The President Post English Edition August 2017

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August, 2017 | Vol. 7 No. 8

INTERNATIONAL

RI-Turkey Cooperation, We Target Rp133 Trillion in Trade Page A4

INFRASTRUCTURE

Toll Road to Access Kertajati Airport under Design Process

TOURISM

Australia Ready to Finance Development of 10 Destinations of New Bali Page A7

Page A5

metrotvnews.com

REI Ready to Work on TOD of LRT Jabodetabek The project of Jabodetabek light rail transit (LRT) by the government is underway. The substantial fund needed for the project has made the government seek other sources by offering the private sector to build properties based on transit oriented development (TOD).

Soelaeman Soemawinata, Chairman of Real Estate Indonesia (REI), said that he will invite the property developers to work together on the TOD projects on the west side of Jabodetabek LRT line.

For that, according to him, a pre-study was being done for the TOD locations provided by the govern-

“Indonesia’s infrastructure gap is an urgent challenge and a tremendous opportunity as well. Investing effectively in infrastructure is critical to accelerating the inclusive and sustainable economic growth, and it will help unlock the enormous potential of the country,” Kim said.

housing-estate.com

ment. REI itself has appointed consultants to provide inputs related to this TOD projects.

“We will not only conduct pre-study but will also review the business and operational schemes,” Soelaeman said on Monday (31/7).

According to him, the development of TOD properties would not only be viewed for merely business profit, but how the public transportation system can be used optimally.

Previously, the government said it would invite private sector to develop the TOD properties along the LRT Jabodetabek. The TOD’s 50 hectares of land area will be open for auction in the near future.

(KTN/TPP)

Quote Of The Month

I really appreciate the courage of young people in opening a business, raising a local brand.

President Joko Widodo

World Bank President Meets President Jokowi to Discuss Infrastructure World Bank Group President Jim Yong Kim has paid a two-day visit to Jakarta to discuss the policy reforms in a bid to increase revenue and encourage more efficient spending in infrastructure and human resources sectors.

“I strongly support the government’s efforts to continue the reforms that will benefit the entire population of Indonesia, including finding more efficient ways to earn and spend in financing the development programs,” Kim said in a statement received in Jakarta on Monday (24/7) During his visit from Tuesday (25/7) to Wednesday (26/7), Kim met with President Joko Widodo, Vice President Jusuf Kalla, Finance Minister Sri Mulyani Indrawa-

ti and other ministers.

Kim also participated in the Infrastructure Financing Forum aimed at engaging public and private sector stakeholders in mobilizing the infrastructure development financing.

“Indonesia’s infrastructure gap is an urgent challenge and a tremendous opportunity as well. Investing effectively in infrastructure is critical to accelerating the inclusive and sustainable economic growth, and it will help unlock

the enormous potential of the country,” Kim said.

The Infrastructure Financing Forum, held on Tuesday (25/7), is part of a series of events leading to the IMFWorld Bank Annual Meeting in 2018 to be held in October 2018 in Bali, Indonesia.

“I am grateful to the government and people of Indonesia who host the 2018 Annual Meetings. This global event will raise awareness of Indonesia’s development success, as well as its cultural diver-

sity and natural beauty,” Kim added.

Kim also called for the importance of the Indonesian youth to invest in the next generation and further raise awareness of Indonesia’s challenge in building human resources.

According to him, investment in early childhood is very important to end the epidemic of stunting (chronic malnutrition) and is the most cost-effective investment for a country to reduce inequali-

ty, promote future growth and prosperity.

“A healthy and happy child will be a productive member of society and encourage economic growth in Indonesia. Investing in this area is very important to realize Indonesia’s high aspirations,” Kim said.

A national health survey estimates that about nine million Indonesian children under the age of five currently experience stunting or about one-third of all under-five kids. (INDRY/TPP)

Investment in Food and Beverages for 1H17 Hikes 25% “The increased investment occurred precisely when the sales of food and beverages dropped in the first semester, indicating that the investors believe this sector is still prospective, let alone the government is targeting quite aggressive economic growth,” said Chairman of Indonesian Food and Beverage Entrepreneurs Association (Gapmmi) Adhi Lukman to Investor Daily, on Thursday (27/7).

Investors, he explained, viewed that the Indonesian market is still very promising in the future.

With a population of 250 million people, Indonesia provides a lucrative market for food products.

Moreover, with the number of people making up 40% of the total Asean population, Indonesia

becomes a strategic production base in the region.

“If they want to invest, they will look long-term. Investing in this sector becomes the second largest after mining, and this indicates a huge interest from investors,” said Adhi.

Based on data from the Investment Coordinating Board (BKPM) released Wednesday (26/7), the realization of investment in food and beverages sector throughout January-June 2017 reached Rp37.36 trillion. A total of Rp21.64 trillion is domestic investments (PMDN) with 887 projects, and US$1.18 billion or around Rp15.73 trillion is PMA with 1,203 projects.

Investment in this sector still tops the list for PMDN, beat-

ing the sectors of transportation, warehouse and telecommunications at Rp20.55 trillion and mining sector at Rp15.54 trillion.

Meanwhile for the PMA, the food and beverages sector is ranked fifth largest under the mining sector; basic metal industry, metal goods, machinery, and electronics sector; electricity, gas and water sector; and basic chemical, chemical goods, and pharmaceu-

ticals sector.

Adhi said that the investment in food and beverages during 1H17 includes the expansion of plant capacity and the construction of new factories. However, most of the investment is still on the downstream.

“The investment also mostly at medium-scale, around Rp18 billion per investment for ready-toeat products,” he added.

In fact, he said, the investment on upstream industry and between is also needed to reduce the dependence of imports on raw materials. “Our imports have been huge for the food raw materials, not because we do not want to use domestic products, but because they are not available, so we actually encourage

investment on the upstream,” explained Adhi.

He said he hoped the government will be more aggressive to lure investors into the upstream industry of food. “It is rather difficult to attract investment in the upstream, because the investment must be much bigger, the land must be larger, and need a lower interest rate, but the market is there, and big.”

Earlier, Industry Minister Airlangga Hartarto said the national industry of food and beverages needs to expand export markets to boost its performance. This industry also needs to make a breakthrough innovation of products, so it can be in demand by consumers in the country and abroad. (BTS/TPP)

A2 | August, 2017 | Vol. 7 No. 8

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HIGHLIGHTS setkab.go.id

Reason why Jokowi Looks for Investment Opportunities to Middle East bp.blogspot.com

President Wants No Regulation to Hinder Investments President Joko Widodo has said that he does not want any regulation to make the citizens, workers, employers, and investors deal with complications when investing in Indonesia.

“The key to grow the economy today is only two, because our State Budget is unlikely to jump up. The two things are important to boost our economic growth. The first is increasing the investments and the second is increasing the exports,” said President Joko Widodo (Jokowi) at GOR Ahmad Yani, Indonesian Military (TNI) Headquarters, Cilangkap, East Jakarta, on Monday (7/24).

The president was briefing to prospective teenage officers (Capaja) of TNI and Police Academy

of Year 2017.

The statement was related to the increasing number of international rating agencies who rate Indonesia worth of investments.

President Joko Widodo has been pushing his cabinet to take advantage of the momentum to boost the investments and exports.

In a plenary cabinet meeting held on Monday afternoon, the president reprimanded the ministers and heads of state institutions he considered still issuing policies which make the bureaucratic chain longer and complicate things related to investment permits.

In fact, as the president said, investment is needed for the Indonesia’s economic growth.

“If there is a minister or director general still issuing regulation that worsens the bureaucracy, adding to the intricacy for the people who want business expansion and investment, yes I reprimand them,” said the president.

Regarding the exports, President Joko Widodo keeps reminding that Indonesia must start exploring new markets in the countries which have never been penetrated by Indonesian products before.

The president repeatedly has remarked that in previous occasions.

“Because our exports we are still struggling in the same markets again and again, so traditional, do not dare to step into

non-traditional markets that should be worked on well,” he said.

These two things are constantly reminded by the president while meeting with his cabinet members.

The international survey institute “Gallup World Poll” in the latest release published by the Organization for Economic Cooperation and Development (OECD) mentions that Indonesia is a country with the highest level of public trust to the government compared with other countries.

The good climate and the support of community are certainly expected to further boost the investments and grow the Indonesian economy. (MRPT/TPP)

To deal with the changes that may affect the civilization, education on character building and religious values is important to the next generation, said President Joko Widodo while closing the National Working Conference II and Technical Guidance of House Representatives Members from the United Development Party (PPP) at the Mercure Hotel, Jakarta, on Friday (21/7).

“Strengthening the education system, strengthening the boarding schools, religious education is still the key so that the changes in the world won’t affect us,” said the president.

According to the president, there is a so-called Generation Y (Gen Y) currently around 15-25 years old, which later will drive the changes and dominate the market.

“It’s our job to anticipate how to build the character of our Generation Y, how to ‘fill in’ our children. I think Islamic values can safeguard this nation from the tremendously rapid flow of global changes,” the president said.

He also said that the economy in the future will also face various challenges. For that, he acknowledged Indo-

nesia is currently looking for investment opportunities from various countries especially the Middle East.

“Why I am now frequently approaching the Middle East? It is important to keep the balance so that we won’t be heavier on one side. We are not too close to the West, not too close to China or Japan. Balancing is what we continue to do,” said the president.

He added that to secure the economy, Indonesia should not depend on only a few countries.

“Where do the changes go to is difficult to predict even by state leaders. If we have the balance, God willing our economy will be more secure,” he added.

Closing his speech, President Jokowi reminded again that the challenges ahead will be not easy. Therefore, he invites all of us to unite and strengthen our Islamic Basyariyah (humanity) and Wathaniyah (nationality) so that this country can move forward and compete with other countries in the world.

President Jokowi was accompanied by Minister of State Secretariat Pratikno, Minister of Religious Affairs Lukman Hakim Saifuddin, Chief of Presidential Staff Teten Masduki, KH Maimun Zubair and Chairman of PPP Romahurmuziy, among others. (SUR/TPP)

pu.go.id

Jokowi Wants APBD Allocation to Focus on Investment and Export Indonesian President Joko Widodo (Jokowi) has asked the regional leaders to allocate the Regional State Budget (APBD) for investment and export-oriented activities.

Jokowi said that investment and export are key to increase the economic growth in the regions and will help improve the national economic growth in the end.

“The Governors, Regents or Mayors must understand the two important things, namely investment and exports, please

note these two points. Because it is impossible to increase the APBD if these two things are not taken seriously,” said Jokowi in the opening of the National Coordination Meeting (Rakornas) on Inflation Control Year 2017 at the Hotel Grand Sahid Jaya, Jakarta, on Thursday (7/27).

Jokowi said, in the ranks of G-20 countries, Indonesia’s economic growth is still included in the top three after China and India. To that end, the local leaders must be active in

maintaining this momentum.

Jokowi also underlines the uneven use of APBD over one year. Many regions still spend a little of the APBD in the early months and then overspending in the end of the year, in November and December.

“It’s supposed to start in the early months, for example, the down payments are done in January. Do not nurture the habit of putting the money in the bank for months, making the circulation of money in the area become tight,” he said.

elshinta.com

Government to Ease Foreign Ownership Restrictions on Some Industry Sectors President Joko Widodo (Jokowi) has said that his government will lessen the foreign restrictions on certain industry sectors in August. This move is to accommodate the possible US$10 billion investment inflows in the next two years after the S&P upgrade.

Indonesia is rated investment grade after S&P raised its outlook to ‘BBB-’ from ‘BB+’, matching the ratings already awarded by Fitch and Moody’s.

The upgrade, according to President Jokowi, “is very important to encourage more capital inflows. Some of the money will go into the stock and bond markets then the companies here can take and invest to the real

sector.”

Although the growth of Indonesia’s gross domestic product has slowed down from more than 6 percent to around 5 percent in the last couple of years, its vast domestic market is still seen as an engine of growth.

However some foreign companies have complained that vested interests are blocking them from gaining more access.

President Jokowi said he is committed to keeping Indonesia’s economy open and competitive. This commitment has been evidenced by the launch of 15 economic stimulus packages since late 2015, including the easing of foreign ownership restrictions on business sectors

Jokowi pointed out some efforts made by the government of South Sulawesi Province. By carrying out what Jokowi ordered, South Sulawesi managed to grow its economy at 7.4 percent in 2016, becoming one of the highest in Indonesia.

