BKPM: Investors interest is high in indonesia

The head of investment coordinating board(BKPM) thomas lembong claimed the interest of foreign investors in indonesia is quite high currently. Lembong added the main cause of positive surged in investors is the improvement of service. The BKPM provides 3 hours one stop service of investment, a positive signal for foreign investors. 

BKPM is quite optimistic the target of RP 594.8trillion of investment this year will be reached likewise Rp 678.8 trillion next year 2017.

TIn forbes global conference in jakarta, wednesday 30th, november 2016, thomas lembong stated the government continues to reform the economy particularly the ease of investment for foreign investors. 

SKK MIGAS will merge with pertamina?

The vice president director of pertamina ahmad bambang expressed his intention to minister of state owned enterprise minister to merge SKK migas(special unit of upstream gas and oil) with pertamina thus the company will have large asset securities. According to bambang, through acquisition of SKK migas by pertamina, the company will be able to supersede the large gas and oil international company chevron. Bambang said:" if SKK migas has its reserves and continued to capitalize, its assets is unclear. 
However, minister of state owned company rini soemarno said that pertamina has still to wait the plan of acquisition even though the company intends to compete with asset of chevron. According to rini, the profit of pertamina so far has equated shell and petronas. 

Finance minister Appointed Tax Intelligent Chairman

Finance minister sri mulyani officially appointed tax intelligent director peni harjanto. In her speech, sri mulyani said the aim of intelligent appointment is for the further enlargement of tax base and monitoring the obediency  of tax payers. Further finance minister said, the data of taxpayers should not be misused to blackmail the taxpayers. The data must be used for the sake of general direcotorate of taxation to trawl the tax potentials. 
Sri mulyani who is also ex managing director of world bank conveyed the message to the appointed intelligent director to hold the credibility of organization both internally and externally especially regarding the abuse of corruption in general directorate of taxation.

Indonesia Hard Way to Reach 5.4% Economy Growth Projection in 2017

Bank of central indonesia projects the growth of economy optimistic at rate of 5.4% in 2017. Nevertheless, the stagnate of household consumption and commodity market due to global sluggish trend becomes the main challenge of government to meet the target. The economist from samuel asset management, lana soelistianingsih claimed to be impossible reaching the target as projected by central bank. According to Lana, the realistic achievement will be at 5.1% provided the government works on consumption boost and withdrawing more investment both private sectors and stated owned investments. 

As for now, though indonesia's economy growth is included in the top three best of the world, the growth of 5.1% in 2016 will be the similar achievement in 2017. There are several factors the will be the challenges especially the turmoil of domestic politics which fabricates issue such as rush money and the diffusion of government on political affairs rather than economy affairs. 

Since july 2016, the flagship program of tax amnesty has performed incredible progress for economy of which almost reaching the target of Rp 4000 trillion money repatriated. Yet in its second term which will last by march 2017, tax amnesty has been tampered by several issues of allegedly imposition of government aftermath the demand of detention of suspect governor of jakarta AHOK in blasphemy case. 

There are alot of energy being seized. It is blatantly evident, that some people seem to be disadvantaged by Jokowi's program thus plan to tackle down his presidency through illegal means, as stated by busyro muqqodas, chairman of legal law of muhammadiyah. 

Until several issue of politics being settled, the projection of 5.4% economy growth will be possible mostly caused by various under progress projects of government that will be started to perceived by 2017 and completed fully in 2019

Indonesia Exports Tuna fish from Maumere and bitung to Japan and South Korea

Indonesia under perum perikanan indonesia( stated owned company) started the export of fish especially tuna to korea and japan. The fisheries export and process is started from the outermost island maumere flores and bitung north celebes province. 

The shipping of fish for export has been started this week. The first from bitung of which the first container was released by perum perikanan indonesia. 
Meanwhile the 10tons of tuna fish from maumere was also exported this week to japan. The quality of tuna fish from maumere is recognized to be the best in asia and the world. 

