Jakarta delays ban on single-use plastic bagsWednesday, 09 Jan 2019
GENERAL NEWS AND HEADLINES
The Jakarta Post, Headline
Results of the latest survey conducted by pollster Indikator Politik Indonesia show that personal attacks on presidential candidates online have little effect on voters’ opinion of their preferred candidates, either President Joko “Jokowi” Widodo or rival Prabowo Subianto. Involving 1,220 respondents across 34 provinces in December 2018, the survey found that 20 to 30 percent of respondents were aware of malicious rumors surrounding the candidates, including Jokowi’s parents being Christian, Jokowi being a member of the defunct Indonesian Communist Party (PKI) and Prabowo’s involvement in kidnapping pro-democracy activists between 1997 and 1998. The survey also found that while some respondents believed those rumors, fewer than 10 percent of Jokowi-supporting respondents believed rumors disparaging the President. In contrast, more than 80 percent of Prabowo’s supporters believed these rumors. On the other hand, 65 percent of Jokowi’s supporters believed negative rumors about Prabowo, while 63 percent of Prabowo’s supporters did not believe them.
Jokowi-Ma’ruf to highlight performance
Presidential candidate Joko “Jokowi” Widodo and running mate Ma’ruf Amin are gearing up for the first presidential debate on Jan. 17. Jokowi and Ma’ruf’s national campaign team secretary, Hasto Kristiyanto, said during the debate that Jokowi and Ma’ruf would highlight their performance and experience as leaders. The team considers Jokowi’s experience in leading the country for the past four years and Ma’ruf’s experience in heading one of the most influential Islamic organizations in the country an advantage. Several notable figures will reportedly assist Jokowi and Ma’ruf in preparing for the debate. They include former journalist Putra Nababan, former TV presenter Tina Talisa and House of Representatives Commission I member Meutya Hafid.
Doni Monardo to head BNPB
Kompas, p. 4
President Joko “Jokowi” Widodo reportedly will inaugurate Lt. Gen. Doni Monardo, currently the secretary-general of the National Resilience Council (Wantanas), as the new head of the National Disaster Mitigation Agency (BNPB) on Jan. 9. Kompas quoted State Secretary Minister Pratikno as confirming that President Jokowi had signed the decree stipulating Doni’s appointment on Jan. 8. Doni will replace Rear Adm. (ret.) Willem Rampangilei who was installed as BNPB chief in September 2015.
News about Doni’s new job first circulated on Jan. 2. However, his inauguration was delayed, although the State Secretariat had distributed invitations to attend his swearing-in ceremony. Jokowi ended up making an unscheduled visit to tsunami-affected Lampung that day.
Halal draft regulation submitted to President
A draft government regulation (RPP) on halal products has been submitted to President Joko Widodo for approval. The regulation will take effect immediately after the President signs the draft, allowing the Halal Products Certification Agency (BPJPH) to operate in full. Coordinating Human Development and Culture Minister Puan Maharani, Coordinating Economic Minister Darmin Nasution, Religious Affairs Minister Lukman Hakim Saiffudin, Health Minister Nila Moeloek, Trade Minister Enggartiasto Lukita, Industry Minister Airlangga Hartarto and Agriculture Minister Andi Amran Sulaeman all signed the final draft regulation, which is now on the President’s table.
The BPJPH has unable to process halal certification due to the absence of a clear implementing regulation.
Jakarta delays ban on single-use plastic bags
The Jakarta Post, p. 1
In December 2018, the Jakarta administration was confident that it would finally issue a regulation in January to limit the circulation of single-use plastic bags. However, the move has been put on hold as Jakarta Governor Anies Baswedan demanded a revision to the draft of a gubernatorial regulation proposed to him by the Jakarta Environment Agency. The head of the agency, Isnawa Adji , previously said that the draft, which stipulates fines of up to Rp 25 million for retailers and vendors that provided single-use plastic bags for customers, was ready. Anies, however, said a major revision was needed, noting that the draft did not stipulate a substitute material to replace plastic bags. Anies argued that the absence of a substitute might affect many sectors.