“Even the economic growth in Makassar is 7.9 percent.

This is probably the highest in the world, because the other countries were only able to reach 1 percent, 2 percent, only around that,” said Jokowi.

(LPT6/TPP)

of tourism, transportation and movie theaters last year.

“We will revise again the negative list of investment in August in some other sectors that are partially or fully closed to foreigners,” the president said, declining to say which sectors would be opened up.

In June Transport Minister Budi Karya Sumadi said that the government was considering to loosen the rules on airport

operation services. Foreign ownership in that sector is currently limited at 49 percent.

Regarding US President Donald Trump’s protectionism which put Indonesia on a list of 16 countries to be reviewed over trade surpluses, President Jokowi said, “Going back to trade protectionism can result in trade war. We must avoid it.

Open economy is very important for us.” (ABS/TPP)

Visiting Pekanbaru-Dumai Toll Road, Jokowi Amazed at Speedy Progress President Joko Widodo has visited the construction site of Pekanbaru-Dumai toll road, located in Kampar Regency, Riau Province.

“The Pekanbaru-Dumai toll road is underway, started six months ago, and now in the process of ‘land clearing’, as well as land acquisition,” said the president while visiting the construction site in Kambar Regency, Riau, on Sunday (7/23).

The president was accompanied by Minister of StateOwned Enterprises Rini Soemarno, Minister of Public Works and Public Housing Basuki Hadimuljono, State Secretary Pratikno, and Riau Governor Arsyadjuliandi Rachman.

The president watched the process of land backfilling with the red soil on the construction site in Muara Fajar Village. The road goes through oil palm plantations.

“Currently the land acquisition has reached 47%. The payment is late, still the process is quite fast, thanks to the Minister of National Land Agency (BPN), the governor, the Minister of PUPR, the Minister of SOEs, and the executives of PT Hutama Karya.

It’s so fast that in six months the land acquisition has

reached 47% of the total 131 kilometers of the Dumai-Pekanbaru toll road,” said the president.

The toll road construction, according to him, would need around Rp15 trillion with the target of completion on land payment in August 2017. “The target is to finish the construction of the toll road sometime in late 2019, God willing,” added the president.

In addition to the Pekanbaru-Dumai toll road, the government also plans to build a toll road connecting PekanbaruPadang, West Sumatra. According to Jokowi, the route of Pekanbaru-Padang toll road has been set, but it may get some changes.

“Most likely the route will be changed to make the land acquisition easier because it belongs to SOEs, shorter too, only need to make a tunnel. I think it will start to be worked on at the end of this year,” the president said.

He admitted that the development of trans-Sumatera highway to connect Lampung to Aceh still requires a lot of hard works. According to him, this is a big job to connecting Lampung and Aceh.

“I got the report from the President Director of Hutama Karya.

It (progress) is very quick. From Aceh will be starting next year, so the development will be sequential,” added the president.

(OKZ/TPP)

August, 2017 | Vol. 7 No. 8 | A3

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NATIONAL garuda.industry.co.id

Operational Status of Six SEZs to be Soon Determined by Government The government through the National Council of Special Economic Zones (SEZ/KEK) will soon determine the operational status and final stage of evaluation of the six SEZs. “The National Council of SEZs will conduct a hearing in the near future and decide whether or not the SEZs are ready to start the operation and attract investments,” said Chairman of the Implementing Team of the National Council of Special Economic Zones, Wahyu Utomo, to the media in Jakarta on Thursday (7/6) The six SEZs are designated

by Government Regulation (PP) on SEZs issued in 2014.

The six SEZs are Mandalika SEZ (NTB), Tanjung Api-api SEZ (South Sumatera), Maloy Batuta Trans Kalimantan-MBTK SEZ

PUBLISHER S. D. Darmono COMMISSIONER Agus Canny, Muljadi Suganda SENIOR ADVISOR Yuwono Sudarsono, Ermaya Suradinata, Sugiharto, Bacelius Ruru, Komaruddin Hidayat, Cosmas Batubara, George Hadi Santoso, Scott Younger, Ali Basyah Suryo, Prof. Budi Susilo Soepandy

(East Kalimantan), Bitung SEZ (North Sulawesi), and Morotai SEZ (North Maluku).

The total value of committed investments in the six SEZs was recorded at Rp188 trillion with the largest investment value is Tanjung Api-Api SEZ amounting to Rp161.7 trillion for the main sectors of rubber, palm oil and petrochemical processing industries.

Until the end of June 2017, 11 SEZs have gained the government determination. Two of them are Sei Mangkei SEZ (North Sumatera) and Tanjung Lesung SEZ (Banten) which was established in 2012 and has been declared operational by 2015.

Meanwhile, three new SEZs have been established and have not entered the operational stage yet, namely Sorong SEZ (West

Papua), Tanjung Kelayang SEZ (Bangka Belitung) and Arun Lhokseumawe SEZ (Aceh).

Wahyu said the SEZ proposers were given three years to prepare everything needed to make the SEZ ready for operation.

“These prerequisite conditions include the preparedness of the land, the infrastructure of the area, the administrative equipment of SEZ, and the human resources required to smooth its operations in receiving and serving the investors,” Wahyu said.

The basic concept of SEZ is the provision of facilities on an area whose location has the access to the global markets, such as the access to a port and an airport. Such area will be given an incentive to increase the competitiveness against the neighboring countries.

a breakthrough to bridge the socio-economic gap of the society, the gap between regions, and to build the economic indepen-

With the increased competitiveness it is expected to attract investors to invest in the zone.

The SEZ development becomes

dence away from the dominance of the export of raw materials of the national natural resources.

(INDTY/TPP)

Investments in 11 Special Economic Zones Reach Rp221 Trillion kek.go.id

CHIEF EXECUTIVE OFFICER AND EDITOR IN CHIEF Rachmat Wirasena Suryo EDITORIAL SECRETARY Erni S. Bermansyah, Azzahrotul Muthmainnah HS DEPUTY EDITOR IN CHIEF Arya Mandala, Dhiyan W. Wibowo, Robert J. EDITOR Achmad Fadli, Irvan Ali, Meutia Febrina, Khodijah Febriyani ART DIRECTOR Anton Ristiono WEB MANAGER Reza Partakusuma PHOTOGRAPHER Fakhri Muhammad SALES AND MARKETING MANAGER Nina Karlita ASSISTANT MANAGER Erni Imansyah BUSINESS DEVELOPMENT Dessy Yulieta SALES AND MARKETING Citra Arinda M., Marmis Rivera, Dwi Yuwanti CUSTOMER RELATIONSHIP Mirna Rumapea, Rangga Wiraspati, Puteri Anjatsari CIRCULATION AND DISTRIBUTION Maman Panjilesmana HEAD OF EDITORIAL AND MARKETING BEKASI, CIKARANG, KERAWANG, AND CILEGON Kris Cahyono HEAD OF EDITORIAL AND MARKETING JOGJAKARTA, SEMARANG, SURAKARTA, AND SURABAYA Edi Santoso, Sriyanto THE PRESIDENT POST Menara Batavia 25th floor Jl. KH. Mas Mansyur Kav. 126 Jakarta 10220 Telp. +62 21 579 303 47 Fax. +62 21 572 733 8 www.thepresidentpost.com PARTNERS

The government has targeted the construction and development of 25 Special Economic Zones (SEZ) in stages until 2019.

This is to attract an investment of Rp669 trillion and employment of 625,583 people.

Based on data from the Committee for the Acceleration of Priority Infrastructure Delivery (KPPIP), until the end of June 2017, 11 Special Economic Zones (SEZs) in Indonesia has obtained the determination status from the government. The realization of investments in the 11 SEZs has reached Rp221 trillion.

“We expect the SEZs to attract investments up to Rp726 trillion in 2030 and now it reached Rp221 trillion. Indeed it is not easy to get investors, we compete with the neighboring countries,”

said Deputy for the Acceleration of Infrastructure and Regional Development of the Coordinating Ministry for Economic Affairs, Wahyu Utomo in a Media Gathering at Pulau Dua Restaurant, Jakarta, on Thursday (7/6).

Based on the data, the biggest investor in the SEZs is Palembang GMA Refinery Consortium with the investment of Rp149 trillion, followed by ProCone GmbH with Rp8 trillion, MotoGP Circuit Rp6 trillion, and Alternative Protein Indonesia Rp5.7 trillion.

Based on the location, KEK

Having Own Switching, State-Owned Banks Save Rp7 Trillion The Ministry of StateOwned Enterprises (SOEs) projects the efficiency gained by the Association of StateOwned Banks (Himbara) with the operation of PT Jalin Pembayaran Nusantara (JPN) to reach Rp6-7 trillion. The switching company owned by the four stateowned banks is now officially licensed by Bank Indonesia.

“With the current Link ATM Himbara alone, the efficiency has reached between Rp6 trillion and Rp7 trillion and this year there is no purchase of new ATMs, so the efficiency will be higher,” said Deputy of Financial, Survey and Consulting Services of the SOEs Ministry Gatot Trihargo in the Plaza Mandiri, on Tuesday (6/20).

Meanwhile, President Director of PT Bank Mandiri (Persero) Tbk Kartika Wirjoatmodjo said the four state-owned banks would save capital expenditure (capex) between Rp465.5 billion and Rp558.6 billion. The capital expenditure is originally used to buy five to six thousands automatic teller machines (ATMs) in a year.

Based on the calculation

by Bank Mandiri, the stateowned bank in one year require two to three thousands additional ATMs. The price per machine is US$7 thousand or about Rp93.1 million (with exchange rate Rp13.300 per US dollar).

Thus, in one year, Bank Mandiri alone requires Rp186.2 billion to Rp279.3 billion to buy new ATMs. “So the four banks will need 5 to 6 thousands of machines or Rp465, 5 billion to Rp558, 6 billion of the capex,” said the man who is familiarly called Tiko.

In addition to saving capex, Tiko continued, the switching facility will also make the banks save the operational expenditure (opec) in managing the ATMs. At least Rp15 million will be needed to manage one ATM per month, while currently there are about 17 thousand ATMs owned

by Bank Mandiri. Thus, the opec for the ATMs reaches Rp255 billion per year.

The number of ATMs owned by the four state-owned banks is 60,120, requiring around Rp903.15 billion per month to manage them.

In addition to ATMs, the state-owned banks according to him can also save the management cost of the EDC machines

used by the merchants. He said Rp125,000 to Rp150,000 is needed to manage one EDC machine. The number of EDC Link Himbara is now about 19,000.

Tiko estimates the efficiency will be bigger because JPN will also manage the cash and the ATMs. “PT Jalin also has EDC that can be used by the four state-owned banks, which is very efficient by renting rather than buying,” explained Tiko.

He added that the benefits will also be enjoyed by the customers. For example the cost of interbank money transfer will be only Rp4,000 per transaction from currently Rp6.500.

“We will try to lower further,” Tiko said.

In line with Tiko, President Director of PT Bank Tabungan Negara (Persero) or BTN, Maryono, who also serves as Chairman of Himbara, said that the efficiency with JPN switching will give a greater impact to the four state-owned companies.

“With the Link ATMs, the number of ATMs can be used

by BTN customers is 60,000 instead of 1,300 BTN own ATMs. Next we will cooperate with the Regional Development Banks (BPDs),” Maryono added. (CNN/ TPP)

Tanjung Api-api attracts the biggest investment in the amount of Rp161.7 trillion, with the processing industries for rubber, palm oil, and petrochemicals.

In the second place is KEK Mandalika Tourism (NTB) at Rp16.2 trillion, followed by Tanjung Kelayang SEZ (Bangka Belitung) at Rp13.8 trillion, Sei Mangkei SEZ (North Sumatra) at Rp10.8 trillion, Tanjung Lesung SEZ (Banten) at Rp8.2 trillion, MBTK SEZ (East Kalimantan) at Rp8 trillion, and Bitung SEZ (North Sulawesi) at Rp2 trillion.

The rest are the SEZs with investments of less than Rp1 trillion, namely Morotai SEZ (North Maluku) at Rp95 billion, Sorong SEZ (West Papua) at Rp25 billion, Palu SEZ (Central Sulawesi) at Rp328 billion, and Arun Lhokseumawe SEZ (Aceh) at Rp100 billion.

In order to achieve the target, 6 new SEZs have been prepared.

