Thursday, 22 November 2012
Sunday, 11 November 2012
The Ministry of Agriculture: FARMERS GET ZEALOUS ABOUT PLANTING SOY
The soaring price of soy got tofu
and tempe makers into trouble some were even on strike for lowered price by
stopping to produce tofu and tempe, but the bliss behind the restless price of
soy was that soy growers were getting zealous about planting soy.
The Ministry of Agriculture, Suswono
in Jakarta on Monday (10/9) stated that the increased price of soy motivated
farmers to grow soy, therefore the present farmers’ price of soy Rp 7,000/kg
must be maintained.
Moreover in some production centers
of soy like Kebumen, the potential of soy production was fairly good, i.e. 2.4
tons/ha. Survey data had it that the average productivity today was posted at
2.5 ton to 4 ton/ha; meaning plantation yields was fairly good, i.e. 1.3 – 1.4
tons/ha. “From research outcome it is visible that plantation yields of soy is
potential enough for development” Suswono said.
Based on productivity calculation of
at least 2 tons/ha alone and soy price at Rp 7,000/kg, farmers would receive
earnings of Rp 14 million/ha. Meaning of production cost was Rp 2 million,
growth could make profit of Rp 2 million/ha. “Hence, at the price of Rp
7,000/kg soy cultivation business would be competitive against corn” Minister
Suswono was quoted as saying.
The Government was aware that soy
business still had to compete with corn, because the two commodities were
planted on the same land. Therefore, in order to be self-supporting in soy more
space was needed. To procure more land, the Ministry had promised to procure
extra land covering 500 thousand ha.
“With just two more years left we
would maximize effort to meet the target of self supporting in soy. Moreover
price of soy was sufficiently good and there was commitment from the Ministry
of Forestry to procure land”.
Moreover Indonesia had the
experience of self supporting in soy in 1992. At that time there was protection
by the Government, i.e. price incentive by setting soy price at 1.5 times the
price of soy. In addition to that the Government through Bulog acted as
sustainer of farmer’s price of soy.
Ever since the incentive was non
existent and price was no longer stimulating to farmers, production of soy
dropped drastically from the previous 1.5 million tons to the present 800
thousand tons. “So one of the stimulators to increase production was attractive
price”.
Business News - September 14, 2012
CREATIVE ECONOMY BRING BETTERMENT ON SOCIAL WELFARE
The
Government had made several breakthrough to improve people’s welfare. Among
them was to stipulate the policy of promoting creative culture, i.e. an
economic activity with underlying culture, creativity, craftsmanship, and
individual skill. To enhance the above efforts, the Government had set legal
umbrella by issuing the Presidential Instruction no. 6 year 2009 On Development
of Creative Economy 2009 – 2015. This Presidential Instruction was addressed to
two Coordinating Ministers, namely: the Coordinating Minister of People’s
Welfare and the Coordinating Minister in Economy, 21 ministers, four
non-ministerial Institutional Heads, Governors, Regents and Mayor in all of
Indonesia to promote development of creative economy and make it a successful
project.
Dody Edward, Director of Development
of Export Products and Creative Economy, Director General of National Export
Development (PEN) Ministry of Trade on Monday (10/11-2012) underscored the
importance of Government’s role in introducing and promoting creative economy
to the general public. Dody was expecting that development of creative economy
could bring positive impact on the social economic life of the people as well
as creating employment, business opportunities, and to promote trading,
tourism, and investment in Indonesia. “Our country is rich in natural
resources, now the problem is just how to tap them so we could develop industry
and promote people’s welfare and well being” Dody was quoted as saying.
Dody saw that the creative work of
Indonesians were not only favored at the local market but also widely acclaimed
at the international market. Some commodities of the creative industry which
were sought after at the international market were among other: fashion
products, IT products, Indonesian movies, etc. The unique design, assurance of
high quality materials used by the creative industry in Indonesia were highly
appreciated and sought after by the consumers in Asia, Europe and US markets.
Dody saw that there was a golden
opportunity for players of the creative industry in Indonesia i.e. the distribution
network which was widely spread which offered more sales and bigger profit.
Considering the great potentials treasured by the creative industry sector,
according to Dody, support was called for from the related parties to speed up
growth of the creative industry. The intellectuals, for example needed to
explore and publicize the new norms applicable in the environment especially
those related to science and technology.
Local producers of the creative
industry needed to adopt and apply modern technology in the production and
distribution process whereby to make products more beneficial to users. On the
other hand Government officials were expected to adopt business rules and
trading policies which were conducive to progress in progress in management,
facilitation and empowerment of local creative industry with emphasis in human
resources upgrading, locating of industry and strategic budgeting for the
growth of creative economy.
Dody elaborated that considering
Indonesia’s geographic condition and wealth of natural resources, and diverse
arts and culture and the artistic gift of the people, it became an undeniable
fact that the wealth of creative talents was the spring of inspiration for
making products of high creative value and strong competitive edge which would
eventually bring sustainable progress to the industry and prosperity for the
people.
Business News - September 14, 2012
INFRASTRUCTURE DEVELOPMENT IN EAST INDONESIA SOW NEW GROWTH CENTERS
The
Government was now giving full attention on infra-structure building in East
Indonesia (KTI) whereby to create new economic growth centers or to make the existing
economic enters in that region inter-connected. The Director of Transportation,
Ministry of National Development of Transportation, Ministry of National
Development Planning/Bappenas Bambang Prihartono in Jakarta on Tuesday
(11/9-2012) stated that the Government was planning to prepare new
infrastructure projects in East Indonesia to enhance development in that
region.
Bambang stated that the Government’s
commitment to intensify development process in East Indonesia never ceased.
