Wednesday, 22 October 2008
Jakarta business opportunities
Jakarta Investment Board (BPM & PKUD), a Jakarta Provincial Government's body that specialized in facilitating foreign investment in Jakarta is planning to held a seminar on investing opportunity in Jakarta with theme "Jakarta Business Opportunities", Jakarta Business Forum - Invest Jakarta 2008. The event will be held in Jakarta on October 23rd, at Gran Melia Hotel Jakarta. For more information about Invest Jakarta 2008, please log on to www.investjakarta.org.
Biofuel policy reduces palm oil exports
Palm oil exports may decline by 1.5 million metric tons following the implementation of a policy on the mandatory use of renewable energy, a government official said Wednesday, Bloomberg reported. “In relation to the mandatory policy for bio-energy issued last month, we see that the use of agricultural products for alternative energy will increase,” Bayu Krisnamurthi, a deputy to the Coordinating Minister for Economic Affairs, said, adding that it will cut palm oil exports.
The government has issued a ministerial decree that will make the use of biofuel mandatory from 2009. The decree states that for biodiesel, transportation must use a blend of 1% palm-based biodiesel and 99% diesel oil, while industry and power plants must use a blend containing 2.5% and 0.25% palm-based biodiesel respectively.
By 2010, the palm-biodiesel content will be increased to between 2.5%-3% for transportation, 5% for industry and 1% for power plants. For bioethanol, the use of a 1-5% blend of bioethanol and 99-95% of gasoline for transportation will become mandatory in 2009. Industry will have to use a 5% blend of bioethanol -- which is made from cane molasses and cassava feedstock -- and 95% gasoline next year, increasing to 7% by 2010.
Evita Legowo, Director General of Oil and Gas, said the government would start trials for the blends from October 1, Reuters reported. Indonesia's biofuel industry can produce between 1.3 million tons to 1.5 million tons annually, said Krisnamurthi. Capacity may double to three million tons by 2010, he said. “The country's palm oil output will be more than 19 million tons next year and exceed 20 million in 2010” he added. Food and chemicals industry may use 4.5 million tons this year and next, and five million tons in 2010, Krisnamurthi said.
The government has issued a ministerial decree that will make the use of biofuel mandatory from 2009. The decree states that for biodiesel, transportation must use a blend of 1% palm-based biodiesel and 99% diesel oil, while industry and power plants must use a blend containing 2.5% and 0.25% palm-based biodiesel respectively.
By 2010, the palm-biodiesel content will be increased to between 2.5%-3% for transportation, 5% for industry and 1% for power plants. For bioethanol, the use of a 1-5% blend of bioethanol and 99-95% of gasoline for transportation will become mandatory in 2009. Industry will have to use a 5% blend of bioethanol -- which is made from cane molasses and cassava feedstock -- and 95% gasoline next year, increasing to 7% by 2010.
Evita Legowo, Director General of Oil and Gas, said the government would start trials for the blends from October 1, Reuters reported. Indonesia's biofuel industry can produce between 1.3 million tons to 1.5 million tons annually, said Krisnamurthi. Capacity may double to three million tons by 2010, he said. “The country's palm oil output will be more than 19 million tons next year and exceed 20 million in 2010” he added. Food and chemicals industry may use 4.5 million tons this year and next, and five million tons in 2010, Krisnamurthi said.
Government offers tax benefits to attract investments
The government is offering tax benefits for certain new investments as part of efforts to improve the investment climate amid the deepening global financial crisis, the Coordinating Ministry for Economic Affairs said Monday, Dow Jones reported.
"The government will continue to improve the investment climate and national competitiveness with various policies, which are not only expected to mitigate the impact of the global financial crisis, but also to keep economic growth momentum, which has been on the rise in the last five years," the ministry said in a press release.
The government said that companies investing in certain industries will be subject to lower income tax for six years and will be able to amortize assets over a longer period and may receive compensation for losses for between five and 10 years.
The measures will benefit investors in diverse sectors, including those in steelmaking, forestry, geothermal, animal husbandry, low-rank coal mining, textile, pulp and paper, oil refining, small-scale gas liquefaction, various chemical and agricultural industries, automotive spare parts and electronics.The ministry said the policy will be evaluated within two years. The steps are part of Presidential Instruction No. 5/2008 on Focus Economic Program 2008-2009, and are specifically aimed at improving the investment climate.
