Japanese investor to build ship repair facility in Indonesia

Jakarta (ANTARA News) - A Japanese shipbuilding company, Tsuneishi Ship Building, plans to invest US$40 million in a ship repair project in Indonesia, chief of the Capital Investment Coordinating Board (BKPM) Franky Sibarani said.

Tsuneishi made the commitment at a meeting in Fukuyama with Franky Sibarani when the latter visited Japan last Monday.

"At the meeting , the management of Tsuneishi pledged to invest US$40 million in the first phase. The investment would likely be increased with expansion," he was quoted as saying in a statement. 

He said the Japanese company has long indicated interest in expanding operation to Indonesia.

He said he has invited the company leaders to visit Indonesia to determine the location for their project. 

BKPM representative office in Tokyo will facilitate the company in the process of licensing. 

"At least there are five potential locations to be recommended - Lampung, Lamongan, Surabaya, Makassar and Manado. Lampung and Lamongan have been developed as center for integrated shipbuilding industry. 

Chairman & President of Tsuneishi Holding Yasuharu Fushimi said his company plans the investment in two phases. 

The first phase the company would build ship repair facility and in the second phase the company would build shipbuilding facility, Yasuharu said. 

"We see a big potentials for ship building industry in Indonesia. There are around 3,293 ships that will make a potential market for ship repair service in Indonesia a year," he was quoted as saying. 

Tsuneishi Ship Building is the 7th largest ship building industry in Japan . It has shipyards in Cebu in the Philippines , in Zoushan, China, and in Paraguay.

Iman Gazzaarif Iskandar (1801400890)

Pertamina to set up special task force for Ramadhan

Jakarta (ANTARA News) - State oil and gas firm PT Pertamina will set up a special taskforce to ensure fuel oil and liquefied petroleum gas (LPG) supply during the fasting month of Ramadhan and Idul Fitri festivities.

"The fuel oil taskforce will cooperate with the Energy and Mineral Resources Ministry as a regulator, BPH Migas (the Downstream Oil and Gas Regulatory Agency) and Hiswana Migas (the Association of Fuel Station Owners)," Vice President for Corporate Communication of Pertamina Wianda A. Pusponegoro said here.

The taskforce will work 14 days before and seven days after the Idul Fitri festivities and will then go on standby to meet demand for fuel oils, she added.

Pusponegoro further noted that the taskforce will focus on highways in Java and Sumatra that holidaymakers will pass through.

"In Java, we identified several locations, including the Kanci toll road, which we believe will be crowded with holidaymakers," she pointed out.

Moreover, to distribute fuel oils to several gas stations, Pertamina will cooperate with the police to regulate traffic in case of congestion, he affirmed.

She also predicted that demand for non-subsidized gasoline such as Premium, Pertamax and Pertamax Plus will increase ahead of the festivities. 

"We know that ahead of the festivities, most industries do not operate, and consequently, diesel oil consumption declines. So we will focus on supplying Premium, Pertamax, Pertamax Plus, and LPG," she emphasized.

Iman Gazzaarif Iskandar (1801400890)

Bali`s exports to Spain increased 38.93%

Denpasar (ANTARA News) - The exports of unique Balinese crafts and antiques to Spain increased by 38.93 percent, from US$5.4 million recorded in January-April 2014 to US$7.4 million in the same period in 2015.

"Spain imports various woven products in the form of sandals, cloth bags, non-knitted items, confectionery, and furniture," Balinese entrepreneur Made Parwata stated here on Thursday. 

According to Parwata, Balis growth in foreign trade, particularly with Spain, seems positive, especially after the government increased the frequency of flights to European countries.

He remarked that Spanish consumers are consistent in buying various Balinese art products.

Spanish importers always order items via email every month.

In addition to Spain, the Netherlands, Greece, England, France, and the United States are the top ten buyers of Balinese handicrafts.

According to records provided by the Central Statistics Agency (BPS) of Bali, Spain ranks seventh in the list of largest buyers of Balinese non-oil products in early 2015, after the United States, which is the biggest consumer, with exports amounting to US$38.8 million followed by Japan at US$16.5 million, Singapore US$14 million, and Australia US$13.3 million.

The increasing number of foreign tourists travelling to Bali is expected to significantly affect foreign trading, especially the sale of souvenirs and agricultural products, including Balinese coffee.

Iman Gazzaarif Iskandar (1801400890)

President Jokowi hopes Indonesia to become shariah financial center

Jakarta (ANTARA News) - President Joko Widodo (Jokowi) has expressed hope that Indonesia will become a shariah financial center in view of the countrys huge potentials. 

"I hail the launch of the campaign. We indeed need to pay attention to the shariah financial service sector. It has grown fast but the growth is not yet maximal with regard to the existing potentials," he said at the launching of "I Love Shariah Finance" campaign initiated by the Financial Service Authority (OJK) here on Sunday.

The President said if the huge potential is developed it is not impossible the country will become the development center of shariah finance.

"Our country is a country with the worlds biggest micro-finance, the only country that issues a retail shariah bond and if it develops later it could make the country become an international shariah financial center. The key to achieving it is improving public knowledge sustainably," he said.

OJK chairman Muliaman D Hadad said that although the shariah finance has grown fast it is still relatively small compared to other national financial services.

He said 12 shariah general banks with 22 shariah units in the country are owned by conventional banks and 163 shariah BPRs (local banks) with total assets worth Rp264.81 trillion and a market share of 4.88 percent.

The number of players in the non-shariah financial industry totals 98 outside LKM (community financial institute) consisting of shariah insurance with a total asset of Rp23.80 trillion, shariah financing business with a total asset of Rp19.63 trillion and other shariah financial institutions with a total asset of Rp12.86 trillion.