Each year, the government constantly reviewed and improved the development
process in East Indonesia. Bambang mentioned there were some strategic issue
which was now developing in East Indonesia. In Papua, for instance, the
strategic issue which were developing were the problem of infrastructure
building, poverty elimination, promotion of food resiliency, and promotion of
public service.
In the province of Maluku, Bambang
said, beside acceleration of infrastructure building, other strategic issue
were expansion of plantation and opening of new ricefields mobile health
service at sea, upgrading of human resources, acceleration of fish embankment
development, and development of marine tourism. Meanwhile is Sulawesi the
strategic issues were: increasing regional connectivity, upgrading of human
resources and attainment of Millennium Goals (MDGs), increase of agricultural productivity and procurement of
energy need. “Infrastructure development is most vital in developing new growth
centers in East of Indonesia” Bambang remarked.
According to Bambang, to speed up
development in East Indonesia, the Government had increased transfer of fund to
the region like General Allocation Fund (DAU), Special Allocation Fund,
Dividend Fund, Otsus Fund and Adjustment Fund. In addition to that Bambang
said, to drum up private investment, The Government tried to increase
Government's capital spending in areas where private investment was still low.
The Government’s focus of attention was, according to Bambang, was to
prioritize infrastructure development in areas where the Government’s capital
spending was high as propeller of economy in the region. He added on that to
step up development was East Indonesia, the role of Provincial Government was
most important whereby to serve a strategic step in national development.
East Indonesia was today in need of
marine infrastructure to support connectivity. East Indonesia, which for the
most part consisted of water, needed connectivity which was maritime connectivity,
which means marine infrastructure. He said that an archipelago like Indonesia
needed more sea connections. Bambang also disclosed that development of marine
infrastructure needed enormous amount of fund as well as high technology and
expertise.
Meanwhile Vice Chairman of the
Indonesia Chmaber of Commerce (KADIN) HM Sattar Tabba rated that Infrastructure
Development Acceleration Program in East Indonesia was not running well. Fore
that matter fair distribution of fund for infrastructure development and well
balanced funding for East Indonesia as well as maneuverability in space
planning and Presidential Decree for development acceleration for East
Indonesia became imperative.
Business News - September 14, 2012
FINANCIAL CRISIS JUSTIFIES CLIMATE ISSUE
Some LSM (Non Governmental
Observers) had different views of the Initial Conference of Climate Change in
Bangkok (5/9) some were optimistic while some were pessimistic. But nearly all
NGO (LSM) saw there was a tendency of justification of the climate issue, which
created fear among 6,973,738,433 (data 2011) of the world’s population.
“Climate crisis was of the industrial to little doomsday, while financial
crisis of the industrial states was the bigger doomsday which was ever
dreadful” Sri Ranti of WALHI disclosed to Business News (10/9).
The conference was participated by
delegates from Indonesia, i.e. Chairman of the Fiscal Policy Board of the
Ministry of Finance and four NGO’s i.e. WALHI, CSF and KIARA. WALHI (the
Environmental Organization) among other admitted there were two main
differences among LSM/NGO in regard to the effort to reduce the earth’s
temperature. “Some LSM were avocation oriented, some were conservation
oriented. In fact all LSM were not overlapping in voicing emission reduction,
but there was simply no common ground especially in regard to Green Climate
Fund (GCF)” Sri Ranti remarked.
Meanwhile at global level, LSM were
broadly divided into poles, i.e. those who focused on justice network and those
who focused on negotiation, they and those who focused on negotiation, they
were bringing messages from the people of the respective countries not just by
way of report but also negotiations. WALHI who joined the Climate Talk for the
past three years saw the need for a more definitive target in strengthening the
climate issue. “All LSM who joined the conference were financed by certain
delegation. We are also busy with certain activities, but we from Indonesia
have our target which must be synchronized first with other LSM” she remarked.
Beside WALHI, KIARA (people’s
coalition for Fishery justices) and KAU (the anti-debt coalition) and Civil
Society Forum (CSF) were voicing the same opinion. The activists, before
embarking on the main agenda of the conference had their pre-briefing. “We must
stipulate a common ground before underscoring the main agenda”.
GCF was an idea or proposition which
was only set forth this year. There four LSMs we also seeking for a common
platform for GCF was already at regional level, but had not arrived at national
level in Indonesia. “NGO are voicing the same opinion because they set forth
the same case including this GCF” However, LSM could not always be directly
involved in negotiations. There were some parts of discussions which were
closed for NGO, only state observers were involved. “Sometime we wasted a lot
of time the way it happened in Bangkok. We were often confused because one NGO
form abroad came up with one proposition while another NGO came up with another
since there was no common ground” Sri Ranti remarked.
Meanwhile KAU saw that the Bangkok
conference ended up with less gladdening result. Industrial countries did not
make any clear commitment to definite emission reduction, while developed
nations, including Indonesia, had no fangs to make any pressure. Indonesia’s
leader position as the biggest country in South East Asia should have been more
daring and aggressive at that conference. “The faith of the Conference on
Climate Change had only to months left, but it seems to still to leave a big
question mark” Dani Setiawan of KAU told Business News (11/9).
The COP outcome 16 in Cancun (2010)
and Durban (2011) evaded industrial countries away from their historical
responsibility as main contributor of gas emission to the glass house effect.
They also dominated the conference to re-route the course of discussion to
opposite direction, away from the original track to overcome climate change
effect.
Commitment of the industrial states
was not strong enough to lower gas emission till 2020 as increase of global
temperature had come to above 4 degree celcius. “The future of mankind is
gloomy, since industrial states easily delay time and came up with excuses like
financial crisis keep them from being consistent about reducing gas emission”
Dani Setiawan was quoted as saying.