PT sampoerna on tobacco excise increase and business plan for 2017

PT sampoerna tbk (HMSP) responds positively the government decision to increase tobacco excise 10.54% in 2017. The rate increase is lower than this year which is 15% meaning the government understand well that industry of cigarettes is facing serious problem especially clove cigarettes hand. 

Directorate general of customs and excise raised officially increased cigarette tax, 13.46% for white cigarettes machines and 0% for the tobacco clove hand class IIIB. In all, the average increase is at rate 10.54% thus the retail price of cigarettes is at average 12.26%. 

In the midst of sluggish growth of tobacco industry, pt sampoerna aims to allocate Rp 1 trillion for 2017 expenditure. This budget is used for the increase of machine cigarette factory and the opening new offices. Basically, the amount of budget for 2017 is similar with 2016. For the third quarter of 2016, sampoerna has adjusted the increase of retail price 11% which is in aline with the average of retail price increase of cigarettes around 10.3%.

Rush money 25 and Anxiety of financial sectors

25 Rush money was ruled in social media by certain people in responding toward the justice demand of alleged blasphemy by incumbent governor of jakarta, Ahok.
The disappointment of slow law enforcement toward the case as demanded by radical islamic group has caused the ignition of rush money issue by november 25th. 
There is a convey by certain people in social media for all muslim to withdraw their money from the bank if there would be no firm legal law enforcement to the jakarta governor. 

This nonetheless caused the anxiety for financial sector. As stated by coordinating minister of economy darmin nasution, he expected the people not to heed on the issue. This issue according to darmin is only made by irresponsible person who does not have a love and devote toward the country. If the case would truly happen, this is a serious threat toward the stability economy whereas the government has already made effort to boost the growth of economy at rate of 5%. Indonesia economy growth even the third best of the world.

President director of BRI bank, asmawi syam saw the issue will only bring disadvantage for us all. According to him, there is no reason to withdraw money from bank alluding to the stability of economy currently. 

The issue of rush money is in fact the smart strategy initiated thus it must be designed if not from within country, it could be foreign foes who try to diminish the government effort to boost indonesia economy progress. It is worth to be remembered how the policy of indonesia such as tax amnesty has caused grudge for destinated countries which is under threat of crisis turmoil due to repatriation of indonesian money overseas. 

Jokowi Urges 75% of Indonesian have access to the banks

Recently only 39% of the population have access toward the banks both saving and credit distribution. According  to the statistic data, in 2014 only 36% of indonesians have the access and the rest has not yet both having bank accounts and credit use of the banks. Meanwhile, president jokowi said since the independence around 71 years, indonesians should have more access than the statistic data performed. 

Due to this, president urged that in 2019, 75% of the population should have already banking access both saving and credit use. Government thus exhort the national inclusion finance strategy as solution to boost the access to the banks.
The main aim of strategy is to allow the citizens use the advantage of bank services especially the micro and small enterprises.

RAPP aims to be the second largest world paper producer

PT Riau Andalan Pulp and Paper(RAPP) aims to be the second largest paper producer of the world especially after the compeltion of third paper mill in pangkalan kerinci , pelalawan Riau.
Previously, RAPP has owned 2 paper mills with capacity of 3500 tons per day or 850000tons per year. With the completion of third mill, the company will be able to produce 1.1 million tons per year. 

The new plant has already started to be tested and expected to begin production in January next year," said Budhi Firmasyah, Assistant Communications Manager of PT RAPP to reporters while visiting a factory RAPP in Pelalawan Riau, on Wednesday (11/15/2016).
From the factory they have today, RAPP produces three different types of paper, the customer roll, cut-size and folio. Three types of paper was partly used to meet domestic demand with their Paper One, and another part is exported to 75 countries, including Japan, Australia, countries in Asia Pacific, and the Middle East.
Budhi said that, in addition to producing paper, RAPP also produces pulp or paper pulp production reached 1.2 million tons per year. This figure makes the RAPP as pulp producer 9th largest in the world. "In percentage, RAPP to supply about 7 percent of pulp in the world," said Budhi.
Production of 1.2 million tons of pulp, RAPP uses around 20 percent for the manufacture of paper in their own factory. While most of the others are exported to more than 20 countries, especially to China.
"In the future we will focus on the downstream sector, so the possibility of pulp production will be more widely used in the paper mill belonging to RAPP itself," said Budhi Firmansyah.

