KSEI INCOLVED NASDAQ IN DEVELOPING STOCKMARKET INSFRASTRUCTURE

In the effort to build infra-structure toward anticipating global competition and readiness to join the Asean Economic Community 2015, PT Kustodian Sentral Efek Indonesia, [KSEI], Indonesia Central Securities Depository, collaborated with Nasdaq. On the other hand Nasdaq was developing US stockmarket system, i.e. development of Central Depository and Book Entry Settlement System [C-Best] Next Generation [Next-G]. In this collaboration project KSEI and OJK logo were being displayed at Nasdaq building in Times Square New York, N.Y.

In this collaboration KSEI adopted X-Stream Technology [post trading] belonging to Nasdaq according to the specification needed. C-BEST next-G would be supported by Business Continuity Plan [BCP] i.e. the latest security system to secure data confidentiality and application of Disaster Recovery System [DRC] which safeguard continuity of service operations by minimizing down time in times of disaster.

“The collaboration is an effort to anticipate AEC next year, when market competition would be tighter at international level.  “KSEI President Heri Sunaryadi stated at BEI building in Jakarta on Friday [17/10].

The technology was expected to step up KSEI role as Central Securities Depository [CSD] which was competitive in the region and was in line with the implementation JATS Next-G Trading system adopted by BEI sometime ago. The C-BEST Next G which was being developed would soon accommodate SWIFT ISO 20022 formatted massages which was internationally valid and targeted to be applicable in December 2016. Such would enable KSEI make cross boder settlements with other countries.

Heri stated that the C-BEST next G was follow up of development phase process done by KSEI since 2012 including the design study process completed this year. As KSEI main system. C-BEST was an integrated electronic platform which had been supporting transaction activities since 2000, especially by the time scriptless trading was implemented in Indonesia’s stockmarket.

“The  C-BEST system in existent today could accommodate up to 3,000 transaction settlements per minute while the C-BEST Next G was targeted to handle up to 3 million investors in Indonesia’s stockmarket with processing capacity being increased by more than six fold of the previous capacity it around 20,000 settlements per minute.” He said.

KSEI data had it that in 2013 total settled transaction through C-BEST was 1,34 trillion units with frequency posted at 37,5 million. the amount posted increase in 2012, with total accomplished transaction amounting to 1.05 trillion units with frequency posted at 29.09 million.

Executive Vice President of Market Technology Nasdaq Lars Ottersgard remarked further that the collaboration set up with KSEI was an important step in “post trade” business owned by Nasdaq. To develop C-BEST NEXT G, KSEI would adapt the X-Stream Technology product of Nasdaq according to the specifications required. This technology was expected to step up the role of KSEI as Central Depository [CSD] who could compete at regional level. “We gladly welcome collaboration with KSEI and ready to be part of Indonesia in the future,” Lars Ottersgard remarked.

C-BEST was an interated electronic platform which supported shares transaction settlement activities by way of book transferring since year 2000, to be exact during implementation of scripless trading in Indonesia’s stockmarket. (SS)

Business News - October 22, 2014

MINISTRY OF INDUSTRY IMMEDIATELY RESOLVES PENDING MATTERS UNTIL THE END OF THE YEAR

There is until a number of pending matters expected to be completed within this year, both for the Ministry of Industry of the United Cabinet II or the remainder of this year as part of the period of office of the Ministry of Industry under the President-elect Joko Widodo and Vice President Jusuf Kalla. After officially opening the Cahaya Timur Exhibition at Plaza Industry on Tuesday (October 14), Industry ,Minister, M.S Hidayat, stated that the pending matters (the rest of discussion which is still pending) are, among others, the complementation of RPP RIPIN (National Industry Development Master Plan) and the completion of land for sugar industry development.

“Because the discussion about RIPIN has just started in February, we expected that before the end of this year, the discussion will be finished because now the discussion has reached the level of harmonization with the Ministry of Justice and Human Rights. The Ministry of Industry should be more cautious given that stipulation of RIPIN must include a period of 20 years to come, “he said, accompanied by a number of officials of the Ministry of Industry and the Director General of Domestic Trade of the Ministry of Trade, Srie Agustina.

In addition, there is also a resolution of gas issue, which is associated with the facilitation of the construction of fertilizer plant of Kaltim-5. Related to sugar mills, this problem is related to the provision of land, because it is expected that there will be changes in the revitalization of sugar mill industry, related to the provision of relief for machinery purchase. In regard to the development of the natural gas industry and construction of Teluk Bintuni Industrial Area, West Papua, there has been gas allocation for the development of fertilizer industry in Teluk Bintuni at 180 mmscfd, which availability is guaranteed.

As for gas allocation for the development of petrochemical industry will be sought from other sources in consideration of the economic value. The Industry Minister has sent a letter to the president regarding the draft Presidential Regulation on the development of natural gas industry in Teluk Bintuni, West Papua and the follow-up through the completion process of the Presidential Regulation on the development of natural gas industry in Teluk Bintuni.

Eastern Indonesia consists of 12 provinces that have relatively similar natural resources. The strength of each region in Eastern Indonesia lies in the ability of the local human resources and the availability of productive land. However, of the abundant wealth, only part of it that has been exploited. That’s why innovation is needed through natural resource based creative industries.

“We realized that there are many industries, both nation-scale ones or those who have exported their products abroad. 44 small and medium industries (SMIs) in handicraft sector from various provinces in eastern Indonesia originate, among others, from West Nusa Tenggara, South Sulawesi, Gorontalo, Maluku, North Maluku, Papua, and West Papua. The products exhibited include coconut shell handicrafts, batik, weaving crafts, silver crafting, cukli, shells, jewelry, and a variety of food products made of chocolate, seaweed, and passion fruit.

