Focus

Focus (121)

17
June

Four Indonesian state-owned companies have been included in the list of the largest public companies in the world in 2019, released by Forbes, a US economic magazine. They are PT Bank Rakyat Indonesia, PT Bank Mandiri, PT Telekomunikasi Indonesia and PT Bank Negara Indonesia. Minister of State-Owned Enterprises, Rini Soemarno said in Jakarta on Thursday (13/6) that the international recognition and appreciation of the performance of the Indonesian state-owned companies was a proof of their seriousness in realizing a long-term vision as service providers and having the best performance. She was very proud of the Forbes ranking which shows Indonesian state-owned companies to have strong competitiveness with other top global companies. Forbes released a list of the 2,000 largest global public companies in the world in 2019. Selected companies are spread in 61 countries, with the criteria of the largest global public companies that refer to the size of market capitalization, sales or income, profits and assets in 2018. In the list, BRI occupies in the position of 363. Meanwhile, Bank Mandiri is in the 481. PT Telkom Indonesia 747 and BNI is 835. Minister Rini Soemarno emphasized that the international recognition and appreciation of the performance of these state-owned companies were inseparable from their performances that were getting stronger. Thanks to the hard work and synergy built through the vision of Indonesian state-owned companies, “One Nation, One Vision, One Family, to Excellence". According to Minister Rini Soemarno, the positive performance will be safeguarded and increased so that they can continue to serve the country, becoming agents of development that focus on improving people's welfare. She added that her ministry is committed to always improving the performance and service of all state-owned companies.

10
June

The governments of Indonesia and Australia have agreed to accelerate the ratification of Comprehensive Economic Partnership Agreement (CEPA) which is still in ongoing process. Indonesian Trade Minister, Enggartiasto Lukita said on Sunday that the CEPA is currently being processed. It is expected to be ratified this year and will be implemented in 2020. This was one of the points of discussion between Minister Enggartiasto Lukita and Australian Minister of Trade, Tourism and Investment, Simon Birmingham on the sidelines of the G-20 Ministerial Meeting on Digital Trade and Economy in Tsukuba, Japan. ntara  News Agency reported, Minister Enggartiasto had confirmed that the ratification of the CEPA could accelerate the commitment to increase trade and investment cooperation between the two countries, which has been well established. Minister Enggartiasto further explained that the acceleration of this ratification is also due to the encouragement of the business world of both countries. Another point in the discussion conducted with Australia is related to the ongoing negotiations of the Regional Comprehensive Economic Partnership (RCEP) among 16 member countries. The negotiations on  free trade commitments, launched in November 2012, are not easy to pursue because each country still has its own interests. According to Minister Enggartisto, Indonesia asked Australia to be flexible. In addition, it should be taken into consideration that  India has a new trade minister,  meanwhile Thailand as chair of ASEAN is also awaiting a new cabinet. Another  topic of discussion is about the importance of reforms in the World Trade Organization -WTO so that the organization has high bargaining power in resolving trade disputes. On this occasion, Minister of Trade, Enggartiasto Lukita also held a bilateral meeting with Deputy Minister of Trade of the People's Republic of China Wang Shouwen. The points that became the main discussion were the ease of export of swallow nests, agricultural products and tropical fisheries and fruits to China. In addition, they also discussed  the follow-up of the agreement regarding the establishment of a Trade Working Group between Indonesia and China.