Sri Mulyani on Issue of Rush Money, Economy hostage November 25th

The allegedly blasphemy of incumbent jakarta governor, ahok incited the issue of rush money in social media that threaten the government to withdraw all money from bank if ever ahok would net be a suspect of the case. 
The call for all indonesian moslem customers to withdraw all their money from bank was raised by irresponsible persons as their further demand for justice of allegedly blasphemy case. 

Minister of finance, sri mulyani responded that such issue is expected not to occur. This will lead to instability of economy if the customers will take all their money from banks while the goverment is in the midst of effort to boost the rise of economy. On the same case, coordinating minister of economy darmin nasution considered such issue was raised by those who do not up hold the love and devotee for the country. 

This issue is serious threat for economy and a challenge for the government. And the shift of political issue to this rush money economy issue must be designed by intellectuals behind the scene. 

In certain point, the momentum of ahok's alleged blasohemy which incited the mass mob of moslem in jakarta metropolitan city is closely tied to the progress of indonesia in economy especially due to certain programs which are disadvantageous for other countries such as tax amnesty. Even in social media, the issue that such rush money and massive mob in november 4th was sponsored by neoghbor countries of which the main agenda to topple down the presidency of jokowi. 

President jokowi is known for his phenomenal programs that in certain point a threat for other neighbor countries. There is possibility that all issue with in the country will be used dethrone the president thus hinder the step of the country toward better progress 

PT Jasa Marga Blamed Delta Mas for 30cm water puddle in Jakarta-cikampek toll

vivanews

Around 30 cm the height of water puddle in KM 37 jakarta-cikampek toll yesterday sunday, 13th, november 2016. This has been occured twice since the first february 14th,2016.

PT jasa marga blamed delta mas as the cause of abundance of water from delta mas district to toll road. Corporate communication of pt jasa marga dwimawan heru urged delta mas to meet obligation that the same incident won't recur again. According to dwimawan, on february 14th, jasa marga had negotiated with pt puradelta as the developer of delta mas district to handle the first water puddle incident. PT puradelta agreed to repair its drainage system thus the water will not be splattered to the toll road. In that agreement, pt puradelta lestari tbk stated to increase the capacity of water storage from 4 hectare to 9 hectares and also making the permanent channel of situ alamasari to cibeet rive on the east side of km 41 jakarta-cikampek toll.

However, pt puradelta since the agreement made has not made the extension of drainage and permanent channel thus the water puddles fill the toll road km 37 around 30cm in height. 

FinTech bank officially inaugurated, reaching transaction Rp 188.5 trillion

The inauguration of financhial technology bank is  revolution of banking system offering the ease of transaction and use initiated by central bank of indonesia(BI). 
BI officially opens fintech office which is a product of well assessment, risk mitigation and evaluation of business model, said governor of BI agus martowardojo. 

Agus stated that there are 4 main objectives of fintech office establishment:
first, to facilitate development of innovation in technology based financial ecosystem, second to optimize development of technologu to support economoy, third to improve the competitiveness of financial industry, fourth to absorb information and provide feedback to support policy formulation of BI in response tothe development of technology base. 
To achieve that goal, Fintech Office will operate with four functions, namely the function of a catalyst or facilitator, business intelligence functions, function assessment, as well as coordination and communication functions.

BI Fintech Office is also equipped with regulatory sandbox, which allows a business unit fintech conduct limited activities, of course, after meeting the criteria set by BI.

FIntech provide the ease of access of finance through social media or internet application especially inline with the increase of e-commerce proliferation of the country. Agus underlined that total of transcation of fintech in 2016 reaches rp 188.5 trillion or 14.5 billion usd with the mostly used in category of online transaction. 
By means of fintech, customers will easily access financial transactions through internet use or smartphones. 