At the climate talk, pollutant
countries: the USA, Uni Europe, China, India so freely influenced the
discussions. The result was that negotiations were losing their meaning, way
beyond the limit of tolerance. America used their political power to influence
the meeting nor did America national corporations give their commitment to
lower emission seriously. China as one of the top contributor of emission, was
advantaged by the powerless negotiations. Uni Europe’s true colors showed in
their diplomacy, who persisted to the promise to reduce emission by 20 percent,
was now clearly visible. “The deal was even exercised through carbon trading
and carbon absorption and storage. A list of solution on climate change was
also not clear. They did not do anything to control economic growth and reduce
consumption” Dani Setiawan remarked.
The world needed act of rescue at
once. Monitoring by NASA satellite was showing melting process of ice in
Greenland and high speed, much wider than a few months ago, which was beyond
scientist’s calculation. They noted expand of Greenland ice melting widest
since satellite monitoring 33 years ago. In tandem with that, report of the
National Board of Disaster Management (BNPB) detected increase of tropical
cyclone of 878 percent in the past six decades. “The world was tormented by
landslides and flood continuously in the past three months. Hundreds of people
died and millions of them live in a state of emergency” Dani reported.
In Indonesia, dry season that lasted
longer than usual and had brought harvest failure to farmers. In addition to
that, many regions in Indonesia, farmers feared shortage of clean water. The
syndrome was equally felt in all of the islands. Meanwhile farmers suffered due
to extreme climate. “In addition to that many fishermen died in stormy seas.
Our record has it there were 86 fisherman who died at sea. The number increased
to 149 in 2011 and by August 2012 the victms were chalked up at 186 people”
Dani said.
While there was lack of commitment
to emission reduction, industrial states were also less supportive to fund
raising for adaptation in the post GCF establishment perioed in COP 17 in
Durban, which was aimed at mobilizing fund raising for climate change was
getting less and less clear. Up till now the mechanism of GCF management was
still vague, including the aspects of funding, allocation, direct access
mechanism of GCF management was still vague, including the aspects of funding,
allocation, direct access mechanism for people, fragile communities,
regulations and proper spending of fund.
Rich, industrial countries
especially America and Uni Europe only made promises. So far not a single
dollar was allocated for GCF While an archipelago country like Indonesia, which
was vulnerable to anomalous climate, did not take any initiative to mobilize
APBN budget to support people’s adaptive capacity to climate change. Low
commitment and global and national level would hindrance effort to step up
adaptation capacity of people among developing nations “They are countries
vulnerable to climate change”.
Business News - September 14, 2012
FORMATION OF TRESTEE: IS IT NECESSARY?
The
Governor of Bank Indonesia Darmin Nasution stated that he was dissecting the
plan to operate Trustee service to manage forex reserves from export yields.
Discussions over Trustee came up after grievances was voiced by companies which
were engaged in production sharing contract (KPS) in the oil and gas sector
(MIGAS).
According to Darmin Nasution, many
parties wished there was Trustee in Indonesia. The status of Trustee was in the
Law of Banking, which was essentially depositing forex from export (DHE) in
banks. The process of discussing forex from export yields with contract-holder
companies in the oil and gas sector was still a long way to go. Generally they
complained that there was no Trustee in Indonesia.
Discussions of DHE including Trustee
had been going on for six to seven months. For Trustee he expected that the
regulations would be released through Bank Indonesia in two or thee months.
Previously it was informed that BI
was scheming up a regulation to step up capacity of banking services at home to
manage incoming DHE. Among them was Trustee, a body which did not only keep DHE
but also managed the forex. The forex reserves, by Trustee management could be
used for investments depending on agreement with exporters.
The objective was that domestic
banks could be confided to render trustee services and manage DHE. This was
done so that DHE which were now deposited in domestic banks would feel at home
in Indonesia.
Now Trustee had become a hot issue
because the management of forex liquidity had been the focus of criticism by
many parties since crisis swept over two continents. One thing was certain that
BI’s plan to form a Trustee to manage DHE was worthy of appreciation although
the execution was not easy.
In fact the plan was a praiseworthy
effort by BI but there were hindrances to the execution like absence of legal
protection, poor infra structure and non-existing banking product. Legal
umbrella was needed because the way it had been, foreign banks which were
entrusted to manage Trustee already had their regulation so the operation was
well secured. If the legal factor was north strong, it might pose danger to
customers.
Besides, the local banks were rated
as not having the right instrument. Trustee had been in operation in the
capital market. In the Stockmarket Trustee was the entrusted party, where
investors deposited their money first in the appointed bank as trusted bank,
and soon to transfer the fund to the related eminent. In this case the legal
protection was only the Bapepam and financial institutions.
Previously BI believed that there
were still foreign companies or trustees who placed their DHE in their holding
companies, not in Indonesia. They were reluctant to place their DHE in
Indonesian banks as they were afraid the fund could not be withdrawn. The final
objective of Trustee was that the Government would receive report from DHE
recipients which declared the amount of products exported.
Today all of the DHE money deposited in local forex banks were usable, but only used for credit and investments while attractive products as being offered by foreign banks were not available. Up to April 2012 last, based on Notification of Exported Goods (PEB) per January 2012 only half of DHE had entered.
Of the total PEB per January
amounting to USD 14.6 billion, the amount received by April was around USD 7.4
billion. Most of the exporters who had not received DHE through domestic forex
banks were those active in the sectors of palm oil, rubber, coffee, and cacao.
As with oil & gas, the hindrance
was DHE accounts entering through trustee bodies abroad. BI coordinated with BP
Migas to respond to that matter. There were 21,600 exportes which were
identified as not having entered their DHE. In this case BI had sent a letter
to Them. Although still not due because export data of January was received in
July 2012 at the latest, BI kept on reminding aboit it.
