Thursday, 10 December 2015
INDONESIA’S ECONOMY STILL WELL AND UNDER CONTROL
The Minister of Finance
Bambang Sumatri Brodjonegoro rated that on the overall Indonesia’s economy was
today still well and good and under control. The statement was made on the basis
of assessment of Q II presented after the meeting conducted by the FKSSK Forum
in Jakarta on Thursday (13/8).
The meeting held at the Ministry of Finance office,
beside being attended by the Minister of Finance was also attended by the
Ministry of Economy Darmin Nasution, Chairman if OJK Muliaman D. Hadad,
Governor of BI Agus Martowardojo, and Chairman of the Board of Deposit
Insurance Agency (LPS) Heru Budiargo. “In a situation of today it is necessary
to hold FKSSK meeting. The moment was significant with the presence of Darmin
Nasution as new Minister of Economy. Based on assessment of Q II economy was
still under control”, the FKSSK meeting concluded.
Furthermore the Minister of Finance stated that in
responding to global economy, FKSSK agreed to maintain Rupiah stability, as
Rupiah was today being undervalued. “Stability of the financial system is still
well maintained. Outcome of the Surveilance Indicator was still under control.
FGKSSK would stay on the alert,” he said.
Furthermore the Minister of Finance stated that Indonesia’s
economy climate was governed by global economy especially when China was
devaluating their Yuan. “The influencing factor is more on the external” So
this was a combination between external factor and low wmitent’s performance.
For that matter FKSSK agreed to take sound measures.” He said.
To cushion shocks, the Minister said, the FKSK team was
focused on maintaining Rupiah exchange rate value in accordance with national
fundamental economy. Accordingly BI would stay on guard at the market to
protect Rupiah. “In preventing Rupiah weakening, FKSSK had the commitment to
forward JPSK Bill to the Parliament. The Government had also forwarded the JPSK
Bill to the Parliament had also forwarded the JPSK Bill to the Parliament. FKSSK
is optimistic Semester 2 would be better,” the Minister concluded. (SS)
Business News - August 19, 2015
GOVERNMENT SOLIDIFY CREATIVE ECONOMY INTO NEW POWER SOURCE
The Ministry of Industry
Saleh Husin felt sure that Creative was highly potential as a new power core to
sustain national economy, because it was reliant on endless resource. “The
invaluable resource is creative juices of the creators which would constantly
grow to produce added value. Moreover with a conducive climate it would prove
itself to be contributive to economy,” he said.
Upon delivering his speech at the opening ceremony of
“Fashion and Accessories Products Expo” at the Industry Expo Plaza on Wednesday
(12/8) he set forth that fashion and handicrafts was one of the economic
subsectors most contributive to national economic growth in the aspect of
increasing added value, employment, number of companies and exporting. “For
that matter, the Ministry of Industry kept promoting national creative
industry, which grew by 7% a year,” he said.
In the opening ceremony of the Expo, there was also
present Chairman of the National Handicrafts Council (DEKRANAS) Mufidah Jusuf
Kalla with the Management of Dekranas from various provinces among others
Jakarta, Aceh, South Sumatra, Lampung, Jambi, West Java, West Kalimantan,
Southeast Sulawesi, Papua, NTT and NTB exposing fashion products and
accessories.
In that opportunity the Ministry of Industry disclosed
that in 2014 – 2015 the added value from Creative Economy was estimated at Rp.111.1
trillion. The greatest contributor of added value were among others the
subsector of fashion, culinary, and handicraft. “The highest growth was
attained by the subsector of handicraft with export growth of 11.81% followed
by fashion 7.12%, advertising 6.02% and architecture 5.59%.”
Development of Creative Economy in 2013 showed positive
trend, with growth of 5.76% or above the average of national economic growth
5.74% with added value of Rp.641.8 trillion or 7% of national GDP. In terms of
employment, this sector could absorb 11.8 trillion people or 10.7% of national
workforce, followed by business units numbering 5.4 million units or 9.7% of
total business units. Total export was posted at Rp118 trillion or 5.7% or
total national export.
According to Saleh Husin, traditional handicraft could
produce premium products and was rich in traditional values whether in the form
of handicraft, woven objects, ceramics or garments which were varied and
colorful. For that matter all efforts to promote the creative industry must be
supported.
Besides, creative masterpieces could uplift Indonesia’s
image abroad and enhance pride of using domestic products at home.
Furthermore in the effort to develop national creative
industry, the Ministry of Industry had taken strategic measures to increase
added value of the fashion industry through technical counseling, marketing and
promotion campaign, machinery support and protection on intellectual rights.
Animation and Software
Industry
The widespread use of cellular gadgets and multi media
was expected to be the propeller of growth of the content industry in
Indonesia. The open characteristics of the industry means opportunity to
develop especially among the young generation.”The animation industry
especially interactive games and software creations, although the contribution
to GDP was low was highly potential for development,” the Minister of Industry
Saleh Husin said in Denpasar on Tuesday (11.8).
The Creative Industry was one of the important pillars of
national economic development be cause it breeds an intelligent generation in
the globalization era.
During the opening session of International Conference of
Creative Industry (ICCI) 2015, the Ministry of Industry appreciated the
conducting of ICCI 2015 which was expected to be a communication forum between
the Government, academicians and layers of the creative industry.
Of 15 subsectors of the creative economy, 3 subsectors
contributed most to GDP, i.e. Culinary Rp.209 trillion or 32.5%, Fashion Rp.182
trillion or 28,3% and Handicraft Rp.93 trillion or 14.4%. Particularly the
performance of Fashion and Handicraft industry, export of Fashion was Rp.76.7
trillion, an increase of 7.5% against previous year
Meanwhile the subsector of interactive Games and
softwares, although the contribution to GDP was still small, this industry was
highly potential as indicated by growth of added value, i.e. above 10% on the
average per year through 2010 – 2013.
In Denpasar the Ministry of Industry set up Bali Creative
Industry Center (BCCI) which was expected to bring solution to problems faced
by the small and medium industry like limited stock of raw materials, limited
research and technology, handicaps in marketing and promotion and protection
against stealing of creative ideas. “Being the ‘house’ of creative people, I am
sure BCIC would bear innovative ideas whereby to be competitive in the Free
Trade era” Saleh Husin stated.
Broadly speaking BCIC had 5 main roles, i.e. as
innovation and intellectual Rights Center, education and Training Center,
Marketing and Promotion Center, Software Industry Development Center, and
Business Incubation Center. “The year 2015 was the initial year for BCIC
activities. The activities were varied, including among others branding,
creative and entrepreneurship training center, design competition, archaic
reconstruction, workshop and product display center,” the Minister said. (SS)
Business News - August 19, 2015
DROUGHT AID ADJUSTED TO CIRCUMSTANCES
This year EL Nino was
predicted to be moderate and strong; but it should be borne in mind that Elnino
only happened south of the equator not north of the equator. Only Java was
affected but not Sumatra except Lampung. Kalimantan was not affected. Minister
of Agriculture Amran Sulaiman made this statement upon monitoring drought in
Kalimantan on Thursday (3/8).
In Kalimantan there were 1,000 ha of rice fields and in
Sumatra there were 2,000 ha of rice fields to be maximized. Drought in Sumatra
and Kalimantan was a blessing. The soil was mostly swamp so in the dry season
the water descends and they planted rice. The Ministry of agriculture had
procured water pumps, tracktors and combined hasvester so farmers could do
replanting after harvest.
About drought, the Minister denied that he like a fire
brigade, only acted after to late. The Government had anticipated drought by
rehabilitating irrigation network covering 1,4 million ha. The pumps already
distributed numbered 21,000 units.
“Many people questioned why did I have to wait until the
dry season to distribute pumps. In Bodjonegoro there was 10,000 ha of dry land
but there is the Bengawan Solo river. By using pumps the area could be saved.”
In indramayu there were 11,000 ha of rice fields drying
up but there was the Cimanuk river which still contained water. With just 2 big
pumps the are a could be saved. “The Government do not simply extend help but
would consider the local condition. We excavate deep or shallow wells” he said.
Drought should not be regarded as 14 million ha which was
the total area of rice fields in Indonesia. Of that area 76.3% were already
harvested, the rice was in the barn and could not be disturbed.
