Thursday, 25 September 2008

The adjustment of article of association of companies pursuant to the new company law

Law 40 of 2007 regarding the Limited Liability Company (August 16,2007) stipulates that the companies that have obtained the legal entity status based on the prevailing laws and regulations must adjust their Articles of Association (“AoA”) within a period of one (1) year as from time of the coming into effect of Law 40/07.
Pursuant to above-mentioned provision, the companies that have not adjusted their AoA up to the dateline of August 16, 2008, the said companies may not access temporary the Administrative System of Legal Entity (SISMINBAKUM) of Ministry of Laws and Human Rights (“MoLHR”) since September 16, 2008. The purpose of closing the access to SISMINBAKUM temporary in order to achieve the administration harmonization on the law services of PT sector.
Furthermore, the said companies that wish to access the SISMINBAKUM again and to adjust their AoA pursuant to Law 40/07 shall submit the application letter to the MoLHR with attachment of the Integrity Pact signed by the Directors.

Purbalingga fish production contributes Rp. 66.9 billion annually

Fish production in Purbalingga reaches 6,337 ton or Rp. 66.9 billion annually. Production includes Lele fish amounting to 2,913 ton or Rp. 38 billion, Gurame 1,267 ton or Rp. 25 billion, Bawal 577 ton or Rp. 5.7 billion, and Nila 585 ton or Rp. 7 billion. “The fish is produced by 13,351 home industries managed by farmers,¨ said Purbalingga regent Triyono Budi Sasongko. However, Triyono mentioned some problems like water insufficiency, under-qualified seeds and technology, and low investment.

Government to reduce port overloads

In addition to accelerating its inspection process, the government is looking to reduce overloading and delays at Jakarta’s Tanjung Priok port by penalizing traders who fail to remove goods that clear customs, The Jakarta Post reported.
A government-appointed team charged with assuring the smooth flow of export and import goods will arrange a series of meetings to provide solutions to the port's overloading problems, Trade Minister Mari Pangestu said.
Among other problems causing delays is the practice of traders who secure a clearance, but choose to store their goods at the port, she said, adding the appointed team would investigate the problem.
"It now takes three to eight days for a container undergoing the redline inspection to go from unloading to customs clearance, with another few days before it's picked up by the importer," Pangestu said Thursday after an inspection at one of the port's terminals.
Many importers choose to store their containers "for months" as "it is more expensive for them to pick the goods up immediately and keep them in warehouses than to keep them here," said a source who spoke on condition of anonymity.
Nearly 185,000 containers move in and out of the port every month, up from 160,000 containers per month last year, said Abdullah Syaifudin, president director of state port operator PT Pelindo II.
"The team is considering applying disincentives in the foreseeable future for importers who have obtained customs clearances but continue to store goods at the port," Pangestu said. The team will also formulate a set of incentives for fast collection of goods.
The team, led by Coordinating Minister for the Economy Sri Mulyani Indrawati, includes, among others, Transportation Minister Jusman Syafii, Public Works Minister Djoko Kirmanto and Pangestu.

ADB predicts 6.0% to 6.5% growth

Indonesia's economy will likely grow between 6% and 6.5% this year, despite high inflation and monetary tightening, Asian Development Bank (ADB) president Haruhiko Kuroda said Wednesday, Dow Jones reported.
"In the long term growth could even accelerate to 7%," Kuroda said. He didn't elaborate.
Bank Indonesia's most recent forecast is for 6.2% growth in gross domestic product this year and 6.3% growth in 2009. Indonesia's GDP grew by 6.3% in 2007.
Kuroda also said the ADB has allocated $1 billion that can be loaned to Indonesia to support economic growth. “In the next three years we are still calculating but we will provide approximately $1.2 billion (in total loans)," he said. Kuroda said Indonesia's inflation rate has likely peaked and should decline. Kuroda reiterated that the ADB plans to issue local-currency bonds to fund its Indonesian projects, but said it is assessing market conditions and doesn't have a fixed date for the issuance. The ADB previously said it would issue an indicative Rp1 trillion in bonds in the third or fourth quarter of this year.