Or the letters sent out by BI, so
far there were only 200 exporters who responded and explained. Most of them
claimed to have received DHE through domestic forex banks. BI followed up the
responses by checking to the banks mentioned by exporters as recipients of
their DHE. Still in this case BI had to face the problem of finding exporters’
address as many of them were not accurate.
If the DHE rules were obeyed by
importers exporters, it could increase supply of USD at home; Rupiah movement
would be more stable. Unfortunately some business players felt that this
regulation was not efficient enough. Understandable because BI themselves
claimed they were having difficulty in applying Bank Indonesia Regulations
(PBI) No. 13/20/PBI/2-11 which obliged exporters to deposit DHE. Among the
problems was obstacles by exporters network at international level.
The problem arose because
multi-national companies operating in Indonesia had their principal in
Indonesia. Meanwhile interbank accounts were spread out. However, generally
there were many companies which had reported. Therefore to increase awareness
among exporters, BI must continue to step up illumination campaign for
exporters who had not or even did not deposit DHE on July 2.
BI Rules (PBI) regulated that
exporters were obliged to accept all DHE through Indonesian forex banks at the
longest 90 days after PEB. In the event that by July 2, 2012 exporters ignored
this PBI, the Central Bank would put administrative sanction from Rp 10 million
to Rp 100 million.
The banking circles claimed they
were having difficulty in identifying DHE. The point was that exporters could
make PEB direct with the Customs Dept while there were exporters who used the
(T/T) transfer mechanism so banks were only receiving transferred fund
belonging to exporters without submitting documents to banks. By this mechanism
banks could not open PEB data and cross-check them against DHE as there was a
Law of Customs which prohibited it. Only BI, The Customs Dept. and Central
Board of Statistics (BPS) could open data.
Bank could only cross-check PEB
documents against DHE provided the transaction was through letter of credit
(L/C), the point was that it was compulsory to apply for PEB document. However,
transaction by L/C was no longer popular because now nearly 85% of export
transactions were done by using non-L/C documents so banks could only publicize
DHE policy to their customers.
Word was out that the oil & gas
sector was the least receptive to the application of DHE rules. The reason was
low confidence of exporters in the security state of the nation so in times of
emergency exporters could not carry their money away while demand for oil was
always high; besides there was the habit of letting exporters to park their
money abroad. That there was no trustee in Indonesia was only an excuse to
justify their acts. When Rupiah value reached Rp 9.600 per USD, many exporters
sold their dollars to banks.
Business News - September 14, 2012
GOVERNMENT TO DOWNSIZE DOMESTIC CONSUMPTION THROUGH RULES AMENDMENT
The
Ministry of Trade was expecting some understanding among businesspeople in
regard to the plan to revise Regulation of the Ministry of Trade Permendag no.
53/2008 on the guidelines for Management and Development of traditional market,
shopping centers, and modern shops. The revision plan was more focused on
efforts to balance up consumption level of Indonesians. Indonesia ranked first
in terms of consumption in Southeast Asia. At global level, Indonesia was in
fourth position. “The Government’s target is that by 2014, Indonesian
consumption level would drop by up to 95 percent” the Directorate General of
Domestic Trading of the Ministry of Trade Gunaryo disclosed to Business News
(7/9).
Permendag no. 53/2008 specified on
rules of discount for regular prices, discount of fixed prices, discount of
special prices, discount of promotional prices, and promotion expenses. The
Regulations had their strong influence on modern retail business. Meanwhile
there was mounting anxiety that traditional markets would not be able to
compete against modern retails who often offered special prices to consumers.
“We do not wish to be accused of overacting by the regulation amendment plan,
but there is the spirit behind the revision of Permendag. We are only anxious
to reduce over consumption” Gunaryo remarked.
The philosophy of Permendag no.
53/2008 was to set up a balance condition in the real condition of national
industry who were in uncompetitive condition. While being uncompetitive against
modern retail, domestic products were not getting any facility as they
deserved. “There are modern shops which fill up one full floor of their shop
with foreign brands, while domestic products are placed in the shelves in the
dark corners of the shop. This is the sort of condition most undesirable”
Gunaryo said.
Meanwhile the Ministry of Trade had
prepared two tools to restrict foreign brands and to balance up composition of
domestic brands. Meanwhile the local content being mandatory was 80% by the
execution was not even maximized. On the other hand, retailers were also afraid
that some brands which entered the domestic market in Indonesia could be
marketed overseas. “In fact we are not restricting them, but in the revised
regulation the Government was not giving unlimited time for imported products
to stay in outlets or ships” Gunaryo remarked.
In addition to the above, the
revised Permendag Rules also solved scarcity problem of raw materials at home.
However if there were really need for certain raw materials which were not
available at home, the Government would permit import for such. For example
garment products made of special leather. Apparently such raw material were not
available at home, so there was eased regulation for import. “There are brands
of such products in Indonesia. To uphold brand image, they could not use any
raw material there was no other way but to import. In this case the supervisory
and appraisal team would decide”.
Meanwhile Chairman of the Industry
and Specialty Division, Association of Indonesian Coffee Industry and Exporters
(AEKI) Pranoto Sunarto was not worried about the so many foreign brands of
coffee business and coffeeshops. In fact Indonesian coffeeshops were not
inferior to foreign franchise coffeeshops like Starbucks. As a matter of fact
many mall visitors including foreign expatriates were enjoying Indonesian
coffee. “We feel sure that Indonesian coffee can compete against foreign
coffee. Our coffeeshops are stormed by visitors especially during business
hours. To drink coffee in mall has become a lifestyle. The way it has been we
never heard of the word tea shop, there is only coffeeshop”. Soenarto told
BusinessNews sometime ago.
