Indonesia eases foreign ownership in retail and port sectors

13.08 Add Comment
Indonesia eases foreign ownership in retail and port sectors-

Indonésie a récemment assoupli les règles sur la propriété étrangère dans plusieurs secteurs, avec les derniers ajouts étant les services de vente au détail et les ports. La décision a été prise dans le cadre des efforts visant à ouvrir plus de possibilités pour son économie.

règlements d'investissement Président Joko Widodo signé révisé, qui précisent quels secteurs sont fermés partiellement ou totalement fermés aux investisseurs étrangers, connus sous le nom de la liste négative de l'investissement ». Les révisions ont été faites la semaine dernière, avec effet qui a lieu immédiatement, selon une copie téléchargée sur un site Web du gouvernement.

Le gouvernement a annoncé la révision des règles relatives à la propriété étrangère en Février, en disant qu'il a décidé d'assouplir les restrictions sur tout, de la nourriture et des boissons à l'agriculture, les transports et les salles de cinéma.

La ​​décision a été prise comme de bonnes nouvelles aux entreprises étrangères qui ont exprimé leur intérêt dans le secteur depuis un certain temps. Directeur Général de la Chambre de commerce américaine, par exemple, a été parmi ceux qui ont donné une réponse positive

"Ceci est la première fois depuis de nombreuses années ... que l'Indonésie a pris des mesures pour ouvrir l'investissement plutôt que de le fermer », a déclaré M. Lin Neumann tel que rapporté par Reuters.

Cependant, le nouveau règlement fixe un 49 pour cent la propriété étrangère cap sur les petites entreprises de commerce électronique, ce qui contredit la déclaration antérieure du gouvernement qu'il ouvrirait le secteur à 100 pour cent des investissements étrangers.

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Jakarta Applies New Odd-Even Traffic Restrictions

12.07 Add Comment
Jakarta Applies New Odd-Even Traffic Restrictions-

The Department of Transportation in the capital is set to apply a new odd-even license plate traffic rule which will come into effect on August 30. 

In an attempt to alleviate congestion in Jakarta, Dinas Perhubungan dan Transportasi or the Department of Transportation will exercise a new odd-even license plate system.

The new traffic rationing scheme is said to be part of a transition plan leading up to the application of Electronic Road Pricing (ERP).

The odd-even license plate rule has now entered its test phase, which will continue until August 26. The rule applies only on weekdays during morning and evening rush hours and in the city’s congestion zones – vehicles will still be allowed to operate as per usual in non-congestion areas.

The morning rush hour period is set from 7am-10am, while in the afternoons/evenings, it will run from 4.3pm-7.30pm. To comply with the new regulation, vehicles with license plates that end in odd numbers will be allowed to operate in congestion zones on odd dates, and vehicles with license plates that end in even number will only be allowed to operate in congestion zones on even dates.

Congestion zones include: Jl. Medan Merdeka Barat, Jl. MH Thamrin, Jl. Jenderal Sudirman, and Jl. Gatot Subroto.

The regulation will not apply for the president, vice president, diplomats with ‘RI’ license plates, fire departments, ambulances, and public transportation vehicles with yellow license plates.

In April, Governor Basuki Tjahaja Purnama dismissed the old 3-in-1 system which he believed extorted young children and babies, getting rid of the need for joki or people who were paid to act as an extra commuter so that drivers with fewer than three passengers could legally go through the congestion zones. Dissatisfied by the system, Governor ‘Ahok’ called to replace it with the odd-even license plate scheme.

License plate dealers are already seeing a huge increase in the demand for new plates for people who own more than one vehicle.

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Bombing attempt in Medan could be linked to ISIS

11.06 Add Comment
Bombing attempt in Medan could be linked to ISIS-

Over the weekend, a young man attempted to detonate an improvised explosive device during a mass ceremony at St. Joseph Church in Medan.

On Sunday, August 28, a solemn mass at St. Joseph Church in Medan turned into a crime scene after a young man tried to detonate a series of improvised explosive devices (IEDs) stored in his backpack. The homemade explosives did not go off, however, and the bombing attempt in Medan ultimately failed.

The ceremony began as an otherwise normal Catholic gathering in Medan, but when the church’s priest began his sermon, the young man rose from his seat and with knife in hand. The would-be bomber first tried to attack the priest. Church-goers then saw sparks coming from the kid’s backpack, which soon turned into a small fire.  

