CREATING COMPETITIVENESS THROUGH HIGH-QUALIFIED HUMAN CAPITAL - Invest Indonesia NOW - BKPM
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INDONESIA
Invest Indonesia NOW
iOUTLOOK iTALK iENERGY
BKPM’s ‘Red Carpet’ Generating Highly Harnessing Energy
Strategy Qualified Human from The Earth’s Core
Resources through
Tax Incentives
CREATING COMPETITIVENESS
THROUGH HIGH-QUALIFIED
HUMAN CAPITAL
Investment Incentives:
Super Tax Deduction
Government Regulation (PP) No. Year 2019
On Vocational Education On Research & Development (R&D)
Subject Corporate taxpayers who provide work practices Corporate taxpayers who conducts Research and
an apprenticeships Development activities in Indonesia
Manufacturing, automotive, furniture, shipping, The R&D activities must be conducted in
Industry textile & garments, industrial logistics Indonesia and produce new inventions,
Groups innovations, new technologies and/or technology
transfer to develop industries
200% Reduction Rate 300% Reduction Rate
- 100% of real cost of physical laboratory - 100% in real R&D costs in Indonesia.
Income Tax facilities/workshops, goods and materials use in - The additional deduction for net income is the
Reduction work practices/apprenticeships, and teaching highest of 200% of the real R&D in Indonesia.
Rate instructor fees and honorarium or the other like. * Nb: regulated types of costs that do not get additional
- Additional deduction of net income of net income deductions: cost of quality
100% of the real cost. control, seasonal design changes, routine equipment
design, construction engineering/ relocation/ start-up
facilities, market research, etc.
- The cost of building, physical facilities is charged - Additional deductions from net income are
according to the useful life of the fixed assets. charged for 5 years since the results of R&D are
Period
- For other fees, it is charged in the year concerned, used.
so long as the additional deduction for the net - When taxpayers have intellectual property as a
income does not cause a fiscal loss. result of the relevant R&D.
Given to:
Vocational Labor Intensive
Research &
(Work Practices & Industry
Development
Apprenticeship) Reduction in net
Up to 300% reduction
Up to 200% reduction income tax by 60%
in gross income
in gross income of total investment
In order to improve the workforce, encourage innovation, and build labor-intensive industries.
Regulated in PP Number 45 Year 2019 concerning the Calculation
of Taxable Income and the Payment of Income Tax in the Current Year
iWORDS
Bahlil Lahadalia
Chairman of Indonesia Investment Coordinating Board
Dear Invest Readers,
This great nation is resources which is the key to encourage human
reorganizing itself. With for global competition. resources development.
a territory stretching
from Sabang to Merauke, Human resource The government plays an
Indonesia is undeniably investment is the important role in preparing
a country with bountiful government’s priority strategic programs to
natural resources. This is to stimulate domestic generate competent
not the only determining industrial sectors. In human resources which
factor to become a terms of opportunities are the main foundation
developed nation, and challenges, highly- of a nation’s development.
however. competitive human In the hands of creative,
resources will have innovative, and highly
For this reason, during a positive impact on competitive human
the past several years, the national competitiveness resources, Indonesia will
Government of Indonesia and investment climate. be able to compete on a
has been developing Therefore, synchronization global level.
highly-competent human of authority is needed
INVEST Magazine #02 - 2019 3
iCONTENTS
CONTENTS INVEST MAGAZINE #01 - 2019
iWORDS 10 Business Forum on 22 Maintaining the Role of
Furniture Industries MSMEs in the National
03 Message from The Economy
Chairman 11 NextICorn International
Summit iTALK
iCONTENTS
12 BKPM Promotes 24 Generating Highly
04 Contents Indonesia in Bloomberg Qualified Human
iMOMENTS New Economy Forum Resources through Tax
Incentives
06 China International Fair 13 MoU Signing BKPM-
For Investment And Hyundai STOPPER 28
Trade 2019 STOPPER 14 iENERGY
07 Indonesia-Australia iKNOW 30 Sidoarjo PLTSa to
Business Summit 2019 Manage Tons of Waste
16 Achieving success from
08 The 16th China-ASEAN the bottom 33 Harnessing Energy
Expo of 2019 from The Earth’s Core
iOUTLOOK
09 China International STOPPER 36
Import Expo 18 BKPM’s ‘Red Carpet’
Strategy
4 INVEST Magazine #02 - 2019
iCONTENTS
42 Legok Nangka Solid 63 Regional Investment
Waste Treatment Forum (RIF)
STOPPER 44 Dubai World Expo
2020
iGROW
62 Toyama General
44 West Java’s Corn Manufacturing Industry
Cultivation Open Trade Fair (TGMITF)
Wide Investment 2019
Opportunities47
When Farmer Goes China International
Digital Import Expo 2019
49 Going After Top 10 The 63 Nexticorn 2019
World’s
Bloomberg New
STOPPER 52 Economy Forum (NEF)
2019
iTOURISM
iACTUAL
54 The Ecotourism
Concept in Tanjungsari 64 BKPM Go Write
Deer Breeding Competition of 2019
56 Tegalwaru, Cultural
and Agribusiness
Destinations
iBUILD 58 Bromo Vulcania
Thematic Park
38 The Focus on East
Java Infrastructure STOPPER 60
Development iEVENT
40 Regional Infrastructure 62 Indonesia Pavilion
Potential and Solutions Davos 2020
Hannover Messe 2020
Publish by Consultant
Directorate of Exhibition and
Promotion Media, BKPM
www.dmc-indonesia.com
Editor’s address
Badan Koordinasi Penanaman Modal (BKPM)
Scan to Download Jl. Jend. Gatot Subroto No. 44, Jakarta 12190 P.O. Box 3186,
Indonesia
E-mail: tuditpsp@bkpm.go.id
INVEST Magazine #02 - 2019 5
iMOMENTS
CHINA INTERNATIONAL FAIR
FOR INVESTMENT AND TRADE 2019
CIFIT of 2019 is an annual investment exhibition Ambassador Djauhari
Oratmangun said that the
held in Xiamen Fujian Province, China. There are
good relations between
hundreds of thousands of visitors, both local the two countries
and international, who yearly visited the Xiamen could continue to be
International Conference and Exhibition Center. strengthened and enhanced
for the welfare of the two
CIFIT 2019 held between entrepreneurs and spectated countries. This all needs
September 8 and 11, 2019 by more than 100 thousand to be reflected in good
was a moment for the live viewers - was officially numbers of export, import,
Indonesian government, opened by the Deputy investment, tourism and
through its Ministry of Governor of Fujian Province, the digital economy. He
Industry and BKPM, to Ms. Guo Ningning. said that Fujian Province will
introduce its six potential be Indonesia’s entrance to
industrial zones and attract In his remarks, he invited China.
prospective foreign investors. Indonesia and China to
continue to improve this At the Forum, directed by
The Indonesian Consulate cooperation, especially in the the Ministry of Commerce
General in cooperation economic field. According of China and the Provincial
with the Fujian provincial to him, the economies Government of Fujian,
department of commerce, of the two countries can ambassador Djauhari also
also organized an event complement each other, expressed his views on the
‘China (Fujian) - Indonesia given that both countries development and potential
Investment Cooperation are currently experiencing of Indonesia’s digital
Promotion Conference’ and economic growth. economy and e-commerce
attended by around 300 cooperation..
