Category: Trading

Indonesia’s Ministry of Transportation, temporarily closed all cargo services of exported coal, following the government’s decision to ban Jan’s exports of the commodity, due to concerns over low supplies for domestic power plants.

“No coal export cargo services are allowed from the period of Jan 1 to Jan 31, 2022,” said Arif Toha, the ministry’s acting director-general for sea transportation, yesterday.

The temporary closure was addressed to all national marine transportation companies and national ship agencies for compliance.

Following the regulation, all harbour offices, Main Port Authority offices, Special Port Authority offices, as well as, Port Management Unit offices in the country, are not allowed to issue any sailing approval letter to all coal exporters.

Indonesia prohibited coal exports for the Jan period, after projecting that, low coal supplies for domestic power plants could lead to widespread blackouts. The ban was announced on Friday, by the country’s Ministry of Energy and Mineral Resources.

The ban was imposed after coal miners failed to meet the so-called Domestic Market Obligation, published in 2018, under which they are obliged to supply at least 25 percent of a mine’s approved production plan at a maximum sales price of 70 U.S. dollars per metric tonne, or below the global benchmark price.

The country is currently the world’s biggest exporter of coal for electricity generation.

According to the Handbook of Energy and Economic Statistics of Indonesia 2020, it exported around 400 million tonnes of thermal coal in 2020, and its biggest customers were China, India, Japan and South Korea.

Source: NAM NEWS NETWORK

President Joko Widodo has directed Trade Minister Muhammad Lutfi and ministry officials to maintain domestic cooking oil price stability following the recent commodity price hike.

“Since the crude palm oil price in the export market is currently high, I instruct the trade minister to ensure domestic cooking oil price stability,” the President said in a recorded remark, uploaded on the Presidential Secretariat’s YouTube channel on Monday.

As the government must prioritize people’s livelihood, the ministry must conceive several measures to ensure cooking oil prices remain affordable, he added.

The President also advised the minister to conduct market interventions, if necessary, to maintain price affordability.

“I need to remind you that the government has obliged private companies, state-owned enterprises, and subsidiary companies in the mining, agriculture, and natural resources industries to prioritize domestic demand before exporting their products,” Widodo remarked.

He highlighted that the directive is consistent with Article 33 of the 1945 Constitution that promulgates that the natural resources of the nation controlled by the state be harnessed for the benefit of the people.

As per the latest cooking oil price data recorded by the national Strategic Food Price Information Centre, the price of two branded cooking oil products currently stand at Rp20,200 (US$1.41) and Rp20,400 (US$1.42) per liter, and bulk cooking oil is selling for Rp18,500 (US$1.29) per liter.

The recent cooking oil price increase in the country can be attributed to the high global crude palm oil price, which is currently pegged at US$1,305 per liter, a 27.17-percent hike compared to early 2021, Widodo said.

A decrease in palm oil supply from major supplying countries, such as Malaysia, amidst an uptick in global crude palm oil demand, particularly increasing demand from the bio-diesel industry, has caused the price hike, he explained.

Logistics disruptions due to shortage of available export containers and shipping vessels amid the COVID-19 pandemic have also played a role in the recent crude palm oil price increase, he added.

Source: Antara News

Minister of Tourism and Creative Economy Sandiaga Uno said the enthusiasm of holidaymakers during the Christmas and New Year holiday period has helped support national economic and tourism recovery.

Residents’ confidence to travel returned in 2021 as the COVID-19 pandemic in Indonesia was brought under control and vaccinations continued attracting massive public turnout nationwide, he said.

“In spite of our positive records, we must remain vigilant to the COVID-19 Omicron variant,” Uno cautioned at a press briefing in Jakarta on Monday.

He expressed confidence that the improving pandemic situation would translate into better tourism performance in 2021-end compared with 2020.

The minister pointed out the Ancol Dreamland tourism park in North Jakarta recorded 18 thousand visitors on Christmas (December 25, 2021) and 9 thousand visitors on the New Year holiday (January 1, 2022).

Meanwhile, the Beautiful Indonesia Miniature Park in East Jakarta recorded 14 thousand and 16,137 visitors on two consecutive Sundays (December 26, 2021, and January 1, 2022), and Ragunan Zoo in South Jakarta recorded 17,866 and 16,909 visitors last weekend (January 1–2, 2022), he added.

“We also have the same situation on Bali Island. Despite foreign tourists being minimum, domestic tourists have begun to throng Bali again,” Uno noted.

