Indonesia News Gazette

Jakarta (ANTARA) – Indonesia will need US$4.7 trillion in financing to meet its sustainable development goals (SDGs) target by 2030, president of the Indonesia Business Council for Sustainable Development (IBCSD), Shinta Kamdani, has said.

“The figure is based on calculations made before the COVID-19 pandemic, so it will likely increase due to the pandemic,” she projected during an online discussion in Jakarta on Tuesday.

According to Kamdani, sustainable economic development is closely related to improvement in several aspects, including social, economic, and environmental.

Development in Indonesia still tends to focus on social and economic recovery, while in fact, the environmental aspect must be the main foundation that must be promoted to support the social and economic conditions, she said.

“A healthy environment will influence the quality of health, decent access to education, and many other things,” she explained.

Moreover, Indonesia’s health indicator achievement since 2019 is still one of the aspects that need special attention, she said.

Therefore, the aspect of building a healthy environment should draw attention from all stakeholders to achieve the target of sustainable development, she added.

Source: Antara News

Jakarta (ANTARA) – The growth rates of the sharia economy in 2020 and early 2021 have been better than those of the national economy, Bank Indonesia (BI) has said.

“In 2020, the growth of the sharia leading sector contracted by minus 1.72 percent, while the national growth, minus 2.07 percent,” deputy governor of Bank Indonesia, Doni Primanto Joewono, noted while joining FESyar 2021 KTI online from Jakarta on Tuesday (July 27, 2021).

Sharia economic and financial performance in the first quarter of 2021 has also shown improvement, he said.

BI recorded positive growth of 1 percent in the sharia economy and finance sector compared to the previous quarter, he informed. The climb was supported by the leading sectors of the sharia economy, which were agriculture, halal food, Muslim fashion, and Muslim-friendly tourism, he said.

“Therefore, we consistently carry out the blueprint of Indonesia’s sharia economic development, which has become the master plan (comprehensive planning) of Indonesia’s sharia economy,” Joewono said.

“The three blueprints of sharia economic development are halal industry, sharia finance, and sharia economic and financial literacy,” he said. According to BI, halal food, as the leading sector of Indonesia’s sharia economy, has the potential to grab a global market share of 13 percent. Indonesia’s halal food industry ranked 4th in the world in the Global Islamic Economic Indicator, Joewono noted.

“This is an opportunity for us. We need to diversify the sharia products’ purpose. It is possible to expand halal food exports, as in the first quarter of 2021, the export has reached US$10.34 billion,” he informed.

Joewono said that Bank Indonesia is also focusing on boosting regional quality resources to further aid national economic recovery.

In this regard, BI aims to produce high-quality Indonesian products, while supporting the improvement of Indonesia’s balance of payments (BOP) by pushing up exports and boosting inclusive growth, he informed.

The 2021 East Indonesia Sharia Economic Festival (FESyar 2021 KTI) is part of Bank Indonesia’s efforts to explore and develop each region’s potential to produce sharia products, Joewono said.

“The pandemic has tended to hinder global supply chain activity, but it has become an opportunity for Indonesia to revive local markets and national production activities,” he added.

Source: Antara News

Jakarta (ANTARA) – Ninety percent of social cash aid has been distributed to DKI Jakarta residents through Bank DKI Jakarta, Deputy Governor of DKI Jakarta, Ahmad Riza Patria, has said.

“The distribution of social cash aid has reached more than 90 percent. I reviewed (the progress) at several locations yesterday. Alhamdulillah (praise be to God), (the aid) has been distributed, which has been disbursed through Bank DKI ATMs,” he informed while reviewing vaccinations at the National University campus in Jakarta on Monday (July 26, 2021).

Patria said he was hopeful that the cash aid would ease the burden on those affected by the pandemic, especially in areas where level 4 public activity restrictions (PPKM) have been enforced.

In future, for all aid sourced from the regional budget (APBD), Bank DKI will be used as the main distributor agent, he added.

“It is also expected that in future, all cash aid from the Jakarta government’s regional budget, that is more than Rp1 million, can be disbursed through Bank DKI ATMs. It is good to avoid crowds,” he said. Cash aid provided by the Ministry of Social Affairs should no longer be distributed through Pos Indonesia Ltd, or the mailing service, but via bank transfers, he requested.

“Hopefully, in the future, the aid and support from Pos Indonesia Ltd and the social ministry can be attained through ATMs, so crowds can be avoided,” the deputy governor stated.

Social cash aid from the regional budget began to be distributed to 1,007,378 households from July 19, 2021, and about 837 thousand family heads have received the aid from the government budget (APBN), he informed.

Social Affairs Minister Tri Rismaharini (Risma) has also said she is optimistic the social aid, provided under the Family Hope Program (PKH), will boost the purchasing power of 33.6 million recipients amid public activity restrictions.