The congregation escaped the building, fearing that the backpack would indeed create a larger explosion. A few members stayed inside to help the priest deal with the IED, while others immediately called the police. Luckily, there was no loss of life as a result of the incident. The attacker himself suffered from some minor burns, and the priest received lacerations to his left hand.   

When the Indonesian tactical bomb squad and police force arrived, they secured the backpack and detained the youngster. Inside the bag, they found several dud IEDs as well as other sharp items that could have acted as shrapnel.

Police have only identified the young man to the press as an 18 years old male with initials IAH. After further investigation, police confirmed that they found a hand drawn ISIS symbol inside IAH’s wallet.

Inspired by Paris

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Image via Wikimedia

The local police commissioner Mardiaz Dwihananto told BBC Indonesia the attacker drew inspiration from the recent ISIS attack in Paris, which he saw on the internet. “Although he claims someone ordered him to do it, we need to wait for the investigation team for further detail,” Mardiaz concluded.

This event although unsuccessful nonetheless caught the eye of Tito Karnavian, the chief of Indonesia’s National Police. With a background in antiterrorism, Karnavian said, “Was this a one-man act, which means he visited radical websites, chatted with radicals, and planned his own actions with no outside support? Or is he part of an organization? That’s what we are currently investigating.”

If the bombing attempt was ordered by ISIS, this will be the second time the terrorist organization has tried to attack Indonesia in the past year. The first attack took place in January in Jakarta, causing many injuries, and claiming four lives. Sunday’s bombing attempt in Medan certainly has the same vibe as the previous attack.

The culprit acted in broad daylight and targeted a densely populated public place. The incident raises questions on how vulnerable the Indonesian public is to radical ideology like that of ISIS.  

Following the attack, the minister for political, legal, and security affairs told the press that the government is not the only body responsible for keeping an eye on activities like this, but it’s also the duty of the community. A combination of citizen vigilance, local police, and the government’s anti terrorism unit should help keep everyone safe, the ministry said.

To date, expats in Indonesia have been able to enjoy a culture of religious acceptance and tolerance. While Indonesia is home to the largest population of Muslims, it can also be called one of the most moderate countries in terms of religious fervor.

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Is Jakarta’s Great Sea Wall Just a Pipe Dream?

10.05 Add Comment
Is Jakarta’s Great Sea Wall Just a Pipe Dream?-

Lagged budget disbursement pushed back the construction of a giant sea wall in Jakarta, which was expected to be finished by April 2018. Two years after the project’s inception, reports indicate the initial work on the “Great Sea Wall” is only 4 percent complete.

Home to more than 10 million people and recognized as the economic, political and cultural centre of Indonesia, the sprawling metropolis of Jakarta is the largest city in Southeast Asia—and it’s sinking.

The capital of the Emerald of the Equator lies on a low flat basin 23 feet above sea level. 40 percent of that, however, particularly the northern areas, is below sea level. Given the continuous groundwater extraction and the pressure of skyscraper developments, it is no surprise that Jakarta is sinking at 7.5 to 15 centimetres per year.

Flooding in jakarta, jakarta sea wall neededFlooding in Jakarta can be attributed to the region’s recurring monsoon season, the lack of proper water management and the obvious overpopulation. The city’s flood problem results in as much as a 30 percent national economic loss each year, as employees are unable to report to work, goods are not distributed timely and trades practically come to a halt. In the bigger picture, industries suffer losses in the trillions of rupiah each year, routinely giving the country bad press among foreign investors.

The national government and economic experts have long struggled to come up with a resolution for the problem. Back in 2013, President Joko Widodo, who was then governor of Jakarta, proposed a six-step plan to solve the flooding dilemma. These steps included the relocation of people living on the riverbanks, repair of the canal, building of reservoirs and installation of pumps.

Later in 2014, Widodo met with city officials and ministers to endorse an ambitious plan that had long been on the drawing board: the construction of a garuda-shaped Great Sea Wall.

Part of the National Capital Integrated Coastal Development master plan, the two-step Great Sea Wall project would highlight the ongoing construction of a US$2 billion, 32-kilometre wall behind an existing wall that is slowly being eaten up by the sea. Estimated to be complete in 2018, this first phase would make way for new pumping stations and help raise the levels of the city’s riverbank dikes.

See: Is Sandiaga Uno Jakarta’s Next Governor

The plan also called for urban development and the rise of a “Waterfront City” replete with hotels, luxury housing and office towers atop the seawall complex to make it more attractive for private investors. The private sector would play an integral role in financing this US$40 billion mega-structure, which is supposed to include 17 artificial islands complete with toll roads, a seaport and a railway.