In all the shariah non-bank financial industry market has reached 3.93 percent compared to the total assets of general non-bank financial industry.

The shariah capital market has been developed in the framework of accommodating the needs of the people in Indonesia to invest in capital market products in line with the shariah basic principles.

Until March 2015 total shariah shares traded at the shariah capital market reached Rp3,037.46 trillion with corporate bonds reached Rp7.1 trillion and shariah mutual funds Rp11.7 trillion.

Iman Gazzaarif Iskandar (1801400890)

Indonesia Labor Ministry appreciates Newmont`s agreement with workers

Mataram (ANTARA News) - The labor ministry said it appreciates a cooperation agreement (PKB) reached between PT Newmont Nusa Tenggara (NNT) with its unit of labor union.

The ministry noted there are changes in the new agreement which are considered mutually beneficial to both sides.

The changes are expected to benefit both the workers and the company better than expected from the previous agreement two years,director general for development of industrial relations R Irianto Simbolon said here.

Irianto said a cooperation agreement is an industrial relation , therefore, all companies are expected to have such agreement.

It is not a regulation of the company based only the policy of the company, he said.

"We encourage all companies to have PKB which sets working conditions and rights and obligations of the workers and the employers," he said.

He said the PKB signed by PT NNT and its workers is expected to improve the welfare of the workers and performance of the company in two years in line with the agreement.

"If in two years there is no change, the six month process of negotiations on the PKB failed and should be reevaluated," he said.

He said PKB negotiations should not take too long time as it would be inefficient.

"Negotiations should be wrapped up in a month , even in a week," he said.

NNT human resources manager Dadang Prihadi said the main point in the PKB is a hike in the salaries of the workers, but the increase would be by phases in two years of the PKB implementation.

In 2015, pay hike is three percent and four percewnt in the following year, Dadang said.

"The pay hike is effective as from January, 2015," he said.

NNT, an Indonesian unit of the U.S. mining giant Newmont Mining Corp., has a large copper and gold mine in Sumbawa, East Nusa Tenggara. 

Iman Gazzaarif Iskandar (1801400890)

Senin 15 Juni 2015

Indonesia's trade surplus increases in May

JAKARTA: Indonesia's trade surplus grew to $950 million in May, official data showed Monday, as imports slid sharply in Southeast Asia's largest economy.

It was the sixth straight month that Indonesia has recorded a trade surplus and the figure was about double that forecast by economists. It compared to a $450 million excess in April.

The widening surplus was driven by a sharp fall in imports to $11.61 billion, down 21.4 percent from a year earlier, a sign of slowing consumer demand as the G20 economy cools.

Exports fell less steeply, but were still down 15.2 percent year-on-year at $12.56 billion, according to the data from the official statistics agency.

Despite the downbeat figures, policymakers were expected to welcome the growing surplus as they battle to narrow a stubborn current-account deficit.

Indonesia's economy has been slowing in recent times as the price of its key commodity exports slips and demand falls in China, the world's number two economy.

Growth slipped to 4.7 percent year-on-year in the first quarter, its slowest pace in around six years, and well below the government's target of 5.7 percent for this year.

Iman Gazzaarif Iskandar (1801400890)

Global Economics Institutions

GEIs exist within a changing global environment and one measure of their success is their ability to adapt to change. In some respects the IMF (International Monetary Fund) has responded creatively to the challenges posed by a changing international financial order, but in other respects it has failed either to provide appropriate regulatory oversight or develop polices suitable for its membership. Initially the IMF was essentially a short term lending (12-24 month loans) institution providing loans through its stand-by arrangements. Although the IMF has clearly responded to changing global financial system. Like its twinned institution, the World Bank has show a degree of flexibility and adaptability to a changing international economic order. The world Bank has also adapted its approach to development over time. Since its early years the bank has had four identifiable shifts in its approach to the financing of economic development. Nevertheless, the World Bank remains a deeply controversial institutions. Supporters of the Bank contend that its provides developing countries with much-needed capital, and maintain that the projects it supports are vital in the fights against world poverty.  And  the World Trade Organization’s (WTO) contribution to global governance has varied depending on the view taken of organization’s ability to affects countries’ trade policies and analysis of the beneficial effects of trade liberalization. The WTO provides a framework for the organization of international trade. First, as an international organization the WTO is primarily a legal agreement which provides a framework of rules, norms, and principles to govern the multilateral trading system. Second, it is a forum for multilateral trade  negotiations. Third, the WTO through its Dispute Settlement Understanding (DSU) facilitates dispute resolution. The WTO committed to the promotion of a liberal trading order. Its policies are predicated on an assumption that trade is better than no trade, and that barriers to trade are harmful to national and international welfare.

            The activities of the International Monetary Fund, World Bank, and World Trade Organization have far –reaching consequences for the livelihood of people around the globe. The IMF’s mocaroeconomic policy coordination, crisis management skills and role in economic  development have all sparked debate and controversy. The World Bank, as the world’s leading multilateraldevelopment agency, has a crucial role to play in poverty allevation. The creation of WTO signaled a stronger institutional base for the multilateral trading system, but the tension between futher trade liberalization and sectional interest has stymied its ability to fulfil this role.

            In respect of all three institutions persistent criticisms remains of their ability to contribute to stability, efficiency and justice in the global economy.  In a very stark manner the Global Financial Crisis raised pertienent issues about the governance role of these institutions and brought to the forefront the dilemmans of reforming their internal governance structures to address the perceived crisis of legitimacy they face.

 I Made Danan Jaya (1801406622)