Daily Business Briefing – Oct. 30

JAKARTA (TheInsiderStories) – Good morning. We provide several pieces of important news that might help your business decisions today:

Japan agrees to accelerate investment in Indonesia

The Republic of Indonesia has concluded an agreement with Japan to collaborate in accelerating development on Padang-Bukittinggi-Pekanbaru infrastructure along the Sumatra Toll Road. At a meeting with Indonesian President Joko Widodo at the Merdeka Palace, Friday, Indonesia Japan Association (JAPINDA) President Yasuo Fukuda discussed prospects for investment various sectors, including Indonesia’s acutely limited infrastructure.

‘Gross Split’ regulation to launch this month

Indonesia’s Energy and Mineral Resources Ministry will revise Energy Regulation No. 8/2017 on a gross split scheme for energy revenues. Deputy Energy Minister Arcandra Tahar revealed that the revised regulation will come into force this month, after an evaluation that included input from oil and gas contractors.

Government Launches First Silangit-Singapore Flight 

The Indonesian government has officially opened the first international flight from Singapore to the new Silangit International Airport in Tapanuli, North Sumatra, on Saturday (28/10). Garuda Indonesia was the first flight to land, following an extension of the runway; the new air access is expected to bring in more tourists to the area, especially to Lake Toba, one of the government’s priority tourist destinations. Garuda will fly from Singapore to Silangit three times a week.

Pelindo II to spend Rp1 trillion to build ‘Digital Port’ 

Indonesia port company PT Pelindo II  has allocated Rp1 trillion (approx US$73 million) to build what is described as a ‘digital port’ within the next five years. The new ‘non-container port’ is expected to improve service and expedite every process and activity at the port.

Govt Advised to Sell SOE’s subsidiaries 

Indonesia’s Chamber of Commerce and Industry has advised the government to sell off many subsidiaries of state-owned enterprises (SOEs), especially those that do not support the core businesses of their parent companies. In a meeting with President Joko Widodo, Kadin Chairman Rosan Roeslani suggested proceeds from such sales can be used by the government to finance infrastructure projects. SOE Minister Rini Soemarno welcomed the suggestion, adding that she planned to reduce the number of SOEs and their subsidiaries to around 200 from the current 800, through mergers and initial public/private offerings to markets.

U.S Economy Growth in Third Quarter

The U.S. economy unexpectedly expanded in the third quarter, with an increase in inventory investment and a smaller trade deficit offset a hurricane-related slowdown in consumer spending and a decline in construction. The gross domestic product increased at a 3.0 per cent annual rate in the July-September period after expanding at a 3.1 per cent pace in the second quarter. Previously, economists had forecast the economy would grow at a 2.5 per cent pace in the third quarter. Excluding inventory investment, it grew at a 2.3 per cent rate, slowing from the second quarter’s 2.9 per cent pace.