6 INVEST Magazine #02 - 2019
iMOMENTS
Indonesia-Australia
Business Summit 2019
The Embassy of the Republic of Indonesia in will also bind the two nations
together.
Canberra, in collaboration with IIPC Sydney and
ITPC Sydney, has organized Indonesia-Australia The Governor of New South
Wales (NSW) also shared
Business Summit 2019.
the same remark. “Indonesia
is an important partner for
Held on September 19 at speech was delivered by the Australia. This partnership
Sydney InterContinental Chairman of the Indonesian has been going on since the
Hotel, Australia, IABS Investment Coordinating 17th century.
2019, which was officially Board (BKPM) via video
opened by the Indonesian conferencing. During the panel discussion,
Ambassador to Australia, Y. BKPM explained that
Kristiarto S. Legowo, and In his brief remarks, Indonesia desperately
the Governor of New South Ambassador Kristiarto needs to upgrade its human
Wales, Australia, Margaret Legowo emphasized on resources skills and this was
Beazley AO QC, raised the Indonesia-Australia bilateral a real opportunity. IACEPA
theme “IA- CEPA: Capitalizing relations. He believes which was signed in March
Partnership, Gaining Mutual that IACEPA signing will 2019 will hopefully create
Benefits.” be the foundation of this business cooperations.
increasingly close and Indonesian and Australian
There were at least 250 mutually beneficial bilateral education providers have
participants consisting of economic cooperation. The begun to work together
government officials, the agreement will not only to improve technical skills
academics and business cover trade and investment according to the standards of
partakers. The keynote in education and training, but the two countries.
INVEST Magazine #02 - 2019 7
iMOMENTS
The 16th
China-ASEAN Expo of 2019
Indonesia has the honor of being a Country of to fear, but it something
we can use or exploit.
Honor for the second time at the 16th China –
Just like in real life, you
ASEAN Expo 2019 event held on September 22, can’t always run at high
2019 in Nanning, China. speed,” he explained.
Thomas added that in the
last 5 years there was an
increase in the investment
ecosystem in Indonesia,
marked by the escalated
ranking of Ease of Doing
Business.
We can stay optimistic that
there will be improvements
in the investment climate
after President Jokowi
announced a new cabinet.
Furthermore, Thomas also
conveyed that, amidst
Indonesian Delegation was Investment Promotion reduced US Dollar liquidity,
led by the Coordinating Agency, we must respond we need ASEAN members
Minister for Maritime Affairs, to the trend of slowing leadership to start using
accompanied by the down as a commonplace other currencies for trade,
Trade Minister and BKPM in the global economic tourism and investment
Chairman. On the sidelines cycle. This is the right transactions.
of events, BKPM Chairman time to make reflections,
The series of the 2019
delivered a speech at 3 corrections, and
CAEXPO events expected
separate forums including improvements. One of the
to be the momentums
“Roundtable Meeting on tasks of the promotion
for increasing trade,
Investment Cooperation”, agency is to assure business
investment and tourism
“Indonesia Trade and partakers that investment
relations in ASEAN. At
Investment Forum”, and opportunities are still wide
present, China is the
“RMB Internationalization open, particularly in the
third largest investor in
and ASEAN Local Currency technology and digitization
Indonesia with a total
Settlement Forum.” sector.
investment reaching 12.1
BKPM Chairman Thomas “The economy slow down billion USD in the first
Lembong said that as an is not something we have Semester of 2019.
8 INVEST Magazine #02 - 2019
iMOMENTS
China International
Import Expo
The 2nd China International Import Expo (CIIE) and beverages, swallow bird
nests, palm oil, coal, services
2019 was held November 5-10, 2019 at the
and medical equipment.
National Exhibition and Convention Center
Shanghai, China. Under the theme of “New On the sidelines of the 2nd
CIIE, The Ministry of Trade
Era, Shared Future,” attracted more than also held an Indonesia-
500,000 domestic and overseas buyers. China Business Forum on
November 6, 2019. What
was raised at this forum was
This year, Indonesian for recycled plastic seed
the hopes of entrepreneurs
delegation was lead by The products, swallow bird nests,
to increase cooperation
Minister of Coordinating oleo chemicals, and coal.
between the two countries to
for Maritime Affairs and
Indonesian Pavilion itself support the improvement of
Investment, H.E. Luhut
occupies an area of 136 m² Indonesian products in China.
Binsar Pandjaitan as the
Special Envoy of the in Hall 5.2 and feature booths
Attended by Indonesian
Republic of Indonesia and of the State Gas Company,
Ambassador for China,
Minister of Trade, H.E. Agus Indonesia Investment
H.E. Djauhari Oratmangun,
Suparmanto. At the 2nd CIIE, Coordinating Board (BKPM),
Director General of National
Indonesia has managed to and PT Astra International.
Export Development, Mr.
record a transaction value Indonesian products that
Dody Edward, and the
of US$ 4.1 billion, which are being exhibited in the
Consulate General of the
transaction came from the 2019 CIIE among others
Republic of Indonesia
signing of Memorandum are electronics, automotive,
Shanghai, Mr. Deny W. Kurnia.
of Understanding (MoU) garments, accessories, food
INVEST Magazine #02 - 2019 9
iMOMENTS
Business Forum on
Furniture Industries
Furniture industry is one of President Jokowi’s priority sectors
to create jobs, increase exports, and reduce the trade deficit.
On Tuesday, November 5, an abundant supply of the the center for Indonesia’s
2019, BKPM held ‘Business industry’s raw materials. furniture.
Forum on Furniture Indonesia also one of the
Industries’ (BFFI) at Bidakara largest rattan producers in BFFI is the follow-up of
Hotel, Jakarta. Around the world. the working visit of BKPM,
60 domestic and foreign Industry Ministry, Indonesian
furniture businesspeople, The determination of Central Furniture and Crafts Industry
including from Shandong Java as the location for the Association, and Indonesian
Province, China, attended furniture industry’s cluster Furniture and Handicraft
this business forum. was based on the magnitude Industry Association to
of its production forest, its Guangzhou Province, China,
Investors that have been availability of skilled human on October.
affected by the US-China resources, and its developed
trade war are the target infrastructures. Moreover, the series of
of Indonesia’s furniture CJIBF event was followed
industry, and these investors Indonesia needs to develop by site visits to some
are expected to partner up its furniture industry, potential locations for the
with the local Micro, Small considering that the export furniture industry cluster in
and Medium Enterprises value of furniture was still Central Java (Pemalang and
(UMKM), or to take part in the low, around USD 1.69 billion. Kendal). BKPM will actively
industry’s supply chain. This cluster would develop assist the investment plan
the industry from upstream and realization on furniture
Indonesia has the potential to downstream and will also industry in
to be the world’s largest be expected to become Indonesia
furniture producer, as it has
10 INVEST Magazine #02 - 2019iMOMENTS
NextICorn
International Summit
This summit brought together more than a
hundred curated local tech startups and global-
scale venture capitals across the globe.