Moreover, state-owned airport operator Angkasa Pura I reported that 11,271 passengers were flown in 81 flights during the New Year holiday, and the company expects up to 15 thousand passengers to depart from Bali Island by the end of the holiday period, he said.

The Indonesia Hotels and Restaurants Association (PHRI) also reported an increase in occupancy rates during New Year’s Eve, though the increase was not uniform nationwide, the minister informed.

An official from PHRI’s Bali branch informed that the average occupancy rate in Bali hotels during the 2021 Christmas period was 55 percent, he said.

The minister further said he is optimistic that the year-end occupancy rate will increase by 5–10 percent though the industry recorded only an average of 40–50 percent occupancy rate in December, 2021.

“Domestic tourists have contributed around 95 percent to the recorded occupancy rate,” Uno said.

Source: Antara News

Public Works and Public Housing (PUPR) Minister Basuki Hadimuljono is committed to building three Drinking Water Supply Systems (SPAMs) to prevent Jakarta from sinking due to the excessive use of ground water by the community.

The SPAMs comprise the Jatiluhur I SPAM and Karian-Serpong SPAM for which construction had commenced as well as the Ir. H. Djuanda/Jatiluhur II SPAM that is still in the preparation stage.

The minister noted in a written statement here on Monday that the development of SPAMs will use the public-private partnership scheme.

“The establishment of three SPAMs is expected to increase the drinking water supply capacity of Jakarta by 9,254 liters per second as well as service coverage by 30 percent,” he stated.

Hadimuljono emphasized that providing drinking water to all people is an obligation to meet the basic needs of the community and one of the solutions to prevent Jakarta from sinking.

The ministry will also provide downstream supporting infrastructure to the Jakarta provincial government to absorb the raw drinking water amid the first year of construction of the Jatiluhur I SPAM, Karian-Serpong SPAM Projects, and Buaran III Water Treatment Plant.

Hence, the ministry expects the Jakarta provincial government to immediately prepare the readiness criteria required to gain the supporting infrastructure to enable the SPAMs to be completed soon to fulfil the region’s drinking water demand immediately.

The central and provincial governments are committed to realizing the construction of SPAMs to reduce ground water extraction to prevent the region from sinking further.

Hence, the PUPR minister along with Home Affairs Minister Muhammad Tito Karnavian and Governor of Jakarta Anies Rasyid Baswedan had signed a MoU on “Synergy and Support for the Implementation of a Drinking Water Supply System in Jakarta” here on Monday.

It was witnessed by Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan.

Source: Antara News

Indonesian President Joko Widodo (Jokowi) signed a presidential regulation on accelerating infrastructure development to support implementation of the 2022 G20 Presidency, 2023 ASEAN Summit, and various international events at the Mandalika Special Economic Zone.

As quoted from Presidential Regulation Number 116 of 2021 posted on the website of the State Secretariat’s Legal Information and Documentation System here on Monday, the task has been assigned to the public works and public housing (PUPR) minister.

The president has pushed to expedite the construction or renovation of various supporting infrastructure and facilities of international events that will be conducted in the provinces of Jakarta, Bali, West Nusa Tenggara (NTB), and East Nusa Tenggara (NTT).

“It is necessary to accelerate the development or renovation of infrastructure and facilities at the venue of international events,” according to the regulation, which was signed and promulgated on December 31, 2021.

Article 1 of paragraph 2 of the regulation stipulates that construction or renovation are being conducted at Taman Mini Indonesia Indah in Jakarta, Mandalika area in NTB Province, 2022 G20 Summit venues in Bali Province, as well as 2023 ASEAN Summit venues in Tana Mori, Labuan Bajo Village in NTT Province.

Meanwhile, article 2 of the regulation stated that in conducting the assignment, the PUPR minister can apply direct appointment for the procurement of government goods and services in accordance with the laws.

Jokowi has also emphasized that the PUPR Ministry must always be heedful of the five working principles of prudence, transparency, efficiency, effectiveness, and accountability.

“Funding required for implementation of the assignment will be sourced from the state budget (APBN),” according to article 6 of the regulation.

Apart from the 2022 G20 Presidency and 2023 ASEAN Summit, the government is also preparing for the MotoGP and World Superbike events planned to be conducted on March 18-20, 2022, and November 11-13, 2022, respectively.

Source: Antara News

The Indonesian government’s decision to ban coal exports due to the declining domestic supply of the mineral will ensure the reliability of electricity supply, state-owned electricity provider PT PLN (Persero) has said.

