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EXIT STRATEGY FOR BUSINESSES AND WORK-FROM-HOME WORKERS
The Coordinating Ministry for Economic Affairs is finalizing a five-phase scheme to re-open some cities in Indonesia. This exit strategy could be executed in June if the government sees a decline in new cases and meets the 300,000 testing level per month. CMEA Minister Airlangga Hartarto said that the government is coordinating with the National Disaster Mitigation Agency (BNPB) to prepare health protocols to ensure safety as restrictions are lifted. The CMEA considered gradually opening businesses, i.e. shopping centers on June 8, then schools and sports centers on June 15. All businesses are planned to run on the normal speed at the end of July or early August. Upon re-opening, the government would conduct periodic reviews and re-apply PSBB if needed.
Prior to the exit plan, the Government has urged for people below 45 years old, who have a lower fatality rate for COVID-19, back to their workplaces. The Task Force on COVID-19 Rapid Response clarified that this policy is in line with PSBB because it only applies to the 11 essential sectors, for example security, health, food, finance, communication, and logistics. The Government argued that it is an effort to balance reducing COVID-19 and unemployment cases which, according to the Manpower Ministry, has hit nearly 3 million.
This policy raised concerns since people of any age can be carriers and impact the more vulnerable groups. Moreover, epidemiologists criticized that without compelling evidence, the decision to ease social restriction is premature. For example, government officials from Hong Kong and Brunei Darussalam have said they will wait for 30 consecutive days of no new cases before they consider reopening. Otherwise, new clusters can reemerge like in Germany, China, Korea, which may further prolong economic recovery.
As of May 13, Indonesia has 15,438 COVID-19 cases which include 689 new cases in one day - the highest record since the first case was announced on March 2. The mortality rate has dropped significantly from over 11 percent in end April to 6.65 percent on Mar 13, with 1,028 deaths recorded.
CONSUMER GROUP FILES LAWSUIT OVER TOKOPEDIA DATA BREACH
On May 7, the Indonesian Consumer Community (KKI) sued Tokopedia and the Ministry of Communication and Information Technology (MCIT) for failing to protect consumers from the data breach that occurred in March 2020. KKI’s lawsuit was filed against Law No. 24 of 2013 on Population Administration, Government Regulation No. 71 of 2019 on Electronic Systems and Transactions, and Communication and Information Technology Ministerial Regulation No. 20 of 2016 on Protection of Personal Data in Electronic Systems.
KKI wrote in a statement that Tokopedia failed to stand by the laws and keep users’ personal data protected. Meanwhile, MCIT was accused of being negligent in supervising the implementation of the electronic system regulation to prevent such breach. According to Regulation No. 71 of 2019, MCIT is responsible to control, inspect, track, and secure personal data.
In response to the data breach, MCIT formed a team with the National Cyber and Crypto Agency (BSSN) and Tokopedia to investigate the breach. MCIT has requested Tokopedia to immediately notify affected users, internally conduct an investigation to find out the responsible party and improve its security system. Tokopedia has appointed independent cybersecurity institutions to conduct the investigation. They claimed that to have adhered to Regulation No.71 on electronic systems and transactions. Prior to the breach, Tokopedia has said that they upgraded their security and added a two-factor authentication system.
The Data Breach may have put more pressure on DPR to pass the Personal Data Protection (PDP) bill. The PDP Bill has been under development since January when President Jokowi tabled the Bill to DPR. To date, the PDP Bill is at the deliberation stage under DPR and Commission I is in the process of forming a PDP Working Group to accelerate finalization of the Bill.
In the Tokopedia data breach, 15 million user data were compromised. A total of 91 million details, including names, email addresses, and birth dates were offered for $5,000 on the dark web. Tokopedia’s spokesperson has ensured that financial transactions and information remains safe, while user’s passwords are protected by encryption. Tokopedia is Indonesia’s biggest e-commerce platform with more than 7 million merchants and 90 million users. It has raised a total of $2.9 billion in ten years, including from China’s Alibaba and Japan’s Softbank.
GOVERNMENT ANNOUNCES SECOND STIMULUS PACKAGE FOR COVID-19 RESPONSE
After announcing the first stimulus package (in three parts) with a total of US$12 billion (Rp 181 trillion), the Ministry of Finance is finalizing the second package for workers in 11 business sectors: food, trade, electricity, oil and gas, coal and mining, forestry, creative economy, telecommunications, logistics, transportation, and construction. Expected incentives include individual income tax exemptions, import tax deferrals for six months, a 30 percent corporate tax discounts for six months, and an expedited restitution process with an IDR 5 billion (USD 322,000) in VAT restitution limit.
In the first package, the government has provided similar incentives for workers and companies, with a total of IDR 22.9 trillion (US$1.46 billion) focused on tourism, airlines, property, scientific research, health, banking and insurance.
In addition, the Indonesian government is preparing additional incentives for MSMEs. More than 60 million MSMEs are expected to receive loan interest cuts ranging from two to six percent. In addition to interest cuts, micro businesses will also receive payment delay incentives through a Micro-credit Program, and Ultra-Micro Financing Program, and Women-based Financing Programs. Finally, six million farmers and 1 million cooperatives (Koperasi) will receive six percent interest subsidies for six months.
Finance Minister Sri Mulyani stated that tax revenue will keep dropping and commodity prices will continue to decline over the next months as a result of the economic shock. In response to this on-going downfall, Minister Sri Mulyani expects these fiscal stimuli to reduce the risk of massive bankruptcy for businesses in Indonesia due to the COVID-19 shock.