Tuesday, 16 September 2008

Jababeka in container terminal venture

PT Kawasan Industri Jababeka, the operator of the Jababeka industrial estate in Cibitung, hopes to establish a joint venture company with a Japanese partner to build a container terminal in the industrial estate this year, Asia Pulse reported on Friday.Corporate secretary Mulyadi Suganda told the newspaper Investor Daily feasibility study is being finalized.Suganda said Jababeka has signed a memorandum of understanding with the unnamed Japanese partner.He said the company will also cooperate with state-owned railway company PT Kereta Api in the procurement of carriages.The company has provided 6 hectares of land for railway track to be built to link the industrial estates with Jakarta's port of Tanjung Priok.

Franchise operation in Indonesia

Regulation of Ministry of Trade No.31/M-DG/PER/8/2008 regarding the Franchise Operation (August 21, 2008) is required both Franchisor and Franchisee to obtain a franchise business registration certificate (“Surat Tanda Pendaftaran Waralaba or STPUW”) by registering the franchise offering prospectus. STPUW is valid for 5 years period and can be extended for the same period. The foreign franchisors and subsequent foreign franchisor shall submit application of STPUW to the Directorate of Business Development and Corporate Registration, Directorate General of Domestic Trade, Ministry Trade. Furthermore, franchise offering prospectus registered by foreign franchisors shall be legalized by the Notary Public by enclosing the Certificate from Trade Attache or official of representative of RI in country of origin. If the foreign franchisors, foreign franchisees and subsequent foreign franchisors do not register their franchise offering prospectus, they shall pay a fine maximum Rp 100.000.000,- .

Business-friendly tax bill endorsed

The House of Representatives enacted on Wednesday (3/9/2008) a much-awaited amendment to the income tax law aimed at spurring economic activities by providing lower rates and more incentives to businesses, The Jakarta Post reported.
Income tax for corporations will be set at 28% flat next year, replacing the current progressive system, and will be further reduced to 25% at the start of 2010.
The new arrangement will not only benefit firms with high earnings, but also micro, small and medium businesses (MSME), which will have their income tax slashed by 50% from those of corporations. Companies that earn less than Rp50 billion a year are included in the MSME category.
The new law will take effect next year, with the government estimating it will suffer some Rp40 trillion ($4.34 billion) in potential losses from tax revenue during the first year of implementation.
It provides incentives to encourage companies to go public. Companies that list at least 40% of their shares on the Indonesia Stock Exchange will see their tax rate cut by 5% compared to those of ordinary corporations. Tax from the receipt of dividend payments will also be cut, on a progressive basis, to 10% from the current 35%. The incentives are aimed at boosting investment in the country and encouraging companies to pay out dividends.
For individuals, the law raises the taxable income threshold to Rp15.84 million per year from Rp13.2 million per year, with the highest rate set at 30%, down from the current 35%.
Income tax rates for individuals will be divided into four categories: those earning up to Rp50 million per year will pay 5% tax, those earning between Rp50 million and Rp250 million will pay 15%, those earning between Rp250 million and Rp500 million will pay 25% and those earning more than Rp500 million will pay 30%. The Directorate General of Taxation will also eliminate the overseas exit tax of Rp1 million effective next year for registered taxpayers. The tax will be fully eliminated in 2011.

Central Aceh invites investors for sugar industry

The government of Central Aceh is offering incentives for investors that will build sugar industry in order to accommodate the sugar cane production in that region. The community could not take advantage of the big potential of sugar cane in this region without the sugar industry. Therefore, the government will give some incentives for the investors, said Windi Darsa, public relation officer of the government of Central Aceh.

Dredging for Jakarta waterways

The Jakarta government will start dredging the city's main flood channels early in October with equipment donated by the Dutch government, Republika reported.According to Jakarta Governor Fauzi Bowo, the channel dredging will also be conducted for some rivers which are considered too narrow. "At the moment, the equipment is on its way here. I have asked that the administrative process be finished soon so the equipment will not be held up in Customs," Bowo added.