BUSINESS AND ECONOMIC NEWS AND HEADLINESIntegrating transportation modes in Greater Jakarta
Bisnis Indonesia, Headline
In a speech during a limited Cabinet meeting on transportation management in Greater Jakarta on Tuesday, President Joko “Jokowi” Widodo called for integration in the transportation system to encourage the use of mass transportation.
The integration will involve all mass transportation modes, starting from the light rail transit (LRT), MRT, Transjakarta, airport trains and commuterline. Citing data from the National Development Planning Agency (Bappenas), the President said the state had suffered financial losses of about Rp 65 trillion due to traffic congestion each year.
Transjakarta, commuterline and airport trains have started operating. The first stage of the Greater Jakarta LRT is targeted to operate mid-2019, while the Jakarta MRT is expected to begin operation in March 2019, while a trial operation has been conducted.
Govt aims to maintains investor confidence to lure foreign funds
Investor Daily, Headline
The government is trying to maintain investor confidence toward the country’s economy, among others, by improving the management of the state budget and maintaining low inflation rates.
Meanwhile, foreign reserves rose to US$120.7 billion in December 2018 from $117.2 billion in the previous month. Foreign reserves are expected to keep growing due to the increasing amount of capital inflows.
“With Indonesia becoming more attractive, capital inflow is expected to increase. This is what we are trying to maintain through coordination between central and local governments, the private sector and relevant parties,” Finance Minister Sri Mulyani said during the presentation of Indonesia’s 2019 Economic Outlook at the Ritz Carlton hotel on Tuesday.
Big corporations have eyes on six new toll road projects
The development of toll roads is growing rapidly. In this political year, the Indonesia Toll Road Authority (BPJT) will open a tender for the development of six toll road projects, which include the Kamal-Teluknaga-Rajeg toll road, Balaraja-Seamanan section, Patimban Port access, Gedebage-Tasikmalaya-Cilacap, Penajam Bridge-North Passer and Surakarta-Yogyakarta-
The BPJT estimates that the construction of the six toll road projects will require Rp134.74 trillion. BPJT head Herry Trisaputra Zuna said his side was still waiting for the details of the locations of the projects. The tender will take place early this year. “We are hoping to start the bidding in the first quarter,” he said on Tuesday.
Taming hot money time bomb
Bisnis Indonesia, p. 1
Former Finance Minister Chatib Basri has warned policymakers about the capital inflow time bomb in Indonesia.
Since the closing of the year, emerging markets have been experiencing a rebound in share prices. The Jakarta Composite Index (JCI) rose to 6,300, while the rupiah strengthened to 14,000 per US dollar. The government’s bond yields decreased significantly to 7.8 percent.
However, he explained that although capital inflow could support economic growth in the short term, it was not sustainable. When the Federal Reserve increased its interest rate (FFR) early last year, capital outflow was inevitable and provided a shock to the Indonesian financial market, depreciating the rupiah. On account of that, he recommends that the government create a financial product that allows Indonesians to invest in foreign currency in Indonesia (onshore).
State revenue relies on corporate income taxes
Bisnis Indonesia, p. 4
State revenue from the non-oil and gas sector will still rely on payments from corporate taxpayers, which contributed 37.7 percent to total non-oil and gas income tax of Rp 828.2 trillion last year.
The government expects to raise non-oil and gas tax revenue to about Rp 1.51 quadrillion this year, a 14.2 percent increase from the target in the 2018 state budget. From that number, the targeted tax revenue will come from income taxes, set at Rp 828.2 trillion, an increase of 20.7 percent from the target in the previous year.
Another Rp 311.54 trillion of tax revenues will come from corporate income taxes and Rp 149.7 trillion from individual income taxes.