Tag: Indonesia

  • Indonesia to bring home tax money parked in Singapore

    Indonesia to bring home tax money parked in Singapore

    The government is to hunt down tax money from Indonesians who park their money in Singapore, following an offer from Singapore to allow Indonesia to access the financial data of Indonesians in the neighboring country.

    Singapore and Indonesia are soon to sign a Bilateral Competent Authority Agreement (BCAA) to implement the Automatic Exchange of Information (AEoI) between the two countries.

    Finance Minister Sri Mulyani Indrawati received the offer from Singapore on the sidelines of the G20 Summit in Germany last week.

    “This is a positive. I will follow up so that we can benefit from the agreement,” said Sri Mulyani.

    Sri Mulyani estimated that Indonesian wealth parked overseas amounted to about Rp 1 quadrillion (US$74.68 billion), 60 percent of which was in Singapore.

    Meanwhile, the Finance Ministry’s tax compliance expert Suryo Utomo said that of the Rp 835.7 trillion parked in Singapore that was declared during the tax amnesty, only Rp 84.52 trillion had been repatriated.

    Taxation Directorate General spokesman Hestu Yoga Saksama said that Sri Mulyani and Director General of Taxation Ken Dwijugiasteadi would visit Singapore sometime this month to follow up on the agreement initiated by Singapore.

    Indonesia and Singapore has an open exchange of information, said Hestu. He added that Indonesia should also seek a BCAA with Hong Kong, as well as stipulate confidentiality and data safeguards.

  • Quality blueberries the fruit of choice for Indonesians

    Quality blueberries the fruit of choice for Indonesians

    Australian fruit is proving popular with the Indonesian middle class. Premium fresh fruit is what seems to be in demand from Indonesia, especially that which has been grown for the Indonesian palate.

    Andrew Bell, director of Mountain Blue Farms in northern New South Wales, says the successful family-owned blueberry operation had been looking for export opportunities to expand beyond the domestic market, and eventually settled on Indonesia.

    The country has a population of more than 255 million, making it a potentially important market.

    “Indonesia has a significant population, right on our doorstep,” says Bell, whose company also runs its own breeding operation. “They also have a rapidly growing middle class who are a food and health conscious, and there happened to be existing protocols for getting blueberries into Indonesia.”

    He says the typical agribusiness approach into Indonesia had either been about bulk supply (wheat, sugar), or it had entailed lower grade fruit and vegetables for specific markets.

    “We saw a different market,” says Bell. “We wanted to be in the quality supermarkets that are being built for the middle classes. We have a premium product and that’s what we wanted to sell in Indonesia. We didn’t want to compromise on what we do.”

    The company representatives spent a week in Indonesia in early 2017, meeting supermarket operators, wholesalers and distributors.

    “They all dealt with Australian food imports, and their view of our produce was the clean and green image. It’s our image up there and that’s what the Indonesian operators are selling to consumers.”

    Health benefits

    It turns out that blueberries are a middle class food because of the number of health benefits associated with them. And with the Indonesian middle class already estimated at 50 million – and growing – that represented a market worth being involved in.

    The key, he says, was finding the right partners, which came in the form of a food distribution outfit in Java that was prepared to make specific recommendations about the Indonesian palate.

    “Blueberries come in many shapes and sizes,” says Bell. “The Indonesian palate goes for a large, crunchy, sweet blueberry.”

    Blue Mountain Farms has a breeding operation in Tabulam – on the Clarence River – and they set about breeding the Indonesian blueberry.

    Those samples are being fed into Indonesian supermarkets next month but the early feedback from the distributors has been positive.

    “It’s a very large market, for a product we can perfect and grow in regional Australia. We employ around a thousand people in the season and a core of between 60 and 70 staff, and we have a network of growers around the country who we use.”

    Bell says the chance to secure a foreign market is good for agribusiness employers and the towns they operate from. He also says that Indonesian business people are easy to deal with.

    “They know what they want and they know what works,” says Bell. “That makes it so much easier for us.”

    New tastes

    AsiaLink Business CEO Mukund Narayanamurti, says the example of Mountain Blue Farms is not an isolated one in Indonesia, as the health-conscious and food safety-aware middle classes of Indonesia develop new tastes for food.