They are Kuala Tanjung in North Sumatra with an investment target of Rp94 trillion, Pulau Asam Karimun (Kepulauan Riau) with a target of Rp10 trillion, Merauke

(Papua) Rp926 billion, Melolo in East Nusa Tenggara (NTT) and Bangka Island Tourism Area, and Nongsa (Batam).

The government will provide facilities for the investors in the SEZs in the form of fiscal and non-fiscal incentives, such as the exemption of import duty and the ease in various licensing.

“With the facilities, we lost up front but will gain later, not only in the form of money, but more widespread economically,” said Wahyu. (DTK/TPP)

Jonan: The 35,000 MW Program Will Be Done in 2025 Energy and Mineral Resources (ESDM) Minister Ignasius Jonan has ensured the construction of 35,000 MW power plants will not be completed in 2019 or 2020. In the next 3 years, it most likely to reach only 20,000 MW. “The program of additional capacity of 35,000 MW will continue. We understand that some of the power plants will not be completed in 20192020, so we predict to get the capacity of 20,000 MW in 2019 or 2020,” said Jonan in his opening speech at GE: Powering Indonesia at Mulia Hotel, Jakarta on Wednesday (7/19).

Despite cannot be done in 2019 it does not mean the 35,000 MW program stalls.

Jonan said, the construction continues and will be completed. It is expected the target will be realized in 2024-2025.

“This program will continue in the next 5 years and then in 2024-2025 the additional capacity target will be achieved,” he said.

In addition to the adequacy of power supply, Jonan also encourages the affordable electricity tariffs by all levels of society. So the electricity is not only enough, but also afford-

tirto.id

able.

“We always hope that the electricity tariffs will be more affordable for the people,” he said. “It is important, so besides the additional capacity the affordability of the price should be covered in the policy.”

Jonan said that all people should afford to pay the electricity. “The people from Sabang to Merauke, from Miangas Island to Rote Island are different and so as their economic capacity. For those here with enough capacity the price is still good. However for the people with income below the average GDP and living on the border areas, the affordability is a big issue,” he added.

The electricity infrastructure

is also very important to encourage equitable development, so it must be accelerated.

“The expansion of the transmission network is very important. One thing that must be realized soon by the state electricity company PLN is installing the transmission across Sumatra.

It is important because large islands like Sumatera with significant growth of economy and population must have enough transmission. After the transmission set up, PLN will be able to build power plants on the mouth of mines. In Sumatra there is also a lot of natural gas, so we are pushing PLN to build gas-fired power plants (PLTGs) at the gas well heads,” he concluded.

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A4 | August, 2017 | Vol. 7 No. 8

INTERNATIONAL kemlu.go.id

RI-Turkey Cooperation, Erdogan: We Target Rp133 Trillion in Trade setkab.go.id

RI Aims to Increase Trade with Richest Country in the World To explore the economic, trade and investment potentials of RI-Luxembourg, the Indonesian Embassy in Brussels organized an outreach event titled “Strengthening Indonesian Diplomacy: Enhancing Trade and Investment and Follow-Up of Luxembourg Foreign Affairs Minister’s Visit to Indonesia” on July 25-26 in Luxembourg.

The agenda of the two-day event include the meetings of Indonesian Ambassador with the Director of Politics of the Foreign Affairs Ministry of Luxembourg Jean Olinger (equivalent to Director General in Indonesia) and with Indonesian Society as well as a visit to the financial services provider company of Fernbach APAC and a Business Luncheon with business community and stakeholders.

In a meeting with Jean Olinger, both agreed to intensify the RI-Luxembourg relations in economy, trade and investment as well as people-to-people contacts. In the meeting, the Luxembourg offered a green bond scheme launched by Luxembourg in 2016 to be explored further to finance the development of sustainable palm oil industry in Indonesia.

On July 26, 2017, the Business Luncheon entitled “Do-

ing Business in Indonesia: Trade and Investment Opportunities,” became the highlight the Ambassador’s visit to Luxembourg. Performed as speakers at the event were Head of Indonesia Investment Promotion Center (IIPC) of London Chapter Nurul Ichwan and Bank Indonesia representative of London Office Fitria Irwi Triswati. The luncheon was attended by business people from Luxembourg and relevant stakeholders such as representatives from KADIN (Indonesian Chambers and Commerce), Finance Ministry, and Foreign Affairs Ministry of Luxembourg.

The bilateral trade of Indonesia - Luxembourg in January-July 2016 reached US$38.94 million, an increase from the same period in 2015 amounted to US$28.7 million. As one of the world’s largest banking centers, the realization of Luxembourg’s investments in Indonesia reaches US$66.65 million for 37 projects in 2015. As one of the richest countries in the world with US$57.8 billion GDP (2015) and per capita GDP of US$105,829.05 ( 2016), Luxembourg is the world’s financial center and the second largest global investment turnover center after the United States. (KML/ TPP)

One of the results of President Jokowi’s state visit to Turkey is the Indonesian-Turkey Comprehensive Economic Partnership Agreement (IT CEPA). This agreement is expected to boost the export of Indonesian commodities to Turkey.

The signing of memorandum of understanding (MoU) of the IT CEPA was held at the Turkish Presidential Palace, Ankara, on Thursday afternoon local time (7/6). Trade Minister Enggartiasto Lukita signed the agreement with the relevant minister from Turkey.

The signing of the agreement was witnessed by President

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Jokowi and Turkish President Recep Tayyip Erdogan. Jokowi expressed his enthusiasm after the signing of the MoU. “I welcome the signing of two cooperation documents between the Indonesian and Turkish governments in the field of health and the launch of the IndonesiaTurkey Comprehensive Economic Partnership Agreement,” said

Summer 2017 at the Convention and Exhibition Center (COEX), Seoul, which was attended by 23 small and medium scale entrepreneurs from Bandung, Yogyakarta, Bali, Lampung, Surabaya and Jakarta.

In the afternoon Ambassador Umar inaugurated the “Little Bandung Wall” located in the restaurant of Bali Bistro together with Chairman of Dekranasda (National Handicraft Board) Bandung chapter, Atalia Pr-

RI Elected as Vice Chairman of Codex Alimentarius Commission 2017-2018

Indonesian Candidate, Prof.

Purwiyatno Hariyadi was elected Vice Chairman of the Codex Alimentarius Commission (CAC) for the period 2017-2018 at the elections held during the 40th CAC Meeting in Geneva (7/19).

With the support of the Ministry of Foreign Affairs of the Republic of Indonesia, the National Standardization Agency (BSN) and PTRI Geneva, Prof. Purwiyatno, a professor at the Bogor Agricultural Institute (IPB), grabbed the highest votes of 103 out of a total of 122, beating the British and Lebanese candidates with 102 votes each and candidate from Papua New Guinea with 59 votes.

The top three candidates hold 3 (three) positions of Codex Vice Chairman. The three Vice Chairmen of Codex will work together with the Chairman of Codex for the period of 2017-2018. The Brazilian candi-

date was elected as the Chairman the previous day. Usually the Chairman and Vice Chairmen of the Codex hold their positions for two periods.

The Chairman and Vice Chairmen of Brazil, Indonesia, England and Lebanon will be incorporated in the Executive Committee which is the Codex executive body.

For Indonesia, an active role in the Codex is important since as the international standardssetting body it becomes the global reference in food standardization to protect the consumer health and facilitate fair international trade.

In his speech, representing the Indonesian delegation, Head of BSN Dr. Bambang Prasetyo expressed his appreciation to those who have supported Prof.

Purwiyatno. The success has showed Indonesia’s commitment to encourage the applica-

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Prof. Purwiyatno Hariyadi (Vice Chairman of CAC, left), Dr. Bambang Prasetya (Head of National Standardization Agency, right) and Watapri Geneva, Ambassador Hasan Kleib

work. Our decision today to launch the CEPA between Turkey and Indonesia is a strategic in the economic cooperation,” said Erdogan.

The trade value between RI and Turkey has been declining in the last few years. Trade Minister Enggartiasto Lukita said that he believed IT CEPA will improve it. (DTK/TPP)

Wow! There is Little Bandung in Seoul aratya Kamil.

“Almost 30% of Indonesia’s non-oil and gas exports to Korea is coal, while the new Korean government policy will gradually eliminate the coal-fired power plants. So, we must work hard to find alternatives to other nonoil products to replace the coal whose future demand from Korea will decline,” he said.

Ambassador Umar Hadi who finished his graduate education in Bandung, knows exactly the potential of the city that is famous by the nickname Paris van Java. “Bandung is a city with so many creative young people, who are able to produce high valueadded products. Korea is one of the potential markets for them,” he said.

In addition to Bali Bistro owned by young Korean entrepreneur born in Bandung, Gidong Lee, in Mapo-gu, Seoul, Little Bandung Wall was also

A day after submitting a Letter of Trust to the President of South Korea, Indonesian Ambassador Umar Hadi immediately started to work. On Thursday morning (20/7) he opened the Indonesian Pavilion at Handmade Korea

Jokowi.

Erdogan is also said that he was pleased with the launch of the IT CEPA. According to him this could further increase the value of trade between Turkey and Indonesia.

“We have a target of US$10 billion (about Rp133 trillion) in trade. We must work closely again using the existing frame-

opened at the Fun Road Cafe in Anyang-si. “The opening of Little Bandung Wall in two places at once in Seoul, Korea, is a strategic first step in marketing the products from Bandung city, especially SME products to break through the Korean market,” Atalia said.

During the inauguration, a video call between Ambassador Umar Hadi with Bandung Mayor Ridwan Kamil was held. “Bandung Municipality highly appreciates the support of the Embassy of Seoul who actively seek partners in Korea and inaugurate the Little Bandung Wall today,” said Ridwan Kamil.

The products displayed at the Little Bandung Wall consist of food, handicraft and fashion.

Bandung specialties such as durian pancakes, chocolate, oyster mushrooms, mustofa potato chips, and various handicraft products, as well as fashion prod-

ucts such as handbags, shoes, clothes, glasses, etc. are showcased as examples. The Little Bandung Wall provide the catalog for complete listed products.

The potential buyers interested in the products may contact directly the producers whose contact details available on the catalog. Later, the Bandung City Government will establish Little Bandung Stores which sell the products directly to the Korean consumers.

Based on data from the Trade and Industry Department of Bandung, the exports from Bandung to Korea tend to increase.

“The year 2016 recorded exports valued at US$13 million, increasing from the previous year of US$11 million, with major commodities of medical equipment, fashion, furniture, and food,” said Eric M. Atthauriq, Head of Trade and Industry Department of Bandung. (KEMLU/TPP)

tion of Codex standards, aimed not only at protecting the consumer health but also to realize the global food security and safety by facilitating access to safe, and healthy food for the people.

The Indonesia’s active role in the body is also aimed at ensuring that international food trade practices are fair.

Indonesia Permanent Representative in Geneva, Ambassador Hasan Kleib, who also witnessed the election process that took place strictly, said 188 member-states of Codex recognized the competence of Prof.

Purwiyatno and Indonesia’s commitment to contribute to the CAC. The success will not only improve Indonesia’s image and credibility in other international forums but also can be actively involved in influencing the setting of international standards

that impact on improving the marketing access of Indonesian food.

According to Ambassador Hasan Kleib, the involvement of Indonesia in the preparation of Codex standards is needed not only to improve the protection of consumer health but also to ensure the compliance with standards and regulations so that Indonesian food products can be accepted in international markets.

The competence of Prof. Purwiyatno as Vice Chairman will strengthen the function of the Codex Alimentarius Commission. His expertise in food engineering and his ability to negotiate with various parties will greatly assist the decision making. The election of Prof. Purwiyatno is also expected to push the stakeholders to improve the formulation of food quality standards in Indonesia. (KML/TPP)

August, 2017 | Vol. 7 No. 8 | A5

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INFRASTRUCTURE

Toll Road to Access Kertajati Airport under Design Process jurnalbandung.com

The development of Cileunyi-SumedangDawuan (Cisumdawu) toll road begins to reach the West Java International Airport (BIJB) Kertajati, Majalengka Regency.

PT Jasa Sarana is currently designing an access turnpike from Cisumdawu to Kertajati Airport.