In 2013, the GDP of SMEs contributes 34% to the industrial GDP. With a ratio of 60% of SMEs in Java and 40% outside Java expected through various government programs, this year the number has changed to 70%. The government is promoting exhibition like this, because in eastern Indonesia, creativity-based industry subsectors can be cultivated in a more specific scope, especially for arts, handicrafts, design, and fashion. (E)

Business News - October 17, 2014

MINISTRY OOF AGRICULTURE: FOOD AND VEGATABLE CONSUMPTION IN THE COUNTRY SHOULD BE IMPROVED

The level of fruit and vegetable consumption in Indonesia is low. While in fact, it is important because it can reduce death risk. One of the reasons of low fruit and vegetable consumption in Indonesia is public concern over the risk of pesticide contamination. If fruits and vegetables are washed property, the pesticides found in fruits and vegetable will fall out, so it is safe for consumption. Pesticides can be diluted with water. So, washing fruits and vegetables can remove the pesticides from the fruits and vegetables.

Meanwhile, to increase fruit consumption, the Ministry of Agriculture encouraged investors to invest in the horticulture sector. Domestic production increase is also necessary for the welfare of farmers. Director General of Horticulture of the Ministry of Agriculture, Hassanuddin Ibrahim, in Jakarta, on Tuesday (October 2014), said that in addition to encouraging investment and consumption of fruits and vegetables, he also said that there were some efforts made by the Ministry of Agriculture to improve productivity.

For fruits, he added, the Ministry of Agriculture distributed superior quality tree seeds freely to farmers in all regions in accordance with the agro-climate. Then, multiply the seasonal fruits, such as papaya, banana, melon, watermelon, pineapple, that produce fruits throughout the year. The importance of increasing seasonal fruit production, Hasanuddin continued, is to anticipate the availability of annual seasonal fruits, such as durian, mango, rambutan, mangosteen, and others. And, for vegetables, he said, it would develop environmentally friendly urban farming and tech farmers how to grow vegetables.

However, he continued, independence of farmers and regions in the horticulture sector is not only met through productivity of vegetables. However, farmers also need to independently develop other supporting factors such, such as pesticides, horticulture clinics, seed system and organic fertilizer. In terms of land, Hasanuddin said, horticulture did not need a large area, such as food crops or plantations. Yet however, the Ministry of Agriculture still asked for a guarantee of availability of land from the local government.

Hasanuddin considered that the rate of fruit and vegetable consumption by the Indonesia society is still far short of the ideal figure set by the world food agency (Food and Agriculture Organization/FAO). In fact, Indonesia is a large producer of a variety of fruit and vegetables. It is said that this potential not yet correlates with the consumption level because it not yet fulfills the requirement of the world food agency. He said that FAO requires the consumption of fruits and vegetables ideally at 65.75 kg per capita per year. Meanwhile, fruits and vegetable consumption in Indonesia is only 40 kg per capita per year.

And, compared to some neighboring countries, the level of vegetable consumption in Indonesia lags far behind. In Singapore, for example, the level of vegetable consumption has reached 120 kg/capita/year, well above the FAO recommendation. In China, the rate is even higher, reaching 270 kg/capita/year. While, in Cambodia and Vietnam at 109 kg/capita/year and 85 kg/capita/year, respectively. Therefore, he asserted that increase of fruit and vegetable consumption in Indonesia is very important. Because directly or indirectly, horticulture sector is part of four successful agricultural development programs for the next five years, which is included in food diversification program.

To further develop and promote Indonesian horticultural commodities, he said, there should be a revamping of trading system and marketing system. Development or horticultural commodities is also strongly influenced by demand and change in consumer tastes, both at home and abroad. He reminded that competition in horticultural commodities is very tight, both in the domestic and global markets. Therefore, there should be an increase of competitiveness and reputation of horticultural products. (E)

Business News - October 17, 2014

SOON LNG FROM TANGGUH WOULD ENTER PGN FSRU LAMPUNG

PGN FSRU Lampung would in the near future resive additional supply of LNG in 2 cargo delivery from Tangguh LNG plant Papua. The cargo which entered PGN FRSU Lampung on October 26 2014 was the second and third cargo which entered Lampung after delivery in July 2014 when in July 2014 PN FRSU Lampung received the first delivery.

The second shipment would be done in October 2014. The trime needed for shipment was around 1 week so it was due to arrive in Lampung on October 26 2014. The third cargo would enter PGN FSRU Lampung on November 22, 2014. “Now there is only finalization of administrational procedure of the delivery” President of PGN LNG Indonesia Nisi Setyobudi stated in Jakarta on October 14 2014.

Nisi expected that after the second and third delivery of LNG cargo it would be followed by 4^th delivery. “We expect that the fourth shipment would be exercised by end of December 2014 so PGN FSRU Lampung could accommodate 4 shipments” Nisi concluded.

Upon arrival in Lampung, Liquid natural Gas [LNG] would undergo loading and unloading from LNG carrier to FSRU Lampung. In the further process to be distributed to customers. Buyers of gas from FSRU Lampung were among others PLN.

Floating Storage and Regasification Unit [FSRU] was a floating vessel which was equipped with facilities to store LNG to undergo regasification process. PGN FSRU Lampung had the power to regasificate maximum of 240 MMSCFD per day, PT Perusahaan Negara [Persero] Tbk or PGN hired the Lampung FSRU from PT Hoegh LNG Lampung. (SS)

Business News - October 17, 2014