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| COVID-19
Indonesia bans commercial flying until 1 June Flight Global 15th May 2020
Indonesia’s air navigation service will continue to operate, and airports will handle flights that remain in service. Although the ban on commercial flying was meant to start today, the transport ministry decided to grant a one-day dispensation for domestic flights to operate, citing the need to allow carriers to fulfil their obligations to passengers who had booked tickets before the ban was announced. It is unclear if the ban will be extended beyond 1 June, and into this year’s Hajj season. The start of Hajj travel this year is likely to start at the end of June or early July, pending approvals from Saudi Arabia. In April, seven Indonesian carriers offered 9.45 million seats on domestic services, a 4.8% decline year-on-year. The number of seats on international services fell by 82% to just 139,000 seats. The decline in domestic seat capacity was driven by capacity reductions from Garuda Indonesia, Citilink, Indonesia AirAsia, Sriwijaya Air and Wings Air. On the other hand, Batik Air grew its capacity by 29% while Lion Air added 18% more seats in April. On international flights, both Indonesia AirAsia and Wings Air halted their overseas flying, while the remaining five carriers reduced their seat capacity by up to 93%. Lion Air Group did not respond to Cirium’s request for comment on the ban. Indonesia AirAsia had suspended operations since 1 April, citing impact of the coronavirus pandemic. Following the ban, state-owned airport operator Angkasa Pura I says it is working on an arrangement where aircraft parked at the 15 airports it manages will not affect the operations of cargo flights that continue to be in service.
CONSULATE GENERAL OF THE REPUBLIC OF INDONESIA Osaka JAPAN Kementerian Luar Negeri Repulik Indonesia 15th May 2020
The Government of the Republic of Indonesia via Minister of Law and Human Rights issued temporary prohibitions of entry and/or transit (travel ban) into Indonesia for foreigners. Prof. Yasonna H. Laoly, Minister of Law and Human Rights, stated that the prohibition applies to all foreigners, with the exceptions of: Foreigner holders of Temporary Stay Permit (ITAS) or Permanent Stay Permit (ITAP) in Indonesia; Foreigner holders of Indonesian Diplomatic Visa or Indonesian Service Visa; Foreigner holders of Diplomatic Stay Permit or Service Stay Permit in Indonesia; Medical Aid Workers or Food Sustenance Workers for Humanitarian Purposes; Crews (Air, Sea or Land Transport); Foreigners/Expatriates working on Strategic National Projects. The aforementioned foreigners excluded from the new policy must comply with the following requirements: Possess a valid health certificate (in English language) issued by Health Authority of respective country; Residing for at least 14 (fourteen) days in a country/territory with no eminent case of Covid-19; Statement of compliance to be Quarantined for 14 (fourteen) days facilitated by the Government of the Republic of Indonesia;
COVID-19 volunteers urge govt to release data as suspected virus deaths exceed 3,000 The Jakarta Post 14th May 2020
Volunteers for crowdsourced database KawalCovid-19 have renewed their calls for the government to release all of its COVID-19 data as the number of suspected COVID-19 deaths recorded by provincial administrations in the country have exceeded 3,000, nearly three times the confirmed death toll reported by the national COVID-19 task force. KawalCovid-19 co-founder Elina Ciptadi said the availability of data on suspected deaths was important so that Indonesians would understand the severity of the outbreak in their respective territories and would be able to calculate risk appropriately.
Snaking queues at Jakarta airport as crowds ignore COVID-19 distancing rules CNA 14th May 2020
Thousands of travelers queued at an airport terminal in the Indonesian capital Jakarta on Thursday (May 14), ignoring regulations on social distancing and despite an official lockdown slated to run until the start of June. One traveler, who asked to remain anonymous, said that confusion reigned as officials attempted to ensure all airline passengers underwent health checks and get flight approval letters stamped. According to guidelines issued by the transportation ministry, airport operators are required to implement health protocols such as temperature checks and manage physical distancing to avoid crowds and queues. In a statement, state airport operator Angkasa Pura said lines had thinned by afternoon, and efforts were underway to ensure physical distancing. But the scenes have raised fears that the coronavirus is not being sufficiently contained. "This is worrying because people can take this virus to the regions, especially to villages and this will prolong our misery and our fight against COVID-19," said Alvin Lie of the ombudsman office, which investigates complaints about government agencies.
Indonesia's COVID-19 deaths top 1,000 as those under 45 urged to resume work U.S. 12th May 2020
Despite social restrictions scheduled to run until the end of May, the head of Indonesia’s coronavirus response taskforce Doni Monardo said on Tuesday that people under 45 would be permitted to return to work in designated sectors. Monardo said the rules on returning to work, intended to prevent mass layoffs in Southeast Asia’s largest economy, applied to 11 sectors including security and defence, health, food, finance, communication and logistics. The Indonesian government has been criticised by epidemiologists for pushing to prematurely ease social restrictions without compelling evidence the country is flattening the coronavirus curve, or showing a slower rate of infection. The latest announcement, which comes days after transportation restrictions were also controversially relaxed, appeared to cause some confusion in the government. Administrative and Bureaucratic Reforms Minister Tjahjo Kumolo said there was no plans to allow millions of Indonesians to return to work. Meanwhile, President Joko Widodo called for a calibrated approach. “The easing for PSBB (large scale social restrictions) should be carried out carefully and not in a hurry, all based on data from the field so that the decision is valid,” he said.
