Indonesia News Gazette

Jakarta (ANTARA) – Jayapura District Head Mathius Awoitauw has said he believes that the National Sports Week (PON) XX 2021 to be held in Papua Province, will boost the growth of the local economy.

“I believe that PON will bring an adequate economic impact, not just in Jayapura, but also in other districts,” he remarked during an FMB9 Kominfo online discussion, monitored from here on Saturday.

According to Awoitauw, the provincial government has trained residents around the PON venue in making culinary products and handicrafts, which will be sold during the sports event.

In addition, three cruise ships have been prepared to reduce traffic on land during the sports event’s opening and closing ceremonies, he informed.

The local government has also prepared official drinks, produced by the local industry in Jayapura, not only for PON, but also for the National Paralympic Week (Peparnas), he added.

“Peparnas is ready to utilize the product, but for PON, we are currently negotiating with the committee so that the event will use local products,” Awoitauw informed.

He said his administration has also asked indigenous groups to welcome the PON.

In addition, the district head announced that the provincial government has recruited more than six thousand people to showcase regional cultural attractions during PON.

PON XX will be held in Papua from October 2 to October 13, 2021. Athletes from 34 provinces of Indonesia will compete in 37 sports disciplines at the event.

The venues for the competition are spread out across four regional clusters — Jayapura City, Jayapura District, Mimika District, and Merauke District.

One of the venues, the Lukas Enembe Stadium in Jayapura District, is one of Indonesia’s finest stadiums, he said.

The stadium can hold more than 40 thousand spectators and can be used for Olympics class sports events, he added.

Source: Antara News

Jakarta (ANTARA) – Convening of the 2021 PON National Games in Papua could drive the local economy if economic events take place in concert with the Games, Institute for Development of Economics and Finance (Indef) researcher Bhima stated.

“The continuation of construction projects (in Papua) is one example of a project that could be synchronised with the PON event,” Indef researcher Bhima noted here today.

Bhima particularised that proper supporting infrastructure, encompassing athletes lodging and reliable internet connection facilities, were required to hold the Games, thereby making the local construction sector crucial. The locals will also be offered new job opportunities in the construction sector.

Moreover, the Indef researcher noted that the local food and beverage industry offered business opportunities for entrepreneurs to promote local foods. He cited an example from the 2018 Asian Games hosted in Jakarta and Palembang when demand for Palembang’s local delicacy of fried fishcake pempek had spiked significantly.

“Papua also has other unique local delicacies, such as lontar milk pie cake, bagea sago cake, Manokwari’s roasted fish, and papeda sago congee. (Entrepreneurs) are required to only prepare an eye-catching packaging and engage in aggressive promotion at online marketplaces for market survival after the conclusion of the Games,” Bhima explained.

Apart from construction and food industries, Bhima also suggested local car renting companies to join the economy bandwagon during the Games, consequently kickstarting the recovery of local transportation businesses.

The Papuan government also expects economic development sparked by the PON National Games, scheduled in October 2021, to continue after the conclusion of the Games, particularly in the local micro, small, and medium enterprises (MSME) sector.

Papua Province Regional Secretariat Deputy for Economy and People’s Welfare Muhammad Musa’ad stated that the 2021 PON National Games should offer a momentum for entrepreneurs to develop their businesses.

“As in arranging an orchestra, we are striving to first create synergy and fusion from all business sectors (in Papua) for our economic development,” Musa’ad stated in Jayapura on Tuesday (July 13).

Source: Antara News

Saumlaki, Maluku (ANTARA) – PT. Astra International Tbk has selected six villages in the Tanimbar Islands District in Maluku Province as Astra Prosperous Villages (DSA) 2021 for entrepreneurship development in seaweed cultivation.

Tanimbar Islands district head Petrus Fatlolon signed a joint work agreement with the director-general of village economic development and investment, villages, Disadvantaged Regions and Transmigration Ministry, the Tanimbar Islands regional government, and PT. Astra on the 2021 DSA program on July 22, 2021, head of the Tanimbar Islands District’s Village Community Empowerment Service, Paulus Arnol Sabono, informed.

