Day: September 24, 2021

Indonesia’s international investment position recorded a net liability of US$264.1 billion, or 23.8 percent of the national gross domestic product (GDP) in the second quarter of 2021, Bank Indonesia (BI) has said.

The net liability showed a decline compared to the previous quarter, when it was recorded at US$267.5 billion, or 25.2 percent of the GDP, it added.

“The drop in net liability was caused by an increase in the foreign financial assets (FFA) position, which surpassed an increase in the foreign financial liabilities (FFL) position,” executive director and chief of BI’s communication department Erwin Haryono said in a written statement released on Friday.

The increase in the FFA position was aided by direct investment asset transactions and other investments, he informed. As a result, it grew 1.2 percent to US$415 billion at the end of the second quarter of 2021 from US$410.2 billion at the end of the previous quarter, he said.

In addition, the rise in the FFA position was also fueled by revaluation caused by the depreciation of the US dollar against global major currencies and a rise in share indices in most countries where the assets are placed, Haryono said.

Meanwhile, the increase in the FFL position was caused by an inflow of foreign direct investment and portfolio investment, he informed. Consequently, it rose by 0.2 percent to US$679.1 billion in the second quarter of 2021 from US$677.7 billion in the previous quarter, he said.

“The rise in the FFL position was chiefly caused by a rising inflow of foreign direct investment and portfolio investment, along with investors’ positive perception of good prospects of the domestic economy,” he elaborated.

Yet, a further increase in the FFL position was obstructed by the negative revaluation of the domestic financial instrument as a result of a decline in the prices of several domestic companies’ shares, Haryono said.

BI believes the development of the country’s international investment position in the second quarter remains under control and supports external resilience, as reflected by the structure of the international investment position, which is dominated by long-term instruments, he added.

Looking ahead, the performance of the international investment position can be maintained in line with the effort to recover the national economy from the COVID-19 pandemic, supported by the synergy between the central bank, government, and other related authorities, he said.

“After all, BI will keep monitoring the potential risk of the net liability of the international investment position to the economy,” he added.

Source: Antara News

The Quick Response Code Indonesian Standard (QRIS) is being utilized by 10.45 million of the 12 million targeted merchants, Head of Bank Indonesia’s Payment System Policy Department Filianingsih Hendarta has said.

QRIS is the national QR code standard for facilitating payment using QR codes in Indonesia.

“By September 17, 2021, it (the number of QRIS users) had reached 10.4 million merchants and about 96 percent of them are micro and small entrepreneurs. So, QRIS has been utilized by various segments from street vendors, to popular shops in malls, to praying places,” Hendarta informed during a webinar on Friday.

She also revealed that QRIS user merchants are spread across 480 districts or cities in 34 provinces of Indonesia, while its 66 Payment System Service Providers (PJSP) comprise 38 banks, 24 non-banks, and four switching.

Bank Indonesia has recorded significant growth in the development of QRIS merchants, she said.

In the first quarter of 2020, when QRIS was first unveiled, it was adopted by 3.08 million merchant users, Hendarta noted. The number of merchant users then rose to 6.69 million in the first quarter of 2021 and reached 7.85 million by the second quarter of 2021, she added.

BI has also promoted the use of QRIS as part of the Proud of Indonesian Products National Movement and Travel to Indonesia programs, she said.

New QRIS features have also continued to be developed in order to improve its acceptance and for the convenience of users and merchants, Hendarta said.

This year, BI is developing the QRIS Crossborder or cross-country feature and QRIS TTS (Transfer, Withdraw, and Deposit) feature, she added.

The trial run for QRIS Crossborder has been conducted in Thailand since August 17, 2021, and it will be extended to other nations such as Singapore, Japan, Korea, and Saudi Arabia, she said.

Meanwhile, the QRIS TTS feature is undergoing a trial run in a sandbox since July 1, 2021, she said.

Hendarta affirmed that Bank Indonesia is optimistic that digitalization can transform Indonesia into an advanced nation with high per capita income, supported by the synergy between the regulator and the industry.