    “The main food trade out of Australia into Indonesia is wheat, sugar, live cattle and boxed beef,” says Narayanamurti. “But this is large-scale or commodity trade. When the middle classes are growing – as they are very aggressively in Indonesia – you see rising demand for value-add premium foods, and for fresh fruit and vegetables.”

    He says Australia has a reputation in south-east Asia for its agricultural output, plus the Australian image for processed and value-add foods is one of quality.

    The demand from Indonesia is not only because middle class people have more disposable income, and higher standards for what they feed themselves and their children, says Narayanamurti. He says there are also new supermarket chains being built through urban Indonesia, where the value-add and premium foods are being sold.

    “In the Indonesian supermarkets there are Australian cherries, broccoli, avocados, Brussels sprouts, citrus fruits and kale.”

    He says Indonesia’s rising wealth and expectations is dramatic and the country is estimated to have a size of middle class in the world Top 10 by 2020. With the rising wealth comes the rising consumption of quality protein – Australian meat and dairy – and a focus on eating healthy and eating safe.

    Export opportunities

    Narayanamurti says one of the main reasons for Australian agribusiness operators to keep an eye on Indonesia is the export market itself.

    Australia’s involvement in the NZ-Australia-ASEAN zone gives exporters access to reducing-to-zero tariffs on beef, wheat and cheese and other trade goods that will be reducing.

    “The bigger picture is that this trade area covers 600 million people and a market of $US2 trillion ($2.6 trillion),” says Narayanamurti. “There is a trade liberalisation program meaning you’ll be able to land goods in one country and find it much easier to distribute them to other countries.

    “It’s early days in the south-east Asian market, but Australian agribusiness operators should be developing products and services that have cross border application, as the Australian breeding services and feedlot operators are already doing in the livestock sector.”

  • Qatar National Bank injects Rp 2.18t into QNB Indonesia

    Qatar National Bank injects Rp 2.18t into QNB Indonesia

    The Qatar National Bank QPSC (QNB Group) as the controlling shareholder of Bank QNB Indonesia has injected Rp 2.18 trillion (US$162.72 million) into the bank as capital paid in advance as well as acting as standby buyer in the rights issue of Bank QNB Indonesia.

    The additional capital is the realization of QNB Group’s commitment to maintain the bank’s strong capital structure as well as maintain the bank’s business growth stability, the QNB Group said in a statement.

    From the total funds of Rp 2.18 trillion, Rp 2.06 trillion will be used to purchase HMETD offered during a rights issue and the remaining funds will be used for next year’s rights issue.

    Funds from the rights issue, after issuance costs, will be used by QNB Indonesia to increase productive assets, particularly in the form of loan disbursements.

    With the commencement of the rights issue and additional capital payments from QNB Group, the bank’s capital adequacy ratio (CAR) will be 16 percent, well above the Financial Service Authority’s (OJK) minimum requirement.

    On Monday, QNB Indonesia held an extraordinary shareholders meeting at the bank’s head office in Jakarta. The meeting approved Heba Ali Ghaith Al-Tamimi and Stephen Holden as commissioners and Adhiputra Tanoyo as director. The resignation of Grant Eric Lowen as a commissioner was also approved. (dea/bbn)

  • Paper dominates Indonesia`s export in 2016-2017

    Paper dominates Indonesia`s export in 2016-2017

    Paper products dominate Indonesias global exports in two years, which was worth US$13.95 billion of the total wood products’ exports of $11.83 billion in 2016-2017.

    “These value are wood-based products with V-Legal documents, namely SVLK and FLEGT licenses,” Director of Forest Products Processing and Marketing, Ministry of Environment and Forestry, Rufiie, said here on Monday.

    SVLK is Indonesias timber legality assurance system, while FLEGT is the EUs Forest Law Enforcement, Government and Trade.

    According to Rufiie, the export of wood products using the V-Legal and FLEGT system was just implemented in 2016. FLEGT was issued after Indonesia implemented SVLK.

    In 2016, Rufiie added that the total global export value of Indonesia’s timber products amounted to $9.26 billion. Wood products’ exports with FLEGT license, which is exported to the EU, amounted to $868.85 million.

