The negotiation between the Board of Toll Road Management (BPJT) and PT Citra Wasphuttowa on the development of Depok-Antasari Section of toll road was till at deadlock, as agreement was still not arrived at between the two parties especially on the magnitude of expansion of land-clearing compensation for the project which burdened both parties.
Nurdin Manurung, Head of the Board of Toll Road Management (BJPT) in his disclosure to Business News in Jakarta Tuesday [8/9] said that the continuity of road building of the Depok-Antasari section of toll road depended on the Toll Road Enterprise [BUJT] in this case PT Citra Wasputhowa as investors, whether they were wiling to pay for the costly land clearing expenses in that section zone or preferred to resign from the contract with the Board of toll Road Management [BJPT]. “The final decision is not in BJPT anymore, whether they wish to quit or not. Tell then to call me on the phone directly” Nurdin remarked.
As known, the price of land along the Depok-Antasari had skyrocketed, resulting in the tremendous expansion of the cost of project. Evaluation by BPJT on that section of road concluded that the Depok-Antasari Section was financially not feasible and therefore no longer worthy of continuation. This was due to the fact that cost of land clearing which was formerly estimated at Rp. 700 billion had swollen up to become Rp. 2.1 trillion. While the Government’s capacity to cover up was only Rp. 1.8 trillion, so that investors should increase their investment up to Rp. 300 billions.
The additional investment worth Rp. 300 billion was felt as a heavy burden to investors. Nevertheless they still persist to run the project, hoping that the complementary expenses for land clearing be borne by the Government – and yet the contract between PT Citra Wasphuttowa and BPJT toll road management, as written in the letter of Agreement (PPJT) signed on May 2006 was way overdue.
In fact cases like the Depok-Antasari project could have been avoided if the component of land clearing expenses be excluded from the PPJT. This was the point to be proposed by BPJT Management to the Minister of Finance. BBJT believed that if land clearing expanses would be borne by the Government so that investors were only responsible for building and operating the toll road, there would be certainty in investment climate at the project.
The case of the Depok-Antasari toll road was such that, if the revision of the agreement with PPJT were agreed upon, it would be necessary to repeat the tender of the entire project so the rights were no longer in the hands of PT Citra Wasphuttowa, if another participant came up with better terms.
Wednesday, 16 September 2009
Proposes Budget for National Cacao Movement 2010 Rp. 1 Trillion
The Department of Agriculture proposed that budget for the National Movement of Kakao Production and Quality Development [Gernas Kakao] be increased. For 2009, the budget for Gernas Kakao Movement was Rp. 983.711 billion, whilst for 2010 the Ministry of Agriculture proposed the amount of Rp. 1 trillion.
Rizki Muis, Director of Spices Plantations and Freshener [TRP], the Directorate of plantation, Department of Agriculture disclosed this to Business News in Jakarta, Wednesday [7/9]. The Proposal for Kakao National Movement [Garnas Kakao] for 2010 was still to be discussed with Commission IV of Parliament, because the fund was derived from the budget of the Ministry Finance 2010.
In the National Kakao Movement [Garnas] the Government took three actions i.e. rehabilitation, rejuvenation, and intensification up to 2011. The Government sets target of rehabilitation of people’s cacao plantation covering 450 thousand ha specified as follows: rejuvenated land 70 thousand ha, rehabilitation 235 thousand ha and intensification around 145 ha.
The National cacao Movement 2009 made evaluations which concluded that the rehabilitation program had been successfully carried out due to favourable weather where the rainy season had not come. If the rainy season had come rehabilitation of plantations would be difficult. So far the rehabilitation had been carried out by way of side connection on old plants with premium clones.
To exercise this rehabilitation plan, up till now the premium seeds produced by Center of Coffee and Cacao Rehabilitation [Puslikoka] Jember was still at distribution stage. Report from the regions disclosed that around 1 million seeds were spread out to the Gernas Cacao operation zones. “The El Nino long drought would hopefully not affect the process of planting new seeds”.
