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National Affairs
Jakarta Residents Say They Want Ahok To Stay Ruling The Wall Street Journal 27th Feb 2015
Netizens are showing their support for Jakarta Governor Basuki “Ahok” Tjahaja Purnama, following a decision by Jakarta’s city council to launch an investigation into the governor’s handling of the city budget. #SaveAhok was the top trending term on Twitter Friday morning, with social media users sending out messages such as, “you’ll never walk alone Ahok,” referring to the popular governor by his nickname. On Thursday, members of the Jakarta Legislative Council, also known as the DPRD, voted to launch an inquiry into the way Mr. Purnama managed the drafting of the budget. The inquiry could lead to impeachment. Mr. Purnama has denied wrongdoing and played down the challenge.
KPK chief cedes ground in the wake of top cop crisis The Jakarta Post 26th Feb 2015
Acting Corruption Eradication Commission (KPK) chairman Taufiqurrahman Ruki has vowed to pursue corruption cases less aggressively “to help government programs keep running” in the wake of the crisis between the antigraft body and the National Police. He blamed the police attacks on suspended KPK leaders and detectives on former KPK chief Abraham Samad, whose last act led to the prosecution of Comr. Gen. Budi Gunawan, a candidate for National Police chief. “It is because [Abraham] did not do things the right way,” Taufiqurrahman said on Wednesday after a meeting with President Joko “Jokowi” Widodo, National Police deputy chief Comr. Gen. Badrodin Haiti and Attorney General M. Prasetyo at the Presidential Palace.
New Brand of Diplomacy to ‘Sell’ Indonesia Abroad The Jakarta Globe 26th Feb 2015
Foreign Affairs Minister Retno L.P. Marsudi on Tuesday shared her plans for Indonesia’s “new brand” of diplomacy, particularly in relation to the economy, following the delegation of a new task to all Indonesian envoys: to explore market opportunities for Indonesian businesses and safeguard those that currently operate overseas. Extending President Joko Widodo’s vision for a foreign policy that is more “connected to the people,” Retno has repeatedly asserted that economic diplomacy is now among the main pillars of Indonesia’s foreign policy — in addition to protecting citizens abroad and increasing the country’s role at the international stage Retno — in an exclusive interview with the Jakarta Globe — cited the measures she implemented during her terms as ambassador to the Netherlands from 2012-14 as an example of what she now expects Indonesian envoys to practice.
Indonesia’s Forests Disappearing at Record Rates The Asia Foundation 25th Feb 2015
In early November, less than one month after Indonesian President Joko “Jokowi” Widodo’s inauguration, Siti Nurbaya Bakar, the newly installed Environment and Forestry minister, announced that the government would extend an existing moratorium on the issuance of new permits for logging in primary forests in an effort to halt deforestation. While environmentalists and concerned citizens alike certainly welcomed this news, the road ahead to improving forest and land governance in Indonesia is steep.
Jokowi: One-Stop Investment Service Nearly Ready The Jakarta Globe 25th Feb 2015
President Joko Widodo has assured the public and would-be investors that the government’s planned one-stop investment licensing service, which forms part of his administration’s efforts to ease the process of securing business permits, will become operational this year. “I think more than 80 percent of regions [in Indonesia] are already capable of running the licensing service. There may be setbacks here and there, but they should all be settled this year,” Joko said on Friday. He added that officials in charge were still working out a few kinks in the system before setting up offices around the country to implement and monitor the program. Last month Joko unveiled the one-stop investment licensing service, which he hopes would be a milestone in smoothing investment procedures for existing and prospective companies.
Public Express Concern Over Indonesia’s Corruption Battle The Wall Street Journal 25th Feb 2015
The majority of Indonesians support President Joko Widodo’s decision to drop the nomination of Budi Gunawan as police chief, a recent survey shows. But they also worry the country’s antigraft agency has been weakened by the resulting imbroglio, and corruption could rise as a result. More than 70% of people surveyed by polling agency Indonesia Circle Survey said they supported the president’s decision to drop the nomination of Mr. Gunawan, a three-star general named a graft suspect by the country’s anticorruption commission, known as the KPK. But 75% of respondents believe the police have undertaken efforts to weaken the KPK, and they worry that could lead to an increase in corruption.