    Of the total exports, paper products to all countries around the globe amounted to $3.11 billion, while paper exports to the EU amounted to $204.17 million.

    “There are two systems applied in wood products’ export, namely with SVLK for all countries outside the EU and FLEGT Licenses for the EU market,” Rufiie remarked.

    Up to March 2017, the export value of wood products to all countries was worth $2.57 billion, while that to the EU was worth $277.26 million.

    The global paper export value until March 2017 was worth $837.37 million, while export to the EU was worth $65.25 million.

    “Export of wood products in the form of handicrafts to all countries till March 2017 was worth $28.91 million, export of furniture was worth $368.05 million, export of panel was worth $567.48 million, export of pulp was worth $475.66 million, export of wood works was worth $265.04 million, and export of wooden chips was worth $ 28.91 million,” Rufiie revealed.

  • IDX datafeed disruption has no effect on investor confidence

    IDX datafeed disruption has no effect on investor confidence

    The Indonesian Stock Exchange (IDX)s Datafeed disruption on Monday morning was claimed to have no effect on investors confidence.

    “We measured our Key Performance Indicator, and the result was still good,” IDX General Director Tito Sulistio stated here on Monday.

    To date, the disruption had been fixed, and IDXs information system has returned to normal; however, Sulistio added that IDX would continue to develop its information technology to upgrade their trade availability system in order to avoid and minimize disruption.

    He explained that the system had a maximum availability of 99.999 percent, and IDX already had 99.975 percent, which will be upgraded to 99.98 percent.

    “Every 0.05 percent hike may need US$20-25 million,” he remarked.

    At the same time, IDX is trying to upgrade its trade infrastructure system from Tier-2 to Tier-3.

    “Hopefully, we will be moving to the new Tier-3 system on August 30,” noted Sulistio.

    Separately interviewed, IDX Director of Information Technology and Risk Management Sulistyo Budi revealed that the disruption was caused by uneven distribution of information from Datafeed application.

    “During investors trading, information for public has to be provided. When it is not available, we have to suspend the trade in order to check the problem. Once it is resolved, activities return to normal,” he stated.

    Despite the IDXs claims, Indosurya Mandiri Securities analyst William Surya Wijaya explained that the bourse could anticipate more technical systems disruption that might affect investments plan from the stakeholders.

    “This could be a lesson for the stock market players, so that they should also anticipate systems disruption,” he explained.

    Wijaya was optimistic that the investors confidence in Indonesian market was still high as the domestic economy remained conducive, despite being overshadowed by some negative sentiment, especially current geopolitical situation.

  • DBS Indonesia’s net profit surges 75% in Q1

    DBS Indonesia’s net profit surges 75% in Q1

    PT Bank DBS Indonesia, a subsidiary of Singapore-based DBS Bank, has reported a 75 percent year-on-year (yoy) increase in its net profit during the first quarter of 2017 to Rp 263 billion.

    The net profit increase was supported by a 16 percent yoy increase in revenue, which reached Rp 1 trillion in the first quarter this year. Its net interest income rose 23 percent to Rp 740 billion.

    “The positive performance reflects our strong commitment in the corporate and consumer banking segment,” Bank DBS Indonesia director of strategy and planning Rudy Tandjung said in a press statement on Saturday.

    Focusing on corporate banking and small and medium enterprises (SME) banking segments, the lender booked increases in the return on assets (ROA) ratio and the return on equity (ROE) ratio to 2.16 percent and 13.45 percent, respectively.

    Rudy said the bank was on its way to transforming itself into a digital bank this year. “We are focusing in our […] agenda on becoming a digital bank. We started the transformation from the inside, by changing the mindset and behavior of our employees and also redefining their respective roles,” he said.

    In the first quarter of this year, DBS Indonesia issued a negotiable certificate of deposit (NCD) with a 7.1 percent annual interest rate. DBS Indonesia had also released a new bancassurance product in its Wealth Management portfolio during the same period, Rudy said.

  • 7-Eleven closes shop in Indonesia

    7-Eleven closes shop in Indonesia

    Indonesian retailer PT Modern Internasional has announced it is closing its 7-Eleven stores in Indonesia after just eight years in the country.