The Tiam coffee from Malaysia was no
threat to Indonesian coffee retailers, because the word Tiam was non existent
in franchise business and therefore there was no evident of any violation of
intellectual right on that brand. Another example was the word warteg in Jakarta
(a word that denotes traditional restaurant) which was found in many streets in
Jakarta. The word Warteg was not a proper noun that existed in the domain of
intellectual rights (HAKI), it was just a common noun that anyone can use. “The
case of Tiam coffee may be regarded as a case of HAKI violation, unless there
is any additional word like Lauw brand Tiam coffee which is a Chinese surname,
but if only the word Tiam Coffee is used, it is not a violation, just like the
way it is with Warteg” Soenarto concluded.
Business
News - September 12, 2012
AWARENESS OF INTELECTUAL RIGHTS AMONG SMALL INDUSTRY STILL LOW
In
Indonesia there were numerous people’s innovative workpieces or creations which
were of high sales value. For that matter the people or whoeover created a
product must have right of creation, and patent right so their workpieces could
not be copied by someone else. Unfortunately people’s awareness and
appreciation for intellectual right and the right to claim intellectual right
in Indonesia was still low.
In Indonesia the rate of violation
of intellectual right (HAKI) was also still high. This was due to low protected
system of HAKI and weak control by Government apparatus on the widespread
occurrence of intellectual right violation. The Government had done their best
to launch illumination campaign for the people about the protection of
intellectual right, process of application, and legal sanction to be put on
violators.
The Director General of IKM of the
Ministry of Industry, Euis Saedah, in Jakarta on Friday (7/9/2012) admitted
that the awareness among small and medium industry circles to register their
creations were still low so very frequently many cases of dispute busted out.
This year the Ministry of Industry set target to register intellectual right of
150 brands and trademarks but only 100 came to apply and only 60 brands passed.
“IKM player are not too enthusiastic about applying for HAKI because the
procedure of application is quite lengthy and there is a synopsis needed for
it” Euis remarked.
And yet according to Euis, the cost
for HAKI application was free. Intellectual rights application consisted of
copyright, patent right, branding, industrial design, and space planning of
integrated circuit. Euis said that she planned to allocate fund of Rp 2 billion
to nature local IKM and apply for HKI in 2013. For the most part the fund would
be spend on publicizing HAKI to IKM and the importance of patenting their
products. Furthermore Euis promised to extend legal assistance for IKM in
intellectual rights desputes.
Euis reminded that it was easy for
anyone to steal IKM brand in Indonesia as they were not patented. According to
Euis copyright was an important matter because someone’s brand could easily be
robbed by someone else who would patent the brand. In this case the owner could
not use his own name and could not sell his product by that brand. Euis said
that the awareness of intellectual right was because IKM never know how to
obtain the right. For that matter the Government planned to lauch an illumination
campaign to protect IKM from having their brand of creation stolen. The
illumination was also meant to motivate IKM small industry to voluntarily
patent their product or brand.
HAKI would give legal protection for
products invented or branded by the people. Moreover to the businessworld,
especially IKM became most important for developing creative economy which was
full of competition. She mentioned two benefits offered by HAKI i.e. firstly to
give added value to products and be beneficial to other people. Secondly, it
would strengthen product competitiveness and at the same time protect every
product being released from any attempt of forgery. Hence she expected it would
have the impact on economic development which would eventually improve people’s
welfare. “I think intensive efforts are necessary to make IKM more concerned
about HAKI” she said.
Business News - September 12, 2012
TO ENHANCE EFFICIENCY OF NATIONAL LOGISTICS
National efficiency was still the
hot issue in the discourse of Indonesia’s economy; this issue was directly related
to the case of Indonesia’s downfall in rating of competitiveness recently.
The unpleasant news originated from
the release of the World Economic Forum (WEF) an Independent organization well
known for their annual meeting of global business leaders and political elite
of the word, intellectuals, and journalists in Davao, Swiss who rated
Indonesia’s economic competitiveness this year in 50th position
among 142 nations, falling by 4 grades against last year.
WEF’s release was indeed a heavy
blow on the Government of RI. Not only because Indonesia’s competitiveness was
way below neighboring countries like Malaysia (25), Brunei Darussalam (28),
Thailand (38) or Singapore (2) Not even because Indonesia ranked with third
world countries who were mostly poor countries in Africa.
WEF release was so painful because
Indonesia had been too overjoyed by some national economic indicators which
were perhaps sparklingly bright amidst the world’s gloomy economy. By Semester
1-2012 Indonesia’s Gross Domestic Product accumulatively arrived at growth
percentage of 6.3% against same period the previous year.
Even Inflation rate per August was
still at safe level, only 4.58% year-on-year. Downturn of competiveness level
by WEF also made all other achievements seemed flavorless. Such was perhaps the
things that made businesspeople of the national logistics sector feel uneasy.
It seemed reasonable that the
Association of Indonesian Logistics (ALI) pied the Government to increase
budget for infra-structure in the APBN State Budget by threefold to reduce
logistic cost.
Ali felt that to arrive at logistic
cost of 10% in 2025, the Government needed to increase allocation of infra
structure fund as per next year. The allocated budget for infra structure in
APBN at that time was about 2%, way below that of China who allocated fund of
around 6% for infra structure.
According to ALI, with additional
budget for infra-structure, infra structure development to support logistic
activities would also be made faster, so logistics cost could be automatically
reduced.
Previously, the Coordinating Minister
of Economy Hatta Rajasa disclosed the Government set target for national
logistics fund at 10% for 2025, lower than logistics cost today at 14.08%.
