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Coordinating Minister for Economic Affairs Airlangga Hartarto has said that Indonesia and other large countries are looking for solutions to the multiple disruptions currently plaguing the health, economic, digitalization, and environmental sectors across the world.

A post-pandemic global recovery will be difficult to pursue should there still be gaps between countries in these sectors. Hence, Indonesia has chosen ‘Recover Together, Recover Stronger’ as the G20 theme.

Indonesia is trying to present real solutions, which could be replicated in other countries, so that through the three main agendas of the G20 Presidency, Indonesia can ensure the cooperation of large countries to produce concrete results, he noted in an official statement here on Tuesday.

The first main agenda is the reform of the global health architecture, which can be realized by synchronizing global health protocol standards as well as the establishment of a Joint Finance and Health Task Force to develop innovative and quick financing mechanisms to prevent and prepare in the event of infectious disease outbreaks in the future.

“We will promote the transfer of vaccine production technology so that vaccines are evenly distributed in all countries in the world. We have committed to fulfill the declaration of the Rome G20 Summit, (which was) to achieve a vaccination target of at least 70 percent of the world’s population by mid-2022,” the minister said.

The second agenda is digital-based economic transformation, which is being carried out, among other things, by developing more inclusive and productive digital literacy and skills, he added.

Digitalization has presented two sides of a coin, with one side being rapid growth and immense assistance in recovery and the other bringing up inequalities between countries.

UNESCO has reported that only 55 percent of households in the world are connected to the Internet and in low-income countries, the percentage is under 20 percent.

To address this situation, the G20 Indonesia Presidency has sought to encourage the improvement of digital infrastructure, which could help underdeveloped countries, through the use of low earth orbit satellites, as well as encouraging digital literacy and skills training, as done in Indonesia through the Pre-Employment Card program.

Hartarto said that the third agenda is to reach a global consensus on accelerated transition to cleaner and greener energy by expediting access to fair and affordable energy, both in terms of technology and financing.

The Indonesian Presidency will encourage funding for energy transition as well as emphasize the importance of the principle of common but differentiated responsibilities, in accordance with the United Nations framework.

Additionally, Indonesia will improve inclusivity while ensuring coherence in the agenda promoted by various G20 Working Groups and Engagement Groups, as stipulated by previous presidencies such as Seoul 2010 and Cannes 2011.

The contribution of youth and academics to global recovery efforts cannot be ruled out. Thus, through the Engagement Group Youth20, Think20, or Science20, with various participation platforms and activities, students will have a major role in determining policies and recovery benefits.

“My generation and those who work today will be replaced by the younger generation. Therefore, make the best use of this knowledge investment period, and the government’s task is to prepare for the next transition of generation to run as expected,” the minister added.

Source: Antara News

Head of the National Research and Innovation Agency Laksana Tri Handoko encourages new innovations for community empowerment and development of border areas.

“We all need recommendations to determine strategic measures in encouraging community empowerment in border areas, so that we can (better instill) national insight, (a sense of loving) Indonesia, institutionalization of local cultural values and local democracy, as well as creation of a balanced (sense of) nationalism and regionalism,” Handoko stated during the Webinar Prof Talks: Building Indonesia from Borders, hosted from here on Tuesday.

The agency head noted that Indonesia, as an archipelagic country, has 542 regions spanning from Sabang to Merauke. This posed serious issues of control due to the large geographical distance between the central government and districts or cities.

In terms of control, this issue of distance also occurred between the provincial capitals and remote areas, especially border areas, giving rise to the idea of regional expansion.

Another issue apart from control was public services, as in creating excellent public services in border areas with such remote locations and the risk of facing issues, such as limited human resources and infrastructure.

Handoko emphasized that breakthroughs and new integrated innovations were needed, so that they could guarantee optimal public services even in those areas.

Hence, the agency focused on reviewing recommendations and research on innovation to pursue better development in Indonesia, especially in border areas.

The National Research and Innovation Agency has a Research Organization for Governance, Economics, and Community Welfare; as well as a Research Organization for Social Sciences and Humanities, both of which could focus on conducting research related to border area development and local community empowerment.

Source: Antara News

The Finance Ministry informed that the posture of the 2022 State Budget is designed to encourage the revival of the national economy and support structural reforms.

“The 2022 state budget focuses on six main policies, ranging from controlling COVID-19 to budgeting reform,” Budget Executing Director of the Directorate General of Treasury at the Ministry of Finance, Tri Budhianto, stated during the 2022 budget implementation coordination meeting here, Tuesday.

The six main policies in the 2022 State Budget range from continuing COVID-19 handling, maintaining the sustainability of social protection programs and increasing superior human resources to continuing the development of technology infrastructure, improving the quality of fiscal decentralization, and continuing budgeting reforms.

Budhianto said that the government realized several challenges existed in implementing the 2022 State Budget.

