Day: August 18, 2022

Vice President Ma’ruf Amin highlighted future challenges and opportunities of the national sharia insurance industry amid implementation of ASEAN Framework Agreement on Services (AFAS) aimed at eliminating restrictions to trade in services among ASEAN countries.

“On one hand, the domestic sharia insurance industry is required to compete with foreign rivals in the domestic market, while on the other hand, it (the AFAS implementation) increases prospects for the Indonesian sharia insurance industry to expand its market to other ASEAN member states,” Amin stated while addressing the 19th anniversary of the Indonesian Sharia Insurance Association (AASI) in Jakarta on Thursday.

The ability to penetrate the insurance market is hinged on the industrial capacity. The national sharia insurance companies should be able to capitalize on the momentum by preparing themselves to be more competitive and efficient, so that they can compete and lead the regional sharia insurance market, he affirmed.

To that end, he urged AASI to encourage sharia financial literacy, particularly about sharia insurance, among members of the public; make the most of digital technology to strengthen the Indonesian sharia insurance industry; and create attractive products for Indonesia’s productive generation.

In addition, the vice president called on the AASI to improve the quality and capacity of human resources in the field of sharia finance and insurance and take active part in supporting micro, small, and medium entrepreneurs (MSMEs) in terms of business protection and literacy.

“Sharia insurance can also encourage sharia financial inclusion by targeting the middle to lower class population that makes up the large market through micro insurance products. There is a lot of evidence that the industry is successfully engaged in micro products. Hence, micro products, with an unburdening and affordable payment system, must be innovated,” he remarked.

Amin believes that the sharia insurance industry can thus operate in the right market, as it can offer products that the conventional insurance industry is unable to provide.

Source: Antara News

Vice President Ma’ruf Amin has said he is confident that Indonesian citizens are smart and understand the dangers posed by identity politics in elections.

He made the statement in response to journalists’ questions regarding the measures that must be taken to prevent identity politics, as was seen during the 2019 elections.

“Actually, our people are smart now, alright. They are smart,” he remarked here on Thursday.

According to Amin, since everyone–be it the government, political parties, religious leaders, and community leaders–has appealed against identity politics, then it means that the public can understand the concept.

“Therefore, it should not be an issue,” he said.

He noted that when choosing a leader, everyone has preferences or tendencies regarding some aspects, and this is natural. However, resorting to identity politics during campaigning or promoting candidate leaders must not be done.

“When people choose, inevitably there are feelings like ‘I (relate to this candidate more), (we have) similar views, (I) prefer (them) because they are better, because of this, this, this.’ I think when it comes to choices, it’s not a problem. What is (must be) avoided is that if they campaign, it should not employ (identity politics) aspect,” he said.

He then noted that in the past, differences in holiday determination had also caused conflicts at lower levels. But now, differences in holiday date stipulations no longer lead to conflict.

“I think we hope that starting 2024, there will be no more conflicts due to differences in choices,” Amin added.

Source: Antara News

The National Research and Innovation Agency (BRIN) has called for national and international cooperation and research to realize the goal of making oceans around small islands clean, healthy, resilient, and productive.

“The research team is targeting a short-term goal, which is the establishment of multidisciplinary research networks and cooperation, both nationally and internationally,” a researcher at BRIN’s Community and Culture Research Center, Agus Heri Purnomo, informed during a workshop on the “Study of Small Islands” here on Thursday.

Researchers will also push for ensuring the availability of scientific information, which can be used as the basis for formulating policies on the sustainable use of marine resources within the framework of the blue economy, and as Indonesian researchers’ contribution to the “Decade of Ocean Science,” he said.

The “International Decade of Ocean Science for Sustainable Development or the Decade” seeks seven outcomes by 2030, namely oceans that are clean, healthy, resilient, productive, predicted, safe, accessible, inspiring, and engaging.

BRIN held the workshop on the study of small islands as part of the Decade agenda.

The workshop sought to build partnerships between governments, entrepreneurs, and researchers or academicians to design collaborations to make oceans clean, healthy, and productive.

He said that currently, cooperation with several parties is being planned, including state-owned publisher Balai Pustaka and the Indonesian Maritime Foundation, for ocean literacy.

The funding proposal submitted to the United Nations Educational, Scientific and Cultural Organization (UNESCO), the United Nations Development Programme (UNDP), and local governments is also under process.