The coordination has been done with the Toll Road Regulatory Agency (BPJT) of the Public Works and Public Housing (PUPR) Ministry, Lintas Marga Sedaya (LMS) as the operator of Cikampek-Palimanan Highway (Cipali), and consortium Citra Karya Jabar Tol (CKJT) as the developer of the Cisumdawu turnpike.

“At the same time, we also coordinate with Majalengka local government to determine the route of turnpike to the air-

Current Progress of TransSumatra Toll Road

port,” said President Director of PT Jasa Sarana, Mulyadi, in Bandung, on Wednesday (7/5).

Mulyadi added that the coordination with BPJT was done to decide whether the toll road should start from Cipali or Cisumdawu to get the Kertajati Airport. The coordination with the Majalengka local government was done to review the three points possible as the starting point of the turnpike.

“The coordination with CKJT is related to the financing the

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acquisition of some portion of land area, whether it would be prepared by the West Java Provincial Government with equity participation to Jasa Sarana or by the consortium,” he explained.

The Cisumdawu toll road is built as the main access to the Kertajati Airport which is targeted to commence operation by the end of 2018. Based on BPJT data as of April 2017, the development of Cisumdawu toll road shows quite encouraging

progress, especially the construction of section II connecting Tanjungsari and Sumedang which has reached 79.10%. In overall, the progress of the Cisumdawu turnpike development is now 21.8%.

“The land acquisition and the construction of section I and section II are entirely the responsibility of the government, while the section III, IV, V and VI are the consortium’s responsibility,” Mulyadi said.

Meanwhile, the land acquisi-

tion process continues to show improvement. Mulyadi said that the Cileunyi-Tanjungsari section of 14.7 km has reached 69.85%, the second section of 19.2 km Tanjungsari-Sumedang reaches 95.26%, the section III of 3.15 km SumedangCimalaka reaches 98.08 %, and the section IV of 8.2 km Cimalaka-Legok reaches 1.64%.

“The rest is still under process,” he added.

West Java Regional Secretary (Sekda) Iwa Karniwa said

he has applied to BPJT for the permit to construct the toll road to access the Kertajati Airport although a few number of residents in Majalengka Regency are still rejecting it. So, when there is no rejection anymore, the permit will be ready whenever needed.

“Later, the airport multimodal terminal will integrate the transportation services needed by the passengers as well as the logistics companies,” he said. (SND/TPP)

KRL of Bekasi-Cikarang May Operate Before 2019 wordpress.com

The Trans-Sumatera Highway has become one of the mainstay projects of the government in building inter-regional connectivity on the island. However, the 2,700-kilometer-long highway is less attractive to investors.

Minister of Public Works and Public Housing Basuki Hadimuljono mentioned the low minimum rate of return or internal rate of return (IRR) as the cause.

Then, how is the progress of the highway construction which is entrusted by the government to the state-owned PT Hutama Karya (Persero)?

When explaining the progress to the World Bank President Jim Yong Kim, Public Works and Public Housing Minister Basuki Hadimuljono said the 17-kilometer Medan-Binjai segment has reached 53.38 percent of construction. This segment requires an investment of around Rp1.6 trillion Meanwhile, for the 130-kilometer Pekanbaru-Dumai section, the construction works only reached 0.63 percent with a 40-year concession period and an investment of Rp16.2 trillion.

“This is technically far more difficult,” said Basuki in Jakarta, on Tuesday (7/25).

For the 22-kilometer Palembang-Simpang Indralaya segment, the toll road will cost Rp3.3 trillion. Currently the construction progress has reached 54.81 percent.

Meanwhile, for the 185 kilometer-long Terbanggi Besar-Pemanggi Panggang-Kayuagung section, its construction is targeted to complete in June 2018. The reason is that this toll road segment will be used to support the implementation of the 2018 Asian Games to be held in Jakarta and Palembang.

Finally, the current construction of Bakauheni-Terbanggi Besar segment has reached 35.49 percent of the length of 140 kilometers. The concession for this section is 40 years with the investment reaches Rp16.759 trillion. (KPS/TPP)

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“The construction is expected to be completed this year for the East Bekasi Station.

The Tambun, Cibitung, and Cikarang stations are already existed,” said Joice

The Ministry of Transportation (Kemenhub) is speeding the construction of new stations and the development of old stations to support the commuter line of Electric Passenger Train (KRL) to Cikarang.

Head of Public Relations of the Ministry’s Directorate General of Railways, Joice Hutajulu, said all the stations on the route will be equipped with an elevator, while the Cikarang Station will also be equipped

with an escalator.

“It is true that the Cikarang Station will be equipped with elevator and escalator. The facilities aim to be friendly for the handicapped,” said Joice on Friday (7/7).

He said there are 5 stations in the new KRL trajectory. Two of them are new namely East Bekasi Station and Telaga Murni Station.

The other 3 stations are already existed and will be developed to accommodate the

KRL as well as increasing the capacity of the passenger traffics.

“The construction is expected to be completed this year for the East Bekasi Station. The Tambun, Cibitung, and Cikarang stations are already existed,” said Joice.

As it is known, the KRL route from Bekasi to Cikarang will pass through 5 stations that include East Bekasi Station, Tambun Station, Cibitung Station, Telaga Murni

Station and Cikarang Station.

The target is that the KRL to the Cikarang can be fully operational by 2019.

The construction of stations, signal and electrical cables are conducted simultaneously with Double Double Track (DDT) railway scheme, so from Manggarai to Cikarang it will has 4 tracks. Hopefully, the DDT will make the movement of KRLs and longdistance trains can be done separately. (DTK/TPP)

41 Km Toll Road of Kualanamu-Sei Rampah Ready to Operate End of Year 2017 One segment of the TransSumatra Highway, MedanKualanamu-Tebing Tinggi, will be opened partially by the end of the year.

Head of Toll Road Regulatory Agency (BPJT) Herry Trisaputra Zuna said that the second section that connects Kualanamu to Sei Rampah with the length of 41.6 km will certainly be operational by the end of this year.

Currently the procurement of land for the highway, of which some sections were opened for the homecoming travelers during Lebaran (Eid al-Fitr) holiday, has reached

90.41% and the construction 86%. The progress of Sections II to VI is over 86%, while the Section 1 is still 12% and the Section VII is still in the land acquisition process.

“The Medan-KualanamuTebing Tinggi toll road this year will be operational for the section of two to six. The rest will be opened in 2018,” Herry told the media at his office on Friday (7/7).

Meanwhile, PUPR (Public Works and People’s Housing) Minister Basuki Hadimuljono said that after Lebaran 2017, he will continue to accelerate the completion of Trans Su-

matra Highway, one segment of which is the Medan-Kualanamu-Tebing Tinggi Toll Road with the length at 61.72 Km. During the Lebaran holiday, some sections of the toll road have been functioned for the travelers, namely the Section 2-6 starting from Kualanamu Airport to Sei Rampah with the length of 41.6 Km. “We will start accelerating the construction of emergency toll road, we boost again to support the Lebaran 2018 so the service can be much better,” Basuki said.

As it is known, the MedanKualanamu-Tebing Tinggi Toll

Road Concession (PPJT) was signed in January 2015. PT Jasa Marga Kualanamu Tol becomes the concession holder of the toll road, consisting of a consortium of four StateOwned Enterprises (SOEs), namely PT Jasa Marga, PT Pembangunan Perumahan, PT Waskita Karya and PT Hutama Karya.

The development of the highway gets financial support from the government to increase the feasibility level of its investment in the amount of Rp1.4 trillion from the State Budget for the construction of some part of the toll road. (DTK/TPP)

A6 | August, 2017 | Vol. 7 No. 8

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REGION bandung.co

On LRT and Cable Car Projects, Mayor of Bandung: Licensing Has Been Finalized Bandung Municipality continues work on the realization of Light Rail Transit (LRT) and Cable Car projects to solve the congestion problems in the city of Bandung.

Bandung Mayor Ridwan Kamil wrote on the Facebook page that he would soon start the construction of Cable Car and LRT. He also said that there would be a building for the parking lot with a capacity of 500 units of cars and 1000 units of motorcycles.

“The licensing is final. For the congestion reduction program, in the near future Insha Allah (God’s will) we will start with the ground breaking of the Cable Car as a public transporta-

tion between hills in Bandung,” he said.

“This work will take time about 9 months,” said the man who is familiarly called Kang Emil.

Ridwan Kamil also explained that based on Presidential Regulation (Perpres), the Cable Car project can be carried out with direct appointment for the contractor as long as it is full investment funding.

“This project will be done by PT Aditya, connecting Gelap Nyawang and Cihampelas,” he said.

For the early stage, 800 meters of a total of 42 kilometers will be built. “The system is prototyping, stretching from Gelap

Nyawang to Cihampelas, the length is about 800 meters,” he said.

The investment fund needed to build the Cable Car, according to Ridwan Kamil, will be fully covered by PT Aditya, but he declined to say the exact amount of the fund needed to develop the modern public transportation.

“The funding is from them, I think they have counted in how many years they will get breakeven point.

For the prototype, the Government Procurement of Goods and Services Agency (LKPP) allows the direct appointment. But for the next routes, there will be a tender so they have to bid,” he concluded. (SIN/TPP)

About Controversy of Baturraden Geothermal Power Plant, Ganjar: Let’s Have Nuclear One, Shall We! energitoday.com

Ganjar Pranowo Central Java Governor

Central Java Governor Ganjar Pranowo has said geothermal is clean energy for the power plants but most of the people still need to be educated about the benefits of the energy.

“Talk to the environmentalists, ask them what is clean environment? Should we have nuclear power plant instead, ask the

environmental activists to talk about it,” he told reporters after the commemoration of World Environment Day, Central Java level, at the Baturraden Botanical Garden, Banyumas Regency, on Wednesday (7/19).

What Ganjar said was related to the rejection of some elements of society against the construc-

tion of Geothermal Power Plant (PLTPB) Baturraden on the slope of Mount Slamet.

“If we do not want to use the geothermal energy, how if to use nuclear instead? I believe the answer will be no, fearsome,” he said.

He added that currently no one wants to use fossil fuels to

Aher Calls on AP II to Accelerate Cooperation on Kertajati Airport Management West Java Governor Ahmad Heryawan (Aher) said his meeting with PT Angkasa Pura II President Director Muhammad Awaluddin last weekend aimed to ask PT Angkasa Pura II to accelerate the cooperation with PT West Java International Airport (BIJB) in managing the Kertajati Airport in Majalengka.

“In terms of funding it has been relatively safe, the (meeting) was done to start planning on the management system from now on,” said Ahmad Heryawan in Bandung, on Monday, (7/24).

He asked AP II and BIJB to immediately sign the cooperation so that all parties would be at ease. “The shareholders, the investors and the airlines will be feeling secure,” he said.

Aher said that he deliberately pushed the two state-owned companies (SOEs) to seal the deal. “If it’s hard, there is a philosophy of West Java, the stones are down and the sand is up. If the stones will not go down and the sand is not going up, they will never meet.”

He refused to say in detail why AP II and BIJB have yet to reach an agreement still. “AP II is an SOE, so it’s reasonable to have a business calculation.” However, since the SOEs, either national (AP II) or regional (BIJB) are family and their orientation is not just business, hope-

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fully they can reach the agreement soon,” Aher said, adding he believed the weekend meeting would speed up the agreement between AP II and BIJB on the cooperation in managing the Kertajati Airport.

According to Aher, PT BIJB will continue to carry out the financing plan following the transfer of loans from the syndication of 7 regional sharia development banks (BPD) led by Sharia Bank of Central Java amounting to Rp906 billion. “Currently is also being processed the RDPT (Limited Placement Fund) of the insurance money of BPJS Employment and PT Taspen to make them become shareholders. The conventional banks also want to invest their funds in this airport,” he said.

Director of PT BIJB Virda Di-

mas Ekaputra confirmed the meeting was discussing the acceleration of signing the cooperation agreement on the management of Kertajati Airport. “The results of the meeting will be followed up with technical matters,” he said.

Virda declined to explain the technical detail in the agreement. “The technical matters are still under discussion including the form of cooperation in accordance with the regulation.”

According to Virda, until now the development is underway.

The physical development on the land side has reached 50 percent. BIBJ has started to withdraw the loans from the syndicate of the 7 BPD Syariah. “We have withdrawn Rp250 billion of (total loan) Rp906 billion,” he said. (TMP/TPP)

generate electricity. In fact, the use of coal for the Batang Power Plant (PLTU) has also been protested.