Police’s charges against KPK unclear The Jakarta Post 25th Feb 2015
The National Police have continued to fire a barrage of charges against suspended Corruption Eradication Commission (KPK) leaders Abraham Samad and Bambang Widjojanto, who helped prevent Comr. Gen. Budi Gunawan from becoming the top cop. Bambang’s lawyer team found that the police have conducted “irregular” investigations on Bambang, including adding charges against him in every summons. The police have also refused to give him a copy of his dossiers. Bambang came to the National Police headquarters on Tuesday to deliver two formal letters intending to seek clarification regarding the police’s moves; but he did not receive a clear response, prompting him to refuse to attend a questioning session scheduled that day.
Indonesia to Crack Down on Corporate Tax Avoidance The Jakarta Globe 24th Feb 2015
The government plans to crack down on corporate tax avoidance via transfer pricing this year to try and recoup Rp 200 trillion ($15.6 billion) in lost state income, mainly in the commodities sector, the new head of the tax office said. President Joko Widodo’s administration is planning to double its infrastructure spending this year to build ports, power plants and other projects, and the tax office figure for lost income would cover more than two-thirds of that spending. As a proportion of gross domestic product, Indonesia has one of the lowest tax takes in the region, trailing behind Malaysia, Singapore, Thailand and the Philippines, according to the World Bank. Sigit Priadi Pramudito, director general of taxes, said in an interview with Reuters late on Monday that many Indonesian firms, particularly those in the coal, palm oil, cocoa and other commodities sectors, were avoiding corporate taxes by using transfer pricing.
Finance Ministry to Hire More Tax Experts, Raise Paychecks The Jakarta Globe 23rd Feb 2015
The Finance Ministry completed drafting last week two presidential decrees that would allow them to hire expert staff and increase current officers’ paychecks, which the ministry claimed were necessary to improve its capability and incentives to pursue higher tax revenue. The first draft focused on hiring three ministerial special staff members and adding the number of directors in the tax office to handle international taxation, said the ministry’s adviser for organization, bureaucracy, and information technology division Susiwijono Moegiarso on Friday.
New tax agency expected to start operation next year The Jakarta Post 20th Feb 2015
The Indonesian government will separate the taxation office and the Finance Ministry beginning next year in a move that would provide much-needed flexibility for the revenue body. Deliberations among top government officials from the Office of the Coordinating Economic Minister, the Finance Ministry and the Administrative and Bureaucratic Ministry on Wednesday evening concluded with the government making the taxation office an independent body in its revision to the General Taxation System (KUP) Law, which is currently being discussed by lawmakers. The House of Representatives Commission XI overseeing finance, national development planning, banking and non-bank financial institutions will be responsible for revising the KUP Law, which has been listed as a priority in the National Legislation Program (Prolegnas) this year.
Defense & Security
Spain Joins the Competition to Arm Indonesia The Jakarta Globe 25th Feb 2015
Spain has submitted a tender to supply Eurofighter Typhoon fighter jets to the Indonesian government, entering a bidding war with other producers of combat aircraft as the country seeks to beef up its military strength. Indonesia has dedicated 7 percent of budgetary spending to defense over the past two years in an attempt to regenerate an aging military arsenal to both match regional powers and to secure the vast archipelago. “The competition the Eurofighter is entering is for the replacement of the regular old combat aircraft that you [Indonesia] have,” Spanish Ambassador to Indonesia Francisco Jose Viqueira Niel said on Wednesday. The Eurofighter, whose primary users are the Spanish, German, British and Italian air forces, faces serious competition from Russia’s Sukhoi and Sweden’s Gripen aircraft. The latter, produced by Swedish aerospace and defense company Saab, opened a representative office in Indonesia last year to seek opportunities for cooperation with the government.
Malaysia, Indonesia to share intelligence information on Isis threat The Malaysian Insider 26th Feb 2015
Malaysia and Indonesia have agreed to cooperate and share intelligence information, besides monitoring the movements of members of the Islamic State (Isis) militant group who have fought in Syria and Iraq, as well as the social media. Defence Minister Datuk Seri Hishammuddin Hussein said Malaysia and Indonesia's role in this was important and critical as together, both countries had the biggest Muslim population in the Asean region. "The Isis threat is real and considering the current situation in Iraq, Syria and a few other countries, it's not impossible for the Isis threat and ideology to spread in the region.
