Day: October 12, 2021

Coordinating Minister for Economic Affairs Airlangga Hartarto has said that the 15 operating Special Economic Zones (SEZ) in Indonesia have provided jobs to 23 thousand workers and absorbed an investment of Rp64.4 trillion.

“The 15 operating SEZs, they have an investment amounting to Rp64.4 trillion. From the 150 companies, there are already 23 thousand workers and export contributions of Rp3.8 trillion,” Hartarto informed while making a report to President Joko Widodo (Jokowi) during the groundbreaking of PT Freeport Indonesia’s smelter at Gresik SEZ, East Java, on Tuesday.

The Gresik SEZ, which is the location of Freeport’s copper refining and processing plant, was established on June 28, 2021 through Government Regulation No. 71 of 2021. The 2,167-hectare SEZ is expected to absorb an investment of Rp71 trillion in the first 5 years of its operation, the minister said.

The Gresik SEZ includes companies from the metal (smelter) industry, the electronics industry, the chemical industry, the energy industry, and logistics, he added.

PT Freeport Indonesia (PTFI) is the anchor tenant of Gresik SEZ, with its investment in the construction of the smelter reaching Rp42 trillion, Hartarto informed. The smelter is expected to have the largest single-line capacity in the world, processing 1.7 million tons of copper concentrate per year, he noted.

“This will make a positive contribution to the value of Indonesia’s exports and an import substitution as well,” the minister remarked.

During the Freeport smelter groundbreaking, President Widodo expressed the hope that the presence of PT Freeport Indonesia in Gresik SEZ would attract other industries to participate in the area.

“I hope that the presence of PT Freeport in the Gresik SEZ will attract other industries to participate in this area, especially the copper derivatives industry to invest here,” he said.

The President emphasized that the government will continue to provide full support to improve the investment climate in the country.

The government will support infrastructure development, as well as business easing and certainty, he said. In addition, the availability of human resources that match the industry’s needs will also be supported by the provincial government and district/city governments, he added.

“We hope this Gresik Special Economic Zone will be more advanced, and Indonesia will be more attractive as an investment destination,” the President added.

Source: Antara News

Sustainable economy is one of the keys to driving national recovery from the impacts of COVID-19, Board of the Indonesian National Accountant Association (IAI) Chairman Mardiasmo stated.

Speaking at the International Tax Conference 2021 here on Tuesday, Mardiasmo noted that economic recovery, both domestic and global, should be sustainable in order to create a quality economy.

He pointed out that Indonesia, as the only G20 member in the Association of Southeast Asian Nations (ASEAN), supports the acceleration of sustainable economic recovery as reflected through the Golden Indonesia 2045 vision.

This effort is becoming increasingly relevant since Indonesia will assume the role of G20 Presidency in 2022, so that this goal can pursued optimally, he stated.

In addition to sustainable economy, the tax agenda is also a key in recovery, as fiscal instrument plays an important role in navigating the nation through the COVID-19 crisis.

Mardiasmo spoke of the government designing various tax incentive schemes, relaxations, and new regulations, such as the Job Creation Law, in order to support recovery.

The government was compelled to encourage tax revenue and provide tax incentives to protect economic players and the people, he noted.

“This will become an economic crisis for the economic recovery program that requires several sources of income, especially tax,” he elaborated.

Despite this, an opportunity also exists for new economic growth, including through digital technology that can drive tax income.

However, this new form of technology also presents a novel challenge for policy makers due to its cross-border nature.

“This creates difficulties for the authority and business sector to determine taxation rights over income coming from cross-border transactions,” Mardiasmo asserted.

To this end, he emphasized that the principles of justice from regulation and government breakthroughs should be goal-oriented, including digital tax.

Source: Antara News

The ‘Proud of Made in Indonesia Products’ movement (Gernas BBI) is expected to encourage, revive, and restore the village and national economy, Minister of Villages, Development of Disadvantaged Regions and Transmigration Abdul Halim Iskandar has said.

“Gernas BBI has helped, stimulated, and inspired small- and medium-sized micro enterprises (MSMEs), village-owned enterprises, and joint-village-owned enterprises to grow and push village growth as well as recover the national economy,” he informed at the launch of the Gernas BBI ‘Go Borneo’ initiative in Samarinda, East Kalimantan on Tuesday.

For the Samarinda Gernas BBI, the Village Minister will serve as the campaign manager and collaborate with state-run oil and gas firm PT Pertamina, Bank Indonesia (BI), and the provincial government of East Kalimantan, which will serve as the brand ambassador.

In addition, East Kalimantan’s Gernas BBI will also involve district and city governments, as well as the private sector, the minister informed.

Under the leadership of the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan the movement has been able to help 6.07 million MSMEs and village-owned enterprises use digital platforms this year so that they have a broader scope of marketing, Iskandar said.

The number of MSMEs and village-owned enterprises entering the digital platforms has doubled compared to last year, he added.

