularly known as Tommy Soeharto, has registered as a legislative candidate with the Berkarya Party despite his legal track record.

PDI-P says Rizieq’s lawyer vying for House seat with party The Jakarta Post 17th Jul 2018
The secretary general of the Indonesian Democratic Party of Struggle (PDI-P), Hasto Kristiyanto, said Tuesday that Rizieq Shihab’s lawyer, Kapitra Ampera, was among the hopefuls in the 2019 legislative election.

Prabowo meets Puan in undisclosed location The Jakarta Post 17th Jul 2018
Opposition leader Prabowo Subianto held a meeting with top Democratic Party of Struggle (PDI-P) official Puan Maharani at an undisclosed location on Tuesday.

Eyeing VP slot, Democrats lean toward Gerindra The Jakarta Post 17th Jul 2018
As chances to form a third party coalition to compete in the 2019 presidential election get slimmer, the Democratic Party is moving closer to the opposition Gerindra Party.

Celebrities, ministers eye House seats in 2019 The Jakarta Post 17th Jul 2018
The names of well-known singers, actors and ministers are among thousands who registered with the General Elections Commission (KPU) on Tuesday, the last day of registration for those eyeing a seat in the House of Representatives after next year’s legislative election.

Third coalition at stake after Muhaimin's maneuver The Jakarta Post 16th Jul 2018
A plan to establish a third coalition for the 2019 presidential election by midsized political parties may now be at stake after National Awakening Party (PKB) chairman Muhaimin Iskandar announced his party’s support for incumbent President Joko “Jokowi” Widodo.

Mahfud, Airlangga, TGB on VP candidates list, Jokowi says The Jakarta Post 16th Jul 2018
President Joko "Jokowi" Widodo revealed on Monday that three notable figures whose names have been circulating as potential vice-presidential candidates are indeed on his list of potential running mates for the 2019 presidential election.

West Java governor-elect vows to regenerate hafiz The Jakarta Post 16th Jul 2018
West Java governor-elect Ridwan Kamil has pledged to develop a province-wide village program for nurturing hafiz, or Muslims that have memorized the Quran, during his term in office.

Densus 88 shoot dead three alleged terrorists in Yogyakarta The Jakarta Post 15th Jul 2018
The National Police’s counterterrorism squad Densus 88 shot dead three alleged terrorists on Jl. Kaliurang in Ngaglik district, Sleman regency, on Saturday.

Army general linked to Jokowi's inner circle appointed new Pangkostrad The Jakarta Post 14th Jul 2018
Former Presidential Security Detail (Paspampres) commander Lt. Gen. Andika Perkasa has been appointed the new Army Strategic Reserves commander (Pangkostrad), a move that may strengthen the Presidential Palace’s influence on the military ahead of the 2019 elections.

Gerindra's VP list also down to five The Jakarta Post 12th Jul 2018
The Gerindra Party's list of potential running mates for chairman and presidential hopeful Prabowo Subianto is down to five names.

Muhaimin still on Jokowi's VP hopeful list, PKB claims The Jakarta Post 12th Jul 2018
The National Awakening Party (PKB) remains certain that its chairman Muhaimin Iskandar is among the five names that President Joko "Jokowi" Widodo is considering for his vice-presidential slot, despite claims to the contrary.

Market Development

Indonesia's fashion startups tap into Singapore market The Jakarta Post 26th Jul 2018
The Indonesian Creative Economy Agency (Bekraf) in cooperation with the Indonesian Embassy in Singapore has opened a temporary pop-up store for Indonesian fashion startups to showcase their products in Singapore. 

Brunei

Indonesia invites Brunei to invest in "10 new Bali" Antara News 18th Jul 2018
The Indonesian government will invite Brunei's businessmen to invest in "10 New Bali" during the Indonesia-Brunei Darussalam Joint Commission for Bilateral Cooperation (JCBC) meeting in Jakarta on Friday (July 20).

Customs

Indonesia lobbying to maintain US trade ties The Straits Times 28th Jul 2018
Amid an escalating global trade war triggered by the United States, Indonesia is going against the grain by lobbying Washington in a bid to maintain its trade ties with the world's largest economy. Leading a business delegation to the US capital this week is Indonesian Trade Minister Enggartiasto Lukita.

Indonesia Scrambles to Mitigate Trade War With US Jakarta Globe 19th Jul 2018
While bracing for the fallout from a trade war between China and the United States, Indonesia is doing its best to avoid sparking a trade war of its own with the world's largest economy. Indonesia found itself on the wrong end of a trade imbalance with the United States, amid President Donald Trump's apparent dislike of trade deficits.

Defense & Security

Indonesia-South Korea Security Ties in Focus With Defense Pact The Diplomat 20th Jul 2018
On July 10, Indonesian media outlets reported that the legislature had moved toward approval of a defense cooperation agreement between Indonesia and South Korea. While the development itself has long been in the works, it has nonetheless put the focus on the ongoing security collaboration between the two sides as part of their wider bilateral relationship. As part of their wider diplomatic ties that date back to 1973, Indonesia and South Korea also have been pursuing defense collaboration as well. Indonesia today is among the biggest importers of South Korean defense equipment, and cooperation on projects has continue to proceed to varying degrees, from submarines to the development of the new KF-X/IF-X fighter aircraft which has been running into some complications (See: “Where is Indonesia-South Korea Defense Industry Cooperation Headed?”).

Indonesia equips second KCR-60M attack craft with Chinese-made naval weapon Janes Navy International 20th Jul 2018
The Indonesian Navy (Tentara Nasional Indonesia – Angkatan Laut, or TNI-AL) has equipped its second KCR-60M fast attack craft, KRI Tombak (629), with a Chinese-made Type 630 30 mm close-in weapon system (CIWS) turret.

