Day: September 7, 2022

Digitalization, which is currently developing at a rapid pace in Indonesia, is expected to eliminate corruption and promote efficiency in various fields, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan stated.

“We can digitalize this country to eradicate corruption. It will be more efficient with better tax revenue. It will also encourage our young generation to become more creative,” Pandjaitan noted at the FGD on Submarine Cable Investment in Indonesia followed virtually in Jakarta, Wednesday.

The minister remarked that one of the drivers behind digital economic growth in Indonesia is the submarine cable project. Underwater cables are akin to a toll road for the internet to communicate and carry digital data, with fast transmission speeds.

So far, Indonesia has four submarine cable projects in the Indonesian waters: the Echo Project in collaboration with Meta, Google, and XL Axiata; Bifrost project in collaboration with Meta, Keppel Midgard, and Telin; Apricot project in collaboration with Meta, Keppel Midgard, and NTT; and the Sun Cable Project, with a total investment of Rp36.6 trillion, the minister stated.

The Indonesian Research Affiliated Institute (LAPI) of the Bandung Institute of Technology (ITB) stated that the implementation of 5G networks, through the preparation of submarine cable infrastructure in Indonesia, has the potential to increase GDP cumulatively up to 9.5 percent, or Rp2.874 trillion, during the 2021-2030 period.

On the same occasion, General Chairperson of the All-Indonesian Sea Cable Communication System Association (Askalsi) Ahmad Ludfy explained that the Sea Cable Communication System (SKKL) has a crucial role to play in supporting digitalization.

If lined up, SKKL in the world spans 1.2 million km in length and connects 99 percent of the data traffic.

“About 40-60 percent of the international traffic, apart from satellite traffic, is passed through SKKL. Hence, this SKKL project is very strategic,” Ludfy remarked.

He noted that the submarine cable infrastructure in Indonesia was still dominated by foreigners, both in terms of cables, ships, technology, and the security system.

Hence, he encourages synergy from all related parties to secure Indonesia’s submarine cables. This is also in line with the Ministry of Communication and Informatics’ program to encourage digital literacy.

“The target is to achieve state sovereignty. We also hope that the security of submarine cables can succeed the government’s program at all levels,” Ludfy remarked.

Ludfy believes the SKKL industry will continue to grow along with the need for the internet. He believes that the optical fiber is more optimal for data transmission in the digital era as compared to satellite technology.

Source: Antara News

The Maritime Affairs and Fisheries (KKP) Ministry informed that it is coordinating with the Upstream Oil and Gas Regulatory Agency (BPH) and state-owned oil company PT Pertamina to obtain additional subsidized fuel quota for fishermen.

“We have asked fishermen’s fuel distribution to add the figures as an effort to prevent the accumulation of ships at fishing ports,” secretary general of KKP, Antam Novambar, said during a hearing meeting (RDP) with Commission IV of the Indonesian House of Representatives here on Wednesday.

However, until now, there has been no certainty on the provision of additional subsidized fuel quota for fishermen, he added.

The KKP is also coordinating with the Presidential Staff Office (KSP) to obtain special prices for non-subsidized fuel for fishermen.

“We have coordinated to get fuel prices and increased quotas for fishermen,” Novambar informed.

The government, on its part, has continued to encourage the private sector and cooperatives to build gas stations for fishermen, he said.

The government has also continued to build an ownership system for fishing vessels to ensure faster and more targeted fuel distribution in simpler and easier stages, Novambar disclosed.

The KKP is committed to overseeing the revision of Presidential Regulation Number 191 of 2014 concerning the supply, distribution, and retail selling price of fuel, under which fishermen with fishing vessels of up to 30 GT are eligible for subsidized fuel, he said.

“This is our commitment. Fishermen with fishing vessels size above 30 GT are prohibited to buy subsidized fuel. It is very likely to be sold again,” Novambar emphasized.

