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Indonesia's Islamic finance industry surges

05

Aug

Indonesia's Islamic finance industry surges

"Unlike other countries, the Islamic finance industry in Indonesia grows because of community initiatives who developed unique Sharia-based financial [...]

Indonesia's Islamic finance industry surges. `Unlike other countries, the Islamic finance industry in Indonesia grows because of community initiatives who developed unique Sharia-based financial features such as rural Islamic banks, retails Islamic bonds, Hajj funds, and other innovative social financing,` he said. Although the number of Islamic economy experts only reached 131 in Indonesia, which is lower than Malaysia's 205, the number of Islamic financial institutions has reached 150. This number exceeds Malaysia's 100 Sharia financial institutions, Mustafa said. He added that Bangladesh, which has 174 Islamic economic experts, only has 50 Sharia financial institutions.  According to him, there is a strong correlation between the number of Islamic economic experts and the completeness of Islamic financial regulations in a country. In this regard, the completeness of Indonesia's Sharia economic regulations is considered strong, ranking second after Malaysia in first place. Mustafa continued that Indonesia's abundant natural resources and strategic geographical location provide numerous opportunities for economic development, especially in the Sharia financial industry. Sharia-based business sectors are continuously growing throughout the world, one of which is the halal food industry. Thomson Reuters ranks Indonesia as the world's largest halal food market with a value of Rp2,063 trillion in 2014, followed by Turkey with a value of Rp1,432 trillion.`Now, with the government's drafting and implementation of Sharia economic regulations, the Islamic finance industry is expected to grow as a strong and sustainable sector without losing the unique Sharia values of its products and services,` Mustafa said.
Editor: Unggul Tri Ratomo

Taiwanese buyer interested in Banaran coffee

04

Aug

Taiwanese buyer interested in Banaran coffee

The event is part of \"Tour de Coffee 2016\" organized by the Indonesian Economic and Trade Office (KDEI) in Taipei, Taiwan. According to the Deputy [...]

Taiwanese buyer interested in Banaran coffee. The event is part of \`Tour de Coffee 2016\` organized by the Indonesian Economic and Trade Office (KDEI) in Taipei, Taiwan.
According to the Deputy of KDEI, Taipei Siswandi, Tour de Coffee 2016 was the second series ever which was attended by coffee importers, coffee shop owners, coffee roasters, and coffee enthusiasts or coffee writers from agricultural media in Taiwan.
They were invited to see directly the coffee making process, starting from the very first step of picking the beans in the plantations to processing in the factory.
`We want to introduce the quality of Indonesian coffee beans better, and attract buyers to purchase the coffee directly from producers and exporters,` Siswandi said in the sidelines of the visit.
He also added that the 2016 Tour de Coffee was started with a visit to the coffee plantation managed by PT Golden Malabar Indonesia in Pengalengan, West Java.
Next, they visited the coffee plantation of PT Perkebunan Nusantara (PTPN IX) in Bawen and Jambu, Semarang District, and the plantation of PT Taman Delta Indonesia in Gunung Kelir, Jambu, Semarang District.
Apart from visiting the coffee plantations, KDEI also coordinated the buyers to have one-on-one meetings with coffee exporters in West Java and Central Java.
The meeting is expected to shorten the usually long business chains, so that the export value of Indonesian coffee to Taiwan will continue to increase.
`Up to now, Taiwan buyers buy our coffee products through traders in Hongkong, Japan, Singapore or even the United States. By organizing this meeting, they can get a cheaper price by directly dealing with producers and exporters,` he explained.
Siswandi added that based on KDEI's trade records in Taipei, the export value of Indonesian coffee to Taiwan in the last 3 years, market demand has seen a significant rise.
In 2013, Indonesia exported 5.21 million tons of coffee to Taiwan with a total value of 16.81 million USD, rising to 6.73 million tons with a total value of 21.35 million USD in 2014. In 2016, it increased to 7.10 million tons with a total value of 23.53 million USD.
`This is in line with the increase in the number of coffee shops in Taiwan in the past 3 years, which has grown by 45-50 percent annually,` said Siswandi.
Impressed
One of the buyers from Shanghai Company, Miss Jeni Liu, said that she was very impressed with the visit. She said that it was her first time seeing a coffee plantation and a coffee factory in person.
She never thought that the coffee plantations in Indonesia would be so vast. `I am very impressed, it turns out the process of making coffee is very complex and long. The coffee plantations are also huge, I have some in Taiwan, but they're not this size,` said Miss Jeni when met at the PTPN 9 coffee plantation in Bawen.
Through a visit and a direct meeting with producers and coffee exporters in Indonesia, which was organized by KDEI, Taipei, Miss Jeni hopes that she can increase her coffee import volume from Indonesia.
The reason is that she can get coffee with high quality and a price that is much more affordable, compared to buying through a trader.
`Compared to other Asian countries, even Columbia and South America who are well-known for their coffee production, the coffee from Bandung and Banaran has good quality. Moreover, the distance from Indonesia to Taiwan is closer, so we can save more on the cost,` she added.
http://bisniskeuangan.kompas.com/read/2016/08/04/130000326/.Buyer.Taiwan.Minati.Kopi.Banaran