“We are optimistic that we can handle the challenges of the new normal era and provide a greater benefit. To this end, we would like to invite industry players to synergize and to fully commit themselves to support the policy in 2025 Indonesia Payment System Blueprint,” she remarked.

Source: Antara News

The construction of several airports in Papua and West Papua provinces has continued to progress despite the COVID-19 pandemic, Transportation Minister Budi Karya Sumadi has affirmed.

Earlier, Minister Sumadi, Investment Minister and Indonesian Investment Coordinating Board head, Bahlil Lahadalia, West Papua Governor Dominggus Mandacan, and other regional officials had visited two airport construction sites in Siboru, Fak-Fak district, and Rendani, Manokwari district, in West Papua on Friday.

“President Joko Widodo (Jokowi) ordered us to expedite airport development projects in Papua and West Papua provinces, and to accelerate regional development; we decided to construct an airport in Siboru region. We are committed to completing the airport construction, despite we need to extort more effort due to the difficult terrain at the construction site,” Sumadi said in Jakarta on Friday.

Sumadi explained the construction of Siboru Airport has reached 30-percent completion. Construction of the airport commenced in 2020, he noted.

Upon completion, The airport is expected to accelerate regional development and enhance connectivity in the West Papua region, he added.

The Siboru Airport is being developed to complement the existing Torea Airport, also in Fak-Fak, that cannot accommodate larger aircraft as the airport’s only runway spans just 1,400 m in length, he said.

“We hope the new Siboru Airport would enhance connectivity, and economic and tourism activities from and to the Fak-Fak region,” Sumadi said.

Besides Siboru Airport, the ministers and government officials also visited the construction site for Rendani Airport in Manokwari, West Papua.

At present, a box culvert is being built at the airport, and road and bridge access to the airport is being developed, Sumadi informed.

The airport’s runway will be extended to 2,300 m from the current length of 2,000 m to allow larger aircraft to land in Rendani, he added.

“We hope the new airport would accelerate regional economy and tourism, as well as enhance air connectivity between regions,” Sumadi said.

He confirmed the ministry is also developing new airports for Papua and West Papua provinces in Nabire, Anggi, Illaga, and Ewer regions. (

Source: Antara News

The Indonesian government has been making dedicated efforts to accelerate regional development in Papua and West Papua to bring about fundamental changes that can enable them to catch up with other provinces in the country.

To allow the government to boost development in the two easternmost provinces, the House of Representatives (DPR) ratified a bill amending the Papua Special Autonomy Law No.21 of 2001 on July 15, 2021.

House Speaker Puan Maharani highlighted the importance of the newly-enacted bill, saying it was long-awaited by native Papuan communities of Papua and West Papua.

In response to the enactment of the bill, West Papua Governor Dominggus Mandacan said the passing of the revised Papua special autonomy law by the House in July was a milestone for sustainable development.

It would help boost the prosperity of all indigenous Papuans in Papua and West Papua Provinces, he said.

However, while the government has been making efforts towards achieving sustainable development in Papua and West Papua, Papuan separatist terrorists have been disrupting such development through terror campaigns.

On December 2, 2018, for instance, a group of Papuan terrorists brutally killed 31 workers from PT Istaka Karya, who were working on the Trans Papua project in Kali Yigi and Kali Aurak in Yigi sub-district, Nduga district, Papua province.

The Papuan terrorists’ campaigns of terror continued this year. On April 8-9, 2021, Papuan separatist terrorists shot dead two teachers and set junior and senior high school buildings ablaze in Beoga sub-district, Puncak district.

On August 22, 2021, a terrorist group attacked several construction workers of PT Indo Mulia Baru, who were responsible for erecting a bridge on Brazza River in Yahukimo district.

Two workers, identified as Rionaldo Ratu Roma and Dedi Imam Pamungkas, died in the attack, according to director of Papua Police’s Criminal Investigation Unit, Sen.Coms.Faisal Rahmadani.

The attackers also set their bodies and their pick-up truck on fire, he informed.