NextICorn actively importance of startups Indonesia. To achieve this,
streamlines and promotes as the ‘new heroes’ of the government has to
Indonesia’s most investable economic growth and catch up and take the lead
startups to the most therefore has programs to understand and regulate
capable investors around to promote the rise of new models of work so
the world. This year, the startups by providing funds that the startups can grow
NextICorn International from the pre-startup stage in a favorable environment.
Summit was successfully until the post-startups or
held at Jimbaran Hub, Bali, incubations. Through the summit, it is
on 14-15 November 2019. expected that potential
Deputy Chairman for local investors can gain a
This summit brought Investment Promotion better understanding on
together more than a highlights the importance investment in startups and
hundred curated local tech of investment in digital that local governments can
startups and global-scale economy to boost regulate better policies for
venture capitals across investment partnering the development of the
the globe. Ministry of with SMEs and ensure an startups.
Research and Technology evenly-distributed first-class
acknowledges the investment throughout To strengthen the startup
ecosystem, related
ministries and agencies
have to work together to
advocate and ease the
access for startups to
potential investors and
other related stakeholders.
A strong ecosystem will
eventually become the
foundation for Indonesian
digital economy, and
transform local startups
into global players.
INVEST Magazine #02 - 2019 11iMOMENTS
BKPM Promotes Indonesia in
Bloomberg New Economy Forum
Indonesia was invited to the series of Bloomberg Indonesia’s ranking in the
Ease of Doing Business
NEF 2019 activities with the theme ‘Building Asia: (EODB) and investment
Spotlight on Indonesia and Its Next-Generation realization.
Industries and Talents’
“We expect a quality
investment that can
One of the efforts made is to Ambassador of the develop a partnership with
utilize the 2019 Bloomberg Republic of Indonesia to local MSMEs. Therefore,
New Economy Forum (NEF) the People’s Republic of we focus to oversee and
at the Beijing Yanqi Lake China and Mongolia Djauhari accelerate the realization of
International Convention Oratmangun explained large investments and form
& Exhibition Center (ICE), a number of investment a Task Force to facilitate
Beijing, China which policies under the leadership constrained investors,” he
attended by more than 500 of President Joko Widodo said.
government, political and will provide greater certainty
business leaders. Guided by for investors. The Ambassador explained
Haslinda Amin, Indonesia that the EV sector is
was invited to fill one of Director of Investment currently in demand by
the breakout sessions with Planning for Services and a number of Chinese
the theme “Building Asia: Zones of BKPM Nurul investors. “The plan of
Spotlight on Indonesia Ichwan said the policies Chinese investors to open
and Its Next-Generation currently support economic the EV/hybrid industry will
Industries and Talents”. growth through improving certainly attract even more
investment in the battery
industry, considering that
nickel resources very
abundant in Indonesia,”
added Nurul.
As one of the participants,
Founder of Traveloka Ferry
Unardi said the development
of digital economy in
Indonesia is very significant,
not only travel and
e-commerce but also
education and health.
12 INVEST Magazine #02 - 2019iMOMENTS
MoU Signing BKPM-Hyundai
Hyundai Motor Company (HMC) has announced their investment plan of
USD 1,549 Billion (IDR 21.8 Trillion) in Indonesia.
Hyundai will begin
production in 2021, with
capacity of 70,000 to
250,000 units per year
including electric cars
going forward. Hyundai
investment can provide a
high added value to the
Indonesian economy,
absorbing 3.500 workers,
developing training centers,
research and development
of electric cars.
This announcement was The signing was part of the
One of the reasons
validated through the President of the Republic
Hyundai will operate in
signing of a Memorandum of Indonesia’s visit to the
Indonesia is because the
of Understanding (MoU) Factory HMC in Ulsan,
country has nickel ore
between the government and South Korea on November
raw material used for
the HMC signed by the BKPM 26, 2019. The investment is
Lithium-ion batteries as
Chairman Bahlil Lahadalia and planned to be carried out
an important component
the President & CEO of HMC through two stages, namely
of electric vehicles.
Won Hee Lee, and witnessed in 2019-2021 and 2022-
Nowadays, there has
by the President of the 2030.
been already a number
Republic of Indonesia Joko
In the first phase, Hyundai of companies developing
Widodo, the Coordinating
will focus on investing in the battery industry for
Minister for Maritime Affairs
car manufacturing plants electric cars, for instance in
and Investment Luhut Binsar
and will export at least 50% Morowali.
Pandjaitan, Coordinating
Minister for Economic Affairs of total production. The
Several electric vehicle
Airlangga Hartarto, Minister second phase will focus
battery manufacturers from
of State Secretary Pratikno, on developing an electric
East Asian countries are
Minister of Industry Agus car manufacturing plant,
now being approached by
Gumiwang Kartasasmita, transmission plant, research
Indonesia Government to
Minister of Trade Agus and development (R&D),
build a production facility
Suparmanto, and Minister of training centers, and will
and make Indonesia as a
Foreign Affairs Retno Marsudi. export 70% of the total
global production center
production.
for electric batteries.
INVEST Magazine #02 - 2019 13INDONESIA INVESTMENT PERFORMANCE
(2019 Q3)
INVESTMENT REALIZATION (JANUARY-SEPTEMBER 2019)
has reached IDR 601.3 T or 75.9% of the 2019 investment target of IDR 792 T.
IDR 601.3 T IDR 205.7 T
in 2019 Q3
Total
investment
realization in Rose
2019 Q3, from
by
18.4%
the IDR 792 T
(target in 2019) IDR 173.8 T
in 2018 Q3
INVESTMENT REALIZATION INVESTMENT REALIZATION
(JANUARY-SEPTEMBER 2019) (JANUARY-SEPTEMBER 2019)
BASED ON SECTORS BASED ON REGION
Rp 253.3 T Rp 330.2 T Java
Other
(42.1%) (55.0%)
Realization
Transportation,
warehouse and Rp 111,1 T based on region Rp 113.9 T
Sumatera
telecommunication (18,5%) in January – (19.0%)
September 2019
Electricity, period, the highest Rp 63.4 T
Gas and Rp 95,9 T Kalimantan
Water Supply (16,0%) realization of DDI (10.5%)
and FDI is located
in Java island. The
Construction Rp 48.9 T Rp 48.8 T Sulawesi
(8.1%) Transportation, further ranks of (8.1%)
warehouse and realization of the DDI
Housing, telecommunication are is in Java, Sumatera,
Industrial Estate Rp 47.4 T Rp 24.9 T Maluku and Papua
and Office (7.9%) still the sectors with Kalimantan, Sulawesi, (4.1%)
Building the highest investment Bali and Nusa Tenggara,
realization in the and also Maluku and
Rp 44,7 T Rp 20.1 T Bali and
Mining January-September Papua regions. The further Nusa Tenggara
(7,4%) (3.3%)
2019 period with an ranks of realization of the
investment value FDI is in Java, Sumatera,
reaching IDR 111.1 T or Sulawesi, Maluku and Papua,
18.5% of the total sector Kalimantan as well as Bali and
investment realization. Nusa Tenggara regions.