Citi bank lists the net profit Rp 1.9 trillion in the third quarter 2016

Citi bank reported the increasing of net profit growth around 64% in the third quarter of 2016. The net profit stands at Rp 1.9 trillion from Rp 1.16 trillion from the same period of previous year. Such increasing is caused as well by the increase of net interest by 15.5 % to Rp 3.05 trillion. while the fee based income rose 2.79% to Rp 1.51 trillion.

CEO of citi bank indonesia, batara sianturi explained that ration of return on asset (ROA) grows 4.47 % from 2.77% while return on equity( ROE)grows 16.54% from 10.60% previously. This result reflects the strong prospect of business of bank, batara added. 

The level of liquidity is also maintained with increasing low-cost funds in the form of demand deposits and savings amounting to 73.93 percent of the total third party funds.

This has contributed to an increase in the ratio of Net Interest Margin (NIM) to 6.14 percent from 5.30 percent in September 2015.

"The level of strong capital we always keep. This is evidenced by the increase in the ratio of Capital Adequacy amounted to 3.69 percent from 25.38 percent to 29.07 percent in the month of September 2016, "said Batara.

Air asia airlines provide 3 millions promo seats

Air asia airlines released the 3 millions promo seats for the last promo of 2016. The CEO of air asia, dendy kurniawan said begins from november 14th to november 20th, 2016 air asia customers will have the chance to have free seats for overseas destination sich as malaysia, singapore, bangkok, tokyo, hongkong, beijing and many other destinations. 
While the destination to new zealand and maldives, customers will gain affordable prices. 

Banking Crime Acts Rises, FSA alarms cusotmers

The statistic of banking crimes increases at least for last 2 years. Nelson tampubolon chief executive of FSA( financial services authority/ojk) explained the amount of investigated cases from 23 in 2015 to 26  cases in 2016.
Based on statistical data handled by FSA, the banking criminal acts since 2014 to third quarter of 2016 consistes of 55% credit cases, 21% eingineering registration, 15% embezzlement, 5 fund transfers and 4% acquisitons. The perpetrators of banking crimes are mostly the banks authorities, said nelson.

FSA increased the socialization and educations for the customers about banking crime acts while forcing bankers to maintain the trust of customers and giving precaution about possible crime may occur as to prevent initially. 

FSA on the other hand coordinates with other auhtorities such as law enforces to topple the issue and forming the act of prevention.

Bank of Indonesia reported current account deficit 4.5 billion dollar in third quarter 2016

Bank of indonesia reported the current account deficit fell around 1.8%  of gross domestic product or 4.5 billion usd in the third quarter 2016. The downsizing of account deficit is caused by the improvement of the trade balance of goods and services, said executive director of statistic department of BI hendy sulistiowati. A decrease of current account deficit is underpinned by the increase of non oil trade balance surplues in line with the rise of primary commodity exports and decline of non oil imports as well the narrowing of the deficit trade of oil and gas along with the increasing of exports.

The balance payment surplus indonesia (NPI) in thrid quarter amounts 5.5 billion usd, significantly increasing compared to the surplus of previous period which was 2.2 billion usd .
Surplus of capital transaction and finance continues due to the positive sentiment toward the outlook of global economy sluggish toward domestic prospect of economy.

Surplus of capital and finance transaction in third quarter of 2016 is 9.4 billion usd bigger than second quarter of 2016 which was 5.2 billion usd.

Alibaba: Indonesia is the main target of market in south east asia

Alibaba one of large e commerce company seriously expand their business in indonesia. Through its vice president director, joe tsai, alibaba will concern more in e commerce sector business in the state through lazada.

There are some factors making Indonesia becomes the main target namely:

The first, Indonesia is the country with higheset population in south east asia. Much more important, the consumers in indonesia are relatively young compare to china. Mostly they are below 35 years old.