In 2008, the Government designated 40 regencies in 9 provinces which were to be the target of Gernas Cacao national movement campaign, i.e. : South Sulawesi, West Sulawesi, Southeast Sulawesi, Central Sulawesi, Bali, East Nusa Tenggara, Maluku, West Papua and Papua.
Meanwhile, intensification by way of fertilizing were admittedly not running well, since the fertilizers to be distributed had not arrived yet. Hopefully by October next fertilizing could be exercised so that the intensification process should not be hindranced. For this, support of the provincial government was called for.
With this program the Government expected productivity of people’s cacao could be back to normal, reaching 1.5 tons/ha. This will bring positive impact to national cacao production for the next 2 or 3 years; national cacao production was projected at 1.3 to 1.5 million tons. “Presently a good number of plants were infected by pest so that cacao plantation productivity was only 500-600 kg/ha”.
Rizki Muis, Director of Spices Plantations and Freshener [TRP], the Directorate of plantation, Department of Agriculture disclosed this to Business News in Jakarta, Wednesday [7/9]. The Proposal for Kakao National Movement [Garnas Kakao] for 2010 was still to be discussed with Commission IV of Parliament, because the fund was derived from the budget of the Ministry Finance 2010.
In the National Kakao Movement [Garnas] the Government took three actions i.e. rehabilitation, rejuvenation, and intensification up to 2011. The Government sets target of rehabilitation of people’s cacao plantation covering 450 thousand ha specified as follows: rejuvenated land 70 thousand ha, rehabilitation 235 thousand ha and intensification around 145 ha.
The National cacao Movement 2009 made evaluations which concluded that the rehabilitation program had been successfully carried out due to favourable weather where the rainy season had not come. If the rainy season had come rehabilitation of plantations would be difficult. So far the rehabilitation had been carried out by way of side connection on old plants with premium clones.
To exercise this rehabilitation plan, up till now the premium seeds produced by Center of Coffee and Cacao Rehabilitation [Puslikoka] Jember was still at distribution stage. Report from the regions disclosed that around 1 million seeds were spread out to the Gernas Cacao operation zones. “The El Nino long drought would hopefully not affect the process of planting new seeds”.
In 2008, the Government designated 40 regencies in 9 provinces which were to be the target of Gernas Cacao national movement campaign, i.e. : South Sulawesi, West Sulawesi, Southeast Sulawesi, Central Sulawesi, Bali, East Nusa Tenggara, Maluku, West Papua and Papua.
Meanwhile, intensification by way of fertilizing were admittedly not running well, since the fertilizers to be distributed had not arrived yet. Hopefully by October next fertilizing could be exercised so that the intensification process should not be hindranced. For this, support of the provincial government was called for.
With this program the Government expected productivity of people’s cacao could be back to normal, reaching 1.5 tons/ha. This will bring positive impact to national cacao production for the next 2 or 3 years; national cacao production was projected at 1.3 to 1.5 million tons. “Presently a good number of plants were infected by pest so that cacao plantation productivity was only 500-600 kg/ha”.
House’s Commission IV Agreed on Budget for Organic Fertilizers of Rp. 6.2 Trillions
House’s Commission IV agreed on allocation of budget for organic fertilizers of Rp. 6.2 trillions. This amount would be allocated in form of activity of development of 10,000 organic fertilizers processing units. Each unit consisted of 30 cows, compost house, organic fertilizers process machine, means of transportation, and training on how to make organic fertilizers. This was one of the conclusions of the meeting between House’s Commission IV chaired by Chairman of Commission IV, Arifin Junaidi, and Minister of Agriculture, Anton Apriyantono, at the Parliament Building.
And, allocation of budget for organic fertilizers would be given in form of direct fertilizers aid. The fertilizers aid was a compensation for reduction of subsidy for chemical fertilizers from Rp. 17.5 trillions to Rp. 11.3 trillions.
