Indonesia News E M B A S S Y O F T H E R E P U B L I C O F I N D O N E S I A I N S T O C K H O L M February 2016 Dear valued readers, let me take this opportunity to introduce myself as the newly appointed Ambassador of the Republic of Indonesia to the Kingdom of Sweden. As I just arrived here recently I went through our records to find that our both countries Indonesia and Sweden have been having tremendous relationship and have the potential to further enhance it. As an initiative to a growing number of people-to-people contact and business relationship that will benefit both of our countries, I am pleased to present you the second issue of Indonesian Embassy’s newsletter “Indonesia News”. I hope that this publication will become a part of the success inside the relationship both our great countries are sharing. Finally, I am determined to do my utmost to further strengthening our well relationship. Yes, let’s inject more substance into the relationship. Sincerely, Yours, Bagas Hapsoro. The Indobuildtech Expo series are Indonesia’s largest portfolio of trade events that are dedicated entirely to the building and interiors industry. Founded in Jakarta in 2002, the events now also run in Bali, Surabaya, Makassar, Bandung, Balikpapan and Yogyakarta. As the largest and longest running of the series, Indobuildtech Jakarta is recognized as a key trade event in the industry attracting the most important industry professionals from Indonesia and South East Asia. As the world’s focus has shifted towards Indonesia, the exhibition has enjoyed a growing global presence, with international exhibitors now accounting for more than half of the total exhibiting companies at Indobuildtech Jakarta. 14th Exhibition of Building and Finishing Materials at Indonesia Convention Exhibition (ICE), Indonesia The value of construction work carried out in Indonesia surged during the second quarter of 2015, according to a new report from the country's central bureau of statistics. In its latest Construction Indicator, the bureau revealed that the growth rate for construction value climbed by 4.11 points on the previous quarter. Over the 12 months to the end of June 2015, the construction value index rose from 186.16 to 197.62. The report contained several other statistics that show Indonesia's construction industry is in strong shape. The growth rate of permanent workers - a useful indicator of the number and size of construction projects taking place across the country - rose by 1.18 quarter on quarter, while man-days (a unit relating to the amount of work that can be carried out by one person throughout a day) saw an increase of 3.64 points. Content Indonesia Building Technology Expo (INDOBUILDTECH) 2016 ……….............................p.1-2 Indonesian Cocoa bean ....p.3 Investment News .......... p.4-5 Tourism: Raja Ampat …. p.6-8 1
Transcript
Indonesia News E M B A S S Y O F T H E R E P U B L I C O F I N D O N E S I A I N S T O C K H O L M
February 2016
Dear valued readers, let me take this opportunity to introduce myself as the newly appointed Ambassador of the Republic of Indonesia to the Kingdom of Sweden. As I just arrived here recently I went through our records to find that our both countries Indonesia and Sweden have been having tremendous relationship and have the potential to further enhance it. As an initiative to a growing number of people-to-people contact and business relationship that will benefit both of our countries, I am
pleased to present you the second issue of Indonesian Embassy’s newsletter “Indonesia News”. I hope that this publication will become a part of the success inside the relationship both our great countries are sharing. Finally, I am determined to do my utmost to further strengthening our well relationship. Yes, let’s inject more substance into the relationship. Sincerely, Yours, Bagas Hapsoro.
The Indobuildtech Expo series are Indonesia’s largest portfolio of trade
events that are dedicated entirely to the building and interiors industry.
Founded in Jakarta in 2002, the events now also run in Bali, Surabaya,
Makassar, Bandung, Balikpapan and Yogyakarta. As the largest and
longest running of the series, Indobuildtech Jakarta is recognized as a
key trade event in the industry attracting the most important industry
professionals from Indonesia and South East Asia. As the world’s focus
has shifted towards Indonesia, the exhibition has enjoyed a growing
global presence, with international exhibitors now accounting for more
than half of the total exhibiting companies at Indobuildtech Jakarta.