President Jokowi asks regions to have a budget to control prices

04

Aug

President Jokowi asks regions to have a budget to control prices

"There is a budget for controlling prices so that when there are fluctuations, interventions can be made. There are several interventions in the APBD [...]

President Jokowi asks regions to have a budget to control prices. `There is a budget for controlling prices so that when there are fluctuations, interventions can be made. There are several interventions in the APBD budget,` the President said at the opening of the national coordination meeting of the Regional Inflation Control Team (TPID) in Jakarta, Thursday.President Jokowi gave the example of the East Java provincial government policy which intervenes in transportation, and the policy of the Jakarta Special Capital Region (DKI) in intervening in prices through family cardholders who do not receive a lot of welfare. `There is a subsidy there. I think other cities can do this, apart from routine things like the cheap markets we do. But it would be better if it was more detailed,` President Jokowi said.The President also reminded police chiefs at the resort level (kapolres), the public prosecutor's office and local governments to monitor warehouses at least twice a week or once a month. `Do they collect too much, which would mean that they intend to manipulate prices? Do they not have any stock? We should know this,` the President said. The President said that if stock is running low, then there must be an action to increase it, and if it is overflowing, then it is ordered that it is taken out so that prices in the region can be stabilized again.The President also asked regional leaders to pay attention to infrastructure, such as roads and bridges, so that they are maintained and do not result in excessive costs. `Transportation, are roads damaged, bridges damaged? If the district/city can make repairs, please do so. If not, report it to the central government so that we can do it,` the President said.President Jokowi said that if infrastructure is damaged, then the price of transportation will definitely be high because of the increase in the cost of fuel.The President also reminded regional heads to pay attention to the availability of distribution of supply of goods so that no price increases occur.President Jokowi gave the example of the price of shallots in Brebes, Central Java, which is Rp12,000, but in Jakarta it goes up to Rp40,000 because there is not only the problem of transportation, but also the problem of storage of loading and unloading of goods. `When loading and unloading, give guidance to farmers so that the 100 kg worth of shallots that they send should reach here as 100 kg. But in reality there is a lot of damage. When loading and unloading, out of 100 kg of what is sent, 15 to 20 percent can be damaged, so of 100 kg, the loss is 20 kg. This will increase the price,` the President said.Therefore, the President urged regional leaders to pay attention to the small, detailed things and the microeconomic issues so that no price fluctuations occur.The President reminded them that when managing the government, it is necessary to pay attention to two things: economic growth and controlled inflation.Furthermore, the President reminded them that developed countries have low inflation rates, such as Malaysia at 2.1 percent in 2015, the United States at 0.12 percent, and Europe at 0.04 percent, which shows price stability.President Jokowi asked the regional heads to maintain the inflation rate so that the target of plus/minus 3.5 percent for this year is reached and is expected to drop to below two percent. `If you, Governors, Regents and Mayors can do this, we will be finished. If you can push it down below two percent and maintain economic growth at above five percent, this means that people have money and can shop easily. This is the big job that we have to do,` President Joko Widodo said.
Editor: Priyambodo RH
http://www.antaranews.com/berita/576788/presiden-jokowi-minta-daerah-miliki-anggaran-kendali-harga