"The government will continue to improve the investment climate and national competitiveness with various policies, which are not only expected to mitigate the impact of the global financial crisis, but also to keep economic growth momentum, which has been on the rise in the last five years," the ministry said in a press release.
The government said that companies investing in certain industries will be subject to lower income tax for six years and will be able to amortize assets over a longer period and may receive compensation for losses for between five and 10 years.
The measures will benefit investors in diverse sectors, including those in steelmaking, forestry, geothermal, animal husbandry, low-rank coal mining, textile, pulp and paper, oil refining, small-scale gas liquefaction, various chemical and agricultural industries, automotive spare parts and electronics.The ministry said the policy will be evaluated within two years. The steps are part of Presidential Instruction No. 5/2008 on Focus Economic Program 2008-2009, and are specifically aimed at improving the investment climate.
Inflation hits 12.14% in September
Inflation during September came in at 0.97%, up on the August figure of 0.51% and taking the year-on-year figure to 12.14%, the Central Bureau of Statistics (BPS) stated on Monday, Detikcom reported.
The cost of food through the Muslim fasting month of Ramadhan was the major contributor to the higher inflation with a rise of 1.9%, Ali Rosidi of BPS told a press conference.
Nevertheless all cost areas showed higher trends. Packaged foods, drinks and cigarettes rose by 0.9%, housing, electricity and other household utilities were up by 1.22%. Clothing rose by 0.5%, health expenses by 0.3% and transport and communications by 0.22%.
Inflation was experienced in every city in Indonesia in which measurements are taken, with the highest in Tarakan in East Kalimantan at 2.8% and the lowest in Manado, North Sulawesi at 0.03%.
The cost of food through the Muslim fasting month of Ramadhan was the major contributor to the higher inflation with a rise of 1.9%, Ali Rosidi of BPS told a press conference.
Nevertheless all cost areas showed higher trends. Packaged foods, drinks and cigarettes rose by 0.9%, housing, electricity and other household utilities were up by 1.22%. Clothing rose by 0.5%, health expenses by 0.3% and transport and communications by 0.22%.
Inflation was experienced in every city in Indonesia in which measurements are taken, with the highest in Tarakan in East Kalimantan at 2.8% and the lowest in Manado, North Sulawesi at 0.03%.
Tuesday, 14 October 2008
Report of capital investment activity
After obtaining a BKPM Approval, PT PMA has obligation to submit a report of Capital Investment Activities (“Laporan Kegiatan Penanaman Modal or LKPM”) to BKPM. PT PMA that has not yet obtained a Permanent Business License (“IUT”), shall submit a Semi Annual Report of LKPM to BKPM. Whilst, PT PMA that has obtained IUT shall submit an Annual LKPM. The said report is in the standard form of BKPM. Furthermore, the copies of LKPM also shall be delivered to the relevant government institutions, such as Department of Trade, Bank Indonesia or the Regional Office of the relevant technical department.
Government to cut fuel prices
The state oil and gas company Pertamina announced to cut nonsubsidized fuel prices for industry by up to 13,2 per cent. Premium (gasoline) will be cut by 5,4 per cent, kerosene by 6,9 per cent, diesel by 5,9 per cent, diesel fuel by 6,5 per cent, diesel V10 by 7,8 per cent, and fuel oil by 13,2 % per cent. The new prices will be effective starting from Wednesday (1/10). Pertamina said the price cut was due to lower Mid Oil Platts Singapore by 5,4 per cent to 13,2 per cent and as the rupiah weakened by 2,1 per cent. Pertamina said it is adjusting fuel price twice every month based on the international oil price.
Bank Indonesia to regulate foreign investment products
Bank Indonesia (BI) will soon issue a regulation on foreign investment products to anticipate the future prospects of financial markets. “As a seller and foreign products investor, a bank must be careful,” said BI deputy governor, Muliaman Hadad, last Friday. He said the regulation will involve Stock Exchange Monitoring Agency (BPPM) and financial institutions to avoid overlapping. After the Lebaran holidays, the central bank will hold discussions to accelerate the implementation of the new regulation. According to Muliaman, the bank must be the institution responsible for publishing securities and assuring that concerned banks and securities are registered in the country of origin. The products must also be clearly described so that consumers are aware of the risks involved and the expected revenues.
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