Indonesia prepares "exit strategies" to reopen parts of economy Reuters 8th May 2020
Indonesia is considering plans for a phased resumption of businesses in Southeast Asia’s biggest economy from as early as June 1, with the easing of restrictions aimed at curbing the novel coronavirus, government documents showed. The proposals come as medical experts have criticised Indonesia for being slow to respond to the outbreak. Its official death toll of 930 is the highest in East Asia outside China. Still, there is mounting concern about the deepening economic impact of restrictions with at least 2 million people losing their jobs in the past six weeks and poverty increasing. Officials at the Coordinating Ministry of Economic Affairs have looked at a five-phase plan to reopen some cities under strict health protocols, including wearing masks and social distancing, a document reviewed by Reuters showed.
Coronavirus: All transport services in Indonesia resume operations Straits Times 7th May 2020
The government had temporarily prohibited domestic land, air and sea travel, as well as international air travel, with only a few exceptions, to last from late last month until next month, in line with the ban on the annual exodus, locally known as mudik, in the world's biggest Muslim-majority country. Indonesia celebrates Hari Raya Aidilfitri on May 24 and 25. In a separate press briefing, Indonesia's Covid-19 task force chief Doni Monardo said: "There's no change in the regulation about mudik. It means mudik is still prohibited." Officials said the move is necessary as essential workers and people with valid reasons to be out, such as those needing to see a doctor or visit dying relatives, have been hampered by the transport limitations.
Government to allow public transportation to operate, but still bans ‘mudik’ The Jakarta Post 6th May 2020
Transportation Minister Budi Karya Sumadi said on Wednesday that it was possible for the government to allow all means of public transportation to start operations on Thursday to accommodate particular individuals while insisting on banning this year’s Idul Fitri mudik (exodus). His ministry, he added, would issue a circular letter as a derivative regulation of the currently issued Transportation Ministerial Regulation No. 25/2020, which restricts all forms of passenger travel as part of the mudik ban, as the government scrambles to contain COVID-19.
Task Force Develop the BLC Portal Data Integration Ministry of Communication and Information 3rd May 2020
The Task Force for the Acceleration of Handling Covid-19 launched the Unified Against COVID (BLC) data integration portal. Minister of Communication and Information Johnny G. Plate said the portal was the result of intensive work together with the Ministry of Communication and Information, the Ministry of Health, BNPB, the Central Information Commission, and related ministries and institutions. United Against Covid-19 has two main functions. First, the function of integration and consolidation of health, population and logistics data, and other data collected from 514 districts and cities, 34 provinces, and ministries of relevant institutions, as well as digital platforms. The Minister of Communication and Information added that the portal "Unite Against Covid-19" will be equipped with SEHATJIWA features, a psychological service during the Covid-19 Pandemic.
More Businesses in Indonesia to Avail Special Tax Incentives as Part of COVID-19 Stimulus ASEAN Business News 30th Apr 2020
The Indonesian government is planning to extend the business sectors eligible for tax incentives set out in the second COVID-19 stimulus package. These sectors will benefit from the deferment of income and import taxes, while certain employees will also be eligible for income tax breaks. The government is preparing other incentives in the form of subsidizing and easing loan payments for micro, small and medium-sized enterprises. Investors will need to wait for the upcoming Ministry of Finance regulation to come into law in order to avail the incentives.
Indonesian tech startup Stoqo becomes latest casualty of the virus The Star Online 29th Apr 2020
Stoqo Teknologi Indonesia, an online platform that supplies fresh ingredients to food outlets, is shutting down, becoming the latest casualty of the coronavirus outbreak. The move underscores the heavy toll on the region’s tech startups. Many firms have seen revenue evaporate after governments imposed tough restrictions on social activities to curb the spread of the virus, forcing them to cut salaries and jobs to deal with a cash crunch. Jakarta-based Traveloka, South-East Asia’s largest online travel service, dismissed about 80 employees in Singapore as part of broad cost-cutting measures, Bloomberg News reported this month.
International flights maintain normal operations despite ‘mudik’ ban: Ministry The Jakarta Post 25th Apr 2020
The Transportation Ministry has asserted that international flights to and from the country will continue to operate normally, despite a previous statement that all passenger flights to overseas destinations had been suspended to prevent people from participating in the annual Idul Fitri mudik (exodus). The ministry’s air transportation director general, Novie Riyanto, said the ban on air travel would not apply to flights serving international routes. He added that the transportation ministerial regulation also did not restrict Indonesian nationals currently abroad from entering the country. The ban also does not apply to flights carrying leaders of state institutions or foreign envoys, nor does it apply to aircraft engaging in special repatriation operations for Indonesians or foreign nationals. Air cargo transportation will also be permitted. The ministry previously stated on Thursday that the passenger travel suspension would also apply to all passenger transportation to domestic and overseas destinations, both commercial and chartered flights.
Jakarta Extends Restrictions Until May 22 Jakarta Globe 23rd Apr 2020
The large-scale social restriction in the Indonesian capital has been extended by another four weeks until May 22 to contain the spread of coronavirus, Governor Anies Baswedan announced on Wednesday. Jakarta has become the epicenter of the Covid-19 outbreak in Indonesia, accounting for nearly a half of confirmed cases nationwide, which stood at 7,418 as of Wednesday. The current restriction expires on Thursday, but the governor deemed that the health crisis is far from over and must be extended. He also vowed to take firmer measures to keep people at home and ban public gatherings.
Indonesia Imports $50m Worth of Medical Supplies as Coronavirus Cases Show No Sign of Slowing Jakarta Globe 22nd Apr 2020
Indonesia has spent Rp 777.59 billion, or $50 million, on imported medical supplies since the coronavirus outbreak began in earnest in the country early last month and more imports are now being planned as the number of cases continues to grow. The outbreak-related imports are dominated by face masks, which have totaled 17.1 million units, the director-general of Customs and Excise, Heru Pambudi, said in Jakarta on Wednesday.