If the project ever came to reality, Jakarta Bay would become a water reservoir enclosed in the Giant Sea Wall and would eventually become a source for clean water for the entire city. Prior to that, the city would also need to build and implement water purification and treatment plans. In theory, this would stop the bay from being contaminated by rivers and canals.

Even though the project is way behind schedule, the people in charge are still optimistic. Head of Water Management Agency Teguh Hendrawan said his department will hire more workers and increase working hours to catch up with the schedule.

Governor Ahok has expressed doubts about the project.

“Flushing the mud will be very problematic,” Ahok said to an audience of hydrologists. He added that the master plan would have to also face the challenge of corruption in the country head-on. This would be tricky, as it has been recognized as one of Indonesia’s biggest-ever infrastructure projects.

Editing by Nadya Joy Ador and Leighton Cosseboom; featured image via geograph; post image via wikipedia; video via Al Jazeera English

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Tax Amnesty Has Indonesia Polarized

21.04 Add Comment
Tax Amnesty Has Indonesia Polarized-

So far, Indonesia has touted its tax amnesty programme as a success after pulling in more than US$7 billion in its first few months. However, public criticism is building up, and some believe the scheme could be more advantageous for the super rich than the middle-class.

In July, authorities opened the scheme with pageantry, asking locals to declare their wealth in exchange for penalties below normal tax rates.

President Jokowi needs more money to help the archipelago after two years in office, namely for an ambitious infrastructure push. Some analysts say his efforts to reverse the nation’s slowing economy have so far been ineffective.

With its tax amnesty programme, Indonesia hopes to collect tens of billions of dollars squirreled away overseas (namely in Singapore) and to get more folks to pay taxes in a country where only a little more than ten percent of locals are registered to do so.

A Wave of Interest

The first stage of the programme, when people settle penalties as low as two percent of declared assets, ended last week with good results after a wave of interest took the nation.

More than 350,000 people declared assets clocking in at Rp.3,620 trillion (US$278 billion), which raked in Rp.97.2 trillion (US$7.46 billion) in revenue for the government, according to data from the nation’s finance ministry.

Jokowi was glad to see “trust from the people and the business community towards the government” while analysts observed the strong start of the programme, which is set to run until March.

But the tax amnesty programme is generating anger by several activist groups. The public in recent weeks has been angry that Indonesia’s wealthiest tycoons have been quick to declare assets without needing to be accountable as to where said assets came from. Essentially, this means many people would rather see Indonesia’s wealthy elite exposed for wrongdoing, rather than have their potentially ill-gotten gains go towards improving the nation without legal consequences.  

Tommy Suharto, the multimillionaire son of former dictator Suharto, and James Riady, the head Lippo Group, recently signed up for tax amnesty.

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See: What Does Tax Amnesty Mean for Expats in Indonesia?

A Closer Look

Holding the wealthy up as heroes when all they are doing is paying their taxes is a mistake, said Firdaus Ilyas, an active member of NGO Indonesia Corruption Watch.

“The image being built up is that people who take part in the tax amnesty are heroes helping develop the nation,” he told AFP. “But we know if they take part in [the amnesty], it means they didn’t pay tax.”

Among the small number of Indonesians who have regularly paid their taxes, there is disappointment at the treatment being given to the super rich simply for paying up at a rate below normal.

Regular tax rates for individuals range from five percent to 30 percent depending on income while the corporate tax rate is 25 percent. In the first phase of the amnesty scheme, participants pay penalties of between two and four percent on declared assets.

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See: The Death of Tax Evasion?

“The tax amnesty is only good for the big people,” said Johni Yusuf, a businessmen in his mid-30s who runs a small shop selling household goods in Jakarta. “It’s unfair, I always pay my taxes.”

Activists have called the amnesty into the Constitutional Court while the anger spilled out onto the streets last week when thousands protested in Jakarta, with demonstrators saying the money probably came from corruption.

Ken Dwijugiasteadi, the government’s top tax official, refused to be drawn on whether he was concerned about where the money came from, saying the tax office’s job was just to collect the funds.

Despite the concerns, some analysts believe the positives outweigh the negatives.

Indonesia needs the money to solve a budget deficit, and also desperately wants to get more people into its tax system. Right now, only about 30 million people are registered taxpayers out of a population of 255 million.

“You have to look at the broader picture and consider whether at the end of this you’ve got more money taken out of the black economy and put into the real economy,” said Paul Rowland, a Jakarta-based independent political analyst.