03
June

Bank Indonesia -BI recorded that foreign capital inflow to Indonesia since the beginning of the year until Friday, May 31, 2019 has reached Rp112.98 trillion. The capital inflow is also one of the pillars of fulfilling foreign exchange demand in the domestic market so that this has helped maintain the stability of the rupiah exchange rate in recent times.Governor of BI, Perry Warjiyo pointed out that the foreign capital inflow that went into government bonds or State Securities -SBN reached Rp56 trillion. Meanwhile, around Rp57 trillion went into stock instruments. He stated that this reflected that foreign investors were very confident in Indonesia, while maintaining the stability of the rupiah exchange rate against the US dollar.According to Governor Perry, overall, indicators on the domestic financial market are still maintained. The capital inflow is inseparable from the yield of competitive domestic financial instruments compared to the peers.The yields on 10-year government bonds were recorded at 8.01 percent. This parameter was added with low inflation movement in the range of 3.1 percent (year on year) until May 2019. The inflation rate is considered to increase foreign investor confidence because the prices of goods are maintained amid the momentum of high consumption during Ramadhan and before Lebaran.Governor Perry further said that until the end of May 2019, the condition of the rupiah exchange rate was still under control. At the close of Wednesday, (May 29, 2019), the rupiah was transacted at 14,395 rupiah per US dollar. He also said that Bank Indonesia would continue to carry out measures to stabilize exchange rates according to fundamentals if needed, both through intervention in foreign exchange and the purchase of State  Securities on the secondary market.

29
May

Indonesian President Joko Widodo asked the Association of Young Indonesian Businesspeople -HIPMI to help increasing export and investment in the country. That was conveyed by the President during national gathering and joint iftar with HIPMI in Jakarta on Sunday (May26). According to the President, export and investment increases are the key to maintain economic stability and to overcome current account deficit.President Joko Widodo further said, the big problem faced for decades until now is the always-deficit current account. Therefore, the President asked Indonesian Chamber of Commerce and Industry KADIN, Association of Young Businesspeople HIPMI, Indonesian Employers Association APINDO, and other associations together with the government toovercome those issues. The president added, if the deficit in current account is solved, Indonesia can begin entering the next steps, namely the era of technology and innovation.President Joko Widodo explained, in the recent 5 years, the government had been focused on infrastructures, such as seaports, airports, roads, and power plants. According to him, every island needs seaports while many inter-regencies are not yet connected.After inter-region connectivity was made through infrastructure, the President wanted the government heads of all levels such as governors, regents, and mayors to connect their regions to economic zones.Meanwhile, Ajib Hamdani from Indonesian Association of Young Businesspeople -HIPMI said that his organization is optimistic that the post-election economic condition will stay conducive and the businesspeople will begin investing. According to him, political situation indirectly will affect the economy.However currently, the situation had gradually become conducive and the economic growth had been improving. Those were seen from the increasing value of investment.Also joining the national gathering and joint iftar with Indonesian Association of Young Businesspeople HIPMI were House of Representatives Chairman Bambang Soesatyo, Regional Representatives Council Head Oesman Sapta Odang, State Secretary Minister Pratikno, Social Affairs Minister Agus Gumiwang, Trade Minister Enggartiasto Lukita, Golkar Party Board of Experts Chair Agung Laksono, Indonesian Chamber of Commerce and Industry Chairman Rosan Roeslani, and heads of regional HIPMI.

20
May

Mandalika Special Economic Zone (KEK) located in Central Lombok Regency, West Nusa Tenggara is prepared to become a world-class integrated tourism area. Under the management of the Indonesian Tourism Development Corporation (ITDC), Mandalika is expected to be able to present natural tourism objects combined with Lombok's distinctive cultural riches, plus world-class racing performance. Mandalika is also considered to be a new economic point outside Java.President Joko Widodo has paid a serious attention to the Mandalika. This was seen from his second visit to Mandalika on Friday (5/17). He was to see at first hand Mandalika Special Economic Zone of development project, especially the preparation of the MotoGP Circuit. While looking at the location, President Joko Widodo said that he believed that the development of the Mandalika could bring Lombok to become a leading tourism destination besides Bali. He hopes that the development will be completed no later than January 2020. So by 2020, all the facilities needed by the MotoGP will be available. President Joko Widodo is also optimistic that the construction of the racing circuit and all supporting facilities at the Mandalika will be completed in 2020. President Joko Widodo also emphasized that various facilities have been built to support the Mandalika Special Economic Zone and MotoGP circuits such as airports, road infrastructure and hotels. President Joko Widodo added that the implementation of MotoGP is the serious effort of the government to move the economy into Lombok, and could even influence national economic growth.Meanwhile, Governor of West Nusa Tenggara (NTB), Zulkieflimansyah said that the acceleration of the development of the Mandalika Special Economic Zone (KEK) aims to host MotoGP in 2021. According to him, currently, the government is accelerating the construction of a number of facilities to support the International motorbike racing event. When accompanying President Joko Widodo to observe the Mandalika Special Economic Zone (KEK) on Friday (17/5),  Governor Zulkieflimansyah emphasized that his side would make every effort to accelerate development in the Mandalika Special Economic Zone.He hopes that the construction of the MotoGP’s supporting facilities provides maximum benefits for the people of West Nusa Tenggara. In addition, he also expects that with the completion of the Mandalika Special Economic Zone, this would improve the economy of the people in NTB Province. Governor Zulkieflimansyah added that after the Moto GP event, more and more local and foreign tourists will get to know and visit NTB.