“This is part of the implementation of Astra’s CSR (corporate social responsibility) entrepreneurship program in the form of village community-based entrepreneurship development,” Sabono said in Saumlaki on Saturday.

The program aims to optimize the local potential, village’s superior products, and improve villagers’ welfare, he added.

The six villages where the program will be implemented are Lelengluan, Risol, Ritabel, Kelaan, and West Lemdesar in the North Tanimbar sub-district and Awear Rumngeur village in Wuarlabobar sub-district, he informed.

Astra has entrusted Ocean Fresh with providing assistance and training to the six target villages, he said.

The program will focus on strengthening village entrepreneurship institutions, namely village-owned businesses (BUMDes), and developing the village’s superior product, which is seaweed, he added.

“In addition, they will be given access to capital and seaweed marketing, as well as (guidance on) the development of the right innovations,” he said.

Sabono said he hoped the DSA program would benefit the people of Tanimbar.

Source: Antara News

Jakarta (ANTARA) – PT Bank Mandiri (Persero) Tbk has said it distributed Rp19.6 trillion in people’s business credit (KUR) to 200,339 debtors in the first six months of this year.

The credit distributed comprised small KUR of Rp16.01 trillion and micro KUR of Rp3.63 trillion, it added.

Of the distribution value, as much as 58.03 percent, equivalent to Rp11.42 trillion, was distributed in the production sector, which includes the sub-sectors of agriculture, fisheries, processing industry, production services, and their derivatives, according to the bank.

In a statement issued in Jakarta on Friday, Bank Mandiri SEVP, micro and consumer finance, Josephus Koernianto Triprakoso, said that for the remainder of the year, the bank will focus more on KUR distribution in the agriculture, plantation, livestock, and fisheries sectors.

“According to our monitoring, these sectors still have potential in KUR distribution because they support domestic food security. In addition, the prospects for these sectors are still good because they are not significantly affected by the COVID-19 pandemic,” Triprakoso added.

In addition, KUR to the production sector will continue to be increased considering that the sector is the basis of livelihood for most Indonesians, as well as one of the drivers of the national economy, he informed.

To support economic recovery in the MSME sector, Bank Mandiri has also carried out a restructuring program for KUR debtors affected by the COVID-19 pandemic in the form of delaying principal and interest payments, Triprakoso said.

“We hope that this effort can be a catalyst to help accelerate the recovery of the national economy, especially in the MSME sector,” he remarked.

The distribution of KUR was still well-mitigated during the COVID-19 pandemic, he noted. This is reflected in the quality of Bank Mandiri’s KUR portfolio, which is well-maintained, with total non-performing loans (NPL) at 0.45 percent as of June 30, 2021, he said. To accelerate the distribution of micro credit, including KUR, Bank Mandiri is also utilizing the Mandiri Smart application, he added. Through the digital microcredit platform, the bank expects to accelerate the customer credit process, he explained.

Bank Mandiri has also expanded financing product schemes in the production sector for certain commodities, especially in the agricultural sector, which adapt to the needs of the growing season and allow principal and interest to be paid at harvest, Triprakoso said.

Through this strategy, Bank Mandiri is optimistic that the space for KUR distribution in the second half of 2021 will remain open, he added.

“We are optimistic that we will be able to encourage the distribution of KUR through the existing potential, and can achieve the KUR target mandated by the government,” he remarked.

Source: Antara News

Jakarta (ANTARA) – Micro, small and medium enterprises (MSME) loan growth exceeded the total credit growth as of June 2021, in sharp contrast with June 2020, senior deputy governor of Bank Indonesia, Destry Damayanti, has revealed.

“The latest credit developments as of June, MSME loans continue to show positive signals. (As per) The latest data in the second quarter of 2021, MSME loan growth has exceeded total credit growth,” she said during an online discussion on the acceleration of MSME digitization, originating from Jakarta on Friday.