Source: Channel NewsAsia; featured image via Wikimedia; post image via Matahari2012; post image by 401(K) 2012 

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Indonesia Announces New Rule on Property Ownership for International Couples

20.03 Add Comment
Indonesia Announces New Rule on Property Ownership for International Couples-

The Constitutional Court of Indonesia just announced new regulations on the rights for international couples related to prenuptial agreements and property ownership.

On October 27, the nation’s Constitutional Court agreed to allow international couples to make prenuptial agreements in the middle of the marriage process, or even after they are married. This means that local-foreign couples who did not have prenuptial agreements before they were wed will now have the chance to claim rights to their property and assets after the fact.

mixed-marriage-property-ownershipPerca Indonesia, an activist group for Indonesia’s international marriage community, says this comes as  good news for international couples in the archipelago who are often discriminated against. The community claims that it has long tried to address the issue of property ownership for international couples, and is glad that justice has finally been served.

Not only in Indonesia, but international couples all across the globe have also been facing similar challenges of staying in a certain country. In 2010, Eurostat conducted research in 30 countries on international marriages.

See: Indonesian Government Considering Dual Citizenships

The results suggested that one out of 12 marriages in Europe involved someone with foreign status. In Australia, almost one in three marriages in 2014 involved international couples; while the US Census Bureau of Statistics suggested in 2011 that at least 21 percent of the country’s population can be called an international couple.

In Indonesia, there have been more cases of dual citizenship, and stakeholders have been calling on the government to conduct a judicial review on the matter.

Nia K. Schumacher, a member of local international marriage group Aliansi Pelangi Antar Bangsa said in October that the rapid growth of mobility around the world will certainly give rise to mixed marriages in the near future.

Image credits: Indoindians, Indoindians

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Local Trans Women Redefine the Notion of Beauty in a ‘Secret Pageant’

19.02 Add Comment
Local Trans Women Redefine the Notion of Beauty in a ‘Secret Pageant’-

LGBT community and activists continue to challenge status quo by secretly organizing a national beauty pageant in Jakarta, while successfully staying away from local media attention and attacks from Islamic hard-liners.

November 11 was an unforgettable day for Qienabh Tappii. The 28-year-old could not hide her excitement when she bagged the crown for this year’s Miss Waria Indonesia, a beauty contest that seeks to promote LGBT rights in Indonesia.  

“I’m very happy, I feel like I want to cry,” the new queen said while standing next to a 2-metre-tall red-and-gold trophy and carrying a smaller one on one hand.

Like most beauty pageants, Miss Waria Indonesia also involved contestants strutting down the runway in evening gowns and prizes for winners at the end of the line. But what is different about this contest is its ability to empower the transgender community across the archipelago.

Miss Waria Indonesia was joined by a select group of transgender women representing different regions across Indonesia. That night, Tappii triumphed over 30 other contestants, and she is set to represent the country in an international pageant that will take place next year in Thailand.

Despite her victory, Tappii knew that her work just got started and that she must maintain her focus on the mission. “Tonight is the beginning of my struggle for my rights as a waria. I want waria to be accepted, appreciated and understood in our society, and to be equal with other Indonesians. I will work really hard to achieve it.”

‘Waria’ is a local term that is used to refer to a transgender or those who find that their sense of gender is different from their sex. In Indonesia, the rights of transgenders and the LGBT community have been a subject to ongoing debates among authorities, academics, religious parties and the public in general.

Throughout the year, activists have been fighting Indonesian conservatives who refuse to acknowledge LGBT people’s rights because they believe that accepting them would be considered as defying the nation’s norms and values.

See: LGBT Rights Questioned in Indonesian Courtroom

For that reason, Miss Waria Indonesia was kept extremely under the radar. To avoid any risk of discovery, violence and especially attacks from Islamic hard-liners, the media were notified only a few hours in advance of the location of the pageant. Guests were also asked not to post anything on social media throughout the contest.

“If the public knew in advance that there will be such an event, those who use religion as their mask could attack us. That’s why we kept it secret until the last minute,” pageant organizer Nancy Iskandar revealed.

Regardless, the event managed to attract around 200 people who came to show their support for the transgender community. One audience member even came all the way from South Sulawesi to ‘show his solidarity’. “We Indonesian waria have the same feelings, what they feel in Jakarta we also feel it in Makassar,” Fitri Pabentengi said.

News of Miss Waria Indonesia 2016 only broke out recently, when a series of international media reported the event. Miss Waria Indonesia is organized by Putri Waria Indonesia Foundation and Indonesian Waria Communication Forum.

Featured Image via Veronica Jauriqui; Video via Redfox Fox

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