13
May

The European Union –EU appreciates the standard of Indonesian Sustainable Palm Oil -ISPO. Head of the ISPO Commission Secretariat, Azis Hidayat said in Jakarta on Friday (10/5) that for two days from 8 until  9 May, nine European Union member countries: Belgium, Spain, Finland, Ireland, Sweden, Hungary, the Netherlands and Britain and The Food and Agriculture Organization (FAO) representative visited ISPO members of oil palm plantations in Riau province. The visit which was attended by the embassy representatives was an activity initiated by the American and European Directorate General of the Ministry of Foreign Affairs to provide understanding and concrete evidence of the application of the ISPO as Indonesia's commitment to implement sustainability schemes. During the visit, the European Union actively engaged in dialogue with oil palm stakeholders starting from the government, businesspeople and farmers.During the dialogue with the palm oil farmers, the European Union began to understand that ISPO is an important part of Indonesia's commitment to be able to increase the production of fresh fruit bunches up to 50 percent, improve quality and encourage high selling prices. They really appreciate that. Aziz said that the European Union praised ISPO member farmers who have good technical knowledge regarding productive and sustainable palm oil management. In fact, the European Union encourages more farmers to be involved in the ISPO scheme. Because oil palm plantations in Indonesia are an important part of people's economy with more than 40 percent of farmers' oil palm plantations.Aziz Hidayat also pointed out that from the visit, the European Union understood more about the Indonesian government being transparent and committed to sustainable management. Even the European Union has just learned that ISPO adopts not only international principles, but also standards above the average criteria required by international certification agencies. The Indonesian government also provides an understanding that palm oil production with ISPO schemes has a major role to reduce deforestation and improve environmental conditions. Aziz ensured that all ISPO certification systems refer to international standards and conformity assessments based on the National Accreditation Committee.Meanwhile, Chairperson of the Fiscal Division of the Indonesian Palm Oil Businessmen Association (GAPKI), Bambang Aria Wisena hopes that ISPO becomes the main platform for the sustainability of the Indonesian palm oil industry. As a mandatory certificate, ISPO with strict regulatory controls greatly helps the palm oil industry increase productivity in a sustainable, responsible and legal manner. Bambang Aria Wisena also emphasized that the strengthening of ISPO is an important part of maintaining Indonesia's position as the world's largest palm oil producer and the highest-earning commodity producer in Indonesia.