US Courts Five Asian Countries To Boost Security Cooperation Bernama 25th Feb 2015
In an attempt to enhance its security cooperation with a number of Asian countries, the United States administration is to engage in intense discussions with a number of countries in the region, including Malaysia. Its assistant secretary for Arms Control, Verification and Compliance, Frank Rose, is embarking on an extensive tour of Japan, Malaysia, Indonesia, Singapore and India from Feb 23 to March 9 for a series of strategic discussions on international security, the US Department of State said in a statement on Tuesday. The much-discussed US "pivot to Asia", which will see the United States strengthening its presence in Asia, is at the core of the intensified diplomatic activities with an increased level of traffic by US politicians and top officials to a number of Asian countries. In the ASEAN theatre, the United States is keen to enhance its cooperation with the three key members - Malaysia, Singapore and Indonesia. "As the United States considers arms control and non-proliferation priorities, we will continue to consult closely with our allies and partners every step of the way," said Anita E. Friedt, the principal deputy assistant secretary of the Bureau of Arms Control, Verification and Compliance Rose arrives in Kuala Lumpur on March 2 for bilateral discussions with senior officials from the ministries of foreign affairs and defence and the Malaysian National Space Agency on a variety of security topics of joint interest. Analysts in the US capital say that the discussions will include, but will not be confined to, the situation in the South China Sea and other strategic issues of interest to the Malaysian side. Rose arrives on March 3 in Jakarta for bilateral discussions on space security and multilateral arms control topics with the ministry of foreign affairs and the Indonesian National Institute of Aeronautics and Space. On March 4, Rose will meet with senior officials in Singapore to discuss security issues.
Economics
Esemka national car project wins Jokowi’s backing The Jakarta Post 27th Feb 2015
President Joko “Jokowi” Widodo has pledged stronger state backing for locally made car Esemka as the Central Java-based car manufacturer is likely to see a revamp in its business model to boost production and profitability. The President gathered on Wednesday evening executives of PT Solo Manufaktur Kreasi (Esemka) and top policymakers from the office of the Coordinating Economic Minister and the Industry Ministry to discuss possible support for the locally made car, which boosted Jokowi’s popularity when he was the mayor of Surakarta in Central Java.
Indonesia's c.bank says no target level for rupiah Reuters 26th Feb 2015
Indonesia's central bank does not have a target level for the rupiah but will always be in the foreign exchange market for measured intervention, a Bank Indonesia official said on Thursday. The rupiah fell to a 10-week low on Tuesday and is down nearly 4 percent so far this year, a trend which central bank spokesman Peter Jacobs attributed to the strengthening U.S. dollar and not due to Bank Indonesia's surprise decision last week to cut its benchmark interest rate. "We cannot possibly go against the market," Jacobs said, adding that Bank Indonesia has been intervening only to manage the rupiah's volatility.
GM to shut plant, cut jobs in Indonesia, where Japanese dominate Reuters 26th Feb 2015
General Motors (GM.N) will stop making GM-branded cars in Indonesia, a battleground for global automakers, closing an assembly plant, axing some 500 jobs and shifting its focus to sport utility vehicles (SUVs). The U.S. auto giant, which was the first to set up a car assembly plant in Southeast Asia's biggest economy eight decades ago, is effectively calling time on its attempt to wrestle market share from dominant Japanese rivals, led by Toyota Motor (7203.T). GM Executive Vice President Stefan Jacoby, who oversees markets beyond the Americas, Europe and China, acknowledged GM got it wrong in going head-to-head with the Japanese in a market he dubs their "backyard".
RI needs to make Herculean effort to triple exports The Jakarta Post 24th Feb 2015
Indonesia may achieve its ambitious target of tripling its exports by 2019, but it will require significant breakthroughs in industrial development and export promotion as well as investment, economists have warned. The sizeable target has sparked controversy, partly because it was set at a time when the country, a consumer spending-driven economy, struggled to sell its commodities and goods overseas amid weak demand.