Based on data provided by Bank Indonesia, MSME loan growth stood at 0.13 percent in June, 2020, while total credit growth was pegged at 1.49 percent. Meanwhile, in June, 2021, MSME loan growth reached 2.35 percent, while total credit growth was recorded at 0.59 percent. In terms of segmentation, MSME credit growth was the highest in the medium and small segments, while micro credit growth continued to contract, Damayanti said.

New loans in the MSME sector, which has the largest share of credit, were recorded in the trade sector, both retail and large, especially the food and beverage trade sector, she added.

BI also noted an increase in new credit disbursement, which even exceeded credit repayments. As of June, 2021, new credit disbursement stood at Rp72.23 trillion, while loan repayments were pegged at Rp60.21 trillion, she informed. In addition, there was an improvement in the performance of MSMEs in 2021, Damayanti noted.

According to a survey conducted by the Mandiri Institute, as of April, 2021, around 84.8 percent of MSMEs were operating normally, 8.1 percent were operating on a limited basis, and 7.2 percent had halted operations, she said.

This number reflects an increase compared to 2020, when only 35.2 percent of MSMEs were operating normally, 34.5 percent were operating on a limited basis, and 30.4 percent had halted operations amid the pandemic, she added.

Although there was an improvement in the MSME sector, Damayanti reiterated that the key to economic recovery will be the handling of the COVID-19 pandemic in Indonesia.

“So, we are required to carry out health protocols in a disciplined manner, vaccination continues to be accelerated,” she remarked.

The decline in mobility due to the implementation of the public activity restrictions (PPKM) has had an impact on the performance of the MSME sector, she said.

Source: Antara News

Jakarta (ANTARA) – Economic liquidity, or the nation’s money supply, reached Rp7,119.6 trillion in June 2021, growing 11.4 percent (yoy), compared to 8.1 percent in May 2021.

“The increase was mainly driven by the acceleration of the components of the narrow money supply (M1) and quasi money,” said Erwin Haryono, Executive Director of the Communications Department of Bank Indonesia, in a statement released on Friday.

Erwin noted that the M1 component in June 2021 grew by 17 percent (yoy), higher than the growth in May 2021 of 12.6 percent. The growth was mainly due to an increase in the circulation of currency and rupiah demand deposits.

In June 2021, currency outside the monetary system was recorded at Rp739.1 trillion and grew by 13.4 percent (yoy) compared to the previous month of 8.6.

Likewise, quasi-money growth increased from 6.8 percent (yoy) in the previous month to 9.6 percent in June 2021.

Then rupiah demand deposits in June 2021 grew 19.3 percent (yoy), higher than the previous month’s 15.5 percent .

Nevertheless, the float of electronic money issued by banks grew 9.8 percent (yoy) lower than the previous month’s 31.4 percent.

Meanwhile, quasi-money in June 2021 amounted to Rp5187.6 trillion with a 72.9 percent share of M2, increasing from 6.8 percent (yoy) in May 2021 to 9.6 percent . The increase occurred in almost all quasi money instruments, both rupiah term deposits and foreign currency demand deposits.

“Based on the influencing factors, the increase in M2 in June 2021 was mainly influenced by growth in net foreign assets and an increase in lending,” Erwin said.

The increase was also recorded in the net foreign assets factor, which grew by 11.5 percent (yoy), an increase compared to the growth in May 2021 of 6.4 percent.

Then, credit disbursement recorded a positive growth of 0.4 percent (yoy), after recording negative growth since September 2020. On the other hand, net bills to the central government grew 33.9 percent (yoy), lower than the previous month’s growth of 61.4 percent .

Source: Antara News

Jakarta (ANTARA) – The government is preparing a regulation to prevent overseas micro, small, and medium enterprises (MSMEs) from selling their products in Indonesia via online marketplaces in a bid to protect domestic MSME players.