Indonesia bans annual holiday exodus to combat virus spread Bangkok Post 21st Apr 2020
Indonesia banned an annual ritual of citizens traveling in large numbers to their hometowns and villages ahead of the Muslim festival of Eid al-Fitr to prevent the spread of coronavirus in the world’s largest Muslim-majority country. President Joko Widodo, who announced the ban at a cabinet meeting in Jakarta on Tuesday, said the prohibition was based on an assessment that about 24% of people who usually undertake the holiday travel were planning trips irrespective of the virus outbreak. The government has begun distribution of food kits and rolled out other social assistance programs this week to help the jobless and poor in cities, he said.
Indonesia to issue larger tax breaks to cover 11 more sectors The Jakarta Post 17th Apr 2020
Indonesia will issue larger tax breaks to cover 11 business sectors similar to the incentives given to manufacturing industries to help companies weather the economic impacts of the COVID-19 pandemic. The 11 sectors are food, trade, electricity, oil and gas, mining and coal, forestry, tourism and the creative economy, telecommunications, logistics, transportation and construction, Finance Minister Sri Mulyani Indrawati said on Friday. She added that the incentives would be in the form of individual income tax exemptions, import tax deferrals and 30 percent corporate tax discounts. The tax incentives would be covered in the fourth stimulus package that the government is currently finalizing. “Further stimuli will be announced, including for the healthcare sector,” the finance minister said. “We will continue to make sure that measures to lessen the COVID-19 impacts will have proper budget support.”
Customs
Indonesia-Australia free trade deal to be activated by July The Sydney Morning Herald 7th May 2020
A free trade deal covering $18 billion in agriculture, education and health services between Australia and Indonesia will be activated within two months, as the Morrison government looks to push the economy out of the coronavirus pandemic. The deal comes into force on July 5, following years of delay and protracted negotiations over what would be left in, and out, of the agreement. Trade Minister Simon Birmingham said the deal meant 99 per cent of Australian goods will enter Indonesia duty-free or under significantly improved arrangements.
Defense & Security
Indonesia calls for parties to exercise self-restraint in South China Sea amid pandemic The Jakarta Post 7th May 2020
Indonesia expressed on Wednesday its concern about recent activities in the South China Sea that could potentially lead to an escalation in tensions at a time when a collective global effort is needed to combat the COVID-19 pandemic. In a virtual press briefing on Wednesday, Indonesian Foreign Minister Retno LP Marsudi said that Indonesia underlined the importance of maintaining peace and stability in the South China Sea including “ensuring freedom of navigation and overflight” and urged “all parties to respect international law particularly the United Nations Convention for the Law of the Sea [UNCLOS]”.
Indonesian defense industry feels COVID-19 pinch The Jakarta Post 4th May 2020
The domestic defense industry is feeling the pinch from COVID-19 as it struggles to maintain manufacturing output amid disruption to supply chains and a decline in productivity as a result of the government’s stay-at-home measures. Defense firms said they were trying to fulfill existing contracts with buyers, while also shifting some of their operations to produce essential medical products, such as personal protective equipment (PPE) and ventilators, following a Defense Ministry instruction to support the government in tackling the outbreak.
Indonesian Navy may be forgotten asset in pandemic The Jakarta Post 25th Apr 2020
At least five navies in the world have deployed their assets, including hospital ships, to provide additional health capability in battling COVID-19. The Indonesian government has reallocated funds within the 2020 state budget for COVID-19 medical assistance, including the Defense Ministry’s budget of Rp14 trillion (US$898.73 million) originally for defense equipment modernization. As in other countries’ contingency plans, Indonesia’s military could play a bigger role to assist medical operations, in the framework of “military operations other than war” under the 2004 Indonesian Military Law. As medical treatment is the priority, the Health Ministry could involve the military to organize medical units, since the armed forces are trained — some if not all — with standard medical procedures and implementing quarantine policy.
E-Payments
Facebook in talks to tie up with Indonesia's e-payment companies The Straits Times 20th Apr 2020
Facebook is fighting to get a slice of the pie in Indonesia's booming e-payment business, whose revenue is expected to grow nine-fold in the next five years in the country of 270 million people. It has approached existing digital payment companies to tie up with and compete with major rivals, including local players SoftBank-backed OVO and rival GoPay, owned by Jakarta-based ride hailing firm Gojek and backed by among others, Google and China's Tencent. OVO is an affiliate of Grab, Gojek's closest rival in Indonesia.
Energy
Refusing to Lower Fuel Prices, Govt: Global Prices Not Stable Yet Tempo 4th May 2020
Energy and Mineral Resources (ESDM) Minister Arifin Tasrif confirmed that the government had not yet reduced fuel prices due to various considerations, including fluctuating prices of global crude oil lately. “The government still maintains the prices because global oil prices and the exchange rates are still unstable and may drop,” said Arifin during a meeting with the House of Representatives (DPR) Commission VII on Monday, May 4. Arifin underlined that his side was monitoring the oil price crash. Although the prices often drop during a crisis, he added, it will return to normal within three months.
