Regional govts need to get guidelines on COVID-19 budget utilization

Jakarta (ANTARA) – House of Representatives’ (DPR’s) Commission II member Guspardi Gaus called on the Home Ministry to offer technical guidelines to regional governments on budget usage for handling the COVID-19 pandemic.

“Guidance and accompaniment should be routinely provided to the regional heads to enable them to fulfill the designated budget realization,” Gaus noted in his statement here on Monday.

Gaus suggested that law enforcement officers and audit institutions get involved in ensuring the usage of budget in accordance with the regulation and the law.

He asserted the importance of preventing the budget from being used for personal and group interests that can lead to corruption.

He urged the regional governments to accelerate the absorption of budget allocated for social protection and economic empowerment in handling the COVID-19 pandemic.

His request is based on the Home Ministry’s data that indicate average realization of the regional state budget to handle the COVID-19 pandemic is still far from ideal.

“The ministry’s data show that until July 15, 2021, the realization of regional budget for the provincial governments have only reached 35.18 percent. This figure is lower than the budget realization in July 31 2020, reaching 37.90 percent,” Gaus pointed out. The House member admitted that regional heads faced a dilemma over budget utilization.

He noted that while the budget had to be utilized immediately to handle the impacts of the pandemic, the Supreme Audit Agency (BPK) could use it as evidence that can potentially create legal issues for the regional heads.

However, Gaus stressed that the budget should not be utilized for personal interests.

This National Mandate Party (PAN) politician is sanguine that the central and regional governments would share an understanding and stay committed to accelerating budget absorption for COVID-19 handling.

Gaus also called on the regional governments not to hesitate to conduct budget refocusing to avert any stalling of the pandemic handling program.

Moreover, he urged the Home Ministry to find a breakthrough so that the regional governments would be freed of concerns over refocusing and realization of the budget to handle COVID-19.

Source: Antara News

OSS system will not dilute powers of regional authorities: Jokowi

Jakarta (ANTARA) – President Joko Widodo (Jokowi) has emphasized that the risk-based online single submission (OSS) system, an online service for issuing business licenses, would not dilute the powers of regional authorities.

“I would like to emphasize that the risk-based OSS system will not dampen the regional authorities,” the President said at the launch of the risk-based OSS system, streamed on the Presidential Secretariat’s Youtube channel here on Monday.

The OSS system lays down a service standard for all government levels, either central or regional, in issuing licenses so that their responsibilities can be clearer and their services can be more synergistic, Widodo explained.

“I have already listened to small and micro, and even big entrepreneurs who have the same aspirations. They need quick, easy, and simple services,” he added. The President urged ministers, institution heads, governors, district heads, and mayors to remain disciplined in following the OSS processes, which are aimed at making licensing easier.

Widodo said that he will directly monitor the implementation of OSS in the field, adding that risk-based business licensing through the OSS system is being implemented under Law No.11 of 2020 on Job Creation.

The risk-based OSS must be utilized by business players, ministries, institutions, regional administrations, administrators of Special Economic Zones (KEK), and free trade and port area concession agency (KPBPB), he said.

According to the government’s regulation No.5 of 2021, as many as 1,702 businesses, of which 1,349 are Indonesian Standard Industrial Classifications (KBLI), have been included in the risk-based OSS system.

Meanwhile, as many as 353 KBLIs that have not been covered by regulation No.5 of 2021 will be registered in the system by the end of August this year.

Source: Antara News

Tourism Ministry supports digital wallets for MSMEs’ digitalization

Jakarta (ANTARA) – Tourism and Creative Economy Minister Sandiaga Salahuddin Uno supports the use of digital wallets as part of the efforts to digitalize micro, small, and medium enterprises (MSMEs) in Indonesia.

“The pandemic has driven us to improve innovation, adaptation, and capability, not just in conducting online transactions but also in creating creative content for a sustainable business,” Uno stated at the DANA Connect online seminar as quoted from a press statement here on Monday.

Uno remarked that one of the strategies to boost innovation and to transform is by going digital. He opined that those who have not undergone digital transformation will bear the brunt of the pandemic.

According to the ministry’s data, MSMEs’ contribution to the nation’s gross domestic product have risen, from 60 percent to 63 percent, on account of digital transformation conducted by MSMEs.