Indonesia withdraws BO-105 helos from UN task force after concerns raised over capabilities | Jane's 360 Jane's Navy International 20th Jul 2018
The Indonesian Navy (Tentara Nasional Indonesia – Angkatan Laut: TNI-AL) will cease subsequent deployments of its BO-105 utility helicopters in the Middle East after concerns were raised over the aircraft’s ability to undertake further United Nations Interim Force in Lebanon (UNIFIL) operations. The matter has been confirmed by various sources within the TNI-AL, each of whom have cited various technical issues with regards to the BO-105’s capabilities.

Indonesia-Singapore Navy Ties in Focus with Bilateral Visit The Diplomat 31st Jul 2018
This week, Singapore’s navy chief was in Indonesia for a visit. The trip, which saw a heavy focus on counterterrorism among other issues, put the spotlight on the development of defense relationships between the two countries. 

Indonesia reveals details of Chinese sensors onboard KCR-60M vessels Update Philippines 29th Jul 2018
In line with the installation of Type 630 30 mm close-in weapon system (CIWS) turrets, the Indonesia Navy (Tentara Nasional Indonesia – Angkatan Laut: TNI-AL) has also equipped two of its KCR-60M fast attack craft with Chinese-made sensors, consoles, and combat information systems. 

Economics

Steel import uncontrollable, local producer says The Jakarta Post 30th Jul 2018
Steel producer PT Krakatau Steel has said local steel producers were seriously affected by an uncontrollable inflow of steel from other countries, particularly after the government issued a new regulation on steel imports.

House passes non-tax state revenue bill The Jakarta Post 27th Jul 2018
The House of Representatives officially passed the non-tax state revenue (PNBP) bill into law during a plenary meeting on Thursday.

Government calls on export heavyweights to help bolster rupiah The Jakarta Post 27th Jul 2018
The government has asked major exporters to park their export revenue in Indonesia and convert it into rupiah to help bolster the currency's exchange rate.

Indonesia, US to devise trade roadmap The Jakarta Post 27th Jul 2018
Trade Minister Enggartiasto Lukita has met United States Secretary of Commerce Wilbur Ross to discuss a trade roadmap between the two countries.

Indonesia wrapping up new regulation to expand the use of B20 The Jakarta Post 26th Jul 2018
The government is revising a presidential regulation on biodiesel incentives in a bid to expand the use of vegetable oil in biodiesel. The current mix, called B20, is a blend comprising 20 percent vegetable oil.

Bank Indonesia projects current account deficit to hit $25 billion this year The Jakarta Post 25th Jul 2018
Bank Indonesia (BI) has projected this year’s current account deficit to hit US$25 billion, a significant increase over last year’s $17.53 billion or 1.73 percent of the gross domestic product.

Double-digit loan growth possible in 2018, says Citi Indonesia The Jakarta Post 25th Jul 2018
Citi Indonesia, a wholly owned subsidiary of United States-based Citigroup Inc., looks forward to achieving double-digit loan growth amid concerns over global circumstances that might affect the company’s business.

Enggartiasto to drum up GSP support from U.S. importers Antara News 24th Jul 2018
Trade Minister Enggartiasto Lukita said he would drum up support from U.S. importers to maintain the Generalized System of Preferences (GSP) facility for certain Indonesian commodities exported to the world`s largest economy.

State budget designed to allow for rising crude prices: Ministry The Jakarta Post 24th Jul 2018
Seeking to allay concern about the impact of rising global oil prices on state finances, the government has emphasized that the 2018 state budget is designed to handle such market fluctuation.

Government told to cancel $200m loan from World Bank The Jakarta Post 24th Jul 2018
The Agrarian Reform Consortium (KPA) has called on the government to cancel US$200 million loan from World Bank because the activities that will be funded by loan is "nothing to do with agrarian reform".

Jakarta to revise taxable value of property after protests The Jakarta Post 23rd Jul 2018
The Jakarta administration plans revise its taxable value of property (NJOP) after residents and property businesses protested the 19.54 percent increase in the NJOP earlier this month.

Bank Indonesia absorbs Rp 5.97t from 9-, 12-month SBI action The Jakarta Post 23rd Jul 2018
Bank Indonesia managed to absorb Rp 5.97 trillion (US$412.42 million) from the auction of Bank Indonesia certificates, known as 9-month and 12-month SBIs, on Monday.

Bank Indonesia helps small enterprises go global The Jakarta Post 22nd Jul 2018
Bank Indonesia Governor Perry Warjiyo has said the central bank is continuing to encourage micro, small and medium enterprises (MSME) to produce high quality products so that they can complete in the global market.

Indonesian minister, businesspeople fly to US to begin trade mission amid war The Jakarta Post 22nd Jul 2018
The government will begin its trade mission to the United States on Monday to boost Indonesia's commerce with the world's largest economy amid the heightened global trade war.

Coordinating Minister Darmin: Trade War is Unavoidable Tempo 22nd Jul 2018
Coordinating Minister for Economic Affairs, Darmin Nasution, said that the global economic condition in the middle of trade war is inevitable. With the condition, according to Darmin, Indonesia should be able to respond and adjust.

Government welcomes BI’s plan to attract foreign capital The Jakarta Post 20th Jul 2018
Coordinating Economic Minister Darmin Nasution has said the government welcomed Bank Indonesia's (BI) decision to issue Bank Indonesia certificates (SBI) with 9-month and 12-month maturity periods in an attempt to attract more capital inflow to the country.

Bank Indonesia Holds Rates, but Affirms 'Hawkish' Stance to Aid Rupiah Jakarta Globe 19th Jul 2018
Indonesia's central bank kept its benchmark interest rate unchanged on Thursday (19/07), as expected, taking a pause in its monetary tightening cycle aimed at bolstering the rupiah, though emphasizing it was still ready to support the currency.

Taxpayer complains over 100% property tax increase The Jakarta Post 19th Jul 2018
A taxpayer in Jagakarta, South Jakarta, has complained about a 100 percent increase in his property tax this year and called on the Jakarta administration to revise its policy.