    The company cited “limited resources” for the closures, which will see around 161 stores stop operating.

    While PT Modern Internasional owns the 7-Eleven franchise in Indonesia, Japan’s Seven & I Holdings is the parent company of the convenience store chain which operates in 18 countries.

    A Seven & I Holdings spokesperson told that the company would search for someone else to take on the franchise in Indonesia.

    “Indonesia is an important country for us. This is not the end for 7-Eleven’s business,” they told the news agency.

  • Indonesian embassy promotes Balinese culinary in Beijing

    Indonesian embassy promotes Balinese culinary in Beijing

    The Embassy of the Republic of Indonesia in Beijing and Hotel Conrad has promoted Balinese cuisine to the guests staying at one of the five star hotels in the capital city of China from July 6 to 16, 2017.

    “This is the second event this year,” Indonesian Ambassador to China, Soegeng Rahardjo, stated in a press statement received by Antara here on Friday.

    To support the event titled A Taste of Indonesia, Conrad Beijing presented three chefs from Bali, namely I Made Semawan, Agus Feritude, and Agus Surya.

    They serve Balinese dishes of chicken, pork, fried rice, and satay, which tasted exactly the same as the ones found in the island.

    “With the growing recognition of Indonesias tradition, culinary taste, and beauty, it is expected that the number of foreign tourists visiting Indonesia will continue to increase,” the ambassador stated.

    The Embassy will continue to hold such culinary promotional events by involving several star hotels.

    Earlier, a similar event was also held by the Embassy in cooperation with Westin Beijing in mid-March.

    This year, the Ministry of Tourism expects 2.5 million tourists from China.

    In previous year, tourists from mainland China visiting Indonesia reached 1.5 million people. They still see Bali as a major tourist destination in the country.

    Garuda Indonesia has provided direct flights to Denpasar from Beijing, Shanghai, Guangzhou, and Chengdu. Several Chinese airlines also provide direct flights to Denpasar.

  • Indonesia Bourse Poised To Rebound On Monday

    Indonesia Bourse Poised To Rebound On Monday

    The Indonesia stock market headed south again on Friday, one session after it had ended the two-day slide in which it had fallen more than 85 points or 1.3 percent. The Jakarta Composite Index now rests just beneath the 5,815-point plateau although it is expected to bounce higher again on Monday.

    The global forecast for the Asian markets is upbeat after better than expected jobs data from the United States, although those numbers may fan concerns over the outlook for inflation rates. The European markets were mixed and the U.S. bourses were higher, and the Asian markets figure to follow the latter lead.

    The JCI finished modestly lower on Friday following losses from the financials, resource stocks and food companies.

    For the day, the index shed 34.87 points or 0.59 percent to finish at 5,814.79 after trading between 5,810.36 and 5,863.59. Volume was 5.91 billion shares worth 6.4 trillion rupiah. There were 239 decliners and 102 gainers, with 101 stocks finishing unchanged.

    Among the actives, Bumi Resources retreated 2.92 percent, while Vale Indonesia added 0.27 percent, Jasa Marga plunged 3.21 percent, Lotte Chemical Titan dropped 2.38 percent, Tiga Pilar Sejahtera tumbled 1.88 percent, XL Axiata sank 0.31 percent, Bank MNC Internasional and Bank Pan Indonesia were unchanged, Bank Danamon Indonesia skidded 1.64 percent and Bank Mandiri dipped 0.56 percent.

    The lead from Wall Street is positive after Friday’s jobs report as the markets regained some ground after heavy losses in the previous session.

    The Dow climbed 94.30 points or 0.4 percent to 21,414.34, while the NASDAQ added 63.61 points or 0.1 percent to 6,153.08 and the S&P gained 15.43 points or 0.6 percent to 2,425.18. For the week, the Dow rose 0.3 percent, the NASDAQ added 0.2 percent and the S&P was up 0.1 percent.

    The rebound followed a Labor Department report showing stronger than expected job growth in June. The report said non-farm payroll employment jumped by 222,000 jobs in June following an upwardly revised increase of 152,000 jobs in May.

    The Federal Reserve is scheduled to make its next decision on interest rates following a two-day meeting later this month.