“One of them is the risk of uncertainty from the pandemic due to the continued emergence of new variants of COVID-19 as well as from the uncertainty of the global economy,” he noted.

In addition, 2022 is the last year for the state budget deficit to be allowed to exceed three percent, he added.

“This is also a prerequisite for achieving fiscal consolidation in 2023. State revenues must continue to increase, better spending must be strengthened, and financing is expected to be innovative through prudent and sustainable debt management,” Budhianto remarked.

With these strategic considerations, the central and local governments must synergize through intensive and effective cooperation and communication.

“We hope it is able to produce a constructive economic policy mix in order to manifest equitable development for sustainable national and regional development towards a Golden Indonesia in 2045,” he remarked.

In addition, through the enactment of Law Number 1 of 2022 on Central and Regional Financial Relations, this has become an important momentum for the central and regional governments to improve the quality of institutional relations while simultaneously improving the governance of state finances.

Source: Antara News

The Directorate of Zakat and Waqf Empowerment at the Ministry of Religious Affairs has encouraged people to pay zakat, or Islamic alms, early in order to facilitate the zakat distribution to mustahiq, or zakat recipients.

“If people pay zakat on the 27th and 28th of Ramadan, the amil (zakat collector and manager) will only have a few days to distribute it,” Director of Zakat and Waqf Empowerment at the Ministry of Religious Affairs Tarmizi Tohor noted in a written statement received here on Tuesday.

Tohor urged Muslims to not only pay zakat but also to increase infaq (disbursements) and sedekah (simple alms).

He noted that economic impacts due to the COVID-19 pandemic were still being felt by the community until now.

The collection of zakat, infaq, and sedekah (ZIS) can be utilized as a form of economic recovery for people, who have been affected by the pandemic, especially the mustahiq, he emphasized.

“This is an opportunity for Muslims to help others in the month of blessings (Ramadan),” he pointed out.

On the other hand, he emphasized that the National Alms Agency (Baznas) and Zakat Management Institution (LAZ) not only provide cash in distributing zakat to mustahiq, but can also adjust it to the needs of the community.

“For instance, currently, cooking oil is scarce. It (the zakat) can be given in the form of food packages to mustahiq, so it is not just cash and rice,” he stated.

He also encouraged preachers to disseminate information on zakat during Ramadan.

According to Tohor, the achievement of zakat in Indonesia is still far from its potential due to the lack of information being disseminated by preachers. In fact, he said the command to pay zakat is often compared to the command to do prayer.

“This month of Ramadan must be used by preachers, so that speeches on zakat are intensified to the community, especially to those members, who can afford it,” he remarked.

Source: Antara News

A quota-based measurable fishing policy could potentially generate Rp12 trillion per year in non-tax state revenues (PNBP) if it runs optimally, Maritime Affairs and Fisheries Minister Sakti Wahyu Trenggono has projected.

“So, for example, if all 6 million tons (of fish) can be (caught), then the potential is around Rp12 trillion,” Minister Trenggono said after a meeting on ‘Supervision and Law Enforcement in the Maritime Affairs and Fisheries Sector’ here on Tuesday.

In 2022, non-tax state revenues in the fisheries sector may not be optimal since a legal basis for a quota-based measurable fishing policy still needs to be finalized and preparations made, he added.

The minister said that the non-tax revenue of the Maritime Affairs and Fisheries Ministry could be optimized in 2023 once the entire policy system is operational.

The minister prescribed limiting the capture of fish resources across Indonesia to 6 million tons per year out of the total 12 million tons available.

To illustrate the potential revenue generation, Trenggono said that if each kilogram of fish is worth Rp20 thousand and the non-tax revenue received by the ministry amounts to 10 percent, then the potential state revenue from fishing activities could reach Rp12 trillion a year.

In 2022, the volume of measurable fishing would not be more than 1 million tons, thus the maximum revenue potential for the state would be Rp2 trillion, Trenggono estimated.

This is because a legal basis for the measured fishing policy can only be completed at the end of April, and it will take three to four months to prepare the facilities and infrastructure.

He said that just capturing one million tons of fish alone would be extraordinary.

The ministry will implement a quota-based measurable fishing policy to encourage better capture fisheries management by balancing the economy and ecology. The policy will be imposed in 6 zones in 11 Fisheries Management Areas of the Republic of Indonesia.

All fishing ships operating in Indonesian waters will need to be registered and will be allowed to capture fish based on a predetermined contract. Each fish caught will be subject to non-tax revenue, except for the fishing quota for traditional fishermen, which will not be subject to PNBP.

The government will also offer a chance to foreign fishing vessels to invest by catching fish in Indonesian waters based on the set quotas and conditions.

Source: Antara News

Minister of Cooperatives and Micro, Small, and Medium Enterprises (MSMEs), Teten Masduki, has asked MSMEs producing superior regional products to use Sarinah Building in Jakarta as a promotional venue.

Sarinah is a place for MSMEs to showcase and develop their products, he remarked.

