JAKARTA (TheInsiderStories) – Good morning! We provide several important news items that might help your business decisions today :
Indonesia and Australia to Cut Import Tariffs
Indonesia will reduce tariffs on the import of Australian raw sugar, and in return Australia will eliminate import duties on Indonesian herbicides and pesticides. According to the Australian Government, these measures will both boost Australia’s sugar industry and Indonesia’s chemical industry, and will provide flow-on economic benefits to both countries. The Government also said that Indonesian pesticides and herbicides will be more competitive in the Australian market as a result, offering greater choice to consumers. It also expects Indonesia’s processed food and beverage industries to benefit from lower raw sugar prices. Talks are currently underway on a proposed Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).
Indonesia Needs US$360 Billion for Infrastructure
In the next two to three years, Indonesia will need to secure US$360 billion in infrastructure funding, according to Indrawati Darmawan, CFO, Indonesia Infrastructure Finance. Having neglected to build and maintain proper infrastructure for the past 10-20 years, Indonesia is playing catch-up in its infra investment. In fact, since the 1997-1998 financial crisis hit the country, the government has been in no position to build enough infrastructure to support the country. President Joko Widodo has attempted to remedy this with large-scale infrastructure spending (much of it with borrowed money) and the government is currently focusing on 35 national priority projects.
Jokowi to Slash Regulations to Boost Digital Economy
President Jokowi has pointed out the approximately 42,000 regulations related to information and communications technology industries, which stand as a stumbling block for innovation; the current government will do its best to remove restrictive regulations. According to him, regulation should be more moderate; it is unfortunate that Indonesia is trapped by its own regulations. Even though government has already scrapped many regulations there are still many left.
Korea Eximbank-Indonesia Seeks to Expand Infrastructure Investment
National Development Planning Minister Bambang Brodjonegoro has asked Korean companies to participate as stakeholders in infrastructure projects in this country. Eximbank of Korea, in response, vowed to provide stronger financial support to private market players seeking to enter the public infrastructure market in Indonesia. Bambang expects Korean companies to expand their investment in the Indonesian infrastructure market, with its big potential.
PM Shinzo Abe: Not the Time to talk With N. Korea
Japanese Prime Minister Shinzo Abe said on Wednesday that countries need to unite to enforce sanctions and apply pressure on North Korea to abandon its nuclear and missile programs. According to Abe, now is not the time for dialogue: rather, now is the time to apply pressure. Previously, U.S. President Donald Trump warned North Korea in a speech to the U.N. that the United States would “totally destroy” the country if threatened.
Continental Receives Foreign Direct Investment License
Continental Energy Corporation, an emerging developer of small-scale refineries integrated with local crude oil feedstock production, today announced that it has received a foreign direct investment license from Coordinating Investment Board. The license permits the Company to incorporate PT Continental Hilir Indonesia (PT-CHI), a new, foreign-owned, limited liability subsidiary company in Indonesia. PT-CHI will be charged with the task of creating new business opportunities for the Company within the downstream oil and gas sector. Through PT-CHI, the Company expects to offer management consulting services and joint venture opportunities to local Indonesian crude oil producers, regional investors, and energy infrastructure development enterprises on both regency and provincial levels, any one of whom might be a strategic partner, investor or stakeholder in the Company’s future downstream projects.
New Cigarette Tax Will Announces October
Heru Pambudi, director general of customs and excise at the Finance Ministry, said that the cigarette excise for 2018 will be announced in October. Earlier, the Finance Ministry announced a plan to increase the cigarette excise rate to 8.9 percent. The excise deposit in the first quarter decreased by 12.7 percent compared to the same time last year.