Commission IV also agreed on a temporary ceiling of Work & Budget Plan of Ministerial Institution (RKA-KL) for the Ministry of Agriculture for 2010 of Rp. 7.95 trillions. The RKA-KL consists of Pure Rupiah Value at Rp. 7,602 trillions, from Foreign Loans-Grants at Rp. 313 billions, and from Non-Taxable State Revenue at Rp. 36.1 billions.
Minister of Agriculture, Anton Apriyantono, said that allocation of RAPBN 2010 of Rp. 7.95 trillions would be allocated to various work programs, amongst others, for increasing farmers’ welfare at Rp. 3,146 trillions, for increasing food security at Rp. 2,961 trillions, for increasing competitiveness and added value of agricultural products at Rp. 547 billions, for control and accountability of apparatuses at Rp. 33.1 billions, for government administration at Rp. 1,188 trillions, and for middle & high education at Rp. 74.9 billions.
And, allocation of budget for organic fertilizers would be given in form of direct fertilizers aid. The fertilizers aid was a compensation for reduction of subsidy for chemical fertilizers from Rp. 17.5 trillions to Rp. 11.3 trillions.
Commission IV also agreed on a temporary ceiling of Work & Budget Plan of Ministerial Institution (RKA-KL) for the Ministry of Agriculture for 2010 of Rp. 7.95 trillions. The RKA-KL consists of Pure Rupiah Value at Rp. 7,602 trillions, from Foreign Loans-Grants at Rp. 313 billions, and from Non-Taxable State Revenue at Rp. 36.1 billions.
Minister of Agriculture, Anton Apriyantono, said that allocation of RAPBN 2010 of Rp. 7.95 trillions would be allocated to various work programs, amongst others, for increasing farmers’ welfare at Rp. 3,146 trillions, for increasing food security at Rp. 2,961 trillions, for increasing competitiveness and added value of agricultural products at Rp. 547 billions, for control and accountability of apparatuses at Rp. 33.1 billions, for government administration at Rp. 1,188 trillions, and for middle & high education at Rp. 74.9 billions.
Absorbability of Housing Subsidy for 2009 did not Achieve Target
State Minister for Public Housing, Moh. Yusuf Asy’ari, estimated that absorbability of housing subsidy in 2009 would only reach Rp. 1.5 trillions due to the effect of 2008 global crisis on the national housing sector. “It was difficult to achieve target, therefore we will submit a proposal for re-allocation of budget”, he said in a meeting with House’s Commission V.
Low absorbability of housing subsidy in 2009 was also due to the supply of landed houses (Rsh and Rusunami) not as expected. High bank rate in early part of this year, liquidity problem, and difficulty in obtaining construction credit caused difficulty to developers to expand businesses. And, low absorbability of housing subsidy was also due to decrease or commercial interest rates.
In fact, in early part of this year, BI rate and interest rate remained high, but at present they went down, and it made subsidy claim now. Other factors that caused low absorbability of housing subsidy was un-optimal allocation of subsidy for private residences. Based on the above, the State Ministry for Public Housing proposed a re-allocation of subsidy of Rp. 1 trillion for other programs, such as moratorium.
Secretary of the State Ministry for Public Housing said that the proposal had been submitted to the Ministry of Finance. It was necessary to increase absorbability of subsidy. “We expect that now we still have the time to implement this program”, he said. This is an attempt taken by the State Ministry for Public Housing in order to maximize absorbability of subsidy.
Low absorbability of subsidy was also as a result of coordination with housing stakeholders which indicated that housing development rate would not achieve target. The amount of subsidy set by the government for 2009 was Rp. 2.5 trillions. This amount was to support construction of 170,000 Rsh and 44,000 Rusunami. But, because of the global economic crisis, amount of supply decreased by around 30%. Meanwhile, Chairman of Central Board of Association of Indonesian House and real Estate Developers (Apersi), Fuad Zakaria, stated that the government’s action to re-allocate unabsorbed subsidy fund on other programs was unnecessary if government’s plan at the early part of the year was well prepared.
He continued that a plan should be carefully prepared and consider future possibilities.
Low absorbability of housing subsidy in 2009 was also due to the supply of landed houses (Rsh and Rusunami) not as expected. High bank rate in early part of this year, liquidity problem, and difficulty in obtaining construction credit caused difficulty to developers to expand businesses. And, low absorbability of housing subsidy was also due to decrease or commercial interest rates.
In fact, in early part of this year, BI rate and interest rate remained high, but at present they went down, and it made subsidy claim now. Other factors that caused low absorbability of housing subsidy was un-optimal allocation of subsidy for private residences. Based on the above, the State Ministry for Public Housing proposed a re-allocation of subsidy of Rp. 1 trillion for other programs, such as moratorium.
Secretary of the State Ministry for Public Housing said that the proposal had been submitted to the Ministry of Finance. It was necessary to increase absorbability of subsidy. “We expect that now we still have the time to implement this program”, he said. This is an attempt taken by the State Ministry for Public Housing in order to maximize absorbability of subsidy.
Low absorbability of subsidy was also as a result of coordination with housing stakeholders which indicated that housing development rate would not achieve target. The amount of subsidy set by the government for 2009 was Rp. 2.5 trillions. This amount was to support construction of 170,000 Rsh and 44,000 Rusunami. But, because of the global economic crisis, amount of supply decreased by around 30%. Meanwhile, Chairman of Central Board of Association of Indonesian House and real Estate Developers (Apersi), Fuad Zakaria, stated that the government’s action to re-allocate unabsorbed subsidy fund on other programs was unnecessary if government’s plan at the early part of the year was well prepared.
He continued that a plan should be carefully prepared and consider future possibilities.
Presentation of National Standard of Working Competence in the Forestry Sector
Effective and efficient management of forest resources called for readiness of expertise, education and training of personal who operated them. Therefore, a specialized education and training plan, based on proper standard of competence in forestry management became a pressing necessity.
This was disclosed by the Minister of Manpower and Transmigration Dr. Ir Erman Suparno, MBA, M. Sii on the occasion of Presentation of National Standard of Working Competence [SKKNI] of the Forestry Sector to the Minister of Forestry MS Kaban at the Manggala Wanabakti Building of the Department of Forestry.
In that same opportunity, the National Board of Professional Certification [BNSP] represented ny Head of BNSP Tjepy F. Alowie submitted Letter of Accreditation to the Boar of Professional Forestry Certification [LSP-HI] of the Department of Forestry who had the authority to issue specialized certification in the forestry sector.
The Minister of Manpower and Transmigration stated that the application of SKKMI certificate in the forestry sector would hopefully prepare and promote the competency of human resources of the forestry industry, especially those related to planning, exploitation, rejuvenation and rehabilitation of forests.
Furthermore it was set forth that SKKNI was used as main reference in the formation of educational and training program as well setting up of examination syllabus for certification of working competence. This standard of working competence was also applicable for recruitment procedures, personnel posting, and advancement programs for employees.
The process of professional certification which referred to the standard of working competence would enable monitoring over workers’ performance and standard of professionalism of forestry personnel, which would eventually lead to better forestry management effectiveness.
The standard of working competence specified worker’s capability including the aspects of knowledge, skill, and professional attitude which was relevant to duties and employees’ qualification. The standard of competence was based on the industry’s actual need as agreed and acknowledged by the stakeholders.
Test of Competence was exercised by the National Board of Professional Certification [BNSP] through the Board of Professional Certification [LSP]. Meanwhile the Department of Forestry itself had since 2006 formed Indonesia’s Forestry LSP which was to undertake certification of professional competence on professional segments in forestry, among others the Head of Forest Management, Forestry Illuminators, Evaluators of Forestry Performance, Technical Personnel of Perum Perhutani, and Forestry Technicians.