At least 33,674,865 people from 10 million households have been recorded as recipients of the aid, she noted.

The government has also distributed food aid, equivalent to Rp200 thousand (around US$13), to 18.8 million families and provided Rp200 thousand in social support funding to 10 million families each month, she said.

A budget of about Rp85.7 trillion (around US$5.8 billion) has been prepared by the government for the three social assistance programs, she added. (INE)

Source: Antara News

Jakarta (ANTARA) – Cooperatives and Small Medium Enterprises (SMEs) Minister Teten Masduki has said he is keen to see cooperatives and MSMEs become the drivers of national economic recovery.

“It is because the majority, or 99.9 percent, of our entrepreneurs are MSMEs that have contributed to the national GDP at 61 percent and the most outstanding is its employment reached 97 percent,” Masduki remarked here on Monday.

MSMEs need to cooperate with big business, he said. Based on a survey, 93 percent of MSMEs in Indonesia are not cooperating with big businesses, he noted.

Partnering with big business can offer MSMEs the opportunity to expand their market, increase production capacity, and improve the quality of promotions, according to Masduki.

“Our MSMEs are always unable to compete, either online or offline, due to our low production capacity and competitiveness. We are keen on preparing our MSMEs in a supply chain concept in the near future,” he said. MSMEs in China, South Korea, and Japan have produced technology products to meet the supply chain needs of national industries, he pointed out.

“This is important in order that our MSMEs do not continue to make chips, crackers, sweets, but start to produce industrial components (for) food industry, automotive industry, electronics, and so on. Thus, when the business is developing, its MSMEs will go up. What we need to prevent is the (incidence of) small businesses getting captured by big businesses,” Masduki said.

The Cooperatives and Small Medium Enterprises Ministry and the Business Competition Supervisory Commission (KPPU) earlier on Monday signed a memorandum of understanding (MoU) on the implementation of duties and authorities’ coordination in partnership supervisory.

KPPU chairman said that MSMEs have been shown to have a huge contribution to Indonesia’s economic growth, particularly in job generation, workforce absorption, GDP formation, as well as providing a safety net, especially for the middle and low income communities, to run productive economic activities.

Source: Antara News

Jakarta (ANTARA) – Trade Minister Muhammad Lutfi has called for the strengthening of cooperation between Indonesia and the Philippines in the field of digital trade, saying digital economic opportunities must be utilized for community welfare through fair trade.

Digital economic opportunities can provide benefits and advantages to various parties, especially amid the COVID-19 pandemic, he remarked.

“The digital economy is something that cannot be avoided. For this reason, every country must be able to take advantage of this opportunity and ensure an increase in people’s welfare,” the minister said at the ‘E-Commerce Seminar and Short Video Contest Awards 2021’, according to a statement released in Jakarta on Monday.

The virtual event was organized by the Manila Philippines trade attaché in collaboration with the Indonesian Diaspora Network, Manila chapter (IDN Manila).

The event, themed ‘Strengthening Indonesia-Philippines Relationship Through E-Commerce’, was attended by the Philippine Minister of Trade and Industry, Ramon Lopez, ad interim Charge d’Affaires of the Indonesian Embassy in Manila, Widya Rahmanto, vice president of Asian Development Bank, Bambang Susantono, and chairman of IDN Manila, Lusie Susantono. Speaking at the event, Minister Lutfi said that Indonesia’s gross domestic income is expected to triple from US$1.1 trillion to US$2.8 trillion by the end of 2030. In addition, the COVID-19 pandemic has brought benefits to the world of digital commerce, he noted.

“The digital economy will grow significantly from around US$40 billion to US$323 billion,” he said.

Meanwhile, Minister Lopez said that Indonesia has become a potential trading partner for the Philippines.

Cooperation between the two countries in the digital economy must be boosted, especially in increasing the facilitation of micro, small and medium enterprises (MSMEs), he added.

“Cooperation between the two countries, especially the digital economy, must be strengthened in post-pandemic economic recovery. So that it can create a better shared future for the people of both countries,” Lopez said. Meanwhile, head of IDN Manila, Lusie Susantono, said the pandemic has had a major impact on digital growth in all walks of life.

Nowadays, it is commonplace to shop online, transact digitally, or do activities virtually, she pointed out.

“This is reflected in the holding of this seminar, which is expected to provide benefits for preparation in dealing with the changes in digital trading activities,” she remarked.

Source: Antara News

Jakarta (ANTARA) – Minister of Tourism and Creative Economy Sandiaga Salahuddin Uno has urged students to become agents of revival in Indonesia’s creative economy sector to help recover the national economy.