Seond, Indonesia has the large user of smartphone for online shopping which is different with other countries which prefer using pc or laptop. Meanwhile according to chamber of trade and commerce(kadin) the amount of internet users in the country grows faster of which until 2016 there has been around 80 millions. It is predicted by 2020, the total users will reach 215 millions.

Growth of economy for third quarter 2016 is 5.02%

The growth of economy of third quarter of 2016 is 5.02% lower than the second quarter which was 5.18%. Though it is lower, government through finance minister claimed this to be better than the other developing countries of the world. Sri mulyani said indonesia economy is much more healthy than other emerging countries such as turkey, brazil, and south africa which indicated their sluggish growth even negative trend.
It is only india and indonesia which maintains its economy at rate 5%.

Sri mulyani stressed that indonesia has the deficit budget capable to be maintained below 3% of gross domestic product, while in structural reformation. based on the report of world bank about ease of doing business is increasing compared to previous period.  Even indonesia is recognized as the best reformer which hints the confidence of better growth in the next periods.

Chamber of commerce and trade(KADIN) also considered the good indication of state's economy. The vice president of kadin shinta widjaja kamdani stated that government will continue to work on better growth of economy through reparation on necessary sectors.
In fact, even the next year the rate of growth will not more than 5.3% due to global trending of economy slow down.

Bappenas Agency Allures investor to build infrastructure in Indonesia

National development planning agency(bappenas) bambang brodjonegoro invites another asean countries to build infrastructure in the state. In forum of asean g2b infrastructure investment held in jakarta tuesday nov 8th, 2016 bambang said indonesia is quite potential market for investment particulalry infrastructure.

According to bambang, government has the commitment to invite domestic and foreign investors to partake in infrastructure through public private partnership mechanism. As for the information, asean has adopted master plan on asean connectivity 2025 in laos in order to create 5 strategic agenda in south east asia namely development of sustainable infrastructure, digital innovation, smooth flow of logistics , regulatory support and ease of mobilization of the population.

Central kalimantan Governor Imitate President Duterte handling Drug lords

Central kalimantan governor, sugianto sabran admitted to be inspired by the approach of philippines president duterte to eradicate the drug problem in his province. This politician reasoned out that drug is a massive killing and this crime continues to increase despite the various solutions taken, thus shot the drug lords is the ultimate resolution to overcome the high proliferation of drug in his region. 

The governor said to have coordinatied with drug national agency( BNN) of central kalimantan, police and related institution. 

For each drug lord shot, the mysterious snipper will be rewarded each Rp 50 millions for head shot and Rp 25 millions for shot on foot. He said there are around 76 kilogram of drugs being seiured every year and around 50 thousand drug lords scattered allover central kalimantan province. 

To boost his program, governor will include budget around Rp 3 to 5 billions per year.

Mandiri bank coupled line for electronic transaction ease

Mandiri bank recently has coupled the large chatting application line to enlarge the use of electronic transaction.
The mandiri e-cash will be used in line application for any needs including to facilitate line transaction through line pay.

Director of digital banking and technology of mandiri bank, rico u frans said that now e-transfer can  be done by simple line text both for those who have registered for mandir e-cash and those who have not.
For user of mandiri e-cash can integrate e-cash with pay line and use for any kind of transaction through line while for those who have not had mandiri cash can integrate their account in line application.

The potential vast market share of line comprising of around 90 million users becomes the reason of mandiri bank to overview the market oppurtunity through this large line chatting application.
The main taget is the youth life style afterall line pay will be able to use in various transactions.
 

Not paying taxes for 5 years, Google has to pay this year

The director of general directorate of taxation, ken dwijugiastiadi set ultimatum for google has to pay taxes by the end of the year. Ken said to have accomplished the examination toward this giant engine search company and will make closing conference.

Both general directorate of taxation and the examinee, google will discuss the finding of examination. Previously, google was cognized not to enlisted as formal permanent establishment. The company also have not paying taxes for 5 years. It is estimated total taxes reaches Rp 5.5 trillion for five years though general directorate have not released the amount. 