Macroeconomic figures in 2019 state budget bill still changeable, minister says The Jakarta Post 19th Jul 2018
Finance Minister Sri Mulyani Indrawati has said that the macroeconomic parameters in the 2019 state budget bill can still be changed before President Joko “Jokowi” Widodo reads the financial notes before lawmakers on Aug. 16.

Govt plans 500% diesel subsidy hike for 2019 The Jakarta Post 19th Jul 2018
The government plans to increase the subsidy for Solar-branded diesel fuel to Rp 2,500 (US 17 cents) per liter in 2019, from the current subsidy of Rp 500 per liter.

Bank Indonesia holds key rate at 5.25 percent The Jakarta Post 19th Jul 2018
Bank Indonesia (BI) decided to hold its key rate in July as it remained confident that the current rate is still attractive to foreign investors amid uncertainties in the global liquidity market.

Bid to revive Indonesia property market highlights central bank's... Reuters 18th Jul 2018
As Indonesia’s central bank drives up interest rates to defend a fragile currency, Governor Perry Warjiyo is banking on a revival of the sluggish property sector to help maintain growth momentum in Southeast Asia’s biggest economy.

Social assistance helps lower poverty rate, says minister The Jakarta Post 18th Jul 2018
National Development Planning Minister Bambang Brodjonegoro has said the distribution of social assistance at the right time had helped decrease the poverty rate to 9.82 percent in May, the lowest poverty rate the country has ever recorded.

Bank Indonesia records $358.6b in foreign debt in May The Jakarta Post 17th Jul 2018
Bank Indonesia recorded US$358.6 billion in foreign debt in May, a 0.2 percent increase from the $358.09 billion recorded in April.

Indonesia's Rate Hikes Aren't Helping Its Currency or Coconuts Bloomberg 17th Jul 2018
In Indonesia, a nation of about 17,000 islands, it’s getting tough to even make a few bucks from a coconut these days, as surging interest rates and a deepening currency rout have dealt a double blow.

One Map Policy portal site set to launch in August The Jakarta Post 16th Jul 2018
The government is scheduled to launch a portal to support the One Map Policy platform in August.  

BPS records US$1.74 billion trade surplus in June The Jakarta Post 16th Jul 2018
The Central Statistics Agency (BPS) announced on Monday that Indonesia had recorded a trade surplus of US$1.74 billion in June, overturning the $1.45 billion trade deficit of the previous month.

Poverty rate falls to lowest level ever: BPS The Jakarta Post 16th Jul 2018
The poverty rate in Indonesia has fallen to the lowest level ever recorded, according to the latest data from the Central Statistics Agency (BPS).

Bank Indonesia observes capital inflows following rate hike The Jakarta Post 15th Jul 2018
Bank Indonesia (BI) believes its latest rate hike of 50 basis points (bps) will make Indonesia's financial market more attractive for foreign investors, as indicated by recent foreign capital inflows.

Investors postpone plans over weakening rupiah, says BKPM The Jakarta Post 13th Jul 2018
The chairman of the Investment Coordinating Board (BKPM), Thomas Trikasih Lembong, has said that several investors had informed the board that they would be postponing their investment plans because of the rupiah depreciation.

Business grows 20.23 percent in Q2: BI The Jakarta Post 13th Jul 2018
Business activities grew 20.23 percent in the second quarter, triggered by the increase in sales during Ramadhan and the long Idul Fitri holiday. Last year’s growth figure in the corresponding period was 8.23 percent.

Eximbank told to boost funding to export-oriented industries The Jakarta Post 12th Jul 2018
Finance Minister Sri Mulyani has asked the Indonesian Export Financing Agency (LPEI) or Indonesian Eximbank to boost funding for export-oriented industries.

Energy

PP Properti to develop luxury hotel in West Nusa Tenggara economic zone The Jakarta Post 28th Jul 2018
Property developer PT PP Properti is building a five-star plus rated hotel in the Mandalika special economic zone (SEZ) in West Nusa Tenggara (NTB) with investment of Rp 1 trillion (US$69.59 million).

Government to revoke coal price cap policy The Jakarta Post 28th Jul 2018
The government plans to revise its domestic market obligation (DMO) on coal price next week during a high-level meeting with President Joko “Jokowi” Widodo, with among considerations being to increase state revenue from coal, the efforts of which are currently hampered because of the formula.

Medco reduces gas price in Aceh’s Block A The Jakarta Post 27th Jul 2018
The Energy and Mineral Resources Ministry’s director general for oil and gas, Djoko Siswanto, told the press on Thursday that a deal to reduce the price of gas to US$7.08 per million British thermal units (mmbtu) was reached between local energy firm PT Medco E&P Malaka and Nanggroe Aceh Darussalam-based state fertilizer producer PT Pupuk Iskandar Muda (PIM).

US investors offered projects in seven sector Antara News 25th Jul 2018
Minister of State Enterprises Rini Soemarno has offered US investors projects in seven sectors in Indonesia - renewable energy, mineral mining, infrastructure, land, sea and air transport facilities, manufacturing and tourism.

Papua, Mimika must buy Freeport shares: Inalum The Jakarta Post 24th Jul 2018
The regional administrations of Papua province and the Mimika regency must purchase their 10 percent shares in gold and copper miner PT Freeport Indonesia (PTFI), which operates the Grasberg mine in Papua, state mining holding company PT Indonesia Asahan Aluminium (Inalum) has said.

Coal miner Bukit Asam’s profit grows 50% in first half The Jakarta Post 24th Jul 2018
Coal miner Bukit Asam announced 50 percent profit growth to Rp 2.58 trillion (US$177.33 million) in the first half of 2018, on the back of a coal-price increase and improved efficiency.

Government closely monitors Pertamina asset sales The Jakarta Post 24th Jul 2018
The Finance Ministry’s budgeting director general, Askolani, has said the government will closely monitor any corporate action by state-owned energy holding company Pertamina, which has received a green light to sell its assets to improve the company’s financial performance.