  • Marketplace for used automobiles Droom to invest upto $10m in acquisitions

    Marketplace for used automobiles Droom to invest upto $10m in acquisitions

    After closing its $20 million Series C round of funding last week, Droom, an online marketplace for used automobiles, plans to announce a few acquisitions by the end of this year, founder Sandeep Aggarwal said.

    “We are planning 2-3 acquisitions this year and will probably spend about $8-10 million. We have been in talks with several companies,” he added.

    Droom will also expand into Indonesia this year, a year later than its earlier planned foray into Southeast Asia. When asked on the deferred timelines, Aggarwal admitted the plan had been ‘delayed’ as the company had stayed focused on its operations in India.

    “We stayed focused on India because if we capture India, then we can capture many other countries. After Diwali (this year), we will expand internationally and Indonesia will be the first country. After that, we will be expanding to Malaysia, the Philippines, Thailand and Singapore,” he said.

    After SEA, Droom will consider Middle East and Western Europe for expansion. It expects international expansion to contribute 10-15 per cent of the total revenues in calendar year 2018. In 2019, overseas revenue could increase to 20-25 per cent, Aggarwal added.

    The company’s recently closed Series C round was lower than than the quantum it had raised as part of its earlier Series B financing.

    At a press briefing announcing the funding last week, Aggarwal had said: “Series C is smaller than Series B in terms of quantum  of money – it is not because we could not get more money – in fact more money was available, but we are still sitting on 70-80 per cent of our Series B. We feel bad that we could have raised the same money now at a much higher valuation now (when compared to Series B), and seen a lesser dilution.”

    The company says it was unable to spend its Series B funding entirely as it had achieved at least three times more its internal target. It also claims to be the first e-commerce company that had achieved low single-digit dilution in Series C.

    Droom will be launching two new services — RTO services and test drive at doorstep in the coming months. By December this year, it aims to cross Rs 5,000 crore in gross revenues and close to Rs 125 crore in net revenues. Droom has 1,79,000 auto dealers and has sold 1,50,000 vehicles since its inception.

    Aggarwal has recently been locked in a bitter spat with the top management of Shopclues, another online marketplace he co-founded.

    He had handed over the reins of Shopclues to his now-estranged wife Radhika Aggarwal in 2013, when he was arrested by the FBI for his alleged involvement in an insider trading case in the US in 2013. In March this year, Aggarwal took to social media to accuse his wife of pushing him out of Shopclues, in collusion with co-founder Sanjay Sethi.

  • Garuda flights delayed because of ‘technical constraint’

    Garuda flights delayed because of ‘technical constraint’

    PT Garuda Indonesia has confirmed the delay of 68 flights from Friday to Saturday as a result of a “technical constraint” at Soekarno-Hatta International Airport’s Terminal 3, resulting in long waits for passengers.

    The delays at the airport in Tangerang, Banten, had affected both domestic and international flights, including those to Japan and China, Garuda Indonesia said in a press statement on Saturday.

    “We apologize for the inconveniences in the situation, which is out of our authority, and we will continue to give our best effort to coordinate and reduce the length of the delays,” Garuda Indonesia spokesperson Hengki Heriandono said.

    Citing details provided by state air navigation firm AirNav, he explained that the cause of the delay was the limited movement at the newly opened terminal. “We have implemented a delay management policy to all affected passengers to ensure passenger rights can be fulfilled,” Hengki added.

    Last month, 30 Garuda Indonesia flights were delayed for hours because of an electrical system failure at the new terminal. (dis/ags)

  • Bank Mandiri to expand in Malaysia as first ‘ASEAN bank’

    Bank Mandiri to expand in Malaysia as first ‘ASEAN bank’

    Bank Mandiri will expand operations in Malaysia by using its newly awarded status as a cross-regional lender, Indonesia’s largest state-owned bank said Thursday.

    Mandiri said it is the first bank in the region to be designated a qualified ASEAN bank — a concept developed by Association of Southeast Asian Nations members as part of an effort to create an open, integrated financial market providing services to companies investing and trading in the region.

    To obtain QAB status, banks must meet certain conditions, such as in capital adequacy, and pass screening under bilateral agreements between monetary authorities. Indonesia and Malaysia agreed in 2016 to grant QAB status to three banks from each other’s countries.

