Indonesia’s Sumatra Checks for Damage from 6.3 Magnitude Earthquake

Indonesia’s disaster agency is assessing the impact of a strong earthquake that hit off the southern coast of Sumatra island late Tuesday, it said in a statement, noting there had been no reports of damage or casualties by near midnight.

The 6.3 magnitude quake struck at 21:31 local time (1431 GMT), the country’s meteorology and geophysics agency (BMKG) said, with its epicenter 80 kilometers south of the town of Manna in Bengkulu province, at a depth of 52 kilometers.

Manna is about 600 kilometers northwest of the capital Jakarta.

The tremor was felt for 2 to 6 seconds by residents along the southern coastline of Sumatra, prompting some to run out of their homes, disaster agency BNPB said in a statement.

“It was quite strong,” a Bengkulu agency official, Septi, said.

Indonesia straddles the so-called “Pacific Ring of Fire,” a seismically active zone, where different plates on the Earth’s crust meet and create a large number of earthquakes and volcanoes.

In February, a magnitude 6.1 earthquake killed more than 10 people when it struck inland near the western coast of Sumatra.

Source: Voice of America

BI projects 2022 third-quarter economic growth of 5.5 percent

Bank Indonesia (BI) projects Indonesia’s economic growth in the third quarter of 2022 to reach 5.5 percent (yoy) or higher than that in the 2022 second quarter along with continuing improvement in the domestic economy.

To this end, Indonesia’s economy is estimated to experience an upward trend within the central bank’s projection of between 4.5 percent to 5.3 percent (yoy), BI’s Governor, Perry Warjiyo, noted during the 2022 BI RDG Results Announcement.

“Various latest indicators in July 2022 and BI’s last survey results, such as consumer’s trust, retail sale, and Manufacture’s Purchasing Managers’ Index (PMI), had continued to improve,” he remarked here, Tuesday.

Externally, the export performance until July 2022 remains positive amid the stagnation of the global economy that comes with the increasing risk of stagflation and persistently high financial market uncertainty.

For this year’s second quarter, the realization of gross domestic product (GDP) significantly grew 5.44 percent (yoy), or far higher than the estimate and achievement in the previous quarter, with 5.01 percent (yoy).

“The high economic growth is encouraged by the rising domestic demand, especially household consumption, and high export performance,” he explained.

The continuing improvement in the national economy is also reflected in the growth of majority of the industries, especially processing, transportation and warehouse, as well as trade.

Meanwhile, spatially, economic imp is supported by all regions, especially Java, Sumatra, and Sulawesi-Maluku-Papua.

On the occasion, Warjiyo also noted that during the Governor Council Meeting (RDG), BI had decided to raise the BI-7 Day Reverse Repo Rate (BI7DRR), from 3.5 percent to 3.75 percent.

The deposit facility interest rate as well as lending facility interest rate are also raised to three percent and 4.5 percent respectively.

Source: Antara News

Blue economy can bolster residents’ well-being: Ministry

The Coordinating Ministry of Maritime and Investment Affairs underlined the importance of the blue economy in bolstering the well-being of residents in the coastal and inland regions.

“If we talk about food resilience, marine issues will be important for all of us. We must imagine, if one day, humans can no longer get food on land, where will they go? Certainly, (they will venture in) to the sea,” the ministry’s Deputy for the Maritime and Energy Sovereignty Coordination Basilio Dias Araujo said while speaking at “Blue Finance Accelerator Program Kick-off and Consultation Program for the Blue Economy Development in Indonesia” seminar here, Tuesday.

He said that the blue economy, including blue funding, can bolster efforts to protect the sea and residents whose life depends on the sea.

The blue economy sector has become more attractive and more financial opportunities in the sector have been opened, he stated.

Araujo noted that the coordinating ministry had developed several instruments to monitor economic development relevant to the blue economy sector, such as indexes on blue economy and blue economy companies.

He pointed out that the blue economy company index will become the indicator to examine companies’ compatibility with blue economy standards.

“Later, we will develop the instrument further to monitor the categorization. We will collaborate with the national accreditation commission to certify companies that have fulfilled criteria on the blue economy,” Araujo remarked.

The coordinating ministry’s deputy emphasized that proper management was indispensable in the efforts to develop the blue economy in order to ensure its benefits for the environment, marine health, and economy to bolster the residents’ prosperity.

“Blue economy and healthy sea have essential roles in the global economic system to rebuild the residents’ prosperity and well-being from the sea and recover biodiversity and marine health,” he remarked.