Purchase agreement for Freeport shares to be inked in August: Inalum The Jakarta Post 23rd Jul 2018
State-owned mining holding PT Indonesia Asahan Aluminium (Inalum) expects to sign an agreement with US-based mining company Freeport-McMoran (FCX) to acquire a controlling stake in PT Freeport Indonesia (PTFI) in August.

Pertamina edging toward closing US$1.44b deal for Java 1 power plant The Jakarta Post 23rd Jul 2018
State-owned energy company Pertamina has said it is finalizing a US$1.44 billion deal to finance its 1,760-megawatt (MW) steam and gas power plant (PLTGU) project in West Java, the PLTGU Java 1, which is located close to the ONWJ oil and gas block in Cimalaya.

Pertamina vows to maintain control if assets sold The Jakarta Post 20th Jul 2018
While the government is allowing state-owned energy holding company Pertamina to take corporate action to maintain its finance performance, including sharing its assets, the company vowed that it will still control those projects.

Grasberg’s large copper reserves promise large profits: Minister The Jakarta Post 20th Jul 2018
Energy and Mineral Resources Minister Ignasius Jonan has said the enormous copper reserves in the Grasberg Mine in Papau will deliver large profits for Indonesia, after the country signed an agreement to gain control of the majority share of gold and copper miner PT Freeport Indonesia (PTFI).

Biodiesel use expansion has long way to go despite abundance of CPO The Jakarta Post 20th Jul 2018
The government still has a long way to go in its plan to expand the use of crude palm oil (CPO) as a transportation and industrial feedstock. So far, research into the use of B20 biodiesel, or fuel with a 20 percent biodiesel content, has produced few results.

‘Populist policies’ may take toll on Pertamina assets The Jakarta Post 19th Jul 2018
The government has allowed state-owned energy company Pertamina to sell some of its assets to improve its financial position, which has come under pressure largely as a result of fuel subsidies aimed at keeping gasoline and diesel cheap for consumers.

Indonesia to auction 16 mining sites The Jakarta Post 18th Jul 2018
Indonesia will soon auction 16 mining sites as no proposal submissions have been submitted by state-owned enterprises (BUMN) and regional administration-owned enterprises (BUMD) as of the submission deadline on Tuesday.

Palm oil from Indonesia's shrinking forests taints global brands: Report Reuters 18th Jul 2018
Palm oil sourced from illegally cleared rainforest areas in Indonesia has flowed through traders to major consumer goods brands despite widespread commitments to cease purchases of non-sustainable oil, a new report says.

Govt closes three new exploration block deals The Jakarta Post 17th Jul 2018
The government signed on Tuesday three oil and gas exploration blocks under a gross-split contract for US$40.90 million in total investment and a $2.5 million signature bonus, bringing the total deals closed to nine since auctioning commenced in January.

PLN suspends power plant project over graft case The Jakarta Post 17th Jul 2018
The president director of state-owned electricity company PLN, Sofyan Basir, has said that the company has suspended its coal-fired power plant project in Riau (PLTU Riau I) after the Corruption Eradication Commission (KPK) named a lawmaker who is tied to the project a suspect.

Indonesia, India sign business-to-business agreement on palm oil The Jakarta Post 16th Jul 2018
Indonesian and Indian businesspeople signed on Monday a business-to-business agreement on palm oil to build communications between producers and consumers of the commodity.

Three candidates for Pertamina CEO submitted to President The Jakarta Post 16th Jul 2018
The State-Owned Enterprises (SOEs) Ministry has submitted three candidates for president director of state-owned energy company Pertamina to President Joko “Jokowi” Widodo, following the absence of a head of the company for the past four months.

Government oversells PT Freeport Indonesia agreement The Jakarta Post 16th Jul 2018
The agreement made on Thursday between PT Indonesia Asahan Aluminium (Inalum) and United States mining company Freeport-McMoran Inc. (FCX) was largely welcomed by the government, which claimed that the future of PT Freeport Indonesia (PTFI) was now clearer.

11 banks to fund Inalum in buying Freeport shares The Jakarta Post 13th Jul 2018
State-owned mining holding company PT Indonesia Asahan Alumunium (Inalum) has obtained the support of 11 banks to buy 51 percent of gold and copper miner PT Freeport Indonesia’s (PTFI) shares to complete the divestment deal.

Freeport’s divestment deal worth $3.8 billion  The Jakarta Post 13th Jul 2018
The government inked on Thursday a heads of agreement (HoA) on a deal with United States mining giant Freeport McMoran Inc (FCX) on the divestment of PT. Freeport Indonesia (PTFI), which operates the world’s largest gold mine called Grasberg. 

A guide to understanding the Freeport divestment deal The Jakarta Post 13th Jul 2018
Here is your guide to understanding the seemingly never-ending negotiations between Indonesia and Freeport, and why it matters for Indonesia to cement the deal as soon as possible,

Indonesia a Step Closer to Acquiring $3.85b Freeport Majority Stake Jakarta Globe 13th Jul 2018
State-owned miner Indonesia Asahan Alumunium, or Inalum, has signed a head of agreement with Freeport-McMoran to acquire a 51.38 percent share worth $3.85 billion in the Grasberg copper and gold mine in Papua, officials said on Thursday (12/07).

Indonesia now controls 51 percent of Freeport shares The Jakarta Post 12th Jul 2018
State-owned mining holding company Inalum now owns a 51 percent share of gold and copper miner PT Freeport Indonesia after years of “tough” negotiations, President Joko “Jokowi” Widodo announced on Thursday.

Energy ministry inks new gross-split PSC for four blocks The Jakarta Post 12th Jul 2018
The Energy and Mineral Resources Ministry on Wednesday signed a 20-year production-sharing contract (PSC) worth US$148.4 million for operating four oil and gas blocks under the gross-split scheme, whose current contacts expire in 2019 and 2020.

Pertamina seeks to be single operator of Rokan The Jakarta Post 12th Jul 2018
State-owned oil and gas firm Pertamina may become the single operator of Rokan Block, one of the most productive units in the country, should its proposal be approved by the government, whose decision will be finalized this month.