In addition, engagement efforts are being intensified with regional research partners, such as the Korea Indonesia Marine Technology Office.

An island is considered small if its area is no more than or equal to two thousand square kilometers. In Indonesia, the number of small islands is higher than large islands.

“Various efforts are needed to answer the existing challenges to achieve clean, healthy, and productive oceans around small islands,” Purnomo said.

Source: Antara News

Vice President Ma’ruf Amin on Thursday highlighted the vital role of the sharia economy and finance in scripting an inclusive national economic recovery.

“On this occasion, I would like to emphasize the importance of the role of sharia economy and finance in an inclusive economic recovery,” he said at the 19th anniversary commemoration of the Indonesian Sharia Insurance Association (AASI), themed “Harmonization of Nusantara in Advancing Sharia Insurance,” here.

Sharia economy and finance, which are being prioritized in the national economy, are expected to serve as engines that will lead the Indonesian people to achieve development goals that are prosperous and just, Amin added.

For that reason, he said, all the great potential that Indonesia has, such as its population, demand, and the halal lifestyle that is increasingly becoming more practical in Indonesia and various parts of the world, must be used as economic leverage.

“The government also continues to support the development of the national sharia finance industry to make Indonesia the center of the world’s sharia finance. This is our joint task to pursue this big goal,” he added.

The Vice President said that he has requested that the work programs of the National Committee for Islamic Economy and Finance (KNEKS) be continuously developed and urged all parties to work together and work faster, including for the strengthening and development of the sharia financial services industry products.

The Islamic insurance industry has a great opportunity to strengthen the halal value chain, both through the halal product industry and the sharia finance industry, he noted.

He emphasized that the existence of sharia insurance is essential to push the development of the halal product industry in Indonesia, including for micro, small, and medium enterprises (MSMEs), so that they can become more competitive both at the national and international levels.

Source: Antara News

Coordinating Minister for Economic Affairs, Airlangga Hartarto, has projected national inflation in the range of 4.0 to 4.8 percent for 2022, or slightly above Bloomberg’s estimate of 4.5 percent. Therefore, he hoped that several programs and extra efforts that are being carried out will continue to be carried out well.

“Some things that need to be maintained and anticipated in controlling inflation include the role played by the government through the state budget to contain fuel prices, which will certainly be a challenge in the second quarter,” Hartarto said during the 2022 national coordination meeting on inflation control on Thursday.

To contain the spike in inflation, the synergy of the Central Inflation Control Team (TPIP) is continuously being pursued, he added.

Several measures, including maintaining price affordability, food and supply availability, smooth distribution, and effective communication, have been intensified, especially to maintain stability and purchasing power.

Meanwhile, from the perspective of the Regional Inflation Control Team (TPID), almost all districts and cities have strengthened their participation in 2022.

“TPID participation has reached 78 percent this year; last year, it was still around 71 percent,” the minister informed.

Hartarto, who is also the chair of TPIP, said that there are also several regions that have excelled in controlling inflation, so it is hoped that additional facilities and incentives from the Minister of Finance can be provided.

The national Consumer Price Index (CPI) inflation in July 2022 was recorded at 4.94 percent on an annual basis (year-on-year/yoy).

He said the factors for the high national inflation in the mid-term this year were global commodity prices, weather, inflationary pressures in several regions, and production disruptions.

Bank Indonesia (BI) Governor Perry Warjiyo had earlier noted that Indonesia’s inflation rate had reached 4.94 percent year-on-year in July 2022, fueled by volatile food prices, which rose 11.47 percent.

Meanwhile, President Joko Widodo had said he believes that sound synergy and cooperation between the regional governments and TPIP and TPIDs would help keep the inflation rate below 3 percent.

“I believe if the cooperation that I have mentioned earlier (runs well) and governors, district heads and mayors, TPIP, and TPIDs all work (together), (then we will be able to) return it to below 3 percent. As a matter of fact, the goods are available,” he affirmed.

To this end, Widodo had instructed Home Affairs Minister Tito Karnavian to issue a regulation allowing regional governments to utilize the unforeseen budget fund in their regional budget (APBD) to offset food transportation costs that posed a problem.

The President also urged Transportation Minister Budi Karya Sumadi to respond to a complaint regarding high inter-regional air cargo fares that also contributed to inflation.