14th Exhibition of Building and Finishing Materials
at Indonesia Convention Exhibition (ICE),
Indonesia
The value of construction work carried out in Indonesia surged during the second quarter of 2015, according to a new report from the country's central bureau of statistics. In its latest Construction Indicator, the bureau revealed that the growth rate for construction
value climbed by 4.11 points on the previous quarter. Over the 12 months to the end of June 2015, the construction value index rose from 186.16 to 197.62. The report contained several other statistics that show Indonesia's construction industry is in strong shape. The growth rate of permanent workers - a useful indicator of the number and size of construction projects taking place across the country - rose by 1.18 quarter on quarter, while man-days (a unit relating to the amount of work that can be carried out by one person throughout a day) saw an increase of 3.64 points.
Furthermore, Indonesia's overall business climate appears to have improved throughout the study period. The business condition index climbed from 48.14 at the start of the year to 53.23 by the end of the second quarter, indicating that the majority of respondents now believe the country's business conditions are getting better. While conditions across Indonesia as a whole are promising, Jakarta – recently forecasted by AECOM to enjoy the fastest construction market growth of any Asian country over the medium term – looks even more positive. The capital city district's business conditions index surged from 48 between January and March to 59.62 over the following three months. Equally encouragingly, a significant majority of the 3,000 construction companies surveyed agreed there has been a drop in the number - or scale - of problems affecting their business. The index dipped to 26.28 from 27.84 in the previous quarter.
Indobuildtech Jakarta is Indonesia's largest and best known trade exhibition showcasing the full spectrum of products and services for the building and interiors market. Since it's launch in 2002, the event has gained huge international status, with international exhibitors now accounting for almost half of the total exhibiting companies. Attracting 35,000 key buyers every year, Indobuildtech Jakarta is recognised as the key platform for entering this thriving South East Asian market.
BUILDING & ARCHITECTURE DESIGN DECOR & CERAMIC
- Building Material & Equipment - Bathrooms & Kitchens
- Air-conditioning & Refrigeration - Sun Protection
- Water Technologies & Swimming Pool - Outdoor Living
- Cement Composites - Home Appliances
- Concrete - Home Accents
- Precast & Prestressed - Curtains & Blinds
- Gypsum & Partition Board - Stairs & Railing
- Ringlock Scaffold - CCTV & Security
Indonesia News is compiled, printed, and published periodically by the Embassy of the Republic of Indonesia in Stockholm, Sweden. Visiting address: Kungsbroplan 1, 4 tr, 112 27 Stockholm, Sweden. Postal: Embassy of Indonesia, Box13062, 10302 Stockholm.
Indonesian Cocoa Bean People in various countries love to consume chocolate, be it in the form of hot chocolate, chocolate bars or even chocolate cake. There is even a movie in 2000 titled Chocolat, starred by Juliette Binoche, which tells the good things inspired by the good tastes of chocolate. All forms of chocolate come from cocoa beans which in turn come from the cocoa tree or Theobroma cacao, a small (4–8 meters tall) evergreen tree in the family Malvaceae, which originates in the deep tropical regions of Central and South America. Cocoa trees grow in hot, rainy tropical areas within 20° of latitude north and south from the equator. Cocoa harvest is not restricted to one period per year. Usually it occurs over several months and in many countries cocoa can be harvested at any time of the year. The fruit is called cacao pod with an ovoid form, between 15-30 cm long and 8-10 cm wide. A fruit usually weights about 500 grams with its color ranges from yellow to orange when it is ripening. The seeds are contained inside the pod and each contains between 40-50% of coca butter while the pulp is made into a refreshing juice in some countries. Cocoa has theobromine as its active component which has similar properties with caffeine from coffee beans. Cacao products include cacao beans, shell and cacao waste, cacao paste, cacao fat and cacao powder. Cacao beans are used by midstream industry to produce to cocoa liquor, cocoa cheese, cocoa butter, and cocoa powder, which are used to feed downstream industry producing chocolate, chocolate based candies and milk, etc. Cocoa liquor is produced by grinding cacao beans to turn out soft cocoa pulp mixed with cocoa fat. The fat could be separated by pressing cocoa liquor until it is dry. After being dry it is ground again to turn out cocoa powder. Cocoa
butter, which is the most expensive, constitutes cocoa fat an extraction from cocoa liquor in the process of producing cocoa powder. Cocoa butter is often used as an ingredient for chocolate candies and basic material for cosmetics like lipstick. The Harmonized System (HS) Code
180100 groups Cocoa Beans, Whole Or Broken, Raw Or Roasted. Cacao beans for trading are usually differentiated into two large groups, the edel or fine cacao and the lindak or bulk cacao. Indonesia is establishing itself as one of the world's top producers of cocoa beans. There has been steady increase of cocoa beans from some 621,000 tons in 2006 to more than 800,000 tons in 2013. The major production areas of cocoa beans are Central Sulawesi, Southeast Sulawesi, South Sulawesi and West Sulawesi provinces, accounting for more than 70% of the national production. Other potential areas for cacao cultivation include East Kalimantan, Maluku and Papua provinces with coverage of up to 6 million hectares. The International Cacao and Coffee Organization (ICCO) estimated that the world’s demand for cacao beans would increase to 3.299 million tons while the current production is about 3.288 million tons. Developed countries in North America and Europe consume between 2,433 grams and 2,783 grams per capita per year while the consumption in developing countries, Asia, Middle East and Africa, is still very low at between 12 grams and 262 grams per capita per year.