Members of the terrorist group also attacked several personnel from the Indonesian Police’s Mobile Brigade (Brimob) unit when they went to the site of the shooting to evacuate the deceased workers’ bodies, he said.

Four Brimob personnel sustained minor injuries, he said, adding that several construction workers were evacuated to Dekai, the capital of Yahukimo district, for safety reasons.

Members of the Tenius Gwijangge-led terrorist group may have used six firearms, including two 5.56 millimeter caliber SS1-V1 rifles, to carry out the attack, Rahmadani said.

Officials believe the Papuan terrorist groups may have obtained firearms and ammunition for launching their campaigns of terror through illegal arms trades.

According to the Papua police, last year, a civil servant at the Intan Jaya district administration was detained for his alleged involvement in illegal arms trade with Papuan terrorist groups.

Identified by his initials as MS, the suspect was detained for investigation after he was handed over by his family to the police on November 13, 2020.

MS had evaded capture by several Nabire district police officers in Samoba Bawah village on November 6, 2020. At the time, he had stowed four illegal guns and ammunition aboard a motorboat from Biak, officials said.

In a separate development on September 22, 2021, personnel from the Nemangkawi Task Force raided a house in the Ambruk complex area of Yahukimo district that was suspected to be a weapons storage facility for Papuan separatist terrorists.

The raid was launched after the task force received a tip from local residents about a truck, owned by the Yahukimo district government, carrying several people and cargo, a police officer revealed.

Acting on the tip, task force personnel were deployed to the place where the vehicle was sighted, deputy chief of the Operation Nemangkawi Task Force, Sen. Coms. Muhammad Firman, stated.

The security personnel found several people and cargo inside the cabin of the truck, which was being driven by a civil servant, identified by his initials as ES, Firman informed in a statement.

ES and the people found inside the truck’s cabin were taken to the Yahukimo district police precinct for questioning, he said.

Based on the suspects’ confession, security personnel raided the house in the Ambruk complex area, where they found 28 pieces of evidence, including ammunition, sharp weapons, and a radio rig, he added.

Among the items stored in the house, the personnel found a pair of military uniforms belonging to the West Papua National Committee (KNPB), he revealed, adding that ES had also concealed ammunition and a 5.56 magazine.

On August 27, 2021, the Nemangkawi Task Force had arrested EB, the sub-district head, along with 15 members of the KNPB and separatist terrorist groups operating in Yahukimo.

Of the 15 detainees, five were involved in several acts of terror and murders in the district, officials said. The victims of their crimes included police and military personnel as well as civilians, they added.

The arrests of several civil servants in Papua province have sparked public concerns.

A senior legislator on Thursday claimed that several top officials in the Papua provincial and regional governments may be funding Papuan separatist terrorist groups to support their fight against Indonesia.

The officials support the terrorist groups by giving them firearms, money, and military trainers, alleged Dave Akbarshah Fikarno Laksono, member of Commission I of the House of Representatives (DPR).

He said his allegations against the officials were based on “reliable reports” received by the House’s Commission I Overseeing Defense and Foreign Affairs.

Speaking at a webinar entitled ‘Winding Road for Crushing Armed Papuan Separatist Terrorists’, Laksono said the officials must be brought to justice if their involvement is proven.

“It is our security agencies’ task to uncover who has played the (terror-funding) game. They must uncover who they are and what positions they have,” he added.

To this end, he appealed to the State Intelligence Agency (BIN), National Police, and Indonesian Military (TNI) to continue monitoring and collecting reliable data and evidence against the officials concerned.

If BIN, the National Police, and TNI obtain reliable data and evidence of their crimes, they must be brought to justice, he said.

Laksono also urged BIN, the Financial Transaction Reports and Analysis Center (PPATK), and Financial Services Authority (OJK) to trace the flow of funding to Papuan terrorist groups.

Source: Antara News

The Indonesian Nuclear Energy Regulatory Agency (Bapeten) and the United States Nuclear Regulatory Commission (USNRC) have extended cooperation to exchange technical information on nuclear safety and radiation protection.