14 INVEST Magazine #02 - 2019INDONESIA INVESTMENT PERFORMANCE
(2019 Q3)
BASED ON LOCATION (JAN - SEP 2019)
Based on locations,
investment realization in
West Java ranks first with a
total investment reaching
IDR 102.1 T followed by DKI
Jakarta (IDR 95.6 T), Central
Java (IDR 47.2 T), East Java
(IDR 46.8 T) and Banten
(IDR 33.8 T) in the current
Special
January-September 2019
Territory Central period.
Others West Java of Jakarta Java East Java Banten
Rp275,8 T Rp 102,1 T Rp 95.6 T Rp 47,2 T Rp 46,8 T Rp 33,8 T
(45,9%) (17,0%) (15,9%) (7.8%) (7,8%) (5,6%)
INVESTMENT REALIZATION IN JANUARY – SEPTEMBER 2019 :
BASED ON COUNTRY OF ORIGIN
Others
Singapore
US$ 5.5 B
US$ 5.4 B
Realization of investment in (25.9%)
(25.5%)
the January-September 2019
period still puts Singapore in
Hong Kong
the first position with a total US$ 1.7 B China
investment reaching $ 5.4 M. (8.0%) US$ 3.3 B
Netherlands (15,6%)
China P.R. came second ($
US$ 2.1 B Japan
3.3 M), followed by Japan ($ (9,9%) US$ 3.2 B
3.2 M), the Netherlands ($ 2.1 (15.1%)
M), and Hong Kong, China ($
1.7 M).
INVEST Magazine #02 - 2019 15iKNOW
Achieving success
from the bottom
The wheel of life is always spinning. If we don’t
keep moving, we won’t ever reach the top. Being
born in a simple working-class family did not
dampen the spirit of Bahlil Lahadalia to achieve
his success.
The man who was born on In the mining sector, he had
August 7, 1976 was appointed successfully managed
by President Joko Widodo 39,000 hectares of coal
to occupy an important mining in Fak-Fak,
position as Chairman of West Papua, and
Indonesia Investment 11,000 hectares
Coordinating Board (BKPM). of nickel
Due to his major in business mining in
background, Bahlil was Halmahera.
appointed to represent While, in
professionals at BKPM.
construction,
Not many people know PT Bersama
about Bahlil before he Papua Unggul which he
occupies this position. But owns had won a number of
certainly, the company Bofuer-Windesi (MYC) road
he had managed have construction projects with
been operating in several the Ministry of PUPR. The
sectors: plantations, same success had been
property, logistics, mining, achieved by PT Dwijati
and construction. He also Sukses, whose name is often
led several companies like seen on government project
PT Rifa Capital, PT Dwijati auction sites.
Sukses and PT Bersama
Papua Unggul. PT Rifa THE KEY TO BUSINESS
Capital is a holding of 10 SUCCESS
companies, including PT Before becoming the
Ganda Nusantara, PT MAP Chairman of BKPM, Bahlil
Surveillance, and PT Pandu had been the Chairperson of
Selaras. the Central Managing Board
16 INVEST Magazine #02 - 2019iKNOW
(BPP) of the Indonesian
Young Entrepreneurs
Association (HIPMI) since
2015. Bahlil had went
through a long-life journey
before finally achieving
his business success. He
suggested three things to
succeed in business: being
smart, hard-working, and
confident.
Intelligence is not only in
terms of science, but also
in seeking opportunities, mother worked as a washer
by taking advantage of woman.
BAHLIL LAHADALIA
opportunities that come
your way, and being Before having success in Birthdate & Birthplace :
able to convince others. his grasp, he had tried a Banda, August 7, 1976
According to Bahlil, there number of professions
from selling cookies at EDUCATION :
are characteristics that all
entrepreneurs must have: school to financially aid his Bachelor's Degree from Port
hard work, persistence, family to finally becoming Numbay Higher Education of
and firm belief. a conductor and driver Economics, Jayapura, Papua
of a public transportation
BEING A Master's Degree from
during his teenage years.
CONDUCTOR Financial Management of
To make a long story short,
AND A DRIVER Cendrawasih University
due to his hard work and
OF PUBLIC earnest effort, Bahlil finally ORGANISATION :
TRANSPORT managed to register at Papua
Bahlil began his Chairman of BPD HIPMI
Port of Numbay School of
success from the Papua (2008)
Economics.
bottom. For him, Head of Infrastructure and
success without With great determination and BPP HIPMI Properties (2011-
hard work is confidence, he was able to 2014)
impossible. change his destiny. Bahlil was
even able to realize his ideals. Chairman of BPP HIPMI
Growing up from
“I came from and grew up in (2015-2019)
a working-class
family, he had limitations. But I proved that CAREER :
to fight for his I could achieve what I had
Commissioner of PT Rifa
dreams and dreamed of. We need to
Capital, Holding Company
ideals. Bahlil’s understand that the people
which is in charge of 10
father used to be who survive are those with
Companies
a construction great confidence,” he said.
worker, while his Head of BKPM (present)
INVEST Magazine #02 - 2019 17iOUTLOOK
BKPM’s
‘Red Carpet’
Strategy
The Investment Investors are highly eager SIMPLIFYING LICENSING
to invest in Indonesia. REGULATIONS
Coordinating Board
Unfortunately the realization Therefore, investments will
(BKPM) is preparing shows otherwise. Seeing this not be made complicated
a surefire strategy of unsatisfactory realization, nor will it be taken for
welcoming investors the Head of the Investment granted. Bahlil had prepared
Coordinating Board (BKPM) six moves or strategies. The
who are willing to Bahlil Lahadalia seeks first step is improving the
invest in Indonesia to ensure investors are ranking of Ease of Doing
with a “red carpet.” welcomed by a ‘red carpet’ Business in Indonesia.
when they invest here. According to the Doing
18 INVEST Magazine #02 - 2019iOUTLOOK
Indonesia
is targeted
to be in the
top 50 of the
World Bank’s
Business Ease
of Business
ranking.
