Business Media Selected for You: Week 1-7 Jan 2018
15 January 2018
Port operators gear up for brighter outlook
Indonesia's port and shipping players are bracing for a take-off in their respective business sectors banking on increased international trade activity as well as domestic economic activity.
Pelindo II is to become a transshipment port in the next few years, tapping into more international container delivery to the Tanjung Priok port. There are plans also to develop the Kijing port in West Kalimantan, as well as the Cikarang Bekasi Laut (CBL) Inland Waterways in West Java providing an alternate means of transportation connecting the Tanjung Priok port and industrial estates in Cibitung, Cikarang and Karawang through an inland waterway network using barges. Construction for both projects are slated to commence in the first half of 2018.
Pelindo I recorded a 32.46% increase yoy in cargo traffic from the previous year and is targeting to pocket IDR 3 trillion (USD 225 million) in revenue for 2018.
Indonesia to monetize infrastructure projects
The Coordinating Economic Ministry (Kemenko Perekonomian) plans to monetize a number of infrastructure projects (including airports) through the Limited Concession Scheme (LCS). Under the LCS, existing infrastructure will be offered to investors and granted as operational concessions.
Energy and Natural Resources
World Bank provides soft loan for geothermal exploration
The World Bank is to provide a soft loan of up to USD 600 million with a 1.5% interest rate to finance geothermal exploration in Indonesia. This comes amid difficulties faced by private renewable developers in Indonesia in financial support from domestic banks, which tend to provide short-term loans with relatively high interest rates of 12%.
More companies to enjoy biodiesel subsidy
The Government plans to expand the scope of its biodiesel subsidy to businesses operating outside its public service obligation program, starting in May 2018.
Pertamina to improve work plan
The Government has given Pertamina until the end of January to improve its work program and budget proposals for 4 oil and gas blocks, failing which the blocks will remain with their current operators. In January 2017, the Ministry of Energy and Mineral Resources (MEMR) mandated that Pertamina take over 8 oil and gas blocks which would see their contracts with their current operators expire in 2018. At the time, the MEMR gave 4 of the operators the opportunity to submit proposals to extend their operatorship. Pertamina has stated it is open to jointly operating the blocks with other contractors controlling majority stakes in the blocks.
New bonds regulation set to boost infrastructure
The Financial Services Authority (OJK) has simplified the procedure for selling bonds in the capital markets. The regulation is expected to pave the way for local administrations to issue bonds while still guaranteeing their ability to repay debts.
OJK to issue currency hedging regulation
The OJK plans to issue a regulation in the next few months on currency hedging to help investors protect their investments in the stock market against the possible decline of the Rupiah.
Compiled from the Jakarta Post
Aston Goad - Foreign Legal Consultant, Indonesia : email@example.com
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