Energy
Indonesia to permit companies to renew mining contracts sooner mining-technology.com 25th Feb 2015
Indonesia is preparing to allow mining companies to renew their contracts earlier than two years before the expiry date. According to the country's mines minister, the decision is expected to favour US-based Freeport-McMoran and its expansion plans at the Grasberg copper mine. At present, the government is negotiating the plans of the mining companies developing domestic smelting and processing facilities, Reuters reported. Earlier this week, Indonesia stated its intention to ban exports of copper and other mineral concentrates in 2017.
Investors reluctant because no govt support The Jakarta Post 25th Feb 2015
Potential investors are reluctant to start developing geothermal power plants in the country because the government has not shown its commitment to this energy business, according to an executive of an energy company. Pertamina Geothermal Energy (PGE) president director Rony Gunawan said the government needs to help attract investment in this sector to improve the country’s energy sufficiency.
Hawkins secures pair of geothermal power projects in Indonesia Renewable Energy Focus 23rd Feb 2015
Hawkins Group is developing the two new geothermal plans as part of a joint venture with Indonesian partner Banguan Cipta Kontractor (BCK). Hawkins has vast experience in delivering geothermal projects in New Zealand having successfully completed the Kawerau Geothermal Power Station, Ngatamariki Steamfield and Nga Awa Purua Geothermal Power Station. Geoff Hunt, Hawkins Group CEO, says that the latest two international project awards further strengthen Hawkins drive offshore to utilise the firms’ skills and knowledge in niche areas of expertise. “We are utilising specialist knowledge and skills that we have developed on geothermal projects in New Zealand, and partner with local contractors to best utilise combined expertise,” Hunt stated.
Indonesia must fine-tune markets to secure energy prosperity PV-tech 20th Feb 2015
A new review from energy watch dog International Energy Agency (IEA) has listed high grades for Indonesia’s operation of energy groups and state-owned institutions, but also noted that the country still has much to do in order to ensure a sustainable future. The report — titled “Energy Policies Beyond IEA Countries: Indonesia 2015” — details that even though Indonesia is still a net energy exporter due to the growth of its coal and liquid biofuel generation, the county is still using more energy than ever thanks to rising living standards, population growth and increasing urbanisation.
Pertamina slashes capex over ongoing oil price pressure The Jakarta Post 20th Feb 2015
State-owned oil and gas company PT Pertamina decided to cut its investment this year by almost half in response to the fall of global oil prices. Pertamina finance director Arief Budiman said the company’s capital expenditure for this year was set at US$4.4 billion, lower than an earlier plan of up to $7 billion. “The reduction came after we reviewed several investments that were not rational, such as the construction of Pertamina Tower. Despite the cut, we are still looking to support the upstream sector because it is still our value generator,” Arief said.
Financial Services
Chip use may not meet deadline The Jakarta Post 27th Feb 2015
The implementation of chips on debit cards may be pushed back from its originally scheduled deadline of Jan. 1, 2016, as banks are still being burdened with several problems. Bank Central Asia (BCA) retail and commercial director Suwignyo Budiman said it might be difficult for banks to completely replace all of their customers’ debit cards with new ones embedded with chips before the regulator’s deadline expires. “At BCA, we have around 12 million debit cards circulating. We have purchased 4 million new cards, more or less, but may need longer time to completely replace all of them. So we have suggested to the regulator that the deadline for completion be extended,” he said in a telephone interview on Wednesday.
Indonesia: Microinsurance customer numbers climb to 6 million Asia Insurance Review 25th Feb 2015
The number of microinsurance customers in Indonesia reached six million at the end of last year, according to the Financial Services Authority (Otoritas Jasa Keuangan or OJK) which is constantly working to introduce insurance products to the lower-middle income bracket through microinsurance services with affordable premiums. Mr Firdaus Djaelani, OJK’s executive head of its non-banking industry supervision arm, said that there are currently 53 companies that sell micro-insurance products. Its six million participants have paid premiums reaching IDR106 billion (US$8.21 million) and received claim payments reaching IDR71.76 billion, reported The Jakarta Post.