Business of 2020 report became a homework for There are foreign
released by the World Bank the government to provide investments that face land
in late November 2019, the stimulus in order to attract use constraints of a IDR
ranking of ease of doing investors to Indonesia 264.3 trillion-value, namely
business in Indonesia is still in and be considered as an 2 companies in Banten and
the 73rd position. attractive foreign investment 1 in East Java. Others face
destination. regional regulations worth
In 2018, Indonesia’s ranking
IDR 21.3 trillion in Southeast
also rose significantly by 19 The second step or stance Sulawesi and North Maluku.
ranks to the 72nd position. to strengthen investments
Indonesia is targeted to be in is through the execution There are investments
the top 50 of the World Bank’s of stalled and constrained worth IDR 190.2 trillion
Business Ease of Business large investments in the field. which are constrained by
ranking. Elevating the Ease Accelerating licensing at an recommendations and
of Doing Business (EoDB) area is one of the strategies technical permits in several
rank, which had dropped, to attract investors. regions. Meanwhile, IDR 1.6
trillion worth of investment
is constrained by the State-
Owned Enterprises (SOEs)
business-to-business, IDR
3.3 trillion is constrained by
other issues, and IDR 226.5
trillion is constrained by fiscal
incentives.
To overcome these licensing
constraints, Bahlil also
promised to do inventory
and revise regional
regulations that hamper
INVEST Magazine #02 - 2019 19iOUTLOOK
be targeted at European,
East Asian and Middle
Eastern countries. While
the investment for the
development of human
resources is more likely to
be targeted at Australia and
America.
The last step is inviting
domestic investors to
face the global economic
slowdown. “We also have
to strengthen domestic
investments. He will also no longer confined in Java. investors. Investments
prepare a Task Force to assist “Not only is the investment should not only be focused
investors and accelerate the expanded, but it also has on big sectors but also on
realization of investments. first-class quality. There is the MSMEs and medium-
“Whenever an investor has a added value, employment sized entrepreneurs,” he
permit but has not yet built and partnership with local said.
a factory, we will dispatch communities, “said Bahlil. SIMILAR REMARKS
a task force team to help, FROM THE MINISTER
“Bahlil said. The fifth step is to strengthen
OF FINANCE
investment through
In line with Bahlil, Minister
THE THIRD TO THE LAST promotions focused on
of Finance Sri Mulyani
STANCE the sector and investor
Indrawati said that the new
In the Third Stance, he country. For instance, the
government will welcome
will encourage investors focus of investment in
foreign investors, who
to partner with local small the infrastructure sector is
are willing to invest their
and medium enterprises considered more suitable to
capital in Indonesia, with
(SMEs) to create a conducive
ecosystem and climate for
investment. Meanwhile, the
fourth strategy that will be
carried out by BKPM is to
encourage more widespread
first-class investment.
Investment opportunities
will be extended outside
Java. In his presentation
of Indonesia’s investment
figures in the third quarter of
2019, Bahlil explained that
investments for projects are
20 INVEST Magazine #02 - 2019iOUTLOOK
a red carpet. “You (foreign
investors) will not only be
Investment realization in the
coming to our country, but third quarter (2019)reached
you will also be served and
provided with incentives,” IDR 601.3 trillion, while Realization
Sri Mulyani said to the US of Domestic Investment reached
foreign investors who came
at the 2019 US-Indonesia IDR 283.5 trillion and Foreign
Investment Summit at the Investment IDR 317.8 trillion.
Mandarin Hotel in Jakarta
(11/21).
same period in 2018. The
INVESTMENT
Sri Mulyani said that, so far, REALIZATION higher investment realization
the Indonesian government Meanwhile, BKPM had was due to the smooth
had assisted every investor recorded that investment general election last April,
who came in, such as realization in the third quarter and therefore providing a
through tax relief, from tax (2019) reached IDR 601.3 positive climate for investors.
holidays to tax allowances. trillion, while Realization of Bahlil is optimistic that the
She said the various Domestic Investment (PMDN) investment realization target
incentives were being reached IDR 283.5 trillion and this year will be achieved.
reformulated in line with Foreign Investment (PMA) IDR Moreover, the achievements
the government’s attempt 317.8 trillion. between January and
to simplify the investment September 2019 have
permit process and provide This year’s realization is 12.3% fulfilled the 75.9 percent
certainty to entrepreneurs. higher compared to the portion of the target.
INVEST Magazine #02 - 2019 21iOUTLOOK
Maintaining the Role of MSMEs
in the National Economy
Even if they’re not as big as private companies, economy got affected by the
global economic crisis.
Micro, Small and Medium Enterprises (MSMEs)
made a big contribution to the national economy. MSMES CONTRIBUTION
Data from the Ministry of
MSMEs contribution today but also aimed at MSMEs and Cooperatives and Small
cannot be underestimated. medium entrepreneurs. and Medium Enterprises
The rise of e-commerce with (Kemenkop UKM) states that,
its digital economic potential According to Bahlil, MSMEs in terms of the number of
is one of the milestones had historically been known units in 2017, MSMEs has
of the domestic rise of as the savior of the 1998 a share of around 99.99%
small and medium scale national economic crisis (62.9 million units) of the
businesses. when the national inflation total number of business
reached 88 percent, with a 13 operators in Indonesia, while
The Sluggish global percent deficit, and foreign large businesses only have
economic climate has exchange reserves fell to 0.01% or around 5400 units.
pushed the Chairman of the approximately USD17 billion. Micro Business absorbs
Investment Coordinating When many investors fled to around 107.2 million workers
Board (BKPM) Bahlil Lahadalia save their fortune, it was the (89.2%), Small Business
to encourage domestic MSMEs that protected the 5.7 million (4.74%), while
investors for investment national economy. Medium Enterprises absorbs
escalation in the country. 3.73 million (3.11%).
The invitation was not only Bahlil believes that MSMEs
aimed at domestic investors, was considerably significant Meanwhile, in terms of labor
particularly large companies, when the Indonesian absorption, Large Enterprises
22 INVEST Magazine #02 - 2019iOUTLOOK
only absorb around 3.58 In fact, MSMEs can PROTECTING MSMES
million people. This means contribute around 60% of FROM FOREIGN
that, as a whole, MSMEs can the total national Gross INVASIONS
absorb around 97% of the Domestic Product. In In order for the MSMEs to
total national workforce, 2017, Indonesia’s GDP was be the backbone of the
while Large Enterprises only around IDR 13,600 trillion. national gross domestic
absorb around 3%. This means that the total product (GDP), Bahlil stand
MSMEs revenue was around guard over the national
IDR 8,160 trillion! Micro MSMEs growth so that it
Business yearly contributes will not be intervened by
around IDR 5,000,000, Small any foreign investors. The
Business IDR contributes government and the House
1,300 trillion, while Medium of Representatives, according
Business around IDR 1,800 to Bahlil, are currently
trillion, and Large Business discussing the Omnibus Law
around IDR 5,400 trillion. to fix the bureaucracy and
regulations that hamper the
business climate.