UPDATE 1-Indonesia cuts 2020 oil, gas production outlook - SKK Migas U.S. 16th Apr 2020
Indonesia’s upstream oil and gas regulator SKK Migas has cut its full-year production outlook for the country, its chairman Dwi Soetjipto told reporters on Thursday, after reporting a drop in oil and gas output in the first quarter. The coronavirus pandemic and lower oil prices have dealt a further blow to the southeast Asian country’s oil and gas production, which had already been expected to contract for a fourth straight year in 2020. Aging fields and delays to new projects have kept output levels below government targets. Indonesia’s crude oil lifting from January to March stood at 701,600 barrels per day (bpd) versus 746,300 bpd in 2019, while gas lifting in the period stood at 5,866 million cubic feet per day (mmcfd) compared to 5,912 mmcfd last year. SKK Migas cut this year’s production outlook for both crude oil and gas to 725,000 bpd and 5,727 mmcfd respectively.
House approves revised Mining Law amid outcry The Jakarta Post 12th May 2020
As the country grapples with the COVID-19 crisis, lawmakers have approved a controversial revision of the 2009 Coal and Mineral Mining Law, despite outcry from civil society organizations. The new law, aimed at developing Indonesia’s downstream mining industry and increasing economic growth, will allow miners to extend permits through a simpler and centralized bureaucratic process. After months of deliberation, eight of the nine parties at the House of Representatives (DPR) agreed on Tuesday to pass the bill, with the Democratic Party being the only one to oppose it. The bill revises 82 percent of 175 articles in the original Mining Law and adds two new chapters. Civil society groups have criticized the changes as sidelining regional autonomy, environmental protection and local communities. The revisions have been designed to harmonize with mining rules under the omnibus law on job creation, another game-changing piece of new legislation.Energy and Mineral Resources Minister Arifin Tasrif, speaking on Tuesday, said the bill aimed to stimulate downstream value-added industries while also providing legal certainty for investment in such industries.
Demand for photovoltaic panels plummets in Indonesia amid pandemic The Jakarta Post 4th May 2020
Indonesia’s photovoltaic (PV) providers face a bleak business outlook at least in the next six months as the government and individual users cut back spending on anything deemed nonessential amid the pandemic, including solar panels. Demand for commercial PV panels was down up to 70 percent in the March-April period from a year earlier as businesses aborted installation plans and as, most critically, the government cut back electrification project plans, according to a recent survey conducted by energy think tank Institute for Essential Services Reform (IESR). Meanwhile, demand for residential PV systems dropped by up to 100 percent during the same period as consumers reallocated funding to groceries, bills and savings.
Health & Life Sciences
Minister instructs airport operator to take charge of health inspections The Jakarta Post 11th May 2020
Transportation Minister Budi Karya Sumadi has instructed state-owned airport operator PT Angkasa Pura II to conduct passenger health inspections at the country’s busiest airport as the number of repatriated Indonesian arrivals has surged. The number of returning Indonesians has increased in recent days, with a total of 1,300 people arriving on seven flights at Soekarno-Hatta International Airport on Monday, up from 1,000 people on Sunday, according to the minister.
Health Ministry Approves Buol District's Proposal for PSBB Tempo 10th May 2020
The Health Ministry has approved a proposal for the application of large-scale social restrictions (PSBB) in Buol District, Central Sulawesi Province, to accelerate the handling of COVID-19 cases in the district. "We have approved the Buol district government's proposal for PSBB today (Saturday)," Health Minister Terawan Agus Putranto said on the Health Ministry's website early Sunday. He said the coronavirus outbreak in Buol District has spread so significantly that he approved the imposition of PSBB in the district through his decision number .HK.01.07/Menkes/300/2020.dated May 9, 2020.
Covid-19 Patients Need Higher Protein Intake: Nutritionists Jakarta Globe 7th May 2020
Covid-19 patients need higher protein intake to help speed up their recovery time from the disease, Triyani Kresnawan, a nutritionist and member of the Indonesian Nutritionists Association, or Persagi, said on Thursday. "Protein optimizes the body's immune system, replaces damaged body tissues and strengthens muscles," Triyani said in an online press conference. Covid-19 patients also need a high-calorie diet, especially those suffering from high fever.
House grills Health Ministry over red tape in ventilator production The Jakarta Post 6th May 2020
The House of Representatives has slammed the Health Ministry for slowing down the development of ventilators done by the Research and Technology Ministry’s COVID-19 research consortium to help meet skyrocketing demand during the outbreak. Maman Abdurrahman, a member of House Commission VII overseeing research and technology, took issue with the Health Ministry’s slow process in approving the medical equipment’s development. As of Tuesday, only two out of 27 ventilators developed and proposed by domestic manufacturers had passed the Health Ministry’s health facility security center’s (BPFK) performance test.
From test kits to robots, Indonesia develops locally made devices to aid COVID-19 battle The Jakarta Post 6th May 2020
As demand for medical devices and innovation grows in virus-hit Indonesia, the Research and Technology Ministry's consortium for COVID-19 studies has pushed for the development of domestically produced medical equipment, ranging from test kits to robot assistants, to boost the country's battle against the pandemic. The consortium, comprising research institutes, universities, private companies and state-owned enterprises, has developed rapid diagnostic test kits to detect SARS-CoV-2 — the virus that causes COVID-19 — amid shortages of reagents used in polymerase chain reaction (PCR) tests, Research and Technology Minister Bambang Brodjonegoro said.
Most Indonesians concerned about overcapacity at health facilities during pandemic: Survey The Jakarta Post 5th May 2020
A recent survey conducted by several NGOs suggests that the vast majority of Indonesians are concerned about overcapacity at medical facilities during the COVID-19 pandemic. The NGOs are Amrta Institute, Lokataru Foundation, Indonesian Legal Aid Foundation (YLBHI), Jakarta Legal Aid Institute (LBH Jakarta) and Rujak Center for Urban Studies. "Of the 1,100 respondents, 88.4 percent said they were afraid that medical facilities could not accommodate those who were sick," Nila Ardhianie, the director of the Amrta Institute, said in an online press conference on Monday.