Today logistics cost in Indonesia was way higher compared to other countries in
Asia which was only around 4% - 10%. Therefore infra structure was one of the
Government’s priorities.
The national logistics system was
today still not efficient, the weak point was connectivity which needed to be
developed in order to strengthen competitiveness and improve people’s welfare.
Beside increasing allocation for infra-structure, the Government must also
withdraw subsidy for oil so the fund could be used for revitalizing
transportation armada as well as infra-structure development.
If the subsidy fund was transferred
for infrastructure development and revitalization of transpiration armada, it
would lower logistic cost in the long run. Human resources was one important
aspect to be observed. Indonesia needed personnel who were competent in
logistics management, but today trained personnel in logistics were still
scarce in Indonesia, which tend to stagnate the logistics operation itself.
Logistics companies frequently seek
for personnel from abroad since logistics managers of high quality was still
limited in number at home. Logistics personnel needed proper education and
training. To be exact, logistics personnel in Indonesia needed certification on
logistics so the quality would be well guaranteed whereby to bring progress for
logistics business in Indonesia.
About the target to set logistics
expenses to become 10% in 2025 as set by the Government, it was considered as
realistic enough to assume average annual inflation at 5%, the target was
sizable enough. It was still conservative but quite reasonable, because the
inflation factor must be considered as well. Provided that the pre-conditions
were met, the target would hopefully be met.
The instruments to support the
national logistics system in enhancing efficiency in economic activities in
economic activities in fact already existed, i.e. through the Masterplan
Program of Economic Acceleration and Expansion (MP3EI). The MP3EI program had
the logistics betterment as the main agenda.
To illustrate, the selling price of
lemon from China was cheaper than that from Pontianak, Indonesia because the
transportation cost (including logistics) was lower in China. The price of
cement in Papua was twentyfold of the price in Java due Transportation and
logistics factors.
Building of airport and seaport as
an effort to upgrade transportation system would bring the greatest benefit if
the logistics system were also developed. In this case the prioritized factor
was not the transportation armada like sophisticated aircrafts and ships, but
more on the available good and efficient logistics as supporting factors.
Improvement of the logistics system
must be on the hardware and software side which were vital and must therefore
be prioritized because Indonesia was way behind other neighboring countries
(peers group).
In ASEAN 5, including Indonesia, the
Philippine, Thailand, Singapore, Malaysia and Indonesia, in terms of logistics,
was most probably lowest by rank. It seemed reasonable to say that Indonesia’s
neighboring countries were more ready to face the worst of the chain effect of
crisis in Europe compared to four other ASEAN states as their infra structure
and logistics were more ready.
Business News - September 12, 2012
DEFICIT IN CURRENT TRANSACTION OVERSHADOWS RUPIAH AND IHSG
The
Moneymarket
In Spite of the continuous
depreciation of Rupiah against USD, Bank Indonesia as monetary authority rated
such was something natural. BI had their commitment to always remain in the
foreign currency market in order to stabilize, because the market must be
balanced with inflow of foreign capital through investments. The amount of USD
in circulation was still in accordance with market demand and the underlying
economic condition.
So far the average exchange rate
value of Rupiah against USD was Rp 9,270 BI would maintain Rupiah exchange rate
value to keep it from fluctuating too much. Based on BI’s mid-rate (6/9) Rupiah
was seen to weaken to Rp 9,592 against the previous Rp 9,588 per USD.
Generally speaking market players
were today observing the development of potential deficit of Indonesia’s
current transaction as reference in doing transaction. If the threat could be
anticipated, most likely investor’s perception would be positive and inject
positive sentiment on Rupiah.
Marketplayers were also observing
economic growth for the future. It was expected that investment and export
could contribute to the pursuit of economic growth 2013 at 6.8%. But BI was
pessimistic that economic growth could be lifted any higher because the global
economic condition today was still signified by lessened demand in Europe. As
BI saw that export was still recovered, they projected Indonesia’s economic
growth in 2013 would only be 6.3% - 6.7% amidst optimism of a better global
economic prospect.
Somehow BI’s projection was
different from Government’s assumption in RAPBN State Budget 2013 of 6.8% due
to difference in time calculation based on the latest economic condition. It
was expected on the latest economic condition. It was expected that the
difference of assumption of macro assumptions between BI and that of the
Government would not ignite and debate among marketplayers as it might result
in varied economy.
It was noteworthy that Euro the
common currency once elevated by 3% of the highest level in two months against
USD after the President of Euro Central Bank Mario Dhargi announced to buy
bonds. 17 Euro zone member states maintained margin level against most of the 16
world currencies amidst ECB’s optimism that ECB would announce measures to be
taken to overcome debt crisis.
Meanwhile Australian USD was
exchanged at it lowest value level in more than 7 weeks before release of
report which showed increasing unemployment in August. The market responded
positively to ECB signal who planned to take significant measures. At least
Euro would settle at the present level or perhaps to inch up toward conducting
of ECB meeting.
The market was quite shocked to hear
announcement of the Central Board of Statistics (BPS) about the increases
prices of air transportation, tofu, and tempe which triggered inflation in the
month of August 2012 to the point of 0.95%. According to BPS the main uplifted
of consumers price index (IHK) in August was increased prices of transportation
and seasonal food during the fasting month, Lebaran and new school semester
year. The greatest contributor to inflation in August was food (0.35%) and
transportation, communication followed by financial services (0.23%).
The only thing was BPS did not worry
about inflation level of last August which was rated as relatively controllable
because it was only Slightly higher than inflation of August 2011 which was
0.93% based on inflation data of August, inflation of 2012 would not each 5%
because inflation rate in the ensuing month would be lower.