“When I was called by the president to speak of strategic development in Central Java, there was an interesting but healthy debate between Pak Jonan (Minister of Mineral and Energy Re-

sources) and Ibu Sri Mulyani (Minister of Finance),” he said.

According to him, Finance Minister Sri Mulyani proposed that the world economy should move to green energy and she gave an example of geothermal in Iceland.

Sri Mulyani said the Iceland went bankrupt and the geothermal energy has been helping the country to recover.

“Now it’s up to you, the important thing now is not whether the permit should be revoked or not. Let’s get knowledge about this energy. We need energy and we have the resource, what we’re going to do about it,” said Ganjar.

Therefore, he asked all parties, especially those who reject the development of PLTPB Baturraden to learn more about the energy.

Separately Assistant for Economic and Development Affairs of Banyumas Regional Secretary Didi Rudwiyanto said that the Law No. 21 of 2014 on Geothermal, the business on mining and geothermal are separated after

kendalkab.go.id

Kendal Regent Urges Entrepreneurs to Improve Selling Point of Local Products

Kendal Regent dr. Mirna Annisa, M.Si on the sidelines of a 3-day Regional Superior Product Festival (July 21-23) in Kendal Town Square said on Friday (21/7) that the government should be able to encourage and promote the regional superior products to help people earn more properly.

According to her, the Kendal Regency Government has been trying to promote many products of typical Kendal, such as through the tourist festival in Rawa Kali Blandon. “This year we are looking for many other locations to hold the similar activities to raise the awareness of Kendal typical products so that other regions can enjoy them or even for exports,” said Regent Mirna.

Meanwhile, Head of Industry, Cooperatives, Small

previously in one division.

According to him, the separation is done because geothermal usually located in the protected forest areas banned for mining activities.

“The core of the earth is like a kettle and there is water coming in. The stones are hot due to the exposure to the magma and generate steam. What will be taken is the steam, so do not worry that Guci (Tegal) and Baturraden will lack of water,” said Didi who studied geology.

He added that the message in the Law No. 21 of 2014 has not reached the public for the government has yet to socialize the law in the people’s language instead of the legal one. Some members of the community think the development of PLTPB Baturraden would end like the Lapindo drilling.

“We do not look for oil, nor gas but steam in the frozen rocks at a depth of 2,500-3000 meters. The drilling can be done in a sloping position which is allowed in a protected forest with the area specified,” he said.

The Baturraden PLTPB development project on the slopes of Mount Slamet has been criticized by several elements of society for fear to damaging the environment, especially the preserved forest.

Hundreds of people who joined in the Alliance to Save Slamet held a rally in the Pendopo Si Panji Banyumas Regency on Tuesday (18/7) to reject the construction of PLTPB Baturraden.

(RLS/TPP)

and Medium Enterprises Department, Setiyono, SH said that what exhibited and presented to the visitors this time are the original products of Kendal Regency with high competitiveness and even some have been exported such as the stevia leaf tea which has been exported to Japan.

The purpose of the festival, Setiyono said, was to increase the competitiveness of products made in Kendal Regency. The festival will be held annually and expanded as well.

He added that there are quite a lot of original products of Kendal Regency favored by buy-

ers especially Kendal batik and traditional snacks and drinks not found in other regions.

The participants of the festival were the representatives of MSMEs in 20 sub-districts, the MSME Kendal forum, the MSME Kendal community and home industry in Kendal Regency. The products on display were food, drink, and handicrafts.

The festival is open to public from 8 am to 8 pm with various supporting activities such as snack bazaar, competition on foods and handicrafts and the process of making batik. (KENDALKAB/TPP)

August, 2017 | Vol. 7 No. 8 | A7

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TOURISM

Tourism Minister Seriously Develops Singosari as SEZ

vacationbaliindonesia.com

Tourism Minister of the Republic of Indonesia Arief Yahya seems seriously to make Singosari, Malang, as a Special Economic Zone (SEZ) for Tourism. The plan was presented

by Arief when launching ‘The Heart of East Java’ in Jakarta last May 2017. He also attended the Movement of Tourism Awareness Action and Sapta Pesona (Eight Charms) Action, a new breakthrough in a bid to develop Singosari as a SEZ on Thursday (7/27).

Tourism, according to Arief, is the largest foreign exchange earner after oil and gas. Currently, the condition of tourist destinations in Indonesia is much improving. He said, there are three keys to successfully develop sustainable tourism, namely empowering the community, building the environment, and shaping the econ-

omy, known as 3P (People, Planet, Profit).

“In the development of tourism, the developers must prepare the community first, because the community is the first to enjoy the development of tourism,” he explained.

Furthermore, Arief added, the number of foreign tourists in each year continues to in-

Arief Yahya Minister Tourism Indonesia

crease, from about 9 million people in 2014 to become 10.4 million people in 2015 and rose to 12 million people in 2016.

“Millions of foreign tourists coming to Indonesia who generate US$180 million in foreign exchange,” he said.

Regional Secretary of Malang Regency, Abdul Malik, said the tourism potential

in the region is divided into 3 clusters, namely the adventure, agropolitan, and agribusiness.

Related to the proposal of Singosari Tourism Special Economic Zone (SEZ), Malang Regency has seven priorities that have been completed and ready to be submitted to the Coordinating Ministry for Economic Affairs. (MDK/TPP)

Project of Toll Road to Access Tanjung Lesung Special Economic Zone (SEZ) to Commence

accorhotels.com

banten.go.id

AccorHotels Group to Help Kemenpar by Adding 1,500 Hotel Rooms in Indonesia The land acquisition for the 84-km Serang-Panimbang toll road will cost Rp1 trillion. Hudaya said the bailout fund prepared by PT Wika to acquire the land in Serang amounted to Rp270 billion.

The project of Serang-Panimbang toll road to access the Tanjung Lesung will start with the groundbreaking in October 2017. However, the exact date of the groundbreaking is still under consultation with President Joko Widodo (Jokowi).

The groundbreaking ceremony would be held in Serang, said Head of the Regional Development Planning Agency (Bappeda) Banten Hudaya Latuconsina after meeting with Head of the Regional Officers Organization (OPD) partner of Asda II Banten in the hall of Bappeda Banten on Monday (17/7).

The meeting was attended by officials from BPN Serang Regency, Serang Regency Public Works Office, Serang Regency Housing and Human Settlement Office, consultant team of PT Wika as the winning bidder, Banten Provincial Government, Bappeda,

Banten Public Works Office and Transportation Office. According to Hudaya, the progress of the Serang-Panimbang toll road project is quite good.

The coordination among the parties involved is good too, he said, but some obstacles are still there making some targets missed to achieve. There are several problems that must be resolved in July related to the land inventory in 16 villages in Serang Regency and Serang City which will be prioritized for the development of the first 10 km of the toll road, Hudaya added.

The inventory will be completed in two weeks then an analysis will be made and submitted to the Ministry of Public Works and Public Housing. It is expected that in mid-August the payments will be made for at least the first 6 km.

The physical development pro-

cess will begin this year. For the first phase, the construction will be conducted along 10 km with the first tollgate at Cikeusal, Serang Regency. The whole turnpike is expected to be completed by 2019.

The land acquisition for the 84-km Serang-Panimbang toll road will cost Rp1 trillion. Hudaya said the bailout fund prepared

by PT Wika to acquire the land in Serang amounted to Rp270 billion.

The fund is ready, but the payment is pending for the inventory completion especially in Serang Regency. “This is interesting, the money is there but cannot be used to pay,” said Hudaya. Inventory and identification need to be done as a reference for the appraisal team in determining the price of the land.

Without the inventory data, the price of the land per meter cannot

be set. Pandeglang Regent Irna Narulita said, the Serang-Pandeglang toll road is already ongoing. The winner of the tender, PT Wika, is currently performing the measurement process.

The most important thing, according to her, is preventing any party from trying to thwart the development, because the ones to suffer will be the Banten community itself.

The fastest possible way to boost the tourism is building the toll road then after that, the development of an airport and reactivate the railway.

“We are in the spirit of measuring again the houses built on the land belonging to the stateowned train company PJKA. We will then socialize to the inhabitants who have been using the PJKA land for 30 years the importance of them to move out,” said Irna. (INDRY/TPP)

Australia Ready to Finance Development of 10 Destinations of New Bali Australian Ambassador to Indonesia Paul Grigson has emphasized the Australian Government’s commitment to help improve tourism in Indonesia. The commitment was raised after discussing with Indonesian Coordinating Minister for Maritime Affairs, Luhut Pandjaitan, in Jakarta on Monday (17/7).

He announced that Australia would provide funds through the World Bank to help develop 10 destinations of New Bali.

“We were talking primarily about tourism and masterplan that we support through the World Bank to help Indonesia with its tourism plans,” Grigson said after the meeting.

“We also discussed about how we can work with Indonesia in developing the 10 destinations of New Bali planned

by President Joko Widodo,” he added.

Based on a draft document of the World Bank, Indonesia is seeking a US$180 million loan to develop three destinations to become new tourism hotspots and an additional US$570 million from the World Bank.

The three tourist destinations are Lake Toba in North Sumatra, Lombok in West Nusa Tenggara, and Borobudur temple site in Yogyakarta, Central Java.

According to World Bank document, the Government of Indonesia has decided to

change Indonesia’s economy by using tourism as one of the key growth drivers.

As reported by ABC News, the document does not state how much the fund would be provided by the Australian Government.

It said the Indonesian Government wants to increase international tourist arrivals from 9 million to 20 million between 2014 and 2019 and increase the tourism contribution to GDP from 4 percent to 20 percent of in the same period.

However, the document says there are four major obstacles to achieve the target, namely poor infrastructure and services, limited tourism work-

Tourist destinations cannot be separated from accommodation. AccorHotels Group will help the Tourism Ministry (Kemenpar) in boosting the tourism by building 1,500 additional hotel rooms in Indonesia.

That is stated in the MoU addendum between Kemenpar and AccorHotels signed in the Sapta Pesona Building, Jl Medan Merdeka Barat, on Friday (7/14). The MoU was signed by Secretary General of Kemenpar Ukus Kuswara and COO of AccorHotels Indonesia, Malaysia, Singapore, Garth Simmons, witnessed by Tourism Minister Arief Yahya.

AccorHotels manages the ibis Budget, ibis, ibis Style, Mercure, Novotel, Grand Mercure, Swissotel, Pullman, M Gallery, Fairmont, Sofitel and Raffles. They already have 22,800 rooms now in 114 hotels in Indonesia.

“AccorHotels is the largest hotel chain in Indonesia. Last year they committed to build 1,000 new rooms and the realization was 1,338 rooms. Now they will add 1,500 more rooms,” said Minister Arief Yahya.

According to Arief, his

ministry has intended to double the tourist arrivals, so this will be in line the AccorHotels group plan to add the hotel rooms. He said Indonesian tourism grows 20 percent, therefore the hotel should also dare to grow 20 percent.

“Do not grow under the market. If it grows below 20 percent, then it is under the market,” Arief added.

What is the tradeoff? According to Arief, AccorHotels will assist the promotion of Indonesian tourism in its website. The AccorHotels website is available in 17 languages and visited by 27 million people per month.

“Wonderful Indonesia will be promoted on their website,” said the minister.

AccorHotels COO Garth Simmons said he was pleased with the Indonesian government’s commitment to boost the tourism. Bali has selected as the 2017 world number one destination by TripAdvisor and Indonesia is in the top 3 destinations for Muslim tourists.

“This is the outcome of the joint effort of Indonesian tourism promotion. We are pleased with the government’s commitment to bring in many more foreign tourists to Indonesia,” Garth said. (DTK/TPP)

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force, a weak environment for private investment, and weak government institutions.

It also notes the importance of potential environmental and social impacts related to development and issues such as transmigration and planning for indigenous peoples.

The Indonesian government also planned to develop Tanjung Lesung in Banten, Thousand Islands in Jakarta, and Tanjung Kelayan in Belitung to become destinations of New Bali.