What was to be saved now was the remaining 20% or around
2 million ha till September – October. A short term plan that could be done was
to make artificial rain and pumping. For the medium range by making ponds and
shallow wells, in NTT 1.000 was already 1,000 shallow wells which could
overcome drought for the next 20 – 30 years.
As with beef the situation was now gradually normalizing.
Meat from the feedlotters were already released, traders were already active
once more and prices were down. Now it was for the Provincial Governments and
the Polices to conclude whether there was rule being broken or not.
About stock of meat the Government had asked every
feedlotter to report the population of cow the had. Out of 41 companies 35 had
reported and the conclusion was: no shortage of stock.
The Minister of Agriculture had made sudden inspection to
PT TUM; the result was there were 21,000 cows in stock, meaning there was no
problem in terms of supply.
“If feed lotters were deliberately holding stock, they
would not be given any recommendation in the future” the Minister said. The
Directorate of Animal Farm was asked to seek for a niche in Law whereby to put
sanction.”
Amran was puzzled by the increase of cattle price when
was no trigger. At PT TUM price of beef was now Rp.44,000 per kg alive while
last month it was Rp.36,000./kg. (SS)
Business News - August 19, 2015
THE PROSPECT OF E-COMMERCE GROWING SIGNIFICANTLY
The Ministry of
Communication and Information predicted business prospect in e-commerce in 2015
would grow significantly. The growth of E commerce was propelled by bettered
technology access and direct connectivity to consumers. Moreover consumers of
adult age were more daring to experiment and they were more consumptive.
Players in the industry were suggested to strengthen branding the way it was
produced by local producers in the cellular phone industry.
The Ministry of Communication and Information predicted
total value of e-commerce would come to USD 10 billion to USD 20 billion this
year end. Minister Rudiantara stated on Thursday (13/8) that e-commerce as one
of the sub-sectors of creative economy was constantly growing. He mentioned
that in 2013 the value came to USD 8 billion, in 2014 in increased to USD 12
billion and by this year and predicted to be USD 18 billion – USD 20 billion.
He added on that in the next 5 years e-commerce total
value in Indonesia was expected to e-commerce total value in Indonesia was
expected to come to USD 100 billion. Pursuant to that matter the Government
consisting of 8 institutions would make a roadmap for e-commerce. He said that
the roadmap would serve as guidelines for companies of various levels like
start-up companies, small business (UKM) or even well established corporations.
For that matter Rudianto suggested players for e-commerce
in Indonesia to use .id as domain to minimize bandwidth expenses paid to
overseas servers. The Minister disclosed that he had prepared facilities. He
saw that many players of e-commerce in Indonesia today were still using .com as
domain. He said that use of .id could be adjusted to the location of transaction
domination. If the transaction was international .com could still be use as
domain. Rudiantara stressed that if players of e-commerce were of international
transactions constituted only 5% of their total sales, they were suggested to
use i.d.com
Similar statement was a made by Andi Budimansyah chairman
if PANDI Indonesia Internet Domain Management. He agreed with Rudiyantara who
pled e-commerce players in Indonesia to use .id as domain. Andy stated there
were 3 important points using i.d. as domain. Firstly bandwidth espenses did
not have to flow to other country if local domain was used. Andi said that
domestic content must be increased to draw users of foreign internet to enter Indonesia.
Secondly, access to internet would be faster if domestic
domain was used. Internet users did not have to access overseas server so the
access was relatively faster. Thirdly the case of domain authority. If the
overseas domain was used, the arrangements would be managed by foreigners such
as pre-requirements for domain users and where the DNS was located.
Businessplayers welcomed Government’s initiative to
prepare electronic trading regulation in Indonesia. The Government was asked
not just to focus on regulating distribution of goods but also services on the could.
Chairman if ASPINDO Haryadi Sukamdani stated that electronic trading must be
regulated so the Government could control and at the same time collect money
from tax.
He said that the trend of doing transactions by internet
kept increasing. All sellers had to do was to communicate and send the message
by email of chatting. The consequence was that the Government could not check
products and tax incurred because the goods could not be detected physically.
Harriyadi showed as example products traded by e-commerce were usually of
graphic design category, architectural design, interior design, video games and
animation film. (SS)
Business News - August 19, 2015
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