The Cooperatives and Small and Medium Enterprises (MSMEs) Ministry, Communication and Informatics Ministry, as well as the Trade Ministry have been tasked with drafting the regulation.

“This regulation aims to prevent more dumping cases of imported MSMEs products through marketplaces,” Cooperatives and MSMEs Minister, Teten Masduki, said during an online discussion on acceleration of MSME digitalization in Jakarta on Friday.

Currently, the government is digitalizing small local enterprises by connecting them to the digital ecosystem of virtual marketplaces to help them increase sales and develop their business, he noted. Hence, dumping of goods will threaten domestic businesses, he said. Just 13.5 million MSMEs, or 20 percent of small businesses, have joined the online market so far against the government’s target of digitizing 30 million MSMEs by 2024, he noted.

“It means we (the Cooperatives and MSMEs Ministry) have to drive another 5 million MSMEs to enter online commerce every year. We cannot fulfill this task alone,” the minister said.

He urged various stakeholders to collaborate closely to increase the number of MSMEs using digital commerce.

The government is focusing on improving the performance of small enterprises in Indonesia since they contribute significantly to Indonesia’s gross domestic product (GDP), Masduki said.

MSME recovery amid the COVID-19 pandemic is crucial as this sector absorbs 97 percent of the labor force, he pointed out.

During Bank Indonesia’s survey of 2,970 respondents, 88 percent of MSMEs actors had admitted that the pandemic had impacted their business.

Meanwhile, the remaining 12 percent had said they were able to survive due to the digital market, with as many as 27 percent of them reporting increased sales despite the pandemic.

Source: Antara News

Jakarta (ANTARA) – Children’s songs influence the growth and development of children, Education and Culture Minister Nadiem Anwar Makarim said at the Swara KILA 2021 media briefing, originating from Jakarta on Friday.

“Song is the language of teaching for children, which greatly influences their growth and development. Therefore, children’s songs should contain moral values, messages of love, and knowledge about Indonesian culture and nature,” he expounded.

However, in recent times, quality children’s songs have become more difficult to find, the minister said. This has become a challenge for parents and educators, he added.

For this reason, the Ministry of Education and Culture (Kemendikbud), in collaboration with KITA Indonesia, has organized the 2021 Kita Cinta Lagu Anak (KILA) contest, he said.

“The 2020 Kita Cinta Lagu Anak (KILA) contest proved that even during a pandemic, Indonesian children could still be creative by partaking in positive activities,” he added.

Quality work was produced during KILA 2020, and it will be followed up with recording and shooting of music videos, Makarim said.

He urged Indonesian children not to be discouraged from learning during the pandemic, adding one such avenue of learning is participation in KILA 2021.

“I invite all Indonesian children to participate in KILA 2021. KILA is an excellent learning and cultural event. Therefore, I also encourage schools and educators to socialize this event,” he said. The current COVID-19 pandemic has changed learning and play for children, Makarim noted.

KILA contest aims to embrace Indonesian children who have lost out on learning and play through children’s songs, he remarked.

Starting from the kindergarten to elementary age groups, KILA aims to encourage children to be active, creative, and make art cheerfully, he said.

Meanwhile, director general of culture of the Ministry of Education and Culture, Hilmar Farid, said children’s songs are a means of helping children become familiar with their identities, foster self-confidence, and have pride in their Indonesian roots.

“KILA is an effort from the Ministry of Education and Culture to restore childhood for children so they can develop naturally during the pandemic and to help children develop a sense of identity by knowing and singing Indonesian children’s songs,” he explained.

Chairman of KITA Indonesia, Dhenok Bientarno, said KILA 2021 will be held from July 23 to August 23, 2021.

The contest includes a children’s songwriting competition and a children’s song singing competition for the kindergarten and elementary age groups, he informed.

Participants at the singing competition will also be requested to sing new songs created by the 2020 KILA contestants, he said.

Source: Antara News