06
May

The government of Indonesia, the Asian Development Bank (ADB), and the government of Timor-Leste signed a memorandum of understanding –MoU to support cross-border trade and cooperation between Timor-Leste and the province of East Nusa Tenggara –NTT in Indonesia. The MoU was signed by ADB President -Takehiko Nakao, Finance Minister -Sri Mulyani and Timor Leste Finance Minister -Sara Lobo Brites on the sidelines of the 52nd annual meeting of the ADB Board of Governors in Nadi, Fiji's third largest city on Saturday (4/5). Based on the agreement, Indonesia and Timor-Leste will reduce barriers at the cross-border land and air transportation and harmonize procedures at border crossing points. Both sides also seek to reduce animal health barriers to livestock trade and improve tourism promotion in NTT and Timor-Leste through joint marketing.ADB President -Takehiko Nakao said that regional cooperation and integration are very important for sustainable and inclusive growth in Asia and the Pacific regions. This MoU is an important step in supporting cross-border cooperation between Indonesia and Timor-Leste. Supporting livelihoods in lagging border areas is very important to overcome inequality. Anyone can participate in increasing regional prosperity. The Memorandum of Understanding is built based on the 'Scoping Study on Increasing Cross-Border Cooperation and Integration between Indonesia and Timor-Leste' carried out by ADB at the request of the Indonesian and Timor-Leste governments. The study identifies various challenges and opportunities for cross-border collaboration and identifies tourism and livestock as the main sectors for short-term benefits through collaboration.Indonesian Minister of Finance, Sri Mulyani said that the Indonesian government is committed to reducing regional inequality in Indonesia, and East Nusa Tenggara is one of the less developed regions in Indonesia. Thus, it is necessary to increase connectivity, accessibility and capacity as well as cross-border economic collaboration. This Memorandum of Understanding is a complementary national strategy to support border areas with additional collaboration with Timor-Leste.Meanwhile, Minister of Finance of Timor Leste, Sara Lobo Brites said that Timor-Leste has made a significant step since independence. Timor Leste would like to integrate more closely with ASEAN and the world economy and diversify its economy. According to the Brites, reducing trade barriers and establishing cooperation with closest neighbors is a key step in achieving this goal. He welcomed happily the memorandum of understanding with ADB and Indonesia as a first step in a sustainable partnership and mutually beneficial for growth.

03
May

Minister of Industry Airlangga Hartarto opened the 2019 Muslim Fashion Festival (MUFFEST) at the Jakarta Convention Center, South Jakarta on Wednesday (1/5). The event that takes place on May 1 until 4 exhibits local designer works, cosmetic and jewelry products. In his remarks, Minister Airlangga Hartanto conveyed his appreciation to the designers and supporters of the event. He pointed out that the government pushes Indonesia to become the world's Muslim fashion center. He also stated that after building infrastructure this year, human resources are the next priority, including the creative sector. Therefore, it also has to push vocational school education to be able to create young designers to appear and reach overseas markets.He further said that his side continues to enhance the development of the Muslim fashion industry in Indonesia in bid to be more competitive in the global arena and to show Indonesia's readiness to become one of the world's Muslim fashion centers by 2020. The opportunities for the global and domestic Muslim fashion markets are still very huge. Thus, the domestic Muslim fashion industry must play a major role.Minister Airlangga Hartarto also emphasized that the high number of Muslims in the world is one of the driving engines to develop the Muslim fashion industry. In 2018, Indonesia’s total population of Muslims reached 24 percent of the total Muslim population in the world. The 2019 Muslim Fashion Festival is attended by more than 100 designers who exhibit various kinds of fashion, beauty and jewelry products.National Chairman of Indonesian Fashion Chamber, who is also the Chairperson of the 2019 Muslim Fashion Festival (MUFFEST), Ali Charisma said that Indonesian Muslim clothing has distinctive characteristics that are very clear, very varied; their creations are open and their appearance is extraordinary. This can bring Indonesia to compete with international brands.Meanwhile, Director General of Small, Medium and Various Industries at the Ministry of Industry, Gati Wibawaningsih said that the Ministry of Industry involved 656 Small and Medium Industries (IKM) and 60 designers in the development of the Muslim fashion industry during 2018-2019. She also explained that the development program is integrated from upstream to downstream. Examples of programs are the link and match of the Muslim fashion industry with the textile industry, technical guidance and certification of the Indonesian National Work Competency Standards, capacity building for Muslim fashion of Small and Medium Industries, and the development of new entrepreneurs for Muslim clothing.

