According to him, coal is an affordable price of energy. However, the coal does not exist in all regions, therefore it needs to be distributed to the areas without coal. “In this case, it does not mean that the price can be cheaper so it needs a balance between the energy and the price. Coal is an affordable price of energy. Compared to renewable energy that can be more expensive than Coal,” he said.

His ministry also confirmed that the government is also committed to developing renewable energy. However, according to energy mix, renewable energy is targeted at 23 percent. While coal is higher than that. “Therefore, coal with renewable energy must be synergized, and coal will still be used and renewable energy will be pushed,” he said.

Reduce Import

Meanwhile the Ministry of Industry has boosted the increase of investment in domestic plastics and rubber industries to strengthen the manufacturing structure to push the positive value and reduce imported raw materials. “Plastics and rubber industry is the backbone that is closely linked to other industries that can support national development,” Secretary General of the Ministry of Industry Haris Munandar said.

In order to attract investors, according to Haris, the government has issued various strategic programs and policies in creating a conducive business condition, and also, providing simplification for some licensing process and starting a business in Indonesia. “For example, incentives for export oriented for labor-intensive industry and the industries that develop innovation and vocation. Ministry of Industry has also facilitated the develop of the several integrated industrial area, especially outside of Java Island, “he said.

The Secretary General has stated that the important role of plastic and rubber products as they are needed by the strategic manufacturing sectors which are integrated among other industries such as food, machinery, automotive, and electronics. “Therefore, based on the regulation ofMinistry of Industry and RIPIN, the government and the stakeholders will synergize in pushing the productivity and competitiveness of the industry,” he said.

The development of plastic and rubber industry in Indonesia is surely quite prospective. Currently the potential of the national plastic industry is supported by 925 companies with total production is reaching 4.68 million tons per year for various plastic products and able to provide jobs for 37,327 people.

“The demand for national plastic products is 4.6 million tons now, increase five percent in the last five years,” Haris said. He also hopes that local plastic products can win the local market and able to compete in international market.

Meanwhile, according to rubber commodities, Indonesia is one of the main producing countries of natural rubber with the production of 4 million tons per year. National natural rubber production can still be increased considering to the potential of the existing land that reaches 3.5 million hectares. Furthermore, supported by research and development (R&D) program conducted by government, educational institutions and private sectors.

Source: Antara

Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.

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The Investment Coordinating Board (BKPM) estimates that Presidential Regulation No. 20 of 2018 on the Usage of Foreign Workers is expected to push the investment until 20 percent. Head of BKPM Thomas Trikasih Lembong said, the permit to usage of foreign workers is one of the main complaints of investors who invest in Indonesia.

"In this foreign workers permit they (investors) have to meet and go around the agencies. If this rule is really on the path of reform that covers ‘Online Single Submission`, I think the increase can be 10-20 percent," he said.

The former Minister of Trade ensures that the increase of investment will encourage the usage of foreign workers. The reason is that the international investors have been putting billions dollars in other countries with full of risk.

"I’m sure they (the investors) wants to bring their people because it would be too risky if something happen. If I were an investor I would want to put my own people or the best people in the world without seeing their citizenship in the investment," he said.

Nevertheless the number of foreign workers in Indonesia only reach one per thousand compared than the number of Indonesian workers currently working abroad. In fact, roughly, from 1,000 workers in Indonesia, only one of them is a foreign worker.

"So it is unreasonable that 999 Indonesians ‘fear’ to be surrounded by a single stranger. This fact has even been recognized by senior figures on the opposition coalition," he said. Although the government supports the simplification of procedures for the usage of foreign workers, the government on the other hand continues to improve the skills and knowledge of local workers.

It is hoped that these efforts can encourage local workforce to develop with better jobs and earn higher income. "Therefore, the government prepares vocational training programs and polytechnics to improve the skills of our workforce in order to develop," he concluded.

Source: Bisnis Indonesia

Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.

INESIA is an Indonesian Legal Process Outsourcing provider. INESIA has assisted Clients in establishing Foreign Direct Company and Representative Office more than 250 entities with 100% success rate. We also assisted local and multinational companies in handling their corporate legal matters, including providing legal retainer services for day to day business operations.

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Indonesia is mentioned to be a country that easy to invest and starting a business, that make China interested to invest in.

Representatives from the Chinese Embassy to Indonesia Wang Liping explained that Indonesia is one of the countries that easy doing good business. Therefore China decide to invest in Indonesia. "The regulation in Indonesia is quite good, and the government began to provide convenience such as tax holiday. It is a revolutionary policy to encourage investment in Indonesia," said Wang at the Office of BKPM.

Wang said, one of the area in Indonesia, East Java, is a place that has a high potential for the manufacturing of industry, food and automotive. Except of these sectors, China also invest to e-commerce and digital industries sector in Indonesia.

"E-Commerce in Indonesia is growing very rapidly with big market and population that is why Alibaba, JD and Baidu have started to enter in Indonesia (market)," he explained. Based on the data of BKPM, China is on the seventh position of the top 10 investor countries in Indonesia during 2012-2017 that has 5,365 projects with the amount of investment is US$ 7.8 billion.

Head of Promotion and Investment Services of BKPM of East Java, Andromeda Qomariah, explained that currently East Java is on the second position for the ease of doing business after Jakarta. "We continue to provide the easy way of doing business to attract investment," said Andromeda.

According the data of 2015, the population in East Java was 38.84 million with the area of ​​about 48,039 km. The economic growth in East Java in the fourth quarter of 2017 was at 5.72%. The growth was slow but compare to national growth it is higher. In 2017, foreign capital inflows from China to East Java was US$ 77.04 billion with 335 projects, and created job for 5,407 people.

Source: Antara

Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.

INESIA is an Indonesian Legal Process Outsourcing provider. INESIA has assisted Clients in establishing Foreign Direct Company and Representative Office more than 250 entities with 100% success rate. We also assisted local and multinational companies in handling their corporate legal matters, including providing legal retainer services for day to day business operations.

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