The government wishes for
both domestic and foreign
investment to immediately
generate the real sector. “I
asked the Director General
to be very careful, to not
exclude MSMEs from the
vacant list, so that
foreigners will
not be able
to intervene,”
Bahlil said.
INVEST Magazine #02 - 2019 23iTALK
l Farah Ratnadewi Indriani
Deputy Investment
Promotion of BKPM RI
24 INVEST Magazine #02 - 2019iTALK
Making
Highly Qualified
Human Resources
through Tax
Incentives
President Jokowi has issued a regulation
on major tax deductions aimed at boosting
investment, research and development (R&D)
as well as the participation of businesses in
improving Indonesia’s human resources.
INVEST Magazine #02 - 2019 25iTALK
Under Government
Regulation (PP) No. With a bigger incentive,
45/2019 regarding domestic business players are
Calculation of Taxable
Incomes and Settlement of expected to be more interested in
Income Tax in Current Year, doing vocational training, as well
which was issued on June
25 and is an amendment as R&D activities
of Government Regulation
No. 94/2010, taxpayers can
enjoy a tax deduction of up tax. With a bigger incentive, that they are relatively less
to 300 percent. domestic business players skilled compared to other
are expected to be more ASEAN countries. Therefore,
HOW DOES BKPM interested in doing vocational fiscal incentives are needed
VIEW THE SUPER
training, as well as R&D to stimulate the business
DEDUCTION TAX
activities. ‘One of investors’ players to increase activities
POLICY?
concerns on our workers is in training their workers.’
Super deduction tax policy
could help improving the
skills of Indonesian workers.
Currently, there is an urgent
need to improve the skills
of Indonesian workers. The
amount of super deduction
incentive of 200 percent
reflects the critical needs of
domestic industrial players
for skilled workers. Besides,
ASEAN countries in average
have also imposed this 200
percent super deduction
26 INVEST Magazine #02 - 2019iTALK
AND HOW HAVE
INVESTORS RESPONDED We project that investment
TO THE POLICY? during the year 2020-2024 to
Investors have been giving
positive reactions towards the reach Rp 5,745.3 billion with an
super deduction tax policy.
Seeing this, BKPM is optimistic
average of 11.7 percent per year
that the investment realization
target could be achieved. ‘Tourism becomes one players to utilize the super
Investment is inevitably the of the leading sectors in deduction tax policy in
key to Indonesia’s positive investment. We project preparing for competent
economic growth. This is in that investment during the workers in tourism sector.
line with President Jokowi’s year 2020-2024 to reach Investors could also utilize
instructions to all ministries/ Rp 5,745.3 billion with an this incentive to encourage
agencies, which is to open average of 11.7 percent per the creation of highly
the access as wide as possible year.’ Moreover, we also qualified human resources
to facilitate the investments suggest tourism business within that sector.
and to boost exports.
WHICH SECTOR DO YOU
ENCOURAGE TO TAKE
ADVANTAGE OF THIS
POLICY?
The government will offer
the super deduction tax to
investors in tourism sector,
specifically in five high priority
tourism destinations. These
destinations include Toba
Lake, Borobudur, Mandalika,
Labuan Bajo and Likupang.
INVEST Magazine #02 - 2019 2728 INVEST Magazine #02 - 2019
“If we focus on developing our human capital
using the latest ways and means, the demographic
bonus will help us make a significant leap in the
country’s development.”
INVEST Magazine #02 - 2019 29iENERGY
Sidoarjo PLTSa
to Manage Tons of Waste
Accumulation of waste becomes a serious SIDOARJO WASTE
To reduce the garbage that
problem. Not only will it spread an airborne
accumulates in urban areas.
disease, but the piles of waste will also be Several regions will process
hazardous to the surrounding community. waste into electricity, one
of which is in Sidoarjo. Data
Along with the development Waste is categorized from the Department of
of the era and technology, based on several criteria Environment and Hygiene
scientists and researchers which differentiate energy (DLHK) of Sidoarjo Regency
had worked hard to solve substance within each said that in July 2019
the ever disturbing garbage heterogeneous waste. garbage in Sidoarjo reached
issue from year to year. “To equalize these energy 2,400 tons per day. While
Through an environmentally levels, we need to prepare a the garbage processing
friendly technology-based pre-treatment step through installation in Sidoarjo is
management, the waste chopping, blending, drying, only able to accommodate
is managed and utilized as and then pellets formation. around 600 tons of garbage
a renewable energy. It will This requires additional per day.
therefore not only reduce work and equipment. With a
the negative environmental good management, this will Sigit Setyawan, Head of
impact, but will also solve the become a new source of DLHK Sidoarjo, said, “There
energy crisis. income. “ are 1,800 tons of potential
waste per day that has not
been treated by the garbage
30 INVEST Magazine #02 - 2019iENERGY
processing installation
system, both in temporary
landfills (TPS) and in landfills
(TPA) provided by the
government.” To overcome
this waste problem, the
Government of East Java
Province plans to build a
Waste Power Plant (PLTSa).
The construction of the
waste power plant (PLTSa)
will take place in Jabon,
Sidoarjo.
In addition to proposing
complete and operational.
Sidoarjo as an alternative FOR MORE INFORMATION
“As soon as Surabaya signed
location for PLTSa, East Director of Sidoarjo Investment
the PJB (Sales and Purchase
Java Deputy Governor Emil Agency and Integrated License Service
Agreement with PLN), I
Dardak said the provincial +628123253303
will immediately notify the
government was also a.suryono1975@gmail.com
governor and will follow it
reviewing several other
up,” Emil said.
locations to become PLTSa
development sites, including: INVESTMENT IN PLTSA Technology Assessment
Lamongan, Pasuruan, The development project and Application Agency
Malang, Jember, and Gresik. of the Department of (BPPT) Hammam Riza
Environment and Sanitation gave an explanation on the
The selection of regencies of Sidoarjo Regency aims to technology in PLTSa.
and cities is adjusted to manage waste into electricity
the amount of waste, He said, “The PLTSa Pilot
and control the volume of
priority scale, and regional Project uses thermal
waste in Sidoarjo. With the
affordability. The step of technology with an
status of the land that has
assessing several cities as incineration type with
been prepared by the local
PLTSa construction sites a reciprocating grate
government, this PLTSa
is carried out in order to type furnace. It was a
project has an estimated
minimize the amount of technology which has been
investment value of US $
waste in the province. In proven and widely used
93.8 Million and a BOT (Build
addition, these regions can worldwide in terms of Waste
Operate Transfer) business
contribute to the national to Energy (WtE) conversion.
scheme with a concession
electricity supply sold to PLN It’s also environmentally
period of 30 years.