Economy in brief: OJK wants capital injection into sharia state banks The Jakarta Post 24th Feb 2015
The Financial Services Authority (OJK) has urged the government to inject capital into sharia state lenders that will be merged later this year so the banks can channel loans to the infrastructure sector. OJK chairman Muliaman Hadad said Monday that he hoped the merger plan would create a bank large enough to be included in the BUKU III category, which has between Rp 5 trillion (US$387 million) and Rp 30 trillion core capital.
BI, Home Ministry team up to improve debtor database The Jakarta Post 24th Feb 2015
Bank Indonesia and the Home Ministry signed a partnership deal on Monday to enhance the central bank’s debtor information system (SID) through the use of an electronic identity card database. The agreement is a follow-up to a previous Memorandum of Understanding (MoU) on the topic signed by both institutions in 2013 in an effort to boost financial access for wider segments of society. BI deputy governor Halim Alamsyah said the partnership would help the central bank utilize the ministry’s database of civil registry, citizens’ identity numbers (NIK) and the electronic identity cards — also known as e-KTP — during the process of its SID improvement.
Indonesia Plans Alternative Sukuk Structures to Boost Volumes Jakarta Globe 24th Feb 2015
Indonesia is aiming to boost volumes of Islamic bonds (sukuk) by introducing new assets to support the transactions, a government official said on Tuesday. The government is considering the use of state goods and services as underlying assets on its sukuk, which have previously relied on projects and infrastructure assets under the ijara or wakala formats, Robert Pakpahan, head of financing and risk management at Indonesia‘s finance ministry, told Reuters. “We want to increase our capability in doing sukuk,” said Robert. Authorities in Indonesia want to reshape the country’s Islamic finance industry by encouraging consolidation and building a new regulatory system, as the sector seeks to catch up with more mature markets in Malaysia and theMiddle East. The new structures could expedite the issuance process for government sukuk, which typically involve prolonged due diligence before going to market, he added.
OJK to Allow State-Owned Banks to Expand Into Venture Capital Jakarta Globe 23rd Feb 2015
The Financial Services Authority, or OJK , would allow state-owned banks to have venture capital subsidiaries, as part of the authority’s efforts to help boost the venture capitalism in the country. The plan may be in favor of Bank Mandiri, the country’s largest lender, which said that it sought to establish a venture capital unit by the end of this year so that can expand beyond its traditional banking business. “State-owned enterprise banks may have venture capital firms, even if it’s just in a form of a startup company,” OJK chief commissioner chairman Muliaman D. Hadad said last week.
Mandiri eyes 9,000 agents for branchless-banking services Jakarta Post 23rd Feb 2015
State-owned lender Bank Mandiri is strengthening its digital financial service across the country by increasing the number of its branchless banking agents to provide the public with wider access to finance. The lender has already appointed 391 agents who themselves run micro businesses, according to Bank Mandiri president director Budi Gunadi Sadikin. The majority of Bank Mandiri’s branchless banking agents are entrepreneurs who own micro-segment businesses in their neighborhoods, such as small convenience stores and cell phone shops, with average cashflows between Rp 1 million (US$77.70) and Rp 2 million per day. “We are aiming to have a total 9,000 agents by the end of 2015. One of the efforts to reach that goal is to engage in strategic partnerships with retail companies as well as micro vendors,” Budi said during a visit to the North Jakarta neighborhood of one of the agents on Friday.
Local stocks may continue to book record highs Jakarta Post 23rd Feb 2015
The stock market index has set five new record highs so far this year, with analysts saying that the streak is expected to continue for weeks as domestic and global updates spur positive sentiment and growth in the country’s bourse. The Jakarta Composite Index (JCI) — the main price barometer at the Indonesia Stock Exchange (IDX) — extended its gains when it rose 0.6 percent to hit a new all-time high at 5,427 on Friday’s early trading season, and wrapped up the day’s trading at 5,400, a new closing record. Alfred Nainggolan from Koneksi Kapital said he expected that the stock market would continue to record new highs this week, bearing in mind that positive domestic corporate-earning results would be announced, a lower benchmark interest rate is expected to spur economic growth and further good news is expected from the global economy.