Licensing Service Launched Just recently Vice-President Jusuf Kalla officially launched the Three-Hours Investment Licensing Service at One Stop Services in Indonesia Investment Coordinating Board (BKPM) office. The event was attended by more than 400 prominent stakeholders which include the Coordinating Economic Affairs Minister, along with Minister of Foreign Affairs, Minister of Industry, Minister of Trade, Minister of Manpower, Minister of Agrarian and Spatial Affairs/Chief of National Land Agency, Chief of National Police, Ambassadors, foreign business associations, captain of industries, and potential investors. Chairman of BKPM, Franky Sibarani stated at the launching of Three-Hours Investment Licensing Service that the simplifying services. Franky mentioned that BKPM has undertaken three steps improvements to bolster the investment acceleration. First is to simplify the investment licenses, and to facilitate investment projects that are facing some obstructions (debottlenecking), and lastly to boost investment. According to Franky, Three-Hours Investment Licensing Service retains a strategic role in
accelerating investment flow to Indonesia, foreign and domestically. “With this service, we expect that in the terms of license and regulation simplification, Indonesia could improve its competitiveness,” he explained. Furthermore, BKPM has allocated trained priority investment officers to provide assistance for investors in the three-hours investment licensing service. Investors who come directly with their investment plan equals to over IDR 100 billion (USD 8 million) and/or employs at least 1.000 manpower, are expected to bring their ID (passport or the deed of foreign company
ownership) and the flowchart of their production activity. “The service process flow would be like this, firstly, the eligible investors have to come to BKPM in person and take the queuing number. Then they will be greeted by Director of Investment Services. Investors are welcome to wait in the investment lounge for three-hours investment licensing service. The priority investment officer will deal with all the documents needed and hand them out to the investors when all of the processes are finished,” he mentioned. In addition, Franky asserted that the launching which took place today is an improvement of the previous three-hours licensing service. The former service which was launched on October 26th 2015 comprised three license products and one land-booking certificate.
Up until January 11th 2016, there are 7 companies that have utilized the three-hours service with total investment value worth IDR 17.85 trillion. “Those companies come from industrial sector, real estate, power plant, port, and livestock production,” he described. From 23 Days to 3 Hours Chairman of BKPM, Franky Sibarani highlighted on the importance of three-hours investment licensing service in relation to the simplification of the time requirement in processing 8
Type of Licence
Time Limit for Issuance (before)
Time Limit for Issuance (after)
Investment License
3 working days
3
hours
Deed of Establishment and Decree of Legalization of the company
Subject to variation(depends on the issuance process at Notary)
NPWP 1 working days
TDP 3 working days
RPTKA 3 working days
IMTA 3 working days
API-P 5 working days
NIK 5 working days
license products plus 1 certificate of land booking. “We have done the calculation; previously they needed more than 23 days to process all 8 license products, including the time to process the deed of establishment and Power of Attorney from Ministry of Law and Human Rights. Now it just takes three hours,” he explained. By employing the said service, investors will receive investment license, Taxpayer Number (NPWP), Establishment Deed and Decree of Legalization of the company from Ministry of Law and Human Rights, Company Registration Certificate (TDP), Foreign Manpower Utilization Plan (RPTKA), Foreign Manpower Utilization Permit (IMTA), Importer-Producer Identity Number (API-P), and Customs
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Identity Number (NIK). Franky added that the aforementioned 8 (eight) license products are issued by five