Darmin: Indonesia Once 2nd Largest Global Sugar Exporter, Now Importer

03

Aug

Darmin: Indonesia Once 2nd Largest Global Sugar Exporter, Now Importer

Indonesia has always had in demand plantation commodities from around the world, starting from spices, coffee, tea, sugar, rubber, to palm oil (Crude [...]

Darmin: Indonesia Once 2nd Largest Global Sugar Exporter, Now Importer. Indonesia has always had in demand plantation commodities from around the world, starting from spices, coffee, tea, sugar, rubber, to palm oil (Crude Palm Oil/CPO). Since 500 years ago, European sailors have sailed the ocean in search of spices from Maluku.But there are no plantation commodities that can stay high for long. Spices also ended their golden era since the 17th century. Now, it is no longer a valuable leading commodity in the world.`Historically, Indonesia has had several leading commodities. So, 500 years ago, European countries raced to come to the east to find a leading commodity known as spices. As a result, the world was divided by the Portuguese and Spanish. We were the owners of the spices that were being hunted by countries. But today, spices such as history are no longer the mainstays,` said Darmin at the Borobudur Hotel, Jakarta, Wednesday (3/8).As with spices, sugar which was once the mainstay of Indonesian exports in the 1930s is also no longer a favourite. `We were also ranked as the worlds number two sugar exporters before independence. But today do you know how much sugar we import every year? 3.5 million tonnes,` Darmin said.Now we have palm oil. The question is, will palm oil experience the same fate as other plantation commodities which were once the favourites in the world? Darmin said that this was the challenge, how to develop palm oil so that it is a sustainable commodity.`We have had commodities that have come and gone, will palm oil follow the same path? Of course we do not want that to happen. Palm oil is the mainstay of millions of people, just like rubber. The challenge for us is whether we are able to establish a mainstay commodity plantation that is sustainable,` he said.One of the steps that can be taken so that Indonesian palm oil can be sustainable, can be in continuous demand and accepted by the world market, is to get Indonesian Sustainable Palm Oil (ISPO) certification. With the ISPO mandate, all palm oil companies in Indonesia must meet environmental, social and economic standards.`ISPO is a standard that we have agreed to make it a credible, respected and internationally accepted standard. I have heard a suggestion that the validity of ISPO should be increased, I think this is appropriate to make it easier for us to implement it nationally,` he added. (dtf)
http://www.medanbisnisdaily.com/news/read/2016/08/03/249299/darmin-dulu-ri-eksportir-gula-no2-dunia-sekarang-impor/#.V6GZtBJna1s

Farmers Dismayed by Nugie’s Negative Campaign against Palm Oil

02

Aug

Farmers Dismayed by Nugie’s Negative Campaign against Palm Oil

The invitation was made by Nugie during the WWF-Indonesia #DoubleTigers Campaign at Senayan City Mall, Jakarta, last Saturday (July 30). "If it's [...]

Farmers Dismayed by Nugie’s Negative Campaign against Palm Oil. The invitation was made by Nugie during the WWF-Indonesia #DoubleTigers Campaign at Senayan City Mall, Jakarta, last Saturday (July 30).
`If it's true and there's written proof, we will immediately report it to the police (Jakarta Police),” said Secretary General (Sekjen) of Apkasindo Asmar Arsjad, Monday (August 1).
According to Asmar, Nugie's actions are a reflection of a public figure who is not nationalistic.
“Don't be a provocateur to the people to be against palm oil. If he is against palm oil, from now on he shouldn't brush his teeth with toothpaste, don't shower with soap, don't shampoo his hair, don't eat chocolate, don't eat fried food, because they all use palm oil as a raw material,” said Asmar.
Asmar said that oil palm is a strategic national commodity that supports around 30 million people in Indonesia. In 2015, the export value of palm oil reached 18.64 billion US dollars.
Vice Chairman of Commission IV of the Indonesian Parliament, Herman Khaeron, said that Nugie's actions contradict the efforts made by the government.
The DPR and palm oil stakeholders in Indonesia are promoting the product overseas to convince the international community that Indonesian palm oil is produced in accordance with environmentally-friendly plantation practices. (Noverius Laoli)