Indonesia rallies to keep COVID-19 vaccines, drugs affordable The Jakarta Post 1st May 2020
As countries and private institutions rush to produce a viable vaccine for COVID-19, concerns over the possible monopoly of drug patents have sparked an international debate on the need to maintain equitable and affordable access to these solutions. Indonesia has made it a point to ensure that multilateral efforts are actively pursuing this objective, its top diplomat said, given how strict access to patented drugs can be under existing norms. “When a vaccine has been developed or the drugs currently undergoing clinical trials have been acquired, the next question to ask is whether all countries have access to these vaccines and medicine at affordable rates,” Foreign Minister Retno Marsudi told reporters in a virtual briefing on Wednesday.
Energy and Mineral Resources Ministry to Start Making Affordable Ventilator Jakarta Globe 21st Apr 2020
The Energy and Mineral Resources Ministry has been developing an "affordable" ventilator to treat Covid-19 patients and is now looking to get a certification for the new device. Energy and Mineral Resources Minister Arifin Tasrif said he had instructed the ministry's research and development division to develop the ventilator to assist the government in its handling of the coronavirus pandemic.
Bio Farma to Produce Locally-Made PCR Test Kits for Covid-19 Jakarta Globe 21st Apr 2020
State-controlled pharmaceutical holding company Bio Farma is set to produce a real-time polymerase chain reaction testing kit for detecting Sars-CoV-2, the novel coronavirus that causes the Covid-19 disease, based on a prototype developed by Indonesian startup company Nusantics. Honesti Basyir, Bio Farma's president director, said the company would receive the prototype soon and use it for mass production using the company's production facility in Bandung.
Early estimates of the indirect effects of the COVID-19 pandemic on maternal and child mortality in low-income and middle-income countries: a modelling study The Lancet Global Health 14th May 2020
While the COVID-19 pandemic will increase mortality due to the virus, it is also likely to increase mortality indirectly. In this study, we estimate the additional maternal and under-5 child deaths resulting from the potential disruption of health systems and decreased access to food. Our least severe scenario (coverage reductions of 9·8–18·5% and wasting increase of 10%) over 6 months would result in 253 500 additional child deaths and 12 200 additional maternal deaths. Our most severe scenario (coverage reductions of 39·3–51·9% and wasting increase of 50%) over 6 months would result in 1 157 000 additional child deaths and 56 700 additional maternal deaths.
ICT
COVID-19-free hospital letters offered on e-commerce platforms The Jakarta Post 15th May 2020
Hospital letters declaring the holder COVID-19-free is being offered on a number of e-commerce platforms for people hoping to travel amid the mudik (exodus) ban. The document includes the letterhead and stamp of hospital operator Mitra Keluarga, complete with a blurred signature of a general practitioner and a watermark of a blocked website address. Screenshots making the rounds on social media showed the letter was being sold for between Rp 70,000 (US$4.70) and Rp 39 million per copy. The offering went viral amid news of a packed Soekarno-Hatta International Airport in Tangerang, Banten, where passengers lined up to get their required travel documents checked by airport authorities, including negative COVID-19 polymerase chain reaction (PCR) tests, rapid test results or health documents from a hospital or clinic, to proceed to their flights. Mitra Keluarga denied having issued the letters.Tokopedia external communications senior lead Ekhel Chandra Wijaya said no letters had been purchased on the platform before it took down both the product and the merchant. He urged e-commerce users to report products that violate Tokopedia’s terms and conditions or applicable Indonesian laws through available features on the digital platform.
'Our data is secure': Bukalapak denies reports of user data breach The Jakarta Post 8th May 2020
Homegrown e-commerce platform Bukapalak has denied reports that the data of millions of its users were compromised and sold on the dark web, only days after e-commerce unicorn Tokopedia was reported to have faced an internal system breach. “After an internal investigation, we found that the reports currently circulating were sourced from a data breach attempt last year. There have been no new incidents,” said Bukalapak corporate communication head Intan Wibisono. She said the company monitored and recorded the people who accessed, read, replaced, or deleted its data. Bukalapak stores sensitive data, such as citizen ID cards (KTP), in a special form of storage in which data is automatically deleted to protect the users’ privacy, she added.
KKI sues Tokopedia, Communication Ministry over data breach - ANTARA News Antara News 7th May 2020
The Indonesian Consumer Community (KKI) has filed a lawsuit in the Central Jakarta District Court against e-commerce platform Tokopedia and the Ministry of Communication and Informatics over data breach involving millions of customers. KKI's lawyer, Akhmad Zaenuddin, in a written statement here on Wednesday, cited Tokopedia's negligence as the reason behind the leak. The state necessitates every party that obtains personal data to maintain confidentiality and protect the personal data and privacy of citizens conducting electronic transactions. KKI Chairman David Tobing also expressed regret over Tokopedia not divulging details of the data that was stolen and mishandled by a third party. The Communication and Informatics Ministry also faces legal action over its ineptness in supervising the implementation of the electronic system to prevent leakage of personal data.
'Akademi Edukreator' initiative aims to inspire teachers, creators in Indonesia The Jakarta Post 6th May 2020
The Akademi Edukreator initiative aims to inspire and train teachers, content creators and professionals in Indonesia to produce high-quality video content via YouTube. The initiative is the result of a collaboration between science and education media firm Kok Bisa, educational video platform YouTube Learning, the Indonesian Institute of Sciences (LIPI), educational organization Yayasan Semua Murid Semua Guru (All Students All Teachers Foundation) and the Education and Culture Ministry. Around 24 speakers were featured, including actor Nicholas Saputra, Google Indonesia policy head Putri Alam, Kok Bisa cofounder Gerald Bastian, actor Chelsea Islan, Finance Minister Sri Mulyani, Education and Culture Minister Nadiem Makarim and Indonesian student studying at Waseda University in Japan Jerome Polin.
Data breach jeopardizes more than 15 million Tokopedia users, report finds The Jakarta Post 3rd May 2020
Homegrown e-commerce unicorn Tokopedia has had its internal database breached by an as-yet unidentified party, resulting in a massive data leak that has affected millions of its users, according to a recent report by cybersecurity research collective Under the Breach. The group wrote on its official Twitter page @underthebreach that the hack occurred in March and affected personal information belonging to more than 15 million users. Tokopedia spokesperson Nuraini Razak confirmed that a breach had taken place but claimed the company had ensured the security of its users’ personal data.
Indonesia's Tokopedia e-commerce platform probes alleged data leak of 91 million users The Straits Times 3rd May 2020
Under the Breach, which monitors cyber crime, said on Sunday the hacker had updated the post to offer the details of 91 million users for "US$5,000 on the Darknet". The firm shared a screenshot of the hacker's proposed offer posted online. A Tokopedia spokesman declined to comment directly on the hacker’s claims, but told Reuters on Sunday that “all transactions with all payments methods at Tokopedia ... remain secure.”
Infrastructure
Government looks to recovery with $5.3b toll road investment offerings The Jakarta Post 4th May 2020
Looking toward post-coronavirus economic recovery, the government is to offer six toll road projects with a combined value of Rp 80.5 trillion (US$5.3 billion) to investors this year, officials have said. The projects consist of five private toll road projects and an Rp 8.7 trillion government project for highway bridges connecting Batam Island with the nearby islands of Tanjung Sauh, Buau and Bintan in Riau Islands province. The Public Works and Housing Ministry is offering the investment projects as a public private partnership (PPP), according to public works minister Basuki Hadimulyono.
MRT Jakarta delays phase 2 construction amid COVID-19 outbreak The Jakarta Post 1st May 2020
The COVID-19 outbreak has forced city-owned transportation company PT MRT Jakarta to postpone construction of phase 2 of the Jakarta MRT. MRT Jakarta, the operator of the country’s first subway service, plans to commence construction of a 2.8 km underground tunnel from Bundaran HI to the National Monument (Monas) in Central Jakarta in June, known as stage CP201. The plan was pushed back from March and was expected to be completed by December 2024. Phase 2 of the MRT’s development will see the construction of seven underground stations, extending 6.3 kilometer from Bundaran HI to Kota in West Jakarta.
Infrastructure development progressing as investment jumps, BKPM says The Jakarta Post 28th Apr 2020
Projects in the warehouse, transportation and telecommunications sector have contributed the most to total realized investment this year at around 23.4 percent as of the first quarter, indicating that the government’s infrastructure development plan has shown progress, according to the Investment Coordinating Board (BKPM). The sector had been one of the top five sectors for realized investment since 2016, the agency said, adding that its investment realization jumped 32 percent year-on-year (yoy) to Rp 49.3 trillion (US$3.1 billion) from January to March. The BKPM reported that total investment realization in the first quarter of the year rose 8 percent yoy to Rp 210.7 trillion.
COVID-19 crisis delays several infrastructure projects The Jakarta Post 23rd Apr 2020
The Public Works and Public Housing Ministry will suspend a number of infrastructure projects following the ministry’s decision to reallocate a large part of its budget funds to efforts to mitigate the impact of the COVID-19 pandemic. Public Works and Public Housing Miniser Basuki Hadimuljono said Tuesday said the postponed projects included overhauling the irrigation network in Baro Raya in Pidie, Aceh, revamping the waterfront area in Pariaman, West Sumatra, and building the Sp Tohpati - Tjokroaminoto bridge in Denpasar, Bali.
COVID-19 disrupts construction work at Papua's PON sports venues Antara News 23rd Apr 2020
President Joko Widodo decided to delay holding the 2020 National Games (PON) in Papua, from October 2020 to October 2021, over the ongoing new coronavirus disease pandemic that disrupted the completion of several sports venues. Construction work at the venues for this multi-sport event could not be continued partly owing to the shortage of building materials in Papua, Youth and Sports Minister Zainuddin Amali informed journalists here, Thursday.
Indonesia’s new capital in the Bornean jungle on hold amid COVID-19 crisis Mongabay Environmental News 15th Apr 2020
The Indonesian government’s plan to relocate the country’s capital from Java to Borneo has hit a wall amid the COVID-19 pandemic, with a top official saying they would “evaluate it or something” after the crisis passes. President Joko Widodo announced last August a $33 billion project to build a new capital city in East Kalimantan province, citing worsening traffic, land subsidence, flooding and a host of other problems in Jakarta. But the government’s current focus on handling the COVID-19 outbreak has sidelined the project for the time being, according to Luhut Pandjaitan, the senior minister for investments and the president’s chief confidant.
How COVID-19 will dampen Indonesia’s infrastructure developments The Conversation 29th Apr 2020
The Indonesian economy is plagued by a range of “infrastructure gaps”, places where much-needed physical and digital infrastructure is either substandard or absent, mostly due to under-investment. This year’s national infrastructure budget stands at about US$29 billion. The government will directly fund a fraction of the total of US$412 billion in investments from 2020 to 2024 to build infrastructure projects, providing 40% of the total budget, or about $US164.8 billion. The remaining funds will come from state-owned enterprises (25%) and the private sector (35%).
Reform needed to improve progress on regional infrastructure growth: Report The Business Times 23rd Apr 2020
INFRASTRUCTURE plans in Indonesia and the Philippines need a major overhaul to achieve their ambitious growth goals, according to research from Oxford Economics. Vocational training, streamlined regulations and a wider pool of commercially viable projects would help both countries make more headway and boost longer-term production capacity, economists Thatchinamoorthy Krshnan and Jung Sung-Eun wrote in a report, as they called for a more conducive environment for private investment to help pick up the slack. The analysts noted that progress on infrastructure was slow even before the ongoing novel coronavirus pandemic stymied Philippine leader Rodrigo Duterte’s US$180 billion public works ambitions and Indonesian President Joko Widodo’s similar US$430 billion plans.
Travel & Tourism
Indonesian airlines resume domestic passenger flights with strict health protocols The Jakarta Post 7th May 2020
Several Indonesian airlines have resumed domestic passenger flights following a letter from the COVID-19 task force allowing certain people to travel despite government travel restrictions. Service will be reopened gradually this month. Garuda Indonesia officially resumed domestic passenger flights on May 7 after suspending them in compliance with the government’s large scale social restrictions (PSBB). The national flag carrier has implemented augmented health protocols. Garuda Indonesia will require passengers to provide ground staff with medical letters from hospitals stating that they are COVID-19 negative. The airline will also require state officials to provide documents, including official letters of duty, employee IDs and letters explaining the purpose of travel. Lion Air, Wings Air and Batik Air ‒ members of the Lion Air Group ‒ will resume domestic passenger flights on Sunday.
Minister urges travel industry to adapt to 'new normal' post-COVID19 The Jakarta Post 3rd May 2020
Tourism and Creative Economy Minister Wishnutama Kusubandio encouraged travel agents to have digital platforms, as he predicted a surge in tourism once the pandemic is over. He also urged the Association of Indonesian Tour and Travel Agencies (ASITA) to have a digital platform, as it is considered essential in the travel ecosystem. The minister said he was coordinating with various stakeholders in tourism to be prepared for a surge in tourists by formulating promotional plans. He also noted a new trend in tourism brought by the outbreak as the landscape will be reformed in terms of health and comfort.
Bali sees almost 100 percent drop in foreign tourists The Jakarta Post 25th Apr 2020
Bali has seen an almost 100 percent decrease in foreign tourist arrivals in April amid the COVID-19 pandemic. Bali Deputy Governor Tjokorda Oka Sukawati said Bali was one the region’s hardest hit by the pandemic in Indonesia, as around 60 percent of its gross regional product (PDRB) comes from tourism. According to Indonesian Tourist Industry Association (GIPI) data, Bali had recorded an 11 percent increase in foreign tourist arrivals in January. However, the number dropped 18 percent in February after flights from China were cancelled. The number then dropped 42.32 percent in March, as countries in Europe as well the United Kingdom and South Korea restricted flights to Bali. In April, the decrease was even more drastic, with foreign tourist arrivals down 93.24 percent. All in all, the potential losses experienced by the tourism and meeting, incentives, conferencing and exhibition (MICE) sectors in Bali are estimated to be more than Rp 9 billion (US$628,367).
Labour crunch threatens Indonesia’s tourism recovery, says trade TTG Asia 22nd Apr 2020
As Indonesia moves to restart its tourism engine, industry stakeholders worry that talent shortage may pose a key threat to the country’s tourism recovery, as the pandemic has left massive furloughs and layoffs in its wake. Those concerns come in response to the Indonesian government’s recent call for travel trade players to start laying the groundwork for their recovery now, as it anticipates a tourism boom once the pandemic blows over. Speaking on a virtual forum, Udhi Sudiyanto, chairman of the Association of Indonesian Tours and Travel Agencies (ASITA) Yogyakarta chapter, said that many tourism workers had gone without pay or had their salaries cut, and many were forced to look for alternative jobs.
Hotels in Bali may start reopening in May as island expects to welcome Chinese tourists in June Coconuts 22nd Apr 2020
Tourism players across the island will focus on getting through the COVID-19 pandemic before thinking of attracting tourists to Bali. Hotels in Bali are reportedly planning to start opening up doors in May, with tourism authorities also expecting to welcome Chinese tourists to the island by June following some optimistic outlook on the travel industry from Indonesian officials. Last week, President Joko Widodo said he’s convinced that the COVID-19 pandemic will be resolved by the end of this year, further adding that he expects tourism to take off in 2021. The Indonesian government previously said it aims to attract travelers from countries which are recovering swiftly from the coronavirus outbreak, namely China, South Korea, and Japan, in the next couple of months.
Vietnam
Extra efforts made to sign RCEP in Vietnam in late 2020 VietnamPlus 18th Apr 2020
Regional Comprehensive Economic Partnership (RCEP) dialogue partners are advancing the review of legal texts, with an expectation of the process finishing in July so the pact can be signed at the ASEAN Summit in Vietnam later this year as scheduled. Auramon Supthaweethum, Director-General of the Trade Negotiations Department under Thailand’s Ministry of Commerce, said the working panel handling the legal text-scrubbing for the pact has already finished six chapters and is working on the remaining 14 chapters. The first video conference was applied to the RCEP Trade Negotiation Committee meeting on April 7. The next video conference of the committee is scheduled for April 20-24.
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