Indonesia’s Lenders Measure a Slowdown in 2014 Profit Jakarta Globe 22nd Feb 2015
Profit growth at Indonesia’s commercial lenders slowed last year due to a decline in loans, data from the Financial Services Authority, or OJK, showed. The country’s commercial banks booked a total net income of Rp 112.16 trillion ($8.7 billion) in 2014, up 5.11 percent from 2013’s figure and a marked slowdown from the 14.95 percent growth in profit measured the year before. Total outstanding loans in 2014 reached Rp 3,706.5 trillion, a 11.6 percent year-on-year increase. In 2013, loans rose 21.8 percent from 2012. Analysts attribute the tepid performance to slower economic growth and the depreciation of the rupiah throughout 2014.
Jokowi’s Moves Sink Cement Stocks, and Banks Are Seen Next at Risk Jakarta Globe 20th Feb 2015
When vote counts in Indonesia’s July presidential election showed Joko Widodo heading for victory, shares of the country’s two biggest cement producers jumped to one-year highs. What investors in Holcim Indonesia and Semen Indonesia didn’t anticipate was Joko’s plan, announced last month, to impose price cuts on state-owned producers. The stocks have both lost at least 14 percent from their July peaks, wiping out gains fueled by bets Joko’s $18 billion infrastructure spending pledge would lead to an earnings windfall. The intervention is sparking concern that Widodo’s efforts to revive Southeast Asia’s biggest economy from the weakest expansion in at least five years will come at the expense of some of the nation’s largest companies. Bank earnings may also be at risk, according to Manulife Aset Manajemen Indonesia and UBS, after Indonesia’s housing minister said last month that the government is considering reducing rates on loans for low-cost housing.
Bukopin ready to start branchless banking project Jakarta Post 20th Feb 2015
Publicly listed lender Bank Bukopin is preparing the pilot project for Payment Point Online Bukopin (PPOB), an online payment system aimed at expanding access to its services and products. Under the project, Bukopin plans to employ 16,000 of its own agents, an executive said. “For starters, we will conduct the pilot project at 10 PPOB points in South Jakarta and West Java. Currently, we already have 26,000 PPOB points and we expect the number to increase to 31,000 by the end of this year,” Bukopin retail director Agus Hernawan said on Tuesday. Agus said the lender had not allocated specific funds for the pilot project, as agents working at the designated PPOB points already had their own mobile phones to serve customers. The branchless banking program is set to be launched by the Financial Services Authority (OJK) and participating banks in March as part of the effort to increase access to finance throughout Indonesia, where only 20 percent of its more than 240 million persons have access to banks.
Food & Agriculture
‘Incompetent’ Ruling Threatens to Leave Indonesia Without Bottled Water The Jakarta Globe 26th Feb 2015
Indonesia’s second-largest Muslim organization, Muhammadiyah, has called on private firms to stop selling bottled water after the Constitutional Court revoked in its entirety the 2004 Water Resources Law, which regulates such sales. “We welcome this decision and are grateful that our judicial review was accepted [by the court],” Muhammadiyah chairman Din Syamsuddin said. Muhammadiyah was one of the plaintiffs in the suit alongside another group and a number of individuals. “This law has been challenged three times before. This is why we were ecstatic with the recent Constitutional Court ruling which repealed the law in its entirety,” another plaintiff, Syaiful Basri, said at the same press conference.
In Palm-Oil Market, Optimism Over Biodiesel Subsidy Fades Wall Street Journal 25th Feb 2015
Indonesia’s renewed push this month to increase the use of biofuels made from palm oil initially helped pump up prices of the commodity. But that optimism is already fading, as traders reckon with an overall weak backdrop in demand for palm oil, which is used in products ranging from lipstick to biscuits and detergents. The global benchmark palm-oil futures price traded on the Bursa Malaysia Derivatives exchange jumped nearly 10% in early February after the Jakarta government said it will more than double the subsidy for biodiesels to 4,000 rupiah a liter (31 U.S. cents), from 1,500 a liter now. The increase, announced Feb. 2, is expected to take effect as soon as next month. Biofuels in Indonesia are made primarily from a palm-oil feedstock.
RI told to improve packaging for fruit exports The Jakarta Post 24th Feb 2015
The director for trade and international promotion at the Thai Embassy in Jakarta, Vilasinee Nonsrichai, says that Indonesia must improve the packaging of its fruit for export if it wants to increase the value of the goods. Vilasinee mentioned salak (snakeskin fruit) as an example, saying the fruit was popular in Thailand but exported Indonesian salak tended not to last long at markets. A supposed minimum shelf life of 10 to 15 days is needed for fruits entering an international market.