“MSMEs players need their own homes to be able to develop and sell their products. With Sarinah as a home for MSME players, they can develop their products with a strong narrative,” the minister said in a press statement on Tuesday.

Sarinah could become an example for local governments for utilizing old government-owned buildings in their respective areas by converting them into venues for selling quality MSME products, he added.

“We have a lot of old buildings in many areas. Do not sell them; it would not be appreciated,” he said.

Masduki also advised local governments to use aggregators to accommodate various products from various regions that can be displayed in Sarinah.

“I suggest that the region should have an aggregator, it could be a cooperative or a regional company that buys the products first. Later, the regional company will enter the national market by selling the products in Sarinah,” he explained.

The role of aggregators is considered important in small or micro production systems considering that MSME players face difficulties in producing and promoting products on their own.

Meanwhile, Sarinah’s managing director, Fetty Kwartati, said that the building has been improved on several scores, starting from a business concept that led to the space being converted into a community mall and the branding of Sarinah as a must-visit destination as well as a social and cultural space.

In the future, Sarinah will collaborate with regional offices to curate MSME products that can be displayed in the building.

“We have discussed the cooperation with heads of various regional governments, where each region can become an aggregator and curate their products to be displayed at Sarinah,” Kwartati informed.

The Sarinah Shopping Center in Central Jakarta resumed operations from March 21, 2022, with 95 percent of outlets showcasing MSME products.

Source: Antara News

The Financial Services Authority (OJK) launched the OJK Suptech Integrated Data Analytics, or OSIDA, in the hopes of it being a game-changer in banking supervision.

OSIDA uses integrated data analysis automation in detecting weaknesses of the bank business early on, OJK Banking Supervision Chief Executive Heru Kristiyana stated here on Tuesday.

“This is a banking supervision initiative to build the concept of implementing innovative supervision and being a game-changer outside of the usual things,” he stated.

Kristiyana explained that with OSIDA, the banking supervision system will focus on in-depth analysis and follow up on red flags.

The result of data analysis can allow the OJK to follow up on the results of supervision on a wider policy scale, he highlighted.

With OSIDA, data analytics automation that has been mainly descriptive now includes automation in the area of diagnosis, predictive, and prescriptive analytics that can be utilized for offsite surveillance needs and onsite checks, he pointed out.

Furthermore, OSIDA can detect early warning signals and compliance checks that are expected to examine anomalies from early indications of governance weaknesses in bank business activities, potential violations, data manipulation, and non-compliance with provisions, he elaborated.

OSIDA also helps supervisors to intervene and monitor actions early as anticipatory measures, Kristiyana noted.

“In the implementation of the initial stage, OSIDA’s analytical scenario is still in the scope of analysis per bank individually (separately) and industry-wide,” he remarked.

According to Kristiyana, in its development, data processing similar to OSIDA is expected to not only be involved in the banking industry data but also in the data of the Capital Market and Non-Bank Financial Industry to cross-analyze each sector to detect increased risk in one sector that can have an effect on another sector.

“The implementation of OSIDA is part of the development of supervisory technology, which is currently being intensively conducted by all financial services industry supervisory authorities around the world,” he concluded.

Source: Antara News

Vice President Ma’ruf Amin has said that young, hardworking entrepreneurs are one of the main drivers of the economy amid the COVID-19 pandemic.

He made the remark at the inauguration of the Indonesian Young Entrepreneurs Association (HIPMI) Sharia Conference 2022 at the Vice President’s Palace on Tuesday.

“We need at least three things to move the economy, namely controlling the pandemic, making accommodative policies, and hardworking entrepreneurs, such as HIPMI. We must synergize all three,” he said.

Regarding controlling the pandemic, Amin said the government has continued to expedite vaccinations as part of efforts to build herd immunity.

Touching on inclusive accommodative policies, he emphasized the importance of the Islamic economy and finance’s role in economic recovery.

“Sharia economics and finance must be prioritized in the national economy; it cannot escape the context of global challenges. We must use this huge potential such as population and demand as economic leverage, as well as a halal lifestyle that is increasingly popular in Indonesia and other parts of the world,” he said.

Indonesia has leading sectors of Islamic economy and finance such as agriculture, halal food and beverages, Muslim fashion, Muslim-friendly tourism, and Islamic finance, the Vice President noted.

All these sectors would help the Indonesian economy to survive amid the pandemic, he added.

Lastly, speaking of young entrepreneurs as the drivers of the economy, the Vice President noted the importance of understanding and foresight to take advantage of existing challenges and turn them into new opportunities.

“Also, the great potential of Islamic economics and finance, in the hands of all of you, will help the country’s economic development in the future,” he said.

Amin then invited young entrepreneurs, as members of HIPMI, to start building businesses in various leading sectors.

He said he is looking forward to HIPMI’s contribution in the future in encouraging economic progress and Islamic finance.

Source: Antara News