Moreover, he asked State-Owned Enterprises Minister Erick Thohir to increase the number of aircraft to help normalize the prices of air tickets.

He further called on all regional heads to get a grasp on the inflation situation in their respective regions.

The President noted that five provinces recorded high year-on-year inflation in July 2022: Jambi (8.55 percent), West Sumatra (8.01 percent), Bangka Belitung (7.77 percent), Riau (7.04 percent), and Aceh (6.97 percent).

Source: Antara News

To strengthen the domestic market, the government will support furniture and handicraft businesses by intensifying the absorption of domestic furniture products, Minister of Industry Agus Gumiwang Kartasasmita has said. “In the domestic market, the government will intensify the use of domestic products to become a momentum for industry players to improve performance,” he informed at the opening of the 2022 Indonesian Furniture Exhibition at JIExpo Kemayoran here on Thursday.

Business actors have also been asked to pay special attention to the domestic component level (TKDN) certification so that they can sell their products through the e-catalog of the Government Goods/Services Procurement Policy Institute (LKPP).

The government, on its part, will continue to improve services for domestic business actors, especially by freezing imported products that have been substituted for local products in e-catalogs.

The Ministry of Industry will also offer a free domestic component level (TKDN) certification program, especially for small and medium-sized furniture and handicraft industries.

“We will continue to strive so that the TKDN certification process in the future will not only be cheaper, but also faster,” Kartasasmita said.

The Ministry of Industry has also expressed support for the plan of the Indonesian Furniture and Handicraft Industry Association (HIMKI), which will hold exhibitions up to two times a year to capture the potential growth of the industry.

In 2021, the furniture and handicraft industry grew by around 27 percent on an annual basis, with the furniture industry growing 32 percent and the handicraft industry growing 17 percent.

“I am optimistic that government policies that strengthen people’s purchasing power will support increased sales of furniture, especially in the domestic market,” Kartasmita said.

Coordinating Minister for Economic Affairs, Airlangga Hartarto, had earlier emphasized the importance of digital transformation to bolster the development of micro, small, and medium enterprises (MSMEs).

“MSME digitalization would bring benefits, to help in product marketing during the pandemic, facilitate transaction and financial recording using digital payment platform, and increase access to the market as well as business development training,” Hartarto said in a statement issued here on Sunday.

Given the fast pace of development of the digital economy, digital transformation is a must for MSMEs to improve their efficiency and business development, he added.

In a bid to upgrade MSMEs and encourage digital technology adoption among them, the government has taken several initiatives and policies, including the Proud of Made in Indonesia Products (BBI) program.

The program seeks to encourage MSMEs to sell their products through digital media or e-commerce, he noted.

Source: Antara News

Minister of Industry Agus Gumiwang Kartasasmita has said that he will support efforts to achieve furniture and handicraft exports of US$5 billion in 2024.

“We, the government, together with HIMKI (Indonesian Furniture and Handicraft Industry Association), want to realize the export target of US$5 billion by 2024,” he remarked at the opening of the 2022 Indonesian Furniture Exhibition at JIExpo Kemayoran here on Thursday.

He said he is optimistic that the target can be achieved considering that exports of the furniture industry in 2021 reached US$2.5 billion, up 33 percent compared to the previous year.

In 2022, global furniture industry consumption is expected to grow by 3.9 percent, supported by European government policies to provide stimulus for economic recovery.

The global furniture industry revenue is also expected to continue to increase consistently from US$1.3 trillion in 2020 to US$1.8 trillion in 2025.

“We can clearly and clearly capture the global optimism in this industry. Therefore, the domestic furniture industry should not lose in capturing this opportunity,” the minister said.

Although a decline in demand was estimated in the first quarter of 2022 due to inflation in the United States and Europe, Kartasasmita forecast that the demand from Indonesia’s two main furniture export markets will recover soon.

“I see economic data in the US, which, I think, has started to rebound, so God willing, it will have a positive impact on the furniture industry,” he said.

He further assured that he will follow up on the illegal export of furniture raw materials, which would take away the added value from downstream industry and exports.

“This is also relevant to President Jokowi’s (Joko Widodo’s) speech, which continues to emphasize the importance of downstreaming,” he added.

On average, 50 percent of Indonesian furniture is exported every year to the United States and another 20 percent to Europe.

Source: Antara News