High import contributed to
downpressing of price at consumers’ level, especially due to up jump of import
from countries who treated Indonesia as an alternative export destination
country like China. Inflation of 2012 was projected to be only around 4.7% -
4.9% so BI rate was predicted to settle at 5.75% till end of year.
The market would also respond
positively to the development of Indonesia’s forex reserves by end of last
August which reached USD 109 billion. The figure was an increase of around USD
2.45 billion against that of end of July at USD 106.55 billion. Increase of
forex reserves was thanks to income from export especially oil an gas.
In addition to the above, increase
of forex reserves also originated from term deposit of foreign currency and
good sales of auction of Government bonds. Once Indonesia posted highest forex
reserves of USD 114.93 billion, but simultaneous with deficit of balance of
payment in quarter II, the position slumped. Downturn of forex reserves was
also the monetary cost of Government’s effort to protect Rupiah exchange rate
value which once crumbled.
It seemed reasonable that BI
projected Rupiah value against USD till end of 2012 to be in the range of Rp
9.200 – Rp 9.400 per USD. Among the reasons was that during the second half of
2012, deficit of current transaction would contract to only around 2% of GDP.
This estimate was based on the expectation that the global economic condition
and price of export commodity would be better, while being supported by the
BI’s policy and the Government.
The subsiding restlessness of the
global economy would pull inflow of foreign capital higher which would
eventually lift up surplus of capital and financial balance. In 2013 the
prospect of Rupiah value would still be influenced by the prospect of global
economy. Performance of current transaction was predictably better with support
of export performance although import was still high due to high domestic
demand.
Inflow of foreign capital especially
foreign direct investment (FDI) was expected to increase to sustain surplus of
capital and financial balance sheet. Based on performance of balance of
payment, BI projected Rupiah exchange rate value in 2013 would be in the range
of Rp 9,300 – Rp 9,500 per USD.
The prediction must be accompanied
by caution, including of the prolonged crisis in Europe and economic slowdown
in some partner states which might affect export performance. As for this week,
Rupiah exchange rate value was predicted to move in the range of Rp 9,565 – Rp
9,615 per USD with a tendency to inch up.
The
Capital Market
During closing session last Thursday
(6/9), index of IHSG strengthened by 27.505 points or 0.67% to the level of
4,084,836 cheered by the Asian stockmarket. During closing of session 1, IHSG
strengthened by 14.770 points (0.36%) to the level of 4,090.122 Meanwhile index
of LQ45 rose by 3.393 points (0.49%) to the level of 701.174 Increase of this
index of ECB meeting in troubleshooting debt crisis.
And yet during the last session on
Monday early last week (3/9) IHSG was closed to rise by 57.617 points (1.42%)
to the level of 4,177,948 Meanwhile index of LQ rose by 11.201 points to the
level of 706.733 Strengthening of IHSG was driven by buying spree of shares
which were cheap. Index managed to break through the psychological level of
4,100.
Again foreign investors were
accumulating shares. Local investors were not less passionate to chase shares
which were already cheap. Nine shares managed to strengthen, being driven by
the buying spree; only one sector was still under pressure, i.e. agriculture
the consumer’s sector took the lead in the strengthening process.
In other part of the world, (6/9)
shares in Wall street were going by leaps and bound, breaking through the
highest level since the fall of Lehman Brothers which ignited the crisis of
2008. The strengthening was triggered by the plan to but promissory notes in
Europe by the European Central Bank (ECB).
The President of ECB Mario Draghi
had kept his promise of last July to do anything he could to troubleshoot debt
crisis in Europe. The Europe Central Bank intended to buy bonds without limit
in order to save crisis-entangled European states.
This ECB plan, which was not
approved by Brundesbank from Germany planned to buy promissory notes and keep
them for a period of three years, naturally by mandate of ECB. ECB also planned
to maintain interest level at lowest level of 0.75% to tame inflation as well
as to ease credit cost.
Index of Dow Jones jumped up by
244.52 points (1.87%) to the level of 13.292.00 Index of Standard & Poor’s
500 jumped to the level of 1.432.12, the highest position since May 2008,
before the global financial crisis swept the earth. Index of Composite Nasdaq
skyrocketed by 65.12 points (2.12%) to the level of 8,134.39.
The upjump of index of Dow Jones was
triggered by the plan to buy promissory notes in European states by ECB and
positive sentiment from data of America’s economy which exceeded expectations,
i.e. in the service sector and number of employments.
Movement of index at the global and
local stockmarket in the last few months were much influenced by news from
Europe. Responding to this, index of S&P had risen by 8% since early July.
Meanwhile Asian stockmarkets were open to rise and indicated that index serving
as regional reference would book the biggest increase in the past one month.
Bloomberg reported that upturn of
the regional shares was in line with ECB’s decision to give room to unlimited
bond buying. According to analysts, bond buying plan by ECB was a long term
measure to find solution to crisis. The plan was rated as having the potential
to minimize continued risk in Europe. They stressed there was no dount about
it.
Nearly all stock markets in Asia
were already opened last Friday (7/9) after the US stockmarket was closed to be
appreciated. Nikkei 225 in Japan rose by 1.89% to the level of 8,844,57; index
of Tai-ex in Taiwan rose by by 1.32% to the level of 7,423.19. Index of Kospi
at the South Korea stockmarket jumped by 2.13% to the level of 1.921.23. Index
of S&P/ASZ at the Australian stockmarket inched up by 0.57% to the level of
4,337.5. Index of Straits Times in Singapore also inched up by 0.87% to the
level of 3,015.4. Not less notable FTSE KLCI in Malaysia inch up by 0.16% to
1,620.62. Furthermore index of NZX in New Zealand also rose by 1.19% to the
level of 3,737.4.
