The President Post October 2015

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Jokowi : Let’s Invest in Indonesia! T

he state visit of President Joko Widodo (Jokowi) and a number of Cabinet ministers to the Middle East one of which is to attract investors. President Jokowi even directly invite entrepreneurs to invest. "Ladies and gentlemen, this is the best time to invest in Indonesia. Come and let’s invest in Indonesia!" said Jokowi in Indonesia-Qatar Business Forum at the Grand Hyatt Hotel, Doha, Qatar, on Monday (14/9). Jokowi explained, Indonesia is aggressively building a good infrastructure for transportation and electricity. Rapid mass transportation such as trains and Light Rail Transit (LRT) are also sold by Jokowi in the presence of the Minister of Economy of Qatar Sheikh Ahmad bin Jasim al Thany, and entrepreneurs.

President Jokowi speech at Indonesia-Qatar Business Forum at the Grand Hyatt Hotel, Doha, Qatar, on Monday (9/14/2015).

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Another reason expressed by Jokowi is about the global economic cycles that affect

many countries. Therefore, all countries should help each other, especially in terms of investment. "We must look ahead! Good commodities are not only from nature, but also from human resources. Let's increase our human capital! Indonesia has opened up opportunities to invest in infrastructure, so that the country can focus on to bring up human resources by increasing the education and health budget," said Jokowi. Jokowi invitation is also extended to the United Arab Emirates-Indonesia Business Summit on Sunday (13/9) at the Emirates Palace Hotel, Abu Dhabi, in front of Abu Dhabi entrepreneurs. There was also a meeting between the Indonesian Chamber of Commerce in Saudi Arabia that took place on Saturday (12/9). In the event that took place at the Crowne Hotel, Jeddah, Jokowi said the same thing.(qoi)

Jokowi Prepare to Build Two Bonded Logistics Center at Cikarang and Merak

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resident Joko Widodo preparing building two Bonded Logistics Center in Cikarang, Bekasi, West Java for the manufacturing industry and another in Merak, Banten, for the fuel supply. It is hoped that this breakthrough could cut logistics cost down and in the end could turn Indonesia to become South East Asia’s center of logistic. Bonded Logistics Center is included in the deregulation package to stimulate the economy which was released not so long ago. Coordinating Minister of Economy, Darmin Nasution said one of the government regulations (PP) being deregulated was PP No. 32 / 2009 about Bonded Area. The regulation had been amended and was being reviewed by Ministry of Law and Human Rights. The new regulation was expected to be published and applied by the end of October 2015. With this deregulation of Bonded Logistics Center,

Darmin hoped manufacturing companies could have closer and better access of raw materials to cut down the price and lower production cost. “We heard complains about high logistics cost. Freight cost from Papua to Jakarta is higher than from China. It was because we never designed good (logistics) concept, “ said Darmin in his office, Jakarta, Friday (18/9). Darmin said, Indonesia is one of cotton importers because high domestic demand and needs. Every year, he added, this country bought cotton supply from USA and Russia. “But the commodity was piled in Kuala Lumpur, Malaysia because they have bonded warehouse facilities there. Why not we build our own (bonded logistics center) here? So we do not need to re-import anymore,“ he said. Finance Minister, Bambang Brodjonegoro said, Government Regulation (PP) about the bonded logistics center has been

processed at the Ministry for Economic Affairs, and will be signed or authenticated by President Jokowi. "We want to provide the best industrial facilities. The nationwide logistics centers," said Bambang, when announcing the Economic Policy Package Volume II, at the State Palace, Jakarta , Tuesday (29/9).

Customs Agency Supports the Idea Director General of Customs and Excise Heru Pambudi explained several benefits of developing bonded logistics center. First, closing the gap between factories and raw materials domestically. Second, attracting foreign and domestic investor. Third, reducing dwelling time and logistics cost at the seaport. Fourth, increasing government tax revenue potential. He said development of bonded logistics center could shift the stockpiling of raw materials

needed by domestic manufacturers from abroad, especially Malaysia, Portland and Singapore, to Indonesia. “To provide better access to raw materials and transaction could be done faster at anytime. It would be practical (to build bonded logistics center) close to industrial centers” he said. According to Pambudi, this bonded logistics center or modern bonded warehouse would be built in several places depending on needs. He gave examples for manufacturing companies could be built in Jababeka, Tangerang, Ungaran, and Pasuruan. While for oil could be build in Tanjung Batu, East Borneo. Investment in bonded logistics center would be offered to private sectors because it has business potentials. Government would just support by deferring import duties and taxes for stockpiled materials before leaving bonded logistics center to domestic market.

National Cotton Distribution Center Would be Established Soon Indonesia national cotton distribution center must be established soon. It was part of the effort to manage import cotton distribution line as part of national cotton supply. So far, fluctuating cotton prices, low quality supply, and lack of certainty in supply had become challenges for local textile industries. In Indonesia, importing cotton through resellers are still dominating national cotton supply pattern. Buying from resellers had exposed textile industries to higher prices, while about 95 % of cotton is supplied from imports. Therefore, Indonesia textile industries

praise this amendment of government regulation (PP) of Bonded Logistics Center, because it could cut national logistics cost. “We appreciate government step by providing regulation (of Bonded Logistics Center), it gave assurance for several businesses and industries, including textile industries. We had been waiting for this regulation, even though it was not just about cotton,” said Secretary General of Indonesia Textile Association Ernovian G. Ismy, Sunday (20/9). Ismy agreed with Coordinating Minister of Economy that the bonded logistics center facilities at Cikarang Dry Port would shift the cotton stockpiles domestically instead of current practice in

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Domestic trading and distribution activity would reduce the needs of foreign currency; it would have positive impact to rupiah exchange rate. “In the end this policy would increase national textile industries’ competitiveness, hopefully it would lead Indonesia to become an axis in ASEAN Economic Community, “ Ismy closed his statement.(qoi)

Jokowi Economic Policy Package President Joko Widodo launched three economic policy packages in response to the current global economic conditions that affect the Indonesian economy. "We have taken steps, but these measures have not been enough. So the Government launched the first phase of the policy package, September 2015," said President Jokowi when announcing the policy packages at the State Palace, Wednesday, September 9, 2015. Three packages of this policy was firstly, pushing national industrial competitiveness through deregulation, debureaucratization, law enforcement and increased business certainty.

Container at Port of Tanjung Priok, North Jakarta.

Malaysia. It was the main purpose of this bonded logistics center. This policy would be effective to reduce partial buying and in the end could reduce import lead time for cotton. When this cotton distribution center was established, government would enjoy the tax revenue benefits by shifting the distribution activity in Indonesia.

"There are 79 regulations rewritten from the 154 rules that eliminated duplication and cut regulation that hinder competitiveness," said Jokowi. In addition, the Government is also

preparing a presidential decree, a ministerial decree to speed up the bureaucracy. Simplification of permit issuance process, strengthening synergies and improving quality of public services is also the focus of the first point in the policy package. The second point in the policy package is to accelerate the implementation of national strategic projects by eliminating existing barriers, simplifying permits, expedite the procurement of goods and to strengthen the role of head of the region to support the strategic program. Thirdly, the government will increase investment in the property sector. The Government, said Jokowi, will issue a policy for construction of houses for low-income people and open investment opportunities in this sector as much as possible. Jokowi targets regulatory issues have been sorted out in September and October 2015.(awp)


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