institutions aside from BKPM. The list includes Directorate General of Taxation of Ministry of Finance for the issuance of NPWP, Directorate General of Customs and Excise of Ministry of Finance for the issuance of NIK, Ministry of Trade for the issuance of TDP and API-P, Ministry of Manpower and Transmigration for the issuance of IMTA and RPTKA, Ministry of Law and Human Rights for the issuance of Legalization Decree of the establishment of new company and also the notary for the issuance for Establishment Deed of the new company. Apart from all those license products, there is also one Certificate of Land Booking that is published by Ministry of Agrarian and Spatial Affairs/National Land Agency. Apart from the three-hours service, previously on December 14th 2015 BKPM has coordinated with Directorate General of Customs and Excise of Ministry of Finance to provide incentive for investors in the form of acceleration of machines/goods import facility. It is applied to investors who are still in the construction phase of their investment realization. “Such facility comes in the form of acceleration of ‘green lane’ status promotion through company profiling,” Franky detailed. With a recommendation from BKPM, an upgrade of one company’s profiling into the ‘green lane’ status w ill take a shorter amount of time compared to what it would be in the normal condition. Normally, a new company will be categorized as a high risk and will be placed on ‘red lane’, consequently it needs physical examinations and document analysis before the Approval Letter of Good Delivery (Surat Persetujuan Pengeluaran Barang/SPPB) will be issued within 3-5 days time limit. “With the ‘green lane’ acceleration, that process will be reduced to approximately 30 minutes,” he pointed out. This implementation will speed up the company’s construction phase, as there will be a time certainty regarding the customs clearance process at the port. Companies are eligible in acquiring recommendation from BKPM with the following prerequisites: company is in the physical construction phase (building a factory), company has to report the latest Investment Progress Reports (Laporan Kegiatan Penanaman Modal/LKPM) to BKPM and have a good track record of previous LKPM’s reporting, and company is required to write a statement letter in which it will not misuse the imported goods (imported goods should conform to the import documents and be employed in accordance to the implementation of Principle License).
Rupiah Indonesia Update: Longest Winning Streak since 2010. Why? In line with the overall trend in Asia, the Indonesian rupiah continued to appreciate against the US dollar on
Wednesday (02/03). Based on the Bloomberg Dollar Index the rupiah strengthened 0.34 percent to IDR 13,301 per US dollar, touching a four and a halve-month high and recording its longest winning streak since 2010. Over the
past ten trading days the rupiah has been appreciating against the greenback. What made the Indonesian rupiah strengthen today?
Today, central bank Governor Agus Martowardojo said one of the key reasons why the rupiah is strengthening is capital inflows. After warmly welcoming Indonesia's Q4-2015 GDP growth figure foreign investors seem to have
regained confidence in the fundamentals of the Indonesian economy and the government's commitment to boost economic expansion. As a result, foreigners have increased investment in Indonesian (corporate and state) bonds,
stocks, as well as foreign direct investment (FDI). Martowardojo said global conditions also contribute to this recent success. Investing in Japan and the Eurozone have been made unattractive due to negative interest rates, China's
economy is still plagued by concerns about a hard landing, while there is still a high degree of uncertainty about the US economy. "In this global context, Indonesia is one of the better choices for investors," the Bank Indonesia
Governor said. Source: Indonesia-investment.com 5
Tourism
Raja Ampat
The roaring engines fixed to a large wooden boat are finally quiet. Nothing can be heard but the rifting little waves, lapping against the vibrant paint on the sides of the vessel that gracefully slows down. Native birds hop on the tip of a small tree in one of the deserted islands in the distance. Raja Ampat or ‘Four Kings’, is the name given to these islands and comes from a local myth. The four major islands found here are Waigeo, Misool (which is home to ancient rock paintings), Salawati, and Batanta. Underwater enthusiasts flock to this region because it offers the world’s best marine sights. In the Raja Ampat islands, divers can explore vertical underwater walls.
