Plantation industry aims big despite economic crisis

Betting on higher prices for top commodities and the emergence of new markets, the country’s plantation industry is seeking to buck the trend and expects export values this year to increase by 16 percent. Agriculture Ministry’s plantation protection director, Herdrajat, said the income from exports can be raised to US$ 21.68 billion from last year’s $18.85 billion. Meanwhile, the government also plans to revitalize up to 290,000 hectares of CPO, cacao and rubber plantations in 27 provinces this year.
Source: PA Asia - Public Affairs and CSR from The Jakarta Post, 16 March, p.13

Economic growth is still set at 4.5%

During a press conference yesterday, President Susilo Bambang Yudhoyono said although a number of countries have revised their growth target, the government and the House of Representatives (DPR) so far will not revise its target growth that has been set previously at 4.5%. One of the efforts to sustain economic growth, he added, is by maintaining the domestic consumption.
Source: Media Indonesia, PA Asia - Public Affairs and CSR from 16 March, p.13

Industries only grow 2.5%

The growth of the manufacturing industries in the first quarter of 2009 is predicted to plunge to only 2.5% compared with last year’s first quarter, namely 5.5%. This means that the total added value in the national production has dropped and if such situation continues, many manufacturing industries may collapse. According to the analysis by the Ministry of Industry, the sharp decline is caused by the weakening of several basic industries (such as wood, metal and chemical) and the decline of export of several labor-intensive industrial sectors.
Source: PA Asia - Public Affairs and CSR from Bisnis Indonesia, 17 March, p.1

The licenses of 18 malls could be revoked

The South Jakarta municipality government will summon 18 building and supermarket managers to discuss about the Regional Regulation No.2 Year 2002 on Private Market that obliges buildings and malls to provide spaces for SMEs and small vendors. The building and supermarket managers include PT Lion Superindo, PT Alfa Retailindo, PT Carrefour Indonesia, PT Matahari Putra Prima, PT Pacific Place, etc. Irawan D. Kadarman, General Affairs PT Carrefour Indonesia, said his company is trying to comply with the regulation. He admitted that Carrefour’s hypermarket in Lebak Bulus has not provided spaces for SMEs and small vendors.
Source: PA Asia - Public Affairs and CSR from Koran Tempo, 18 March, p.B1

Shell is seeking for ownership in Natuna up to 60%

Royal Dutch Shell is seeking for a 30%-60% ownership as a senior partner in the Natuna D-Alpha block as a compensation for the technology it would apply and transfer to Pertamina. President Director of PT Shell Indonesia, Darwin Silalahi said Shell does not want to become a junior partner in Natuna with only a maximum 15% ownership. Meanwhile, the Director General of Oil and Gas Evita Legowo said the final decision on the size of the block’s ownership (who gets how much) will be determined by the government later.

Master list

PT PMA may obtain favorable import duty reductions on imported production equipment, spare parts and raw materials that are not locally available. PT PMA shall submit Master List application to BKPM or the Customs and Excise Office (in certain circumstances). After the Master List is approved, then PT PMA receives an import duty reduction on the item listed in the letter to a maximum 5% duty rate.

Government establishes infrastructure financing company

The government has established financing company PT Sarana Multi Infrastruktur (SMI) which will finance infrastructure projects, Asia Pulse reported on Friday.
SMI, which is expected to start operation in April, will provide financial support for projects especially ones failing to attract investors but considered having good prospects. SMI will start with an initial capital of Rp1 trillion ($90 million) to be provided by the government, Bisnis Indonesia reported.
Farid Arif Wibowo, an official of the Fiscal Policy Agency of the Finance Ministry, said the government will issue bonds to increase the capital of SMI.
In the first phase the bond will be valued at Rp3 trillion, Wibowo said, adding up to Rp20 trillion more funds will be raised later from the market.
He said SMI will serve as a holding company, adding that the financing agent will be the Indonesia Infrastructure Financing Facility (IIFF), to be established by the government and donor consortiums.The World Bank and Asian Development Bank have pledged a loan of Rp2 trillion for IIFF and Rp1 trillion in equity from other donor agencies, he said.