“The cooperation is aimed at improving infrastructures, particularly to increase the capability of human resources to regulate the use of nuclear energy as well as to address the latest challenge facing Bapeten,” Bapeten chief Jazi Eko Istiyanto said in a written statement released on Friday.

Indonesian Ambassador Extraordinary and Plenipotentiary and Permanent Representative to the United Nations and International Organizations in Vienna Darmansjah Djumala, representing Bapeten, and USNRC Chairman Christopher T Hanson signed a memorandum of understanding (MoU) to that effect on Thursday, he informed.

The cooperation is expected to enable Bapeten to increase its role as a professional and competent regulatory body, Istiyanto said.

The areas of the cooperation cover exchange of technical information, joint research on nuclear safety and radiation protection, regulatory review and study, and capacity building, he added.

Istiyanto said the existing cooperation between Bapeten and USNRC has benefited Bapeten to develop supervisory capacity through the exchange of information and experience.

“As a matter of fact, USNRC’s regulatory activities have served as a reference for many regulatory bodies in the world. Of course, the cooperation will push Bapeten to strengthen its regulatory infrastructure,” he said.

The MoU was signed on the sidelines of the 65th General Assembly of the International Atomic Energy Agency (IAEA), held in Vienna, Austria, on September 23, 2021, and will be valid for five years, he informed.

Source: Antara News

Loving local products must be instilled in the hearts and minds of citizens from an early age, Secretary General of the Ministry of Education, Culture, Research and Technology Suharti has said.

She made the statement during the launch of the Aroma Maluku Proud of Indonesian Product Movement (Gernas BBI), accessed from here on Friday.

She said her office is optimistic that it can help make the Gernas BBI program a success, with 500 thousand educational units and more than 60 million students nationwide participating in it.

“Through schools, students are encouraged to love local products,” she added.

The movement will help the younger generation produce better innovations that can be accepted by the market, she informed. Therefore, collaboration with other stakeholders is needed, she said.

Meanwhile, Director General for Vocational Education at the Ministry of Education, Research and Technology Wikan Sakarinto said that ever since the program started to be massively promoted in 2020, more than 15 million MSMEs have put their products on e-commerce platforms.

As many as 7 million of the total 15 million MSMEs have been trained through the Gernas BBI program, he informed.

He said he hoped that students, teachers, education staff, and more parties would work hand in hand to strengthen the country’s economic recovery by supporting and buying local products.

The program involves vocational school students in the learning process of producing products through applied research, entrepreneurship, and digital marketing training focused on providing insightful knowledge and expertise in supporting the MSME orientation process, he informed.

“Through this movement, we will mobilize our educational institutions to participate in (the country’s) economic recovery and produce real products that are targeted to the market,” Sakarinto remarked.

Source: Antara News

The total smallholder business credit (KUR) channeled in the year ended September 20, 2021 has reached Rp183.78 trillion, or 64.48 percent of the targeted Rp285 trillion, Coordinating Minister for Economic Affairs Airlangga Hartarto has said.

The KUR was channeled to 4.90 million debtors, he informed in a written statement released on Friday.

He said the KUR channeled in the year to September 20, 2021 took the total outstanding KUR to Rp322 trillion since August 2015, with non-performing loans (NPLs) reaching 1.14 percent.

“The KUR channeled is expected to contribute to national economic recovery,” he added.

He said the KUR channeled during the COVID-19 pandemic in 2020 totaled Rp198.53 trillion, well above the pre-pandemic level of Rp140.1 trillion recorded in 2019.

The minister said the government has continued to support micro, small, and medium enterprises (MSMEs) to help them rise amid the COVID-19 pandemic. The support has included relaxing the KUR policy, including raising the ceiling for non-collateral KUR from Rp50 million to Rp100 million, he added.

In addition, the government has also raised the KUR interest subsidy by 6 percent in 2020 and 3 percent in 2021, deferred KUR principal installments, extended the loan period, and relaxed administrative requirements, he noted.

“In fact, the target of channeling KUR for 2021 has been raised to the tune of Rp285 trillion,” Hartarto said.

Source: Antara News