Railway revitalization requires Rp. 19 trillion

The Indonesian government has agreed to revitalize railways in Sumatra, Java, and Jabodetabek (Jakarta, Bogor, Depok, Tangerang, and Bekasi) in 2008-2010. It is predicted that this revitalization will require Rp19.365 trillion, however, the government has only Rp. 7.04 trillion available for this project. The Vice President has asked that these projects should be offered to the private sector through open tender,¨ said Transportation Minister, Jusman Syafii Djamal. Jusman explained that the government plans to develop 501 kilometers of railways out of the total 1,369 kilometers by 2010. The government also plans to reactivate unused 57 kilometers of railway tracks out of the total 187 kilometers.
Furthermore, government plants to build new 116 of kilometer of new railways by 2010. Jusman also mentioned some railway developments that have been initiated by the private sector. These include railways in Tanjung Enim-Tarahan for coal (in cooperation between the state railway company and Bukit Asam), Jalan Simpang Tanjung Api-Api, Baturaja, Lahat-Kertapati, and a project in Bengkulu. “We invite more private sector companies to participate,” he said.

Government infrastructure investment in 2009 to reach Rp. 70.89 trillion

The government has set itself a new infrastructure investment target of Rp70.89 trillion in 2009 to be carried out under a government-private cooperation scheme, an official said, Antara reported.
Dedy Supriadi, deputy to the minister for the National Development Planning Ministry, said the government's investment under the cooperation scheme would increase further to Rp112.24 trillion in 2010 and Rp128.56 trillion in 2011. He said infrastructure to be built under the scheme included power plants, clean water facilities, toll roads, seaports, airports, trains and residential complexes.
The Kualanamu airport toll road in North Sumatra linking Medan with a new airport and the Depok-Antasari toll road in southern Jakarta were among the projected toll roads.

Doing Business 2009 records positive reforms in Indonesia on ease of doing business

The Government of Indonesia has reduced the number of days required to start up a business from 105 days to 76 days as well as the cost and number of procedures. Additionally borrowers now are able to inspect their credit data at Bank of Indonesia which helps to improve the quality and accuracy of the information financial institutions use in assessing the risk profiles of borrowers.
These reforms are among those reported in the Doing Business 2009 Report which was officially released today in Washington DC.

Sunday, 7 September 2008

Dairy cow breeding center to be built in Malang

The Malang municipality in cooperation with Bank Indonesia in Malang will build a breeding center for dairy cows worth Rp592 million at Ngantang sub-district. The Ngantang secretary Ruba’i said the breeding center is to increase the milk production. So far, Ngantang produces on an average of 60 tons of fresh milk daily. While PT Nestle Indonesia, the milk production industry in Kejayan sub-district in Pasuruan, requires 70 tons of fresh milk daily. The center will be built on 29,000-meters of land at Tulungrejo village and has been 50 percent completed. Construction is expected to be completed by the end of 2008. “We will also manage the cow waste turning it into biogas,” said Ruba’i to Tempo, Friday (5/9).

Kima is looking for power plant investors

PT Kawasan Industri Makassar (Kima) is looking for strategic investors to build the power plant in the most densely populated industrial area in East Indonesia. Director of Kima, Bachder Djohan, said that they will build power plant that will supply the electricity to their area.

US$70 million loan for dams

The World Bank has granted a US$ 70 million loan to Indonesia through the Dam Operation and Improvement Safety Project to restore 65 dams, said Public Works Department's Water Resources director-general, Iwan Nursyirwan Dian. According to the Iwan, the loan was taken because the government was having difficulty getting funding to repair the dams, which were damaged by sedimentation. The project, which begins next year, is expected to be completed by 2012.

Inflation rate improved in August

The inflation rate in August was 0.5 percent, better than the 0.75 percent recorded in August last year, Central Bureau of Statistics (BPS) head, Rusman Heriawan said in a press conference. This has resulted in the consumer price index going up slightly, from 111.59 in July to 112.16 in August. Rusman said the top five commodity that have supported the August inflation were fish, chicken meat, eggs, household fuels (especially liquid petroleum gas), and senior high school tuition fees. During the month of Ramadan, Bambang Soesatyo, Chairman of the Fiscal and Monetary Committee of the Indonesian Chamber of Commerce & Industry (Kadin), has estimated that there will a 20 percent price increase in basic commodities and LPG.