New biodiesel recipe can cut Indonesia's fuel imports -Industry minister Reuters 24th Jul 2018
Indonesia, the world’s biggest palm oil producer, is offering incentives to developers of a new 100 percent palm oil-based “green diesel”, which the net oil importer hopes can replace costly fuel imports within three years, the country’s industry minister said. Biodiesel for land transportation in Indonesia currently consists of a 20 percent bio component that is mixed with petroleum diesel. That component is expected to be raised to 30 percent in 2020. In Indonesia, the bio portion of biodiesel is made with fatty acid methyl esters (FAME) from palm oil, but efforts to increase FAME concentrations in biodiesel have faced resistance from regulators as well as the automotive and oil industries.

Indonesia may expand biodiesel rules to include all vehicles ET EnergyWorld 21st Jul 2018
Indonesia is considering expanding the country's compulsory biodiesel use to include all diesel vehicles , Industry Minister Airlangga Hartarto said on Friday. Present rules, intended to boost consumption of palm-oil-based biodiesel in the world's biggest palm oil producer, apply only to subsidised diesel, which some users and vehicles are not allowed to buy.

CPO, solar energy could help achieve renewable energy target, minister says The Jakarta Post 20th Jul 2018
Energy and Mineral Resources Minister Ignasius Jonan introduced on Thursday two ideas to boost the share of renewable energy in the country's energy mix, namely fueling power plants with biodiesel made from crude palm oil (CPO) and installing solar cells on house rooftops.

Indonesia to raise 2018 energy subsidies to keep fuel, power prices unchanged ET EnergyWorld 17th Jul 2018
JAKARTA: Indonesia's government plans to increase spending on energy subsidies by 69 trillion rupiah ($4.81 billion) to 163.5 trillion rupiah to keep some fuel prices and electricity tariffs unchanged throughout the year, the finance minister said. Despite the increase in spending, the 2018 budget deficit is seen shrinking slightly to 2.12 percent of gross domestic product (GDP) from 2.19 percent, as the government is expecting higher income, Finance Minister Sri Mulyani Indrawati told a parliamentary hearing on the 2018 budget on Tuesday. According to a finance ministry document submitted to parliament on Tuesday, the government expects royalties from the oil and gas sector to nearly double earlier projection, at 144.3 trillion rupiah, due to higher global prices.

Indonesia accelerates use of B30 biodiesel fuels The Jakarta Post 17th Jul 2018
The government plans to accelerate the use of fuel with 30 percent biodiesel content (B30 biofuel) in the transportation sector by next year from the initial plan of 2020, an official has said. 

Indonesia, EU explore energy cooperation Antara News 16th Jul 2018
Indonesia and the European Union (EU) are conducting negotiations to explore energy trade cooperation, especially related to Energy and Raw Material (ERM) for easy investment. 

Geothermal potential to contribute to energy security in Indonesia Antara News 14th Jul 2018
Deputy chairman of the House of Representatives Agus Hermanto said geothermal, which is available in abundance in Indonesia is potential to contribute to the country`s energy security. 

Financial Services

Indonesia postpones domestic insurance requirement for thermal coal exporters to Feb 2019 | S&P Global Platts SP Global 30th Jul 2018
Singapore — The Indonesian government has postponed to February 2019 the implementation of a regulation that would have required all Indonesian coal exporters to be covered by a domestic insurance provider from August 1, 2018, industry sources said Friday. 

After sprinting to aid rupiah, Indonesia c.bank could struggle in a marathon Reuters 27th Jul 2018
Bank Indonesia has done more than any Asian peer to defend its currency amid a global rout in emerging markets, but the fact that the rupiah has kept slipping suggests the central bank would struggle to maintain the pace in a prolonged battle.

BCA to raise time deposit rate by another 0.25 percentage points The Jakarta Post 27th Jul 2018
Private lender Bank Central Asia (BCA) plans to increase its time deposit interest rate by 0.25 percentage points next month in adjustment to Bank Indonesia’s (BI) increasing benchmark rate.

Indonesia pushes back coal, palm oil insurance rules to Feb 2019 The Edge Markets 26th Jul 2018
Indonesia's trade ministry has decided to postpone for six months the application of rules requiring coal and crude palm oil export shipments to use Indonesian insurance, ministry officials said. Indonesia is the world's biggest exporter of thermal coal and palm oil. 

Indonesian central bank aims to revive country's sluggish property market The Business Times 25th Jul 2018
AS Indonesia's central bank drives up interest rates to defend a fragile currency, its governor Perry Warjiyo is banking on a revival of the sluggish property sector to maintain growth momentum in South-east Asia's biggest economy.

Indonesia c.bank to launch new overnight benchmark next week Reuters 24th Jul 2018
Indonesia’s central bank will launch a new benchmark for overnight interbank money market next week, called “Indonia”, which will eventually replace the existing Jakarta Interbank Offered Rate (JIBOR), a senior bank said on Tuesday. 

Regional security firms to start business next year: OJK The Jakarta Post 24th Jul 2018
The Financial Services Authority (OJK) is drafting a regulation on regional securities firms, which is expected to be completed by the end of this year, according to the OJK’s deputy commissioner for stock market supervision, Fahmi Hilmi.

Indonesia's top telecom opens up e-wallet to rivals' customers Nikkei Asian Review 18th Jul 2018
JAKARTA -- Indonesia's largest mobile operator, Telkomsel, is opening its electronic payment platform to customers of rival carriers as it seeks to unlock a rich trove of user data. 

OJK to launch fintech center in August The Jakarta Post 16th Jul 2018
The Financial Services Authority (OJK) has announced that it will be launching a financial technology (fintech) center in Jakarta next month to support the digital business's innovation and development in the country.

The Financial Service Authority of Indonesia to Release New Set of Rules for Fintech Fintech Crypto News 16th Jul 2018
OJK, the Financial Services Authority of Indonesia will release a new set of rules on financial technology or fintech, owing to the rising number of startups in the fintech industry.