(the State Electric Supply friendly (equipped with
Company). Before the construction of pollution control devices),
PLTSa, comparative studies economical, and applicable
The PLTSa construction will had been conducted in for waste conditions in
begin once the construction several countries, from Japan Indonesia, and has a high
of the Surabaya PLTSa is to Scandinavia. Head of the potential of TKDN.
INVEST Magazine #02 - 2019 31iENERGY
dioxins and furans can be
minimized.
Hamman explained that the
heat which was carried by
the exhaust gases resulting
from the combustion of
garbage, is used to convert
water in a boiler to steam
to turn a turbine to produce
electricity. The PLTSa unit
is also equipped with an Air
Pollution Control unit to clean
up hazardous substances
PLTSa has 4 main equipment carried in the flue gas, so the
FOR MORE INFORMATION consisting of a bunker as a flue gas that comes out meets
Subsection Head of Promotion garbage container, equipped the quality standards set.
+6281354081339 with a platform and grab
niez9918@gmail.com This waste-to-electricity
crane as well as combustion
grate combustion chamber processing facility has a waste
system, designed to burn processing capacity of 100
trash with temperatures tons/day and is expected to
above 850 degrees Celsius be able to produce 750 kWh
so that the formation of of electricity per day.
32 INVEST Magazine #02 - 2019iENERGY
Harnessing Energy
from The Earth’s Core
Indonesia’s geographic location within the Megawatts of electricity
tectonic plate and the equator contributes to (MWe) with reserves of
around 17,506 MWe.
its large energy reserve, including geothermal
Geothermal power station,
energy. a 250 kW Monoblock, in
Indonesia was first developed
The Indonesian government energy potential in the world
in 1978 at Kamojang Field,
targets to accomplish a and geothermal energy
Garut, West Java.
23% renewable energy exploration has not been
mix by 2025 which will be fully maximized. TIME TO OPTIMIZE
continued to be increased GEOTHERMAL ENERGY
up to 31 percent until 2050. According to data from
Amidst the transition of this the Ministry of Energy and The abundance of East Java
renewable energy use, a lot Mineral Resources (ESDM), region geothermal energy
of people are still unaware Indonesia’s geothermal has motivated the Provincial
that Indonesia has the largest resources have a total Government to optimize the
geothermal renewable potential of around 11,073 potential of this renewable
INVEST Magazine #02 - 2019 33iENERGY
energy to meet the daily mix targeted at 14 percent by that there are 8 Geothermal
increasing energy needs. 2050,” said Khofifah. Working Areas (WKPs),
This was mentioned by including: Mount Lawu,
the Governor of East Java She added that the highest Arjuno Welirang, Blawan
Khofifah Indar Parawansa electricity consumption in ijen, Mount Iyang-Argopuro,
who said that geothermal East Java in 2018 was held Mount Pandan, Mount
energy will likely be a by the industrial sector, Wilis, Songgoriti, and Telaga
mainstay of East Java. which reached 15,668 GWh, Ngebel.
followed by households by
The 1,012 MWe geothermal- 13,181 GWh, trade/business Of the 8 WKPs determined,
energy potential is scattered by 4,751 GWh, and the four of them are in East Java
around Mount Welirang, society by 2,238 GWh. Province. In early 2019,
Mount Wilis, Mount Ijen and the East Java Provincial
several other mountains.
SERIOUS STEP Government took a serious
“Geothermal energy is an Based on the Book of step by establishing the
environmentally-friendly ‘Indonesian Geothermal Regional Regulation on the
renewable energy which Potential of 2017’, the General Design of Regional
will become a mainstay to Ministry of Energy and Energy (RUED) in 2019-
meet the East Java energy Mineral Resources states 2050. Therefore, the East
34 INVEST Magazine #02 - 2019iENERGY
Java Provincial Government
has opened its doors wide UTILIZATION OF GEOTHERMAL ENERGY
for investors who would
Then, what are the benefits refined fragrant root oil, and
like to explore the potential
of this geothermal energy? so on.
geothermal energy as a
First, this energy can be
renewable energy. Please note, the 2017 Non-
used directly for electrical
energy. It is also used in Tax State Revenue (PNBP) of
Khofifah said that East
the fields of agro-industry, the geothermal sub-sector
Java RUED-P 2019-2050
industrial processes and had contributed IDR 928.55
is very important due
tourism, such as hot water billion in mid-November. The
to the provincial energy
baths, mushroom cultivation, amount has exceeded 38%,
management policy.
potatoes, tea drying, palm from the 2017 PNBP target of
Moreover, RUED-P is a cross-
sugar production processes, IDR 671.26 billion.
sectoral implementation of
the National Energy General
Plan (RUEN).
INVEST Magazine #02 - 2019 3536 INVEST Magazine #02 - 2019
"According to data from the Ministry of Energy and
Mineral Resources (ESDM), Indonesia's geothermal
resources have a total potential of around 11,073
Megawatts of electricity (MWe) with reserves of
around 17,506 MWe"
INVEST Magazine #02 - 2019 37iBUILD
The Focus on East Java
Infrastructure Development
The lack of infrastructure is often a problem These three projects include:
the construction of the
that hinders investment in the country
Electric Railway (KRL), the
tourism transportation, and
The government realizes The Government has the development of an
how important and vital therefore synergized with all oil refinery in Tuban. East
infrastructure is to the Provincial Governments to Java Governor Khofifah
growth of the investment complete the development Indar Parawansa said that
climate in Indonesia. A good of a number of infrastructure the provincial government
infrastructure will certainly that will benefit the will focus on the three
boost investment and makes community, including the big projects in order to
business more attractive. three leading projects in East accelerate East Java’s
However, the development is Java determined by President economic development.
not an easy task. Jokowi in early July.
38 INVEST Magazine #02 - 2019iBUILD
CONNECTIVITY ENERGY TOURISM
INFRASTRUCTURE
The first project in East Java The next strategic project
is the construction of the Another project that is being is the development of the
Gerbangkertasusila Electric accelerated is the Pertamina Bromo-Tengger-Semeru (BTS)
Rail line (Gresik-Bangkalan- oil Grass Root Refinery (GRR) tourism area which covers the
Mojokerto-Surabaya- in Tuban. The USD 16 billion areas of Malang, Probolinggo,
Sidoarjo-Lamongan) which megaproject which stands on Lumajang, Pasuruan. In
is on the main route of the a 900-hectare land is one of addition to road infrastructure,
East Java industry. The rail the prestigious and strategic the Provincial Government
line will later support the projects in the country also focuses on developing
efficiency of goods and built for national energy tourism transportation such as
service distribution while sovereignty. the Bromo-Tengger-Semeru
stimulating the regional cable car (BTS).
economy through integrated Tuban GRR, which is
developed through a The construction of these
transportation modes.
cooperation scheme supporting facilities will
The development of between Pertamina and the certainly make this tourist
the integrated public Russian company, Rosneft Oil destination more attractive as
transportation of Company, is one of the most tourists previously had to go
goods and services in sophisticated refineries in through a fairly narrow and
Gerbangkertasusila will later the world with a processing steep road. Khofifah said good
support the next strategic capacity of 300 thousand road access would bring more
projects, such as the oil barrels per day which will tourists to East Java.
refinery in Tuban Regency produce 30 million liters
“That’s not all, we also
that will be built next year. of gasoline and diesel per
have prepared a lot of
The construction of the day. The Tuban refinery will
transportation options to and
Electric Rail line will also also produce 4 million liters
from BTS. We are currently
support the development of aviation fuel per day,
developing Malang-Kepanjen
of oil refineries in Tuban including 4.25 million tons
toll road, dredging the
which requires a good of petrochemical production
docks at the Port of Tanjung
transportation system. per year.