Source: Antara News

JMFW to expand global market for Muslim fashion products: Minister

Trade Minister Zulkifli Hasan believes that the Jakarta Muslim Fashion Week (JMFW) could be a momentum for Indonesian Muslim fashion products to expand their global market and become the world’s reference on the sector.

“We, from the Trade Ministry, have prepared a road map to facilitate (export activities of the products) to the global market,” he stated while attending the Road to JMFW event titled “From Local Wisdom for Global Inspiration” here on Tuesday.

His side strives to open access to the global market by making various trade agreements and forging cooperation with several countries that will make the price of Indonesian products more competitive since import duties are not imposed.

“With ASEAN, South Korea, Japan, we do not impose import duties anymore,” he noted.

Furthermore, he affirmed that later, the same policy will also be implemented with the Middle East, Central Asia, and Eastern Europe.

Meanwhile, cooperation on free trade with the United Arab Emirates (UAE) is being processed for ratification by the Indonesian House of Representatives (DPR RI), he remarked.

The minister stated that Indonesia will utilize the opportunity through its cooperation with UAE to enter the African market.

“Africa has a (potential) market of one billion people,” he noted.

He assessed that the world’s growing Muslim population has become a potential market for the Muslim fashion industry in Indonesia.

“I do not think the looks of (our products) are inferior to the products of other countries. It is very good. I think it is time for Indonesia to go global and dominate the global market of Muslim clothing,” he stated.

The export value of Indonesian Muslim clothing in the first semester of 2022 had reached US$2.8 billion, an increase of 39.86 percent year-on-year (yoy), which was US$2.04 billion.

“We are ranked 13th out of the world’s (biggest) Muslim clothing exporters. (However), we (only) have a share of 1.86 percent. It is still small. Hence, we will improve it,” Hasan remarked.

The JMFW will be held concurrently with the 37th Trade Expo Indonesia (TEI) on October 20-22, 2022.

Source: Antara News

Ministry continues to eradicate online gambling

The Ministry of Communication and Informatics (Kominfo) continues to eradicate sites and accounts related to online gambling on a daily basis.

“We continue to clean it (objectionable sites and accounts) every day through the surveillance system that exists in Kominfo,” Minister of Communication and Informatics Johnny G. Plate stated here on Tuesday.

According to Plate, the ministry acts stringently against online gambling sites, one of the illegal content platforms in Indonesia, on a daily basis. The ministry has blocked at least 15 electronic system organizers that offer online gambling.

Online gambling cases, while have been declared illegal by the government, are quite hard to eradicate.

According to the minister, handling online gambling is akin to killing one and thousand growing in its place.

Handling online gambling necessitates hard work and collaboration both in the digital and the real world. In the digital world, the ministry continues to block emerging gambling sites and accounts, he noted.

Meanwhile, in the physical world, online gambling cases are handled by the law enforcement apparatus, including the police.

“This is a good collaboration,” Plate remarked.

During the period from 2018 to August 22, 2022, the ministry has blocked access to 566,332 pieces of content related to online gambling. From the start of the year to August 22, the ministry had blocked 118,320 pieces of gambling content.

In 2018, the pieces of content blocked reached 84,484 and that figure declined to 78,306 in 2019. The number of pieces of gambling content blocked increased to 80,305 in 2020 and rose sharply to 204,917 in 2021.

Blocking gambling sites is not the only way that the ministry eradicates online gambling from Indonesia’s digital space.

The ministry also relies on digital literacy, so that the people are not easily affected by negative content in the digital space, including online gambling.

Source: Antara News

Industry Ministry pushes food industry diversification

The Industry Ministry is encouraging the diversification of food industry products to ensure adequate availability of affordable, safe, quality, and nutritionally balanced food for the people.

“The food industry can play an important role in achieving these targets. So far, the food industry sector has made a significant contribution to the national economy,” Industry Minister Agus Gumiwang Kartasasmita said in a statement released here on Tuesday.

The food industry sub-sector contributed 38.38 percent to the gross domestic product (GDP) of the non-oil and gas processing industry in the second quarter of 2022.

In addition, it also contributed to the national export value, which reached US$21.35 billion.

“The data shows that the performance of the food industry sector is quite good, which has also been able to provide a trade balance surplus of US$12.95 billion,” the minister said.

The five main export commodities of the food industry are palm oil, palm cake, margarine, coconut oil, and frozen shrimp.

The food industry sub-sector also ranked second in terms of its contribution to investment in the non-oil and gas industry in the second quarter of 2022 at Rp22.42 trillion.