Better Infrastructure Would Cut Food Waste Wall Street Journal 22nd Feb 2015
President Joko Widodo wants to improve Indonesia’s creaky infrastructure and help his country achieve food self-sufficiency. But building better roads, rails and boosting electricity could accomplish both goals. According to a recent study by the Copenhagen Consensus Center, a think tank the focuses on international development, between 10-50% of all crops are lost between the time they leave the farm and reach consumers. Reducing post-harvest waste by just 10 percentage points could lower food prices and prevent 60 million people from going hungry, the Copenhagen survey says.
ICT
Cheaper Smartphones With a Local Touch Boost Sales in Indonesia The Wall Street Journal 26th Feb 2015
Soaring demand and increasingly affordable devices are driving sales of smartphones in Indonesia, and mobile developers and local officials are taking note, says a Samsung executive. Andrew Rompis, the vice president of Samsung Mobile Business in Indonesia, said handset manufacturers have worked to better target mobile users in the country by producing cheaper smartphones with pre-installed local applications. More than 85% of Indonesians access the Internet through their mobile phones, and they’ve proven eager users of new technology. Growing disposable incomes among the country’s 250 million people have made Indonesia an increasingly attractive market among mobile phone developers.
City Targets Social Media To Make Jakarta More Liveable The Wall Street Journal 25th Feb 2015
Officials in Jakarta are trying to tackle perennial problems like traffic and flood with technology and they’re calling on the metropolis’ nearly 10 million residents to get more involved. Key to its efforts is Jakarta Smart City, a Web-based platform that provides information on everything from bus schedules to museum exhibitions to tips on eating street food. It also includes a system for users to submit public complaints. “The program is intended as a solution to solve the problems” that the city’s residents are dealing with on a daily basis, Ii Kurnia, head of information management systems for the Jakarta government, said during a social media conference on Wednesday.
Lippo Jumps to E-Commerce, Sees $1 Billion in Sales in 2 Years The Jakarta Globe 25th Feb 2015
Lippo Group announced on Wednesday the launch of an Indonesian e-commerce venture, MatahariMall.com, solidifying its position as the largest multi-format Indonesian retail group. Lippo has allocated $500 million in investment over the next two to three years to create an e-commerce company with an expected $1 billion in sales within one-and-a-half to two years that will become the “Alibaba of Indonesia.” MatahariMall.com will bring Lippo’s consumer retail division to more than $25 billion in five years, 20 percent of which will come from online retail.
US Raises Concerns Over ‘Made in Indonesia’ Smartphone Law The Jakarta Globe 24th Feb 2015
The United States is pressing Indonesia to relax local-content rules it believes will handicap efforts of tech firms such as Apple to expand into one of the world’s last big markets where demand for high-end smartphone has yet to really take off. The regulation, which would come into force on Jan. 1, 2017, requires companies that sell smartphones and tablets in the fast-growing economy of 250 million people to produce 40 percent of their content locally. The office of the US Trade Representative (USTR), America’s chief trade negotiator, said it was raising the issue with the Indonesian authorities and in multinational forums. Critics of the “made in Indonesia” rule, including an influential US business group, say it could increase costs and restrict access to technology.
Indonesia’s support for entrepreneurship is not up to scratch. Here’s how the government can get serious Tech in Asia 20th Feb 2015
Everyone says Indonesia is the sleeping tech giant of Southeast Asia – the largest market, one which can’t be ignored. More than 95 percent of Indonesia’s businesses are startups or small and medium-sized companies. Nevertheless, startups are given very little support by the government, according to local tech business advisory firm Redwing Asia.
Indonesia’s tech minister Rudiantara aims to raise $1B for startups Tech in Asia 20th Feb 2015
Indonesia’s tech minister revealed earlier this week that he aims to raise about Rp 12 trillion (US$1 billion) to help develop Indonesia’s digital startups, reports Kompas. Rudiantara, the minister of communications and information technology, claims the funds will be collected from the nation’s large conglomerates. His goal is not just to raise funds for local companies, but also to persuade local conglomerates who invest or save their money in foreign countries to think about investing in Indonesian companies instead.