Based on Indonesia’s E-Commerce Association’s (idEA’s) data, 13.7 million MSMes have gone digital. These figures constitute 12.5 percent of Indonesia’s total MSMEs.

To this end, Uno emphasized the importance of collaboration to assist MSMEs in entering the digital platform, including 34 million enterprises in the tourism and economic sector.

“Which is why we hope that DANA would be the engine in bringing about collaborative transformation to help the MSMEs’ digital transformation. Perhaps, later, Bank Indonesia can be involved,” the minister noted.

MSMEs currently face three challenges, all of which can be addressed through the use of a digital wallet.

The first is access to qualified human resources that can be handled through digital literacy programs, such as DANA Connect.

The second pertains to market access that the use of digital wallet can facilitate by connecting MSMEs with the broader market.

The third is financing access wherein digital wallets can help by connecting MSMEs with the digital finance ecosystem, including banks.

Source: Antara News

President demands transparency in implementing OSS system

Jakarta (ANTARA) – President Joko Widodo (Jokowi) has warned against graft and called for transparency between government officials and entrepreneurs in the process of obtaining business permits.

“I don’t want to hear any difficulties faced by entrepreneurs. I don’t want anyone doing bribes anymore. Everything must be done openly, with transparency, and it should be (facilitating) the entrepreneurs,” the President stressed here on Monday.

He made the statement at the launch of the risk-based Online Single Submission (OSS) system for business licensing. He was accompanied by Finance Minister Sri Mulyani Indrawati and Investment Minister Bahlil Lahadalia at the launch.

“If there’s any government official who (uses unfair practices), who (indulges in graft), report it to me,” Jokowi said.

The risk-based OSS system aims to make it easier to obtain permits for businesses, he explained.

“This is to make it easier for small, micro, medium enterprises (to get permits), push (the growth of) many more new entrepreneurs, accelerate the transformation of informal sectors to formal sectors, and the most important thing is that it will create many job opportunities,” the President said.

The COVID-19 pandemic must not break the government’s spirit and efforts to undertake structural reforms, he stressed.

“Many structural reformation agenda will be carried out still. Any regulations that obstruct those who wants to establish their businesses will be cut, (and) we will make the procedures to have businesses and investments easier,” Jokowi assured.

He said he expected to build a more conducive business environment through these measures to allow SMEs to flourish.

“It is also to raise the trust of investors to make as many job opportunities as possible, so it can be a solution to unemployment issues caused by the pandemic,” he added.

President Jokowi also ordered ministers and heads of institutions, governors, heads of districts, and mayors to remain disciplined in the supervision of the OSS system.

“I will check directly, I will directly supervise how the implementation in the field is like. Is the process getting easier? Are the permits getting less and less? Is the process getting more simple? Is the cost even more efficient? Are the standards the same all over Indonesia? Is the service faster? These, I will follow,” he elaborated.

He said he believes that if all these requirements are met, investment in both micro, small, medium and large scale businesses would increase in Indonesia.

The Investment Ministry/Investment Coordinating Board (BKPM) officially opened the OSS system on August 2, 2021.

The OSS is being implemented under Government Regulation (PP) Number 5 of 2021 regarding the Implementation of Risk-Based Business Licensing by the Investment Ministry, which is a derivative rule of Law 11/2020 on Job Creation.

According to Minister Lahadalia, the system was built in March 2021 by Indosat, in collaboration with the Investment Ministry. It summarizes 18 ministerial and institutional regulations, as well as 47 government regulations and presidential regulations as derivatives of the Job Creation Law.

Source: Antara News

Support development of local gaming as creative economy subsector: Uno

Jakarta (ANTARA) – Indonesia’s Tourism and Creative Economy Minister Sandiaga Salahuddin Uno said he is committed to supporting the development of local gaming as a sub-sector of the creative economy.

He hoped that more local games would showcase the country’s rich culture and natural beauty.

“It would be nice if local game developers could use Indonesia’s prioritized tourism destinations as the location of the game, for example, Borobudur or Toba Lake, to stimulate tourism as well as the creative economy side,” he said in a written statement received here on Monday.

According to Newzoo data, the income of the gaming industry in Indonesia increased significantly from 2016 to 2019. In 2019, Indonesia earned US$1.08 billion in revenue from the gaming and e-sports industry.