The World Bank also noted to achieve a success like in Bali, big investments in new infrastructure including airports, toll roads and ports are needed. (ABC/TPP)

BUSINESS August, 2017 | Vol. 7 No. 8 | THE PRESIDENT POST

LOGISTICS

EDUCATION

Logistics Costs Down, Driven by Deregulation and Infrastructure

President University Students Wins IECA 2017 as Youngest Champion Ever

Twitter: @President_Post Facebook: The President Post www.thepresidentpost.com

TRAVEL

Awesome! 20 Most Exotic National Parks in Indonesia

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Turkey and PAL to Build 4 Vessel Power Plants Karpowership, as a manufacturer of marine vessel power plants from Turkey, has signed a cooperation agreement with PT PAL (Persero) for the construction of 4 power generating vessels. This step is taken as part of the effort to realize the plan to add 5000 MW more electricity.

Karpowership, the sole owner and operator of the world’s largest vessel power plant, and PAL as a leading shipping company in Indonesia, have strengthened the cooperation.

The signing of the agreement was witnessed by Turkish Foreign Affairs Minister Nihat Zeybekci and Trade Minister of the Republic of Indonesia Enggartiasto Lukita during the visit of President Joko Widodo (Jokowi) to Ankara, Turkey on Friday (7/7).

The two companies signed a strategic cooperation agreement on the construction of the

first 4 Indonesian power generating vessels in the Indonesian shipyard. PAL President Director Budiman Saleh and Karpowership President Director Orhan Remzi Karadeniz signed the agreement.

In October 2016, a MoU was signed by PT PAL as an initial form of cooperation in identifying and monitoring opportunities related to electricity demand in Indonesia. The MoU is a means for both sides to jointly build and collaborate on the technology transfers while inserting the local values of Indonesia in the construction of the

vessel power plants.

“What will be made are completely new for Indonesia,” Budiman said.

Under this agreement, PT PAL will build 4 units of Indonesian power generating vessels of Mermaid class with the capacity of between 36 and 80 MW for supplying electricity in various islands across the Indonesian archipelago. With this strategic partnership, Karpowership will expand its operations in Indonesia, which to date Karpowership has successfully installed 845 MW of electricity in Indonesia. (DTK/TPP)

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To Become City of the Future, Three Townships in Cikarang Will Be Connected jababeka

The infrastructure will develop the city rapidly given the townships of Lippo, Delta Mas, and Jababeka become connected with a population of millions of people

Cikarang in Bekasi will become an integrated city and is most ready to be developed on a massive scale. The planned construction of the Cikampek 2 toll road, the Jakarta-Bandung highway, double double track, and the commuter line extension up to Cikarang will make Cikarang a city of the future.

The infrastructure will develop the city rapidly given the townships of Lippo, Delta Mas, and Jababeka become connected with a population of millions of people, said GM Corporate Marketing PT Grahabuana Cikarang (Jababeka Group) Handoyo Lim, in Jakarta, on Tuesday (7/18).

The three townships, Handoyo added, will be integrated with new transportation system of automated people mover by Jababeka. This transportation mode will connect the stations and terminals with feeder buses from/ to Jakarta and Bandung. The transportation modes within the estate will also be inter-connected.

Many say that Cikarang is like Serpong, Tangerang, a decade ago which then developed very rapidly. Handoyo said he is optimistic the property boom will occur in this area. Even currently when other estates experiencing a sharp drop in the

sales, the performance of the three townships in Cikarang remains good. This is also due to government support through the Direct Construction Investment Service (KLIK) program launched by the Investment Coordinating Board (BKPM).

This program enlarges the market due to the increased number of employees. The KLIK program will make the investors able to accelerate the operation of their factories, because they can build the factories even when some permits are still under process. (INDRY/TPP)

Facebook Also Wants to Build Township As a provider of social media, Facebook has successfully established an online community with 2 billion followers worldwide. Now the company mastered and founded by Mark Zuckerberg turns to the real world.

Facebook plans to build a township covering housing, offices, shops, and hotels. And this is not just an empty talk because it has been summarized into a big project.

Recently the project was disclosed that Facebook is set to develop an area in the Menlo Park, California, United States, adjacent to its headquarters. The 56

hectares of land area have been purchased since 2015 ago at US$400 million.

In this area, 1,500 units of houses will be constructed.

Anyone can own the houses, not just the Facebook employees, with the 15% of the products will be sold cheaper than the market price.

“We are also planning to build a new retail area of 125,000 square feet, including the grocery stores, pharmacies, and other community retailers,” Facebook was quoted as saying on Sunday (7/9).

According to a source has been helping build this proj-

ect, it would take a decade to change the empty land to become alive.

Indeed, the development of this urban area will be done gradually. The initial phase, housing and supporting shops, is planned to be completed by 2021. And it will continue.

The Silicon Valley is known to experience housing problems because of the very expensive price due to the high number of technology companies are concentrated there. Not only the local residents, even highpaid employees sometimes have to think twice before buying a property there. (DTK/TPP)

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| August, 2017 | Vol. 7 No. 8

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BUSINESS

Vietnam Airlines Operates at Terminal 3 of Soetta

pt. inka

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Bangladesh Attracted to Train Made in Madiun, Here is the Reason Why Vietnam Airlines moved its operations to the terminal 3 ultimate Soekarno Hatta Airport (Soetta) on Wednesday (7/12).

The Vietnam Airlines officially moved to the Terminal 3 with its routes of Jakarta-Hanoi and Jakarta-Ho Chi Minh using the Airbus 320 NG wide-body aircrafts.

Senior Manager of SoekarnoHatta International Airport M Suriawan Wakan said that one of the goals of the Skyteam international airline to move from the Terminal 2 to the Terminal 3 is to reduce the density of passengers.

“We have optimized the facilities and infrastructure at the Terminal 3. Both the services and facilities whether on the airside and on the landside have been prepared,” said Wakan, Jakarta, Tuesday (7/11).

As it is known, the Garuda international flights through the Terminal 3 until now have been running smoothly and considered successful. “This is in line with our roadmap. The Skyteam’s operation switch to the Terminal 3 runs smoothly and successfully,” he said.

According to him, the International Terminal 3 is equipped with digital facilities such as baggage handling system (BHS) and flight information display system (FIDS) with the most modern technology. It is also supported with smartphone applications that can facilitate the passengers or airport visitors looking for parking locations, booking a parking garage, making a taxi

reservation, checking the flight schedules, and so forth.

To make the operation running smoothly, the Terminal 3 is also equipped with 64 immigration counters, consisting of 32 immigration counters on departure and arrival sections each.

Additionally there are also a total of 32 immigration autogates, of which 15 immigration autogates on the departure section and 17 autogates on the arrival.

“We have also implemented the common use of check-in counter system which has also been applied to the best airports in the world,” Suriawan said.

At the security check point, before entering the immigration area, there are 12 x-ray units

and two body scanner units which will add up to six units to support the security and safety in the terminal and the aircrafts.

To support the operation, Soekarno-Hatta International Airport has completed various supporting facilities already allocated in the Terminal 3, such as the check-in counters, free wifi, free internet booths, free charging booths, contact stands, and ground support system (GSS), while in the near future there will be self check-in facilities.

Following Vietnam Arilines will be some other airlines to operate in the Terminal 3 in the near future, including Korean Air and Xiamen Air. (FAKHRI/ TPP)

Bangladesh, one of the countries in South Asia region, has been interested in the train produced by PT INKA (Persero). This year, the state-owned train manufacturer based in Madiun, East Java, has won the tender of 50 units of BG or Broad Gauge economy class passenger train.

Furthermore INKA will also take part in the tender of 200 units of economy class passenger train of MG or Meter Gauge type this year. INKA is optimistic to win this tender, because this is not the first time supplying trains to Bangladesh.

Previously, INKA won the tender for the procurement of 150 passenger trains. A total of 150 passenger trains consist of 100 units of MG (Meter Gauge) type and 50 units of BG (Broad Gauge) type which were sent to Bangladesh in November 2016.

In 2012, INKA also sent

50 units of economy train ordered by Bangladesh. So, why is Bangladesh so attracted to the trains made in Madiun?

“First, the quality of our products that have been shipped to Bangladesh is guaranteed and different from those in there,” said Senior Manager of PR Protocol and PKBL of PT INKA, M. Choliq, recently.

Second, in terms of price and specifications, INKA’s train products are more competitive than the manufacturers from other countries.

Third, INKA provides postsale services by opening a representative office in Bangladesh.

“We have the office in Bangladesh to back up the operation of the trains once delivered, by providing spare parts and maintenance personnel. The trains also still have a warranty for a year,” added Choliq. (DTK/TPP)

August, 2017 | Vol. 7 No. 8 |

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B3

LOGISTICS

To Encourage Logistics Flows Through the Sea, Kemenhub Prepares 6 Ferries This Year dephub.go.id

To reduce the dense traffic of people and goods overland, the Ministry of Transportation (Kemenhub) encourages the logistics traffics by the sea.

The concept of long distance ferry (LDF) is born and will be maximized. Even if necessary, the ministry will provide incentives.

“This year the Minister (of Transportation) wants at least 6 ships to operate for JakartaSurabaya and Jakarta-Semarang routes,” said Director of Transport and Multimode of Kemenhub Cucu Mulyana during the discussion of “Towards Comfortable Flow of People and Logistics during Lebaran”, in Jakarta (28/7).

Cucu said, regarding benefits, if the government can shift the overland traffics to over the sea it will create a huge efficiency, given dense traffics on the roads waste lot of time and fuel.

“That is why we are developing the LDF,” said Cucu. “Currently we operate one ferry, hopefully next month one more.”

The LDF concept, added Cucu, coincided with the operation of

weighbridge/truck scale stations just now. When the weighbridge station is fully operational, Kemenhub will apply zero tolerance to excess dimensions and weight.

The strict rules, he said, is expected to encourage the vehicles carrying goods to use the ferries.

In the early stages of applying this concept, Cucu said he hoped that the logistics traffics which transfer from land to sea would reach at least 20 percent.

“We don’t expect to much, at least 20 percent at first. If in one day about 12,000 logistics vehicles running from Jakarta to Surabaya, taking 20 percent of them is already significant (in reducing the density),” said Cucu.

However, he admitted it would not as easy as turning the palm of the hand to make the logistics vehicles leave the road and board on the ferry.

In Indonesia, there is no national logistics system over sea, land or air. The blue print has

indeed been created, but not yet operational so that automatically the logistics costs are higher.

According to Cucu, the cost of a one-time logistics trip is equal to paying a round-trip fee.

“For example, the logistics from Jakarta to Surabaya. After the goods are delivered in Surabaya, most of the time the truck return empty. The company still have to pay the returning empty truck,” he added.

This makes the logistics transportation in Indonesia inefficient, although the real problem is the absent of the national logistics system.

Kemenhub with the House of Representatives is also drawing up a regulation on the national transportation system.

“Because right now it is for sub-sector such as the Law on DLLAJ and Railway. Later the rules on the movement of people and goods must be realized,” Cucu concluded. (KPS/TPP)

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Two SOE Subsidiaries in Synergy to Support Logistics Business Acceleration PT EDI Indonesia, a subsidiary of PT Pelindo II (Persero) engaged in e-Business Provider, and PT Berdikari Logistik Indonesia, a subsidiary of PT Berdirikari (Persero), have cooperated to develop business and application systems to expedite the logistics business processes.

The cooperation is sealed in the Memorandum of Understanding (MoU) signed by both parties on Monday (8/7) at PT EDI Indonesia Headquarters in Jakarta.

PT EDII President Director E Helmi Wantono said for the initial phase, the cooperation will be implemented in the e-Seal application used to secure the transportation of goods from the port to PT Berdikari’s Tem-

porary Storage Area (TPS). Additionally, the e-Seal application will be implemented as well in the non-port domestic transportations.

According to him, this cooperation is very important to cater to demand for faster and more efficient business processes to reduce the logistics costs; so integrated services are needed.

“As a subsidiary of stateowned enterprise, EDII will continue to cooperate with fellow companies in the SOEs circle to realize the synergy programs among the parent companies or subsidiaries,” he said on Monday (8/7).

Besides the e-Seal, the next program to be implemented is SCM and e-Commerce applica-

tions to speed up the transaction and business process.

“The SCM application to be implemented is Supply Chain Management application to support the logistic process while the e-Commerce application to be implemented is digital commerce application which also includes the transaction in logistics businesses,” he said.