    Such Malaysian banks as CIMB Group Holdings and Malayan Banking already have major operations in Indonesia, while Indonesian banks have been seeking opportunities to grow outside the home market. “We highly appreciate the Malaysian banking authorities that support the presence of banks from Indonesia,” said Muliaman Hadad, chairman of Indonesia’s Financial Services Authority. “Indonesia has also treated Malaysian banks as their own. This is a step forward that can strengthen relations between Indonesia and Malaysia.”

    Malaysia will become the first overseas market for Mandiri to operate a full-fledged banking business in, the lender said. It plans to invest 300 million ringgit ($70 million) to upgrade a remittance office in Kuala Lumpur to a full branch and roll out wholesale and retail banking services.

    Mandiri is also exploring expansion into Myanmar and the Philippines, it said in a news release.

  • Over 1 million passengers travel through Bali airport

    Over 1 million passengers travel through Bali airport

    State-owned airport operator PT Angkasa I said that over 1 million passengers have traveled through Balis Ngurah Rai International Airport during the homecoming flow of post-fasting travelers since 10 days (D-10) before the Lebaran D-Day to D+4.

    Head of Public Relations of PT Angkasa Pura I at I Gusti Ngurah Rai International Airport, Arie Ahsanurrohim, stated in Denpasar on Saturday that the passengers recorded during the period were those for domestic and international routes.

    Arie added that the movement of passengers was calculated based on regular and unscheduled flights.

    He explained that the unscheduled flights were the ones used by former US president Barack Obama and Malaysian Prime Minister and family when they visited during the Lebaran holiday season.

    Meanwhile, related to the flow of Lebaran homecoming, Arie explained that the movement at the local airport was quite unique compared to other airports in Indonesia, which are mostly dominated by the flow of departing passengers.

    At Ngurah Rai Airport, the flow of departure and the arrival of passengers were high or only slightly different, considering Bali as a tourist destination where many tourists spend the long Lebaran holidays.

    Data from Integrated Monitoring Lebaran Command Post at the airport mentioned on H+4 or on Friday (June 30) that the number of domestic passenger arrivals reached 19,174 people, up 10.6 percent compared to the same period in 2016.

    Passengers departing from the airport reached 21,573 people, or jumped 14 percent compared to the same period in the previous year.

    The number of those arriving and departing through the international routes increased with arrivals recorded at 16.3 thousand, or up by 16 percent, and departure at 17.7 thousand, or up by 14 percent.

  • Government committed to relocating Indonesian capital

    Government committed to relocating Indonesian capital

    The Government of Indonesia is determined to relocate the state capital Jakarta out of Java Island to avoid total traffic gridlock by 2020.

    President Joko Widodo, better known as Jokowi, had urged the National Development Planning Board (Bappenas) to conduct a feasibility study on the possible location, and Palangkaraya in Central Kalimantan was one of the options.

    Bappenas Chief Bambang Brodjonegoro has stated that by the end of this year, the agency would have completed assessing potential alternative cities that could become the new capital of Indonesia.

    Brodjonegoro expressed hope that in the next two years, activities related to the transfer of the administrative center of the state capital would be carried out.

    Debates on relocating the capital have frequently resurfaced since it was first mooted by President Sukarno in 1957.

    Sukarno once held a discourse that the state capital could be relocated to Palangkaraya, as he had also visited the city to review its development.

    Problems of the overcrowded Jakarta city have since then become more practical and less ideological, with reports surfacing that areas of north Jakarta are sinking at a rate of 25 centimeters a year.

    In search of a new capital city of Indonesia, Bappenas is looking at aspects, such as the availability of land and natural resources around the potential cities.

    “We have discussed the matter with the president, and essentially, we will soon begin the process of relocating the capital,” the Bappenas chief remarked.

    Brodjonegoro reiterated that the assessment would hopefully be completed this year, including its estimation and funding scheme.

    According to Brodjonegoro, Bappenas will encourage private involvement in the planned relocation of the state capital, particularly in terms of funding.

    For funding, he said Bappenas will push the public-private partnership model.

    Until now, Bappenas is still reviewing the plan to relocate the state capital from Jakarta to a new area outside Java Island.