Indonesia is estimated to have 52 million gamers, but most play games developed by foreign developers, despite the availability of a number of local games, the data indicates. Taking note of this, Minister Uno invited more developers to present local games and involve elements of the five super-priority tourism destinations in their games to help promote Indonesian tourism.

Meanwhile, Deputy for Marketing at the Ministry of Tourism and Creative Economy (Kemenparekraf) Nia Niscaya said her office is supporting local game developers through the ‘Buy Local Game’ program, which has emerged from a collaboration between the ministry, the Indonesian Game Association (AGI), and four e-commerce platforms in Indonesia –Tokopedia, JD.ID, Shopee, and BukaLapak.

Through the ‘Buy Local Games’ program, the ministry is offering promos on about 20 local game titles such as Coffee Talk, DreadOut, and World of Celestian Tales to attract more gamers, she informed.

“It is hoped that this program can be utilized as well as possible by the community, and the consumption of local games in Indonesia will increase. This shows that the quality of local game products is not inferior to other countries’ game products,” she remarked.

Source: Antara News

Benefits of seaweed cultivation for Indonesian economy

Jakarta (ANTARA) – American musician Davendra Banhart once said in an interview that it would be nice to be a seaweed since all it does is float in the water.

Seaweed, much like the grass on the ground, is often underestimated by people. This is despite the fact that the commodity has a variety of uses in their daily lives.

Indonesia is blessed with abundant seaweed reserves. The seaweed habitat in Indonesia is known to have reached 1.2 million hectares, making it the largest in the world.

In fact, Indonesia’s seaweed reserves are estimated to account for 8.6 percent of the total biota in the oceans.

Seaweed can not only be used as a food, it can also be used as a raw material in the cosmetics industry, such as for making gels. It can even be put to medicinal use by the pharmaceutical industry.

According to the Director General of Marine and Fishery Product Competitiveness at the Maritime Affairs and Fisheries Ministry Artati Widiarti, seaweed innovation can be used to tackle several global issues such as plastic waste and climate change, which can be an opportunity for entrepreneurs in the marine sector.

For instance, seaweed can be processed into bioplastic, which can be used to replace the plastic packages presently in use, she said.

Research has shown that the use of asparagopsis taxiformis seaweed in the feed of ruminants, such as cows, can reduce methane gas emissions, she noted.

Widiarti said that she has, on several occasions, urged the public and entrepreneurs in the marine and fishery sector to be more invested in exploring the potential of seaweed. Indonesia is rich in macro-algae, with 89 familia, 268 genus, and 911 species recorded in its oceans, based on data from the Institute of Sciences’ Oceanography Research Center, she pointed out.

Red algae (Rhodophyta) is among the seaweeds that grow in the largest profusion in Indonesia’s oceans, with 265 species recorded so far, followed by green algae (Cholorophyta) with 201 species, and brown algae (Ochrophyta) with 146 species.

Such a variety of seaweeds is a blessing that must be taken advantage of to support the nation’s economy, provide jobs, raise foreign exchange, as well as provide food and nutrition, Widiarti said.

To this end, the ministry’s Cultivation Director General Tb Haeru Rahayu has stated that his agency is committed to raising the production of seaweed commodity since it has a broad market, both domestic and international, to boost the economy.

Due to this broad market, seaweed can be the nation’s primary commodity for cultivation, he said.

Especially since Indonesia is the second largest seaweed producer next to China, with exports reaching 195.574 ton in 2020, valued at US$279.58 million.

The ministry has improved the performance of cultivated seaweed seed through a variety of innovations to create quality seeds. It has also managed to develop seed using plant tissue isolation method and will continue to improvise for other species such as the saccule strain, he said.

In addition, it has also developed seaweed cultivation areas by optimizing promising land located in Indonesia’s eastern regions, such as East Nusa Tenggara, he added.

In the seaweed cultivation areas, seaweed villages will be built using eco-friendly technology in order to sustain and raise the prosperity of citizens. By utilizing and emphasizing synergy between innovation and industry, KKP believes that Indonesia can become a main player in the world seaweed industry.

Challenges

Despite the promising potential, there are a number of challenges to cultivating seaweed.

For instance, processing seaweed for products, such as food, cosmetics, as well as spices, can produce a large amount of waste, the ministry’s head of research and human resources Sjarief Widjaja said.