Google Indonesia was acknowledged not to pay taxes. This company which has headquarter in singapore claimed that it's not registered as permanent establishment thus it has no obligation to pay tax. The directorate of taxes under finance ministry summon the company to have a further talk regarding its obligation. In fact singapore google, the headquarter of indonesia has made meetings with directorate of taxation to talk about tax payment. However, after the finding of the taxpayer status, google rejected to pay taxes and the government look to enforce crime indication for the case.

Ahmad dani was reported of allegedly defaming speech against jokowi

Musician who is also vice mayor candidate for bekasi, ahmad dani was reported to the police by jokowi loyalist Projo for defamation speech against president during the mass mob in november 4th, 2016.

In his speech to demand the accusation of blasphemy against alquran of ahok, dani said unpolite words toward president jokowi. 

Laskar rakyat jokowi and projo stated that ahmad dani who is recognized as knowledgable person does not deserve to utter unpolite words against president. They also collected the evidence of video of which ahmad dani said bad words against president. As we know, the regulation to legally process the unpolite words and subject to imprisonement. There have been similar cases but through facebook caugth by police defaming president and been sent to jail. Through this, if being proved of defaming, dani might be subject to legal court process and further investigation of the police. 

South Korea claims to shipping more technology to indonesia than japan

South korea has much more investment especially the shipping of technology to indonesia than its rival japan. The giant steel company of korea, pohang iron and steel company(POSCO) stated their investment strategy completely different from japanese. Senior vice president of posco lim seung kyu  said his company supports the steel industry of indonesia, thus posco claimed to support the upstream and downstream of steel business of the state.

Lim said, it is not easy to spend much money especially giving technology by posco. He added korean investment both downstream and upstream is not only to take porfit and buid the factory while japanese takes only the down stream with least investment yet attaining big revenue. Japan in order to make downstream products has to import upstream product in their country thus the basic technology will not enter into indonesia. There are alot of technology transfered to indonesia. In term of strategy the joint ventrue between posco and pt krakatau steel indonesia is the same which used in gwangyang and pohang factory of korea. Posco focuses in automotive production capable to produce 23 million tons in gwangyang, while in pohang capable to produce 18 millions tons with varies of productions. 

Krakatau steel and posco works in partnership since 2014 and capable to produce 3 millions tons for upstream products and the government wishes to expand production to 10 million tons with first investment worth of 3 billion dollars in cilegon banten to produce the steel.

Pelindo II targets for 6 Tillion from IPO

PT pelindo stated owned enterprise targets for 6 trillion from initial public offering (IPO) from 3 of its subsidiaries namely pt jasa armada indonesia( JAI0, pt indonesia kendaraan  terminal(IKIT) and pt pelabuhan tanjung priok (PTP). The plan of divestment of three subsidiaries will be made gradually in 2017.

President director of pelindo II elvyn g masassya said the fund from IPO will  be used for the development of the ports. Elvyn claimed not to have sured which company's share will be released first. As for now, it is still in pre release revamping stock. 

Evlyin said from divestment of shares, the company targets to gain Rp 4.5 trillion to Rp 6 trillion. The funds will be used for ports development in sorong and kijing likewise to incrase the management of subsidiaries.

Sony Predicts decrease of profit 10%

The large electronic company of japan, sony predicts its profit will shrink down of 10% due to sluggish battery unit business.Sony decided to sell the such business unit to murata manufacturing and gaining 33 billion yen from the sale. 

Currently sony assesses the operational cost will be 2.6 billion USA dollars for the fiscal year that will end in march 2017.

he decision to sell the battery business unit is part of Sony's restructuring efforts undertaken in order to focus on core business units are extremely profitable, such as videogame, entertainment, and the camera sensor.
In July 2016, Sony cut its sales forecast for the whole year by 9 percent to 7.4 trillion yen.
Sony hit by the increase in the value of the yen, which makes a sale outside Japan fell in value when converted back into yen.
Sony also experienced a decline in sales on the production of smartphones, film and TV production units, as well as the division of computer games.