Indonesia bucks emerging markets trend as buyers pile into bonds Financial Times 16th Jul 2018
With almost half its bond market in foreign hands and a weakening currency, Indonesia’s fate appears seemingly bleak. Not so, according to some bond investors, who think the country represents a better long-term bet than other fragile emerging markets. 

Fintech regulation coming soon: OJK The Jakarta Post 16th Jul 2018
The Financial Services Authority (OJK) is about to issue a new set of rules on financial technology (fintech), as more and more startups arise in the industry.

Indonesia to Get Bank Data of Citizens Living in US Jakarta Globe 14th Jul 2018
Negotiations between Indonesia and the United States to exchange financial information are going smoothly and should be complete this year, an official told the Jakarta Globe on Friday (13/11). 

Bankers see Go-Jek as new competitor: Survey The Jakarta Post 12th Jul 2018
Most Indonesian bankers see Go-Jek as an “emerging competitor” to conventional banks in the payment sector, according to a survey conducted by PricewaterhouseCoopers (PwC) Indonesia.

Food & Agriculture

BRI Agro seeks to double financing in plantation holding company The Jakarta Post 24th Jul 2018
Agriculture specialist lender Bank Rakyat Indonesia Agroniaga (BRI Agro) seeks to double its financing in state-owned plantation holding company PT Perkebunan Nusantara III (PTPN III), specifically in supply-chain financing.

Netralnews.com - Reading Nutritional Content Label Should be Mandatory netralnews.com 17th Jul 2018
Director of Community Nutrition at the Ministry of Health Doddy Izwardy recommends that people should consider it mandatory to read food packaging before consuming. 

Sari Roti producer announces stock buyback The Jakarta Post 17th Jul 2018
PT Nippon Indosari Corpindo, the producer of Sari Roti branded bread, has obtained its shareholders’ approval on Tuesday to repurchase its stock over the next 18 months.

Minister, stakeholders to meet on increasing egg price The Jakarta Post 16th Jul 2018
Trade Minister Enggartiasto Lukita is to meet with chicken breeders, traders and other stakeholders on Monday to discuss and evaluate the increasing price of chicken eggs that has become a household concern.

Indonesian cocoa production shrinks as farmers switch crops The Jakarta Post 16th Jul 2018
Cocoa production in the 130-year old industry in Indonesia is set to shrink for the third straight year as farmers switch to other crops and annual per capita consumption of chocolate languishes at just 11 ounces (300 grams) - half the rate of neighboring Malaysia, according to Euromonitor International.

The Long Road to Reviving Indonesia's Cacao Industry Jakarta Globe 15th Jul 2018
Indonesia had to import about 200,000 metric tons of cacao beans last year, but it was not supposed to happen.

Over 3,000 Indonesian families receive Qatar Charity’s food aid The Peninsula Qatar 30th Jul 2018
Qatar Charity’s (QC) office in Indonesia distributed food baskets to benefit more than 3,000 families in the city of Tangerang. The distribution was made in coordination with local authorities as part of QC’s continuous efforts to support vulnerable families and fight poverty.  The underprivileged beneficiary households were selected in 13 districts and 104 neighbourhoods in the city in coordination with social welfare departments.

Indonesia revises requirements on horti import permits Fresh News 30th Jul 2018
The Indonesian Ministry of Trade (MOT) recently issued revised requirements to obtain import permits for horticultural products. While the revisions eased some of the previous burdensome conditions, such as owning warehouse space and limiting downstream sales options, the Ministry can still potentially use other conditions to restrict imports. 

Indonesia’s rate hikes not helping rupiah, coconuts Business World 30th Jul 2018
IN INDONESIA, a nation of about 17,000 islands, it’s getting tough to even make a few bucks from a coconut these days. Surging interest rates and a deepening currency rout have dealt a double blow to PT Niramas Utama, which makes food products from the tropical fruit. The company is finding it more expensive to import necessary inputs while the central bank’s steep tightening means expansion plans may be shelved.

Jakarta Restaurants to be Inspected Ahead of the Asian Games Indonesia Expat 24th Jul 2018
The Jakarta administration is set to inspect restaurants to ensure their safety ahead of the Asian Games. Jakarta Deputy Governor Sandiaga Uno said the city would work with the Indonesian Asian Games Organizing Committee (Inasgoc) and the Jakarta Food and Drug Monitoring Agency (Jakarta BPOM) to implement the measure across the city. 

KAN to facilitate halal products export to UAE - ANTARA News Antara News 23rd Jul 2018
The National Accreditation Committee (KAN) and the National Standardization Agency (BSN) have signed a cooperation with the Emirates Authority for Standardization and Metrology (ESMA) to facilitate Indonesia`s halal export to the United Arab Emirates (UAE). 

How the World Cup made eggs more expensive in Indonesia IOL Business Report 22nd Jul 2018
The average retail price jumped 21 percent to about 29,000 rupiah ($2) per kilogram in Jakarta last week from a month earlier, according to data from the central bank-run Center for Information of Strategic Food Price. That’s the highest since at least July 2016, the earliest data compiled by the center. Average egg prices in Indonesia climbed 8 percent to 27,200 rupiah , the center’s figures show.

Malaysia, Indonesia team upto guard palm oil sector The Star Online 22nd Jul 2018
Malaysia and Indonesia have agreed to work together to promote oil palm products and counter attacks against the palm oil industry by Europe, says Malaysian Foreign Minister Datuk Saifuddin Abdullah. He said cooperation between both countries was vital to safeguard the future of the palm oil industry and smallholders, reported Bernama.

World Bank to fund Accelerate Agrarian Reform project in Indonesia | Global Edition Devdiscourse 22nd Jul 2018
Accelerate Agrarian Reform project in Indonesia will get financing support from the World Bank. The funding of US$ 240.00 million has been approved for the project in Indonesia.

Saudi Arabia to send sacrificial meat to Indonesia - ANTARA News Antara News 22nd Jul 2018
The Saudi Government is to send meat of 17,000 sheep collected during the 2018 hajj season to Muslims in Indonedia, General Supervisor of the Saudi Project for Utilization of Hajj Meat, Rahimi Ahmed Rahimi, has said. 