Telkom to spend Rp 800b for enterprise, business services Jakarta Post 20th Feb 2015
State-owned telecommunications company PT Telekomunikasi Indonesia (Telkom) plans to spend around Rp 800 billion (US$62.1 million) to develop its enterprise and business services this year, aiming to outperform market growth. “Our budget for [large] enterprise and small-medium enterprise services will be around Rp 700 to Rp 800 billion this year,” Telkom’s director for enterprises and business service Muhammad Awaluddin said on Wednesday.
Infrastructure
Govt' Prepares House Ownership Financing Scheme Tempo 27th Feb 2015
Public Works and Public Housing Minister Basuki Hadimuljono, said that the government is on the process of designing Kredit Usaha Rakyat (KUR) or micro loans scheme for housing ownership financing for informal workers that are not covered in banking services. "The idea came out because under the minimum wage, there are still clusters such as taxi drivers that don't have bankable salary to obtain credit,” said Basuki on Thursday, February 26, 2015. According to Basuki, the scheme will help low-income people to own decent homes through government financing.
Govt revokes nine of Lion Air’s route permits The Jakarta Post 26th Feb 2015
The Transportation Ministry has revoked permits for nine of Lion Air’s flight routes as the airline failed to provide the services to passengers for 21 days in a row without any explanation. The ministry’s air transportation director general Suprasetyo said that the routes included Jakarta–Jambi, Surabaya–Ambon, Surabaya–Jakarta, Makassar–Jayapura and Lombok–Jakarta.
Suprasetyo said that his institution might revoke more route permits in the near future as it was auditing the management of the country’s largest domestic carrier.
President forms task force to shorten port-dwelling time The Jakarta Post 26th Feb 2015
President Joko "Jokowi" Widodo has decided to set up a task force to address long dwelling times at the country's ports. The President responded to the results of a study that suggested shortening the dwelling times, including at Tanjung Priok Port in North Jakarta, Coordinating Maritime Affairs Minister Indroyono Soesilo said after a limited Cabinet meeting at the Presidential Palace on Wednesday. "The study, conducted at Tanjung Priok Port, among others, particularly recommended that maximum efforts be made to shorten dwelling time," Indroyono said as quoted by Antara news agency. Dwelling time at Indonesian ports averaged seven to nine days compared to less than one day at Singapore's port, he said.
Court bans monopoly on water resources The Jakarta Post 20th Feb 2015
In a move to maintain access to clean water, the Constitutional Court has revoked a law that had allowed the private sector to monopolize water resources. The landmark decision puts an end to the 2004 Water Resources Law, which paved the way for concessions of water resources by companies that sold packaged tap water. While delivering the verdict on Wednesday, the panel of justices argued that the law contravened the Constitution, which stipulates the right to water as a basic right and mandates the state to control and regulate water resources.
Batam still wants water supply from private partner The Jakarta Post 25th Feb 2015
The Batam Free Trade Zone Authority (BPK FTZ) is exploring the possibility of maintaining the privatization of water-resource management in Batam, Riau Islands, to support investment activities following the repealing of a law that allowed the monopolization of water resources by private companies. In a move to maintain access to clean water, the Constitutional Court repealed earlier this month Law No. 7/2004 on water resources, which allowed the private sector to monopolize water resources. The BPK FTZ, however, wants to maintain the supply of water from a private company to maintain investor confidence in clean water availability amid concerns over poorly managed regional and state tap-water companies.
President Jokowi’s infrastructure projects: Quantity vs quality The Jakarta Post 23rd Feb 2015
President Joko “Jokowi” Widodo’s much awaited plans to implement massive infrastructure projects have started to take shape with the approval of the revised 2015 state budget by the House of Representatives. The government plans to spend Rp 290 trillion (US$23.2 billion) on infrastructure this year. By any standard it is a huge amount. It will be more than 60 percent higher than spending in 2014, and almost double the amount spent in 2013. It will be 2.4 percent of the gross domestic product (GDP). In the last five years, spending for infrastructure by the government has been stagnant at an average of 1.6 percent of GDP.
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