Editor: Sanusi
Source: Kontan

http://www.tribunnews.com/bisnis/2016/08/02/petani-kecewa-dengan-kampanye-negatif-nugie-soal-sawit

Malaysia to ease banking expansion cost in Indonesia

02

Aug

Malaysia to ease banking expansion cost in Indonesia

The facilitation is achieved after the signing of a bilateral agreement between Indonesia and Malaysia within the framework of ASEAN Banking [...]

Malaysia to ease banking expansion cost in Indonesia. The facilitation is achieved after the signing of a bilateral agreement between Indonesia and Malaysia within the framework of ASEAN Banking Integration Framework (ABIF), which is planned to be held in Jakarta, this afternoon. `Indonesian Banking will be treated equally as domestic bank (in Malaysia) not as a foreign bank (foreign bank) anymore,` he said. The equal treatment is in accordance with the principle of cooperation in ABIF, which is reciprocal and the principle of fairness to reduce inequality. ABIF is a derivative framework of ASEAN Framework Agreement on Services Financial Services Liberalization (AFAS-FSL). In accordance with the ABIF framework, Mulya continued, banks in Indonesia that will be allowed to establish a banking company in Malaysia are banks included in the `Qualified ASEAN Bank` (QAB) category. He explained that, in accordance with the agreement between Indonesia and Malaysia, the QAB category is a bank that has strong capital, a bank that implements good corporate governance (GCG), and a bank whose assets are controlled by domestic participants. `With such requirement, the most feasible is Commercial Bank Business Activities (BUKU) IV,` he said. Bank included in BUKU IV is a bank that has a core capital of more than Rp30 trillion. Currently, there are only four banks in Indonesia that are included in BUKU IV, namely Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), and Bank Central Asia (BCA). Mulya ensured that three banks, namely Mandiri, BRI, and BNI, have expressed their interest to expand to Malaysia. `Only BCA is not interested,` he said. However, the establishment of a company by the three banks depends on the readiness of each bank. The reason is, the three banks will not only establish a branch office, but also a subsidiary company in Malaysia. With this ABIF framework agreement, the costs charged to Indonesian banking will also be cheaper. The capital requirement charged remains at 300 million Malaysian Ringgit.  However, said Mulya, the administration fee for Indonesian banks will be reduced from 10.4 million Ringgit to 5.2 million Ringgit. Then, the cost in the payment system such as Automated Teller Machine (ATM) that is collected is reduced from 4 Ringgit per transaction to 1-2 Ringgit per transaction. However, for annual contributions, the costs charged will be more expensive than Malaysian domestic banks, which is 144 thousand Ringgit compared to 42 thousand Ringgit.  According to Mulya, this must be understood because Indonesian banking will later only enjoy the banking infrastructure that has been built by Malaysia. The negotiation for cooperation between Indonesia and Malaysia within the ABIF framework has taken six years since 2011.  In fact, for a long time, two Malaysian banking giants, namely Maybank and CIMB Niaga, have expanded the Indonesian market, which is the largest market in ASEAN. Meanwhile, Indonesian banking is often complicated and charged with high costs if they want to expand their business to Malaysia. `Malaysias provisions differentiate which are foreign banks and which are domestic banks. Therefore, we seek ABIF so that reciprocity will occur,` he said.
Editor: Ruslan Burhani
http://www.antaranews.com/berita/576247/malaysia-akan-ringankan-biaya-ekspansi-perbankan-indonesia

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