29
April


Minister of Foreign Affairs of Republik of Indonesia, Retno LP Marsudi and the Customs Minister of the People's Republic of China, Ni Yue Feng signed the mangosteen trade protocol on Thursday (25/4). The signing was carried out on the sidelines of the International Cooperation Conference on nd2 Belt and Road Forum -BRF II. The signing of the mangosteen trade protocol was carried out after China has allowed Indonesia to re-export the fruit to China. Minister Retno Marsudi said that this collaboration is part of enhancing connectivity and investment. He explained that in essence, the protocol serves to remove obstacles to the export of these commodities. Since 2017, China has given permission, Indonesia again sends mangosteen to China with the largest population in the world, Minister Retno Marsudi also explained that besides mangosteen, Indonesia would also export dragon fruit to China.
Minister Retno Marsudi noted that China is the biggest trading partner for Indonesia, with the trade value of both parties reaching US$70 billion dollars or around Rp990 trillion in 2018. Last year's trade value increased 23 percent compared to 2017. However, she views that Indonesia's trade deficit with China is still quite large. Thus, both countries have agreed to reduce deficits and to make trade more balanced and mutually beneficial. On this occasion, Minister Retno also said that Indonesia has facilitated the export of fruits from China such as mandarin oranges. Furthermore, Minister Retno Marsudi hopes that Minister Ni Yue Feng would provide assistance in finalizing Salak import from Indonesia, including the reduction in pineapple fruit tariffs so that bilateral trade would be more beneficial for both sides.Meanwhile, Minister Ni Yue Feng welcomed the request delivered by Minister Retno Marsudi. Minister Ni Yue also enjoyed the signing of the import protocol for mangosteen and dragon fruit from Indonesia.One day before, Minister Retno LP Marsudi also held a bilateral meeting with her Chinese counterpart, Wang Yi discussing the issue of palm oil and various other issues. In terms of palm oil, Indonesia expects China to immediately realize its commitment to increase palm oil imports from Indonesia. So far, China has opened up its market to various Indonesian products, such as palm oil and fruits.

17
April

On April 17th 2019, Indonesiahold simultaneous General Election. Indonesia had held General Election 11 times since its independence from the colonizers in 1945. The impact of revolution after the proclamation of Indonesian independence and the instability of cabinet were the reasons that the General Election in Indonesia was held 10 years after its independence namely in 1955. The first election in Indonesia was held in 1955. In the 1955 election, Indonesian people voted for members of House of Representatives (DPR). The contestants came from 29 parties. Although Indonesia did not have any experience in organizing general election before, the 1955 election was carried out successfully and conducively. The democracy festivity was transparent and open for all Indonesian people. Therefore, foreign observers perceived that the 1955 election was the most democratic election that Indonesia has ever held.The general election in Indonesia underwent several changes with the passage of time. After the rebellion of the Indonesian Communist Party in 1965 which was successfully countered, the new order was established. The next election was held again during the new order regime namely in 1971. The 1971 election was participated in by 10 parties. The 1971 election aimed to elect members of Indonesian House of Representatives (DPR), and the Regional House of Representatives for Provincial and Municipal Levels.Later, the New Order Regime cut off the number of political parties into two parties namely the United Development Party (PPP) and the Indonesian Democratic Party, plus the Functional Groups or Golkar. At the time, political parties were not allowed by the government to operate at villages. The General Election started to be held regularly every 5 years namely in 1977, 1982, 1987, 1992, and 1997.In 1998, the reformation movement successfully toppled the authoritarian new order regime. The 1999 election was held differently. As many as 48 political parties competed to become members of Indonesian House of Representative (DPR) and Regional House of Representatives (Provincial and Municipal Levels). The 2004 election applied different system. For the first time, in 2004 election, Indonesian people elected not only legislative members but also their president directly. The 2004 election applied the 3% Electoral Threshold so that the number of parties were restricted to 24 parties. Meanwhile, the 2009 election was participated in by 38 parties and local parties of Aceh. The Electoral Threshold was superseded in the 2009 election by the 2.5% Parliamentary Threshold. From 38 parties competing in the election, only 9 of them passed the parliamentary threshold and secured their seats at House of Representatives (DPR).The 2014 election was participated in by 12 parties. But, only 10 parties fulfilled the 3.5% Parliamentary Threshold and secured their seats at the Indonesian House of Representatives. Furthermore, as many as 16 national parties and 4 local Acehnese parties take part in the 2019 election. There are two presidential candidate pairs in the 2019 election. Presidential candidate pair Number 01 Joko Widodo and his running mate, Ma'ruf Amin. Meanwhile, Presidential Candidate pair Number 02 are Prabowo Subianto and, Sandiaga Uno.

Page 1 of 9