Business News - September 12, 2012
PRIOR TO APEC SUMMIT, CONSTRUCTION OF NUSA DUA – NGURAH RAI – TANJUNG BENOA TOLL ROAD ID ACCELERATED
Expected to operate before Asia
Pacific Economic Cooperation (APEC) Summit to be held in September 2013,
construction of Nusa Dua – Ngurah Rai – Tanjung Benoa toll road is accelerated.
Head of Communications Center at the
Ministry of Public Works, Waskito Pandu, in Bali, Tuesday (9/4), said that the
progress up to September 3, 2012 already reaches 32.4% of 32.1% of the target set.
It is set that in October, the progress will reach 75%, and in April 2013, it
will be inaugurated and will operate in July 2013.
President Director of PT Jasa Marga
(Persero), Tbk, Adityawarman, said that the progress of construction of the
10Km-length toll road has reached 24% on August 18, 2012. The company projected
that construction of all the pile foundations can be completed by December
2012. “Construction progress has reached 24%. In some sections, construction
progress has reached more than 30%, but there is only one section which is only
at 18% of completion progress. But, we expected that all pile foundations will
be complete by December this year”, he said on Monday (9/3).
According to him, acceleration of
toll road construction is maybe because it requires not too large area, namely
5 hectares for construction of entry and exit gates in Tanjung Benoa, near
Ngurah Rai airport and Nusa Dusa.
For construction of toll road worth
Rp 2.3 trillions, Jasa Marga has received a Rp 1,739 billion fund from a syndicate
of banks consisting of Bank Mandiri, Bank Rakyat Indonesia, and Bank Central
Asia.
Head of Toll Road Regulator (BPJT)
of the Ministry of Public Works, Achmad Gani Gazali, said that land clearance
for the toll road can be speeded up land clearance for toll road can be speeded
up considering that a major part of the land required is owned by shareholders
of the project. “The one which is community land is located near Nusa Dua, and
the remaining is owned by other shareholders in the consortium, such as the one
in Tanjung Benoa which is owned by PT Pelindo III and the one in Ngurah Rai
which is owned by PT Angkasa Pura I. So, the land clearance process should not
be difficult”, he said.
The Nusa Dua – Ngurah Rai – Tanjung
benoa toll road is managed by PT Jasa Marga Bali Toll, which is a consortium of
companies with majority shareholders consisting of PT Jasa Marga (60%), and the
remaining shares are owned by PT Pelindo III (20%), PT Angkasa Pura I (10%),
Bali Toursim Development Center (1%), PT Hutama Karya (2%), PT Wijaya Karya,
Tbk (5%), and PT Adhi Karya, Tbk (2%).
Vice Minister of Public Works,
Hermanto Dadak, explained that construction of Nusa Dua – Ngurah Rai – Tanjung
Benoa toll road is aimed at reducing traffic congestion on Ngurah Rai – Tanjung
Benoa and Ngurah Rai – Denpasar toll roads. The toll road will have a special
lane for motorcycles and will be a triple-decker.
With an investment of Rp 2.3
trillions and concession period of 45 year, Nusa Dua – Ngurah Rai – Tanjung Benoa
too road will be operated with a preliminary tariff of Rp 10,000 for category I
vehicles and Rp 4,000 for category VI vehicles.
The toll road will be constructed
simultaneously with construction of Dewa Rutji underpass. Construction of the
underpass worth Rp 136.19 billions is expected to reduce traffic congestion on
the road from Nusa Dua to Ngurah Rai airport.
Business News - September 7, 2012
PROTECTION OF HOUSEMAIDS MUST BE HUMAN RIGHTS ORIENTED
Housemaids
(PRT), the most up to date term was pevorative for domestic workers in home who
helped employers in their non-profit daily activities.
Member of Commission IX of House
Hidayatulloh felt PRT was becoming a significant element who made life easier
for individuals especially in their domestic life in the urban areas.
Signification of the one element of
life was not ignorable from the nation’s viewpoint considering that there were
probably around 11 million of recorded Indonesian citizens who had the
profession as housemaids (PRT).
“It seems reasonable if further on
housemaids were given an important position in the context of legal protection
which acknowledge the role and rights and responsibility of that profession”
Poempida disclosed to Business News (4/9).
Member of the Working Committee for
the PRT Bill in House stated that the complexity of problems in the PRT
profession was basically not different from that of other professions. However
the specific nature of PRT was that basically the employers were individuals
(famiies) not an organization while the scope of PRT activities embarked on the
private zone of the employer.
Definitely PRT had direct access to
private or confidential information of the employer as the result of direct
interactions in thei daily activities. “Domestic security of the household very
often relied on the integrity and responsibility of PRT” Pempida said.
As a profession generally held by
the marginal’s, protection for PRT must be given and be managed on the basis of
human rights principles; in this case the position of PRT was in the domain of
law and constitution of RI.
The process of passing the PRT Bill
was somehow dilemmatic in some issues: firstly, the basic mechanism of
remuneration referred to the demographic social economy as parameter which
could not be generalized in all of Indonesia. Secondly, the mechanism of
control of the decision makers. Thirdly, formalization of the PRT profession
which needed standardized competence and trainings. Fourthly, the legal process
in case of dispute between the PRT and the employer. Fiftly, the career
stairway of PRT which was non-existent.
Reactions from those in the position
of employers was generally their dislike for formalities and administration
formalities as consequences of the implementation of the PRT law in the future.
Commission IX of House had their
commitment to answer all of the above challenges by scheming up a Law which was
based on the Constitution of the Republic of Indonesia.
“Compilation of references and
various simulations of system thinking were the base that I use as reference to
be logically and with full sense of responsibility take part in the process of law
making of this PRT Law” Pempida concluded.
Business News - September 7, 2012
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