In response to this, the chairman of Commission IV of DPR, Sudin, said that the commission has asked the KKP to play an active role in joint supervision with state-owned enterprises (SOEs) to improve fuel distribution channels for fishermen’s cooperatives. This is needed to deliver subsidized fuel on target with no price manipulation by several parties.

“Especially in the seven locations that will be pilot projects for the Solar Program for Fisher Cooperatives, such as Loknga (Aceh), Deli Serdang (North Sumatra), Indramayu (West Java), Pekalongan and Semarang (Central Java), Surabaya (East Java), and East Lombok (NTB),” he added.

The commission has also asked the KKP to recalculate the compensation assistance due to the increase in fuel prices and ensure that fishermen receive it, Sudin said. (INE)

Source: Antara News

The Maritime Affairs and Fisheries Ministry on Wednesday informed Commission IV of the House of Representatives (DPR) of its plan to use an additional budget of Rp663.23 billion (US$44 million) in 2023.

The budget will be used to push economic recovery programs in the marine and fisheries sector, it said.

According to a joint letter issued by the Finance Minister and the National Development Planning Minister, the budget ceiling for the Maritime Affairs and Fisheries Ministry in 2023 will be Rp6.76 trillion (US$452 million).

“The proposed plan for additional use of the Maritime Affairs and Fisheries Ministry budget in 2023, amounting to Rp663.23 billion, will be used to increase the allocation of government assistance to push for economic recovery,” secretary general of the ministry, Antam Novambar, said during a meeting with Commission IV here on Wednesday.

Moreover, the additional budget would be used to provide supporting facilities and infrastructure for increasing fishery and aquaculture production, he added.

The additional budget would also be used for the provision of a cold chain system to support food security, additional operational costs of resource supervisors, marine space management, human resources capacity building, strengthening quality testing facilities, and boosting internal control.

Furthermore, additional budgets have also been proposed to ensure the welfare of fishing communities, fish farmers, marketers, and other coastal communities.

“The Maritime Affairs and Fisheries Ministry is also committed to implementing government assistance programs in 2023, including development in eastern Indonesia in order to support the national fish barn,” Novambar added.

He explained that the government assistance program in 2023 would be worth Rp490 billion (US$32 million), an increase of 65.5 percent from the assistance provided in 2022, which stood at Rp296 billion (USD 19 million).

“If our proposal can be approved, then we are ready to sign our commitment for implementation in 2023,” he added.

Meanwhile, the chairman of Commission IV, Sudin, said that in the meeting, his administration would only listen to the ministry’s explanation. However, he also reminded it to ensure the quality of government assistance that would be distributed in 2023.

“Commission IV of the House of Representatives has asked the Maritime Affairs and Fisheries Ministry to ensure the quality and quality of all components of government assistance that will be distributed to the public, including the packaging of fishery products in 2023,” he added.

Source: Antara News

The threat of stagflation will continue to rear its head, Executive Director of Bank Indonesia’s (BI’s) Economic and Monetary Policy Department Solikin Juhro stated at the Sarasehan 100 Ekonom Indonesia event streamed online on Wednesday.

Stagflation came about as a result of continued high commodity prices that caused the inflation as well as benchmark interest rate to hike that potentially hinders economic growth.

This condition becomes a spectre that eventually gives rise to the pressure of stagflation, he remarked.

The threat of global stagflation will affect Indonesia through three channels: trade with weakening export, commodity with price hike, and finance that triggers a policy response from developed countries, Juhro remarked.

Nonetheless, Indonesians should be grateful that Indonesia is one of the countries with adequate resiliency, given that it can still grow 5.44 percent year-on-year (yoy) in the second quarter of 2022, he remarked.

From the external standpoint, Indonesia’s trade balance is also quite good, with well-managed exchange rate pressure as compared to other countries despite it having depreciated, he remarked.

However, he noted that the current domestic issue that the country is focused on is inflation from the supply side.

“This occurs especially amid the people’s mobility that starts to increase,” he remarked.

Hence, he deemed that Indonesia’s economic growth had continued to be maintained, given that it is not yet strong enough to handle various global uncertainties.