PLN’s executive vice president for corporate communications, Agung Murdifi, said that the government’s full support will ensure the fulfillment of coal supply for power plants to maintain national electricity reliability and protect national interests.

“It is in accordance with the mandate of Article 33 of the 1945 Constitution as well as related laws and regulations, which state that national resources must be used as much as possible for the prosperity of the people, including for PLN’s operations,” he remarked in a statement released on Saturday.

The Energy and Mineral Resources Ministry has emphasized that coal demand for all PLN power plants is a matter of national interest and its fulfillment must be prioritized by all mining business license holders, he noted.

“The potential of power outages for 10 million PLN customers can be avoided thanks to the (government) support,” Murdifi stated.

PLN is ready to ensure the availability, reliability, and affordability of electricity for all Indonesian people by optimizing its operational sector and getting coal supply reserves for at least 20 operating days, he added.

To ensure service during the 2022 New Year holiday, the company has deployed 48,179 officers, ranging from the operational sector to customer services, he informed.

The enterprise will work efficiently to implement the policy in a short time by mobilizing all available resources as well as coordinating with the ministry and other stakeholders related to the coal supply chain, he added.

Earlier in the day, the director general of mineral and coal at the Energy and Mineral Resources Ministry, Ridwan Jamaludin, announced that the government has temporarily banned coal exports from January 1 to January 31, 2022, to ensure the availability of coal stocks for domestic power plants.

Source: Antara News

The Bali provincial government will build a telecommunication infrastructure, the Turyapada Tower KBS 6.0 Kerthi Bali, this year in Pegayaman Village, Buleleng District.

“Turyapada Tower has the main function to optimize digital television broadcasts,” Bali Governor Wayan Koster said in a written statement in Denpasar on Sunday.

Turyapada Tower which will be 115 m high is planned to be built in Pegayaman Village of Buleleng District at an altitude of 1,521 m above sea level. Thus, in total, Turyapada Tower will be 1,636 m high.

Earlier, when delivering the year-end speech Koster pointed out that the tower’s coverage will reach 80 percent of the districts of Buleleng, Jembrana, and Karangasem.

He explained, the tower is multifunctional and integrated into a tourism area which will be a new economic development center in the northern Bali area.

“This is in order to balance the centers of economic growth in the north, south, east, and west Bali region,” the governor added.

Furthermore, in accelerating the priority program implementation in Bali Province, especially in indigenous or customary villages, the Bali administration has launched the program of Kerthi Bali Welfare Village Team.

“The success of this program largely hinges on the active support of village officials and customary leaders as well as their teams,” he stated.

In realizing the program, the Bali provincial government imposed a new policy such as granting incentives of Rp1.5 million for village officials and Rp1 million for indigenous or customary leaders per month.

Koster added, a huge challenge emerging from the COVID-19 pandemic awaits in 2022, especially in the sectors of tourism and economy.

“This condition certainly requires mental readiness and a strong commitment based on the Balinese people’s sincerity,” he said.

Source: Antara News

Tourism and Creative Economy Minister Sandiaga Salahuddin Uno has called for the implementation of a series of pre-events involving micro, small, and medium enterprises (MSMEs) ahead of the 2022 Jakarta Formula E race.

“Similar to the implementation of the 2018 Jakarta-Palembang Asian Games, we should not just prepare the main event, but also pre-events through an electrical motor show involving MSMEs,” he said while visiting Taman Impian Jaya Ancol, here on Saturday.

Ancol was designated as the venue for the electric car racing event scheduled on June 4, 2022, after an assessment by Formula E Operations (FEO) representing the Fédération Internationale de l’Automobile (FIA), he noted.

The area was chosen since it is one of the iconic sites in Jakarta and the location of the circuit will not disturb public activities and traffic flow, he explained.

As an automotive sports and tourism event, the race must highlight Indonesia’s tourism potential, the minister said.

He further said he believed that holding pre-events before the race, in collaboration with the Indonesian Motor Association (IMI), would help drive economic activity and create many jobs.

Several activities taking place in 2022 can help recover the national economy and tourism sector, in accordance with the Tourism and Creative Economy Ministry’s agenda: The Year of Awakening, he added.

“2022 will be a year of revival. We must unite to move fast and move together,” he remarked.

Meanwhile, urban planning and environmental observer Nirwono Joga said that the establishment of a Formula E circuit can be a pilot project for low-pollution areas.

The racing event can serve as a campaign for the use of electric vehicles to reduce carbon emission levels in Jakarta, he added.

Source: Antara News