“We should be grateful for the increase in industrial performance, especially in the food sub-sector. This needs to be maintained and improved again, while remaining vigilant in the midst of the threat of a world food crisis,” he added.

The largest investments in the sector were in the bread, flour, and palm oil industries, among others.

The industry absorbed 5.21 million workers, or accounted for 20.87 percent of the total workforce in the non-oil and gas manufacturing sector, which reached 18.64 million.

Meanwhile, in the small and medium-scale food industry, 1.68 million business units contributed 1.33 percent to the national GDP in the second quarter of 2022, according to the ministry.

“All provinces in Indonesia have small and medium-scale food industry (IKM) centers, with a total of 4,107 IKM centers with a total of 155,605 business units that absorb 431,830 workers,” Kartasasmita said.

The ministry’s director general of agro industry, Putu Juli Ardika, said there are seven main commodities that are used as raw materials by the food industry—wheat flour, sugar, corn, fisheries, cooking oil, poultry meat, beef, and rice.

“Currently, the stock is still safe,” he informed.

Indonesia has abundant biodiversity to support the diversification of processed food products, including exploring the potential of cassava flour, porang, sorghum, sago, canna, banana, breadfruit, taro, and sweet potato, he added.

Source: Antara News

BI sees core inflation at 4.15% due to fuel prices

Bank Indonesia (BI) has projected that core inflation will rise to 4.15 percent year-on-year (yoy) this year and inflation expectations will also increase on the back of soaring non-subsidized fuel prices.

“In addition, volatile food price inflation and increasing inflationary pressure from the demand side have also boosted the forecast,” BI Governor Perry Warjiyo informed while announcing the results of the central bank’s board of governors’ meeting (RDG) for August, in Jakarta on Tuesday

Thus, he estimated, the consumer price index (IHK) inflation will also increase to 5.24 percent yoy by the end of this year, driven by high global energy and food prices as well as supply gaps.

In July 2022, the consumer price index inflation was recorded at 4.94 percent yoy, or higher than the inflation of 4.35 percent yoy the previous month.

Inflation in the volatile foods category was recorded at 11.47 percent yoy during the period, which was mainly influenced by rising global food prices and supply disruptions.

Inflation in the administered prices category also increased to 6.51 percent yoy, in line with the increase in air transportation and non-subsidized fuel prices.

“Meanwhile, core inflation was still relatively low at 2.86 percent (yoy) in July 2022, supported by the consistency of BI’s policies in maintaining inflation expectations,” he said.

According to Warjiyo, these developments are expected to push inflation in 2022 and 2023 at the risk of exceeding the upper limit of the target of 2–4 percent.

Therefore, stronger policy synergy is needed between the central and regional governments with BI on measures to control the increase in inflation.

Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, earlier asked his team to prepare a model to review the increase in the inflation rate due to rising fuel prices, although it is still under control.

Speaking at a public lecture at Hasanuddin University, Makassar, South Sulawesi province, which was followed online from here on Friday, he said that Indonesia has been quite good at controlling the inflation rate.

According to Statistics Indonesia’s data, the inflation of 4.94 percent yoy in July 2022 was still lower compared to other countries and regions, such as the United States (8.5 percent), the European Union (8.9 percent), and Turkey (79.6 percent).

However, Indonesia’s inflation rate exceeded the government’s target of 3 percent yoy.

The coordinating minister noted that the change in the inflation rate will depend on the adjustment in the prices of diesel and Pertalite fuels, which are still being subsidized by the government.

Hence, he signaled that President Joko Widodo (Jokowi) will likely announce an adjustment in fuel prices soon to reduce the government’s subsidy burden, which has reached Rp502 trillion (US$33.8 billion).

“Our fuel prices are the cheapest in the region. They are far cheaper than (fuel prices in) other (countries) and they burden our state budget too much,” he remarked.

Hence, Pandjaitan asked the public to be prepared if fuel prices are increased.

“Because, we cannot maintain them (the prices) that way after all. To reduce the pressure on us (our state budget) due to the rising price of crude oil, we must be prepared,” he emphasized.

Source: Antara News

Driving transportation change in city where President lives

While its status as the city where the President lives has been a source of pride for Bogor, West Java, it has also put a great responsibility on the local government’s shoulders, particularly in terms of managing traffic.

This is because the Bogor city center is home to both the Bogor Presidential Palace and the Bogor Botanical Gardens, which have been famous since the time of the first Indonesian President Soekarno.

The city is famous as a resting place given its cool weather, which offers a contrast to polluted Jakarta.