President Director of PT Berdikari Logistik Indonesia, Agus Subrata, said that as a company engaged in logistics, temporary storage area (TPS), land transportation services, warehousing and inter-island services, Berdikari believes the cooperation will improve the services to the customers of both parties. (INB/TPP)

CKB Logistics

mediaindonesia.com

To Support Domestic Industry, CKB Logistics Offers Integrated Transportation and Logistics Solution As an Integrated Logistics Provider, PT Cipta Krida Bahari (CKB Logistics) has a long track record and experience in the industry.

In addition to the latest technology in warehouse inventory, the company is also certified AEO (Authorized Economic Operator) as a company that has met the standards of security, management system as well as propriety and compliance in the international logistics market.

President Director of CKB Logistics Iman Sjafei said CKB Logistics offers total logistics solution with focus on supporting oil & gas, mining, construction, telecommunication, retail

and e-commerce industries.

Through this service concept, CKB Logistics expects its customers to get the optimum level of logistics efficiency.

“Logistics is one of the highcost business chains. With the strategy developed by our company, the business players will be able to cut their logistics costs to increase their business competitiveness,” he said at the inauguration of Bonded Logistics Center (PLB) in Sorong, West Papua, on Thursday (20/7).

Since obtaining the license as a manager of Bonded Logistics Center (PLB) in 2016 currently CKB Logistics has man-

aged PLB of 74,000 m2 in 4 locations. CKB Logistics has targeted to build and operate PLB with the size of area up to 300,000 m² spreading in various regions in Indonesia until 2020.

“As a private company entrusted to manage Bonded Logistics Center in Indonesia, we continue to strive to become the best PLB operator, so that the customer loyalty can be maintained. The CKB Logistics will also continue to take the initiative to optimize the economic opportunities and encourage efficiency in the national logistics industry,” Iman added.

(INDRY/TPP)

Deregulation and development of infrastructure to support the logistics sector started to show results.

Indonesia’s logistics costs began to decrease in the last five years.

The results of research by the Indonesian Logistics and Forwarders Association (ALFI) show that the ratio of logistics costs to gross domestic product (GDP) fell by 2.2 points from 25.7% in 2013 to 23.5% in 2017.

Chairman of the DPP ALFI Yukki Nugrahawan Hanafi

said the harmonization of government regulations and infrastructure development began to show results.

“We at ALFI call it logistics reform,” he told Bisnis in Jakarta, on Monday (7/24).

According to him, the government’s decision to cut the overlapping and discourage investment rules has made the business climate more thrive.

Meanwhile, the infrastructure development such as toll roads, railways, new ports and airports has caused deliveries of goods faster and more efficient.

Logistics Costs Down, Driven

by Deregulation and Infrastructure Additionally, the government’s decision to encourage the development of bonded logistics centers (PLB) is also considered to contribute greatly to the reduction of logistics costs.

With the bonded logistics centers, the manufacturing companies do not need to import or take the goods from abroad because they can do it at the local bonded warehouse.

The government’s attention to improving the regulation on the logistics sector is seen in the policy packages issued. Until 2017 the government has issued 15 packages of economic policy.

At least 5 packages include some points on logistics. First, the incentive of facility in the bonded logistics center in the policy package II. Second, the upgrading of the rural-urban logistics sector is contained in the policy package IX. Third, the dock and dwelling time procedure in the policy package XI. Fourth, the roadmap of electronic based commerce or ecommerce in the policy package XIV. The fifth is about the logistics services listed in the policy package XV. (INB/TPP)

B4 | August, 2017 | Vol. 7 No. 8

www.thepresidentpost.com

EDUCATION president.ac.id

President University Students Wins IECA 2017 as Youngest Champion Ever president.ac.id

Along the history of Industrial Engineering Competition (IECA), only this year it gave birth to the youngest champion. They are Tantyo Edo Wicaksana, Kelvin and Jessica Meilina, the students of Industrial Engineering President University of 2015 class who managed to win the second place. The three joined in the team of Nine Values-President University, just lost to ITB who holds the title of defending champion while managed to beat the University of Indonesia (UI).

The annual event was held by Atma Jaya Industrial Engineering Student Association and this time with the theme of “Value Your Consumer, Lead The Market” which attracted 41 teams from various universities in Indonesia to participate. The competition began with online selection from 5 to 9 June 2017, then semifinal 11 - 12 July 2017 and the final 13 - 14 July 2017.

“Out of the 41 teams, 15 man-

aged to go to the semi-final, and we are among the top five who qualified for the final. The final round opened with the visit of the finalist teams to PT Astra Honda Motor (AHM) in Cikarang.

We conducted a case study given

by PT AHM Cikarang on the optimum stock level analysis. Then we delivered the presentation in front of the judges, where 2 of the 3 judges came from PT AHM, so we were very challenged,” said Edo who was born in Jakarta 20 years ago.

The achievement as the Runner Up for Edo was remarkable, given he used to manage until only the preliminary round in the previous competitions.

Even Kelvin and Jessica participated in such a competition for the first time. “This achievement is thanking to the support of seniors who provide materials turned out to be asked during the competition. Also Prodi (study program department) who

always encourage us and help prepare the presentation,” said Kelvin expressing his thanks to Head of Industrial Engineering study program Andira Taslim, and the lecturers such as Anastasia Lidya Maukar and Sir Johan Runtuk.

Kelvin, born in Singkawang in 1998, acknowledged the IECA 2017 competition this time was very tough, agreed by Edo and Jessica. According to them, in addition to many participants from leading universities, the difference between scores was very little. “Moreover, we come from the 2015 class where many of the materials have not been lectured. So we really did not expect to win the second place.

Even more, during the competition we were still preoccupied with study, while other universities were in holiday,” said Jessica, a graduate of Santa Ursula high school BSD Tangerang.

Jessica is an active student

of the President University. The girl, who was born in Jakarta 20 years ago, was active in the Academic Division of President University Major Association Industrial Engineering 2016, Vice Chairperson of Ashokavardhana Buddhist Student Family President University 2016, PR of Ashokavardhana Buddhist Student Family President University 2017 and Head of Violin 2 President University Orchestra 2017.

“The reason I choose the Department of Industrial Engineering because President University is located in the industrial estate, so it has a good curriculum for this department. Moreover, President University has a good internship system and uses English as the language instruction,” said Jessica, whose motto of life quoting Richter Abend’s words: “Courage is the magic that turns dreams into reality”.

It is not the case with Edo who is not active in any organization,

but frequently joined in the committee of the campus events. The graduate of SMA Negeri 1 Singaraja Bali chose the President University because it offers a fantastic scholarship program accompanied by programs leading to the great opportunities to get the job and go abroad.

Meanwhile Kelvin is quite active in the campus. The graduate of St. Ignatius high school Singkawang is active in the organization of President University Student Council (2018 student senate) as member of Commissions 2 Campus Facilities. He participated in the Mr. and Ms. President University 2016, and was involved in Merry Riana Corporate Ambassador 2017.

“The first reason for choosing the President University is because I get a full scholarship, then the learning system that uses English and its environment with multinational students,” said Kelvin. (TCP/TPP)

president.ac.id

Sidarto Danusubroto Expects President University to Help Improve the Quality of Higher Education in Indonesia President University (PresUniv) held its 12th graduation ceremony at the Jababeka Convention Center, Cikarang, on Saturday (7/22). Attending the event were S.D. Darmono (Founder of President University and Jababeka Group), Prof. Dr. Uman Suherman, USA., M.Pd (Coordinator of Private Higher Education (Kopertis) Region IV), Sidarto Danusubroto (Member of Presidential Advisory Council), Dr. Scott Younger, ODE, FICE (International Chancellor of President University), and Jony Oktavian Haryanto, SE., M.M., M.A (Rector of President University).

The event was opened by Dr. Jony Oktavian Haryanto and continued with scientific speech

by Sidarto Danusubroto.

In his speech titled ‘Pancasila, Young Generation, and World Class Higher Education’, Sidarto said that the diversity of the Indonesian nation is a unique and rich thing. Diversity in Indonesia is USP (Unique Selling Proposition), a uniqueness with high selling value. This differentiation becomes an important capital to build this great nation.

The Indonesian nation should

redevelop the Pancasila as the living values and national identity.

This nation is not enough to just give birth to a young intelligent generation but should also be rooted with a solid nationalist spirit. The statistics show that fewer than 50% of successful students go to higher education. Meanwhile, in 2014, there were about 36,000 of more than 4 million Indonesian students studying abroad. We need colleges with high quality and world-class that will attract foreign students to come and study in Indonesia.

The international standard education system becomes the determinant factor of whether the Indonesian universities can compete or not in the international arena. According to Sidarto, the basic factors of internationalization that need to be improved by the universities are human resources, collaborative researches, and infrastructure. Additionally, he also added three basic strategies of college internationalization, namely: internal consolidation, horizontalism, and global collaboration.

“I hope that President Uni-

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versity has a high commitment to contribute in improving the quality of higher education in Indonesia in a bid to win the competition at the world level,” Sidarto concluded his speech.

The speech was followed by the performances of Plate Dance and Jasmine Dance, Javanese music instrumental Gamelan, Orchestra, and Choir by the President University students which enlivened the graduation ceremony. Three graduates also sang a song dedicated to their fellow graduates, parents, and all audience.

This year the President University graduated 789 students consisting of graduate and postgraduate degree, of which 65 graduates are foreigners. This is the highest number of graduates so far.

“I hope all the graduates will play a significant role in improving the people’s welfare, always relevant, and come up with a solution for their environment,” Erwin said.

Beside graduation, President University also celebrated its 15th anniversary on the same day. The President University presented a shadow puppet

show titled “Bima Sakti” (Powerful Bima) to celebrate its anniversary which fell in April.

The show was held at the President University and hosted by Ki Radyo Harsono as the puppeteer, attended by the leaders of Jababeka and President University, honorary guests from several embassies of other countries in Indonesia, the government officials, and all elements of the President University.

According to Dr. Jony Oktavian Haryanto, the shadow puppet show was chosen to show PresUniv as an international

university but still values the wisdoms of local culture. Shadow puppet show is local Indonesian culture that has been known worldwide. “It is to show that PresUniv is not an ‘ivory tower’, because the puppet show is open to public to enjoy.”

The show, he added, is also a means for the mission of President University to educate future leaders, not only on the knowledge but also on the character and wisdom in the hope that the President University will become a world-class university that generates great leaders.

Dr. Jony Oktavian Haryanto also said that the President University has targeted to become the best 50 universities in Indonesia and a world-class superior university in the future. He said he hoped PresUniv can provide great benefits.

“The students who enrolled in this international campus is not only given the theory, but also practices in the field. Located in the Jababeka industrial estate, PresUniv is supported by multinational companies that can be a living laboratory for the students,” said Jony. (PU/TPP)

Undip Vocational School Cooperates with Varia Usaha Beton in Internship Diponegoro University (Undip) has cooperated with PT Varia Usaha Beton to provide practitioner teachers for Undip Vocational School. Undip Rector Prof. Yos Johan Utama announce that in a press release on Tuesday (2/28).

“There are many things that can be collaborated between Diponegoro University and industry, such as research and innovation, human resource management, K3 (Occupational Health and Safety), and psychology test for prospective em-

ployees. The Undip Vocational School can also provide inputs to the industry’s need for innovation, because it has experts who understand the needs of the industry,” he said.

President Director of PT Varia Usaha Beton Hendy Gesit Setiawan added that the rapidly growing development of industry forced his company to keep up.

“For that we take Undip in this collaboration to improve the innovation especially in engineering to create human resources capable of keeping pace with the

development of these technologies,” he said.

In return, Varia Usaha Beton will accept the students of Undip Vocational School for internship to develop their experiences and to practice their knowledge.

Meantime Dean of Undip Vocational School Prof. Budiyono said that this cooperation is an initiative to equalize the skills of Undip graduates with the need of industry.

“In the future, the students will be able to apprentice in the industry for 3 semesters, be-

cause the new concept of our vocational education is 3 semesters in campus and 3 semesters in the field. This is Undip’s effort to create the ideal vocational education program with the lecturer proportion of 50% scientists and 50% practitioners while the classes are 3 semesters in campus and 3 semesters in the field. The graduates of Undip Vocational School will be equipped with the competence certification,” Hendy said. (TRBN/TPP)

August, 2017 | Vol. 7 No. 8 |

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B5

SENIOR LIVING freepik.com

Tips for Comfortable and Safe Holiday for Seniors Having entered the golden age doesn’t mean you must stay at home. You still need to have a trip occasionally to feel the new atmosphere and eliminate fatigue. However, since senior people usually have some limitations, their children or the elderly themselves should make extra efforts in planning and preparing to ensure the comfort and safety while on vacation.

If you want to take or help prepare your elderly parents for a holiday, you should note the following tips.

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Choose a convenient and efficient mode of transportation Even if your parents’ vacation destination is far away, make sure they use transportation modes which are efficient in time and comfortable. If they go by plane, choose a direct flight without the need for transit. If by bus or train, choosing an express class is the best.

Ask for special services as needed

If your parents need a wheelchair, the airlines usually provide a free wheelchair service that can be booked in advance.

So is with diet foods. If the airline provides food, you can tell them what your parents need.

Pack fewer luggage Packing the luggage in one suitcase is better than dividing into several bags, which will put them on the risk of missing from being left behind or stolen. Pack only essential necessities, such as wallets, travel documents, clothing, and daily remedies if any.

In addition to the suitcase, freepik.com

try to carry a waist bag that can store important items and not easily separated. This kind of bag can also make it easier for your parents to pick up the essential items they need at a time.

Another alternative is to wear a small bag that can be hung over the neck inside the jacket.

Provided with travel insurance Undesirable things like accidents on a trip can be overcome with the travel insurance. This insurance is generally a must for those who are going to travel abroad. freepik.com

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TRAVEL

Awesome! 20 Most Exotic cdn2.tstatic.net

Indonesia’s geographical location makes it have many various forests. A number of natural forests have been set as national parks for the preservation of flora and fauna. Have you seen the natural beauty of Indonesia that is represented by 51 National Parks from Sabang to Merauke? Here are 20 of the most exotic National Parks in Indonesia.

1. Mount Leuser National Park

Mount Leuser National Park has a truly challenging wildlife charm. In this national park there are animals that are freely roaming around, like the Sumatran rhinoceros, Sumatran elephants, orangutans, and honey bears. The name of Mount Leuser National Park is derived from the name of a mountain that stands firmly in the area called Mount Leuser.

2. South Bukit Barisan National Park

South Bukit Barisan National Park is located on the southwestern tip of Sumatra, established with the intension to protect the tropical rainforest of the island of Sumatra along with its endemic biological riches. In 1935, South Bukit Barisan National Park was declared as a Wildlife Nature Reserve. UNESCO also recognizes the South Bukit Barisan National Park as a World Heritage Site.

3. Kerinci Seblat National Park

Kerinci Seblat is the largest national park on the island of Sumatra, covering an area of approximately 13,750 sq km.

Here is where rare flora and fauna live and grow. Some wild animals in this national park are the Sumatran tigers, Sumatran rhinoceros, Sumatran elephants, clouded leopards, Malay tapirs, and sun bears. Not only that, there are still about 370 species of birds that live in the area of Kerinci Seblat national park. The giant flower of Raflesia Arnoldi can also be found in this park.

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4. Way Kambas National Park

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Way Kambas National Park (TNWK) in East Lampung Regency, Lampung Province, is designated as an ASEAN Heritage Park. This determination makes TNWK the 4th ASEAN Heritage Park in Indonesia or 36th in Southeast Asia. The establishment of the conservation area into an ASEAN Heritage Park is one of the efforts to conserve the region in Southeast Asia, known for its biodiversity and high ecosystem value.

5. Ujung Kulon National Park

In the Ujung Kulon national park, we may meet with monkeys, deer, and tigers. If lucky, we can encounter a one-horn rhino. This national park is located on the western tip of Java Island.

The name of this national park is Ujung Kulon which means the west end. Ujung Kulon National Park reaches 122,956 hectares. This national park was inaugurated as a UNESCO World Heritage in 1991.

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6. Kepulauan Seribu/ Thousand Islands National Park

The Thousand Islands National Park consists of waters and islands with an area of about 108 thousand hectares. Some of the islands in the area of the Thousand Islands National Park are famous tourist destinations in Jakarta.

This National Park is located about 45 kilometers north of Jakarta.

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7. Karimun Jawa National Park

Karimun Jawa is a national park consisting of 2 small islands. There are about 22 islands in there.

The national park is covering 111,625 hectares. The beauty of Karimun Java is beyond doubt because many people have enlisted this place as one of their favorite tourist destinations.

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8. Bromo Tengger Semeru National Park

Bromo Tengger Semeru National Park is the only conservation area in Indonesia. This national park has uniqueness in the form of 5250 hectares of sandy land area, which is located at an altitude of 2100 meters above sea level. In Bromo Tengger Semeru National Park there are about 137 species of birds, 22 species of mammals, and 4 species of reptiles. Bromo Tengger Semeru National Park is located in East Java, under the administrative area of Pasuruan Regency, Malang Regency, Lumajang Regency, and Probolinggo Regency.

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9. Baluran National Park

This national park is located at the eastern tip of Java Island on the border between Situbondo and Banyuwangi regencies. The Baluran National Park covers an area of about 250 square kilometers and 40 percent of its territory in the form of savannas. The most famous place in the Baluran National Park is Savana Bekol which is a vast pasture where the wild fauna usually gather to eat.

10. Lake Sentarum National Park

Lake Sentarum as a seasonal lake in this national park is located next to the Kapuas river basin, which is about 700 km from the estuary that leads to the South China Sea. Bounded by the hills and highlands that surround it, Lake Sentarum is a water catchment area and also a water regulator for the Kapuas river basin. So the downstream areas of the Kapuas River are highly dependent on the fluctuations of water contained in the lake.

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11. Tanjung Puting National Park

Tanjung Puting National Park is located on the peninsula of Central Kalimantan. This is the largest orangutan conservation in the world with an estimated population of 30-40 thousand heads. Additionally, Tanjung Puting National Park is also a biosphere reserve that was inaugurated in 1977. The core area of Tanjung Puting National Park itself is 415,040 hectares, set up in 1982.

12. West Bali National Park

West Bali National Park is located in the western part of the island of Bali. This national park covers an area of 77,000 hectares, about 10 percent of the land area of the Bali Island. West Bali National Park consists of various forest and savanna habitats. In the central part of the park is dominated by the remains of four volcanoes from the Pleistocene era, with Patas Mountain as the highest point in this place.

About 160 species of animals and plants are protected in this park, such as bulls, deer, langurs (leaf-eating monkeys), bats, and various birds. West Bali National Park is the last place to see Bali’s starlings, the only Bali’s endemic species which is endangered, in its natural habitat. bp.blogspot.com

13. Komodo National Park

If in Ujung Kulon National Park we can see the one-horn rhinoceros, in the Komodo National Park we can watch the giant lizards or dragons called Komodo living wildly and freely. The Komodo National Park is included in the two provinces of East Nusa Tenggara and West Nusa Tenggara. The total area of Komodo National Park is about 1,817 square kilometers, covering land and sea. In 1991, the Komodo National Park was also included in the list of UNESCO World Heritage Sites.

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14. Mount Rinjani National Park

This 41,000 hectare national park is the highest mountain in Indonesia, Mount Rinjani. We can see the Segara Anak Lake from the top of Rinjani.

Mount Rinjani National Park stretches from East Lombok, Central Lombok and West Lombok, to the West Nusa Tenggara Province.

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15. Mount Tambora National Park

We can see Mount Tambora in this national park. The volcano that erupted in 1815 destroyed three kingdoms in West Nusa Tenggara (NTB), namely the Kingdom of Tambora, the Pekat Kingdom, and the Sanggar Kingdom.

This mountain keeps a long history so it is very interesting. On April 11, 2015 President Joko Widodo inaugurated the Mount Tambora National Park, coinciding with the commemoration of two centuries of Mount Tambora eruption.

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16. Bunaken National Park

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Located in North Sulawesi, Bunaken National Park is in the Coral Triangle. Bunaken National Park is home to 390 species of coral reefs and 90 species of fish, mollusks, reptiles, and marine mammals. Bunaken National Park has a very rich coral reef ecosystem.

17. Bantimurung Bulusaraung National Park

Some uniqueness is stored in the Bantimurung-Bulusaraung National Park; among others are a karst landscape, a cave with beautiful stalactites and stalagmites, and variety of butterflies. Bantimurung is dubbed as the Kingdom of Butterfly.

This National Park is one of the natural tourist destinations in the form of a steep valley of limestone hill with tropical vegetation, a waterfall, and a cave that are the habitat of various species including butterflies.

18. Wakatobi National Park

One of the 51 national parks in Indonesia is the famous Wakatobi National Park. This national park is located in Wakatobi Regency, Southeast Sulawesi. Its area reaches 1.39 million hectares with a wealth of marine biodiversity. Wakatobi National Park consists of panoramic beauty of the underwater consisting of 25 clusters of coral reefs. zonalibur.com

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19. Cendrawasih Bay National Park

Papua Island is famous for its enchanting natural beauty. In addition to the famous Raja Ampat, Papua has other beautiful places like the Cenderawasih Bay National Park. This park is located in the Cenderawasih Bay, West Papua. Most of its territory consists of waters amazing wealth of marine biota. This national park is also the largest marine national park in Indonesia.

20. Lorentz National Park

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In addition to Cenderawasih Bay National Park, there is also the Lorentz National Park in Papua. This national park covers an area of about 2.4 million hectares, so it is the largest national park in Southeast Asia. UNESCO established the Lorentz National Park as a World Heritage Site in 1999. (LN/TPP)

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Kendal Industrial Park Holds Tournament for 50 Korean Entrepreneurs at Borobudur Golf Kendal Industrial Park or often shorten in Indonesian acronym of KIK has organized a Korean Golf Tournament. The tournament was held at the Borobudur International Golf & Country Club, Magelang, on Sunday (23/7).

No less than 50 golfers, who are the owners of Korean companies running businesses in Central Java and Jogjakarta Special District, participated in the tournament.

The Korean Golf Tournament offered lucky draw cash of Rp20 million and a number of cellphones and TV sets. The tournament’s contenders competed to win the prize of Rp100 million for Hole in One, and Rp25 million for par 3 at holes 4, 6, 12 & 15.

Here is the list of winners of the Korean Golf Tournament: For the Category of Flight C (20 - 24), the runner up nett was won by Lee Hoon with gross 96 -

handicap (hcp) 24 - nett 72, best nett was achieved by Kim Eun Ja with gross 92 - hcp 21 - nett 71, and the best gross was won

by Cho Young Jai with gross 90 - hcp 16.

For the Category of Flight B (15 - 19), the runner up nett was grabbed by Park Jong Ho with gross 90 - hcp 18 - nett 72, best nett was achieved by Lee Kune Hong with gross 87 - hcp 16 nett 71, while the best gross was won by Moon Seung Gu with gross 86 - hcp 16.

For the Category of Flight A (1 - 15), the runner up nett was obtained by Park IL Ho with gross 86 - hcp 15 - nett 71, best nett was achieved by Byung Hwa

Ahn with gross 86 - 15 - nett 71, and the best gross was won by Lee Nam Hee with gross 82 - hcp 12 The best gross overall title was grabbed by Seo Eui Seok with the gross 82 - hcp 10.

The location of Borobudur International Golf & Country Club is surrounded by rich natural beauty of mountains, refreshing clean air, and the charm of Javanese culture. The 18 holes golf course with bumpy lawns, manicured greens, tees and colorful contrasting landscapes makes your golf game full of fun.

The Borobudur International Golf & Country Club is open to members as well as local

and international visitors. It is a 45-minute drive from Yogyakarta and easy to access from Semarang and Solo. The warm hospitality of Javanese culture will welcome all the visitors, making the experience of playing golf at the Borobudur International Golf & Country Club hard to miss.

The Borobudur International Golf & Country Club is situated in the center of Magelang, a town in the valley of Mount Tidar. Magelang is known for its cool climate, fresh air with beautiful scenery. About 40 km north of Yogyakarta and 60 km south of Semarang, this elegant golf course was designed by Douglas

Duncanson, a world-class golfer, and constructed by experts in building golf course from PT Jababeka Golf Cikarang.

The golf course is also equipped with a luxurious clubhouse that offers many facilities. A pro shop also provides a variety of famous golf brands that ensure satisfaction. There is ample space for parking with easy entry and exit access. For the beginners and professionals, Borobudur International Golf & Country Club offers a driving range supervised by experienced instructors and accompanied by friendly caddies who are ready to help anyone who comes to practice in the driving range.