Day: August 23, 2022

The Ministry of State-Owned Enterprises (SOEs) has said that state-owned enterprises are supporting the development of the new capital city (IKN) Nusantara in East Kalimantan.

“We definitely support it,” the ministry’s special staff, Arya Sinulingga, said here on Tuesday.

State-owned telecommunications companies, namely Telkom and Telkomsel, are supporting the development of the telecommunications infrastructure at IKN, he informed.

SOEs are also supporting and participating in the building of transportation infrastructure at IKN Nusantara.

Meanwhile, state-owned electricity company PLN is focusing on the development of renewable energy in Nusantara, he said.

Earlier, PT Telkom Indonesia’s (Persero’s) president director Ririek Adriansyah and president commissioner Bambang Brodjonegoro as well as the head of IKN Authority, Bambang Susantono, inaugurated Micro Edge DC neuCentrIX in Sepaku and a Digital Community Center (DCC) in Bukit Raya Village, Sepaku Sub-district, Penajam North Paser, East Kalimantan.

According to Brodjonegoro, one of the important aspects of IKN’s development is the use of digital technology. NeuCentrIX Sepaku and Digital Village are part of the Telkom Group’s efforts to develop digital technology in the IKN area.

NeuCentrIX Sepaku is a data center built to support and realize digital technology.

The data center has been established to serve the need for data storage and communication systems.

Meanwhile, Susantono lauded Telkom Group for providing support for digitizing the IKN.

He said digital technology, which will make IKN a smart city, will be applied to the transportation system, for building maintenance, ensuring energy-use efficiency, and supporting various activities of daily life at IKN Nusantara.

Source: Antara News

Minister of Industry Agus Gumiwang Kartasasmita has said that he is optimistic about the development of the digital economy potential in Indonesia through continued efforts to push the existing potential.

“These efforts are being carried out so that Indonesia becomes a part of the digital technology producer and Indonesia is able to obtain maximum benefits in its development,” the minister informed in a statement received in Jakarta on Tuesday.

Some of the steps taken include expanding and enhancing the capabilities of the domestic content software industry, accelerating access expansion, and improving digital infrastructure.

They further include preparing digital transformation road maps in strategic sectors, accelerating the integration of national data centers, preparing digital human resource (HR) needs, and preparing regulations for financing schemes and funding.

“Under the direction of President Joko Widodo, the government has prepared a digital economy development framework for 2021–2030, which will serve as a guide for realizing the vision of becoming a digital economy power and spurring inclusive, connected, and sustainable economic growth,” Kartasasmita said.

The framework of digital economy development includes four pillars for sustainable growth. The first pillar is the development of human resources, especially digital talents who have science and technology skills. The second is the establishment of strong digital and physical infrastructure to increase economic flows and create job opportunities in both sectors.

The third pillar is simplifying various bureaucracies through policies, rules, and standards that support and reduce barriers to innovation. The fourth pillar is carrying out research and digital innovation to generate added value for the industry and reduce dependence on natural resources.

According to the minister, the digital economy framework is very important because of the tremendous potential of the digital economy in Indonesia. Based on research from Google, Temasek, and Bain & Company, the value of Indonesia’s digital economy will reach US$70 billion in 2021, or the highest in Southeast Asia.

The potential of the digital economy is still growing and its value is expected to jump to US$146 billion by 2025.

“I believe this figure will be very easy to achieve because currently, the use of the Internet is (becoming) increasingly massive,” he said.

Based on data from We Are Social, this is evident from the surge in the number of Internet users in the country. In 2018, the number of Internet users in the country stood at 132.2 million. Their number soared to 202.6 million in 2021, and this year, it is projected to reach 210 million.

“This condition shows how big the potential of the digital economy is to immediately optimize it in the economy,” Kartasasmita said.

The Ministry of Industry is, therefore, taking strategic steps to support digitalization, including by accelerating business transformation in the manufacturing sector through the Making Indonesia 4.0 road map.

Then, in keeping with the commitment to expand and improve the capabilities of the domestic content software industry, the Ministry of Industry has organized a technical guidance program to train the younger generation so that they can contribute in real terms to the growth of the national digital economy.

Through this program, the Ministry of Industry expects local production of application software, games, and animations, which can compete with global products.

So far, the “Technical Guidance on the Development of the Content Software Industry” has been provided to 100 students from four Islamic boarding schools in Indonesia.

“Through this program, we provide understanding and motivation to the younger generation about the importance of digitalization in an effort to accelerate national economic recovery,” director general of metal, transportation equipment, and electronics (ILMATE) industry, Taufiek Bawazier, said.

The Ministry of Industry has also devised industrial development activities for Artificial Intelligence (AI), Big Data, and other technologies needed in the digital economy.

These efforts must be supported by quality cybersecurity. For this reason, the ministry has built technology and innovation center development areas (Digital Technopark) at five locations, namely Batam, Bandung, Semarang, Bali, and Makassar.

“In addition, the government is also accelerating physical and digital infrastructure improvements, such as the development of 5G networks and the plan to procure low orbital satellites to provide Internet services to remote areas of Indonesia,” Bawazier said.

Source: Antara News

The Indonesian Government is currently preparing an alternative scheme for adjusting the price of fuel oil, Coordinating Minister for Economic Affairs Airlangga Hartarto has informed.

“(About) the scheme, the government has prepared several alternatives, and of course, we will report it to the President soon,” he said at the Presidential Palace, here on Tuesday.

Earlier, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan had hinted at the possibility of President Joko Widodo (Jokowi) announcing an increase in fuel prices, saying the government cannot continue to maintain the current price of diesel fuel and Pertalite (subsidized fuel).

“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,” Pandjaitan emphasized during a public lecture on August 19, 2022.

Hartarto said the announcement regarding the fuel price adjustment is awaiting a decision on strategies.

“The announcement is waiting for the scenario taken later,” he added.

For 2022, the government has set subsidies of Rp502.4 trillion for fuel, comprising energy subsidies of Rp208.9 trillion and energy compensation of Rp293.5 trillion. Currently, only 6 million kiloliters of subsidized Pertalite is left out of the 23 million kiloliter quota allocated until the end of 2022.

Furthermore, the government has estimated that Pertalite will run out in October 2022, so there is a need for additional volumes, including subsidized diesel fuel.

The National Energy Council (DEN) has suggested two ways the government can meet the fuel subsidy target: implementing a closed distribution scheme through the use of an application and providing direct cash assistance to needy people to maintain their purchasing power.

DEN has a long-term strategy to reduce fuel imports, which includes accelerating the conversion of cars from fuel-to electricity-based.

Source: Antara News

Tourism and Creative Economy Minister Sandiaga Uno on Tuesday invited a US-ASEAN Business Council (US-ABC) delegation to help develop Indonesia’s tourism and creative economy sector.

He made the request while meeting with the delegation led by US-ABC president and CEO, Ted Osius.

“One of (the efforts) is by strengthening the capacity and capability of micro, small, and medium enterprises (MSMEs) in the tourism and creative economy sector through digitalization,” Uno said here.

The goal of digitizing and empowering MSMEs is to create 1.1 million new jobs in 2022 and 4.4 million jobs in 2024, he informed.

Meanwhile, the meeting with the US-ABC delegation was aimed at increasing the understanding of the US business world about the Indonesian government’s policies to further develop economic cooperation between the US and Indonesia, especially in the tourism and creative economy sector.

According to Uno, digitalization has a crucial role in the major paradigm shift toward the digital-based economy, which is proceeding rapidly due to the COVID-19 pandemic.

“A digital touch will basically create quality and sustainable jobs,” he said.

The Tourism and Creative Economy Ministry has been encouraging the development of quality and sustainable tourism by implementing the goal of reducing carbon emissions by 50 percent by 2035 and achieving zero emissions or net zero by 2045. Other initiatives have also been launched for handling food loss and food waste.

“There are many investment opportunities that we can convey. We invite US-ABC members to invest in the five super-priority destinations, priority tourism destinations, and various tourism economic zones in regions,” Uno said.

Meanwhile, Osius conveyed the US-ABC’s praise for the Indonesian G20 presidency’s calls for efforts for global economic recovery and said the group is looking forward to increasing the existing potential in the tourism and creative economy sector.