“Gernas BBI in 2020 managed to raise more than 3.8 million MSMEs and village-owned enterprises into digital platforms,” the minister disclosed.

The theme of “Go Borneo” for Samarinda Gernas BBI is meant to promote the spirit of introducing, developing, advancing, and expanding the marketing of East Kalimantan MSMEs and village-owned products, Iskandar said.

Efforts will be made to market the products by utilizing e-commerce in response to the community’s new shopping habits, he noted.

For the villages, the “Go Borneo” theme aligns with the eighth goal of Village SDGs, which is uniform economic growth in villages, he said.

“It is followed by the twelfth purpose of the Village SDGs, which is the environment-aware village’s consumption and production,” he added.

Source: Antara News

The Institute of International Finance (IIF) bestowed the Distinguished Leadership and Service Award on Finance Minister Sri Mulyani during the IIF members’ annual meeting in Washington D.C., the United States, on October 11, 2021.

“This is a prestigious award from the finance industry’s global association that has over 400 members from 70 countries, including Indonesia,” Head of the Finance Ministry’s Communication and Information Services Rahayu Puspasari noted in her official statement here on Tuesday.

The award was given as a mark of acknowledgement to individuals that have consistently made extraordinary contributions to the health of the global economy and finance system through their leadership, she explained.

The award demonstrates that Mulyani’s hard work, as a leader and public figure, has contributed in ensuring economic stability, both at the domestic and international level, she noted.

This award is a matter of pride for the Finance Ministry, led by Mulyani, she remarked.

During the IIF annual meeting, which is part of the 2021 annual meeting of the IMF-World Bank, Mulyani was also requested to become a panelist during the Asia Policymaker session.

During the panel session, Mulyani discussed various strategic policies that Indonesia has implemented ever since the pandemic struck.

These comprised pandemic-handling policies and taxation reforms, including the introduction of the carbon tax and the role of the private sector in handling climate change, as well as Indonesia’s G20 Presidency to be handed over from Italy by the end of October.

Ever since the pandemic hit, the Indonesian government has primarily focused on protecting public health, preserving the public’s purchasing power, and shielding entrepreneurs from bankruptcy.

Mulyani highlighted that the response of the Indonesian government had consistently focused on three aspects: health intervention, health and safety equipment, and sustainable structural reformation.

Hence, fiscal support will continue to be offered under the pandemic-handling efforts, especially for 3T — testing, tracing, treatment; strengthening of the health system; free vaccination; and health workers’ incentives.

Source: Antara News

Polish Ambassador to Indonesia Beata Stoczynska believes that the Job Creation Law (Omnibus Law) has created a friendlier investment ecosystem for foreign investors to grow their investments in Indonesia.

“Thank you to President Joko Widodo on the Job Creation Law. This law brings a more welcoming environment for foreign investors,” Stoczynska stated during a special interview with Antara at the Polish Embassy here on Tuesday.

Ambassador Stoczynska highlighted that the Job Creation Law is not only helpful for foreign investors but also for the domestic market and workers.

“The Omnibus Law opens great opportunities for employers, workers, and the entire business environment. It is important for foreigners and Indonesians themselves,” Stoczynska affirmed.

According to the ambassador, the law is an extraordinary effort that can attract foreign investors to invest in Indonesia.

“The Omnibus Law has a positive impact on the investment opportunity in Indonesia and (provides) a better environment for foreign entrepreneurs,” she explained.

The Job Creation Law was passed and signed by President Joko Widodo (Jokowi) on November 2, 2020, and has officially been valid as Law No. 11 of 2020.

Jokowi believes the Job Creation Law will improve the lives of workers and their families.

The president elucidated that the law was put in place on account of the high demand for employment, among other factors. He noted that annually, 2.9 million new people from the working-age age or members of the young generation are ready to enter the job market.

The Job Creation Law aims to open up as many jobs as possible for job seekers and the unemployed community, Jokowi noted.

Earlier, Indonesian Ambassador to Singapore Suryo Pratomo affirmed that international corporations had demonstrated a high level of interest in investing in Indonesia.

Indonesia’s productive-age population is one factor for companies showing interest to invest in the country, Pratomo noted.

With the Law on Job Creation passed in mid-2020, Indonesia has sufficient legal basis to enhance potential resources available for investment, he pointed out.

Source: Antara News

Chairman of the Indonesian People’s Consultative Assembly (MPR) Bambang Soesatyo has lauded efforts made by education institutions to contribute to the development of electric vehicles.

Soesatyo, who is also chairman of the Indonesian Motor Association (IMI), has assured that IMI will remain committed to helping and supporting the development of electric motorcycles.

One of the ways IMI is doing this is by finding sponsors and overseeing the vehicle type-testing process at the Ministry of Transportation, he said.

“IMI is willing to be a sponsor to help this type-testing for electric motorcycles so later these vehicles are proper to use on public roads,” he said while welcoming the arrival of the electric motorcycle Bl-SEV01 touring team from Budi Luhur University here on Tuesday.