    The capital city should be relocated to outside of Java Island, given the availability of more adequate land.

    Nevertheless, Brodjonegoro has not revealed details of the specific location of the new capital of the country.

    “Certainly, outside Java, most likely on the island of Kalimantan, but the specific location will be finalized soon,” Brodjonegoro said.

    Java Island is believed to dominate Indonesias economic activities. Moreover, economic activities in Java are more concentrated in the areas of Jakarta, Bogor, Depok, Tangerang, and Bekasi.

    If the plan to relocate the capital city is truly realized, the Bappenas chief said the heavy burden on Jakarta, as the center of government, finance, and business, can be reduced.

    In addition to heavy burden of Jakarta as the center of government, finance, as well as business, annual flooding during the rainy season has repeatedly crippled Jakarta and hindered the smooth functioning of administrative and business activities.

    The flooding has aggravated several existent problems faced by Jakarta, which conventional measures have failed to resolve.

    Public services and government businesses grind to a halt every time floods lash the capital city.

    In a bid to solve Jakartas problems, the idea of relocating the state capital has repeatedly resurfaced.

    But numerous political figures have stated that moving the capital to another island in Indonesia outside of Java would not solve the problems.

    They suggested that it would be better if the city of Jakarta remains Indonesias capital, but it would be beneficial if some government activities are relocated outside Jakarta.

    They said the problems of Jakarta can be solved by relocating some ministries to other islands across the country.

    According to them, shifting some of the ministries can resolve the issues plaguing the capital city. But, the Ministry of Finance, the Ministry of Religious Affairs, the National Police, Defense and Security Ministry, and the Presidential Palace should remain in Jakarta.

    By relocating the capital, the political figures do not want to give the impression that they are shifting Jakartas problems to another city.

    The names of some Indonesian cities in Kalimantan, West Java, and Papua had circulated among the public following the discussions related to relocating the countrys administrative center.

    Some of the proposed cities were Palangkaraya in Central Kalimantan, Jonggol in West Java, and Jayapura in Papua.

    Some years ago, in an address to all provincial governors across the country at a gathering in Palangkaraya, Central Kalimantan, the then President Susilo Bambang Yudhoyono stated that Jakarta Metropolitan City was already too crowded and hence not an ideal location to be the center of the national administration.

    “Around 15 years ago, Jonggol in West Java was under consideration to be the new national administration center,” Yudhoyono stated at the time.

    The idea of relocating the center of administration from Jakarta to another area was shelved as Indonesia was hit by a monetary crisis some years ago.

    Over the years, the Jakarta Metropolitan City has become too crowded, and the idea of relocation should be reconsidered.

  • Direct Flights from Indonesia to Moscow Set to Open

    Direct Flights from Indonesia to Moscow Set to Open

    Indonesia has planned to open direct flights to Moscow, Russia, in a bid to attract the countrys tourists to visit Indonesia.

    “Currently, we have to transit in a third country when we fly to Russia, and this could take 24 hours, whereas with direct flight, it might only take 11 hours,” Ambassador to Russia M. Wahid Supriyadi said here on Wednesday. Wahid is scheduled to hold a meeting with the management of the national flag carrier Garuda Indonesia to discuss the plan.

    “Alhamdulillah, Garuda has the commitment to fly to Moscow,” he noted. Garuda Indonesia has planned to fly thrice a week to Russia, two flights from Denpasar in Bali and one from Jakarta, from August.

    A data of the Tourism Ministry showed that some 85 thousand Russian tourists had visited Indonesia in 2016. The number is targeted to reach 100 thousand tourists in 2017. However, Wahid remarked that the number was still relatively small compared to Russian tourists visiting Thailand, which is about 1.5 million per year, through direct flights from the country.

    “Garuda’s flight would not only carry passengers but also tropical fruits and vegetables,” he revealed, adding that these commodities were scarce in Russia. Following the European Union and the US embargo, Russia would halt import of fruits, vegetables, and dairy products from the two regions as a response.

    The move would provide an opportunity for Indonesian commodities to penetrate the Russian market. “These products would have to be transported by air cargo,” Wahid pointed out, adding that Garuda Indonesia planes could carry some 5 tons of the products in one flight.