Health & Life Sciences

Inside Indonesia’s ‘Double Burden’ Of Diseases Asian Scientist Magazine 19th Jul 2018
Researchers in Indonesia report that despite advances in healthcare, the Southeast Asian nation remains saddled with a double burden of communicable and non-communicable diseases. 

In Papua, polio vaccines to be provided along with MR immunization The Jakarta Post 12th Jul 2018
Children receiving measles and rubella (MR) immunizations, which will be administered simultaneously from Aug. 1 to Sept. 31, will also be vaccinated for polio during the campaign, a Papuan health official said on Thursday.

Aceh to vaccinate 1.5 million children against measles, rubella The Jakarta Post 26th Jul 2018
The Aceh administration plans to vaccinate 1.5 million children aged 9 months to 15 years against measles and rubella across the province as part of the nationwide measles-rubella (MR) immunization campaign. 

BPJS suggests doctors prescribe 'other' breast cancer drugs The Jakarta Post 18th Jul 2018
Following its decision to remove the breast cancer drug trastuzumab from the National Formulary, the Healthcare and Social Security Agency (BPJS Kesehatan) has suggested that doctors prescribe a different drug for patients. 

Patient, family may sue BPJS Kesehatan for not covering cancer drug costs The Jakarta Post 18th Jul 2018
East Jakarta resident Edy Haryadi has said he is willing to go to court after he found out that the Health Care and Social Security Agency (BPJS Kesehatan) removed a cancer drug, trastuzumab, from its list of drugs that it covers. 

Health Ministry sets up clinic for pilgrims in Medina The Jakarta Post 18th Jul 2018
The Health Ministry has set up a clinic for haj pilgrims who have started traveling to Medina, Saudi Arabia, this week. Ministry spokesperson Widyawati said the clinic's facilities included inpatient wards, emergency facilities, a laboratory, pharmacy and ambulances.

OIC seeks indigenous vaccines from Muslim countries - ANTARA News Antara News 17th Jul 2018
Jeddah, Saudi Arabia (ANTARA News) - Organization of Islamic Cooperation`s (OIC`s) Science and Technology Department is seeking indigenous vaccines from Muslim countries through the Vaccine Manufacturers Group of Muslim countries and will be discussed at the next OIC meeting in Indonesia. "We are seeking indigenous vaccine production from Muslim countries.

Indonesia Clinical Laboratory Market Analysis & Outlook 2012-2022 - Analysis by Type and Type of Test Cision 17th Jul 2018
The report provides information on market size for Indonesia Healthcare and clinical laboratory. 

Indonesia among world’s less stressed countries The Jakarta Post 15th Jul 2018
Indonesia is among the world’s less stressed countries, according to recent survey released by insurance company Cigna. 

Prosperity-Independence Village, Indonesia's poverty reduction model Vietnam Plus 15th Jul 2018
The Indonesian government has announced that it will, through the Ministry of Social Affairs, push efforts to eradicate poverty along its border by concentrating on the development of areas into “Prosperity – Independence Villages” (DSM). 

Each Day Narcotics Kill 30 Indonesians: Minister Jakarta Globe 14th Jul 2018
Chief Security Minister Wiranto on Thursday (12/07) drew attention to the daily loss of dozens of lives to drug addiction in Indonesia, and said the country's "narcotics emergency" may be taken advantage of in case of proxy wars. 

Online surrogacy services spark debate on legal aspects The Jakarta Post 13th Jul 2018
Surrogacy, where a woman lends her womb to carry the baby of another couple, has no legal basis in Indonesia. However, that cannot stop the practice from mushrooming, even online. 

Family planning still not seen as human right in Indonesia The Jakarta Post 12th Jul 2018
As the world commemorated the 50th World Population Day on Wednesday, the United Nations chose “family planning is a human right” as this year’s theme. However, the concept of planned parenthood remains antithetical to the more conservative elements of Indonesian society.

ICT

Telkom to launch Merah Putih satellite next month  The Jakarta Post 27th Jul 2018
State-owned telecommunications company PT Telkom Indonesia (Telkom) is set to launch its Merah Putih satellite on Aug. 4 in the United States.

Technology key to developing smart cities in Indonesia VietnamPlus 19th Jul 2018
As information and communications technology (ICT) is revolutionising the way society functions, another significant transformation that ICT is capable of bringing in is the establishment of smart cities.

Facebook Says Indonesian User Data Not Misused Jakarta Globe 14th Jul 2018
Social media giant Facebook has assured the Indonesian government that personal data of about 1 million of its citizens had not been improperly accessed by political consultancy Cambridge Analytica.

Smart cities: Digital savviness to resilient living The Jakarta Post 13th Jul 2018
In recent years, Indonesia has been using information and communications technology (ICT) more and more in a number of applications. Most notably is the surge of online services for consumers that range from shopping and banking to transportation systems.

Indonesia leads ASEAN region in AI adoption ComputerWeekly.com 12th Jul 2018
Indonesia is leading the ASEAN region in adopting artificial intelligence (AI), with 24.6% of organisations in the sprawling archipelago adopting the technology, a new survey has found.

Infrastructure

Indonesia soars 17 levels in World Bank's logistic performance index The Jakarta Post 27th Jul 2018
Indonesia’s position in the Logistic Performance Index (LPI) rose 17 levels within two years, ranking the country 46th out of 160 countries.

Commuter line e-ticketing service back to normal The Jakarta Post 23rd Jul 2018
Train operator Kereta Commuter Indonesia (KCI) finished maintenance and upgrades for its e-ticketing machines at all train stations in Jakarta on Monday afternoon.

Toll road operator seeks Rp 4t additional capex this year The Jakarta Post 23rd Jul 2018
State-owned toll road operator PT Jasa Marga is considering a number of options, including a Komodo bond issuance, project bond issuance and a limited participation mutual funds (RDPT), to collect Rp 4 trillion (US$276.56 million) for this year’s additional capital expenditure.