Processing of gracilaria and cottonii seaweed produces 8,174,150 cubic meters of liquid waste and 62,506 tons of solid waste per year.

This is why, in the effort to process seaweed, we should not create new problems, both for the industry and the environment, Widjaja cautioned.

The large amount of waste generated while processing seaweed can be recycled for other uses. For instance, liquid waste can be used as liquid fertilizer, while solid waste can be used as a raw material in ceramics, particle boards, fertilizers, and even light bricks.

According to executive director of Maritime Research Center for Humanity, Abdul Halim, the policy for implementing maritime sector innovations, such as producing bioplastic from seaweed, needs to be accompanied by other technical training measures to allow residents to cultivate it on a large scale.

The accompanying measures must be undertaken with the right approach that is also sustainable.

By focusing the program on increasing public’s technical knowledge and developing citizens’ prosperity, the program will be more accurate and beneficial in the future.

Due to the variety of benefits that seaweed provides, let us hope that it could not just assist in the nation’s economic recovery, but also contribute significantly to the global economy.

Source: Antara News

Local Fruit Festival to revive fruit demand, economy

Jakarta (ANTARA) – The Local Fruit Festival (GBN) 2021 event is aimed at reviving demand for local fruits to support the growth of the national economy, Coordinating Minister for Economic Affairs Airlangga Hartarto said.

At the opening of GBN 2021 here on Monday, the minister said that the event would help make the demand for the nation’s fruit thrive not only domestically, but also internationally.

He also expressed the hope that the event would serve as a marketing platform and raise the public’s awareness on eating local fruits.

Farming is the second largest sector after the processing industry in Indonesia and has shown consistent growth of 0.38 percent in 2020 as well as in the second quarter of 2021, Hartarto said.

The demand for fruits has also increased amid the COVID-19 pandemic, both domestically and internationally, due to their immunity-boosting benefit, he noted.

“This shows the sector’s resiliency, how its presence is needed in every condition, and how it continues to provide a positive contribution to the economy’s growth,” the minister remarked.

Horticulture is a sub-sector that has the potential to grow, he noted. The government has continued to push horticultural exports, while also resolving regulations that stalled it.

Indonesia’s horticultural exports touched 645.8 thousand tons in 2020, a 37.75-percent increase compared to 2019, Hartarto disclosed.

The increase was dominated by fruit exports, which reached 389.9 thousand tons, a 30.31-percent increase compared to 2019, he added.

Indonesia’s five primary fruit export destinations are China, Hong Kong, Malaysia, Saudi Arabia, and Pakistan, he noted.

Source: Antara News

Vaccination key to economic, tourism recovery: MPR speaker

Jakarta (ANTARA) – Speaker of the People’s Consultative Assembly (MPR RI) Bambang Soesatyo, stressed the importance of vaccination to ending the COVID-19 pandemic in Indonesia.

Besides protecting recipients from being infected by the virus, a high vaccination rate will also enable economic recovery, especially in regions dependent on the tourism industry, such as Bali, Soesatyo said on Monday.

“Bank Indonesia’s Bali office recorded a slight increase of 2.83 per cent in Bali’s economic development in the second quarter of 2021, compared to a decline of 9.82 per cent in the previous quarter,” he said in a statement that ANTARA received in Jakarta.

Economic recovery is linked to the high vaccination rate in Bali, which is currently the province with the second-highest vaccination rate nationwide, he noted.

During his visit to observe a vaccination drive in Klungkung District along with the district head, I, Nyoman Suwirta, Susatyo stated support from the public and police-military personnel is key to accelerating the vaccination efforts.

“Therefore, the COVID-19 vaccination drive could be accelerated to increase the number of recipients at vaccination points,” he stressed.

Out of Indonesia’s total population of 208.2 million, some 50,497,940 residents have already received their first dose, and 23,777,323 have completed their second vaccine shot, according to the National COVID-19 Task Force.

Bali Province’s COVID-19 Task Force also recorded, as of August 8, around 3.089 million local residents have received their first vaccine dose, and another 1.086 million residents have completed their second shot, out of the province’s total population of 4.32 million.

A total of 4.868 million vaccine doses has been provided, with current remaining stocks numbering 1.215 million doses.

Source: Antara News