The city of Bogor, which is often referred to as a buffer for Jakarta, has developed rapidly, with a corresponding increase in the number of vehicles plying its roads.

The city’s mayors have often faced challenges in handling traffic while being constrained by a lack of understanding among motorists, street traders, and the general public about maintaining traffic order.

However, the Bogor city government has continued to put efforts into improving the road infrastructure and other transportation facilities.

When President Joko Widodo (Jokowi) and his family chose to live at the Bogor Palace in 2015, Bogor Mayor Bima Arya Sugiarto enthusiastically welcomed them, saying that it would be an honor to monitor the development of the city where the President would live.

Sugiarto said he would prioritize improving the city’s traffic flow, and raised the “Bogor Lancar” or “Smooth Bogor” slogan.

At the time, Sugiarto was well aware that managing transportation would not be easy. Based on the latest data from the West Java provincial government, the number of owned vehicles in Bogor city increased from 379,724 in 2013 to 462,030 in 2021.

Another significant increase occurred in the number of motorcycles and auto motorcycles, which rose from 310,097 to 359,716.

The rise in the number of motorized vehicles was triggered by the city’s population growth, which reached 1,052,359 in 2021, according to Statistics Indonesia (BPS).

Meanwhile, daily public mobility on various modes of transportation inside and outside the city was estimated at 200 thousand people.

Building road infrastructure

To tackle traffic jams, the Bogor city administration first concentrated on improving road conditions, including by revitalizing some pedestrian paths to prevent street traders from using them, which had long disrupted traffic order.

The policy of restoring the use of pavements also came with the plantation of green plants and trees on the roadside, as well as the laying of a small lane for cyclists.

As a result, in recent years, the traffic of pedestrians and vehicles has not been disrupted by street traders, especially on protocol roads such as Pajajaran Main Road, Otista Street, Ir. H. Djuanda Street, which surround Bogor Palace, Bogor Botanical Gardens, Bogor Market, and the Suryakencana Area.

This feat has been possible due to the city government’s cooperation with the Bogor City Police to implement a one-way system (SSA) on those streets. This has not only allowed President Widodo and the Paspampers (Presidential Security Force) to leave and return smoothly, but the public has also felt the improvement in traffic congestion, especially in the city center.

However, a number of obstacles still exist, such as the narrowing road section on the Otista Bridge that often leaves vehicles stuck.

Hence, the Bogor city government has proposed a Rp52.5-billion budget for the bridge’s widening to the West Java provincial government and carried out land acquisition for the purpose.

Furthermore, the local government has paid attention to residents living at the borders, where the plan for building Regional Ring Road (R3) in Katulampa village is already under process and will be included in the development budget in 2023.

The administration has also initiated the construction of the 4.5 km-long Ring Road (R2) in the North Bogor sub-district area for which Rp150 billion is needed for land acquisition.

Traffic management

The Bogor city government has continued to collaborate with the central government and the private sector to manage city transportation facilities and infrastructure to break congestion spots and reduce the number of small buses (angkot), as many angkots are no longer considered roadworthy.

Since 2021, the city government has welcomed the “Biskita Trans Pakuan” bus service that is being subsidized by the Transportation Ministry through the Greater Jakarta (Jabodetabek) Transportation Management Agency (BPTJ).

Until now, 147 angkots have been converted into 49 Biskita Trans Pakuan buses that serve four corridors, traveling from the city center to the outskirts.

The conversion program is expected to cut the number of angkots operating in the city to 3,432 by 2024.

In addition, operational permits have been revoked for 1,010 angkots that were 20 years old and had not been refurbished by their owners.

The city has also continued to push the BPTJ to revitalize the Baranangsiang Terminal to help organize the province’s intercity transportation (AKDP).

BPTJ is also reportedly exploring public-private partnership to manage the Baranangsiang Terminal.

On a larger scale, Bogor city is waiting for the Greater Jakarta LRT operations that will serve Jakarta, Cibubur, and Bogor.

Planning for future

In December 2021, during a year-end talk, Mayor Sugiarto, accompanied by Deputy Mayor Rachim, emphasized the importance of preparing the city’s tourism and service industry ahead of the transfer of the national capital from Jakarta to East Kalimantan.

On average, hotel occupancy in this rainy city relies on the activities of ministries and agencies. Therefore, the city needs to equip itself by hosting more regional or even international events.

Public transportation modes such as “Biskita Trans Pakuan” and the Greater Jakarta LRT that travel through thematic villages are expected to foster economic equality throughout regions and reduce the number of vehicles entering the city.

Source: Antara News