China, S. Korea show interest in North Sumatra LRT project The Jakarta Post 18th Jul 2018
The North Sumatra government offered a 160-kilometer light rail transit (LRT) project, connecting the provincial capital of Medan to the Lake Toba resort area, to representatives of countries attending the Asia Europe Meeting-Transport Senior Officials Meeting (ASEM-TSOM) in Medan.

Kediri to develop US$347 million airport The Jakarta Post 18th Jul 2018
The Committee for the Acceleration of Priority Infrastructure Delivery (KPPIP) has confirmed that the government will include an airport project in Kediri, East Java, on its list of national strategic projects.

Jokowi inaugurates Kartasura-Sragen road The Jakarta Post 16th Jul 2018
President Joko “Jokowi” Widodo inaugurated on Sunday the Kartasura-Sragen toll road, part of the Solo-Ngawi toll road in Central Java.

American investors show interest in Kuala Tanjung Port The Jakarta Post 16th Jul 2018
Overseas Private Investment Corporation (OPIC) vice president David Bohigian has said that investors from the United States have expressed interest in investing in infrastructure located near North Sumatra's Kuala Tanjung Port, which is scheduled to be inaugurated by President Joko “Jokowi” Widodo on July 30.

Greater Jakarta: Final eight LRT cars arrive in Jakarta The Jakarta Post 16th Jul 2018
The eight remaining cars for the Kelapa Gading-Velodrome light rapid transit (LRT) route arrived in Jakarta from South Korea on Saturday.

Consortium proposes location change for high-speed train tracks The Jakarta Post 13th Jul 2018
State-owned consortium PT PIlar Sinergi BUMN Indonesia (PSBI) has proposed a change of location for the Jakarta-Bandung high-speed train project to the West Java provincial administration.

Developer seeks govt funds to continue Trans-Sumatra toll project The Jakarta Post 12th Jul 2018
State-owned construction company PT Hutama Karya has requested a capital injection of Rp 12.5 trillion (US$868 million) from the government to continue the Trans-Sumatra toll road project.

Government to build 10 new airports The Jakarta Post 12th Jul 2018
Transportation Minister Budi Karya Sumadi has said that the government plans to develop 10 new airports to support the development of tourism in the country.

Manufacturing

Indonesia to enhance strategic partnership with Boeing Antara News 24th Jul 2018
The Trade Ministry seeks to enhance strategic partnerships with the US, including with the world`s largest aircraft manufacturer Boeing, which is expected to be mutually beneficial to both parties.

House approves Rp 2.57t budget for Industry 4.0 The Jakarta Post 12th Jul 2018
The Trade Industry is getting an additional Rp 2.57 trillion (US$178 million) after the House Commission VI overseeing industry affairs agreed to financially support the development of Industry 4.0.

Airbus near blockbuster $23 billion jet sale to AirAsia The Jakarta Post 15th Jul 2018
Airbus is closing in on a blockbuster agreement to sell $23 billion worth of aircraft, based on list prices, to AirAsia, according to people familiar with the matter.

Market Regulation

New Regulation on Dispute-Resolution Services for Government Procurement Contracts Hukum Online 24th Jul 2018
In a bid to further enhance dispute-resolution services for government goods/service procurement contracts, the National Public Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah – “LKPP”) has issued Regulation of the LKPP No. 18 of 2018 on Dispute-Resolution Services for Government Goods/Service Procurement Contracts (“Regulation 18/2018”).

Recruitment of Foreign Workers Further Regulated Hukum Online 24th Jul 2018
As a follow up to the new legal framework for foreign workers, the Minister of Manpower (“Minister”) has issued Regulation No. 10 of 2018 on the Recruitment of Foreign Workers (“Regulation 10/2018”).

Patent Implementation by Patent Holders in Indonesia Hukum Online 24th Jul 2018
Regulation 15/2018 addresses the obligation of patent holders to implement their patents as part of the patent registration process in Indonesia.

Investment board focusing on internal work to prepare OSS takeover The Jakarta Post 19th Jul 2018
Investment Coordinating Board (BKPM) head Thomas Trikasih "Tom" Lembong said the board was now busy with international work to prepare for the takeover of the Online Single Submission (OSS) system, while the external affairs are entrusted to the Trade Ministry.

Investment board prepares to take over OSS system The Jakarta Post 19th Jul 2018
The Investment Coordinating Board (BKPM) is preparing personnel and the infrastructure to take over the Online Single Submission (OSS) system currently handled by the Office of the Coordinating Economic Ministry.

TPP

TPP fuels Asia's zest for regional free trade pacts Nikkei Asian Review 12th Jul 2018
Trade negotiators from the 11 Trans-Pacific Partnership countries will gather in Japan from July 17 to July 19 to hammer out procedures for accepting new members into the bloc, among them Thailand, Indonesia and possibly the U.K.

Travel & Tourism

Citilink eyes new route from Banyuwangi to Kuala Lumpur The Jakarta Post 24th Jul 2018
Garuda Indonesia's low-cost subsidiary Citilink has revealed plans to open a new international route from Banyuwangi in East Java to Kuala Lumpur in Malaysia on Tuesday.

Soekarno-Hatta's Terminal 2 to be used for low-cost carriers The Jakarta Post 23rd Jul 2018
The Tourism Ministry is working hard to achieve its target of 20 million tourist arrivals by 2020, including by proposing the establishment of low-cost carrier (LCC) terminals in airports across the country.

Surabaya named best tourism city The Jakarta Post 23rd Jul 2018
East Java capital Surabaya topped the list of the 10 best cities in tourism at the 2018 Yokatta Wonderful Indonesia Tourism Awards.

Indonesia needs LCC terminals to boost tourist arrivals: Minister The Jakarta Post 13th Jul 2018
Tourism Minister Arief Yahya says Indonesia will equip its airports with low-cost carrier (LCC) terminals to help boost the arrival of foreign tourists in the country.