The thrill of drift diving is another great challenge. These are the awesome experiences you will find in Raja Ampat.The territory within the islands of the Four Kings is enormous, covering 9.8 million acres of land and sea, home to 540 types of corals, more than 1,000 types of coral fish and 700 types of mollusks. This makes it the most diverse living library for world's coral reef and underwater biota. According to a report developed by The Nature Conservancy and Conservation International, around 75% of the world's species live here. When divers first arrive here their excitement is palpable. It's common to hear people praise God as they take in the remarkable scenery. Others prefer to remain in silence taking in the overwhelming sight of so many islands with crystal clear water that softly brushes over the white sandy beaches.
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Commonly, divers will join a tour and live in a diving resort during their stay in the Raja Ampat Islands. To access diving spots, please contact and use the professional diving organizers, who can be conveniently found in Sorong. Several tour operators also offer the option of liveboard tours: (1) Raja Ampat Liveaboard; (2) Dive Raja Ampat; (3) Raja Ampat Before going to a dive spot, you'll need to obtain a permit from the local Papua police station. You will need to bring your passport and three (3) copies of the passport page with the Indonesian Visa. The diving organizers
can help you with these formalities. From Sorong, there are two type of boats available; Speed Boat (40 minutes - 1 hour boat trip, carries 15 passengers and costs Rp2 million/US$208.55); Long Boat (2-3 hour boat trip and could carry 10 passengers for the cost of Rp1,2 million/ US$126). Please note that all rates are subject to change without notice. You may rent a small boat if you wish to stop and make personal discoveries along the line of the beaches. As the Raja Ampat Islands have four mountainous main islands and hundreds
of small islands in their vicinity, you may want to take this opportunity to explore. In addition, the Karst area is a beautiful and original natural phenomenon, as it has various unique flora and fauna as its attractions e.g., Bird of Paradise (Cenderawasih) Botak, Red Cenderawasih, Maleo Waigeo, Kus-kus, orchids, palm etc. You can also trek around the islands to find hidden beauties, like waterfalls and ancient caves. GET THERE If you are flying from Jakarta, you can take a six hour flight to Sorong with a stopover in Manado. Alternatively, you can join a diving tour in Bali and fly from there. You will find Sorong just like any other city where you can get almost everything, although prices are higher due to its remote location. Usually only divers come to Raja Ampat, so you will not find many other tourists around. Joining a tour is the most common practice when visiting Raja Ampat. You do not have to be a professional diver to join a tour, as tour operators sell tours ranging for both for divers and non-divers. Flying from Jakarta/ Bali to Sorong, with connecting flights in Makassar or Manado are offered by: Merpati, Express Air, Lion Air, Wings Air, Silk Air, Garuda Indonesia, Pelita Air. There are daily ferries available between Sorong and Waisai, capital of the Raja Ampat district on the island of Waigeo. Ferries leave Sorong at 13.00 hrs and the journey takes between 1.5 to 2 hours. The return ferry from Waisai to Sorong leaves around 11.0 am. There are also speedboats for rent at Sorong.
Tips ■ October or November is the best season for diving in Raja Ampat because the ocean is typically flat and perfect for photography ■ Bring your underwater camera and underwater photography know-how. Because taking underwater photos is not that easy ■ To organize your travel you use travel agents with services in Indonesia. Just contact the agents in any international gateways in Indonesia (Bali, Jakarta, Medan, Batam, etc) ■ Sun blocks, sunscreens and hats are required ■ Bring anti-mosquito repellants and anti-malarial medicines
Disclaimer: While every effort is made to ensure that the content of this publication is accurate, the publication is provided “as is” and the Embassy of the Republic of Indonesia in Stockholm, Sweden makes no representations or warranties relating to the content and use of this
publication. Nothing on this publication should be taken to constitute or imply a formal recommendation by the Embassy.
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More facts about the Raja Ampat Conservation Area:* This area is home to 1,511 species of reef fish in the Bird’s Head Seascape;
1,320 species of reef fish in Raja Ampat; 75% of all
known coral species in the world; 10 times the number of hard coral species found in the entire Caribbean; In the Birds Head Seascape there 600 species of hard
coral recorded; 5 species of endangered sea turtles; 57
species of Mantis Shrimp; 13 species of Marine Mammals; And 27 species of endemic reef fish found only in that
area *According to a tour operator For more information, you can contact Raja Ampat Tourism Office at: Kampung Waisai, Distrik Waigeo Selatan Head of Office: Kalasina Rumbekwan (+62)81344644434 Staff: (+62) 81344422779 Useful Website:
