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BUSINESSMEN WANT GOVERNMENT TO EVALUATE SEA TOLL POLICY

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Deputy Chairperson for the Maritime and Fisheries of the Indonesian Chamber of Commerce and Industry (Kadin), Yugi Prayanto.

Greatindonesia.co.id, Jakarta – Deputy Chairperson for the Maritime and Fisheries of the Indonesian Chamber of Commerce and Industry (Kadin), Yugi Prayanto, called on the government to evaluate the sea toll policy which is currently not considered economically effective.

In addition, using the sea toll route as a distribution channel was proving to be ineffective, Yugi said, adding that there are still areas that have not been reached through the high seas.

“In my opinion, the government must map the right distribution channels so that the sea route is not in vain. Do not let this be just a jargon so that it is not economically effective,” Yugi said here Wednesday (3/7/2019).

The sea freight transport program proved ineffective because ships were often found returning empty to Jakarta, he also said.

“It must be mapped that the industry or supply needs are already in the data to see whether or not cargoes which are carried by ships are effective for areas passed by the ships, and whether every area that they pass through also deposits goods,” he said.

In addition, the government also needs to consider other patterns for the effectiveness of the implementation of the sea toll policy, he said.

Related news: Economic ministries should synergize to optimize sea highway: Observer

“The other pattern we talked about with shipping friends was that they did not want large ships. They want medium vessels because at every point they dropped items. There are those who started to use them like steamer ships,” he said.

As previously reported, the Ministry of Transportation continued to evaluate the implementation of sea tolls from January to June of 2019 in order to improve the quality of sea toll services which is the priority program of President Joko Widodo.

A lot of attention has been paid to the needs of the community on sea transportation services due to which the government issued a number of policies and subsidies to optimize the implementation of sea transportation on the frontier, outermost and least developed regions, and remote areas, the Ministry of Transportation said. (ant)

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FINANCE

REI READY TO BUILD NEW CAPITAL CITY : BAPPENAS

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Minister of National Development Planning (Bappenas), Bambang Brodjonegoro.

Greatindonesia.co.id, Jakarta – Property developers who are members of the Indonesian Real Estate (REI) are ready to participate in construction activities in the new capital of the country, Minister of National Development Planning (Bappenas), Bambang Brodjonegoro has stated. “We have communicated with the REI. The point is they are ready to be included in this plan,” he said during a meeting at the Bappenas Building, Jakarta, Wednesday (10/7/2019).

REI is ready to be involved in the development of a new capital city without any funding from the State Budget (APBN).

It only needs assurances regarding the land where the new capital city will come up, REI said.

“REI needs assurances if it does get concessions for land, that the construction process will not be disrupted,” he said.

Besides REI, there are many other companies that will be involved in the development of the new capital, not only from the private sector but also from among state-owned entities.

“The point is that many business people are interested in this planning and SOEs are allowed to participate,” he stated.

Previously, the Indonesian National Development Planning had estimated the cost of transferring the state capital, through the state budget to be IDR30.6 trillion over several years.

“Of the total cost of Rp466 trillion, the required state budget is only around Rp30.6 trillion,” Bambang had said in Jakarta, Thursday, June 15.

Based on the estimates compiled by Bappenas, the Rp30.6 trillion from the state budget will be used to build state palaces and military/police strategic buildings as the principal functions, green open spaces as helping functions, and for land acquisition.

Aside from the state budget, the Government and the Business Entity Cooperation scheme worth Rp340.6 trillion and private sector funds worth Rp95 trillion will complete the total amount of Rp466 trillion required for the transfer of the state capital.

Funds from the Government and Business Entity Cooperation will be utilised for the construction of government buildings (legislative, executive, judiciary), official housing (multistory and house-to-house for State Civil and Military / Police Apparatus), educational facilities (on the elementary, middle, and high school level), health facilities, correctional institution, infrastructure such as roads, electricity, telecommunications, water supply, drainage, waste treatment, and sports facilities.

Moreover, funds from the private sector will be used to build educational facilities (at the university level) and health facilities.

“So the majority of us are cooperating with the private sector and SOEs, the state budget is only a trigger. We will also use existing assets,” he said in conclusion. (azi)

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FINANCE

HOUSE APPROVES 2020 ECONOMIC GROWTH TARGET OF 5.5%

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Government representatives in a meeting with the House of Representative's Budget Agency in Jakarta on Monday (8/7/2019).

Greatindonesia.co.id, Jakarta – The Budget Academy of the Indonesian House of Representatives (DPR) approved an economic growth target of between 5.2 percent and 5.5 percent for 2020, based on the macro-economic predictions of the 2020 Draft State Budget.

The approval was made during a meeting between the DPR Budget Agency, the Ministry of Finance, the Bank of Indonesia and the Ministry of National Planning and Development, which was held in Jakarta Monday (8/7/2019).

“The outcomes of this meeting are subject to further discussion and include the basic pillars of the 2020 State Budget Bill, along with relevant financial data,” the meeting’s chairman, Kahar Muzakir said.

The meeting also discussed several key issues, such as national macro-economic predictions, related macro-fiscal frameworks, such as state revenues and expenditures, and national development targets for 2020.

The parliament approved the government’s proposed economic growth target, which is estimated to range from 5.2 percent to 5.5 percent, John Kenedy Azis (Member of the House Representative’s Budget Agency) explained, adding that the government also estimates annual inflation to be two percent to four percent while the exchange rate of the Rupiah (Rp) against the US dollar is expected to be between Rp14,000 and Rp14,500 per dollar.

Regarding national development targets for 2020, the unemployment rate is estimated to be between 4.8 percent to 5.1 percent, and poverty rate from 8.5 percent to 9.5 percent, and Gini ratio from 0.375 to 0.380, and human development index at 72.51 percent.

During the meeting, Sri Mulyani Indrawati (Minister of Finance) expressed his appreciation for the key role of the DPR Budget Agency in developing the initial plan of the Draft State Budget, before it is finalized as the 2020 State Budget.

“We would like to thank all the working committees. We will take all inputs into account. If there are any changes, we will certainly declare them,” Indrawati said. (hep)

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REAL SECTOR

GOVERNMENT TO FORM OMBILIN COAL MINE MANAGEMENT BODY

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The Director General of Culture, Ministry of Education and Culture, Hilmar Farid.

Greatindonesia.co.id, Jakarta – The Director General of Culture, Ministry of Education and Culture, Hilmar Farid, said the government would soon form the Ombilin Sawahlunto coal mining management body that had just been declared a world heritage site by UNESCO.

“This is based on the mandate of Law number 11 of 2010 to establish a management body,” he said here on Sunday (7/7/2019).

Therefore, the Director General of Culture of the Republic of Indonesia immediately spoke with the provincial, municipal, district and other stakeholders to follow up on the mandate.

According to him, the establishment of the agency makes sense considering that if there is a development involving many parties, the central government does not have to participate, because there is already a semi-permanent management body.

“We are targeting this management body to be completed by the end of 2019 and can immediately carry out its functions,” he said.

Regarding the amount of the management agency’s budget, he claimed he did not know, because each stakeholder such as the province, district and Director General of Culture is still counting.

In addition, the Regional Infrastructure Development Agency of the Ministry of Public Works and Housing will also be involved in budget matters.

Regarding the role of the Ministry of Education and Culture in the management body, it will be more about substances such as ensuring preservation, narrative matters and experts if the restoration and development are carried out so as not to hit the rules.

“Friends have been working well with architects, developers,” he said.

He saw the concept of handling the Ombilin Sawahlunto coal mining area different from other sites such as Central Java’s Borobudur Temple and Prambanan Temple which are located in one complex.

“The Ombilin coal mining area is a city that has a planned Spatial Detail, and therefore a management body is needed,” he said.

He added that the management agency will have the task of harmonizing economic development and conservation so that no party is harmed. (jum)

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