Source: Antara News

Cooperatives and Small and Medium Enterprises (MSEs) Minister Teten Masduki is targeting to get 2.5 million micro, small, and medium enterprises (MSMEs) to obtain business identification numbers (NIBs) by 2024.

He said that to reach the target, his ministry has launched the Formal Transformation of Micro Enterprises (Transfumi) program to accelerate the issuance of NIBs through assistance provided by volunteers of the Transfumi Guard.

“The Transfumi program involves assistant volunteers of Transfumi Guard who come from associations that are competent to assist MSME players in Indonesia to access NIBs through the OSS-RBA (Online Single Submission Risk-Based Approach) application,” Masduki informed at an NIB distribution event for individual MSEs at Gajah Mada University, Yogyakarta, according to an official statement issued here on Tuesday.

Based on the data, 50 out of 600 volunteers of Transfumi Guard are actively assisting MSME players in Yogyakarta.

According to the minister, owing an NIB is essential for MSMEs to transform informal businesses into formal ones, which will make it easier for them to access bank financing.

Furthermore, he said that the government is developing cooperation with digital applications to apply credit scoring for MSMEs.

“The goal is for unbankable MSME actors to have certainty in obtaining financing through credit scoring,” he added.

In addition, he also emphasized that MSMEs must be part of national industrialization.

“Therefore, the automotive industry must obtain its components from MSMEs, the furniture industry must (obtain materials) from MSMEs, and the food industry also get its ingredients from MSMEs. That way, MSMEs and industries can be integrated so that the gap between large and small businesses will disappear,” he explained.

The ease of licensing, including obtaining NIBs, makes it easier for MSMEs to enter industrialization, he added.

Earlier, President Joko Widodo (Jokowi) had set the target of issuing as many as 100 thousand NIBs to MSMEs per day.

The President also emphasized that support from local governments is needed to achieve the target so that MSMEs can develop their businesses further.

Source: Antara News

The realization of the COVID-19 Handling and National Economic Recovery (PC-PEN) Program budget has reached Rp178.1 trillion, Coordinating Minister for Economic Affairs Airlangga Hartarto informed President Joko Widodo (Jokowi) on Tuesday.

“Regarding the National Economic Recovery (program budget), Rp35.4 trillion has been used for health treatment, which is equivalent to 28.9 percent of the budget ceiling of Rp122.54 trillion, which was utilized (to pay) for patient claims, health workers’ incentives, procurement of vaccines, expansion of health (services), and supporting regional budgets,” he said at the presidential office here on Tuesday.

He conveyed the information after attending a limited meeting on the evaluation of community activities restrictions (PPKM) chaired by the President.

The total budget allocation for PC-PEN Program in 2022 was Rp455.6 trillion.

“As for social protection, Rp82.3 trillion or 53.2 percent (of the budget ceiling) has been spent,” the minister said.

The fund was used to disburse assistance under the Family Hope Program (PKH) to 10 million beneficiary families (KPM), provide basic necessities cards to 18.8 million KPM, direct cash assistance (BLT) for cooking oil worth Rp7.2 trillion to 23.9 million recipients, Village BLT worth Rp17.1 trillion to 7.5 million KPM, among others.

Furthermore, Rp1.3 trillion of the funds was used for providing assistance to street vendors and fishery stalls, while Rp8.9 trillion of it was spent on 2.5 million participants of the Pre-Employment Card Program.

Meanwhile, for the economic recovery program, Rp60.4 trillion, or 33.8 percent of the Rp178.32 trillion budget ceiling, has been used for various labor-intensive projects, the construction of industrial areas, as well as the provision of tax incentives, Hartarto informed.

The funds have also been utilized to establish food, communication, and information security infrastructure, he said.

Earlier, the government was meant to stop the provision of the KC-PEN Program budget at the end of 2022, he noted.

According to Law Number 2 of 2020 concerning State Finances as well as Financial System Stability for Handling COVID-19, the deficit of state revenue and expenditure budget has only been allowed to exceed 3 percent of the gross domestic product (GDP) for three years—or until 2022.

However, although no further special budget will be allocated for the PC-PEN Program, the government will continue the health and social protection programs.

Source: Antara News