The type-testing of electric vehicles is required to prove to the government and the public that they are suitable for use in terms of safety, comfort, and in accordance with vehicle regulations in Indonesia, he noted.

“This type-testing will show how comfortable and safe this electric motorcycle is. Also, the handling demonstration on obstacles or in case it is burned,” he said.

“I am sure and believe with my BL-SEV01 team that they will certainly be able to pass the test and IMI will be overseeing until the motorcycle can be mass-produced,” he affirmed.

“The BL-SEV01 electric motorcycle successfully went under trial, (and was) driven on the Jakarta – Mandalika route with a cruising range of up to 1,340 km for 17 days,” he noted.

The 96-Volt BLDC electric motorcycle built by Budi Luhur University comes with some specifications: it can power up to 16 kW, supported by a 48Ah battery and a 96-Volt 200 Ampere controller, Soesatyo noted.

The success of the test has proved that academic institutions are able to innovate on electric vehicles for future mobility, he said.

“What they are doing is a battle in reducing the country’s burden and earth pollution caused by exhausts,” he added.

Source: Antara News

Women’s Empowerment and Child Protection Minister Bintang Puspayoga pressed for commitment and cooperation of all stakeholders to ensure child protection from pornography.

“We expect the commitment and cooperation of all parties to give their respective best contributions to protecting Indonesia from exposure to pornography,” the minister stated during a virtual talk show as seen in Jakarta on Tuesday.

Puspayoga opined that crimes against children had currently adapted to using a platform that is currently widely accessible to children, such as the internet.

According to the minister, pornography has had a dire impact on children, including addiction to pornography and sexual violence against children.

According to data of the Indonesian Internet Service Providers Association (APJII), during the period from 2011 to 2019, the third-highest child case complaints were related to pornography and cybercrime, totaling 3,922 cases.

The Indonesian Child Protection Commission survey in 2020 noted that 22 percent of Indonesian children still saw inappropriate content and shows.

The government has striven to provide protection to children, including by regulating child pornography as a criminal act through Law Number 44 of 2008 on Pornography.

Puspayoga noted that since 2018, the ministry had initiated the establishment of villages free from child pornography.

“Villages free from child pornography is one of the key programs in preventing child pornography at the (smallest) level,” she elaborated.

This program is expected to protect children from pornographic content, raise community and stakeholders’ awareness of the importance of protecting children, and improve the community’s quality of life, especially of children and families.

Moreover, the Women’s Empowerment and Child Protection Ministry provides SAPA 129 and UPTD PPA services spread across Indonesia to address complaints, reach, and assist in terms of protecting women and children.

Source: Antara News

The Ministry of Communication and Informatics has blocked 151 unlicensed digital finance (fintech) peer-to-peer (P2P) lending companies and other four entities.

The unlicensed companies were discovered by the Investment Awareness Task Force of the Financial Services Authority (OJK).

Director general of informatics applications at the ministry, Semuel Abrijani Pangerapan, said that the government has made several endeavors to eradicate illegal fintech (financial technology) lending.

“Starting from blocking to law enforcement efforts,” Pangerapan explained in a press release issued here on Tuesday.

From 2018 to August 2021, the Investment Awareness Task Force has blocked 3,515 illegal fintech lenders, he informed.

According to him, the most effective key to eradicating illegal fintech lending is increasing financial literacy in the community.

“The main key in exterminating illegal fintech lending is by literacy to the public so that the market of illegal fintech players will disappear by itself,” he expounded.

Fintech P2P lending applications attract the public because they provide easy access to online loans, he noted.

However, he argued, if people borrow money through illegal P2P lenders, there is a negative impact, such as threats and intimidation, if they fail to pay dues.

Taking note of thriving illegal fintech P2P lending, head of the Investment Awareness Task Force, Tongam L. Tobing, said the trend is very troubling even in the midst of the COVID-19 pandemic, when there are still lenders offering loans without permission.

“Currently, there are offers of illegal fintech lending that take advantage of some people’s financial difficulties in meeting their daily needs,” he added.

According to him, there are several modus operandi that unlicensed fintech entities use to ensnare people.

“Their target is people who need money to meet basic needs in this pandemic. They charge high interest rates with short loan periods,” he expounded.

These illegal fintech providers offer easy terms and conditions for getting loans, but they always ask permission to access all contact data of the application users, he added.

“This is very dangerous because the data can be disseminated and misused to intimidate people when billing them,” he warned.

Tobing lauded the efforts made by the Ministry of Communication and Informatics in eradicating illegal fintech P2P lending through access blockage.

Unlicensed activities are very worrying and harmful for the community because they take advantage of people’s lack of understanding of financial literacy and deceive them by offering nonsense high returns, Tobing said.

“Many illegal activities duplicate the websites of licensed entities, making it (seem) as if the website officially belongs to the illegal entity,” he explained.

“Investment offers through Telegram are illegal so it is hoped that the public will remain vigilant in considering such offers,” he reminded.

Source: Antara News