Tembaga for harboring cruise
Khofifaf, Governor of PT Pertamina’s President ships, widening the Dampit-
East Java, admits that Director Nicke Widyawati Lumajang road segment,
the realization of this targets the construction of and internationalizing
infrastructure in East Java the refinery and port to be Abdulrahman Saleh
Province was indeed a bit completed by 2026. This Airport,"said Khofifah.
late. “We are preparing mega project is realized
Just for the record, foreign
a public transportation based on the Minister
tourists visiting East Java
that will facilitate regional of Energy and Mineral
through Juanda Airport in
connectivity, and that’s Resources Decree No. 807K /
March 2019 increased by
why we need a major road 12 / MEM / 2016 dated March
22.80 percent compared
construction in eastern 3, 2016 and Presidential
to February, from 17,561 to
Surabaya,” said Khofifah. Regulation No. 56 of 2018.
21,565 visits.
INVEST Magazine #02 - 2019 39iBUILD Regional Infrastructure Potential and Solutions East Java Province is developing. The Central Statistics Agency (BPS) noted that the province’s economic growth continued to increase at 5.50% in 2018 and 5.51 in Quarterly I of 2019 The increasing economic continues to focus on Strategic Area, which is growth in East Java was developing infrastructure part of the three focused in line with the number of within its regions, particularly provincial infrastructure tourist arrivals at the leading in strategic tourist areas. development, has made destinations in East Java. the Malang Regency Therefore, the East Java Bromo-Tengger-Semeru Government seriously work Provincial Government (BTS) National Tourism on the supporting facilities 40 INVEST Magazine #02 - 2019
iBUILD
and infrastructure. This BTS SINGOSARI FLYOVER National Road, Malang
area is also known as one of INVESTMENT Singosari Special Economic
the ten new Bali areas. Zone, and Bromo
To reduce the heavy Tengger Semeru Tourism
SYNERGY IN THE traffic congestion that Destinations.
DEVELOPMENT always occurs at the area,
the Malang Regency It is planned that the
Accelerating the growth
Government has prepared flyover, which is located on
of the tourism industry,
a Singosari Flyover Surabaya-Malang Primary
agropolitan, and
development plan as one Arterial Road (Singosari
strengthening connectivity
of the accesses to the Malang Highway), will
are the main focus for BTS.
Singosari Special Economic have an investment value
Meanwhile, for the Selingkar
Zone (SEZ). Singosari SEZ of IDR 175.8 billion with a
Wilis region, the focus is
is part of the economic Public-Private Partnership
on increasing the added
development within Malang (PPP) funding scheme. The
value of agro-industry and
region which is strategic realization of the project
agro-tourism as well as
for the national economic will immediately contribute
strengthening infrastructure
development. to the acceleration of the
connectivity.
development of other
Singosari Flyover will infrastructure within
Malang has been known
later facilitate access to Malang and its surrounding
as a tourist destination
various places, such as areas
with various interesting
Malang Abdul Rahman
attractions. To improve the
Saleh National Airport,
economy and progress
Pandaan-Malang Toll Road,
of the region, we need a FOR MORE INFORMATION
Surabaya-Malang Arterial Tomie Herawanto
structured infrastructure
Chairman of Planning Board of Malang
development which is
Regency
connected to a number Mobile: +628121720 5794
of national strategic areas
within the region.
The increased population
has an impact on the
activity and mobility of
the people of Malang.
This certainly results in
the increasingly high
traffic congestion in prone
areas, as is often the case
around the railroad track to
Singosari Market.
INVEST Magazine #02 - 2019 41iBUILD
Legok Nangka Solid
Waste Treatment
Data in 2016 showed that the garbage load at ton) in which 30 percent will
be subsidized by the West
Sarimukti TPA had reached 3,000m3 / day. This
Java Provincial Government.
had started to saturate Sarimukti TPA. So, what This is important for the
are the steps taken by the Government of West success of the project
Java Province so far? auction.
A higher population will Legok Nangka was chosen It was also agreed that the
impact the number of the after a feasibility study by quota of waste will be sent
generated waste in West experts. After the landfill by six regencies/cities using
Java. The right steps and completion in 2017, the Legok Nangka TPPAS. They
policies are required to better Ministry of PUPR then built are Bandung City 1,200-
manage the waste. a waste treatment plant 1,303 tons per day, Cimahi
in 2018. The West Java City 150-250 tons per day,
The high volume of waste Provincial Government will Bandung Regency 300-345
produced by the people then operate the TPPAS tons / day, West Bandung
of West Java, particularly Legok Nangka by 2023. Regency 78-86 tons / day,
in Bandung City, Bandung Sumedang Regency 28-32
Regency, Cimahi, West With a land area of 74.6 ha tons / day, and Regency
Bandung Regency, and a total area of 90 ha, Garut 100-115 tons / day.
Sumedang and Garut made Legok Nangka TPPAS is able The total amount of waste is
the West Java Provincial to accommodate 2,000 tons therefore around 1,853-2,131
Government take the of waste / day and is able to tons per day.
initiative to establish a new process 1,820 tons / day of
region of Waste Processing waste generated from the six Legok Nangka TPPAS should
and Final Processing Site regions of West Java. Later, not be solely relied on,
(TPPAS) which has greater Legok Nangka TPPAS will and therefore West Java
capacity to solve the waste expectedly become one of Governor Ridwan Kamil
problem. the largest waste-to-energy asked the Regency/City
centers in West Java. It’s also Governments to keep on
Moreover, the Baj Bajing part of the national strategic trying to reduce the volume
TPA, according to plan, project. of waste from time to time.
will no longer operate. For He also promised to provide
this reason, the West Java West Java’s six municipalities incentives for the ones
Provincial Government took and regencies recently who managed to reduce
the initiative to establish agreed on the amount of waste. “We are preparing a
Legok Nangka TPPAS to help Legok Nangka TPPAS tipping Governor Regulation that will
each region solve the waste fee of USD 27.38/ton (or provide incentives to regions
problem. equivalent to IDR 386,000/ that have succeeded in
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