“Invite your friends to actively participate in economic recovery. Let’s improve ourselves and hone our skills because COVID-19 has forced us to improve our skills through upskilling and reskilling,” the minister said during a webinar at a Bangka Belitung village on Saturday.

His request has come amid a downward trend in the tourism and creative economy.

Uno said Indonesia’s tourism and creative economy has experienced a decline of up to 85 percent in foreign exchange revenue, with more than 500 thousand workers in the tourism industry as well as 400 thousand workers in the creative economy industry losing their jobs due to the COVID-19.

Thus, students must actively work to bring the nation’s economy into a better state, he added.

“We should not only survive, but also keep looking for opportunities and become a winner. We need to adjust ourselves to create new opportunities,” the minister remarked.

The former deputy governor of Jakarta said he hoped that, in this difficult time, students can develop creative products and provide hope to one another to get through the COVID-19 pandemic as winners.

The development of creative products will lead to the generation of new ideas, which can be implemented to expand business reach and improve the condition of Indonesia’s economy, Uno said.

He said he expects the development of creative products to further improve citizens’ ability to survive, innovate, adapt, and collaborate.

“I believe that a creative and collaborative spirit will bring a positive impact toward the potential of the millennial generation,” he added.

Source: Antara News

Jakarta (ANTARA) – The Ministry of Finance has decided to allow tobacco factory owners to delay paying taxes by a maximum of 90 days, as part of non-fiscal stimulus measures.

The decision has been made in response to a request by the Association of Tobacco Manufacturers seeking relaxations on tax payments, it said.

“This is to maintain the business sustainability and cash flow of the tobacco industry,” the ministry explained in a statement released here on Saturday.

The policy has been stipulated in the Regulation of the Minister of Finance (PMK), Number 93/PMK.04/2021, concerning the Second Amendment to the Regulation of the Minister of Finance, Number 57/PMK.04/2017, it informed.

Under the regulation, businesses will be allowed to defer payments under different tax bands by up to 90 days from the due date prescribed by the current regulation, which was July 12, 2021. Therefore, delayed payments under different tax bands can be made until October 31, 2021.

To avail the 90-day relaxation, factory operators will need to submit a decision letter (SKEP) seeking an extension on tax payment and update the proof of guarantee approval (BPJ), according to the ministry.

The head of the Customs office or the head of the Customs territory office will take decisions on granting the extension, the ministry said.

“The decision will be based on factory entrepreneurs’ applications, who will also need to submit a guarantee to Customs for the 90-day delay,” it added.

The government had granted similar relaxations through the Regulation of the Minister of Finance Number 30/PMK.04/2020 concerning Amendments to Regulation of the Minister of Finance Number 57/PMK.04/2017, it pointed out.

The latest relaxation will be handled by Customs by upholding the principle of circumspection considering the total value of the delayed payments is Rp71 trillion, or 97 percent of CK-1, according to the ministry.

The value has been calculated based on delayed tax payments on 120 tobacco product factories, or 11 percent of tobacco products factories, between January 1 to May 31, 2021, it said.

Source: Antara News

Jakarta (ANTARA) – The Foreign Ministry, in collaboration with the Aceh government and the Marine Affairs and Fisheries Ministry (KKP), on Friday repatriated an Indonesian fisherman who was stranded in Thailand waters before being rescued by Thai authorities last week.

“Alhamdulillah (thank God), thanks to the cooperation of related parties, especially the Foreign Ministry and the Aceh regional government, we could repatriate our fisherman from Thailand,” Antam Novambar, acting director general of marine resources and fisheries monitoring at the KKP, said in a press release here on Saturday.

The fisherman arrived in Jakarta on Friday (July 23, 2021) and was handed over to the Aceh government’s Liaison Office, he informed.

Before being sent home, the fisherman was quarantined at Wisma Atlet, Jakarta, he added.

“Currently, he has been handed over to the local government for the repatriation process,” he said.

Teuku Elvitrasyah, Director of violation handling at the Marine Affairs and Fisheries Ministry, said the fisherman was stranded in the waters off South Racha, Phuket Island, and was found by Thai officials on June 13, 2021.

The Acehnese fisherman got stranded after his boat’s engine broke down, he informed.

“Initially, the fisherman went to sea alone using a boat with an outboard motor, then accidentally, the engine piston was released in the middle of the sea. For that reason, the boat then floated for eight days and eight nights and was carried by currents into Thai waters,” he said.

This year, the KKP, Foreign Ministry, and local governments have repatriated 78 fishermen who either experienced legal problems or got stranded at sea. The 78 fishermen are in addition to the 28 repatriated from India, 48 repatriated from Malaysia, one repatriated from Myanmar, and one repatriated from Thailand, he added.

Source: Antara News