Meanwhile, monetary policies will be directed toward stability, whether through the benchmark interest rate policy, rupiah exchange rate stabilization, or liquidity restriction, he noted.

During the event, Juhro also said BI ensures that liquidity of the United States (US) dollar is safe.

Source: Antara News

Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, is optimistic that the food and beverage (F&B) industry can clock a growth of seven percent this year.

“We are very optimistic. We are trying to facilitate this goal,” Ardika stated in Jakarta on Wednesday.

This optimism was triggered by a rebound in tourism activities and the movement of the community, he added.

“For instance, tourism in Bali showed good progress, with high hotel occupancy, and moreover with the G20 event (being held). Hence, the food and beverage industry was deemed to be crucial. We have started to recover from the pandemic to become endemic. Hence, economic activities had started to move again,” he conveyed.

Ardika remarked that despite being affected by the COVID-19 pandemic, the F&B industry still showed resilience by growing 3.68 percent in the second quarter of 2022, a significant increase as compared to 2.95 percent during the same period in 2021.

During the same period, the F&B industry contributed 38.38 percent to the GDP of the non-oil and gas industry, thereby making it the sub-sector with the largest GDP contribution in Indonesia.

During the January-June 2022 period, exports of the F&B industry reached US$21.3 billion, an increase of nine percent as compared to US$19.5 billion during the same period in 2021, he explained.

On the other hand, the F&B industry was able to attract an investment worth Rp21.9 trillion until the second quarter of 2022 and absorb up to 1.1 million workers.

Meanwhile, General Chairperson of the Indonesian Food and Beverage Entrepreneurs Association (Gapmmi) Adhi S. Lukman stated that although the F&B industry continued to grow during and after the COVID-19 pandemic, the figures had not returned to normal.

“Usually the food and beverage industry grows seven to 10 percent. However, we are still happy that investment in this sector continues to grow,” Lukman stated.

In fact, the investment value entering the F&B sector can exceed the target set, he added.

Usually, the investment value in the F&B sector reaches Rp65 trillion in a year. However, this year, the investment value of the sector in the first semester reaches Rp42 trillion, Lukman stated.

“This growth needs support from all parties, especially from the raw material industry. The existence of additional food commodities is very important in the innovation and development of processed foods,” he stated.

Source: Antara News

The National Resilience Council (Wantannas) has said that Indonesia can become a global maritime axis on account of its strategic position in global trade.

“Some 60 percent of the global economy is through the sea, and (out of) which 40 percent crosses Indonesia. Hence, Indonesia must harness the benefits (from this potential) instead of merely being passed through,” Wantannas secretary general Vice Admiral Harjo Susmoro said during a public lecture at Andalas University here on Wednesday.

As the largest island country covering an area of 8.3 million square kilometers, with 6.4 million square kilometers of national maritime jurisdiction and 17,504 islands, Indonesia is worthy of global maritime axis status, he added.

Indonesia also has inland and territorial water bodies covering an area of 3.4 million square kilometers, exclusive economic zones spanning 3 million square kilometers, and a shoreline measuring 108 thousand kilometers, the secretary general added.

“Indonesia is located between the Pacific and Indian oceans,” Susmoro noted.

In terms of size, Indonesia’s area is roughly equal to continental Europe, which consists of 33 sovereign countries, he said.

“Continental Europe has 33 national leaders, while Indonesia, roughly with a size equal to Europe, is united under a single head of state,” Susmoro added.

He said that as the fourth most populated country, Indonesia has 278 million residents, out of whom 1.68 million are active in the maritime sector.

During the first National Meeting on Maritime in 1963, the nation’s founder Soekarno said that Indonesians must become an archipelagic nation, he observed.

“Soekarno stated that as our ancestors are seafarers, the Indonesian nation cannot become formidable if we are not controlling the sea and not becoming a maritime nation,” he added.

Soekarno’s remarks highlight the fact that the Indonesian seas must serve as a medium of national unity, national defense, and transportation, as well as a source of natural wealth, he said.

Source: Antara News