This was disclosed by the Minister of Manpower and Transmigration Dr. Ir Erman Suparno, MBA, M. Sii on the occasion of Presentation of National Standard of Working Competence [SKKNI] of the Forestry Sector to the Minister of Forestry MS Kaban at the Manggala Wanabakti Building of the Department of Forestry.
In that same opportunity, the National Board of Professional Certification [BNSP] represented ny Head of BNSP Tjepy F. Alowie submitted Letter of Accreditation to the Boar of Professional Forestry Certification [LSP-HI] of the Department of Forestry who had the authority to issue specialized certification in the forestry sector.
The Minister of Manpower and Transmigration stated that the application of SKKMI certificate in the forestry sector would hopefully prepare and promote the competency of human resources of the forestry industry, especially those related to planning, exploitation, rejuvenation and rehabilitation of forests.
Furthermore it was set forth that SKKNI was used as main reference in the formation of educational and training program as well setting up of examination syllabus for certification of working competence. This standard of working competence was also applicable for recruitment procedures, personnel posting, and advancement programs for employees.
The process of professional certification which referred to the standard of working competence would enable monitoring over workers’ performance and standard of professionalism of forestry personnel, which would eventually lead to better forestry management effectiveness.
The standard of working competence specified worker’s capability including the aspects of knowledge, skill, and professional attitude which was relevant to duties and employees’ qualification. The standard of competence was based on the industry’s actual need as agreed and acknowledged by the stakeholders.
Test of Competence was exercised by the National Board of Professional Certification [BNSP] through the Board of Professional Certification [LSP]. Meanwhile the Department of Forestry itself had since 2006 formed Indonesia’s Forestry LSP which was to undertake certification of professional competence on professional segments in forestry, among others the Head of Forest Management, Forestry Illuminators, Evaluators of Forestry Performance, Technical Personnel of Perum Perhutani, and Forestry Technicians.
G-20 Reviews Stimulus Package
The G-20 states made their commitment to maintain economic stimulus package until economic recovery could roll with certainly and the monetary market remained steady. This official statement was to be presented by the week end [4/9/2009] by the time the Minister of Finance and governors of central banks of the developing and advanced states meet in London, England. In preliminary meetings toward summit meeting by end of this month, the G-20 also discussed prospects of the world’s economy, turbulence in banking bonus, and to tighten up financial regulations and to reform international monetary institutions.
“The stimulus that was released too soon at present has its alarming risk, with significant implications on growth and unemployment”, remarked Head of the International Monetary Fund [IMF] Dominique Strauss-Kahn. Global recovery, according to Strauss-Kahn, would most probably run slow due to the high level of unemployment which might continue until next year. In the USA itself, the unemployment level on last August rose to 9.7% where 216.000 workers lost their jobs. This figure was bigger compared to previous year where unemployment was at 9.4% level. But in Europe, the unemployment level by July 2009 hit the highest record in the past 10 years at 9.5%.
“The riskiest thing was to think that because measures had been taken, recovery is well guaranteed. There is no country who would be satisfied to see these results” said England’s Minister of Finance Allistair Darling who acted as host of the G-20 Meeting. Meanwhile Governor of the Europe Central Bank Jean Claude Trichet stated that the global monetary crisis was not over so the European Monetary Authority would continue the policy until crisis was really overcome.
Trichet remarked that although the process of economic contraction was coming toward end, right this moment was not the time to escape from crisis. “Uni Europe is determined to take firm action in time to come” he said. Signs of improvements in some economic indicators drove ECB to gradually increase forecast reference level.
ECB estimated that Gross Domestic Product [GDP] in Europe would be up by 0.2% by 2010, more optimistic compared to previous forecast which projected contraction of 0.3%. This year ECE projected growth of Uni Europe to be minus 4.1%, better than the previous forecast of minus 4.6% “There is still a great deal of uncertainty and volatility to appear in the coming data” Trichet underscored. The G-20 states were: Argentine, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and United States of America.
“The stimulus that was released too soon at present has its alarming risk, with significant implications on growth and unemployment”, remarked Head of the International Monetary Fund [IMF] Dominique Strauss-Kahn. Global recovery, according to Strauss-Kahn, would most probably run slow due to the high level of unemployment which might continue until next year. In the USA itself, the unemployment level on last August rose to 9.7% where 216.000 workers lost their jobs. This figure was bigger compared to previous year where unemployment was at 9.4% level. But in Europe, the unemployment level by July 2009 hit the highest record in the past 10 years at 9.5%.
“The riskiest thing was to think that because measures had been taken, recovery is well guaranteed. There is no country who would be satisfied to see these results” said England’s Minister of Finance Allistair Darling who acted as host of the G-20 Meeting. Meanwhile Governor of the Europe Central Bank Jean Claude Trichet stated that the global monetary crisis was not over so the European Monetary Authority would continue the policy until crisis was really overcome.
Trichet remarked that although the process of economic contraction was coming toward end, right this moment was not the time to escape from crisis. “Uni Europe is determined to take firm action in time to come” he said. Signs of improvements in some economic indicators drove ECB to gradually increase forecast reference level.
ECB estimated that Gross Domestic Product [GDP] in Europe would be up by 0.2% by 2010, more optimistic compared to previous forecast which projected contraction of 0.3%. This year ECE projected growth of Uni Europe to be minus 4.1%, better than the previous forecast of minus 4.6% “There is still a great deal of uncertainty and volatility to appear in the coming data” Trichet underscored. The G-20 states were: Argentine, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and United States of America.
Government Imposes Safeguard Measures on Dextrose Monohydrate Products
The Government was taking safeguard measures in the form of specific entry tax on every imported Dextrose Monohydrate originating from China, France, Italy and South Korea through stipulation of the Regulation of the Ministry of Finance No. 133/PMK.011/2009 dated August 24, 2009.
“Based on observation result of the Committee of Indonesian Trading Security [KPPI] for the observation period 2004-2007, there has been a shoot up of examined imported products resulting serious loss in domestic products; therefore the ministry of Trade proposed imposition of safeguard-action charges on Dextrose Monohydrate” remarked Head of KPPI Halida Melani.
This PMK Rules regulated the imposition of safeguard import tax on Dextrose Monohydrate with HS : 1702.30.10.00 and 1701.40.00.00, expect on glucose syrup, dextrose monohydrate pharma grade and maltodextine.
The period of Safeguard Import Tax: was imposed for 3 (three) years, specified as follows first year Rp. 2.700/kg, year II Rp. 1.400/kg and year III Rp. 2.100/kg. Further stipulation on the procedure of imposition of Safeguard Import Tax on Dextrose Monohydrate was regulated by Rules of the Director General of Customs and Taxation. This Regulation of the Ministry of Finance was effective for 3 (three) years from August 24, 2009 to August 23, 2012.
“Based on observation result of the Committee of Indonesian Trading Security [KPPI] for the observation period 2004-2007, there has been a shoot up of examined imported products resulting serious loss in domestic products; therefore the ministry of Trade proposed imposition of safeguard-action charges on Dextrose Monohydrate” remarked Head of KPPI Halida Melani.
This PMK Rules regulated the imposition of safeguard import tax on Dextrose Monohydrate with HS : 1702.30.10.00 and 1701.40.00.00, expect on glucose syrup, dextrose monohydrate pharma grade and maltodextine.
The period of Safeguard Import Tax: was imposed for 3 (three) years, specified as follows first year Rp. 2.700/kg, year II Rp. 1.400/kg and year III Rp. 2.100/kg. Further stipulation on the procedure of imposition of Safeguard Import Tax on Dextrose Monohydrate was regulated by Rules of the Director General of Customs and Taxation. This Regulation of the Ministry of Finance was effective for 3 (three) years from August 24, 2009 to August 23, 2012.
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